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NEPAD 5% Agenda: Mobilizing domestic pension and SWF capital for PIDA and other African infrastructure projects
Concept Note for the launch of the 5% campaign, 18 September 2017 in New York
At the 18th ordinary African Union Summit in Addis Ababa, Ethiopia in January 2012, the African Heads of State and Government adopted PIDA, the Programme for Infrastructure Development in Africa.
The PIDA Priority Action Plan (PAP) comprises 51 cross-border infrastructure programmes of more than 400 actionable projects in four sectors, energy, transport, trans-boundary water and ICT to be implemented until 2020.
Global consensus on the imperative of addressing the large finance deficit for PIDA-PAP implementation and infrastructure development in general in Africa is well documented. This is clear in the variety of academic literature on the topic, as well as the many high-level policy forums at the United Nations, World Bank, International Monetary Fund, the Organization for Economic Cooperation and Development (OECD), the G-20 initiative on “Compacts with Africa”, the African Union and many others.
As stressed by the Dakar Financing Summit (DFS) in 2014, an increased form of collaborative public-private initiatives is necessary to mobilize risk capital that accelerates PIDA project implementation. Accordingly, the NEPAD Agency was mandated by the DFS to increase and coordinate the private sector participation in PIDA projects through the establishment of the PIDA Continental Business Network (CBN).
The CBN is a NEPAD and AU initiative that enables private sector members to communicate recommendations to high-level African policy makers on how to improve the investment climate for infrastructure. Furthermore, PIDA projects are marketed to the CBN for increased private sector involvement in project preparation and implementation. This process aims to promote PIDA projects that are bankable to the private sector and thus, qualify for private finance.
The German Government via GIZ has supported NEPAD in the launch of the CBN and the marketing of PIDA projects. Germany as the current Chair of G-20 is also spearheading the initiative on “Compacts with Africa” to increase investment in African infrastructure. One of the key recommendations of this initiative is to unlock institutional investment from pension and sovereign wealth funds for infrastructure development in Africa.
With global regulatory regimes shifting and diminishing the ability of traditional capital to be invested in assets in Africa, institutional investors in the form of pension and sovereign wealth funds (SWF), have emerged as a potentially ideal financing source to close the estimated USD 68 billion infrastructure finance gap in Africa.
For pension and SWFs to be able to invest in large-scale infrastructure projects in Africa, a variety of issues need to be addressed to strategically and intentionally facilitate long-term allocations. Chief amongst these matters is the need to reform national and regional regulatory frameworks that guide institutional investment in Africa. Likewise, new capital market products need to be developed that can effectively de-risk credit and hence, allow these African asset owners to allocate finance to African infrastructure as an investable asset class to their portfolio.
Building on the guidance and recommendations of the CBN, NEPAD will initiate a campaign to increase the allocations of African asset owners to African infrastructure from its low base of approximately 1.5% of their assets under management (AUM) to an impactful 5% of AUM.
Objective of the 5% Agenda
The overall objective of this agenda is to develop a concrete and feasible roadmap to increase allocations of African institutional investors to African infrastructure to the declared 5% mark. This roadmap after engagement with key stakeholders, will outline very concrete steps and expected outcomes to notably increase institutional investment in Africa’s infrastructure, with a focus on regional/PIDA infrastructure projects as a key mandate of the NEPAD Agency.
The NEPAD Agency will steer a dialogue that convenes key stakeholders responsible for investment allocation decisions (e.g. investment banks, pension funds, SWFs, credit rating agencies, financial policy experts and regulators, policy makers, project owners etc.). These stakeholders will provide input to the above roadmap and shall be convinced to support the implementation of this roadmap.
The roadmap will be the backbone for the official launch of the 5% campaign in New York in September 2017. It is foreseen that the roadmap and the campaign will have the following impact:
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Unlocking notable and measurable pools of needed capital to implement regional and domestic infrastructure projects on the continent.
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Broadening and deepening the currently very shallow African capital markets, whilst at the same time contributing significantly to regional integration and job creation.
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Promoting the development of innovative capital market products that are specific to the continent’s challenges and potential in regards to infrastructure development.
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Raising the investment interest of other institutional and non-institutional financiers that so far have been hesitant to include African infrastructure projects as an asset to their investment portfolio based on specific, concrete next steps and project suggestions.
Download: pdf AU-NEPAD Continental Business Network 5% Agenda Report, 2017 (1009 KB)
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Starting, today in Accra: ACBF’s 26th Board of Governors Meeting on the theme Enhancing access to and absorption of development resources in Africa.
The Atlantic Council launches two issue briefs on Thursday in Washington. They are Escaping China’s shadow: finding America’s competitive edge in Africa (by Aubrey Hruby) and Capturing the African consumer market: truths, trends, and strategies for the road ahead (by Aleksandra Gadzala)
President Jacob Zuma officially launches the the InvestSA One Stop Shop – Western Cape on Friday in Cape Town. Minister of Trade and industry, Dr Rob Davies said that the value-proposition for the Provincial One Stop Shops is the co-ordination and incorporation of the special economic zones, provincial investment agencies, local authorities and the relevant government departments involved in regulatory, registration, permits and licensing matters.
Multimedia: Prudence Sebahizi, head of the AU’s CFTA Unit, summarizes the 3rd Meeting of the CFTA Technical Working Groups which ended on Friday in Durban.
ACBF calls for establishment of Africa Central Bank, Africa Monetary Fund
Prof Emmanuel Nnadozie, the ACBF Executive Secretary, made the suggestion in Lagos at the final plenary session of the 2017 Annual General Conference of Nigerian Bar Association. He said that these two institutions were need in Africa to foster economic integration. “Everybody has a role to play in the regional integration of Africa. We need to ensure that pan African credit institutions are adequately involved in the integration process.” Nnadozie stressed the need to address political issues confronting trans-boundary integration in Africa as well as means of broadening intra-regional infrastructure. “There is no question that regional integration is critical to Africa’s development. A lot has been achieved since the idea of regional integration was introduced to the continent though there is a lot of room for improvement. Of Africa’s 55 countries, only five belong to five regional economic committees, while four belong to three of such. Regional integration in Africa has tended to follow a top down approach. Most African countries are intergovernmental in nature making it difficult to make decisions. It is important to address these issues, we need transformational leadership, Africannness, allow a solid financial capacity and foster a regional citizen development process.”
Building resilience to global risks: challenges for African central banks (BIS)
The policy response of many African commodity exporting economies to the slump in commodity prices after mid-2014 has been markedly different from that of commodity exporters elsewhere. First, few African countries allowed their currency to depreciate as much as other EMEs, for instance in Latin America. Instead they resorted mainly to administrative controls, despite the high economic costs associated with such measures. Second, many African economies kept their policy rates very low despite considerable exchange rate pressure and rising inflation. Again, this differs from the response of many Latin American commodity exporters, who raised policy rates in order to keep inflation expectations anchored. Finally, many African economies have been less successful than other EMEs in shielding their banks from the fallout of lower commodity prices, sharp depreciation and feeble growth. [The authors: Benedicte Vibe Christensen, Christian Upper] [SARB’s François Groepe: The changing role of the central bank in economic policy]
Mauritius International Financial Centre: update (GoM)
The elaboration of a Blueprint for the Mauritius International Financial Centre was the focus of a one-day consultative meeting at the Hilton Hotel in Flic en Flac. The Minister of Financial Services, Good Governance and Institutional Reforms, Mr Sudhir Sesungkur, as well as representatives from local authorities and agencies were also present. The Executive Director at Harvard Law School, Mr James Shipton, will be responsible for the elaboration of the Blueprint. He will be assisted by a team from the Ministry of Financial Services, Good Governance and Institutional Reforms and the Financial Services Commission.
Trade and Development Bank nets $101m in profits (COMESA)
The Trade and Development Bank has recorded a net profit of $101m, a 7% increase over the $94.7m achieved in 2015. Operational and financial performance has also continued its upward trajectory recording. Chairperson of the Trade and Development Bank Board of Governors Hon. Claver Gatete disclosed this during the opening Session of the 33rd Annual General Meeting of the Bank’s Board of Governors in Mahe, Seychelles on 31st August 2017. Hon. Gatete informed the meeting that the bank has embarked on rebranding to reposition itself and place it on a firm trajectory of renewal.
AGOA: Amalgamated Trade Union of Swaziland statement in support of Swaziland’s eligibility status (IndustriALL Global Union)
The decision to call for readmission has not been taken lightly, but after extensive consultations and assessment by TUCOSWA and participation in the ILO process to review whether Swaziland had met the standards for internationally recognised workers’ rights including the rights to organise. Concern was also raised over the use of security forces stifling of peaceful demonstrations and arbitrary arrests. s trade unions, we support Swaziland’s readmission to AGOA eligibility status because this will not only save jobs but create thousands more in the textile and apparel industry, and across the value chain. In our fight for decent work, these jobs are an important lifeline for young women who constitute over 90% of the workers in this industry.
‘Zimbabwe heading towards de-dollarisation’ (NewsDay)
The central bank’s decision to more than double the size of its bond-note programme to $500m confirms the country is headed towards de jure de-dollarisation, which threatens to accelerate inflation, an international research body has said. Dollarisation has two forms, namely, official/de jure and unofficial/de facto. BMI Research found that an increase in bond notes was actually de-dollarising the economy. BMI Research warned last week that increasing money supply would contribute to an accelerated growth of inflation from 1,4% by year-end to 8,5% in 2018 — making the steepest growth since 2009.
Roman Grynberg: Namibia’s industrialisation policy is not succeeding – why? (The Namibian)
While GDP has grown and so too has the real value of manufacturing, they have in no way come to dominate our economy as the government would like. In terms of exports, Namibia exports virtually the same range of goods as just after independence. The most important new development has been some cut diamond exports and canned fish. But that, like so many other manufacturing activities, has only been possible because of considerable subsidies from government. With the exception of the rapid growth of tourism, there has been almost no real diversification, and industry is no more important now than then. So, why has Namibia not industrialised?
Botswana: Efforts to increase trade along Trans-Kalahari Corridor intensify (Mmegi)
During a University of Botswana and Trans-Kalahari Corridor stakeholder engagement workshop in Gaborone last week, the stakeholders implored governments of the three states to make efforts in linking Africa to the rest of the world. Marketing and business development specialist at the TKC secretariat, Zunaid Pochee said since inception of the TKC, they have so far made efforts to harmonise legislations and procedures to make it easier to travel in the three countries. He said the signing of the One-Stop-Border bill by Botswana and Namibia has enabled the countries to harmonise customs procedures. However, Pochee decried the fact that border posts do not open throughout the day, stating that they are working to change that to make possible for borders to open for 24 hours. According to the specialist, they are seeking to increase movement of goods along the corridor to have 22 trucks moving per hour, which translates to about 196,416 per annum. [Rwanda: How One Stop Border Posts have helped reduce truck transit time]
Mozambique: Moatize-Macuse project to begin in late 2018 – govt (Club of Mozambique)
The head of the Ministry’s legal department, Luis Chauque, said the project includes a new deep water port at Macuse, and a railway from the Moatize coal basin to Macuse, a distance of around 500 kilometres. The total cost of the project is currently put at $2.7bn, $810m for the port, and the rest for the railway. Chauque said the new railway and port will handle 25 million tonnes of cargo a year, which should gradually rise until it reaches 100 million tonnes a year. The proposed railway will be much shorter than the existing lines from Moatize to the ports of Beira and Nacala-a-Velha. Macuse port will be able to take ships of up to 80,000 tonnes – Beira, a port which must be regularly dredged, cannot match this capacity, although Nacala-a-Velha can take ships of any size.
Tanzania: Dry port master plan to ease transit cargo handling (Daily News)
As competition among ports in Eastern and Southern Africa stiffens, the Tanzania Ports Authority has decided to come up with a Master Plan for establishment of dry ports in strategic regions, to ease clearance and shipment of transit cargo to neighbouring countries. TPA Director General, Engineer Deusdedit Kakoko said Arusha dry port would significantly attract customers from the neighbouring countries of Burundi, Rwanda and Uganda, including the northern regions of Kilimanjaro, Arusha and Manyara to use Tanga Port and Dar es Salaam harbour. “Our competitors have built a dry port at Taveta area in Kenya. This means that containerised cargo that enters through Mombasa Port with destinations in Uganda, Rwanda and Burundi is now transported up to Taveta as a strategy to attract customers from those countries,” he said.
Tanzania: Why cabinet ‘hot seat’ in JPM’s govt is still vacant (IPPMedia)
The high-profile portfolio of Minister for Energy and Minerals remains unfilled more than three months after the previous incumbent, Prof Sospeter Muhongo, was unceremoniously removed over the mineral sand export row.
South Africa: Sasol banking on big projects in Africa, US (IOL)
The group said in its annual report that the $1.4bn (R18.28bn) development in Mozambique was progressing well. Joint chief executives Stephen Cornell and Bongani Nqwababa said development in the Production Sharing Agreement licence area in Mozambique was on schedule and within the approved budget. “By year-end, six wells had been drilled. We expect to complete the 13-well drilling programme by the end of the 2018 calendar year and remain firmly committed to our growth plans, despite the financial challenges the country faces. We will continue to partner with the Mozambican government and other institutions on projects that will help stimulate growth,” the joint chief executives said. Sasol released its year-end results last week, during which the group also outlined some of its projects in the year ahead.
India: GST woes are adding to India’s export slump (The Wire)
Prime Minister Narendra Modi, during the launch of the goods and services tax (GST) regime, described it as a “good and simple tax” that would end harassment of traders and small businesses and integrate India into one market with one tax rate. However, it has not turned out that way at all, at least as far as exporters are concerned. Indian exporters are already feeling pressure on their margins because of rupee which has appreciated by nearly 7% this year. GST issues could add to their woes. Exporters, especially small ones, are having a tough time complying with the new indirect tax regime. Not only that, they also fear a loss of competitiveness due to higher working capital requirements and tedious documentation work. Latest export data from July, which paints a lacklustre picture, has only deepened this fear.
Today’s Quick Links: Tanzania: Plans afoot to resuscitate ailing milk sector, increase production Madagascar to focus on land governance in its Agricultural Investment Plan South Africa: Competition policy on SOEs must be clear - Commissioner Bob Diamond’s Nigeria plan takes shape as Fairfax completes deal WHO Regional Committee for Africa: documentation from 67th session, Zimbabwe |
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Press statement in support of Swaziland’s eligibility status for AGOA
The Amalgamated Trade Union of Swaziland (ATUSWA) representing 9 000 workers in the textile and apparel industry, the Trade Union Congress of Swaziland (TUCOSWA) representing 40 000 workers and 16 affiliated unions, and the IndustriALL Global Union representing 50 million workers in 140 countries met in Manzini, Swaziland on the 29th of August 2017 to discuss the status of the United States Trade Act – the African Growth and Opportunity Act (AGOA) – eligibility for Swaziland.
With ATUSWA and TUCOSWA having been registered, and some sections of the Industrial Relations Act, the Suppression of Terrorism Act, and the Public Order Act amended, there is still a lot to be done to improve rights issues. Some progress has been made towards addressing the concerns on workers’ rights including freedoms of assembly, expression, and association, that led to its suspension in January 2015.
We call upon the Government of Swaziland to adhere to international labour standards, respect human rights, democracy and the rule of law. Social dialogue should include engagement and active participation involving all social partners and key stakeholders in the formulation and implementation of AGOA utilization strategies in permanent and structured national and regional multi-stakeholder platforms. We also call upon AGOA beneficiaries to be small scale indigenous Swazi companies rather than multi-national companies.
