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EAC States unveil plan to monitor food output
Three East African countries will now be able to monitor food situation simultaneously online in an effort to tackle shortages.
The launch of the East African Community (EAC) RegionSTAT database is the culmination of a meeting by the Heads of States of the five East African countries to come up with a food action plan that will see the effects of drought and hunger minimised.
The monitoring system is also an attempt to deal a body blow to the perennial problem of hunger.
During the launch of the database in Nairobi on Friday, East African Community PS, Mr John Konchellah, said the plan would ensure that all the five countries can ably handle food crisis together.
“Articles 105-110 of the EAC Treaty provide for the basic elements for the partner states to objectively cooperate for the achievement of rational agricultural production and food security,” he said during official launch of the database.
Mr Konchellah said food insecurity in the region was marked by inadequate trade in produce such as maize, which is a staple food, between countries where there were bumper harvests and those grappling with deficits.
Quite often, agricultural production has been affected by drought and climate change, making the food situation across the member states worse, he said.
COMMON POLICY
The PS said the aim of the five countries – Kenya, Uganda, Tanzania, Burundi and Rwanda – which have all often been hit by drought and famine, was to come up with a common agricultural policy, ensure there was regional food sufficiency, increased agricultural production and enhance trade within and outside the region.
He said Presidents from the region, in a previous EAC Heads of Sates summit had deliberated on formulation of a regional food action plan, for which timely and reliable agricultural information was considered a critical element in achievement of food security.
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Women in Rwanda make remarkable advances thanks to inclusive policies, UNCTAD study finds
Rwanda is a leading example of the successful integration of gender considerations in a country’s legislation and development framework, a new UNCTAD study has found, leading to remarkable advances in the status of Rwandan women and girls.
A new UNCTAD study, Who is Benefiting from Trade Liberalization in Rwanda? A Gender Perspective, attempts to assess the impacts of Rwanda’s trade policies on women and examines their role in the country’s economy.
The report found that Rwanda has acknowledged the importance of gender equality and women’s empowerment as tools for development and has made remarkable advances in furthering the status of women and girls - especially in education and political participation.
However, women’s ability to fully benefit from the country’s recent economic expansion remains impinged by factors such as gender-based cultural norms and women’s limited access to economic assets and resources.
By looking at the direct effects of exports on women’s employment structure as well as the effects of imports on women’s consumption patterns and government spending (“revenue effect”), UNCTAD’s analysis shows that men and women are not benefitting equally in the gains from trade.
The study finds that women are crowded into subsistence-oriented staple agriculture and tend to be segregated into less-dynamic, contracting sectors of the economy – by and large those that are informal and non-tradable. On the one hand this means they remain relatively insulated from the potential threats of trade, including food-price fluctuations, but on the other from its direct benefits.
The Rwanda case study underlines the need for policies that correlate more tightly the creation of jobs for women with the economic and trade performance of the country.
It points to issues that may negatively impact women if they are not taken into account, specifically:
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the intensification of export-oriented agricultural segments, particularly export cash crops such as tea and coffee, may mainly favour commercially-oriented farmers and crowd out small and marginal farmers – who tend to be women;
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the modernization of the domestic-oriented staple food production may hamper women’s ability to integrate efficiently into upgraded supply chains if constraints on them, in terms of their capabilities and access to productive resources, are not addressed.
However, Rwandan women may well benefit from the country’s trade and economic expansion, the study found. So that they might, the study explores a set of policy measures that the government of Rwanda may wish to consider in order to stimulate those sectors in which women are typically concentrated, as well as to increase women’s participation in expanding and commercially-oriented sectors of the economy.
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Tripartite Free Trade Area within sight
COMESA is in the final stages of preparations for the Tripartite Summit, which is scheduled to take place on 19-20 December 2014. The summit is expected to launch the COMESA-EAC-SADC Tripartite Free Trade Area (TFTA) thus heralding the culmination of intense negotiations that have been going on for the last six years.
The negotiations on the technical frameworks for the establishment of a mega free trade area will bring together the 26 Member States in one market.
The launch of a regional free trade area has remained a moving target since 2011 when the Summit adopted the tripartite agreement. According to the road map approved by the Tripartite Summit of Heads of State and Government in June 2011 in Johannesburg, South Africa, the Tripartite FTA should have been launched in June 2014. However, this deadline was missed owing to several factors key among them lack of funding after Trademark Southern Africa, which had been financially supporting these negotiations, closed down.
The other major sticking points that have slowed down the implementation of the TFTA were lack of agreements on substantive issues. These include negotiations on the rules of origin, trade remedies and dispute settlement, customs co-operation, documentation procedures and transit instruments.
In June this year COMESA assumed the chairmanship of the tripartite and with it came new energy to deliver the TFTA before the year ends. A flurry of meetings have since taken place between the Three Technical Working Groups with the objective of finalizing the outstanding work before the launch of Tripartite FTA Agreement on trade in goods.
The launch of the tripartite in December will no doubt bring tremendous benefits for the 600 million people in the tripartite region, through the removal of inconsistencies and costs in regional integration brought about by overlapping memberships especially in the area of trade policy and trade facilitation.
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Far greater effort needed to eradicate extreme poverty in world’s poorest nations – UN report
While the world’s 48 most vulnerable nations continue to make in-roads into poverty reduction, a far greater effort is needed if these countries are to eradicate extreme poverty by 2020, according to a new report launched at the United Nations on 23 October 2014.
The study conducted by the UN Office for Least Developed Countries, Landlocked Developing Countries, and Small Island Developing States (UN-OHRLLS) noted that since the adoption of the 2011 Istanbul Programme of Action on their on their sustainable development, least developed countries (LDCs) have seen incremental economic and social gains.
This is mainly because of an increase in public spending and stronger investment and activity in mining, construction, manufacturing and service sectors.
The report however cautions that despite the uptick, the LDCs continue to be among the most vulnerable to external shocks, such as economic crises, climate-related events, natural disasters and health-related threats.
The recent outbreak of Ebola, which is concentrated in 3 least developed countries (Guinea, Liberia and Sierra Leone), highlights the importance of comprehensively addressing structural vulnerability, requiring joint efforts by such vulnerable countries and their development partners.
It also underscores that deepening inequality threatens to exacerbate existing poverty with implications for political and social stability in these countries.
The study identifies four main determinants of the reduction of extreme poverty in the LDCs: gender inequality, institutional frameworks, infrastructure development and service delivery, and external factors.
The authors encourage leadership at the national level to implement policies that improve service delivery, address gender inequality and enable the poor to acquire investment assets that can improve their future income. Women and girls are especially in need of better access to economic opportunities through vocational and managerial skills training.
At a Headquarters press briefing today launching the report, Gyan Chandra Acharya, High Representative and head of UN-OHRLLS said the survey noted that since the 2011 Istanbul conference, progress of LDC’s on many of the goals and targets has been “mixed.”
While some countries had seen improvements in human and social development – in particular in education, health and youth development – others remained mired in extreme poverty. During the same period, official development assistance (ODA) from partner countries had “volatile.”
Given extreme vulnerability and high-levels of poverty within these countries, the UN was recommending that their needs remain of particular concern, he said, adding: “There is still a long way for these countries to go, even to catch up with other developing countries, not to mention [developed nations].”
Among its other highlights, the report argues, greater access to land, technology and finance are integral to boost growth in the LDCs and reduce inequality. “The effectiveness of all policies, in their formulation and implementation, critically depends on sound national institutions,” the report notes.
