tralac Daily News
S. Africa: Anti-dumping duties suspended for some countries (Poultry World)
This, says the minister, is in light of the rapid rise in food prices and the impact that the imposition of the anti-dumping duties may have on the price of chicken. According to the USDA, although the Commission investigating dumping found that poultry originating in these countries was dumped into the Southern African Customs Union market and recommended the application of anti-dumping duties, the Minister determined that “the imposition of these duties would have a negative impact on the poor”.
The current anti-dumping duties imposed against US bone-in chicken meat exports to South Africa outside of the Tariff Rate Quota expire on 23 November this year. The commission will consider information submitted by local industry to determine whether there is sufficient evidence to justify the initiation of a further review, or if the duties should expire as scheduled.
“The local poultry industry is sensitive to the plight of cash-strapped consumers and understands that food price inflation can negatively impact South Africa’s population. However, poultry producers also feel that the minister’s announcement flies against the spirit of the Poultry Sector Masterplan, which specifically listed tariff measures as an important pillar to put a stop to dumping,” said Izaak Breitenbach, GM of the South African Poultry Association Broiler Organisation, adding that the latest decision seems to demonstrate that dumping is “okay”.
SA’s farmers will be pushed to plant less because of Botswana, Namibia vegetable import bans (Business Insider South Africa)
South Africa is not likely to face a vegetable glut because of Botswana’s and Namibia’s import bans, as farmers in the country will be forced to plant fewer vegetables, a move that will hurt export revenue and lead to job losses in the sector. “South Africa is not likely to face a problem with oversupply as farmers are alive to the threat this poses to their revenue. What is more likely is that farmers may decrease the hectarage planted,” Christo van der Rheede, Agri SA’s executive director, told Business Insider SA, speaking about the impact of the long-term bans. Van der Rheede said South Africa can only absorb produce meant for Botswana and Namibia to a limited extent.
“In theory there are markets for South African products outside of [the] Southern African Customs Union (SACU, both on the continent and beyond. What remains to be seen is whether this can be arranged timeously, and whether it would be economically viable to do so,” said Van der Rheede. He said factors such as the condition of roads, rail, and ports must also be considered when factoring in whether other markets can viably absorb this season’s produce.
“It is disappointing that intra-regional restrictions have put South African farmers in this precarious position when the purpose of SACU is to foster open trade within the union,” he said.
Boost for Beitbridge border efficiencies, revenue flows (Bulawayo24 News)
INFRASTRUCTURE developments taking place on the road network and at the Beitbridge Border Post will enable more traffic to pass through the country and increase revenue inflows. Shipping and Forwarding Agents Association of Zimbabwe (SFAAZ) board chairman Godfrey Muswere said the ongoing refurbishment of the road network and the Beitbridge Border post would increase efficiency and boost revenue generation.
“Beitbridge is the biggest border post going to the North, and with the new roads that are being built, we will certainly get more traffic passing through the country, which is revenue for Zimbabwe,” he said. “When we have better infrastructure that means more efficiency for our operations.”
Exports on course to reach year-end target (Sunday Mail)
According to the Zimbabwe National Statistics Agency (ZimStat), exports grew 31 percent during the first half of the year compared to the same period last year. In the period, export revenue stood at US$3,3 billion compared to US$2,5 billion over the same period in 2021. Reserve Bank of Zimbabwe (RBZ) figures also show that trade volumes are growing. In the January-June period, service exports rose to US$176 million from US$103 million a year earlier. Imports increased by 18 percent to US$4,1 billion from US$3,4 billion in 2021. Although some might view growth in imports as unfavourable, it is encouraging to note that the bulk of imports have been machinery and equipment, as well as raw materials.
Government driven business reforms to spur development (Kenya News Agency)
The government has launched extensive business reforms across the country in an exercise aimed at creating a conducive investment environment for local and foreign investors in counties as a way of promoting industrial growth and manufacturing amongst the devolved units. Through the Ministry of East African Community and Regional Development (MEAC), the government has identified ten counties for piloting the reforms spearheaded by Directorate of Business Reforms and Transformation (BRT) with an aim of bolstering Kenya’s competitiveness as a choice destination for investors.