The decision to call for readmission has not been taken lightly, but after extensive consultations and assessment by TUCOSWA and participation in the ILO process to review whether Swaziland had met the standards for internationally recognised workers’ rights including the rights to organise. Concern was also raised over the use of security forces stifling of peaceful demonstrations and arbitrary arrests.
As trade unions, we support Swaziland’s readmission to AGOA eligibility status because this will not only save jobs but create thousands more in the textile and apparel industry, and across the value chain. In our fight for decent work, these jobs are an important lifeline for young women who constitute over 90% of the workers in this industry. By calling for the reinstatement, we are helping the Government of Swaziland to protect and create jobs and it is imperative that the government adopt investor friendly and sustainable industrial policies which contribute to job creation. The manufacturing sector is strategically placed to play a role in job creation and government policies must encourage foreign direct investment.
The Swazi position for readmission was emphasized in a trade union meeting in the AGOA forum in Lome, Togo from the 08th to the 10th of August 2017, that discussed AGOA issues.
Amandla!
Related: 2017 Annual and out-of-cycle AGOA eligibility reviews: Transcripts from the Public Hearings
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AfDB wants greater focus on implementation, as African Green Revolution Forum begins in Abidjan
“The ground is already ploughed. Together, let us now sow the seeds of hope and reap a harvest so plentiful in the years ahead” – Akinwumi Adesina, AfDB President
Ahead of the 2017 African Green Revolution Forum (AGRF), the President of the African Development Bank (AfDB), Akinwumi Adesina, wants greater attention paid to the implementation of concrete plans for achieving the green revolution in Africa.
The seventh African Green Revolution Forum, taking place in Abidjan, Côte d’Ivoire, from September 4-8, 2017, will focus on “Accelerating Africa’s Path to Prosperity: Growing Economies and Jobs through Agriculture”.
The Forum is hosted by the Alliance for a Green Revolution in Africa (AGRA), an African-led institution focused on putting farmers at the centre of the continent’s growing economies. AGRA is built on an alliance of partners that care about, commit to and invest in Africa’s agricultural transformation.
AGRF partners include the African Development Bank, the African Union, the African Fertilizer and Agribusiness Partnership (AFAP), AGRA, the Food and Agricultural Organization of the United Nations (FAO), the International Fund for Agricultural Development (IFAD), Mastercard Foundation, the New Partnership for Africa's Development (NEPAD), OCP Africa Group, The Rockefeller Foundation, the Southern African Confederation of Agricultural Unions (SACAU), Syngenta, and YARA International.
The African Development Bank is proud to be a partner in the Forum in Abidjan.
“As we all converge on Abidjan for this year’s African Green Revolution Forum, our focus should be on implementation,” Akinwumi Adesina, President of the AfDB, said in a video statement.
Adesina noted that this year’s Forum comes as some African nations are witnessing drought and heightened food insecurity.
He stressed that the event presents an opportunity to push efforts to make Africa self-sufficient in food production and transform agriculture into a wealth-creating sector.
“Agriculture is booming in Africa and holds the greatest opportunity to boost African economies, build rural economies, lift millions out of poverty, and create jobs,” he said.
AfDB is accelerating this development through its Feed Africa Strategy with planned investment of US$24 billion over the next 10 years.
The Bank invites partners, governments, private sector, and development institutions to work together to make this happen.
This year’s African Green Revolution Forum, considered to be the most important meeting on African agriculture, will be held under the patronage of the President of Côte d’Ivoire, Alassane Ouattara.
The Forum will bring experts and other stakeholders together to ensure that the importance of agriculture to African economies is not overlooked. Agriculture represents more than 60% of employment − making it essential to delivering on economic development visions for the continent and achieving the Sustainable Development Goals.
The sixth African Green Revolution Forum (AGRF) was held in Nairobi, Kenya, in September 2016 and attracted more than 1,500 delegates from 40 countries.
At AGRF 2016, many of Africa’s steadfast champions of agriculture pledged more than US $30 billion in investments to increase production, income and employment for smallholder farmers and local African agriculture businesses over the next 10 years.
AfDB is leading a campaign to unlock the continent’s food and agriculture market, which is projected to hit US $1 trillion by 2030.
In the words of the AfDB President: “We must hurry. Africa’s time to become the global powerhouse for food and agriculture is now. We are already late.”
For more information on AGRF 2017, visit the official website: http://www.agrf.org.
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Building resilience to global risks: Challenges for African Central Banks
African economies tend to be less integrated into the world economy than those in other emerging regions. But this does not mean that they are immune to shocks from outside the continent.
In recent years, global developments such as the rise in global risk aversion during the Great Financial Crisis (GFC), the search for yield in its aftermath, and the slump in commodity prices had significant repercussions on economies in Africa. At the same time, economic activity in Africa can also affect other countries, not least through migration flows.
Over the past year, the global environment has been evolving rapidly. World growth has gathered momentum. Monetary policy in the largest advanced economies has ceased to be the major driver of financial markets. Instead, a series of political events, most notably the United Kingdom’s Brexit referendum and the US presidential election, has brought political risks to the fore. Political uncertainty has risen sharply, with some of key elements of the global economic order put into question.
This note examines the fallout of the evolving global economic and political risks on Africa, with a particular emphasis on the policy challenges for central banks.
Policy challenges for African economies
Many African economies are seeing relatively weak, albeit recovering, growth and high and rising inflation. Following a decade of strong growth in the majority of African economies, growth plunged in commodity-exporting countries in the wake of the sharp drop in oil and metals prices after mid-2014. Commodity exporters are still reeling from this collapse, even if prices have recovered somewhat since mid-2016. By contrast, non-resource-intensive countries, including Côte d’Ivoire, Kenya, Rwanda, Senegal and Tanzania, continued to enjoy strong growth. Inflation picked up across the board, in part owing to the impact of exchange depreciation and food price increases linked to the severe drought in Eastern and Southern Africa.
Strained fiscal positions and limited international reserves have reduced policy space in many economies. During the boom in the past decade, several countries raised public expenditures, not least to finance infrastructure investment. Then, falling commodity export revenues and depreciating currencies pushed up external debt. Public external debt increased by an average of 10% of GDP in sub-Saharan Africa during 2014-16 to an average of 56 percent, and by 7 percentage points to 68 percent in North Africa. Private sector debt also increased in several countries. A number of countries nearly depleted their international reserves as they supported the currency. As a result, the oil exporters’ reserves coverage ratio declined from more than 12 to less than 10 months of imports of goods and services. In countries belonging to the Economic and Monetary Community of Central African States (CEMAC) it fell from over four to less than two months during 2016. In a few countries, e.g. Angola, Guinea, and Liberia, banks lost correspondent banking relations abroad, weakening trade financing.
Download this paper on the BIS website.
The views expressed in the paper are those with the authors and do not necessarily reflect those of the Bank for International Settlements.
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Sasol banking on big projects in Africa, US
Sasol, the international integrated chemicals and energy company, has several near-complete projects in the pipeline that the group is banking on for its future performance.
The group said in its annual report last week that the $1.4 billion (R18.28 billion) development in Mozambique was progressing well.
Joint chief executives Stephen Cornell and Bongani Nqwababa said development in the Production Sharing Agreement (PSA) licence area in Mozambique was on schedule and within the approved budget.
“By year-end, six wells had been drilled. We expect to complete the 13-well drilling programme by the end of the 2018 calendar year and remain firmly committed to our growth plans, despite the financial challenges the country faces. We will continue to partner with the Mozambican government and other institutions on projects that will help stimulate growth,” the joint chief executives said.
Sasol released its year-end results last week, during which the group also outlined some of its projects in the year ahead.
Sasol is also developing the Lake Charles Chemicals Project (LCCP) in the US, where it spent $7.5 billion (R98.53bn) capital expenditure of the approved $11bn budget. Lake Charles was 74 percent complete.
The group said in addition to the large capital projects in the US and Mozambique, it had delivered on several other developments in the year.
“Our high-density polyethylene joint venture with Ineos on the Gulf Coast of the US is essentially complete and is on track for start-up during quarter four of the 2017 calendar year. The complex will produce 470 kilotons annually of high-value, bimodal high-density polyethylene.”
Sasol is also busy developing some projects in South Africa, despite the economy being affected by a firmer rand and low commodity prices, as mentioned in the results.
“In Sasolburg, the second phase of our Fischer-Tropsch wax expansion project achieved beneficial operation in March 2017, allowing us to double our South African production of hard wax. This facility continues to ramp-up and produced 92 kilotons of hard wax in 2017.
“In November 2016, Loopline 2 on the Mozambique-to-Secunda pipeline reached beneficial operation. The project was delivered ahead of schedule and at least 25 percent below budget,” the group said.
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Zambia ends a two-year trade deficit with a surplus in July (Central Statistical Office)
In July 2017, Zambia recorded a trade surplus valued at K410.6 million from a trade deficit of K335.7 million recorded in June 2017. This represents a 222.3% increase in the trade balance. Extract (pdf): Export market shares by selected regional groupings, major trading partners, July and June 2017 (pp13-14): Switzerland was the largest market for Zambia’s total exports in the month of July 2017, accounting for 50.2%. Asia was the second largest market for Zambia’s total exports, accounting for 21.0% in July 2017. Within Asia, China was the dominant export market, accounting for 56.4%. Other notable markets in Asia were Hong Kong, Singapore, United Arab Emirates and India.
The SADC exclusive grouping was the third largest market for Zambia’s total exports accounting for 12.5% in July 2017. Within this grouping, South Africa was the dominant market with 81.1%. Other notable markets in this grouping were Tanzania and Botswana. The dual SADC and COMESA was the fourth largest market for Zambia’s total exports accounting for 11.0% in July 2017. Within this group, Congo DR was the dominant market with 53.1%. Other notable markets were Swaziland, Zimbabwe and Malawi.
The European Union grouping was the fifth largest market for Zambia’s total exports accounting for 2.2% in July 2017. Within this grouping, The United Kingdom was the dominant market with 56.4%. Other notable markets in this grouping were Luxembourg and Belgium. The COMESA exclusive grouping was the sixth largest market for Zambia’s total exports accounting for 1.4% in July 2017. Within this group, Kenya was the dominant market with 44.3%. Other notable markets were Rwanda and Burundi. The rest of the world accounted for the remaining 1.7% in July 2017.
South Africa: July trade balance surplus of R8.99bn (SARS)
The South African Revenue Service has released trade statistics for July 2017 recording a trade balance surplus of R8.99bn. These statistics include trade data with Botswana, Lesotho, Namibia and Swaziland. The year-to-date trade balance surplus (1 January to 31 July) of R36.63bn is an improvement on the deficit for the comparable period in 2016 of R4.70bn. Exports for the year-to-date grew by 4.4% whilst imports for the same period declined by 2.2%.
Namibia: Decline in investment offset by narrowing current account deficit (BMI Research)
Namibia’s current account deficit will narrow substantially through to 2020. The trade deficit will shrink significantly as the completion of the Husab uranium mine and several construction projects will simultaneously boost mineral exports and decrease demand for imports linked to construction. At the same time, SACU receipts will broadly hold up, ensuring that secondary income surpluses remain steady. We forecast that the current account deficit will narrow from 12.1% of GDP in 2016 to 1.3% of GDP by 2020. As such, while Namibia’s financial account surpluses will begin to narrow, as major infrastructure projects finish and uncertainty over the impact of proposed black economic empowerment legislation tempers foreign firm’s willingness to invest in the mining sector, we see little risk to external account stability. Indeed, we expect financial account inflows to continue to comfortably fund the current account deficit, allowing the country to slowly build its foreign reserve stockpile.
Uganda: Export transitions, productivity, and the supply chain (IGC)
This project assessed the consequences of Uganda’s trade policy in terms of the impact on firm exports, productivity, and most interestingly, the wider supply chain. I also examine how this has important lessons for the ‘Buy Uganda, Build Uganda’ policy. I observed that Ugandan export and domestic trade performance is impressive and has been driven by the Government of Uganda policy. In addition, Ugandan exporters have driven output and productivity growth directly and indirectly through their supply chain. The key to the success of BUBU is to deepen domestic supply chains in order to increase export competitiveness. I recommend three policy interventions as part of the BUBU policy: [The author: John Spray]
South Africa: 11th Annual Competition Law, Economics and Policy Conference
(i) Ebrahim Patel wants competition watchdogs to shape a more inclusive economy for SA (Business Day). Economic Development Minister Ebrahim Patel has stepped up his efforts to use competition policy to address concentration and lack of transformation in SA’s economy, appointing an advisory panel to draft legislative changes that would give the competition authorities the tools to look at these issues proactively. Patel said on Thursday that SA faced growing challenges with economic concentration and social exclusion, and it was time to come up with practical and workable measures to address the high levels of concentration in the economy. There was a political constituency for this. It was better to do this using the trusted institutions of the competition authorities than by regulating sectors irrespective of the economic consequences, he said.
(ii) Address by Deputy President Cyril Ramaphosa. Market dominance in the South African context, therefore, refers not only to specific sectors in which significant market share has been unfairly captured and retained by a few companies. It refers also to the concentration of ownership and control in the hands of white South Africans, specifically white men. Black South Africans are for the most part excluded from exercising control over the most important economic levers. We must therefore measure the effectiveness of our competition policy by the extent to which it contributes to undoing the racial and gender dimensions of economic concentration.
Catherine Grant Makokera: Regional trade needs to be a top priority for African leaders (Business Day)
For years, trade was at the heart of the economic agenda of the SADC. It now seems to have fallen by the wayside. It could be argued that this reflects the fact that much of the action in setting up a free trade area took place about 10 years ago and there is a framework in place to govern the movement of goods under the SADC trade protocol. On paper, this is so, but much remains to be done to achieve higher levels of intraregional trade and ensure an environment that encourages firms to maximise opportunities. The industrialisation agenda, if it could reach its full potential, would no doubt help to bring this about.
EAC pre-budget conference for the financial year 2018/19 (EAC)
Amb Mfumukeko urged the participants to appreciate the role of the Organs and Institutions of the Community, as well as the Partner States in moving the integration process forward as they discuss the priority areas, strategic interventions and activities to be implemented over the financial year 2018/19. “We therefore require priority areas and targets that can bring the EAC integration agenda to have impact on the lives of the citizens of East Africa, the actual owners of the integration process.” The following are priority areas for financial year 2018/19:
EAC member states roll out single electronic passport (Business Daily)
Kenya is Friday morning expected to begin issuance of single electronic EAC passports with the release in Nairobi of the first batch of the new generation documents. More than 1,800 e-passport applications are expected to be printed on Friday after acting Interior and Co-ordination of National Government secretary Fred Matiangi officially launched it. ”Today, I can attest to you that Kenya has fully complied with Standards and Guidelines set by International Civil Aviation Organisations and EAC Chiefs of Immigration on travel document design, processing and issuance,” said Dr Matiangi. [Upcoming Kiswahili conference big boost to EAC integration]
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Deputy President speaks out against anti-competitive behavior
Deputy President Cyril Ramaphosa on Friday spoke out against anti-competitive behaviour, saying it prevents economies from realising their potential.
“Anti-competitive behaviour prevents economies from ever realising their potential. Competition policy in South Africa cannot be limited merely to the promotion of market efficiency. It must be an instrument to effect fundamental economic and social change,” said the Deputy President.
Speaking at the 11th Annual Competition Law, Economics and Policy Conference at the Gordon Institute of Business Science, Deputy President Ramaphosa said competition policy has a pivotal role to play in redressing the injustices of the past.
He said the Competition Act’s purpose is to provide all South Africans equal opportunity to participate fairly in the national economy and to promote employment and advance the social and economic welfare of South Africans.
“In short, the purpose of the Competition Act is to facilitate economic transformation that is radical, inclusive and sustainable,” he said, adding that the country inherited a racially skewed economy that had a few dominant players.
