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tralac’s Daily News Selection
The selection: Friday, 28 October 2016
Featured tweets from CFTA/TFTA-focussed discussions held yesterday in Geneva and Lusaka:
@SabineBohlke: Boosting intra African trade should become Africa’s mantra! AU workshop in Geneva on the Continental Free Trade Area; @EKangamungazi: CaritasZambia and @CUTS_Lusaka engaged stakeholders on their position on the TFTA agreement and what it means for Zambia. Sequencing is important.
tralac Newsletter: Trade rules assisting SMEs to compete better
Financing infrastructure in Africa: First STC on transport, intercontinental and inter-regional infrastructures, energy and tourism (AU)
The overall objective of the STC meeting (28 Nov – 2 Dec) is to assess progress and to achieve concrete advances in the financing of major infrastructure, notably those in the Priority Action Plan of the Programme for Infrastructure Development in Africa (PIDA/PAP), through decisions and consensus on investing in the preparation, structuring, implementation and risks mitigation of climate resilient infrastructure projects. The specific objectives include: (i) evaluation of the progress made by regional and international institutions in financing the energy, transport and tourism sectors projects, notably PIDA/PAP and regional projects and other AU flagship projects under the AU Agenda 2063; (ii) analyse constraints and how to strengthen national and regional capacities and to increase the participation of national and regional financial institutions in financing the development of the three sectors (domestic and regional financial resource mobilization); (iii) adoption of strategies on making Africa the preferred destination for tourism under the AU Agenda 2063. [Programme, pdf]
South Africa: Logistics Barometer Report 2016 (University of Stellenbsoch)
The Logistics Barometer provides a numerical analysis of logistics costs trends in South Africa supported by insights from logistics industry specialists and academia. The usefulness of calculating annual data lies in the fact that trends can be identified and applied by both operational and strategic analysts in the public and private sector for future planning, policy development and investment objectives on a macroeconomic level. The calculations in this edition are up to 2014, with an estimate for the 2015 year (2015e), and a forecast for the 2016 year (2016f).
Botswana: Draft National Development Plan (NDP 11) presentation speech
External sector development: The overall balance of payments has been in surplus for the entire NDP 10 period, except in 2010. However, the merchandise trade part of the current account was in deficit for all the years of the Plan, except 2013 and 2014. On the other hand, the Services Account was in surplus for the entire Plan period. A worrisome trend during NDP 10 was a steady decrease in the share of non-traditional exports, as part of total exports. For instance, while in 2009 the share of non-traditional merchandise exports was about 10%, it decreased to 8% in 2010 and reached 3% by 2013. This suggests that limited export diversification has taken place. In order to bolster economic diversification during NDP 11, particular attention should be on creating new and growing non-traditional exports. On the other hand, a modest increase in the share of exports of services was registered during the Plan period.
Kenya-Ethiopia: One-stop post to better trade in Marsabit (The Star)
Kenya is waiting for Ethiopia to complete construction of the one-stop border point between the two countries so they can be linked and start operations, a governor has said. Marsabit Governor Ukur Yatani said the centre will propel grow the county’s economy and promote development. Kenya and Ethiopia signed a bilateral agreement in 2011 to develop the joint border point and road that will enhance bilateral trade. The border post is funded by the African Development Bank at Sh843 million. The project will also link Marsabit to the Trans-Africa Highway that links Nairobi to Addis Ababa. The Sh843 million border project was set to be complete by May, but contractors sought an extension in the contract due to poor terrain that saw construction halting a number of times.