UK protests proposed Kenya ban on second-hand imports of buses, trucks (The East African)
fearing the embargo will cut the flow of used commercial vehicles from the European country. Betty Maina, the Industrialisation and Trade Cabinet secretary, says authorities in the UK are uncomfortable with the sanction on used vehicles, which was set to take effect from July 1 before it was frozen in court. An escalation of the differences between Kenya and Britain could affect the flow of goods between the two nations. Kenya and Britain inked a fresh trade deal in December 2020 allowing duty-free access of Kenyan goods to the UK market and to avoid a post-Brexit disruption. The protest will be handled by the Kenya-United Kingdom Economic Partnership Agreement (EPA) Council, Ms Maina said.
How Russia-Ukraine war hurts Kenya tea exports (Business Daily)
At the beginning of the year, it cost a tea exporter about Sh357,000 ($3,000) to ship a 40-foot container to Russia, Kenya’s fifth biggest market for the beverage. Today, it is about Sh952,000 to the nation and other neighbouring regions around the Black Sea. Europe may be miles away from Kenya, but the impact of the ongoing Russia-Ukraine war is being felt by the local tea farmers. The sharp rise in cost has been occasioned by the longer distance that the ships have to navigate to reach their final destination following the closure of the Black Sea route.
“If there is a sector that has been hit the hardest, it is tea. We have never witnessed such a huge jump in shipping cost in my history of exporting the beverage,” said Rodgers Lai, a Mombasa-based tea buyer. Mr Lai said high shipping costs have made Kenyan tea expensive in the world market, hence cannot sell competitively globally as enormous shipping costs have made the country’s tea more expensive.
Tanzania firms get nod to import raw material for wire products tax free (The East African)
Tanzanian companies have been granted exemption on imported products that attract 35 percent duty, barely a month after the EAC Common External Tariff came into force. In a legal notice signed by the EAC Council of Ministers chair Betty Maina, the companies can now import, at zero percent for a year, raw materials and inputs for the manufacture of wire products. The decision follows an application by Afriweld Industries, Tanuk Africa Ltd, MM Integrated Steel Mills and other firms for duty exemption. This came just as the region started to implement the four-band Common External Tariff (CET) structure that came into force on July 1.The structure has rates of zero, 10, 25 and 35 percent for all products imported into the EAC.
“A remission of import duty is approved for Tanzania for 12 months to apply a duty rate of zero percent for the specified manufacturers on raw materials and inputs for the manufacturers of wire products,” said Ms Maina, Kenya’s Cabinet Secretary for Trade and EAC.
The Association of Nigerian Licensed Customs Agents (ANLCA), has stated that the Central Bank of Nigeria’s forex prohibition list and the crashing of the Naira is responsible for the declines in cargo volumes at Nigerian ports. The submission by the agents was conveyed by Dr Kayode Farinto, Acting President, Association of Nigerian Licensed Customs Agents (ANLCA) in a television programme monitored by the News Agency of Nigeria on Thursday in Lagos. He stated that the apex bank was encroaching on fiscal policy, a purvey of government, which led to the decline in the importation of cargo to Nigeria.
“Before now, Nigeria had lost 45% of its cargo to Lome, because, they have a deep seaport. But with the coming of the Lekki Deep Seaport, we will witness berthing of large vessels in Nigeria,” he said. He advised the government to establish a ministry to monitor the African Continental Free Trade Agreement (AfCFTA) in order to prevent Nigeria from turning into a garbage dump.
Expansion in the non-oil sector pushed Nigeria’s gross domestic product (GDP) to 3.54 percent year-on-year in real terms in the second quarter of 2022. According to data released by the National Bureau of Statistics (NBS), the development is an improvement from 3.11 percent growth recorded in the first quarter. On a year-on-year basis, NBS said the second quarter of 2022 growth rate decreased 1.47 percent points from 5.01 percent growth rate recorded in the corresponding quarter in 2021. The International Monetary Fund (IMF), in its World Economic Outlook (WEO) for July 2022, retained a projected economic growth of 3.4 percent for Nigeria in 2022. But what sectors are behind the uptick in the nation’s GDP?