The study further recommends that governments ensure that efforts to increase domestic revenue are designed in ways that curb inequality. In order to increase public resource mobilization, fiscal policies need to promote public investment that is sustainable, it says.
While governments are encouraged to take the lead on national development, the report highlights the importance of development partners in supporting the LDCs. “Actions by LDC development partners on trade, official development assistance (ODA), and other forms of external finance, including foreign direct investment, and technology transfer and acquisition will determine progress in ending poverty to a large degree,” the report says.
It adds that the UN Secretary-General’s proposal for a technology bank and an international investment support centre for the LDCs could play an important role in upgrading productive capacity, and leveraging the growth and poverty eradication effects of technology transfer and foreign direct investment inflows.
The report concludes by calling for greater attention to be paid to eradicating extreme poverty in the LDCs within the on-going post-2015 development agenda, especially since most of these countries will miss most of the Millennium Development Goals (MDGs).
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Mauritius to put Trade Obstacles Alert Mechanism in place to ease business
Mauritius is planning to put in place a Trade Obstacles Alert Mechanism, to help businesses successfully overcome any obstacles they may face in the course of trading activities.
The Mechanism, which is to be operated using the existing Mauritius Trade Portal platform, is expected to be used by the corporate community to report obstacles which they may encounter during trade transactions.
The Trade Obstacles Alert Mechanism will have as its objectives the identification and elimination of trade barriers; enhancing transparency in decision-making processes; improving public-private sector dialogue and promoting inter-agency exchanges.
This advanced mechanism to ease business has been introduced to relevant stakeholders during a national workshop on 16th October 2014, at the Labourdonnais Waterfront Hotel in Port Louis.
The one-day workshop was organised by the Ministry of Foreign Affairs, Regional Integration and International Trade, in collaboration with the International Trade Centre.
It aims to bring together some 45 representatives from various ministries and institutions, as well as from the private sector.
This new project on the Trade Obstacle Alert Mechanism is an extension of the ITC project for Mauritius on Non-Tariff Barriers which was based on a survey of operators in 2012.
It involves, firstly, the setting up of a National Monitoring Committee to ensure its smooth functioning; and secondly, the setting up of a National Focal Point that would administer the online tool, receive and scrutinise the obstacles, channel them to the required government agency and follow up with them for resolution of reported obstacles.
Once reported, these barriers would be channeled to the relevant government agencies such as Customs, Ministry of Industry, Commerce and Consumer Protection, Ministry of Agro-Industry and Food Security and Ministry of Health and Quality of Life, among others, to find solutions, where required.
Last year, a state-of-the-art trade portal, which aimed to provide maximum information to the business community and to the public at large relating to import and export procedures in Mauritius, was launched on 6 August 2013.
This portal, called the Mauritius Trade Easy, also aims to provide information on opportunities that exist on the regional and international markets under the different agreements signed by the island economy.
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Nigeria cocoa processors face cost barriers to EU exports
Nigerian cocoa-processing companies say the cost of exporting their products to Europe has been inflated by 30 percent because of a stalemate in agreeing new trade terms with the European Union, reports Bloomberg.
Nigerian cocoa butter and cake exports are charged from 4.2 percent to 6.1 percent of freight-on-board values as taxes at EU ports without an agreement, Felix Oladunjoye, executive secretary of the Cocoa Processors Association of Nigeria said in a phone interview on Wednesday from Lagos. Nigeria is the only country in West Africa yet to sign the Economic Partnership Agreement protocol on free trade by the EU and African, Caribbean and Pacific countries, he said.
“It makes Nigeria-origin cocoa butter and cake less competitive in the international market,” Oladunjoye said. “It is a direct loss of revenue to the local processing industry.”
Apart from having to export at a cost disadvantage, many of them are burdened by unserviced debts estimated collectively at about N40 billion ($241 million), preventing new credit lines from banks, according to Akin Olusuyi, managing director of Ile-Oluji Cocoa Products Ltd. and vice president of Copan.
Eight processing companies located in the main cocoa-growing region in the South West have a combined installed capacity of 155,000 metric tons a year. Since 2011 they’ve run at 25 percent to 27 percent of installed capacity, according to Oladunjoye.
Nigeria is the world’s fourth-biggest producer of cocoa after Ivory Coast, AbujaGhana and Indonesia. Nigeria produced 350,000 tons of cocoa in the 2013-2014 season, according to the Agriculture Ministry. Cocoa fell 0.5 percent to $3,095 per ton as of 10:28 a.m. in London, according to data compiled by Bloomberg.
A government incentive plan to encourage exporters of agricultural items with subsidies ranging from 5 percent to 15 percent has been slow to come into effect, according to Oladunjoye. A backlog of applications going back to 2011 is still awaiting approval at the Finance Ministry, he said.
Three phone calls to numbers listed for Trade and Investment Ministry went unanswered. Finance ministry officials weren’t immediately available to comment, an official who answered its phone number said.
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Nigeria’s former President urges investors to focus on ‘inclusive growth’
Nigeria’s former president warned investors at an African business summit in London they should focus on promoting “inclusive growth” if they want to avoid triggering social strife.
Olusegun Obasanjo, who was president of Nigeria from 1999 to 2007 was speaking at the Global African Investment Summit to about 450 people who were considering the merits of 136 African investment projects worth $246 billion.
“Old practices are no longer acceptable,” said the former president, who chaired the two-day investment meeting. “Today, we expect our partners to place the social and economic development of our citizens at the forefront of their projects’ design.”
Mr. Obasanjo added: “Our projects offer some of the best rates of return anywhere in the world and in return we want the best technology, cheaper finance and a greater commitment to our social and economic welfare. We want you to source locally and to actively grow supply chains in our countries. Value addition is the key.”
The former president acknowledged there have been setbacks on the continent, such as the rise of the Boko Haram terror group in Nigeria and al-Shabaab in East Africa, as well as conflict in South Sudan and the Ebola outbreak in West Africa. However, he said the overall trajectory of the continent is “overwhelmingly positive.”
Former U.K. foreign minister William Hague told investors that private equity funds could help fill a funding gap that is holding back the development of infrastructure in Africa.
“The gap cannot be plugged by government expenditure alone,” Mr. Hague said. “Investors are still quite tentative. Changing perceptions takes time but an improved track record of political stability in many countries is helping.”
President John Mahama of Ghana described Africa as full of opportunities for investors, from infrastructure to energy, tourism, transport and hospitality. Taking a different tack than most leaders aiming to attract investment, he pointed out that his children have no amusement park to visit in his country’s capital, which could provide investors one opportunity.
“We have no light industry and manufacturing,” President Mahama added. “China and Asia are beginning to become high-cost areas because wages and salaries are going up. People who are interested in electronics and light manufacturing probably should be looking to Africa now to move their production there.”
Mr. Obasanjo summed up his sales pitch for the continent, noting the opportunities in Africa are “electrifying.”
However, Uganda is one country where opportunities for investors may literally not be electrifying. Ugandan president Yoweri Museveni surprised investors on Monday by saying he’d prefer them to stay away from building power plants in his country, where Blackstone Group built a hydroelectric dam, unless they can lower their electricity fees.
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Mistrust and bureaucracy hurting extractive sector growth – experts
Bureaucratic procedures and mistrust between governments and investors are frustrating the development of the regional extractive industry, including oil and gas, whose exploitation could turn around the region, experts have said.
The experts were discussing mechanisms on managing the region’s mineral wealth for broad-based and inclusive economic growth development in the East African Community (EAC) in Kigali last week.
