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tralac’s Daily News selection: 28 July 2015

News

tralac’s Daily News selection: 28 July 2015

tralac’s Daily News selection: 28 July 2015

The selection: Tuesday, 28 July

To follow the @ICTSD/SAIIA Regional Trade discussion: #SADCintegration, @markschoeman

SADC Energy Ministers: communique

Ministers resolved to fast track implementation of priority regional transmission projects in order to connect Angola, Malawi and Mozambique. The projects include Zambia-Tanzania-Kenya (ZTK) Interconnector; Mozambique-Malawi Interconnector; Namibia-Angola Interconnector. The Ministers also noted progress on Zimbabwe-Zambia-Botswana-Namibia (ZIZABONA) Transmission Project as well as Mozambique-Zimbabwe-South Africa (MOZISA), which are meant to relieve congestion on the regional grid to facilitate electricity trade.

The Ministers commended the DRC and South Africa for ratifying treaty on development of Grand Inga Hydropower project. RSA was advised to accelerate signing of inter Governments Memoranda of Understanding (IGMOU) for future evacuation of power from Grand Inga to RSA and neighbouring Member States. Ministers also commended the World Bank for the financial assistance to the SAPP for purposes of setting up a Project Advisory Unit (PAU) and seed funds for project packaging in order to accelerate implementation of regional projects.

Fact Sheet: Power Africa (The White House)

SADC-China Infrastructure Investment Seminar: update (FOCAC)

Financial inclusion in the SADC region: fact sheet (FinMark Trust)

FinMark Trust is due to publish a book titled, 'An excluded society? Financial inclusion in SADC through a FinScope lens'. The book includes cross-country comparisons of financial inclusion Indicators of 12 SADC countries using findings from the FinScope Consumer Surveys. This fact sheet contains a summary of the book and as such it provides key facts about financial inclusion in the SADC region.

In total, 66% of adults in the region are financially included (including both formal and informal financial products/services) which is around 83.5 million individuals. Overall levels of financial inclusion vary considerably across the region from 90% in Mauritius, 86% in South Africa to 40% in Mozambique. Mauritius, South Africa, BLNS countries, and Tanzania show the highest levels of overall financial inclusion.

RBZ disputes $7,5bn in informal sector (The Herald)

The Reserve Bank of Zimbabwe has disputed claims that an estimated $7,5bn is circulating outside the formal banking system. Reserve Bank of Zimbabwe director for bank supervision Mr Norman Mataruka told the Oxylink mobile money and digital payments conference it was impossible such a huge amount of money could be changing hands in the informal sector. “If $7,5bn outside the formal banking system, then where do those particular people do their shopping, where do they buy? Do they just keep the money like gold, which is in a safe,” he asked, adding that even RBZ Governor John Mangudya did not agree with the claims. But Small to Medium Enterprises and Co-operative Development Permanent Secretary Ms Evelyn Ndlovu said $7,5bn was circulating in that sector.

The battle between Africa’s mobile phone companies and banks is a boon for financial inclusion (Quartz)

Zimbabwe: Mobile money activities total $6,1 billion (NewsDay)

Housing microfinance value chains study: TOR (FinMark Trust)

Namibia: NTIP a precursor to a national single window (New Era)

Schlettwein added that the implementation of the Namibia trade information portal is a key precursor to the establishment of the national single window (NSW). “The single window initiative, which was approved by cabinet in February last year, will benefit from better inter-governmental cooperation and coordination already prevailing within the portal expedited trade-related activities. Indeed, the national single window will also offer to the trade community a one-time, single-point submission of all the required documentation to all trade related entities for either import, export or transit procedures and provide all relevant trade related documents,” said Schlettwein.

Namibia: Dairy industry in dire straits, again (New Era) 

Rwanda spearheads one area network for Central Corridor (New Times)

If it works as hoped, mobile phone users shall pay a uniform tariff to place a voice call from Rwanda to Tanzania or to Burundi, a development likely to significantly ease the cost of telecommunication services among East African Central Corridor countries. The One Area Network (ONA) is just one of 10 ambitious development clusters that Tanzania, Rwanda, Burundi, Uganda and the DR Congo have agreed to jointly implement under the Central Corridor infrastructure projects development initiative. Senior technocrats from the five Central Corridor trading partners, today, end a two-day meeting in Kigali, whose objective was to prepare a mutually acceptable implementation framework for the projects. The technocrats’ meeting is a precursor to an inter-governmental council of Central Corridor ministers of East African affairs, infrastructure and transport, which kicks off tomorrow.

EALA commences annual planning meeting in Kampala (EAC)

The meeting is also expected to receive a review report of activities of the last half of the Financial Year 2014/15 (January to June 2015). Arising from the Planning Meeting, EALA’s Work Plan and Legislative calendar is expected as is feasible to be in synchrony with that of the EAC. The Office of the Clerk in coming up with the draft Legislative Calendar took note of the activities of the wider EAC.  The Speaker of EALA, Secretary General of the EAC and the President of the East African Court of Justice (EACJ) regularly meet to review progress and keep abreast with developments.

