The selection: Thursday, 18 June

DG Azevêdo tells members it is “decision time” on the Doha work programme (WTO)

“Taking an overview of all of these consultations it is hard to see a way forward. There has been no progress on the gateway issues. We still have no convergence. Of course we shouldn’t draw conclusions too early. I don’t want to prejudge the outcome — but I think I have the responsibility to be honest and realistic. As things stand I see very little prospect of delivering the substantive, meaningful work programme which we have been aiming towards. That is the reality today. The question is whether we can change this situation by the end of July — and that is up to you."

Fostering development through trade finance (AfDB)

Trade finance default rates are higher in Africa than in the rest of the world, averaging 4% in comparison with a global average of less than 1%. This varies from an average of 1.1% in Southern Africa to 6.3% in West Africa. There is an obvious correlation between stability and access to trade finance. However, trade finance default rates are significantly lower than banks’ overall non-performing loans ratio. Average default rates for all assets are 4% in Southern Africa, ranging up to 12% in West Africa. Commercial African banks already generate 17% of their earnings from trade finance and only one out of every 14 African banks is yet to enter the trade finance market revealing substantial appetite for the sector. [Download]   

Trade between China and Portuguese-speaking countries falls 28.23% from January to April (MacauHub)

Figures from China’s Customs Bureau published by Forum Macau showed that in the first four months of the year China sold to the eight Portuguese-speaking countries goods worth US$13.411 billion (+0.34%) and imported goods worth US$16.263 billion (-41.88%).

Angola comes second in terms of total trade with US$7.135 billion (-46.49%) as a result of Chinese exports worth US$1.681 billion (+29.26%) and imports of US$5.454 billion (-54.68%). Fourth is Mozambique with trade of US$792 million (+36.19%), with Chinese exports of US$620 million (+47.23%) and imports of US$172 million (+7.19%).

India: Exports of cotton textiles to Africa badly hit -TEXPROCIL (Business Wire)

The new Foreign Trade Policy 2015-20 has removed all benefits on exports to African countries. This has had a serious impact on exports of value added products like cotton dyed and printed fabrics and made-ups to African countries, said Shri R.K.Dalmia, Chairman, The Cotton Textiles Export Promotion Council (TEXPROCIL). 

AGOA: statement by Minister Rob Davies on the Paris deal on poultry (dti)

The Paris deal can be seen as a win-win for South Africa and the United States and both our countries should use it as a platform to build and deepen our trade and investment relationship across all sectors of the South African economy and as partners to strengthen regional value chains across the continent, strengthening regional integration. In addition, the deal on poultry will mean that Senators Coons and Isakson could become key allies in helping to keep South Africa in AGOA for a further 10 years as they will be keen to ensure that USAPEEC continues to benefit from the Paris deal.

New tax treaty with Mauritius may affect cross-border investment (Business Day)

The new double-tax treaty between SA and Mauritius is set to come into force in January next year, following a controversial renegotiation to better protect the South African tax base. However, tax experts have warned that sweeping changes to the treaty, including withholding taxes for interest (10%) and royalties (5%) that were wholly eliminated in the 1996 treaty, may be to the detriment of cross-border investment. The biggest issue for most taxpayers is the revised "tie-breaker" clause that resolves tax residency status when both countries claim to have taxing rights over the same taxpayer.

Swaziland: SACU revenue to decrease, warns Central Bank Governor (Swazi Observer)

Swaziland’s revenue receipts from the Southern African Customs Union are projected to decrease this year. This was said by Central Bank of Swaziland Governor Majozi Sithole when delivering his annual monetary policy statement address for the year 2015, at Sibane Hotel last Friday. The country experienced a 12.9% increase in earnings from exports, reaching E20.6 billion in 2014 compared to 2013. Central Bank Governor Majozi Sithole said 61% of the country’s merchandise exports were destined for the South African market. [Download]   

Zambia: 2015 IV Article Consultation (IMF)

Zambia achieved strong growth and macroeconomic stability over most of the last decade. However, in the last two years, the Zambian economy has been facing strong headwinds from large fiscal imbalances, lower copper prices, and policy uncertainties. The current account has deteriorated, international reserves have fallen, and the exchange rate has been under downward pressure.

Zambia: Selected Issues (IMF)

Zambia cuts economic growth target for 2015 (The Namibian)

Zimbabwe: Diasporans prop struggling economy (Financial Gazette)

Information provided by the RBZ last week indicates that international remittances into Zimbabwe increased significantly from the US$1,76bn recorded last year to US$2,5bn, representing a 13% growth. This year alone, between January and May 31, Diasporans remitted approximately US$740,6 m. While the figures may indicate Diasporans’ confidence in the use of formal channels to remit funds, the amount remitted might be much higher given that some funds come into the country through informal channels, especially from Zimbabweans resident in neighbouring countries such as South Africa, Botswana, Mozambique, Zambia and Namibia.