Chinese, French oil firms in talks over Uganda’s pipeline (IPPMedia)
China National Offshore Oil Corporation (CNOOC) and France’s Total are in final talks over the construction of Uganda’s oil pipeline that will run up to Tanga port. Li Yong, Executive Vice-President of CNOOC limited, in a meeting with Uganda’s President Yoweri Museveni said the oil firm was ready to undertake the US$4 billion pipeline project. Li, according to a State House statement issued on Wednesday, said they are in talks with Total regarding the necessary modalities to ensure the take-off of the project. [Bagamoyo port: Uncertainty hits Kikwete’s $11 billion ‘legacy’ project]
South Africa: Exporters encouraged to utilise more of AGOA tariff lines (dti)
According to the Director of Americas Bilateral Trade Relations in the International Trade and Economic Development Division of the Department of Trade and Industry , Mr Malose Letsoalo, South Africa is only utilising 141 tariff lines out of the 1835 that are there under AGOA. He added that with regards to the 3 400 non-reciprocal arrangements, South Africa was only utilising 459. “We have experienced a lot of change and diversification in terms of our exports to the United States of America market from just exporting mainly commodities between 1994 and 2000, to more value-added products since 2001 to date,” said Letsoalo. Export councils as well as provincial departments participating in the workshop expressed the need for collaboration, communication and increasing the partnership between the dti and the exporters. The workshop also resolved that Trade Invest South Africa within the dti leads the process of developing an action plan derived out of the Integrated National Export Strategy to ensure that the objectives are realised.
South Africa completes administrative process for SACU-MERCOSUR PTA (dti)
South Africa has completed all the administrative processes to facilitate the implementation of the SACU and MERCOSUR Preferential Trade Agreement as from 21 October 2016. In accordance with Article 36, the SACU - MERCUSOR PTA entered into force on 1 April 2016, 30 days following SACU’s acknowledgement of the notification from MERCOSUR that it had concluded the necessary legal requirements and South Africa will implement the Agreement retrospectively from the date of entry into force of the Agreement, 1 April 2016. SACU offered concessions on 1 062 tariff lines and MERCOSUR offered concessions on 1 052 tariff lines. In either case, the preference margins range between 100 - 10%. SACU offered a Tariff Rate Quota for four agricultural products, which will be accessible on a first come first serve principle with no permit requirements. The tariffs will be reduced immediately on entry into force of the Agreement. The PTA is the first trade agreement concluded by SACU as a single entity, following the SACU Agreement of 2002.
Zimbabwe: SI64 causes decline in net revenue collections - Zimra (Zimbabwe Independent)
The Zimbabwe Revenue Authority has blamed the introduction of Statutory Instrument 64 of 2016 (SI64) and rampant smuggling for the 6,9% slump in net revenue collections. Zimra’s third quarter revenue performance net collections were pegged at $854,1m, a 6,9% decline compared to the same period last year. The government had targeted to collect $917,3m.his figure was also a 2,7% decrease from the 2015 third quarter revenue collections. “The unsatisfactory performance was mainly due to revenue forgone through concessions, trade agreements and rebates amounting to US$150,7 million, and government policies, which were introduced to curb the influx of imports of designated manufactured products,” Zimra board chairperson Willia Bonyongwe said in a statement.
African Customer Due Diligence Repository Platform: update (Afreximbank)
Dr George Elombi, Afreximbank Executive Vice-President in charge of Corporate Governance and Legal Services, told participants that the high cost of conducting customer due diligence adversely affected the stability of the African financial sector and the productivity of corporate entities. “Financial crimes, compounded by weak corporate governance capacity, have the potential to derail legitimate economic activity and slow down the development of financial markets essential for optimal allocation of capital to support the structural transformation of resource-constrained African economies,” he said. He announced that Afreximbank was preparing to launch an online African Customer Due Diligence Repository Platform to provide a centralized source of primary data required to conduct customer due diligence checks on African counterparties. That platform would allow subscribers to conduct due diligences at a low cost, thereby decreasing the cost of trade finance in Africa.
‘Beef imported from Africa unlikely to meet Northern Irish farm standards’ (CTA)
There is a worrying level of beef being imported from Botswana in Africa, which is unlikely to meet Northern Irish farm standards, according to Ulster Farmers’ Union Beef and Lamb Chairman, Crosby Cleland. The level of Botswana beef imports coming through Belfast port has already reached 333t this year, he said. “Since this trade was first highlighted last year it has continued to grow, while domestic producers remain under pressure. For beef producers hit by poor market prices for much of this year, this is a worrying level of beef coming from a source unlikely to have farm standards equivalent to those in Northern Ireland. “Since food labelling and quality assurance have become big issues for consumers it is surprising so little is known about where this imported meat is sold.”
