News
tralac’s Daily News selection
The selection: Wednesday, 10 February 2016
Rich People Poor Countries: the rise of emerging-market tycoons and their mega firms (PIIE)
In Rich People Poor Countries, Caroline Freund identifies and analyzes nearly 700 emerging-market billionaires whose net worth adds up to more than $2 trillion. Freund finds that these titans of industry are propelling poor countries out of their small-scale production and agricultural past and into a future of multinational industry and service-based mega firms. And more often than not, the new billionaires are using their newfound acumen to navigate the globalized economy, without necessarily relying on political connections, inheritance, or privileged access to resources. [Selected chapters and sections are provided for preview only]
Tanzania's richest 10% own the economy - PM (IPPMedia)
Welcome aboard the West African Express: starting in Abidjan, Côte d'Ivoire and ending in Benin (multimedia, France24)
A colonial-era dream may become a reality. Bankrolled by French industrialist Vincent Bolloré, the €2.5 billion- and 3,000-kilometre-long rail network is set to cover five countries, from the port of Abidjan in Ivory Coast, via Niger, to the seaside of Benin. Against the backdrop of political instability and security issues, Bolloré's group project has also been fraught with controversy, including accusations of neo-colonialism.
East African countries agree to set-up of cargo control unit (Daily Nation)
Four East African countries on Tuesday agreed to fast-track implementation of a common customs and transit cargo control framework to enhance regional trade. Commissioners-general from the Kenyan, Ugandan, Rwandan and Tanzanian revenue authorities said adoption of an excise goods management system would curb illicit trade in goods that attract excise duty across borders. They said creation of a single regional bond for goods in transit would ease movement of cargo, with taxation being done at the first customs port of entry.
Top KPA, port police and tax officials replaced in shake-up (Business Daily)
Top management of agencies in charge of security and revenue collection at the port of Mombasa were Tuesday sent packing as President Uhuru Kenyatta moved to seal leakages and shore up customs tax receipts from the facility. Mr Njiraini said the agency had replaced 13 key managers involved in port operations, including those based at freight stations and transferred 50 others who have been manning the Mombasa-based CFSs.
Related: George Omondi: 'Management reforms at port of Mombasa must be incisive' (Business Daily), KPA sackings long overdue (editorial comment, Daily Nation)
Kenya mulls joining China-led lender (The Star)
Kenya is studying rules and conditions for joining China-led Asian Infrastructure Investment Bank as she looks to widen infrastructure financing space in a bid to narrow the yawning gap. Enrolling into the Asia-focused AIIB is however not an immediate plan, Treasury CS Henry Rotich said, citing other options including African Development Bank-led Africa50 Infrastructure Fund.
I will leave power after East Africa is united - Museveni (Daily Monitor)
President Museveni yesterday defended his long stay in power and campaign to extend his 30-year presidency for another five years, saying he needs to help East African countries achieve a federation. “I am here to see whether we can help you get the East African federation so that we have a critical mass of strength that can guarantee your future, our future and our children’s future. But not talking about presidency,” Mr Museveni said. He said a single sovereign state of East Africa, which will include Burundi, Kenya, Rwanda, Uganda and Tanzania, is his target and must be achieved.
Tanzania: Employers, trade unions differ on Tanzania's position regarding foreign workers (IPPMedia)
According to EATUC chairperson Francis Atwoli, the government was right to conduct a thorough vetting of foreigners wishing to work in Tanzania. However, Atwoli’s sentiments were disputed by East African Employers Association chairperson Rosemary Ssenabulya who faulted Tanzania for “locking out” other East Africans from the job market. According to Ssenabulya, such a move was going against the East African Community regional market protocol which advocates for free movement of labor across the borders of member states. She urged Tanzania to instead emulate Rwanda’s apparent commitment to the protocol.
Mozambique: Economic growth hits 20-year low in 2015 (StarAfrica)
Mozambique’s National Statistics Institute says the country’s gross domestic product rose 5.6% in the last quarter of 2015, registering annual economic growth of 6.1%, 1.1% points down from the figure for the previous year. The area contributing most to economic growth, according to the INE, was the secondary sector, with a growth of 8.5%, with electricity and water doing best at 13.9%, followed by construction with 7.4%. The primary sector grew by 6.6%, “underpinned by mineral extraction,” increasing over 8.8%, and the tertiary sector posted a positive performance of 5.9%, “driven by the financial, trade and repair services branches”.
New SADC regional standards for HIV care along road transport corridors (Health Systems Trust)
The purpose of these standards is to provide guidance to MS and implementing partners from both the public and private sectors in delivering high-quality health services to LDTD, SW, and people living along road transport corridors in SADC. They are intended to improve access to HIV and other health services by these target populations, who are at greater risk of HIV infection. The standards describe service delivery models and the minimum package of services, and define roles, responsibilities, and management mechanisms to facilitate sound and sustainable implementation.
Southern Africa improves on visa openness (Southern Times)
The United Nations World Tourism Organisation 2015 Visa Openness Report shows that 29% of visitors travelling to the sub-region do not need to have a visa. However, 71% of the world’s population need traditional visas to visit countries in Southern Africa and none can access a visa on arrival or an eVisa. East Africa, together with South-East Asia, has also remained the most open sub-regions in the world because of the large number of visa on arrival (52% of the world’s population in average) and the considerable number of visa exemptions (7%) and eVisa alternatives (9%). Only 33% of visitors need a traditional visa.