“The recent discoveries of oil and gas will completely change the dynamics of doing businesses in the region.
“This calls for the enactment of enabling laws that will attract more investment in the extractives industry and also promote interests of local communities and ensure sustainable resource exploitation,” Mary Mukindia, a Nairobi-based oil and gas consultant, said.
She also called on regional governments to invest in capacity building of their people and local firms so that they can acquire requisite skills to contribute to the sector’s development and participate meaningfully.
Mukindia also urged EAC governments to invest in infrastructure and emphasise value addition along the value chain.
“Governments should understand that they are the biggest stakeholders and therefore work toward streamlining regulations that govern the sector. This includes reducing bureaucracy and drafting laws that will attract both local and foreign investors into the sector,” she said.
She added that laws which promote local content, openness, governance and ensure environmental protection are essential for the industry and to ensure the region benefits from its natural resources.
Predeep Paunrana, the chief executive officer, Athi River Mining, a Kenyan firm, called on the private sector to play a key role, especially in supporting skills development and financing to ensure inclusive growth.
Paunrana advised firms involved in the extractive industry to contribute to the development of local communities in which they operate to improve the living standards of the people.
“Investors need to understand that supporting the local communities and involving them in the industry, especially giving local firms tenders, is one of the best practices for any company,” Paunrana added.
Richard Omwela, the managing partner at Hamilton Harrison and Mathews, a consultancy firm, said there is need for governments to invest more in geological surveys for a better understanding of region’s mineral wealth.
“The EAC should focus on processing the minerals and oil within the region to create jobs for the people and ensure maximum gain from the natural resources,”
In the past few years, commercial oil and gas discoveries have been made in Uganda, Kenya and Tanzania. All the oil and gas discoveries are at different levels of development and the three countries project to have their first oil within two or so years.
Rwanda has resumed oil exploration activities after Canadian explorer licence was annulled following disagreements with the government on some issues.
The region is also rich in minerals like wolfram, gold, diamond, tin and cassetirite.
Rwanda mainly produces cassiterite, wolfram and coltan. The sector’s production increased by 14.2 per cent during the first half of 2014, according to the central bank data.
The country is also looking to exploit its methane gas in Lake Kivu to develop methane-to-power projects.
The methane in Lake Kivu is estimated to be sufficient to generate 700MW of electricity over a period of 55 years.
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BRICS countries share strategies against malnutrition ahead of ICN2
“Hidden hunger” featured prominently at a BRICS (Brazil, Russia, India, China, South Africa)-led public discussion on nutrition held at FAO on Wednesday, ahead of the Second International Conference on Nutrition (ICN2) scheduled to take place in November 2014.
Speakers from the BRICS countries emphasized that food insecurity and malnutrition can only be resolved with strong political commitment and adequate resourcing, ensuring that ministries and non-state actors work closely together in a coordinated manner.
The BRICS Dialogue on Nutrition, designed to raise awareness and stimulate debate around key nutrition issues, follows a few days after an agreement was reached by member states of FAO and the World Health Organization (WHO), on a Declaration and a Voluntary Framework for Action including 60 policy recommendations aimed at ensuring that people around the world have access to healthier diets. ICN2 is expected to endorse the framework in November.
In his opening remarks, Jomo Kwame Sundaram, FAO Assistant Director-General and Coordinator for Economic and Social Development, described “the three faces of malnutrition,” the persistent challenge of hunger, or inadequate dietary energy, “hidden hunger” or micronutrient (mineral and vitamin) deficiencies – and diet-related non-communicable diseases often associated with obesity.
Jomo stressed the need for political commitment at the highest level and “integrated, comprehensive approaches,” but to do so within a framework which is flexible enough to recognize different national priorities. ICN2 will emphasize the centrality of food systems, especially sustainable food production and consumption in ensuring access to healthy, balanced and diversified diets for all.
While there has been a substantial drop in the number of people suffering from hunger since 1992, it is estimated that at least two billion people suffer from micronutrient deficiencies of one form or another. Another half a billion are obese. Malnutrition not only impairs people from reaching their full human potential, but reduces global economic welfare by around five percent, according to estimates.
Speaking about the Brazilian Experience, Pedro Braga Arcuri, Liaison Officer for Multilateral, Regional & National Entities of the Brazilian Agricultural Research Corporation (EMBRAPA), and Edurdo Nilson, Technical Advisor for Nutrition at Brazil’s Ministry of Health, outlined the strategies at the heart of the country’s Zero Hunger project and its efforts to establish health and nutrition as a human right.
“The interdisciplinary approach has always been crucial to us,” said Nilson, who stressed the importance of combining a variety of policies across different sectors and building diverse partnerships to tackle hunger and malnutrition. “[Fome Zero] has gotten the attention of the world to look at these problems from an early age.”
Like Nilson, Oleg Kobiatov, Alternate Permanent Representative of the Russian Federation to the Rome-based UN Agencies, underlined that “social protection is an important element in achieving better nutrition for all.” Russia is implementing this through targeted domestic food aid programs, including to mothers and vulnerable populations, modeled on the successful interventions of other countries, he said.
Breaking silos
Speaking candidly about his country’s efforts to combat child malnutrition, Vimlendra Sharan, Indian Alternate Permanent Representative to the Rome-based UN Agencies, said that while he was proud of many of India’s recent economic and technological successes – including this year’s Mars mission – it contrasts with the sadness of having one of the highest malnutrition rates in the world.
To successfully combat malnutrition, he underlined the importance of government programmes that break through silos and create horizontal, multisectoral linkages.
“Ideally the world will not need an ICN3, but if we do, I hope it is only to celebrate the eradication of hunger and malnutrition,” he added.
Xia Jingyuan, Permanent Representative of the People’s Republic of China to the Rome-based UN Agencies, underlined China’s goal of remaining self-reliant in the production of staple foods, while reaffirming the country’s commitment to sharing technologies with developing countries. “Food for all is a basic human right,” he said, “and it is the basis for all human rights.”
Lynn Moeng-Mahlangu, Chief Director of Health Promotion, Nutrition and Oral Health at the South African Department of Health, outlined the country’s current challenges in fighting increased stunting and obesity, and stressed the importance of creating systems and policies that galvanize support from all government departments, including agriculture and health. “If we don’t put systems in place, we cannot address these issues,” said Moeng-Mahlangu.
The ICN2 Declaration and Framework for Action acknowledge that malnutrition in all its forms, including under nourishment, micronutrient deficiencies, overweight and obesity, not only affects people’s health and wellbeing, but also poses a burden in the form of negative social and economic consequences for individuals, families, communities and States.
The final ICN2 Dialogue will be led by the group of G77 countries on 30 October. The first Dialogue was led by Nancy Stetson, U.S. Special Representative for Global Food Security.
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Addressing losses and waste across the food chain should be a critical pillar of national agricultural strategies
“Enhanced coordination among stakeholders is key to implementing the Malabo Declaration on halving Post Harvest Losses by 2025,” says AUC Head of Rural Economy at the Department of Rural Economy and Agriculture, Dr. Janet Edeme.
She was speaking at the opening of the African Union Commission (AUC) and Food Agriculture Organization high-level consultative meeting on Post Harvest Losses (PHL), organized to develop specific actions for addressing PHL within the framework of the Implementation Strategy and Roadmap for the Malabo Declaration on Agriculture and also to propose specific actions for implementing the recommendations on PHL reduction in the Comprehensive Africa Agriculture Development Programme (CAADP) National and Regional Agriculture and Food Security Investment Plans.
