News
tralac’s Daily News selection: 26 May 2015
The selection: Tuesday, 26 May
Featured report: African Economic Outlook 2015
Economic Outlook - five thematic chapters
The chapter, Trade policies and regional integration in Africa, also examines the link between regional integration and spatial economic development, highlighting the impact of integration on industry location in Africa. Regional integration also generates spatial development, and regional institutions play a key role promoting spatial development and inclusion. Regional integration should help spread the gains from closer ties to a wider number of countries and regions. The key observations are intended to help policy makers focus on this, especially the need to help least developed and landlocked countries.
Regional development and spatial inclusion - three thematic chapters
Adopting a place-based approach will help policy makers articulate sectoral policies more effectively for structural transformation. This chapter proposes a seven-step methodology to crafting development strategies, stressing four main areas of improvement: designing informed policies through better statistics; defining integrated strategic priorities through regional foresight studies; building capacity at multiple levels of government; and mobilising adequate financing for regional economic development at both local and national levels.
Country notes: Each profile includes synopses of the overall state of the country, recent economic developments, macroeconomic policy, structural issues, the political and social context, human development, one sector relevant to development and vital country statistics. [Statistics]
Gender Equality Index for Africa: launched yesterday in Abidjan (AfDB)
The @AfDB_Group has invested $32bn across Africa (@AfDB_Dominic)
Intra African trade as % of total trade by that regional grouping (@prepaid_africa)
Ethiopia, Nigeria, Zimbabwe in tight race to become new AfDB chief; battle could break 'unwritten' rules (Mail & Guardian Africa)
Bank to the future: new era at the AfDB (Africa Research Institute)
India signs replenishment of technical cooperation agreement with African Development Bank Group
On Africa Day, UN chief spotlights continents’ achievements, reflects on challenges of 2015 (UN News Centre)
African countries to stand up to mega-trading blocs (Commonwealth Secretariat)
Senior officials and experts will meet to consider the future of African trade in light of the emergence of mega-trading blocs which exclude more than 160 countries from regional trade negotiations. The meeting organised by the Commonwealth Secretariat in collaboration with the International Institute for Sustainable Development will take place in Nairobi from 26 to 27 May 2015. Participants will look at ways to ensure the trade interests of African countries are taken into account at global and regional levels. The Commonwealth Secretariat will present the first draft of its Policymakers Handbook on Regionalism and Mega-Trading Blocs at the meeting.
Kenya: Business reforms key to new Africa growth (Business Daily)
Africa enters its 20th consecutive year of economic expansion, with the World Bank forecasting that the region’s GDP growth will remain steady at 5.1% through to 2016. Africa’s collective GDP is now roughly equal to Brazil’s or Russia’s, and the continent is among the world’s most rapidly growing economic regions. While today we are one of the fastest growing economies in the world, others are apprehensive about whether our steadily expanding economy is sustainable and inclusive. Creating an enabling environment for business through instituting legal and regulatory reforms is critical to realising Kenya’s goal of sustainable industrialisation and inclusive growth. [Commentary by Adan Mohamed, Kenya’s Cabinet Secretary of Industrialisation, Enterprise and Development]
Kenya: Budget office differs with State on 2015 economic growth projections (The Standard)
The Parliamentary Budget Office has dismissed the Government’s projections on this year’s economic growth, becoming the first public body to poke holes in Kenya’s prospects. “A GDP growth estimate of 7.0 per cent in 2015 is unlikely to be met due to exogenous shocks, such as inadequate rainfall and the weak outlook of global economy. It is our considered opinion that the economy will grow by 5.6 per cent in 2015, rising to 6.0 per cent in the medium term,” the report notes.
Kenya: Import costs set to rise as shilling hits new three-year low (Business Daily)
AfDB 2015 economic outlook gives East Africa best growth prospects (New Times)
Regional body tips Tanzania as next EA economic powerhouse (Daily News)
Tanzania has high potential to become the economic powerhouse in the East African region given her natural wealth and strategic geographical positioning, but there are challenges to overcome before it can realise its potential. This is the observation of the TradeMark East Africa, Chief Executive Officer, Frank Matsaert whose organisation is assisting East African Community (EAC) member states, Tanzania, Kenya, Uganda, Rwanda and Burundi to promote trade and integration.
TMEA’s second country programme is expected to begin in 2017 after the expiry of the current programme, whose main highlights include the 593 million US dollar modernisation project of the Dar es Salaam port it partnered with the World Bank and the British Department of International Development. He said they would also focus on activities to improve cross border trade and continue with improving capacity of institutions dealing with regional integration.
Zimbabwe: Platinum weighs down trade figures (The Herald)
Zimbabwe’s trade deficit with key trading partners continues to grow after the country’s exports for April declined to $185,9 million from $188,7 million recorded in the prior month, latest Zimstat data has shown. The drop was mainly due to the decline in mineral exports after mining companies’ suspended exports in April following the introduction of the 15 percent levy on un-beneficiated minerals. For April 2015, Zimbabwe’s total exports were valued at $185,9m, while the country’s imports were $465,8m leading to a deficit of $279,9m. Total imports for the first four months of the year stood at $2,03bn against exports for the same period of $902,4 million.