Diversification as necessary policy option for de-risking Nigeria’s economy (The Guardian Nigeria)
Amid the backdrop of rising uncertainty around the globe, Nigeria managed to pick up a 3.54 per cent growth in the second quarter (Q2) of the year. The Q2 performance is 43 basis points (bps) ahead of the previous quarterly data and a slight top-up of the 3.4 per cent yearly growth projected by the International Monetary Fund (IMF). The outlooks of several regional economies are blunted by rising uncertainty, spiraling prices and geopolitical tensions. These are already pulling growth figures towards the negative territory. For instance, the world’s largest economy contracted by 0.6 per cent in Q2, coming after a steep 1.6 per cent slump in Q1. In the same period, China’s growth waned to 0.4 per cent from 4.8 per cent in the previous quarter, forcing its central bank into monetary easing.
speaking at the 33rd Seminar for finance correspondents and business editors held concurrently in Abuja and Lagos at the weekend, economists said deliberate efforts must be made to address these imbalances such that both sectors can contribute equally to FX earnings and public revenue. The experts picked RT200 FX Programme and other development roles of the Central Bank as a pointer to likely policy the government could explore to consistently improve the contribution of non-oil to FX earnings.
At the seminar tagged, Policy Option for Economic Diversification: Thinking Outside the Crude-Oil Box’, a leading economist, Dr. Biodun Adedipe, said the current structure is hostile to inclusive growth, adding that “a cocktail of policy options” must be adopted to break the jinx to position the economy for sustainable growth.
Declaring the seminar open, the Governor of the Bank, Godwin Emefiele, said the quest for building a more sophisticated economy anchored on agriculture, micro, small and medium enterprises (MSMEs), industrial and manufacturing exploits have become the major components of the bank’s price stability policy thrusts.
He said that Nigeria has largely depended on the oil sector for revenue generation over the past four decades and that the sustained decline in production has continued to undermine the performance of the economy. This, he said, necessitated the drive to diversify to other non-oil sectors.
The Brazil and Nigeria trade relations recorded $280.81 billion in export earnings in 2021.However, Nigeria’s export earnings to Brazil was $47.2 billion in the year under review. In the area of imports in 2021, Brazil was higher with import earnings of $219.41billion, while Nigeria recorded earnings of $52.1 billion. The Brazilian Ambassador to Nigeria, Francisco Soares Luz, disclosed this yesterday, at a media briefing in Lagos, to announce the forthcoming Brazil-Nigeria business forum 2022. The forum is to take place in Lagos at Eko Hotel and Suites, as part of activities marking the Brazil’s Bi-centennial anniversary.
He said Brazil remains committed to strengthening trade relationship with Nigeria, stating that in 2021 some of the import commodities were iron ore, soybeans, crude petroleum, sugar, and beef, while the export commodities were refined petroleum, chemicals, crude oil, vaccines, fertilizers.
On 22 August, the Secretary General of the World Customs Organization (WCO), Dr. Kunio Mikuriya, participated as a panelist in an online side event titled “Deepening Regional Economic Integration, AfCFTA (African Continental Free Trade Area) and Trade Facilitation in the Post COVID era”, co-organized by the World Bank Group (WBG) and Japan International Cooperation Agency (JICA), in the context of the 8th Tokyo International Conference on African Development (TICAD).
The side-event saw the participation of high-level representatives from the International Organization for Migration (IOM), JICA, the AfCFTA Secretariat, as well as the private sector. The speakers discussed the successful realization of the AfCFTA in the post-COVID era, as well as challenges, examples of efforts, potential solutions, and future directions for trade facilitation and border control in support of the AfCFTA. They also discussed on strategies to find a common understanding and foster momentum for deepening regional integration.
Secretary General Mikuriya explained the current situation surrounding Customs administrations around the world, such as supply chain disruption caused by the COVID-19 pandemic. He expanded on the sharp rise of the number of the E-commerce packages, and emphasized the importance of an efficient trade management, supply chain resilience for the potential emergency in the future and Customs role, including the following aspects: digitalization of border procedures towards paperless trade and contactless clearance to keep supply chain open; Customs role in risk management at borders for public health and security; coordination among border agencies and cooperation between Customs and business; regional integration through application of tariff reduction based on the rules of origin to identify the eligibility of preferential tariff; capacity building for Customs administrations, in cooperation with the EU, JICA and other donors; Trade facilitation measures, including OSBP with standardized operations; and the interoperability of Customs IT systems for effective sharing information of data.
The government of Japan and the African Development Bank have announced a $5 billion financial cooperation under the fifth phase of the Enhanced Private Sector Assistance for Africa initiative (EPSA) from 2023 to 2025. Given the importance of food security, Japan and the African Development Bank will add agriculture and nutrition as a priority area under EPSA 5.
