The selection: Thursday, 25 June

UNCTAD’s Trade and Development Board (Africa) is in session in Geneva: the documentation [Profiled paper: Revisiting debt sustainability in Africa]

18th ACP Ministerial Trade Committee: opening speech by Dr. Patrick I. Gomes

The objective of the next, 13th Meeting of the JMTC, which will take place on Friday afternoon, is first and foremost, to address issues related to ACP-EU trade relations. These include progress on the negotiations and implementation of Economic Partnership Agreements (EPAs), as well as other pertinent issues arising from the current ACP-EU trade arrangements.

The Senior Officials received reports from all the regional EPA configurations on the progress made in the negotiations as well as the implementation by the Caribbean and those countries in the Pacific and Eastern and Southern Africa (ESA) that are implementing interim EPAs

A more serious development relates to the rise of the so-called mega regional trading arrangements. The negotiations between the EU and United States of the Transatlantic Trade and Investment Partnership  is causing consternation to the ACP Group.  We believe that if agreed, TTIP will have the effect of trade diversion resulting from removal of market entry barriers among the Parties at the expense of previous suppliers from third countries. ACP States will no doubt be affected.

Global trade, in graphics (The Economist)

Foreign direct investment inflows to Africa remained stable in 2014, UN Report says

Foreign direct investment inflows to Africa as a whole remained stable at $54 billion in 2014, with decreases in North Africa being offset by rises in Sub-Saharan Africa, UNCTAD’s World Investment Report 2015 has revealed.

North Africa saw its FDI flows decline by 15 per cent to $11.5 billion.

FDI flows to West Africa declined by 10 per cent to $12.8 billion.

East Africa saw its FDI flows increasing by 11 per cent to $6.8 billion.

Central Africa received $12.1 billion of FDI in 2014, up 33 per cent from 2013.

Southern Africa received $10.8 billion of FDI in 2014, down 2.4 per cent from 2013.

[Download Chapter II - Africa and Landlocked Developing Countries] 

World Investment Report 2015 (UNCTAD)

The number of new international investment agreements continued to slow down in 2014, following a steady trend since the end of the 1990s. The report also reviews international investment agreements concluded in 2014 and finds that they include provisions geared towards safeguarding the right to regulate for the public interest, including for sustainable development objectives.  Also, the report reveals that in 2014, investors initiated 42 known investor-State dispute settlement cases pursuant to international investment agreements (figure 3), representing an important drop from the level initiated in the three previous years and more on a par with the average number of disputes in the years 2003-2009. [Downloads]

Tanzania: Gas boom spurs Dar to EA ‘first’ (Daily News)

Huge natural gas discoveries in Tanzania have enabled the nation to record an increment of 14.5% in Foreign Direct Investment  inflows, making the country the leader in attracting investments in the EAC.

World trade registers modest growth in first quarter of 2015 (WTO)

The volume of world merchandise trade increased modestly in the first quarter of 2015, with growth in both exports and imports registering slower growth than over the previous six months. According to preliminary estimates issued on 24 June by the WTO and the United Nations Conference on Trade and Development (UNCTAD), world trade as measured by the average of exports and imports grew 0.7 per cent in the first three months of 2015, based on seasonally adjusted data.

US goods inflow to sub-Saharan Africa rises by 6% in 2014 (World Stage)

Trade volume between the United States and the sub-Saharan Africa increased by 6% to a record $25.4 billion in 2014, according to US Assistant Secretary of Commerce for Global Markets, Arun Kumar. On the barriers to trading, Kumar said, "you know in Africa we find two or three major areas to focus on. One is creating regional integration. We believe that the more regional integration that occurs, the better it is going to be for all the countries in the region as well as for the U.S. trade with Africa. Second would be infrastructure, which is both hard and soft."

South Africa: Full Quarterly Bulletin (SA Reserve Bank)

Despite the moderation in global economic growth, the volume of South African exports advanced further in the first quarter of 2015, albeit at a somewhat slower pace than previously. The value of exports, however, was weighed down by a significant deterioration in the prices of South African export commodities. Growth in import volumes accelerated in the first quarter of 2015. As a result of these developments and a simultaneous smaller shortfall on the services, income and current transfer account, the deficit on the current account of South Africa’s balance of payments decreased slightly to 4,8 per cent of gross domestic product in the first quarter of 2015. The deficit was financed by inflows of portfolio and other investment capital as direct investment registered a net outflow over the period.