Dr. Edeme reiterated the AUC’s commitment to prioritize the formulation of concrete and deliverable actions to combat PHL in response to the Malabo declaration.
She noted that the AU Heads of State and Government in their 2014 Malabo Declaration on Agriculture committed to reducing PHL as they realized it was very critical for achieving the continental agricultural transformation goals and targets.
“This commitment by Africa’s leaders means we have the political mandate to come up with specific and concrete actions to halve the current level of PHL by 2025. We are also coming up with a roadmap to implement the Malabo declaration; so this is a chance to feed into the roadmap,” Dr. Edeme said.
FAO Representative for South Africa, Dr. Tobias Takavarasha said, “In Africa, food losses are significantly higher than those considered acceptable or unavoidable for efficiently functioning food supply chains.’’
He said total quantitative food loss in Africa, south of the Sahara had been estimated at 100 million metric tones per year. He however emphasized that food loss and waste is a global phenomenon not restricted to the African continent hence the need for a global coordinated support.
Dr. Takavarasha quoted the FAO report, ‘Global food losses and food waste’, which states that roughly one-third of the food produced in the world for human consumption every year, approximately 1.3 billion tones gets lost or wasted. Food losses and waste amount to roughly USD 680 billion in industrialized countries and USD 310 billion in developing countries.
He said that the need, therefore for interventions to reduce PHL become even more imperative when the environmental impact of losses, loss in nutritional value and market opportunities, as well as the possible adverse effects on the health of populations consuming poor quality products, are taken into consideration.
The two day event has brought together, African Government representatives, Regional Economic Communities, Civil Society, Private Sector, Farmer organizations and development partners.
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Productive capacity, diversification needed to boost growth in Landlocked Developing Countries
There are structural hurdles to unlocking growth in landlocked developing countries (LLDCs), a high-level meeting on investment in LLDCs heard on the final day of UNCTAD’s World Investment Forum at the Palais des Nations, Geneva, on 16 October.
LLDC ministers called for stronger efforts to develop productive capacity and drive diversification through foreign direct investment (FDI), to set these countries on a growth path.
In contrast with the recovery in global FDI in 2013, FDI inflows to LLDCs declined for the second year running. The flows to these countries fell by 11 percent in 2013, compared with the 9 percent rise in world flows. While the $30 billion in FDI flows to LLDCs in 2013 represented only 2 percent of global flows, with three-quarters of these investments going to six mineral-exporting LLDCs, FDI remains relatively more important for this group of economies than for developing countries as a whole. The potential role of FDI is therefore significant.
“Given the importance of FDI to this group of economies, more efforts should be made to increase and diversify foreign investments, and to maximize their impact on sustainable development outcomes,” UNCTAD Secretary-General Mukhisa Kituyi said.
Because economies of landlocked countries face persistent challenges linked to the negative impact that their geographical location has on trade opportunities, the Almaty Programme of Action has focused on actions needed for the further development of trade-related infrastructure and improvements in customs and in trade facilitation.
Gyan Chandra Acharya, United Nations Undersecretary-General and High Representative for least developed countries, LLDCs and small island developing states, said that collaboration between LLDCs and transit countries, and the development of productive capacities and economic diversification, was important in boosting the economies of LLDCs.
Ministers at the meeting echoed this, with Lao’s Vice Minister of Planning and Economy, Bounthavy Sisouphanthong, noting that “growth in the non-resource industrial and services sectors is an important basis for diversification of the Lao economy over the long-term.”
Enhanced regional cooperation was also mentioned as an important way to realize development through cross-border infrastructure projects and regional clusters of firms. This will require measures to reduce barriers and facilitate cross-border investments, mechanisms for joint investment promotion and a series of policy measures to accommodate regional business development projects, including policies to harmonize or mutually recognize regulatory standards.
Rigoberto Gauto Vielman, Minister for Economic Relations and Integration of Paraguay, underlined the importance of regional integration. He also said that countries should support their domestic enterprises because a vibrant local business community gives a strong signal to foreign companies.
Louise Kantrow, Permanent Representative of the International Chamber of Commerce to the United Nations, added that more government and multilateral action should be taken to increase the size of the formal economy.
Ahmed Abtew Asfaw, Ethiopia’s Minister of Industry, said: “Geography matters in FDI and trade, but it’s equally important not to overstate this factor. New technologies are changing the impact of traditional barriers.”
The important role of technology was also underlined by Anat Bar-Gera, Chairman of YooMee Africa, an international telecommunications and Internet company. She said that the introduction of broadband in LLDCs can bring innovation, advance learning and spur enterprise development.
Private sector representatives agreed that investment would play a key role in developing these productive capacities, which can help to advance targets in the proposed sustainable development goals.
A report on the meeting will be made available to the participants of the Second UN Conference on Landlocked Developing Countries, which starts in Vienna on 3 November 2014.
UNCTAD also launched the third edition of its Investment Guide to the Silk Road at the meeting. The publication outlines the investment climate and opportunities in Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan, as well as four western provinces of China.
Temir Sariev, the Minister of Economy of Kyrgyzstan, welcomed UNCTAD’s publication, saying that the guide will contribute to the rebirth of the Silk Road.
Wang Shouwen, China’s Assistant Minister of Commerce, congratulated UNCTAD on the publication and said that previous editions of the guide had been very helpful to the Chinese government and private sector.
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Global African Investment Summit ends with record number of bankable projects in Africa presented to international investors
The Global African Investment Summit (TGAIS) closed on Tuesday after two days of high level panels and roundtables to explore investment opportunities in Africa. Over 500 of the city’s pension funds, sovereign wealth funds, private equity firms, asset managers, bankers, corporate, professional services firms and project developers convened at the Savoy Hotel to review the continent’s most bankable projects in power, transport infrastructure, agribusiness, natural resources and tourism.
The final day of TGAIS included panels and round tables on private equity, capital markets, transport and ICT infrastructure and financing’s Africa’s power sector.
Highlighting the growing interest of family offices in the region, Lady Lynn Forester de Rothschild, Chief Executive at E.L. Rothschild LLC, argued that Africa has “the opportunity to leapfrog all the technology legacies of the west,” making it an attractive destination for this typically conservative asset class that has previously had very limited involvement on the continent.
The Summit also highlighted the linear relationship between GDP growth and power. Bryant (ABC) Orjiako, Chairman of Seplat, recommended “Africa should start thinking about itself and develop the industry and infrastructure that will require us to consume our hydrocarbons in the continent. Gas is by far the most important investment opportunity in Africa to drive sustainable growth.”
Stressing the energy gap in the continent and the massive opportunities for investment, Scott Mackin, Managing Partner at Denham Capital Management LP noted that “if you take out South Africa, sub-Saharan Africa has the same level of electricity generation as Spain. If you include it, it is still equivalent to only Norway.”
In a session on deepening Africa’s capital markets, Miguel Melo Azevedo, Managing Director & Head of Investment Banking Africa at Citigroup advocated for “big companies to list —especially in the sectors of power, telecoms, oil and gas—to bring size and depth to the market.”
Ibukun Adebayo, Co-Head Emerging Markets and Equity Primary Markets at the London Stock Exchange Group, suggested “more reform is needed for African exchanges to enable deeper participation by institutional and retail investors. Seplat raised 70% of its capital in London but most trading is done in Lagos. It’s a great example of dual listing and the symbiosis between local and international capital to create optimum value for the issuer.”