“Market dominance in the South African context, therefore, refers not only to specific sectors in which significant market share has been unfairly captured and retained by a few companies.
“It refers also to the concentration of ownership and control in the hands of white South Africans, specifically white men.”
For the most part black South African have been excluded from exercising control over the most important economic levers.
“We must therefore measure the effectiveness of our competition policy by the extent to which it contributes to undoing the racial and gender dimensions of economic concentration. Our competition policies should concern themselves not only with the conduct of companies, but also the structure of the market,” said the Deputy President.
Address by Deputy President Cyril Ramaphosa at the 11th Annual Competition Law, Economics and Policy Conference
For the last few days, some of the best minds from our continent and across the globe have been here deliberating on the future of competition policy.
The discussions at this conference are of great significance to the development of our economy and the transformation of our society.
Even though the issues with which you have been grappling are often unfamiliar to those outside of the field, they nevertheless have a profound impact on the lives of ordinary people, on the poor and the vulnerable.
In a country like South Africa, the attitude, conduct and actions of corporate citizens can be decisive in lifting the majority of our people out of poverty.
They can reduce inequality or deepen it.
They can allow new enterprises to flourish and expand employment or they can be a barrier to development and innovation.
They can strengthen the social fabric, or they can erode it.
When organised cabals steal from public resources and unsuspecting consumers, they break trust, undermine social cohesion and destroy lives.
When corporate greed gives rise to price fixing, market division and collusive tendering, governments and citizens alike become poorer.
This is not only unfair.
It is also unsustainable.
It results in a disproportionate share of economic product accruing to a narrow group of companies and individuals.
It reduces the economic contribution of many people whose talents, energies and resources would otherwise have been gainfully employed for the greater social good.
Anti-competitive behaviour prevents economies from ever realising their potential.
Competition policy in South Africa cannot be limited merely to the promotion of market efficiency.
It must be an instrument to effect fundamental economic and social change.
From the advent of democracy, we have argued that competition policy has a pivotal role to play in redressing the injustices of the past.
It was to underline this imperative that we declared in the Preamble to the Competition Act that:
“…apartheid and other discriminatory laws and practices of the past resulted in excessive concentrations of ownership and control within the national economy, inadequate restraints against anticompetitive trade practices, and unjust restrictions on full and free participation in the economy by all South Africans.”
and:
“That the economy must be open to greater ownership by a greater number of South Africans.”
We said that the purpose of the Act is to provide all South Africans equal opportunity to participate fairly in the national economy and to promote employment and advance the social and economic welfare of South Africans.
In short, the purpose of the Competition Act is to facilitate economic transformation that is radical, inclusive and sustainable.
As we work together to fundamentally change our economy, we are bound to ask whether – in substance and practice – our policies, laws and institutions sufficiently advance these objectives.
We inherited a racially skewed economy that had a few dominant players.
Market dominance in the South African context, therefore, refers not only to specific sectors in which significant market share has been unfairly captured and retained by a few companies.
It refers also to the concentration of ownership and control in the hands of white South Africans, specifically white men.
Black South Africans are for the most part excluded from exercising control over the most important economic levers.
We must therefore measure the effectiveness of our competition policy by the extent to which it contributes to undoing the racial and gender dimensions of economic concentration.
As Minister Ebrahim Patel said yesterday, our competition policies should concern themselves not only with the conduct of companies, but also the structure of the market.
Where the structure of markets are found to inhibit competition, innovation and new entrants, then we need to have appropriate policy instruments to change the structure.
In recent years, South Africa’s competition authorities – working together with industry and other public entities – have produced several innovative measures to promote public interest considerations in significant mergers and acquisitions.
This has been possible because these authorities have seen their role not merely as regulatory, but also as developmental.
It is this same thinking that must inform our approach as we evolve our policies, laws and practices.
We must use the levers at our disposal to facilitate the entry of new black companies into established markets.
We must create space for SMMEs in sectors where until now only large companies have flourished.
Unless we open up that space, all the resources we invest in small business development will be of little value.
Significantly, our competition policies must expand choice and reduce costs for consumers.
As we implement policies to change the structure of our economy, we must at all times be aware of the devastating impact that anti-competitive behaviour has on the lives of our people.
We must ensure that our competition law and institutions effectively protect the poor.
They must safeguard the dignity and rights of our people.
From the latest Poverty Trends Report, released last week by Statistics SA, we know that more than half of South Africans live in poverty.
We know that children aged 17 and younger are disproportionately affected.
These statistics are devastating, but they are not nearly as devastating as the lives behind the statistics. ...
When cartels fix the price of a necessity like bread, poor families are sometimes forced to choose between paying for school transport or starving.
When the costs of telecommunications including data are high, small businesses can be forced to close shop or lay off personnel. When the private health care system fixes prices for life saving drugs and overcharges for admissions, individuals and families find themselves compelled to use the already overburdened public health system.
As we deliberate at this conference on the critical issues of competition policy and law, we must remain alert to the indignity of poverty that affects many young South Africans...
We must refuse to be numbed by it. It is inhumane and unnatural.
Our actions can ease or compound the suffering of young people like them. Competition policy must contribute to the achievement of sustainable livelihoods.
But as social partners, it is our responsibility to confront attitudes and end practices that place the activities of business at odds with the interests of society.
By resisting competition and charging more for products and services, businesses add to the hardships of the ordinary poor. In doing so, they are complicit in perpetuating poverty and deepening inequality.
As social partners, we share a determination and commitment to develop our economy, eradicate poverty and fundamentally transform our society.
We look to you, the delegates to this conference, to give us the means.
I thank you.
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EAC member states roll out single electronic passport
Kenya was Friday morning expected to begin issuance of single electronic East African Community (EAC) passports with the release in Nairobi of the first batch of the new generation documents.
More than 1,800 e-passport applications are expected to be printed on Friday after acting Interior and Co-ordination of National Government secretary Fred Matiangi officially launched it.
“Today, I can attest to you that Kenya has fully complied with Standards and Guidelines set by International Civil Aviation Organisations (ICAO) and EAC Chiefs of Immigration on travel document design, processing and issuance,” said Dr Matiangi.
The new e-passport database is enhanced with Automated Fingerprint Verification system (AFIS) to minimise fraud, identity theft, forgery and passport skimming.
It replaces the machine readable East African and ordinary passports issued by the member states and is available in diplomatic, service and ordinary categories.
The standard international e-Passport will have a chip that holds the same information that is printed on the passport’s data page, the holder’s name, date of birth, and other biographic information.
The new passport also comes with a biometric identifier and bears a digital photograph of the holder as well as digital security features to prevent unauthorised reading or “scanning” of data stored.
Production of ordinary passports ceased at midnight, leaving the department of immigration with a backlog of 16,000 applications.
This means that the 16,000 applicants must now visit Nyayo House to provide biometric data in order to receive the e-passport.
“Applications will be made at the Nairobi, Mombasa and Kisumu offices, however, processing will be at Nyayo House before the documents are couriered back to the stations,” said Gordon Kihalangwa, Director of immigration.
The EAC travel document comes in red, green and sky blue – the colours of the EAC flag – but with text and national emblems, in gold to complete its face.
The colour of the passport will depend on categories.
EAC diplomats will carry red passports, green for officials and sky blue for ordinary passports.
Kenya is the second EAC member state after Burundi to issue the single e-passport as part of East African Integration and Cross Border Migration.
EAC directed its members during the 35th EAC Council of Minister’s meeting to commence issuance the New EA e-Passport by 31st January 2018.
EA e-Passport is expected to boost free movement of people across the region and it will be in line with implementation of the Common Market protocol which guaranteed the right to move between countries in East Africa.
Uganda is still in the process of procuring a provider for the new passports while Tanzania and Rwanda are expected to commence with the new EAC e-passports from January 2018.
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South Africa Merchandise Trade Statistics for July 2017
South Africa trade surplus narrows in July
South Africa’s trade surplus decreased to R8.99 billion in July of 2017 from a downwardly revised R10.56 billion surplus in June, beating market expectations of a R5.8 billion surplus. Exports fell 8.7 percent and imports declined at a slower 8 percent. Considering the January to July period, exports rose 4.4 percent and imports tumbled 2.2 percent, shifting the country’s trade balance into a R36.6 billion surplus from a R4.703 billion gap in the same period of 2016.
Compared with the previous month, exports declined to R93.09 billion from R102.02 billion, mainly due to lower shipments of precious metals and stones (-21 percent); base metals (-12 percent); mineral products (-5 percent); machinery and electronics (-5 percent) and wood and wood articles (-30 percent). Major destinations for exports were China (8.7 percent of total exports), Germany (7.8 percent), the US (7.6 percent), Japan (5.3 percent) and Namibia (4.3 percent).
Imports fell to R84.11 billion from R91.46 billion, due to lower purchases of mineral products (-27 percent); original equipment components (-17 percent); base metals (-18 percent); vehicles and transport equipment (-11 percent) and machinery and electronics (-5 percent). Imports came mainly from China (18 percent of total imports), Germany (11.9 percent), the US (7 percent), India (5.4 percent) and Japan (3.6 percent).
Excluding trade with neighboring Botswana, Lesotho, Namibia and Swaziland, the country posted a trade surplus of R2.3 billion in July.
The South African Revenue Service (SARS) has released trade statistics for July 2017 recording a trade balance surplus of R8.99 billion. These statistics include trade data with Botswana, Lesotho, Namibia and Swaziland (BLNS). The year-to-date trade balance surplus (01 January to 31 July 2017) of R36.63 billion is an improvement on the deficit for the comparable period in 2016 of R4.70 billion. Exports for the year-to-date grew by 4.4% whilst imports for the same period declined by 2.2%.
Including trade data with Botswana, Lesotho, Namibia and Swaziland (BLNS)
The R8.99 billion trade balance surplus for July 2017 is attributable to exports of R93.09 billion and imports of R84.10 billion. Exports decreased from June 2017 to July 2017 by R8.92 billion (8.7%) and imports decreased from June 2017 to July 2017 by R7.35 billion (8.0%).
Exports for the year-to-date (01 January to 31 July 2017) grew by 4.4% from R629.65 billion in 2016 to R657.34 billion in 2017. Imports for the year-to-date of R620.71 billion are 2.2% less than the imports recorded in January to July 2016 of R634.36 billion, leaving a trade balance surplus of R33.63 billion.
On a year-on-year basis, the R8.99 billion trade balance surplus for July 2017 is an improvement from the surplus recorded in July 2016 of R0.41 billion. Exports of R93.09 billion are 2.7% more than the exports recorded in July 2016 of R90.66 billion. Imports of R84.10 billion are 6.8% less than the imports recorded in July 2016 of R90.26 billion.
June 2017’s trade balance surplus was revised downwards by R0.11 billion from the previous month’s preliminary surplus of R10.67 billion to a revised surplus of R10.56 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 BLNS: |
|
Precious Metals & Stones |
- R3 825 |
- 21% |
Base Metals |
- R1 421 |
- 12% |
Mineral Products |
- R1 103 |
- 5% |
Machinery & Electronics |
- R 418 |
- 5% |
Prepared Foodstuff |
- R 310 |
- 7% |
Textiles |
- R 303 |
- 23% |
Total |
- R6 801 |
83% |
Total Movement |
- R8 921 |
100% |
The main month-on-month import movements: R’ million |
||
Section: |
Including BLNS: |
|
Mineral Products |
- R3 246 |
- 27% |
Original Equipment Components |
- R1 458 |
- 17% |
Vehicles & Transport Equipment |
- R 1 352 |
- 11% |
Machinery & Electronics |
- R 992 |
- 5% |
Base Metals |
- R 908 |
- 18% |
Optical Photographic Products |
+ R 157 |
+ 7% |
Chemical Products |
+ R 598 |
+ 6% |
Total |
- R7 201 |
98% |
Total Movement |
-R7 350 |
100% |
Trade highlights by world zone
The world zone results from June 2017 (revised) to July 2017 are given below.
Africa:
Trade Balance surplus: R17 407 million – this is a deterioration in comparison to the R22 418 million surplus recorded in June 2017.
America:
Trade Balance deficit: R881 million – this is an improvement in comparison to the R2 217 million deficit recorded in June 2017.
Asia:
Trade Balance deficit: R9 806 million – this is an improvement in comparison to the R11 705 million deficit recorded in June 2017.
Europe:
Trade Balance deficit: R3 898 million – this is an improvement in comparison to the R5 213 million deficit recorded in June 2017.
Oceania:
Excluding trade data with Botswana, Lesotho, Namibia and Swaziland (BLNS)
The trade data excluding BLNS for July 2017 recorded a trade balance surplus of R 2.28 billion, attributable to exports of R83.09 billion and imports of R80.81 billion.
Exports decreased from June 2017 to July 2017 by R4.70 billion (5.4%) and imports decreased from June 2017 to July 2017 by R7.64 billion (8.6%).
The cumulative deficit for 2017 is R16.06 billion compared to R64.72 billion deficit in 2016.
Trade highlights by category
The main month-on-month export movements: R’ million |
||
Section: |
Excluding BLNS: |
|
Precious Metals & Stones |
- R1 537 |
- 9% |
Mineral Products |
- R1 270 |
- 7% |
Machinery & Electronics |
- R 333 |
- 5% |
Textiles |
- R 309 |
- 37% |
Wood Pulp and Paper |
- R 296 |
- 20% |
Chemical Products |
- R 200 |
- 4% |
Other Unclassified |
- R 157 |
- 27% |
Base Metals |
+ R 347 |
+ 4% |
Total |
- R3 755 |
80% |
Total Movement |
- R4 701 |
100% |
The main month-on-month import movements: R’ million |
||
Section: |
Excluding BLNS: |
|
Mineral Products |
- R3 246 |
- 27% |
Original Equipment Components |
- R1 458 |
- 17% |
Vehicles & Transport Equipment |
- R1 280 |
- 11% |
Machinery & Electronics |
- R 907 |
- 4% |
Base Metals |
- R 900 |
- 18% |
Chemical Products |
+ R 350 |
+ 4% |
Total |
- R7 531 |
99% |
Total Movement |
- R7 642 |
100% |
Trade highlights by world zone
The world zone results for Africa excluding BLNS from June 2017 (Revised) to July 2017 are given below.
Africa:
Trade Balance surplus: R10 701 million – this is a deterioration in comparison to the R 11 201 million surplus recorded in June 2017.
Botswana, Lesotho, Namibia and Swaziland (Only)
Trade statistics with the BLNS for July 2017 recorded a trade balance surplus of R6.71 billion, attributable to exports of R10.01 billion and imports of R3.30 billion.
Exports decreased from June 2017 to July 2017 by R4.22 billion (29.7%) and imports increased from June 2017 to July 2017 by R0.29 billion (9.7%).
The cumulative surplus for 2017 is R52.68 billion compared to R60.02 billion in 2016.
Trade Highlights by Category
The main month-on-month export movements: R’ million |
||
Section: |
BLNS: |
|
Precious Metals & Stones |
- R2 288 |
- 100% |
Base Metals |
- R1 768 |
- 70% |
Chemical Products |
- R 96 |
- 9% |
Machinery & Electronics |
- R 85 |
- 5% |
Mineral Products |
+ R 166 |
+ 11% |
Total |
- R4 071 |
96% |
Total Movement |
- R4 220 |
100% |
The main month-on-month import movements: R’ million |
||
Section: |
BLNS: |
|
Chemical Products |
+ R 248 |
+ 85% |
Precious Metals & Stones |
+ R 124 |
+ 26% |
Live Animals |
+ R 31 |
+ 7% |
Vehicles & Transport Equipment |
- R 71 |
- 73% |
Machinery & Electronics |
- R 85 |
- 21% |
Total |
+ R 247 |
85% |
Total Movement |
+ R 292 |
100% |
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Zambia ends a two-year trade deficit with a surplus in July
In July 2017, Zambia recorded a trade surplus valued at K410.6 Million from a trade deficit of K335.7 Million recorded in June 2017. This represents a 222.3 percent increase in the trade balance. This means that the country exported more in July 2017 than it imported in nominal terms.