EAC and AfDB call for closer partnership in the design and delivery of regional projects (AfDB)

The workshop came up with a number of key recommendations, among them: (i) capacity-building of RECs to better coordinate regional projects; (ii) capacity-building of key institutions at national level responsible for regional projects; (iii) training of recipients on Bank procurement, financial and fiduciary services and project management in general; (iv) development of manuals and models to facilitate documenting and sharing of best practices; (v) re-engineering of Bank business processes to better respond to the demands and complexity of regional projects; (vi) procurement reforms in member states to be more responsible to regional projects; (vii) enhanced monitoring and reporting on performance of regional projects so as to address challenges in good time; and (viii) enhanced information sharing as well as tracking and reporting on the development impact of regional projects.

Fitch concerned over Kenya, Uganda aggressive borrowing (The EastAfrican) 

AfDB ranks Kenya third in Africa on economic progress (Business Daily)

Kenya has retained an improved third position in Africa, after Rwanda and Senegal, for achievements in several areas including infrastructure and financial sector development. The latest African Development Bank Country Policy and Institutional Assessment (CPIA) gives Kenya a score of 4.3, an improvement from 3.73 in 2005 out of a possible six points.

Visitors via JKIA hit 8-year low amid mega expansion (Business Daily)

Visitor arrivals at Kenya’s two main airports have dropped to the lowest level in eight years, reflecting how badly the travel industry has been damaged by a spate of terrorist attacks that have killed hundreds. The Jomo Kenyatta International Airport (JKIA) and Mombasa’s Moi International Airport recorded arrivals of 231,038 visitors in the first four months of the year, a 29.4 per cent drop from 2014, says Kenya National Bureau of Statistics (KNBS) data.

In to Africa: Dubai bids to become continent’s staging post (The National)

The Chilly Willy tomato paste factory is a small example of how the emirate is already benefiting as a staging post for the continent for goods originating from China. A much bigger example can be found at the other end of the city where the sprawling Dragon City development is taking shape. It is already home to the city’s Dragon Mart, the biggest Chinese trading hub outside mainland China. About 3,500 outlets are based there, many of them re-exporting goods arriving from China via Jebel Ali Port to countries across Africa. Now the developer behind the project is adding another 1.3 million square feet of space to cope with demand.

Africa to become world's manufacturing hub through industrial cooperation with China: AfDB chief (FOCAC)

The chief of the African Development Bank (AfDB) Donald Kaberuka says time has come for Africa to become the world's manufacturing hub and this can be done through industrial cooperation with China as the Asian giant phrases out labour-intensive industries. "The global manufacturing cycle started from Europe then to America, before moving to South East Asia and China. It is now coming to Africa," Kaberuka told Xinhua Monday on the sidelines of the African Union (AU) summit held in Johannesburg, South Africa.

Export workshop begins in Pretoria (IOL)

Key leaders and stakeholders in the export industry would be attending the workshop to discuss issues pertinent to the country’s export industry. Trade and Industry Minister Rob Davies said the workshop “is geared to enable the dti, the export formations and other key stakeholders at local, provincial and national level to engage on the national export agenda and discuss concrete plans which will contribute to the realisation of the National Development Plan (NDP) and the New Growth Path (NGP) imperatives”.

South Africa: Act on private security sector must not be passed (Business Report) 

The private sector should drive industrialisation (New Era)

The principal drivers of Namibia and Africa’s industrialisation efforts must be the private sector as governments are merely the enablers, says Dr Malan Lindeque, Permanent Secretary in the Ministry of Industrialisation, Trade and SME Development. Lindeque made the remark yesterday at a very well attended first-ever public seminar in Windhoek on the Southern African Development Community’s industrialisation strategy and roadmap, which was launched in Zimbabwe in April. The objectives of the seminar include sensitising the public on the key elements of the strategy as well as to provide an avenue for a high level discussion on opportunities for Namibia emanating from the strategy.

Francis Mangeni: 'Tripartite Free Trade Area - diplomatic feat' (Zambia Daily Mail)

The Tripartite: What to expect from Africa’s grand free trade area (World Commerce Review)

Anchoring mineral infrastructure regional integration: what role for policy frameworks? (ECDPM)

Agricultural input use in Africa - revisiting our meagre evidence base (World Bank)

So what’s a policy analyst to do when the evidence base is likely problematic? Just wish and hope that more appropriate data existed? For a set of eight countries in Sub-Saharan Africa, the wait is over. The Living Standards Measurement Study Integrated Surveys on Agriculture now provide nationally representative and highly disaggregated data from farmers’ agricultural plots to help rebase our understanding of African agriculture and rural spaces.

Nigeria: Customs boss laments law enforcement agents’ complicity in smuggling (ThisDay)

The Comptroller-General of Customs (CGC), Alhaji Abdullahi Dikko Inde on Tuesday accused some unscrupulous elements within the law enforcement agencies as well as regulatory bodies of jeopardising the economic prospects of the country by aiding smuggling activities across the borders. He said the recent seizure of contraband goods worth N480 billion in Kano State showed total failure on the part of government agencies to undertake their statutory functions.

Nigeria: The challenge of porous borders (editorial comment, ThisDay)

There is also need for a thorough probe of the present border security outfits, namely the Immigration and Custom, with a view to establishing the extent of their collusion and collaboration with criminal elements at the border towns. Nigeria should meanwhile initiate a cause of action to properly demarcate the nation's borders through the setting up of an ECOWAS Special Commission. There should also be regular joint-border patrol with neighbouring countries.

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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)