The need to deepen not just the continent’s financial infrastructure but its physical infrastructure was also highlighted. Tas Anvaripour, CEO of Africa50, believes African risk is exaggerated and that innovation in project structuring is needed to reduce the time taken to bring infrastructure projects to financial close. She called on investors “to have the courage to do large complex projects like Simandou in Guinea and the Tanzania-Kigali road”, noting that “Africa 50 is designed as a one stop shop for project finance, using a range of financial tools and acting as an honest broker to Governments and investors to get quality deals done better and quicker”.
Closing the event, Paul Sinclair, TGAIS Event Director, confirmed that “due to the success of this inaugural event, combined with the excellent response from participants, the Global African Investment Summit will be returning to London in November 2015.”
The Summit was opened yesterday by Lord Mayor of London Fiona Woolf and First Secretary of State William Hague and addressed by the Presidents of Ghana, Rwanda and Uganda, HE John Dramani Mahama, Paul Kagame and Yoweri Museveni respectively, and the Prime Minister of Tanzania Mizengo Pinda. A hundred and thirty-six bankable projects worth a combined total of US$246 billion were presented during a series of sector specific project roundtable to an audience representing over US$265 billion in capital over the two days.
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Medium Term Budget Policy Statement 2014 for South Africa
Foreword
Since the dawn of democracy just over 20 years ago, government has financed a massive expansion of services to all South Africans, with a focus on the poor. We have done so in a sustainable way, ensuring that our public finances remained healthy so that we could continue building the society envisioned in our Constitution.
Today, we are at a turning point. The world economic recovery remains shallow and structural challenges in our economy have contributed to weak economic growth. This has serious consequences for tax revenue, and our ability to continue funding social and economic programmes.
This year we anticipate GDP growth of 1.4 per cent. While growth is expected to reach 3 per cent in 2017, this is well below the country’s potential and has placed the public finances under increasing pressure. Rising debt levels, if left unchecked, would absorb more and more of our spending. The end result would be less money to spend on improving the lives of our people.
The 2014 Medium Term Budget Policy Statement provides a roadmap to safeguard the public finances. In response to a worsening debt outlook, government proposes a fiscal package that reduces the expenditure ceiling and raises tax revenue over the next two years. This will reduce the budget deficit and stabilise debt, which is now set to reach R2.4 trillion in 2017/18.
Two years of fiscal consolidation will put the public finances on a sustainable footing. We will also approach budgeting with a greater focus on long-term expenditure planning and alignment with government’s policy objectives.
In considering these proposals, we must emphasise that restraining expenditure growth will not compromise front-line services. National, provincial and local government will need to continue identifying savings and improving the way they spend money. Key social programmes will be protected. Government will continue to roll out its capital investment programme. We will encourage private-sector participation in infrastructure delivery.
While expenditure ceilings are being reduced, the budget will continue to grow in real terms. Government will spend R4.4 trillion over the next three years. Allocation of these funds will be in line with the medium-term strategic framework, which gives expression to the National Development Plan.
I would like to thank the President and all of my Cabinet colleagues for their contributions to shaping the proposals before us, as well as the Ministers’ Committee on the Budget, which has brought tremendous insight into the process. I would also like to acknowledge the officials of the National Treasury, who are working with their colleagues across government to ensure that our public finances remain sound.
The choice we face in considering these proposals is a difficult one. But we believe that this course can no longer be postponed.
Nhlanhla Musa Nene
Minister of Finance
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Give landlocked nations a tech boost, says UN chief
The international community must do more to provide landlocked developing countries (LLDCs) with the agricultural and industrial technology to turn raw materials into high-value products, a UN chief tells SciDev.Net ahead Second UN Conference on LLDCs, in Vienna, Austria (3-5 November).
Providing better access to new technologies should be a central pillar of any future development strategy or these countries will remain overly-reliant on the export of low-value commodities, slowing their economic development, says Sandagdorj Erdenebileg.
“If they want to diversify their economies they have to do so through the transfer of technology,” says Erdenebileg, who is head of the Policy Development, Coordination, and Reporting Service at the UN Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States.
“The need is more pressing than in any other developing country.”
There are 32 landlocked developing countries: 16 in Africa, 12 in Asia, two in Latin America and two in Europe. They include Bhutan, Burundi, Chad, Laos, Macedonia, Niger and Zambia.
Erdenebileg says that helping LLDCs make high-value processed goods is an accepted way for them to overcome the geographical isolation that raises their transport costs by up to 50 per cent, as these products are less bulky compared to their value.
But high commodity prices during the early years of the new millennium caused governments and international development agencies to favour raw material exports, he says.
This issue will be back on the agenda of decision-makers when they meet next month (3-5 November) to produce a text to replace the Almaty Programme of Action (APoA), a document that has guided international attempts to speed up development in coastless nations since 2003.
Discussions at UN’s Vienna conference on LLDCs will include ways of pushing richer nations for more explicit commitments to aid tech transfer to boost manufacturing and trade, he says.
This may include developing licensing agreements to give free of preferential access to technologies providing training and capacity building, and encouraging foreign investment in agriculture and industry, says Erdenebileg.
Many of the networks needed to implement these changes already exist, such as the UN-hosted South-South Global Assets and Technology Exchange (SS-GATE), but donors are “not doing enough” to maximise their impacts, he adds.
Erdenetsogt Odbayar, the interim director of the International Think Tank for LLDCs, based in Mongolia, agrees that the international development community is giving insufficient attention to the “major issue” of tech transfer.
But before any meaningful action is taken, the specific technological and human capacity needs of each country must be assessed, he tells SciDev.Net.
And, the private sector must be better integrated into discussions, as business investment is the only way to meet the high, long-term costs of developing the extractive industries, such as mining, that so many LLDCs rely on to provide the raw materials for conversion, Odbayar adds.
The draft of the conference outcome document already acknowledges this reality, as well as making significant improvements to the APoA it will replace on issues such as capacity building and infrastructure, he adds.
Unlike the APoA, the document has a section on science, technology and innovation, in which it calls for access to new technology and knowledge and is peppered with references to science.
“Landlocked developing countries should promote investment in science, innovation and technology for sustainable development,” it says.
They should prioritise the development of a national policy to promote science, technology and innovation; build and expand strategic partnerships, such as with the private sector, universities and other research institutions; promote innovative solutions for modern and cost-effective technologies that could be adapted locally; and establish high-level technology centres, the document says.
Development partners, it adds, could provide financial and technical support; promote the sharing of best practice and innovative technologies and the transfer of technology and know-how; and support the networking of research institutions and the creation of high-level technology centres.
But despite tech transfer’s importance, many LLDCs have more fundamental problems, says Odbayar.
“They don’t even have basic governance,” he says. “Political stability must be established before tech transfer can be effective.”
Landlocked Developing Countries: Facts and Figures, 2014 (UNCTAD)
There are 32 landlocked developing countries (LLDCs): 16 are located in Africa; 10 in Asia, 4 in Central and Eastern Europe and 2 in Latin America. As diverse as these countries are, they share one common feature, namely the lack of direct territorial access to the sea, often coupled with remoteness from major markets.
This locational factor has a profound impact on the scope and the dynamics of these countries’ integration in the global trading system. Their dependence on transit transport routes and transit facilities for merchandise trade increases transaction costs, reduces international competitiveness and discourages foreign investors. Consequently, transit dependence and market distance limit the classic development choices – the produce of labour-intensive, low-value and bulky goods – of these countries.
However, as empirical evidence from developed landlocked countries demonstrates, these limitations are not an insurmountable obstacle to economic growth and development. The building of supply capacities for goods and services that are less sensitive to transportation and distance, as well as the promotion of stronger regional trade expansion are development options that could also help LLDCs to mitigate the adverse impact of their geographical location.