There has been an increase of 21.2 percent in the total value of Metal exports (TEs) from K4,386.1 Million in June 2017 to K5,314.0 Million in July 2017. The overall contribution of Metals and their products to the total export earnings in July and June 2017 averaged 76.8 percent.
Non Traditional exports (NTEs) on the other hand have recorded a decrease of 9.6 percent from K1,522.0 Million in June 2017 to K1,376.6 Million in July 2017. The share of NTEs recorded an average of 23.2 percent in revenue earnings between July and June 2017.
Export highlights – July and June 2017
Zambia’s copper export volumes and London Metal Exchange (LME) prices
Between July and June 2017, the volume of Copper exported significantly increased by 16.4 percent, from 81,489.1 metric tonnes recorded in June 2017 to 94,851.5 metric tonnes in July 2017.
On the other hand, the corresponding price of Copper on the London Metal Exchange increased by 4.9 percent from USD5,699.48 per metric tonnes in June 2017 to USD5,978.60 per metric tonnes in July 2017.
Since Copper accounts for the largest weight/ proportion of Traditional Exports, any change in the volume and price/value has a direct bearing on the performance of Traditional Exports.
Zambia’s top 25 Non-Traditional Exports
Zambia’s major Non-Traditional Exports (NTE) for July 2017 were Cobalt oxides and hydroxides; commercial cobalt oxides in bulk, which accounted for 7.4 percent, followed by New stamps; stamp-impressed paper; cheque forms; Bank notes, etc; postage, revenue stamp, which accounted for 6.1 percent.
Other notable NTEs in July 2017 were Cotton, not carded or combed (5.5 percent) and Bullion semi-manufactured forms which accounted for 4.5 percent.
Exports by major product categories
Zambia’s major export products in July 2017 were from the intermediate goods category (mainly comprising Copper anodes for electrolytic refining and Cathodes of refined copper) accounting for 86.0 percent. Exports from the Consumer goods, Raw Materials and Capital goods categories, collectively accounted for 14.0 percent of total exports in July 2017.
Zambia’s major export destinations by commodity
The major export destination in July 2017 was Switzerland, which accounted for 50.2 percent of the total export earnings. The major export products to Switzerland were Copper anodes for electrolytic refining, accounting for 47.3 percent.
China was the second main destination of Zambia’s exports accounting for 11.8 percent of the total export earnings. The major export product to China was Copper blister, accounting for 57.8 percent of total export earnings to that country.
South Africa was the third main export destination accounting for 10.1 percent of the total export earnings. The major export product was Cathodes of refined copper accounting for 39.9 percent.
Congo DR was the fourth main export destination accounting for 5.8 percent of the total export earnings. The major export products were Sulphuric acid; oleum in bulk accounting for 13.6 percent of total export earnings to that country.
The fifth main export destination was Hong Kong, which accounted for 4.1 percent of the total export earnings. The major export products were Coppercobalt alloy, accounting for 83.2 percent. These five countries collectively accounted for 82.0 percent of Zambia’s total export earnings in July 2017.
Export market shares by selected regional groupings and major trading partners
Switzerland was the largest market for Zambia’s total exports in the month of July 2017, accounting for 50.2 percent.
Asia was the second largest market for Zambia’s total exports, accounting for 21.0 percent in July 2017. Within Asia, China was the dominant export market, accounting for 56.4 percent. Other notable markets in Asia were Hong Kong, Singapore, United Arab Emirates and India.
The SADC exclusive grouping was the third largest market for Zambia’s total exports accounting for 12.5 percent in July 2017. Within this grouping, South Africa was the dominant market with 81.1 percent. Other notable markets in this grouping were Tanzania and Botswana.
The Dual SADC & COMESA was the fourth largest market for Zambia’s total exports accounting for 11.0 percent in July 2017. Within this group, Congo DR was the dominant market with 53.1 percent. Other notable markets were Swaziland, Zimbabwe and Malawi.
The European Union grouping was the fifth largest market for Zambia’s total exports accounting for 2.2 percent in July 2017. Within this grouping, The United Kingdom was the dominant market with 56.4 percent. Other notable markets in this grouping were Luxembourg and Belgium.
The COMESA exclusive grouping was the sixth largest market for Zambia’s total exports accounting for 1.4 percent in July 2017. Within this group, Kenya was the dominant market with 44.3 percent. Other notable markets were Rwanda and Burundi.
The rest of the world accounted for the remaining 1.7 percent in July 2017.
Import highlights – July and June 2017
Imports by major product categories
The major import products by category in July 2017 were Capital goods category, accounting for 31.8 percent. The intermediate goods category was second with 28.3 percent followed by Consumer goods and Raw materials Categories, accounting for 26.3 percent and 13.6 percent, respectively.
Zambia’s major import sources by product
The major source of imports in July 2017 was South Africa, accounting for 29.6 percent. The major import products were Parts of machinery of 84.26, 84.29 and 84.30, not elsewhere specified and Sulphur of all kinds, each accounting for 2.6 percent.
The second source of Zambia’s imports was Congo DR, accounting for 22.6 percent. The major import products were Cobalt oxides and hydroxides; commercial cobalt oxides in bulk which accounted for 51.8 percent.
China was the third main source of Zambia’s imports, accounting for 10.5 percent. The major import products were Crushing or grinding machines for earth, stone, ores, etc accounting for 9.1 percent.
Other sources of Zambia’s imports were Kuwait and India, which collectively accounted for 10.2 percent of Zambia’s imports.
Import market shares by selected regional groupings and major trading partners
The SADC exclusive grouping was the major source of Zambia’s imports, accounting for 34.0 percent in July 2017. Within this grouping, South Africa was the dominant market with 86.9 percent. Other notable markets were Tanzania, Namibia, Mozambique and Botswana.
Asia was the second main source of Zambia’s imports accounting for 26.7 percent in July 2017. Within this grouping, China was the major source of Zambia’s imports accounting for 39.5 percent. Other notable markets were Kuwaiti, India, United Arab Emirates and Japan.
Dual SADC-COMESA was the third main source of Zambia’s imports, accounting for 26.6 percent in July 2017. Within this regional grouping, Congo DR was the main source of Zambia’s imports with 85.2 percent. Other notable markets were Mauritius, Zimbabwe, Swaziland and Malawi.
The European Union was the fourth largest source of Zambia’s imports accounting for 7.3 percent. Within this grouping, United Kingdom was the main source of Zambia’s imports with 28.0 percent. Other notable markets were Sweden, Germany, Belgium and Finland.
The COMESA exclusive grouping was the fifth largest source for Zambia’s imports accounting for 0.6 percent in July 2017. Within this grouping, Kenya was the dominant market with 77.1 percent. Other notable markets were Egypt, Burundi, Ethiopia and Uganda.
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tralac’s Daily News Selection
Interim EPA between the EU and the Eastern and Southern African States: report by the WTO Secretariat
The Interim Agreement establishing a Framework for an Economic Partnership Agreement between the EU and the Eastern and Southern African states (Madagascar, Mauritius, Seychelles and Zimbabwe) is the EU’s 25th RTA notified to the WTO. Among the ESA States for whom the Agreement is in force, for Madagascar it is the 2nd RTA notified, for Mauritius the 3rd RTA, the first for the Seychelles and the 4th for Zimbabwe; the other ESA States the Comoros and Zambia, did not sign the Agreement although discussions with the Comoros on signature are continuing.
Trade with the European Union is important for the economies of the ESA States. In 2014 the EU was the largest destination for merchandise exports from three of the four ESA States (Mauritius, 49.1% of its exports, Madagascar, 49.8% and the Seychelles, 59.3%). It is the third largest export destination for Zimbabwe (5% of its exports). In 2014 the EU was the largest source of merchandise imports for the Seychelles (33.6% of its imports), second largest for Mauritius (20.8%) and Madagascar (15.6%) and third largest for Zimbabwe (albeit representing only 8.6% of its imports). For the EU Mauritius is the 75th largest source of imports, followed by Madagascar at 78th, Zimbabwe at 91 and Seychelles at 109th large source of imports. In terms of EU exports, Mauritius is its 91st largest merchandise export market, followed by Madagascar (112), Seychelles (136) and Zimbabwe (139).
Rwanda: Trade deficit drops by 25% (New Times)
Rwanda’s trade deficit significantly in the first six months of 2017 by over 25% compared to the corresponding period last year, new data shows. According to the latest monetary policy and financial stability statement, the gap between import and export in the first half of the year stood at $671.2m compared to $902.3m in the same period last year. The statement, presented yesterday by central bank governor John Rwangombwa, shows that formal exports grew by 39.8%. Formal imports also declined by about 10.6% largely due to increased consumption of locally-made products under the Made-in-Rwanda campaign. Rwangombwa said the drop in imports was partly due to the completion of large infrastructure projects as well as a result of the positive impact of the Made-in-Rwanda campaign. For instance, cement imports dropped by 10.9% following an increase of production by CIMERWA from 134,001 tonnes to 162,351 tonnes in the first half of this year. Fertiliser imports also dropped as a local firm, Agro-processing Trust Company, went operational improve the efficiency of distribution and management of the commodity.
Transcripts of the recent AGOA eligibility hearings: (i) Public hearing for the annual review of the eligibility of the Sub-Saharan African countries (pdf) to receive the 2018 benefits of the African Growth and Opportunity Act (23 August); (ii) Public hearing to review the Republic of Rwanda’s, United Republic of Tanzania’s, and Republic of Uganda’s eligibility (pdf) to receive the benefits of the African Growth and Opportunity Act (13 July)
Profiled ACBF African trade, infrastructure, regional integration consultancies:
(i) Country case studies on the implementation of the African Growth and Opportunity Act. Against this background, these studies aim at providing evidence-based insights on the implementation of AGOA at country level and how countries can optimise on the benefits of this preferential trade arrangement. Beyond AGOA, this will inform Africa’s other trade policies which will ultimately improve the continent’s positioning in the world trade. Based on geographical/language representation and performance under AGOA, the following 11 countries have been identified for the country case studies: Côte d’Ivoire, Ethiopia, Kenya, Lesotho, Liberia, Madagascar, Mauritius, Rwanda, Tanzania, Togo and Zambia. The case studies are primarily aimed at documenting the AGOA experience of the 11 countries and drawing lessons for the rest of African countries. The specific objectives include the following:
(ii) A review to support regional integration Agenda reform at AU – Ethiopia. The objective of the assignment is to strengthen the working methods of the African Union in order to (a) increase coordination of the thematic implementation of the regional integration agenda, and (b) strengthen the institutional and governance linkages between Regional Economic Communities (RECs) amongst and the AUC.
(iii) Regional trade policy guidelines for cross-border infrastructure. The overall objective of the consultancy is to develop Regional Trade Policy Guidelines for Cross-border Infrastructure based on lessons and evidence drawn from the AU-recognized RECs (UMA; COMESA; CEN–SAD; EAC; ECCAS; ECOWAS; IGAD; and SADC). More specifically, the consultant will: identify cross-border infrastructure projects critical to trade; evaluate regional impact; identify stakeholders at the regional level; identify policies and laws and regulations surrounding the projects; identify capacity challenges associated with the projects; develop regional trade policy guidelines for cross-border infrastructure based on the analysis, including the key capacity requirements and how to enhance them; serve as resource-person for a workshop targeting Africa’s RECs.
(iv) Policy research papers on innovative methods for financing regional infrastructure: lessons for Africa from other developing regions. It is against this background that ACBF,is undertaking a series of policy-oriented studies that aim at identifying, documenting and sharing innovative methods for financing regional infrastructure in Africa with the present call focused on lessons for Africa from other developing regions. The lessons could be in any relevant infrastructure sector: energy, transport, ICT, etc. These studies will provide new insights and improve the body of knowledge on financing regional infrastructure in Africa. They will support decision-makers and practitioners in understanding and learning from innovative methods for financing regional infrastructure in Africa, to ultimately be capable of adapting and replicating those methods in their own context. [The full set of consultancy opportunities can be accessed here]
Namibia: Geingob rules out IMF bailout (New Era)
Geingob explained that the government is not to blame for the economic downturn and reiterated that it was caused mainly by subdued commodity prices and a drop in SACU receipts. He said although the country faces an economic slowdown, Namibia will not seek International Monetary Fund (IMF) bailouts, nor will it accept the so-called “structural reform packages” from external parties. “That is why Namibia has never gone to the IMF for an economic bailout package or entertained any internationally imposed structural reform programmes. Most of our debt is local and in keeping with continuing the legacy of my predecessors,” he said yesterday at the 18th Ongwediva Annual Trade Fair.
Mining Industry Association of Southern Africa: update following biennial elective meeting, 25 August (Mining Review)
To address some of these challenges Mining Industry Association of Southern Africa has decided to champion dealing with the trust deficit between governments and the mining industry in the region as part of its lobbying role. Mining Industry Association of Southern Africa hopes that that it will get a positive response from the Committee of Ministers of Mines in the region when it requests their audience through the SADC platform. Mining Industry Association of Southern Africa has further committed itself to work closely with the Southern African Business Forum with the intention of influencing SADC governments through the ministers of mines in the region towards ensuring the sustainability and growth of the mining sector.
Mozambique: Cargo traffic grows at major ports (Club of Mozambique)
Cargo handling in the first six months of 2017 grew 23% against the same period in 2016, Mozambican newspaper Notícias quotes Transport and Communications Minister Carlos Mesquita as saying. Minister Mesquita attributed the growth to the stabilisation of prices in the international market for Mozambican exports such as coal, sugar and cotton. However, “the volume of cargo we have been handling is below the total installed port capacity, which is in the order of 74 million tons,” he added. Even larger numbers, fuelled by exports from the primary sector, are expected in the coming months, since “the second half of each year is always the most active”.
Uganda: Committee to restrict foreigners in petty trade (Daily Monitor)
Trade minister Amelia Kyambadde has commissioned a committee comprising of several government ministries, departments and agencies to develop regulations restricting foreigners in petty and retail trade. According to Ms Kyambadde, a meeting where a progress report will be presented shall be convened after every two months at the ministry of trade headquarters in Kampala. The sectoral committee should also develop rules on a timeline in which expatriates should be employed in a foreign company as well as have a provision requiring attachment of local staff to understudy foreign experts in their specific fields of work.
Ugandan traders return to war-ravaged South Sudan (Daily Monitor)
Ugandan traders have started returning to South Sudan a year after they were evacuated by Uganda People’s Defence Forces. Some of the traders who talked to Daily Monitor said they returned to a risky country because they couldn’t cope with the economic condition in Uganda. The chairperson of the Ugandan community in South Sudan, Mr Bruhan Tibo Obiga, said Ugandan traders are returning because business [in South Sudan] is starting to pick up, especially in the capital.