South Africa GDP growth slows to 1.3% as manufacturing slumps (Bloomberg)
South Africa’s economy, the continent’s second-largest, grew at a slower pace in the first quarter as power outages curbed manufacturing output and farming output contracted. Gross domestic product rose an annualized 1.3% from the previous quarter, when it expanded 4.1%, the statistics office said in a report released in Cape Town on Tuesday. The median estimate of 19 economists in a Bloomberg survey was 1.5%. Manufacturing fell an annualized 2.4% in the first quarter and agricultural output contracted 16.6%, the statistics office said. Mining rose 10.2%, while financial services expanded 3.8%.
Trading in chaos (Greenpeace Africa)
In its new report published today, Trading in Chaos, Greenpeace Africa reveals the findings of two years of investigations into the operations both at home and abroad of one of the key players in the DRC logging chaos, Lebanese-owned Cotrefor. The results are a depressing cocktail of unpaid taxes, shocking mistreatment of employees, rampant irregularities in operational procedure and exceeding allocated quotas of the endangered tree species Afrormosia that are permitted to be logged.
High freight and storage costs hurting regional trade, say shippers (Daily Nation)
An audit conducted by the Shippers Council of Eastern Africa on companies drawn from a cross-section of segments has revealed where the traders go wrong in logistics leading them to incur huge losses that could otherwise be easily avoided. According to the Pilot logistics survey report, most companies have not implemented a fully integrated logistics system. The firms mostly focus more on third-party agencies to run their transportation and warehousing necessities.
UK pledges further support towards port of Mombasa (TradeMark East Africa)
DHA grants reprieve for SADC direct-transit pax (SA Tourism Update)
South Africa’s neighbouring countries have breathed a “cautious” sigh of relief as the Department of Home Affairs has revealed that no supporting documents – including an unabridged birth certificate – will be needed for travellers under 18, who are in direct international transit, passing through SA’s international airports. Neighbouring countries have been bracing for the impact that the new South African immigration regulations for minors could have on their tourism industries, as South Africa is an important feeder hub into the SADC region.
Mozambique is African Number 5 in FDI: most of the US$9bn went to real estate projects
In Mozambique, where the International Monetary Fund estimates a 7% growth this year, US$9bn in capital investments was received last year, the majority of which was devoted to real estate, a sector driven by the plans to build over a dozen shopping centres by Belgian company Pylos and by the investment projects of African company Atterbury Property Developments in the cities of Beira, Pemba and Nacala
Botswana: Millers warn phasing out wheat import levy will flood market with imports (Sunday Standard)
Government is bracing for a backlash following the announcement of a reduction in wheat levy, which local millers believe will contribute to dumping and in the long run kill the domestic economic diversification drive. The Ministry of Trade has decided to phase out the 15 percent wheat levy over a period of 10 years—a move that has irked the Maize and Wheat Millers Association (MWMA) and Botswana Bakers Association. The position of the two is that the levy should be retained to protect local millers from dumping.
Nigeria loses over $2bn annually to smuggled poultry products (ThisDay)
The national president of the Poultry Association of Nigeria, Dr. Ayoola Oduntan, explained that over 1.2m tonnes of smuggled poultry products, which are mainly frozen chicken and turkey, has continued to impact negatively on poultry farmers in the country. He warned that the industry is also threatened by the negative of the Economic Partnership Agreement (EPA) and the introduction of the Common External Tariff discouraging local production.
Tunisian, Nigerian manufacturers to explore trade opportunities (ThisDay)
Regional co-operation on taxation: avoiding harmful tax competition (New Era)
Recently, SADC drafted guidelines for tax incentives and indirect taxes that are expected to be presented at the next Committee of Ministers’ meeting scheduled for next month. If adopted by the committee, it will be in the discretion of member states to implement these guidelines domestically.
It was noted that the current initiatives to ensure that ex-miners received their benefits involved a number of countries in the SADC region. As such it was important to establish a regional mechanism at the SADC level for cross border remittances of benefits for migrant workers. Furthermore, stakeholders were encouraged to explore areas of synergy on other regional processes and initiatives such as the SADC TB programme in Mining. At a regional level, Ms Phiri noted that, the Regional Indicative Strategic Development Plan (2015-2020) recognised ex-miners challenges and as a result it was hoped that the SADC Cross Border Portability Instrument for Social Protection will be implemented by 2018.
Safety nets in Africa (World Bank)
Safety Nets in Africa presents the rationale for targeting safety net programs to households that are chronically food insecure or vulnerable to food insecurity. Seven case studies (Cameroon, Ghana, Kenya, Malawi, Mozambique, Niger, and Senegal) are then presented that document a variety of approaches and experiences in country targeting efforts, taking into account country needs and existing programs. [Download]
The politics of redistributive transfers (GIGA)
JK reconvenes EAC summit on Burundi (The Citizen)
Joint statement by EAC-COMESA, ICGLR, AU and UN on the situation in Burundi
Burundi crisis threat to EA stability, says COTU boss
High hopes on GM maize targeted at Mozambique's droughts, diseases (Club of Mozambique)
Trade lobby warns horticulture sector under threat over new EU rules (The Standard)
Reliance on trade makes food systems vulnerable (ScviDev)
Tanzania: Noni retires as chair of continental financing body, AADFI (Daily News)
TRA clears South African firm of misconduct (Daily News)
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)