South African deciduous fruit may have access to new markets in the coming years, thanks to two new trade agreements. In the meantime, however, a new tariff for fruit has been introduced in East Africa. Trade with other African countries has historically been difficult due to logistics, governance, and complex border control requirements. However, these countries hold significant potential for South African exporters. If the two massive African trade agreements currently nearing completion can address challenges and barriers to trade, South African companies could benefit from a larger playing field. These trade agreements are the African Continental Free Trade Agreement (AfCFTA) and the Tripartite Free Trade Agreement (TFTA). Though in their final stages, neither of these agreements are functional yet. It is expected that duty-free trade will only begin in 2023 or early 2024.
In 2020, 23% of South Africa’s world exports were to the rest of Africa, but of that, only 3% of South Africa’s world exports were to African countries that are not members of SADC. Imports from Africa to South Africa predominantly consist of crude petroleum oil, accounting for 37% of South Africa’s overall African imports. This illustrates that the SADC trade agreement has facilitated trade, and the trade balance has been in SA’s favour.
The Secretary General, Maritime Organisation of West and Central Africa (MOWCA), Dr. Paul Adalikwu, has received support from the government of Togo to promote shipping as a core element for the success of African Continental Free Trade Area (AfCFTA).
Adalikwu, who was in Lome at the instance of the Togolese Minister of Maritime Economy, Fisheries and Coastal Protection, Mr Edem Kokou Tengue, also received reassurance on the West African country’s commitment to actualise the transformation of MOWCA to African Maritime Organisation (AMO).
According to a statement,Tengue also expressed his country’s readiness to contribute to the timely take off of the Regional Maritime Development Bank, whose charter they had assented to, with a promise to diligently consider the appointment of Togo’s representative of the bank’s Board of Directors and pay up his country’s arrears of contribution to MOWCA.
The Southern African Development Community Project Preparation Development Facility (SADC PPDF) has approved a total of US$20.2 million for the preparation of 12 regional projects covering energy, transport and water sectors, and these are expected to generate at least US$3 billion in infrastructure investment. The projects have a huge potential of unlocking business opportunities across the infrastructure value chain, not just in advisory services, but also financing, construction, equipment supply, technology and skills as well as operations and maintenance.
Among the projects approved by the PPDF and funded by the European Union (EU) and KfW Bank of Germany are the Second Alaska-Sherwood powerline in Zimbabwe; the Angola-Namibia transmission interconnector; Kasemeno-Mwenda toll road and Luapula hydro power development both between DRC and Zambia, Mulembo Leyla Hydro in Zambia; the North South Rail Corridor involving Botswana, DRC, South Africa, Zambia and Zimbabwe. The projects also include Mauritius Wastewater Pumping Station and Wastewater Treatment Plant; MOZISA power interconnector project between Mozambique, South Africa and Zimbabwe; Africa Green Co projects (all SADC Member States); Kazungula Water Supply and Sanitation Project (Zambia); Lomahasha Namaacha Cross (Eswatini and Mozambique); and Development of Guidelines and Standards for Renewable Energy Projects including a funding and Incentive strategy in Mauritius.
The PPDF aims to assist SADC to address the implementation of the SADC Regional Infrastructure Development Master Plan (RIDMP), which will promote and contribute to enhancing regional economic integration in the Region.
For Africa to improve its competitiveness and innovation on the global arena, it needs a good and affordable internet. For that to happen, Africa needs to rely on local internet rather than international links.
Senior Director of Internet Technology and Development at Internet Security, Michuki Mwangi outlined how accessible and affordable internet end user experience increases adoption and dependability. “Data shows that we still have more than 40 per cent of the population in Africa still not connected and there’s work to be done in that space.
“There are different business models that can actually be sustained in those areas because the areas that are yet to be connected are those in rural parts that are harder to reach; the traditional business cases don’t apply and so we need to look at different business cases and also technologies that can actually allow to connect those people because they’re in harder area to reach.”
Funding secured by Nigeria, Egypt, South Africa and Kenya has continually increased over the years: from a 79.4% share in 2018, to 87.5% in 2019 and then 89.2% in 2020. These figures stand in sharp contrast to the cash raised by countries like Ethiopia, the Democratic Republic of Congo and Tanzania, all of which still record a low level of start-up investment activity. While capital funding is undoubtedly on the rise in Africa, it is becoming more concentrated in the big-four countries. According to the 2021 Disrupt Funding report, non-big-four African countries raised $170,607,500. That is just 7.9% of the continent’s total.