Chinese companies eye Uganda’s oil sector (Daily Monitor)
A group of Chinese companies have shown interest in partnering with Ugandan businesses to participate in developing the oil and gas sector of in Uganda. Speaking during a recent oil and gas conference hosted by Stanbic Bank Uganda in collaboration with the Industrial and Commercial Bank of China Limited (ICBC), in Kampala, Mr Patrick Mweheire, the chief executive officer Stanbic Bank, said there are now numerous opportunities presented by the promising oil and gas sector. Mr Wang Lubin, the chief representative officer ICBC and board member of Standard Bank Group, said: “ICBC and Stanbic Bank are well-placed to play a leading role in the development of the sector. We have already been working with government and the companies which are executing a number of critical Oil related infrastructure projects and have vast experience working together on large scale projects across the continent.” [Nigeria: Chinese to build $5.8bn hydropower plant]
Ghana: CRIA launches reports on African integration issues (Ghana Press)
The Centre for Regional Integration has unveiled four research reports about matters regarding integration in Africa, highlighting challenges and prescribing solutions for an inclusive integration process for quicker economic growth in the continent. The reports included Regional Integration Issues Forum Network Planning Meeting, RIIF Policy Dialogue, RIIF Network Monitoring Team and Issues in African Regional Integration, 2017. CRIA unveiled the reports in partnership with the African Capacity Building Foundation, GIMPA, WACSI and AFRINVEST at the YALI Building on GIMPA Campus in the capital, Accra. [Ghana to leverage on the ECOWAS market to grow]
Three GSDRC reports on illicit trade in African wildlife: (i) Criminal networks and the illicit wildlife trade; (ii) The political economy of the illegal wildlife trade; (iii) Enforcement and regulation of the illegal wildlife trade in Sub Saharan Africa
Rice: Stirring up trouble in international trade (Statfor)
Rice exports are currently concentrated among a handful of producers, protective trade measures are rampant in the sector, and the grain’s variants cannot be easily substituted for one another – all factors that make the industry highly susceptible to disruptions in the market. These risks are unlikely to lessen in the near future, as rice seems all but certain to remain a sticking point in upcoming trade negotiations that involve the United States or its Asian competitors.
Today’s Quick Links: Ethiopian Airlines in talks to take over Nigeria’s Arik Air East Africa: Regional grain trade analysis for week ending 25 August New Transnet, DBSA finance scheme set up to support African rail exports Trade and Development Bank: Board of Governors meeting in Seychelles SADC considers establishing regional risk insurance South Africa: MPs frustrated by lack of action on illicit financial flows Matti Ylönen (UNU-WIDER Blog): Too late, too little? The IMF and international tax flight Tengfei Wang: Six things I learnt in conducting trade and transport facilitation monitoring studies in South Asia Improving gender outcomes for regional trade programmes (with particular applicability to South Asia) |
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Rwanda: Trade deficit drops by 25%
Rwanda’s trade deficit significantly in the first six months of 2017 by over 25 per cent compared to the corresponding period last year, new data shows.
According to the latest monetary policy and financial stability statement, the gap between import and export in the first half of the year stood at $671.2 million compared to $902.3 million in the same period last year.
The narrowing of the trade deficit can be attributed to a number of factors, including recovery of international commodity prices which has boosted the performance of exports.
The statement, presented yesterday by central bank governor John Rwangombwa, shows that formal exports grew by 39.8 per cent.
Formal imports also declined by about 10.6 per cent largely due to increased consumption of locally-made products under the Made-in-Rwanda campaign.
According to Rwangombwa, total exports increased in value in the first half of the year to $375.92 million compared to the same period last year where they fetched $268.93 million.
Traditional exports, which include tea, coffee, minerals, pyrethrum as well as hides and skins, raked in $116.56 million in the first half of the year compared to $98.97 million last year.
In the bracket, the mining sector (coltan, cassiterite and wolfram) contributed the largest growth as their export value grew form $40.73 million in the first half of last year to $48.25 million this year.
Non-traditional exports, which in Rwanda are dominated by other minerals (other than coltan, cassiterite and wolfram), milling products and other manufactured products increased by 95.2 per cent in value and 30 per cent in volume.
Imports dropped by about 10.6 per cent to $1,047.1 million this year from $1,171.3 million in the first half of 2016.
Underpinning good performance
Rwangombwa said the drop in imports was partly due to the completion of large infrastructure projects as well as a result of the positive impact of the Made-in-Rwanda campaign.
For instance, cement imports dropped by 10.9 per cent following an increase of production by CIMERWA from 134,001 tonnes to 162,351 tonnes in the first half of this year.
Fertiliser imports also dropped as a local firm, Agro-processing Trust Company, went operational improve the efficiency of distribution and management of the commodity.
Trade with East African member states went up in the first half of the year to about $72.2 million from $66.6 million last year as exports to Kenya and Uganda grew.
Main exports to EAC countries include tea through the Mombasa Auction, petroleum products to various airlines at the Kigali International Airport as well as Burundi, Sorghum to Uganda and raw skins and hide.
Rwanda, in turn, imported goods worth about $221.6 million from EAC member countries.
Francois Kanimba, who was until yesterday, the Minister for Trade and Industry, attributed the reduction of the trade deficit to contribution of the increased production and consumption of locally-made goods.
He said the increased contribution of non-traditional exports to receipts was a positive trend and it showed signs of exports diversification.
Commenting on the state of the economy, Rwangombwa said improvement of global demand is expected to lead to an increase in Rwanda’s export revenue as well as easing inflation to around 5 per cent by the end of the year.
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Interim Economic Partnership Agreement between the EU and the Eastern and Southern African (ESA) States: Report by the WTO Secretariat
Trade Environment
The Interim Agreement establishing a Framework for an Economic Partnership Agreement between the EU and the Eastern and Southern African (ESA) States (Madagascar, Mauritius, Seychelles and Zimbabwe) is the EU’s 25th RTA notified to the WTO. Among the ESA States for whom the Agreement is in force, for Madagascar it is the 2nd RTA notified, for Mauritius the 3rd RTA, the first for the Seychelles and the 4th for Zimbabwe; the other ESA States the Comoros and Zambia, did not sign the Agreement although discussions with the Comoros on signature are continuing.
The EU is the world’s second largest merchandise trader (excluding intra-EU trade) both in exports and imports with exports valued at 2,415 billion euros and imports at 2,188 billion euros in 2013. Among the ESA States the largest trader is Mauritius, ranked 97th in the world in terms of global exports and 99th in imports, followed by Zimbabwe, ranked 98th in world exports and 108th in imports. Madagascar is ranked as the world’s 107th exporter and 117th importer of merchandise, while the Seychelles was the world’s 138th and 140th exporter and importer respectively.
Trade with the European Union is important for the economies of the ESA States. In 2014 the European Union was the largest destination for merchandise exports from three of the four ESA States (Mauritius, 49.1% of its exports, Madagascar, 49.8% and the Seychelles, 59.3%). It is the third largest export destination for Zimbabwe (5% of its exports). In 2014 the EU was the largest source of merchandise imports for the Seychelles (33.6% of its imports), second largest for Mauritius (20.8%) and Madagascar (15.6%) and third largest for Zimbabwe (albeit representing only 8.6% of its imports). For the EU Mauritius is the 75th largest source of imports, followed by Madagascar at 78th, Zimbabwe at 91 and Seychelles at 109th large source of imports. In terms of EU exports, Mauritius is its 91st largest merchandise export market, followed by Madagascar (112), Seychelles (136) and Zimbabwe (139).
In terms of structure, while the European Union’s exports and imports are dominated by manufactured goods, with the exception of Mauritius whose exports of manufactures account for over 68% of total merchandise exports in 2015 and to some extent Madagascar (29% of exports), agriculture and fuels and mining form a more important share of total exports for the ESA States. Agriculture accounts for 29% of total merchandise exports for Madagascar, 43% for Zimbabwe and as much as 61% for the Seychelles, while fuels and mining exports are important for Madagascar (35%). Imports by the ESA States are dominated by manufactured products, at around 55% of total imports.
Global and bilateral merchandise trade between the EU and the ESA States between 2002 and 2014: The EU has, for much of the period, had a trade deficit in its global exports, which widened steadily between 2004 and 2008. Since 2009 trade has been more balanced. With regards to its ESA partners, however, with the exception of the Seychelles, the EU has maintained a deficit in its trade; the deficit with the Seychelles declined between 2002 and 2006 before moving into surplus until 2013 since when it has been in deficit again. All the ESA parties have also maintained deficits in their global trade during the period; Zimbabwe’s trade in particular has been volatile.
Commodity structure of trade among the Parties and imports and exports to the world in the period 2009-11, on the basis of Harmonized System (HS) sections: Over this period, the EU’s four largest export product categories – machinery, chemicals, vehicles and base metals – made up 73% of its total exports and accounted for 61% of Madagascar’s imports from the EU; 46% of Mauritius’s imports from the EU; 65% of Seychelles’ and Zimbabwe’s imports from the EU. Other key imports by the ESA States from the EU include textiles by Madagascar (12% of total imports), live animal products by Mauritius (17%), while base metals were not a significant import by Zimbabwe. Over the same period, the five largest export product categories from Madagascar – textiles, vegetable products, minerals, animal products, and prepared foods – made up 74% of its total exports and accounted for 89% of the EU’s imports from Madagascar. The two largest export categories from Mauritius – textiles and prepared foods – made up 72% of its total exports and accounted for 81% of the EU’s imports from Mauritius. However, the structure of exports for the Seychelles and Zimbabwe is different globally and with regard to the EU. While the two largest export categories from the Seychelles – textiles and live animals – made up 81% of its total exports, 90% of the EU’s imports from the Seychelles were in prepared foods (fish and fisheries products), while of the four largest export categories from Zimbabwe which made up 70% of its total exports, only textiles and base metals (67%) were key EU imports.
Characteristic Elements of the Agreement
The Agreement was signed by the Parties on 29 August 2009 and provisionally applied since 14 May 2012. It was notified to the WTO on 27 July 2012 under Article XXIV:7 of the GATT 1994 and its Understanding.3 The Agreement aims to contribute to the reduction and eventual eradication of poverty through a strengthened and strategic trade and development partnership consistent with the objective of sustainable development, the Millennium Development Goals and the Cotonou Agreement. Other goals of the Agreement include: to promote regional integration, economic cooperation and good governance in the ESA region and its gradual integration into the world economy; structural adjustment of the ESA economies and diversification; and improved trade policy and trade related capacity (Article 2). Article 3 aims to establish an agreement consistent with GATT Article XXIV and to establish the framework, scope and principles for further negotiations on the basis of proposals already submitted and for potential negotiations on other issues as identified in the Cotonou Agreement and of interest to the Parties.
Article 4 of the Agreement permits ESA LDCs that have not yet submitted tariff reduction offers to do so after signature of the Interim Agreement on the same or flexible conditions and to benefit fully from its provisions. In addition to Zambia and the Comoros, who have made offers (as in Annex II) but have not yet signed the Agreement, the ESA LDCs are Ethiopia, Djibouti, Eritrea, Sudan and Malawi, none of whom have submitted a market access offer yet. All ESA States are eligible to accede to the Agreement (Article 66). Furthermore, the Agreement permits the ESA States to maintain regional preferences among themselves and other African countries and regions with no obligations to extend them to the EU.
The Agreement contains six Chapters and four annexes and two protocols all of which form an integral part of the Agreement.
Chapter V of the Interim Agreement contains a rendez-vous clause to build on the Cotonou Agreement and continue negotiations to conclude a full and comprehensive EPA covering the following areas: customs and trade facilitation; outstanding trade and market access issues, including rules of origin and other related issues and trade defence measures, including outermost regions; technical barriers to trade and sanitary and phytosanitary measures; trade in services; trade related issues (competition policy; investment and private sector development; trade, environment and sustainable development; intellectual property rights; and transparency in public procurement); agriculture; current payments and capital payments; development issues; cooperation and dialogue on good governance in the tax and judicial area; an elaborated dispute settlement mechanism, institutional arrangements; and any other areas that the Parties find necessary, including consultations under Article 12 of the Cotonou Agreement.
Provisions on Trade in Goods
Import duties and charges, and quantitative restrictions
Chapter II of the Agreement covers trade in goods. The Agreement aims to provide full duty free6 and quota free market access into the EU for goods originating in the ESA States on a secure, long term and predictable basis (Article 5). It also aims to promote trade between the parties and export led growth to enable the integration of the ESA economies into the global economy; to progressively and gradually liberalize the ESA goods market as established by the Agreement; and to preserve and improve market access conditions to ensure that all ESA States are better and not worse off.
The commitment to liberalize trade in goods only applies to the signatory ESA States listed in Annex II to the Agreement and to the EU market vis a vis these States. If a signatory ESA State not mentioned in Annex II wishes to join Chapter II, it shall notify its intention to the EPA Committee which has the competence to amend Annex II and may decide on any transitional measures or amendments necessary to facilitate the inclusion of the State under Annex II.
Tariff reductions are to be applied successively on the basic customs duty indicated in the Parties’ tariff schedules to the Agreement. The EU implemented its commitments upon entry into force of the Agreement (2012), while the ESA States will eliminate tariffs in stages by 2022. Fees and charges under Article 10 shall be limited to the approximate cost of services rendered and shall not represent an indirect protection for domestic products or a taxation of imports for fiscal purposes; they will be based on specific rates. Under Annex III the Seychelles had maintained price controls on imports as an exception for 10 years on national treatment on internal taxation and regulation; Seychelles has however indicated that with the promulgation of the Customs Management (Tariff and Classification of Goods) Regulations 2013, it has abolished the price control regime.
The Parties also agree not to increase their applied customs duties on products imported from the other Party (Article 14). Article 16, furthermore, commits the European Union to accord to signatory ESA States any more favourable treatment applied as a result of its free trade agreements with third parties after the signature of the Agreement. With regard to the subjects covered by the Agreement, the signatory ESA States will accord to the EU any more favourable treatment applied as a result of any new free trade agreement with any major trading economy after signing the Agreement. However, the Chapter does not oblige the Parties to extend reciprocally any preferential treatment provided by any Party to third parties through a free trade agreement on the date of signature of the Agreement. The commitments to provide favourable treatment to the EU will also not apply in respect of trade agreements they have with other African countries and regions.
Article 17 prohibits quantitative prohibitions and restrictions on imports between the Parties, other than customs duties, taxes, fees and other charges under Article 7, whether through quotas, import licences or other measures. These shall be eliminated upon the entry into force of the Agreement and no new measures shall be introduced. National treatment shall also be provided for imported products originating in the other Party, which shall not be subject either directly or indirectly to internal taxes or other internal charges of any kind in excess of those applied, directly, or indirectly, to like national products. The Parties will also not apply internal taxes or other internal charges that afford protection to national production (Article 18). Imported products originating in the other Party will be accorded treatment no less favourable than that accorded to like national products in respect of all laws, regulations and requirements affecting their internal sale, offering for sale, purchase, transportation, distribution or use. No Party may establish or maintain any internal quantitative regulation for the mixture, processing or use of products in specified amounts or proportions which requires, directly or indirectly, that any specified amount or proportion of any products which is the subject of the regulation must be supplied from domestic sources. No internal quantitative regulations may be applied so as to afford protection to national production. Article 18, however, does not prevent the payment of subsidies exclusively to national producers, including payments derived from the proceeds of internal taxes or charges applied consistently with the provisions of the Article and subsidies effected through government purchases of national products. The EPA Committee may also authorize a signatory ESA State to depart from the provisions of Article 18 to promote the establishment of domestic production and protect infant industries. In this respect the development needs of signatory ESA States and especially the needs and concerns of ESA LDCs will be taken into account. Annex III lists provisional derogations which are granted to the interested signatory ESA States for the periods of time indicated in the Annex.
Liberalization of trade and tariff lines
Annex I to the Agreement states that the EU will eliminate tariffs on all products of HS Chapters 1-97 except Chapter 93 (arms and ammunition), originating in an ESA State, upon entry into force of the Agreement. Chapter 93 will remain subject to the MFN rate of duty. The EU eliminated duties on products under HS 1006 from 1 January 2010 with the exception of HS 10061010, for which duties were eliminated upon entry into force of the Agreement. Sugar imports from the ESA were subject to the provisions of Protocol 3 of the Cotonou Agreement until 30 September 2009.