Still, many LLDCs stagnate at the bottom end of international rankings of income levels and social development indicators. In fact, 17 of the LLDCs are classified as least developed countries (LDCs). Responding to the specific problems of LLDCs requires a multidimensional approach to being landlocked as a development challenge. This notably implies the implementation of policies and measures aimed at economic restructuring and specialization that take into account the transport-related obstacles facing their economies. The international community has expressed in many ways its resolve to assist these countries in their efforts to overcome the impediments of geography.
The Almaty Programme of Action, adopted in 2003 at the International Ministerial Conference of Landlocked and Transit Developing Countries and Donor Countries and International Financial and Development Institutions on Transit Transport Cooperation, was a hallmark of these global efforts.
During the past decade, awareness and recognition of the special needs of LLDCs have risen at the international level and, despite large differences among individual LLDCs, there are encouraging signs of economic and social improvements in these countries. Nevertheless, laying the foundation for sustainable development continues to be work in progress for many, if not most, LLDCs.
The Second United Nations Conference on Landlocked Developing Countries, which will take place in Vienna from 3 to 5 November 2014, provides an opportunity to reaffirm the global commitment to addressing the special needs of these countries and renew the partnership between LLDCs, their transit neighbours and their development partners.
This publication is prepared as part of UNCTAD’s contribution to this global gathering. It presents key economic, social and trade information on all 32 LLDCs with the aim of underpinning the dimension of their development challenge with facts and figures.
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EALA Session commences in Kigali
The 2nd Meeting of the 3rd Session of the 3rd Assembly commenced in Kigali, Rwanda on 21 October 2014. The Speaker of the Rwanda, Chamber of Deputies, Rt Hon Donatile Mukabalisa opened the session. In her remarks, Rt. Hon Mukabalisa lauded EALA for ensuring citizens of the region were fully brought on board on matters concerning integration through the principle of rotation.
“Your meetings in Kigali have great significance. We appreciate this spirit of rotating and having EALA meetings in all Partner States. This is vital as the people from these States recognize and understand more the importance of the regional integration. That gives you the motivation to work hard and closely to achieve the objectives of the Community”, Rt. Hon Mukabalisa said. The Speaker noted that the region was already enjoying the tangible benefits of integration arising from the on-going implementation of the EAC pillars and lauded the region for consolidation of the same.
“We have to acknowledge the great importance of coming together, to interact and share experiences and expertise meant to foster social cohesion and unity, among the people of East African Region. This will be achieved because of the strong political will and strong commitment of our leaders” Speaker Mukabalisa said.
The Speaker of the Chamber of Deputies challenged Parliamentarians to work closely with the other stakeholders to strengthen integration.
“We also need a close collaboration with the private sector and civil society because this partnership is the foundation to strengthen our economic, social, cultural, industrial, technological, infrastructure, services and other ties for sustainable development,” Rt. Hon Mukabalisa said.
On her part, the Speaker of EALA, Rt. Hon Margaret Nantongo Zziwa, called on the Parliaments to take integration a notch higher by debating on integration issues more vigourously. She appealed to the Chamber of Deputies to allocate more time on the floor of the House to enable explication of the EAC policies and also for Parliamentarians to debate on integration matters.
Rt. Hon Zziwa cited sensitization as a key plank in the EALA’s Strategic Plan and remarked that it was a priority for the Assembly at the moment. “It is EALA’s intention to target key stakeholders including Parliamentarians and we as EALA shall be keen to deliberate comprehensively with Members of the Parliament here”, the Speaker added. Speaker Zziwa hailed the Parliament of Rwanda for its efforts taken in passing key legislation in the country.
“I am informed that within the one year period, the Parliament has expedited legislative process of various Bills. Since October 2013, when the Lower Chamber was sworn in, it has received 60 Bills of which 54 have been scrutinised and 41 of them, passed and published in the Official Gazette, representing 95 per cent of performance execution by the legislature,” the Speaker said.
“This has been a busy year but one that is by all means successful. The business you have executed is commendable. The passion with which you want Rwandans to understand how Parliament works, and what the lawmaker’s responsibilities are is admirable”, Rt. Hon Zziwa added. In her vote of thanks, Hon Dr. Kessy Nderakindo congratulated the people of Rwanda for their warmth and generosity.
She remarked that integration was key to make the One People, One Destiny ethos, a reality. “We need to get back to where we were before the colonialists created the artificial borders,” Hon Dr. Nderakindo remarked. The Assembly shall during the two-week period, discuss several legislative matters. The Sitting expects to debate on the following key areas:
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the EAC Co-operatives Bill, 2014 (2nd & 3rd Reading)
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receive and consider reports from various Committees of the Assembly. Such include the Report of the Committee on Regional Affairs and Conflict Resolution and the Report of the Committee on Legal Rules and Privileges. Others are the Report of the Committee on Communications, Trade and Investment on the implementation of the Single Customs Territory on the Central Corridor.
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consider several Motions and Questions brought before the House.
To view the Press briefing by Hon. (Dr) Margaret Nantongo Zziwa, Speaker of EALA, on Monday, 20 October 2014, in Kigali, Rwanda, please click here.
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Aid for Trade meeting highlights need to give greater support to small businesses
At a meeting of the Committee on Trade and Development on 10 October 2014, WTO members were updated on a recent ITC-WTO workshop that called for greater support for small and medium-sized enterprises (SMEs) to help them integrate into global trade. Members also discussed the monitoring and evaluation exercise that will feed into the Fifth Global Review of Aid for Trade to take place in June 2015.
Joint ITC-WTO Workshop on Aid for Trade and SME Competitiveness
The meeting heard a report on the Workshop on Aid for Trade and SME Competitiveness jointly organized by the WTO and the International Trade Centre (ITC) on 9 October 2014. The workshop noted that SMEs play an important role for employment, income growth and gender empowerment. At the same time, SMEs have a high failure rate due to limited access to finance, lack of institutional support, non-tariff trade barriers and an unfavourable business environment. Participants in the workshop discussed areas where more could be done to support SMEs and help them integrate into global trade.
A joint ITC-WTO background note on Aid for Trade and SME competitiveness can be downloaded below.
Enhanced Integrated Framework
The meeting included a briefing by representatives of the Enhanced Integrated Framework, a multi-donor programme that promotes trade in least-developed countries (LDCs). The EIF has recently launched a new trade mainstreaming facility to further help countries put trade at the centre of their development agenda. Since its launch in June 2014, members have submitted requests to access the facility for additional support.
Uganda (representing the LDC Group), Nepal and Benin commended the EIF's work and called for an extension of the programme beyond 2015. Uganda noted that since 2008 the EIF has funded 120 projects in 45 countries. The EIF Annual Report 2013 highlighted that 90 per cent of EIF Tier 1 countries, which receive support for identifying constraints to trade, had included trade in their national development plans.
National Aid for Trade initiatives
China, Dominica (representing members of the Organisation of Eastern Caribbean States) and Chinese Taipei shared their experiences on Aid for Trade. China said that it has helped developing countries boost trade by promoting infrastructure development, providing export market opportunities for LDCs and assisting in trade-capacity building. Dominica highlighted how Aid for Trade has helped OECS countries develop regional strategies and prioritize trade in their development agendas. Chinese Taipei described its four-year project aimed at helping Belize improve efficiency by introducing information technology solutions.