EALA Speaker implores stakeholders to act and think regional to boost integration (EALA) 

Increased visa fees in Uganda raise questions about travel in the region (The East African)

Africa to negotiate for better terms at WTO meet (The East African)

Africa must demand new global copyright rules in the forthcoming World Trade Organisation meeting to be held in Nairobi at the end of the year. The rules would empower the continent to gain from global trade, since the current rules, known as Trade-Related Aspects of Intellectual Property Rights (Trips) under the Doha Declaration, favour developed nations. "What African countries need to do today is to make progress and embrace new challenges. The negotiations in December should address needs and solutions for the continent," said Mukhisa Kituyi, UNCTAD secretary-general. Dr Kituyi said the Doha agenda did not adequately reflect the problems of Africa today.

WTO members remain divided on how to advance agriculture negotiations

Since the last meeting in June, two papers on domestic support were submitted by Canada and Australia and by Norway. The paper submitted by Australia and Canada highlights that some of the larger WTO members have a lot of “space” between the total trade-distorting domestic support allowed under the WTO Agreement on Agriculture and the actual amount of domestic support they are providing. This suggests, in their view, that a cut in the overall trade distorting support (OTDS) would “cut into water, not into blood”.

“OTDS has proved to be one of the most contentious issues,” said Ambassador John Adank, Chair of the agriculture negotiations. “This is because exemptions provided for some members in the draft modalities have been put into question by some other members, who argue in favour of comparable disciplines for all large subsidizers.”

Angolan company to build submarine cable station in Brazil (MacauHub)

Angola Cables will manage the 6,165-kilometre fibre-optic cable, which will link Luanda to Fortaleza, within the framework of the Atlantic Cable System, making it possible to connect Africa and South America, initially and later North America, when the Monet system starts operating, which will be a fibre-optic cable linking Fortaleza and Santos in Brazil to Miami, in the United States as part of initiative by Angola Cables, Algar Telecom, Google and Antel Uruguay.

Rovuma LNG: how price is determined and what it means for government revenue (CIP)

The future price of Liquefied Natural Gas is largely outside the control of Mozambique; it will be determined by international market prices. But government revenue will also be determined by the long-term gas sales agreements currently being negotiated by Anadarko and ENI, and by the way in which the vague valuation clauses in the 2006 contracts are interpreted. The sales agreements for Rovuma LNG are being negotiated at a time when gas prices are more volatile than ever. Past projections for government revenue have been based on price forecasts for Asian LNG that are no longer credible due to shale gas production in the United States and plummeting international oil prices. Lower prices mean less government revenue and might put the future expansion of Rovuma LNG at risk. [Download]

How to make zones work better in Africa? (World Bank Blogs)

There was a broad consensus among the members on the panel [during the China-Africa Investing in Africa Forum] on the lessons of success of Chinese zones and on what can be applied in Africa; the reasons for limited success of earlier SEZs in Africa; and that promising future for African zones. For zones to attract investment, create jobs and have positive spillovers in the local economy, the panel agreed that the following conditions need to be met:

Uganda: The Shoprite exit was evident but just delayed (Daily Monitor)

The East African market, according to Waiyaki has become too competitive with fast-paced and ambitious expansions of regional retail giant mostly especially Nakumatt. However, Shoprite’s exit could have been informed by the organic growth of Kenyan–based regional giants including Nakamatt, Uchumi and Tuskys among others. The growth, notwithstanding that some, such as Uchumi have problems at home (Kenya), has been massive, overtaking Shoprite which had been in the country for about 15 years now.

Africa's next generation of multinationals? 9 firms that show wave of new kids on the block (M&G Africa)  

José Graziano da Silva: 'How bio-fuels can increase food security'  (New Times)

In some land-locked African countries, gasoline costs three times the global average, making fuel prices one of the main barriers to agricultural growth. Extending the use of bio-fuels in these regions could boost productivity and create new employment opportunities, especially in rural areas. The effect could be made even stronger if the additional demand for feedstock created by bio-fuels was met by family farmers and small-scale producers.

Ban welcomes UN Assembly’s endorsement of action plan on post-2015 development financing (UN News Centre)

The United Nations General Assembly on 27 July 2015 endorsed the new global action agenda for financing sustainable development adopted two weeks ago by a major UN conference, and Secretary-General Ban Ki-moon welcomed the move as a major step that firmly puts the world “on the path to a more prosperous, just and sustainable world for this and future generations.”

Mukhisa Kituyi: 'Five ways to ignite intra-African trade in services to support growth' (The East African)

EAC partner states look to benefit from more trade deals with the US (The East African)

Chinese financing to Mozambique increases 160 pct in 2 years (MacauHub)

Minister Tonela confident in use of local sugar by Mozambican soft drinks industry (Club of Mozambique)

Zimbabwe: Sign up, diamond firms ordered (The Herald) 

Karl P. Sauvant: 'The international investment law and policy regime - challenges and options' (E15Initiative)

Transnational corporations, Vol 22 is posted (UNCTAD) vol 1vol 2vol 3


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This post has been sourced on behalf of tralac and disseminated to enhance trade policy knowledge and debate. It is distributed to over 300 recipients across Africa and internationally, serving in the AU, RECS, national government trade departments and research and development agencies. Your feedback is most welcome. Any suggestions that our recipients might have of items for inclusion are most welcome. Richard Humphries (Email: This email address is being protected from spambots. You need JavaScript enabled to view it.; Twitter: @richardhumphri1)

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