In 2012, since when the Agreement has been applied, around a quarter (24.6%) of the EU’s tariff was duty free on an MFN basis.9 This corresponded to an average of 17.2% of its imports from Madagascar, 8.5% from Mauritius, 5.3% from the Seychelles and 24.5% from Zimbabwe for the period immediately preceding entry into force (2009-2011). As of 2012, a further 7,058 lines were liberalized by the EU for imports from these ESA Parties, with 18 lines (0.2% of the tariff) remaining dutiable. As a result of the liberalization, 100% of EU imports from the ESA States during 2009-11 are covered and entered the EU market free of duty.
According to Annex II to the Agreement, tariff elimination by the ESA Parties began in 2013 and is expected to be completed by 2022.
6% (391 lines) of Madagascar’s tariff was duty free for imports on an MFN basis in 2014, corresponding to 10.5% of its imports from the EU during 2011-2013.10 In 2014 Madagascar liberalized 1,331 lines (20.5% of the tariff) for imports from the EU, corresponding to 26.7% of its EU imports during 2011-2013. The remainder of its tariff liberalization is to take place in 2022 with 3,972 lines expected to be liberalized in that year; these correspond to 52.4% of Madagascar’s imports during 2011-2013 from the EU. At the end of implementation, Madagascar will maintain tariffs on 812 lines (12.5% of the tariff) for imports from the EU, corresponding to 10.4% of its imports from the EU during 2011-2013.
88.6% of Mauritius’s MFN applied tariff was duty free for imports from all sources, corresponding to 93.7% of its total average annual imports from the EU during 2009-11. Under the Agreement in 2013 Mauritius liberalized tariffs on an additional 35 lines for imports from the EU, corresponding to 0.6% of its imports from the EU during 2009-11. Further liberalization took place in 2017 (45 lines, corresponding to 0.5% of imports from the EU during 2009-11) and scheduled for 2022 (526 lines which accounted for 3% of Mauritius’ imports from the EU during 2009-11). Once the Agreement is fully implemented, Mauritius will maintain tariffs on 110 tariff lines (1.8% of the tariff), corresponding to 2.2% of its imports from the EU during 2009-11.
Seychelles started to implement its commitments under the Agreement in February 2013. In 2013 around 84.3% of its tariff (4,686 lines) were already duty free on an MFN basis and corresponded to 93.7% of Seychelles imports from the EU during 2010-2012. In 2013 tariffs on a further 180 lines were eliminated for imports from the EU, corresponding to 0.9% of imports from the EU during 2010-2012. Further liberalization took place in 2017 (88 lines), and is scheduled for 2022 (345 lines). At the end of implementation, Seychelles will maintain tariffs on 257 lines (4.63%) of the tariff, corresponding to 3.2% of its imports in 2010-2012 from the EU.
In 2012 Zimbabwe provided duty free access for 663 lines (10.8% of the tariff) on an MFN basis. This corresponded to 33.2% of its total average annual imports from the EU during 2014-2016. Under the Agreement Zimbabwe liberalized a further 37.7% of the tariff (2,307 lines) for the EU in 2012, corresponding to 20.5% of its imports from the EU during 2014-16. A further 2,284 tariff lines are due to be liberalized in 2022, following ten years of implementation, and corresponding to 30.1% of Zimbabwe’s imports from the EU during 2014-16. Once the Agreement is fully implemented, Zimbabwe will maintain duties on 14.2% of its tariffs (868 lines) for imports from the EU; these correspond to 16.2% of its imports from the EU in 2014-16.
Sector-Specific Provisions of the Agreement
Sugar
Under EU policy its customs duties on imports from the ESA States of products under HS 1701 were eliminated on 1 October 2009. Until that time and in addition to the tariff rate quota (TRQ) under the Sugar Protocol, a TRQ at zero duty of 75,000 metric tonnes was provided for the marketing year20 2008/09 for products under HS 1701, white sugar equivalent, from the ESA States. Import licences were to be granted for the additional TRQ only if the importer agreed to purchase the products at a price at least equal to the guaranteed prices fixed for sugar imported into the EU under the Sugar Protocol.
Under paragraph 5 of the Annex, the EU could during the period 1 October 2009-30 September 2015, raise import duties to the MFN rate for sugar imported in excess of a certain quantity from the ESA States which were deemed to cause a disturbance in the EU sugar market. The EU confirms it has never taken such a measure. UN recognized least developed countries will not be subject to these provisions but imports from these countries will nevertheless be subject to the safeguard clause under the Agreement. Any measure taken pursuant to paragraph 5 shall be notified and subject to periodic consultations in the EPA Committee. The EU indicates that the procedure ended on 30 September 2015. For the period from 1 October 2015, in applying the safeguard measures under Article 21 of the Agreement for products under HS 1701, disturbances in the market were deemed to arise if the EU market price of white sugar fell during two consecutive months below 80% of the EU market price during the previous marketing year. The EU indicates that such measures have never been applied.
Imports of products under HS 17049099, 18061030, 18061090, 21069059 and 21069098 from the ESA States were subject to a special surveillance mechanism from 1 January 2008 to 30 September 2015 to ensure that the arrangements described above were not circumvented. A cumulative increase in imports from the ESA States by over 20% in volume during 12 consecutive months compared to the average annual imports over the three previous 12 months, will be analysed by the EU and if it considers that there is circumvention, it could suspend preferential treatment and impose the MFN tariff. The EU indicates this has never happened. The conditions for granting an import licence for products under HS 1701 between 1 October 2009 and 30 September 2012 were that the importer had to purchase the products at a price not lower than 90% of the reference price set by the EU for the relevant marketing year. The reference price has been replaced by a reference “threshold” and is currently €404 per tonne.
Fisheries
Chapter III recognizes that fisheries constitute a key economic resource for the ESA region, make a significant contribution to the economies of the ESA States and have great potential for future regional economic development and poverty reduction. Fisheries are also an important source of food and foreign exchange. The Parties agree to cooperate for the sustainable development and management of the fisheries sector in their mutual interest, taking into account the economic, environmental and social impacts. They also agree that the appropriate strategy to promote economic growth is through increasing value added activities in the sector.
The objectives of economic cooperation, which covers marine and inland fisheries and aquaculture, are to promote sustainable development and management of fisheries; promote and develop regional and international trade based on best practices; create an enabling environment, including infrastructure and capacity building for the ESA States to cope with stringent market requirements for industrial and small scale fisheries; support national and regional policies aimed at increasing the sector’s productivity and competitiveness; and build links with other economic sectors.
Marine Fisheries
Economic cooperation aims to ensure the sustainable exploitation and management of fisheries resources as a strong basis for regional integration, given that fish species are shared among the ESA States and no individual State has the capacity to ensure sustainability of the resource; ensure more equitable benefit sharing from the sector; ensure effective monitoring control and surveillance (MCS) necessary for combating illegal, unreported and unregulated (IUU) fishing; and promote effective exploitation, conservation and management of living marine resources in the exclusive economic zone (EEZ) and waters in which the ESA States have jurisdiction under international instruments, for the mutual social and economic benefit of all the Parties. Cooperation will include fisheries management and conservation issues, vessel management and post-harvest arrangements and financial and trade measures and development of fisheries and fishery products and marine aquaculture. The EU will contribute to mobilizing resources for these areas of cooperation, including support for regional capacity building as well as areas identified in the section on financial and trade measures and infrastructure for fisheries and marine aquaculture.
Inland fisheries and aquaculture development
Cooperation aims to promote sustainable exploitation of sustainable exploitation of inland fisheries resources, enhance aquaculture production, remove supply side constraints, improve fish and fish product quality to meet SPS standards in the EU, improve market access to the EU, address intra-regional trade barriers, attract capital inflows and investment, build capacity and enhance access to financial support for private investors. The EU will contribute to capacity building and export market development; infrastructure and technology development; legal and regulatory support; investment and financial support; and socio-economic and poverty alleviation measures.
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2017 Annual and out-of-cycle AGOA eligibility reviews: Transcripts from the Public Hearings
The Trade Preferences Extension Act (TPEA) of 2015, which extended the AGOA trade preference program through 2025, requires that the Administration annually publish a Federal Register notice announcing the Country Eligibility Review and a request for public comment whether beneficiary sub-Saharan African countries are meeting AGOA’s eligibility requirements.
The TPEA also requires that the AGOA Subcommittee of the Trade Policy Staff Committee (TPSC) hold a public hearing to receive testimony regarding the eligibility of countries under AGOA. This was the purpose of the hearing on August 23, 2017, which was also announced in the Federal Register notice published on July 11, 2017.
On June 20, 2017, the Administration published a Federal Register notice announcing the initiation of an out-of-cycle review to determine whether Rwanda, Tanzania, and Uganda are meeting the AGOA eligibility requirements in response to a petition filed by the Secondary Materials and Recycled Textiles Association, or SMART.
Rwanda, Tanzania, and Uganda are also subject to the AGOA Annual Review, to determine whether they are meeting all of the AGOA eligibility requirements and not only those raised by SMART in its petition. The public hearing for the out-of-cycle review of the three countries was held on July 13, 2017.
Annual Review of the eligibility of the Sub-Saharan African countries to receive the 2018 benefits of the AGOA
Oral testimony by Ms. Celeste Drake, American Federation of Labor & Congress of Industrial Organizations (AFL-CIO)
I thank you for your consideration of the AFL-CIO’s petitions regarding Swaziland’s and Mauritania’s failure to establish or make continual progress toward establishing internationally recognized worker rights pursuant to Section 3701(1)(F) of the United States Code and for the opportunity to testify today.
We note that progress has been made in Swaziland since we initially filed our petition, including the registration of TUCOSWA, a union federation, the release of jailed union activists, and amendments to the labor law. This is very clear evidence that AGOA conditionality, once utilized, can play a very important role in ensuring respect for workers’ rights.
Additionally, after we filed our pre-hearing brief, Parliament passed and the King approved revisions to the Pubic Order Act and the Suppression of Terrorism Act.,
As to these laws, we understand that improvements were made that responded to some of the unions’ concerns. However, since neither the AFL-CIO nor our partners in Swaziland have had an opportunity to actually review the new legislation, we will reserve judgment on them until we can review them. We will provide our analysis on these laws in our post-hearing brief, and we may accordingly revisit our ultimate recommendation regarding the reinstatement of AGOA benefits for Swaziland.
Today, however, I would like to provide a brief update on Swazi laws and practices that remain inconsistent with internationally recognized worker rights.
In 2014, President Obama withdrew Swaziland’s AGOA eligibility because, despite extensive consultation and engagement, Swaziland had failed to demonstrate progress toward protecting freedom of association and the right to organize.
“Of particular concern,” wrote the United States Trade Representative’s Office at the time, was “Swaziland’s use of security forces and arbitrary arrests to stifle peaceful demonstrations.”
Unfortunately, despite other recent legislation, Swaziland’s Public Service Bill of 2015 remains out of compliance with international norms. The law continues to interfere with the right of working people to organize and act together to defend their interests, and the government had ignored TUCOSWA’s recommendations to fix it.
Moreover, the Government of Swaziland continues to brutalize workers and interfere with legitimate trade union activities. In April 2016, the police commissioner issued a statement urging the police to kill trade unionists on sight. This vicious directive cannot be dismissed as mere hyperbole given that the police have apparently taken the commissioner’s anti-worker attitude to heart.
In August and September of 2016, police attacked striking workers at Swaziland plantations, forcing 30 to seek medical treatment, including 8 who has suffered fractured bones. In October 2016, police assaulted union activist Samkelisiwe Gladys Matsebula. The assault included placing a plastic bag over her head, an act which under U.S. law would be treated as attempted murder, and it required her eventual hospitalization. Whether the police were actually trying to end her life or just trying to scare her into thinking so is immaterial. The terror inflicted is the same.
These events demonstrate an utter lack of respect for internationally recognized worker rights, not progress toward establishing them.
Further, it is clear and alarming evidence that the Code of Good Practice on Protest and Industrial Action is not yet being fully respected by the authorities. It is clear that frontline police forces are not appropriately informed, trained, or monitored for use of best practices.
Apart from perpetrating violence against working people, the Swazi government also continues to erect barriers to worker organization. In June 2016, the Commissioner of Labor interfered with the recognition of the Amalgamated Trade Unions of Swaziland by urging an employer, Swaziland Meat Industries, in writing not to recognize the union.
In April of this year, the commissioner doubled down on his effort by meeting with some ATUSWA members, urging them to leave ATUSWA in order to revive a now defunct union.
The government has also supported an apparently yellow union, FESWATU, in an apparent effort to weaken and marginalize TUCOSWA. The union, mostly active in the timber and textile sectors, has grown not by member organizing but largely through deals cut directly with employers.
The union’s publications make it clear that it supports the monarchy and will not cause problems for employers.
Regardless of your determination of AGOA benefits, we urge the U.S. government to continue engagement with Swaziland through monitoring and assistance as it has yet to demonstrate compliance with the rights to freedom of association and collective bargaining in practice.
Public Hearing to review the Republic of Rwanda’s, United Republic of Tanzania’s, and Republic of Uganda’s eligibility to receive the benefits of the AGOA
Introduction by Ms. Constance Hamilton, Assistant U.S. Trade Representative for African Affairs and Chair of the AGOA Implementation Subcommittee
On March 21, 2017, the Secondary Materials and Recycled Textiles Association, SMART, submitted a petition to USTR requesting an out-of-cycle review to determine whether Kenya, Rwanda, Tanzania, and Uganda are meeting the AGOA eligibility criteria.
The SMART petition asserts that a March 12, 2016 decision by the East African Community which includes these countries to phase in a ban on imports of used clothing and footwear is imposing significant economic hardship on the U.S. used clothing industry and is in violation of the AGOA eligibility criteria of making progress to establishing a market-based economy and eliminating barriers to U.S. trade and investment.
In response to the SMART petition, USTR determined that an out-of-cycle review of Kenya’s AGOA eligibility is not warranted at this time due to recent actions Kenya has taken, which include reversing tariff increases effective July 1, 2017, and committing not to ban imports of used clothing.
We will continue to closely monitor Kenya’s actions to ensure that Kenya follows through on its commitments.
With respect to Rwanda, Tanzania, and Uganda, USTR determined that there are exceptional circumstances warranting an out-of-cycle review of these countries’ AGOA eligibility, which is the subject of today’s hearing. Notably, despite robust engagement to address concerns related to the decision to phase in a ban on imports of used clothing since it was first proposed in 2015 and memorialized in 2016, Rwanda, Tanzania, and Uganda continue to implement the ban, which, as I have noted, SMART contends is having a negative impact on U.S. trade and investment.
In today’s testimony we will hear that the partner states of the East African Community are committed to the U.S.-EAC Trade and Investment Partnership, where matters such as those subject to today’s hearing should be discussed and resolved.
We agree. We note that these matters have been discussed at length within the context of the Trade and Investment Partnership and have not been resolved, which is why SMART filed its petition and why we are holding this hearing today.
This is the first petition received requesting an AGOA out-of-cycle review. This hearing is being held to gather information regarding the issues raised in the petition.
Oral testimony by Hon. Amelia Kyambadde, Minister of Trade, Industry and Cooperatives of Uganda and Chair of the Council of Ministers in EAC
As you are all aware, East African Community attaches great importance to the trade and investment relations with the U.S. as reflected in the Trade and Investment Framework Agreement and AGOA that we have been negotiating for some time.