Mobilizing resources to support trade integration
The European Union presented findings of its Aid for Trade monitoring report for 2014. It noted that EU support for Aid for Trade in 2012 was 20 per cent higher than in 2011, making the European Union the world's largest trade assistance provider. Africa has received the largest share of this assistance, and the European Union has maintained its commitment to LDCs.
Uganda pointed out that LDCs attracted only 24 per cent of total Aid for Trade in 2012. It called upon members to prioritize the needs and interests of LDCs and to ensure that at least one-third of Aid for Trade is disbursed to LDCs.
The meeting also heard presentations from the ITC and the United Nations Industrial Development Organization (UNIDO) on their Aid for Trade work.
Monitoring and evaluation exercise for Fifth Global Review of Aid for Trade
Members reviewed the questionnaires and case story templates to be disseminated as part of the monitoring and evaluation exercise that will feed into the Fifth Global Review of Aid for Trade to take place in June 2015. The Review will focus on "reducing trade costs for inclusive, sustainable growth". Once finalized, the questionnaires and requests for case stories will be circulated to partner countries, bilateral and multilateral donors, regional economic communities and South-South partners to assess the aid needed to reduce trade costs. The request for case stories will also be circulated to the private sector.
Background
Aid for Trade is a WTO-led initiative that helps developing countries and least-developed countries trade. At the Ninth Ministerial Conference in December 2013, a Ministerial Decision on Aid for Trade (WT/L/909) reaffirmed WTO members' commitment to the initiative, recognizing the continuing need for Aid for Trade in developing countries, and in particular least-developed countries. The Aid for Trade Work Programme for 2014-2015 is focused on “reducing trade costs for inclusive, sustainable growth”.
Director-General Roberto Azevêdo announced at the General Council meeting on 21 October 2014 that the 5th Global Review of Aid for Trade will be held from 30 June to 2 July 2015. His remarks on Aid for Trade are presented below:
Thank you Mr Chairman.
I think there is a wide-spread appreciation of the value of Aid for Trade in supporting development, and particularly for the LDCs.
In my conversations with ministers and heads of other international organisations, I am already starting to hear a lot of interest in the Aid for Trade Global Review. As you know, we hold these Reviews every 2 years, and we will have the next one in 2015.
2015 will be a very important year in the development calendar. The UN's post-2015 development agenda and the sustainable development goals will be finalised, and so I expect that this interest in the Global Review will only increase.
Therefore I wanted to take the opportunity of this meeting to give members a quick update on the Global Review.
In doing so, I would like to thank the Chair of the Committee on Trade and Development, Ambassador Pierre Ndayiragije, for his excellent work in taking this initiative forward.
The Aid-for-Trade work programme, which was before the General Council in May this year, set the theme for the 5th Global Review and also scheduled it for mid-2015.
I am pleased to confirm today that the exact dates for the Global Review will be from the 30th of June to the 2nd of July 2015.
I will give you these dates in writing very shortly in a letter to all delegations, but I urge you to mark them in your diaries.
Just as important, is that this letter will also include details of how to participate in the Aid for Trade monitoring and evaluation exercise.
The CTD Chair has already consulted extensively on this issue — and so I think you are all aware that the monitoring and evaluation exercise is central to the Global Review.
Previous Global Reviews have been hugely enriched by your active participation.
We are therefore counting on your continued engagement and request that you transmit details of how to participate in this exercise to your capitals.
Looking forward, I encourage the CTD chair to continue his good work and consult with you all on the organization of next year's Global Review.
By working together we will ensure that the process is a success.
Thank you.
Read the full Report by the Chairman of the Trade Negotiations Committee.
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tralac is a 2014 Finalist – Cape Chamber of Commerce Western Cape Exporter of the Year
We are pleased to inform you that tralac is a Cape Chamber of Commerce Western Cape Exporter of the Year 2014 finalist.
Exporter of the Year 2014
The Cape Chamber of Commerce Western Cape Exporter of the Year 2014 profiles the best of the Western Cape. Exporting companies are proving that there is opportunity to be had for the bold business leaders in the Western Cape.
This is an exciting time as this year’s Exporter of the Year is part of the World Design Capital programme. The main award, the Western Cape Exporter of the Year Trophy, will go to the company that meets the judge’s criteria for commitment to exporting. All exporters, both large and small, stand an equal chance of winning this prestigious award, which will be presented at a gala banquet in Cape Town on Thursday the 27th November 2014.
2014 Exporter of the Year finalists:
1. Abagold produces abalone, the world’s most desirable seafood, in close harmony with nature at the most southern tip of Africa.
2. Afrinatural Holdings is committed to delivering botanical products from Southern, West and Central Africa that exhibit health enhancing and unique properties.
3. Geo Data Design is an expert provider of Satellite Imagery and Geospatial processing & Management Software, integrating Geospatial data and complete workflows for better decisions.
4. Macadams International was established in 1904, and over the past 100 or so years, they have developed into a major force in the Baking Industry both locally and across the globe.
5. Maverick Trading 59 is South Africa’s leading manufacturer of Polymer concrete Manhole covers and frames, and was founded in January 2000 by Cedric Simons.
6. Nautic Africa specialises in the construction of marine-grade aluminium vessels, custom-building solutions tailored to your specific needs.
7. Oh Lief Natural Products was founded in 2010 by sisters Christine Buchanan and Louiza Rademan, and was born out of the love for nature and the desire to use products that would not harm our skin or the environment.
8. Thokozani Wines / Diemersfontein produce award-winning estate wines.
9. ST Communications provides African localisation solutions. As a top provider of translation and localisation services they have a wealth of experience in providing translation and localisation of African languages.
10. Trade Law Centre – tralac is a capacity-building organisation developing trade-related capacity in east and southern Africa.
11. Triggerfish Animation is a Cape Town-based media and entertainment company passionate about producing original character-driven stories with universal appeal.
For more details, please visit http://www.capetownchamber.com/
South Africa: Tourism Report 2013
Background
Administrative records regulating the flow of people across boundaries, specifically border statistics, are an important source of statistical data on temporary population movements in many countries. Generally, countries routinely collect some data from both residents and non-residents who pass through the demarcated air, land and sea ports on arrival in and departing from the country. The method, the kind of collected data, the quality of data and the dissemination and availability of processed data differ quite widely among countries since there is no international standardised template for the recording of information on travellers. Besides the impact of the level of infrastructure development, the national differences are largely shaped by the immigration policies and regulations of individual countries.
Data collection methods may be electronic, manual or both. Travel documents could be scanned and/or travellers are expected to complete an arrival and departure form/card. The level of documentation and the information collected from travellers are often influenced by the citizenship/nationality of the travel document and the purpose of entry.
Data obtained from foreigners or non-residents can be used to categorise them into visitors and non-visitors. Usually, the data given on the form regarding purpose of visit and/or length of stay is also used to categorise travellers into visitors and migrants. In countries that do not use cards/forms, data on type of visa/permit can also be used for the categorisation. In addition, there are countries that issue special cards for registered immigrants that they could use to cross in and out of the country of residence. Thus the information from the visa, permit and the card/form are used to classify non-visitors into migratory categories such as short-term and long-term migrants; temporary migrants; permanent migrants; labour migrants, asylum seekers, students, etc. according to a country’s specifications.
Because border statistics are derived from arrival data they could be the most suitable data source for the direct measurement of the flow of immigrants (UN, 2011). The data are routinely collected as travellers pass through the immigration check points at the port of entry so data are available at any given time intervals. It is very crucial to note that unlike data from census or sample surveys that count individual persons, border statistics by their nature, do measure events i.e. movements of persons rather than the physical persons. The simple reason is that the same person can cross the border a number of times during a specified time and his or her information is recorded every time he or she passes through the border.