SADC approves KAZA-ATFC integrated development master plan (Angola Press)
The participants [Angola, Botswana, Namibia, Zambia, Zimbabwe] congratulated Zambia and Zimbabwe for the successful completion of the pilot phase of the visa of KAZA-ATFC. The said countries have submitted a joint report, which will be the subject of consultations in the remaining member countries. The note stresses that the ministers expressed big concern about the sharp increase in poaching in KAZA-ATFC area, with particular emphasis on the slaughter of elephants. Ministers discussed the financial sustainability of the organization strategy and called on the timely payment of membership fees.
COMESA and the Corporate Council on Africa renew MoU to promote trade
The Common Market for Eastern and Southern Africa, through the COMESA Business Council, and the Corporate Council on Africa strengthened their working alliance by renewing their Memorandum of Understanding, which sets out how they will enhance regional integration and cooperate in areas of trade promotion and private sector development. The MoU is valid for three years. The cooperation is expected to establish linkages between COMESA business associations and the chambers of commerce and other relevant business associations in the United States of America.
US-COMESA trade and investment council meeting: update (Times of Zambia)
Food suppliers pledge to improve quality standards to increase local sourcing (COMESA Business Council)
The Local Sourcing for Partnerships Project, Zambia Chapter, held the first training from 25-30 January at Taj Pamodzi Hotel. The training workshop was organized by the COMESA Business Council in collaboration with the Zambia Association of Manufacturers. The event is the first in a series organized by CBC with support from the Investment Climate Facility for Africa, and USAID-IPAA, targeting local small growth companies in the agro-processing sector. The training brought together 67 local agro-processing suppliers.
India may extend LoCs to some African nations in agri sector (Economic Times)
Commerce Secretary Rita Teaotia said huge opportunities exists in agriculture sector in India and Africa. "We hope to extend lines of credit to joint venture agri business initiatives in Africa to deepen our engagement in the agri sector particularly in LDCs (least developed countries) and thereby help to support food security in both our regions," she said at the India Africa AgriBusiness Forum organised by Ficci. "We now provide 98.2% of our tariff lines (products)...to LDCs. Out of the 34 LDCs in Africa, 21 countries have already begun to avail the benefits of the scheme and 13 are yet to become beneficiaries. We sincerely hope these countries too will come on board soon and use the access to India's market," she added.
Promoting African agribusiness development: UNIDO, MASHAV cooperation (UNIDO)
The United Nations Industrial Development Organization and Israel's Agency for International Development Cooperation, Ministry of Foreign Affairs (MASHAV), will further advance joint activities, notably in the field of agribusiness development, especially in Africa. UNIDO and MASHAV will cooperate in providing technical assistance, capacity building, consultancy and demonstration projects to governmental entities and civil society organizations.
Related: Saudi Arabia eyes investment in Zambia's agriculture sector (The Post), Iran seeks to develop agriculture in Africa after sanctions lifted (African Business Review)
WTO Committee on Agriculture: implementation of the NFIDC decision concerning food aid (WTO)
At the tenth Ministerial Conference of the WTO (MC-10) at Nairobi, Ministers reaffirmed their commitment to fully implement the NFIDC Decision. WTO Ministers at MC-10 simultaneously also adopted the Decision on export competition which states that nothing in this Decision can be construed to diminish in any way the existing commitments contained in the NFIDC Decision nor shall the monitoring and review of the latter be affected.
Lapsset legal framework is elephant in the room (Business Daily)
If the proposed Lapsset pipelines are built according to plan, they will traverse more than one sovereign territory and be subjected to multiple laws and regulations. A robust treaty aimed at levelling the playing field will be absolutely necessary to facilitate an effective transit pipeline system and avert disagreements between Kenya and her neighbours.
Financial channels, property rights, and poverty: a Sub-Saharan African perspective (World Bank)
Looking at a sample of 37 countries in Sub-Saharan Africa from 1992 through 2006, the paper suggests that financial deepening is associated with lower poverty through different channels depending on the strength of property rights. In the absence of well-defined and enforced property rights, wider access to saving and risk-sharing instruments is accompanied by a reduction in poverty. Only once property rights grow stronger is credit associated with lower poverty.
Rethinking development strategies after the financial crisis: country studies and international comparisons (UNCTAD)
In this second volume, four countries are selected based upon the role that they play in the developing world and the current discourses on development: Brazil, Chile, China and India. To a certain extent, they all represent development success stories, at least for a considerable spell of time.
India pushing for a WTO Trade Facilitation Treaty on Services (Economic Times)
India is pushing for a trade facilitation agreement on services similar to the one on goods at the World Trade Organization to liberalise services trade, especially in areas developing countries are interested in, commerce secretary Rita Teaotia has said. Commenting on TFA on goods, which is yet to be ratified by India, the commerce secretary said that most of the consultation is complete and it would be ratified "at the earliest".
Zambia: More Great Lakes region exports underway (Times of Zmbia)
SA heading for policy discouraging trade through new bills (Business Day)
President Zuma sets up task team to tackle jobs, growth (Eurasia Review)
Intra-Africa trade to reduce donor dependence: Kagame (multimedia, New Times)
China’s current account in 2015: a growing trade surplus (PIIE)
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