The Trade and Investment Framework has been negotiated between U.S. and East Africa for some time, and we are in the final stages. And we are committed. We are pledged to continue nurturing these initiatives, including adhering to the objectives stipulated under those schemes which would lead to mutually beneficial, sustainable development outcomes for our country and also for U.S.
EAC is a regional economic community of 169 million people currently operating a common market with a harmonized trade regime. I would like to state our response to this petition.
The Community as a key holder wishes to state that industrialization is a strategic pillar of EAC integration. And that is why the heads of state decided that textiles and footwear manufacturing is a priority. The decision did not slap a ban on the importation of textiles but is an initiative to promote the textile and footwear industry while progressively phasing out used textiles on a gradual basis.
The common external tariff is compliant with the WTO requirements in regard to tariff binding, and the two trade policy reviews undertaken by the WTO in 2006 and 2012 fully endorsed the EAC trade regime as satisfactory and compatible with the World Trade Organization. The rate on used clothing was thereafter revised downwards to 35 percent or 0.20 dollars after realizing that the rise of the rate would negatively impact on the garment sector in the region.
It should be noted that the adoption of specific rate alternative, the ad valorem rate, was to address the challenges of valuation of used clothing. The review of the specific duty threshold from $0.20 to 0.40 per kilogram while maintaining the 35 percent was not a tariff increment but a realignment made after 11 years to reflect the realistic landing price of used clothing to be compatible with the ad valorem rate of 35 percent.
The review also covered chicken and rice. It is not only used clothing. Chicken and rice where the rates were revised from 100 percent to $200 per metric ton, to 100 percent or $450 per metric ton, and from 75 percent or 200 per metric ton, to 75 percent or $335 per metric ton respectively because we wanted to promote our industry. Other items such as cement, prime coats, and matchboxes were dropped from the sensitive list.
So it does not only apply to secondhand clothes. The sensitive rate on worn clothing is not discriminatory to imports from USA but applies to all imports of used clothing from all countries globally, globally. EAC is desirous of job creation that will arise from revamping its textile footwear manufacturing value chain and income growth of the people involved in cotton growing, ginning, weaving, garment manufacturing, leather tanning, shoemaking, and retail business. That’s the value chain. And all these are jobs. The fear of environmental impact caused by the discarding of used clothing in U.S. is equally concern of EAC since eventually the used clothes will also be discarded after use in the East African Community.
East African Community has export promotion schemes where tax incentives are accorded to manufacturers for export, particularly apparel and garments for AGOA. Development of the local textile industry do not undermine the market-based economy stipulated under AGOA as it will boost more production for export and local market that will see EAC countries enhance its export values to U.S.
East African Community countries import a range of goods from U.S., including capital goods, plants and machinery, agrochemicals, aircrafts and parts, petroleum equipment, and these products do not attract duty. It is a thriving business of the importation of new garments and apparel into East Africa from U.S. and businesswomen and other business communities. All EAC countries have established open market-based economies as provided in the treaty. The prohibition of importation of used undergarments in the EAC is for hygienic purposes, and we do not allow it. We have to ban those underwear.
A review is being undertaken of the tariff structure and rates to align it to the economic environment. This review would cover all products, including used clothing. Stakeholders are being consulted, including those involved in the trade of used clothing. The review will be completed in September 2017. But I must state that EAC is committed, fully committed to the ongoing trade and investment partnership where such matters should be discussed and resolved.
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tralac’s Daily News Selection
International trade statistics: Continued, albeit slower, G20 merchandise trade growth in Q2 2017 (OECD)
G20 international merchandise trade (seasonally adjusted and expressed in current US dollars), increased for the fifth consecutive quarter in the second quarter of 2017, though at a slower pace than over the previous three months. G20 export growth slowed to 1.4% in the second quarter of 2017, compared with 3.4% in the first quarter of 2017 while imports increased by 1.7%, down from last quarter’s 4.2%. G20 merchandise trade remains around 10% lower than recent highs in 2014. There were, however, significant divergences across regions.
Simon Freemantle: BRICS 2017 – poised for new relevance (Standard Bank)
For Africa, the rampant post-2000 momentum of trade growth with the BRICS has certainly ebbed. In 2016 total BRICS-Africa trade amounted to USD248bn, down from a peak of USD366bn in 2014. Notably, Africa’s exports to China have declined from a 2013 peak of USD113bn to USD55bn in 2016; while Brazil’s recent economic recession has precipitated a 70% decline in the value of its imports from Africa since 2013. However, though the BRICS heads of state will meet with these challenges in mind, there remains clear and growing space for the BRICS to continue to nurture the enthusiasm and developing world emphasis that their formation arose to represent.
First, the BRICS economies have likely reached a cyclical bottom in their respective economic cycles, with average growth of 3.2% expected this year. And the proportionate global relevance of the BRICS has continued to rise: between 2009 and 2016 the BRICS collective share of global GDP increased from16% to 22%. Over the past decade the BRICS have accounted for nearly 50% of the world’s GDP growth. Second, though trade values have declined, the BRICS are still a collectively profound trading partner for developing economies in general and Africa in particular. Recent declines in BRICS-Africa trade must be seen within the context of a far more profound drop-off in, for instance, US-Africa trade since 2012. [BRICS Think Tank Council: Realising the BRICS long-term goals – road-maps and pathways]
India-Tanzania Joint Trade Committee: highlights from the just-concluded Fourth Session (Ministry of Commerce, India)
It was mentioned that Tanzania is one of the most important countries in Africa in so far as India’s bilateral co-operation in various sectors is concerned. With an investment of $2.2bn, Tanzania is among the top 5 investment destinations for India. The Indian side conveyed to the Tanzanian side that the potential areas for Tanzania in India include light oils and petroleum or bituminous minerals, motor cars and vehicles, medicaments etc. Similarly, metals and minerals, dried cashew nuts in shells from Tanzania are required in India. During the discussions, it was mentioned that long-term (at least one year visas) for reputed business companies with multi-entry facility will be helpful to promote investments and business collaboration between the two countries.
41st World Tourism Conference: Do not ignore African tourists, they are the future – UNCTAD’s Mukhisa Kituyi (New Times)
“The fastest growing tourism is intra-African tourism. Movement of tourists from one African country to another. There are very many positive components about Intra-African tourism, one is that it is not seasonal. It is 12 months a year, conference tourism, medical tourism, educational tourism and business visit. This sustains the industry better than the occasional seasonal tourism,” he said. According to statistics from UNCTAD, tourists from the continent make up a total of 44% of the total visitors received in the continent and this is expected to grow to 50 per cent in coming years. “Intra-African tourism grew from 34% to 44% of the total number of tourists in Africa. The projections are that it will be above 50% in the next 10 years,” Dr Kituyi said. [President Paul Kagame’s speech, COMESA to launch a regional tourism handbook]
Malawi: Stakeholders take stock of Malawi’s economic performance (IMF)
The IMF and the Government of Malawi co-sponsored a high-level international stakeholders conference (28-30 August, Lilongwe) aimed at taking stock of the objectives and performance under the recently completed Extended Credit Facility, and the lessons for future engagement with the IMF. Participants agreed that the ECF program broadly achieved its macroeconomic policy stabilization objectives, including reducing inflation and increasing international reserves, but fell short on achieving sustained and inclusive growth.
US AGOA poultry exporters struggle with SA’s empowerment provisos (Business Day)
US poultry producers nearly reached their full 65,000 ton quota of exports to SA under the Africa Growth and Opportunity Act in the year to end-March. However the start to the current year had been slow, the president of the USA Poultry and Egg Export Council, James Sumner, said on Tuesday on the sidelines of the biggest bi-annual conference in Brazil for the poultry and pork industries. Sumner said the start to the 2017-18 year had been slow due to the delay and confusion in issuing import quotas. [Outgoing economic counsellor sees big ‘untapped’ US-SA economic potential]
Zimbabwe-SA trade deficit widens by 15% (NewsDay)
Data gathered from the Zimbabwe Statistical Agency shows that Zimbabwe exported goods worth $1,1bn to South Africa between January and July against imports of $1,3bn, giving a trade deficit of $131m. Last year in the same period, trade deficit between two countries stood at $114m, with imports standing at $1,1bn against exports of $1,03bn. In total, Zimbabwe’s trade deficit narrowed by 21% to $1,2bn in the period under review, after imports amounted to $3,1bn while exports trailed at $1,9bn. Some of Zimbabwe’s major export markets in the period under review were Mozambique ($226m), United Arab Emirates ($85m), Zambia ($40m), Kenya ($16m) and Belgium ($13m). The country’s major import markets in the period under review were Singapore ($706m), China ($306m), Mozambique ($75m), Japan ($70m), India ($60m) and Mauritius ($59m).
Zimbabwe: Trade in Services (foreign affiliates statistics) report 2015 (pdf, ZimStat)
The Zimbabwe National Statistics Agency conducted the second Trade in Services (Foreign Affiliates Statistics) Survey in Zimbabwe in 2016. The survey collected data for the year 2015. The statistics on foreign affiliates largely could be used to monitor globalization and its impact on the national economy. The purpose and main objective of the survey was to establish the supply of services into Zimbabwe by foreign affiliates as well as to assess the economic effects of the operations of these affiliates. The statistical units covered in the survey were enterprises in Zimbabwe under foreign control. Selected findings: (i) The total turnover recorded by foreign affiliates in 2015 was $3.5bn. Foreign affiliates trading in services recorded a total turnover of $1.7bn in 2015. (ii) Gross output of foreign affiliates in the year 2015 amounted to $3.8bn. The gross output of foreign affiliates trading in services in 2015 was $2.1bn. (iii) Total value added from foreign affiliates amounted to $2.9bn in 2015. Total value added from foreign affiliates trading in services amounted to $1.7bn in 2015. [Companion report: Foreign private capital survey report 2015]
DRC temporarily bans import of key consumer goods (News24)
Authorities have banned imports of several popular consumer products in the west of the DRC for six months to fight smuggling, Trade Minister Jean-Lucien Busa said on Monday. “We have decided on the temporary restriction of imports in the western part of the country for six months of grey cement, sugar, beer and fizzy drinks in order to put an end to fraud and contraband,” Busa told AFP. The measure was also aimed at “protecting local industry in a crucial period of growth that risks being undermined by those who practice prices below production costs”, the minister said, stressing that he had not “turned to protectionism”.
Mozambican government should be transparent before creating sovereign fund – economist (Club of Mozambique)
Mozambican economist Tomas Selemane says that the Mozambican government must ensure transparency and accountability in its management of public resources before creating a sovereign fund with natural resource revenues. “I support the idea of creating a sovereign fund, but I would like to draw attention to the fundamental problems that need to be solved first: corruption, lack of transparency and the lack of reliable mechanisms for accounting for national assets in terms of mineral resources,” Selemane said. According to Selemane, a sovereign fund would be useless in a context where state resources are managed in an opaque manner and with impunity for the perpetrators of corruption.
Botswana: Government moots one-stop-shop for transport projects (Mmegi)
The Ministry of Transport and Communications is in the process of developing an integrated national transport policy that will unify all transport-related projects in the country. Director of Transport Planning and Policy, Orapeleng Mosigi said the policy is expected to be launched some time next year.
Modal choice between rail and road transportation: evidence from Tanzania (World Bank)
With firm-level data, this paper examines shippers’ modal choice in Tanzania. The paper shows that rail prices and shipping distance and volume are important determinants of firms’ mode choice. The analysis also finds that the firms’ modal choice depends on the type of transactions. Rail transport is more often used for international trading purposes. Exporters and importers are key customers for restoring rail freight operations. Rail operating speed does not seem to have an unambiguous effect on firms’ modal selection. [Companion paper: Rail transport and firm productivity: evidence from Tanzania (pdf)]
Concession model in question as RVR hands back assets (Business Daily)
A number of pressing questions still linger as Kenya joins the list of African states whose train concessions deals have failed after a complete take-back of its assets from the Rift Valley Railways tomorrow. Key to these is the probity of loans borrowed from international financial institutions, which include the World Bank and the AfDB. But first, the story of RVR’s sojourn in Kenya. [Kenya: New railway line expected to boost business and tourism in four counties]
Western, Central Africa regions move ahead on digital customs, e-commerce (WCO)
36 representatives from 20 Customs administrations of the region, Regional Intelligence Liaison Offices of Western Africa (Senegal) and Central Africa (Cameroon), African Alliance for E-Commerce, Express Industry and IT providers participated in the workshop. There was a clear emphasis towards moving to a paperless Single Window environment and eventually having an interconnectivity/interoperability of Customs IT systems/Single Windows for an efficient exchange of information (e.g., e-certificate of origin and e-phytosanitary certificate). The capture and use of new data sources from all economic operators in the E-Commerce supply chain for integrated risk management as a whole government approach was equally explored as a potential way forward. Being the first of its kind in the Region, the Workshop was very well received by participants and raised a lot of interest and robust discussions.
Today’s Quick Links: Maputo International Trade Fair: (i) Botswana looks to boost exports to Mozambique; (ii) Portugal highlights importance of security in Mozambique business environment Conference alerts: African Green Revolution Forum (4-8 September, Abidjan), Brazil-Africa Forum (23-24 November, Sao Paulo) Ethiopian Airlines to fly to Sao Paulo nonstop WTO chief says Brazil actively trying to lift restrictions on meat trade |
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Sustainable tourism – A tool for development and poverty eradication
Today, tourism generates 10% of the world’s GDP, one in every 10 jobs, and 30% of world trade in services. It is key to many countries’ economies and livelihoods.
The United Nations General Assembly has designated 2017 as the International Year of Sustainable Tourism for Development, underscoring its power to help eradicate poverty.
Tourism is also singled out in three of the 17 Sustainable Development Goals – part of an ambitious global plan adopted by the international community in 2015 that is setting the tone for development through to 2030. Specifically, tourism is tied to the goals on sustainable economic growth and decent employment, sustainable production and consumption, as well as the conservation and sustainable use of oceans.
The issue of how to link tourism and sustainable development is in focus this week at the 41st Annual World Tourism Summit. Hosted by Rwanda, one of East Africa’s premier tourism destinations, the international meeting runs from Monday to Thursday at the Kigali Conference Centre.
Organised by the Corporate Council on Africa and Africa Travel Association in collaboration with the Rwanda Development Board, the summit brings together African leaders, international investors and travel professionals from across the world to explore how tourism can spur economic growth and job creation across the continent.
The high-level conference will focus on innovative business models, new technologies and strategic partnerships in Africa and globally. It will also provide a platform to network and explore new tourism markets and products, including the promotion and preservation of Africa’s rich cultural heritage and wildlife.
“This is a great opportunity to present and review tourism on the continent. The sector’s growth presents enormous economic opportunities that spread throughout societies,” said UNCTAD Secretary General Mukhisa Kituyi.
“Africa’s tourism industry continues to flourish and supports more than 21 million jobs and, for the developing countries, tourism is a enormous tool for sustainable development,” added Dr. Kituyi.
UNCTAD’s Economic Development in Africa Report 2017: Tourism for Transformative and Inclusive Growth, examined the role that tourism can play in Africa’s development process. The report, released last month, concluded that tourism can be an engine for inclusive growth and a complement to development strategies aimed at fostering economic diversification and structural transformation within an appropriate policy context.
African tourists emerge as powerhouse for tourism on the continent, says UNCTAD report
“Tourism’s impact on the economic and social development of African countries can be huge. We must manage tourism properly in order to enjoy its fruits without leaving anyone behind,” said Dr. Kituyi. “To succeed, we must put in place adequate policies, forge public-private partnerships, ensure free movement as well as peace and security”.
Rwanda remains one of the world’s fastest-growing tourist destinations, second only to Southeast Asia, and recorded tourism revenue of more than US$400 million in 2016, up from US$370 million in 2015.