The management of population movements across South African borders and immigration into South Africa fall under the jurisdiction of the Department of Home Affairs (DHA). The jurisdiction of this responsibility is enshrined in the various immigration acts, amendments, laws and regulations. Currently, with respect to the collection of data on population movements in and out of South Africa, the DHA operates with the Immigration Act 2002 (Act No. 13 of 2002), its amendments and associated regulations. The latest Immigration Regulations came into operation on 26 May 2014. Any changes and amendments in the legislation and regulations affect both the flow of travellers as well as the methods of collecting data and the kind of information collected on travellers.
At the ports of entry/exit, the immigration officers of the DHA collect information on South African residents and foreign travellers arriving into or departing from South Africa. This information is used to produce statistical releases on all travellers, with emphasis on tourists and an annual report aggregating the results of one calendar year.
Percentage distribution of tourists by region and purpose of visit, 2013
Percentage distribution of tourists from SADC countries on business, 2013
Percentage distribution of tourists from ‘other’ African countries on business, 2013
Percentage distribution of tourists from overseas countries on business, 2013
Strong leadership: critical to building South Africa’s competitiveness
South Africa is a country rich in diversity with an array of cultures and communities, each with their own stories and history. Each of these communities have produced sometimes world-renowned leaders, but always local leaders, who have contributed to improving the lives of South Africans; they have made a mark on history and by playing their part, they have made South Africa the country we know today.
Democracy in 1994 brought a host of nation building and social cohesion challenges yet, South Africa succeeded in building a democratic society. South Africa’s policies were focused on nation building and equalising levels of development and access to resources.
In theory, once nation building and a common national identity is achieved and citizens’ basic needs such as education, housing, health care and water and sanitation are met, then a country should be in a position to compete with other nations on a global scale.
Being able to compete on a global scale and to achieve a competitive advantage is a challenge that leaders in South Africa have to respond to with urgency.
Role of leadership
In South Africa, the role of leadership is crucial because it forms the back bone of the fabric of our societies and is a major source of inspiration for millions of citizens to do things differently to achieve excellence.
We must recognise that leaders do not exist only in government but in all other spheres of our society. Leaders can have formal or informal power and ironically those with informal power are sometimes able to motivate people better than those with formal power. If leaders actively work towards improving and growing their spaces to build other leaders who can take decisive action and implement decisions that will see us growing our country, this will undoubtedly make a significant contribution to our global competitiveness.
Leadership in South Africa that ensures the implementation of policies is critically important.
As a country, we must collectively move with haste to implement the policies that exist to ensure that South Africa gains a competitive advantage over its counterparts, and in this way addresses some of our pressing socio-economic challenges. There is no doubt that in many respects we have progressive and impressive policies, whose implementation is at times hampered by people charged with implementing them. As we focus on the implementation of the development plan, we must constantly remind ourselves of Madiba’s view that we need to move urgently from rhetoric to implementation. This requires our collective effort and contribution and strong leadership in whatever sphere of society we may be involved.
In contemporary business theory, it is believed that if organisations gain competitive advantage in the market place, they move to a place of brand recognition and increasing brand equity.
National brand
While South Africa is not a corporate entity, perhaps it is time to consider implementing a hybrid model where our nation building efforts recognise that we do have a product we want citizens of our country – and the broader world – to buy, our nation brand! We want citizens to buy into South Africa. With this comes pride, patriotism and a solid sense of national identity.
In the aggressive business world, especially in today’s global economy, every incremental achievement counts towards positioning your business as an industry leader.
Similarly, South Africa needs to focus on key sectors to gain competitive advantage in the global community of nations. Gaining a competitive advantage takes strategic planning, extensive research and strong leadership. To achieve this, leaders in South Africa, must form constructive partnerships with a range of stakeholders in the pursuit of competitiveness and prosperity by creating an environment that supports productivity. This necessarily involves the courage to do things differently – we may sometimes have to join the most unexpected partners to get the best, most creative and effective results. As Kofi Anan once said, “you shake hands with the devil to make peace”.
This is not new to us in South Africa – this is our story, this is the bedrock on which our very democracy rests.
South African Competitiveness Forum
As part of its mandate to build South Africa’s brand reputation and contribute towards the country’s global competitiveness by developing symbiotic partnerships with stakeholders who can build our country’s competitiveness, Brand South Africa will host the second annual South African Competitiveness Forum in Johannesburg on 4 and 5 November 2014 under the theme “Active Citizenship and its role in changing the South African brand reality”.
In an attempt to bring together a range of diverse voices, Brand South Africa will this year, in addition to discussions on youth and innovation, foreign direct investment, the labour market, expansion into the rest of Africa and active citizenship, include a virtual discussion with Global South Africans about their views on South Africa. Many South Africans remain very positive about our country although they may live abroad. They are a critical part of our nation brand.
The 2014 Forum will also see a discussion with all relevant stakeholders on South Africa’s multipronged “going-out strategy”. This will focus on business expansion strategy into African markets, and the role perceptions and reputation plays when entering peer markets elsewhere on the continent.
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East Africa is ripe with opportunity – Kagame
President Paul Kagame on Monday began a three-day visit to London where he addressed business leaders at the Global African Investment Summit. The event, under the theme “Realising Africa’s Investment Potential”, brought together over 300 business executives for a discussion aimed at bringing the private sector and governments together to discuss access to finance and bankable projects on the continent.
The summit opened with a presidential panel with Presidents Kagame, Yoweri Museveni of Uganda and John Dramani Mahama of Ghana, and Prime Minister Mizengo Pinda of Tanzania.
Speaking on the Ebola crisis, President Kagame called for the right approach to addressing the crisis.
“We need to work together regionally, strengthen country systems to tackle problems that affect African citizens. Epidemics like Ebola remind us that investments should be about building systems.”
Pointing to challenges like infrastructure and energy, Kagame called on investors to focus on the opportunities. “There are different challenges but there are also opportunities. Between the resources that East Africa or Sub Saharan Africa have and the challenges, right in between there are real opportunities and solutions.”
President Museveni reminded the audience of the unmatched opportunities that exist in Africa, saying: “Africa will be three billion people. From whichever angle you look at it, Africa is the place to invest. The consuming power is there and the infrastructure is being worked on and there is market access.”
Drawing attention to the importance of improving the lives of citizens, President Kagame called for investments that develop nations and people.
“It’s not just about investing in IT or infrastructure. Our own national budget, 15 per cent of it goes to education and it has been increasing. This is about prioritising investment in human capital from primary school, to university, to vocational and technical education.”
He told the business leaders: “Invest in Rwanda, in East Africa. Your money will be safe, you will have high returns and the country and our citizens will benefit and we will develop together.”
Meanwhile, President Kagame was welcomed to London by hundreds of Rwandans living in the UK who lined the streets across from Savoy Hotel where the summit took place.
Supporters held placards with messages of appreciation for the President’s leadership, with many listing Rwanda’s accomplishments over the last 20 years, including lifting one million people out of poverty (over the last five years), Rwanda's position as the 10th fastest growing economy in the world, and reiterating Rwandans’ choice of dignity, resilience and self reliance.
President Kagame is today scheduled to give a lecture at Chatham House on “Rwanda’s role in a changing world” (read the speech here), while he is also expected to deliver a keynote address at the UK-Rwanda Business forum tomorrow.