The report also indicates that more than 40% of that funding was secured by start-ups from Ghana, Morocco and Tunisia. According to one report, Algeria raised $30 million in start-up funding; Morocco raised $29 million and Tunisia raised $23 million in venture funding in 2021. These investments are relatively minor compared to the funding raised by the big-four countries in Africa year after year.
Invest in agriculture statistics – AfDB implores Africa (Farmers Review Africa)
AFRICA should invest in quantity, quality and heightened dissemination of agricultural rural information for sustained food security and endeavour to insulate the continent from among other headwinds, food versus. Bio-fuels, global warming, environment, gender, and food security, COVID 19, the African Development Bank says. Despite the continent’s potential to remain sustainable and food secure and further improve the rural economy, the lack of reliable data and capacity to disseminate to various end-users has dwarfed the continent’s growth despite the various available initiatives AfDB and other players have initiated over the years. The emerging of new data requirements to inform policy on the emerging development has worsened the situation.
Calling for just, well-financed climate action in Africa (Africa Renewal)
Climate change is an increasing threat to Africa, and your appointment comes at a time when Africa will be hosting the global climate talks (COP27) in November? Ms. Kenewendo: Given that Africa has contributed little to global emissions so far, but it is already being disproportionately affected by the impacts of climate change, mine is to push for African countries and non-State actors to be active leaders in driving and leading action towards a managed, just and financed transition. A climate action-oriented path offers Africa the opportunity to avoid the mistakes of a totally high carbon industrialization and seize the opportunity to leapfrog into a new economy and a better form of growth that can deliver on both its development and climate goals. We are focused on highlighting opportunities that exist in this space; new industries, jobs and development.
Tanzania, Kenya to miss out on China debt relief plan (The East African)
Tanzania could join Kenya on a list of countries that will be left out of the Chinese debt relief deal at the end of this year by virtue of their lower-middle-income status even as the East African nations grapple with a growing debt burden. Chinese Foreign minister Wang Yi has announced that the world’s second-largest economy would forgive 23 matured interest-free loans for 17 undisclosed African nations that are classified as least developed countries (LDC).Last week Chinese authorities in Nairobi said Kenya, which is struggling with a debt of over Ksh8.6 trillion ($72.26 billion), was left out of the deal as it is classified as lower-middle-income. Tanzania also transitioned from low-income to lower-middle-income status in July 2020 after experiencing over 20 years of sustained economic growth.
Beijing made the announcement of the new debt relief plan on August 18 during the Forum on China-Africa Cooperation as it seeks to boost ties with its African allies.
What would BRICS expansion mean for emerging markets? (The Borneo Post)
As emerging markets recover from the Covid-19 pandemic and face financial headwinds due to interest rate hikes in the US, the BRICS group – Brazil, Russia, India, China and South Africa – is looking to expand its membership to tackle shared challenges. At the 14th BRICS Summit held in July, China, Russia and India discussed the potential entry of Egypt, Saudi Arabia and Turkey, which are reportedly preparing applications. This announcement came after the disclosure in June that Iran and Argentina had already applied with support from China. In addition, international media has reported that Algeria, Bangladesh, Indonesia, Mexico, Nigeria, Sudan, Syria, Pakistan and Venezuela have expressed interest in joining the organisation.
An online meeting hosted by China in May of potential BRICS+ applicants included the foreign ministers of Argentina, Egypt, Indonesia, Kazakhstan, Nigeria, the UAE, Saudi Arabia, Senegal and Thailand. It is unclear who will join and when, as there is no formal process for welcoming new members, and any expansion would likely take place in piecemeal fashion. However, BRICS expansion could offer emerging markets the opportunity to build new economic synergies.
Major economies sharply increased support for the production and consumption of coal, oil and natural gas, with many countries struggling to balance longstanding pledges to phase out inefficient fossil fuel subsidies with efforts to protect households from surging energy prices, according to analysis released today by the Organisation for Economic Co-operation and Development and the International Energy Agency.
New OECD and IEA data show that overall government support for fossil fuels in 51 countries worldwide almost doubled to 697.2 USD billion in 2021, from 362.4 USD billion in 2020, as energy prices rose with the rebound of the global economy. In addition, consumption subsidies are anticipated to rise even further in 2022 due to higher fuel prices and energy use.