“Sustainable tourism must ensure viable, long-term economic operations, providing benefits that are distributed fairly among all stakeholders,” said Dr. Kituyi
On the sidelines of the summit, organisers in partnership with Facebook and Dignify Africa will be delivering training sessions to small and medium enterprises on how to leverage digital tools to grow their businesses.
Address by President Paul Kagame at the 41st World Tourism Conference
I would like to thank the Corporate Council on Africa, through the Africa Travel Association, together with the Rwanda Development Board, for organising this 41st World Tourism Conference.
Rwanda, like other countries on our continent, is keen to convert our favourable demographics into economic growth and prosperity.
The services sector, in particular tourism, provides some of the best employment opportunities for our citizens, and attractive careers for young people.
Already, this sector is Rwanda’s biggest foreign exchange earner, Clare gave the figures, but we can and need to do better. Harnessing the full potential of the tourism industry will require continued focus and investment on several fronts.
First, the efforts we are making in strengthening good governance and mobilising our population, enables us to properly manage both the environment that supports tourist attractions, as well as the revenue they generate.
Rwandans, especially those living around national parks and other attractions, have become indispensable to conservation.
This is because they understand the value of our natural resources, and benefit directly from higher incomes and community projects financed by park revenues.
The responsibility of government, and other players in the industry, is to continuously provide quality education and training, so that Rwandans can fully participate as professionals in tourism and associated sectors.
Second, we are investing heavily in services and infrastructure to support the development of the sector.
Our national carrier RwandAir continues to expand to destinations within Africa and beyond, and will soon have a more modern, efficient base when the new airport in Bugesera is completed.
We are also working to improve the road network and attract investments in conference and hotel facilities, such as this convention centre we are in today.
Third, we must take full advantage of new technology, particularly innovative digital platforms, to attract more visitors, offer new experiences, and provide better services.
I am happy to learn that several technology companies are represented here today. We look forward to partnering with you to take the industry to the next level.
As we work with the private sector to develop the tourism industry in Rwanda, we also want to strengthen collaboration within our region and across the continent.
The single tourist visa and passport-free travel between Kenya, Rwanda and Uganda, is already a reality. So is visa on arrival in Rwanda for all African nationals. We heard your concerns, Dr Kituyi, and here in Rwanda we have no such problems.
But we need even more cooperation on the continent, in order to increase the numbers of visitors, as well as facilitate trade and investment. Implementing existing agreements on open skies, and easing visa restrictions, are steps in the right direction.
I trust that you will discuss these and other pertinent issues during this conference. We look forward to working with you on solutions to advance tourism in Africa and beyond.
Source: Paul Kagame
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International trade statistics: trends in second quarter 2017
Continued, albeit slower, G20 merchandise trade growth in Q2 2017
G20 international merchandise trade, seasonally adjusted and expressed in current US dollars, increased for the fifth consecutive quarter in the second quarter of 2017, though at a slower pace than over the previous three months.
G20 export growth slowed to 1.4% in the second quarter of 2017, compared with 3.4% in the first quarter of 2017 while imports increased by 1.7%, down from last quarter’s 4.2%. G20 merchandise trade remains around 10% lower than recent highs in 2014.
There were, however, significant divergences across regions. Within the euro area, export and import growth picked up to 6.8% and 2.9% respectively in France, to 5.1% and 4.8% in Germany and to 5.3% and 4.5% in Italy. Exports also grew by 3.4% in the United Kingdom (slightly down on the previous quarter’s 3.6%) and picked up strongly in Turkey to 4.4%.
In North America, merchandise trade growth was negligible in the United States and slowed in Mexico and Canada. In South American G20 economies, exports fell significantly in Argentina (‑10.2%) and Brazil (‑5.1%, with imports also falling by ‑6.8%).
Exports also contracted significantly in Australia (‑4.8%), India (‑6.5%) and Indonesia (-3.0%). Export growth slowed in China, Japan and, albeit only slightly, Korea. Import growth in Korea slowed significantly (to 0.7%, compared with 8.2% in the previous quarter) and was negative in China (‑3.3%) and Indonesia (‑4.1%).
Exports contracted by over 20% in Saudi Arabia and by nearly 6% in Russia, partly reflecting a 5% fall in oil prices.
All G20 economies, except Argentina, Australia, Brazil and Canada, saw their currencies appreciate against the US dollar in Q2 2017.
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Rail and road transportation and firm productivity: Evidence from Tanzania
Modal choice between rail and road transportation
Rail transport generally has the advantage for large-volume long-haul freight operations. The literature generally shows that shipping distance, costs, and reliability are among the most important determinants of people’s modal choice among road, rail, air, and coastal shipping transport. However, there is little evidence in Africa, although the region historically possesses significant rail assets.
Currently, Africa’s rail transport faces intense competition against truck transportation. With firm-level data, this paper examines shippers’ modal choice in Tanzania. The traditional multinomial logit and McFadden’s choice models were estimated. The paper shows that rail prices and shipping distance and volume are important determinants of firms’ mode choice.
The analysis also finds that the firms’ modal choice depends on the type of transactions. Rail transport is more often used for international trading purposes. Exporters and importers are key customers for restoring rail freight operations. Rail operating speed does not seem to have an unambiguous effect on firms’ modal selection.
Recent developments in transport infrastructure in Tanzania
Tanzania is a large country with a land area of 885,800 km2, where more than 55 million people live. Intercity connectivity is critical for the economy. While Dar es Salaam is the primary city, with an estimated population of 5.4 million, other secondary cities are also growing, such as Mwanza, Arusha, Dodoma, Morogoro and Mbeya. Each city is estimated to have a population close to 500,000. A number of firms are located in secondary cities and other small towns. According to the Central Register of Establishments, about 45,000 enterprises were formally registered by 2010.
The firm concentration in Dar es Salaam seems to be accelerating. About 2,300 firms were newly created or formally registered in the three districts in Dar es Salaam in 2010 alone. Dar es Salaam accounts for about 25 percent of the total firms registered. Long distance transportation is of particular importance for firms located in inland areas to connect Dar es Salaam. Port access is also critical for many businesses that engage in international trading. Tanzania traditionally exports mining and agricultural products. The country also imports a lot of goods and equipment from abroad. The Port of Dar es Salaam is one of the largest hub ports in the region, which handled about 10.4 million tons in 2011, 13.1 million tons in 2013 and 15 million tons in 2015.
Tanzania has a relatively well developed road network composed of over 86,000 km of roads. The government spends approximately US$310 million for road development and maintenance every year. Regional and trunk roads managed by a national road agency, Tanzania National Roads Agency (TANROADS), are generally well-maintained. About 12,000 km of roads are paved, of which half or 55 percent are maintained in good or fair condition. On the other hand, most rural roads remain unpaved, and nearly 90 percent are in poor or very poor condition.
Rail transport has the general advantage of long-haul freight transport. Tanzania has about 3,557 km of rail lines, which are operated by two rail companies: Tanzania Railways Limited (TRL) and Tanzania Zambia Railway Authority (TAZARA). The TRL lines were constructed during the colonial era in the early 20th century. The current TRL was established as a parastatal company jointly owned by Reli Assets Holding Company (RAHCO) on behalf of the Government of Tanzania (49 percent) and an Indian private operator RITES (51 percent) in 2007. However, the anticipated increase in performance under RITES management did not materialize. Since the completion of negotiations in 2011, the company has fully been owned by the government.
The TRL network extends more than 2,500 km, connecting Dar es Salaam and large inland cities, such as Mwanza, Kigoma and Arusha. These inland areas are more than 1,000 km away from the coast. Historically, rail transport has been playing an important role to provide affordable access to the global market to Tanzania, which is a large country with a land area of about 900,000 km2.
TAZARA is another major binational rail network connecting Dar es Salaam to Mbeya and New Mposhi in Zambia. TAZARA extends 1,860 km, with 975 km in Tanzania and 885 km in Zambia. TAZARA is a statutory body jointly owned by the two governments on 50:50 basis. Other neighboring countries, such as Malawi and Southern Democratic Republic of Congo, which are practically landlocked in the region, are also benefiting from the TAZARA lines. The network is relatively new compared to the TRL lines. TAZARA was constructed in the 1970s. However, the rail infrastructure has already been in poor condition because of lack of proper maintenance. Recently, the two governments have agreed to take up responsibility of funding infrastructure maintenance, locomotives and wagons.
Given the deterioration of the service quality as well as the improvement of road infrastructure along the regional corridors, the current freight volume hauled by the TRL represents only 13 percent of the peak demand in the early 2000s. Similarly, the traffic on TAZARA is only about 15 percent of its peak demand during the early 1990s. Despite the deteriorated service quality, some businesses and shippers are still using rail transport, mainly because of low relative costs compared with road transport. Rail tariffs have increased in U.S. dollar terms in recent years but are still lower than truck road user costs in Tanzania, which are US$0.05 to US$0.12 per ton-km, depending on road surface and condition.
Firms located in inland areas of central and western Tanzania may have an incentive to rely on rail transportation because it is cheap despite distance. Based on the network analysis in which unit road user costs and average rail tariffs are assumed, transport costs of moving one ton of goods to Dar es Salaam are estimated at about US$91 per ton from Mwanza and US$95 per ton from Kigoma, respectively. Rail transport presumably has the advantage to connect those areas from the cost perspective.
The advantage of rail freight is considered to be attributed fundamentally to the fact that unit rail tariffs are often set lower when the shipping distance is longer. For instance, the TRL tariff for general goods is TSh1.5 million per large wagon for the first 100 km, which translates into about 61 U.S. cents per ton-km. But when the shipping distance is greater than 500 km, the tariff is TSh2.6 million per wagon, which is equivalent to about 11 U.S. cents per ton-km.
Such a pricing strategy is rational because loading and unloading goods from rail wagons incur significant fixed costs, especially when transported goods are uncontainerized bulk cargo. Waiting times that are required for each train to have sufficient wagons to carry may also add additional economic costs to shippers. Because of these fixed costs, short-haul rail shipping tends to be relatively expensive, and long-haul bulk shippers are more induced to use rail transportation. Although no detailed data are available, most rail cargo are large volumes, such as minerals, cement, agricultural products and fertilizer.
Rail transport and firm productivity
Railway transport generally has the advantage for large-volume, long-haul freight operations. Africa possesses significant railway assets. However, many rail lines are currently not operational because of the lack of maintenance.
This paper recasts light on the impact of rail transportation on firm productivity, using micro data collected in Tanzania. To avoid the endogeneity problem, the instrumental variable technique is used to estimate the impact of rail transport.
The paper shows that the overall impact of rail use on firm costs is significant despite that the rail unit rates are set lower when the shipping distance is longer. Rail transport is a cost-effective option for firms. However, the study finds that firms’ inventory is costly. This is a disadvantage of using rail transport. Rail operations are unreliable, adding more inventory costs to firms. This indicates the rail users’ sensitivity to prices as well as severity of modal competition against truck transportation.
The study also finds that firm location matters to the decision to use rail services. Proximity to rail infrastructure is important for firms to take advantage of rail benefits.
These working papers are a product of the Transport and ICT Global Practice Group at The World Bank. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors.
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Western and Central Africa region moves ahead on digital customs and e-commerce
The World Customs Organisation (WCO) with support from the Customs Cooperation Fund (CCF) Japan and Burkina Faso Customs Administration organized a Regional Workshop on Digital Customs and E-Commerce from 21 to 24 August 2017 at the Regional Training Centre in Ouagadougou, Burkina Faso.
Thirty-six representatives from 20 Customs administrations of the Region (Benin, Burkina Faso, Cameroon, Cape Verde, Central African Republic, Congo (Democratic Republic), Congo (Republic of), Côte d’Ivoire, Gabon, Gambia, Ghana, Guinea Conakry, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone, and Togo), Regional Intelligence Liaison Offices (RILOs) of Western Africa (Senegal) and Central Africa (Cameroon), African Alliance for E-Commerce (AAEC), Express Industry and IT providers participated in the Workshop.
Inaugurating the Workshop, Mr. Adama SAWADOGO, Director General, Burkina Faso said that information and communication technology (ICT) is becoming omnipresent, impacting every walk of life including the international supply chain and regulatory processes. He underscored the need of finding innovative solutions through the maximum use of ICT to address new and emerging challenges in terms of facilitating seamless movement of goods, people, and conveyances across borders, while strengthening risk management and control.
Noting some of the challenges and opportunities presented by growing E-Commerce, the Director General called for exploring ways and enhancing related capabilities to capture all commercial activities on the Internet. Thanking the WCO, he encouraged participants to share knowledge and enhance regional capacity on these issues.
The Experts from the WCO provided detailed information and explanations on Digital Customs and its various facets, in particular the implementation / consolidation of electronic services, Single Window and harmonization of data and messaging standards in accordance with the WCO Data Model. The Experts also made detailed presentations on cross-border E-Commerce, including the related opportunities and challenges together with potential solutions. All the relevant WCO tools and instruments, country examples, case studies and the WCO’s ongoing and envisaged work in these areas were explained and their use in national and regional context was discussed in great detail.
Representatives from Mali, Cameroon, Senegal, and Nigeria shared their respective national experiences and initiatives on ICT implementation, IT project management, use of WCO Data Model, and E-Commerce. In addition, the representative of Côte d’Ivoire provided a detailed account of work being done by the ‘Regional Working Group on Digital Customs’ (a group of 23 countries), and the representative of African Alliance for E-Commerce (AAEC) presented their work in the area of Single Window implementation (including ongoing pilots on the exchange of e-certificate of origin) and E-Commerce.
Throughout the Workshop, the participants raised several questions and shared practical experiences / best practices relating to the implementation various ICT solutions and E-Commerce as well as national experiences and initiatives concerning effective risk management and efficient revenue collection on increasing low-value shipments. Additionally, the accession / ratification and the harmonized implementation of the WCO Revised Kyoto Convention (RKC), the WCO Immediate Release Guidelines, and the WTO Agreement on Trade Facilitation (TFA) were discussed in the context of consolidating ICT implementation and supporting E-Commerce flows.
There was a clear emphasis towards moving to a paperless Single Window environment and eventually having an interconnectivity/interoperability of Customs IT systems / Single Windows for an efficient exchange of information (e.g., e-certificate of origin and e-phytosanitary certificate). The capture and use of new data sources from all economic operators in the E-Commerce supply chain for integrated risk management as a whole government approach was equally explored as a potential way forward.
A representative from the Express Industry (DHL) shared their perspective, in particular how they were adapting to the growing E-Commerce environment. Several opportunities in terms of leveraging respective control and compliance mechanisms of express service providers and postal operators in improving compliance and strengthening risk management together with related working experiences were discussed.
Being the first of its kind in the Region, the Workshop was very well received by participants and raised a lot of interest and robust discussions. Participants acquired an enhanced understanding of issues relating to Digital Customs and cross-border E-Commerce as well as relevant WCO instruments and tools in terms of their effective and harmonized implementation at the national/regional level. Furthermore, they learned how the different WCO instruments and tools could support the facilitation of low-value shipments whilst ensuring effective revenue collection and supply chain security.
The workshop also enabled the participants in developing a broad strategy going forward, which inter alia included adoption of a risk-based approach based on advance electronic data (from E-commerce stakeholders such as Posts, express service providers, e-platforms / marketplaces); the implementation / enhancement of ICT in close coordination with other government agencies and private sector stakeholders leading to a paperless single window environment; and the development of IT and data analytics capabilities including internet monitoring.
Additionally, the Workshop provided participants with a good opportunity to establish networks with other Customs administration of the Region through an enhanced understanding of issues of mutual interest at the regional level. The WCO will continue to provide all necessary support and technical assistance, based on national and regional needs in the future.