Abdul Majeed: ‘Africa promises plenty as global car hub’ (PWC/The Hindu)
PwC Autofacts expects light vehicle production to increase from about one million units produced in 2015 to 1.45 million vehicles in 2022 at an annual growth rate of 5.5 per cent. South Africa will continue to lead the surge from 5.84 lakh vehicles to 6.9 lakh in 2022. In the process, its share is expected to contract from over half the production as other regions enter the fray. Nigeria, for instance, is projected to nearly treble its light vehicle production from 27,000 units in 2015 to 75,000 units over the next seven years. Morocco, likewise, is expected to see numbers grow from 2.88 lakh units to 4.23 lakh in 2022 while Algeria will grow from 19,000 to 1.12 lakh units. Egypt is projected to nearly double output from 89,000 to 153,000 vehicles in 2022 while Ethiopia will be the only laggard with no big assembly expected in the coming years.
Trade ministers in Oslo weigh WTO options for Buenos Aires meeting and beyond (ICTSD Bridges News)
The Oslo mini-ministerial also provided the opportunity for some ministers from the WTO group currently negotiating a Trade in Services Agreement to gather in the margins to take stock of the talks, given the current target of concluding those negotiations by early December. Sources familiar with the meeting noted that this event was not a full or formal TISA ministerial, in light of the fact that only some ministers were present – namely those that were already participating in the main Oslo gathering. The TISA talks currently include 23 participants, counting the EU as one, with approximately half of that number present in Norway.
South Africa: trade and industry discussion with China’s National Development and Reform Commission (GCIS)
The Minister in the Presidency for Planning, Monitoring and Evaluation and Chairperson of the National Planning Commission, Jeff Radebe will (today) lead a delegation of Ministers who will host a high level Chinese delegation from the National Development and Reform Commission (NDRC) of China. The main objective of the meeting is to exchange views on issues of mutual concern relating to trade and industry agreements signed between South Africa and China during the FOCAC 2015, hosted in Johannesburg, and the 2015 Chinese State visit to South Africa.
Africa’s youngest billionaire banks on regional integration to boost expansion (The Africa Report)
Tanzanian billionaire Mohammed Dewji, who is head of Mohammed Enterprises Tanzania Limited (MeTL) Group, is spreading his trading, commodities and manufacturing businesses around East and Southern Africa, positioning them to benefit from regional integration. Dewji has his sights set on more than tripling his company’s revenue. “[Seven years from now] our revenue target is $5bn per year. We project that we will be employing 100,000 people,” Dewji tells The Africa Report. To do that, MeTL’s targets are in East and Southern Africa. MeTL executives have identified Burundi, the Democratic Republic of Congo (DRC), Malawi, Mozambique, Rwanda, Uganda and Zambia as countries ripe for investment. The company says investment in these countries will strategically position it to capture opportunities in three regional blocs.
Africa to host, for first time, the Academy on Labour Migration (ILO)
The 2016 ILO Academy on Labour Migration will be held in Johannesburg (5-9 December) to discuss, review and make recommendations on latest trends and development aiming at labour migration governance, strategies, policies and tools. The Regional Office for Africa and the International Training Centre of the ILO are convening this training opportunity to effectively address challenges and opportunities related to protection of migrant workers and their families, migration and development linkages, and strategic partnership for good governance around migration issues. [Regional Conference of International Association of Refugee Law Judges: address by Minister Malusi Gigaba]
Meeting of the PIDA Steering Committee (24-25 October, Nairobi, in French)
AfDB’s regional road safety workshop concludes today
SADC: 2nd newsletter detailing German cooperation (pdf)
Joint communique by League of Arab States, AU, UN on Libya (UNSMIL)
DRC: Government supports Freeport sale of Tenke copper mine
Malawi govt bans soft drink produced in Mozambique over health concerns
Q&A with Adriana Riccardi, head of Uruguay’s competition authority (UNCTAD)
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