Hillary Joffe: ‘How investors are deserting South Africa’ (RDM)

Namibia: Regional cooperation on exchange control policies – what is it all about? (New Era)

The exchange control measures in Namibia are based on the Currency and Exchanges Act and on the Exchange Control Regulations. However, other legislation such as the Investment Act that is currently being finalised by the Ministry of Industrialisation, Trade and SME Development will also have an impact on fund transfers if certain requirements for these transfers are stipulated. [The author, Festus Nghifenwa, is the SADC FIP Implementation Coordinator at the Ministry of Finance, Namibia]

Zimbabwe: Competitiveness Bill approved (The Herald)

Cabinet has approved principles of the National Competitiveness Bill and the draft document for the new legislation will be presented to the Attorney-General’s Office next week, Industry and Commerce Minister Mike Bimha has said. Presenting his official opening speech at the Zimbabwe National Chamber of Commerce annual congress, Minister Bimha said several initiatives were underway to improve the competitiveness of local producers, retailers and the general domestic economy.

SA deports 800 more Zimbabweans (The Herald)

The second batch of 800 Zimbabweans deported from South Africa is expected to arrive in the country by train tomorrow morning, an official has said. The deportees were rounded up for violating South Africa’s immigration laws. The first group of 796 (all male) arrived in the country via Beitbridge Border Post on June 3. This brings to 8 750 the total number of people who have been deported from South Africa since the beginning of the year.

New campaign to boost tax compliance in Africa (New Times)

A new campaign to stop Africa from ‘bleeding’ is to be launched today in Nairobi by the Tax Justice Network-Africa (TJN-A), a coalition of researchers and activists focused on the harmful impacts of tax avoidance, tax competition and tax havens.  The launch was preceded by a two-day training of journalists from over 10 countries in the Eastern and Southern African region on tax, illicit financial flows and domestic resource mobilisation.

Alvin Mosioma: 'Tax incentives denying Kenya money it needs to improve livelihoods' (Business Daily)

Many studies, including those by the African Department of the International Monetary Fund (IMF), focusing on East Africa, have found that “investment incentives — particularly tax incentives — are not an important factor in attracting foreign investment”. A separate study recently found that foreign companies mainly invest in Kenya for access to local and regional markets, political and economic stability and favourable bilateral trade agreements. Only one per cent of the firms surveyed mentioned fiscal concessions offered to those operating in the EPZs as reason for setting shop in Kenya. They are an expense the country can do without. [The author is executive director of Tax Justice Network-Africa]

Kigali: Scrap trade barriers on agric products, experts say (New Times)

Member states of the Common Market for Eastern and Southern Africa  must expedite the removal of all barriers hindering trade of agricultural produce within the region. Thierry Mutombo Kalonji, COMESA’s director of investment promotion and private sector development, said this yesterday during the closing ceremony of a three day sanitary and phytosanitary (SPS) strategy workshop in Kigali.

Abuja: Agriculture should be driven by standards – ARSO  (Leadership)

As the African Organisation for Standardisation Presidents’ Forum drew to a close yesterday, participants have suggested that the Afrifood system should be driven by standards, hence the need for standards bodies to strengthen the continent’s agriculture value chains. Commenting on the theme of the conference, “The Role of Standards in Promoting Sustainable Agriculture and Food Security in Africa,” they stated that Africa was yet to meet its ever rising demand for food products due to poor conformity assessment which has made it lag behind in the agro-world stage even though it remains a primary producer of cash crops and raw materials.

India-Africa Summit: Special envoys to invite heads of government (Business Standard)

With just four months left, preparations are in top gear for one of India's most ambitious diplomatic engagement to date - the Third India-Africa Forum Summit (IAFS) here in October that is likely to see the heads of all the 54 countries of the African Union attending with their entourages. In early July, a dozen "special envoys" will take off for Africa to extend an invite to each of the 54 African heads of state or government for the October 26-30 event, with the actual summit being held on October 29.

With TPA in hand the US seeks to push Vietnam to reduce reliance on Chinese fabric (Vietnam Briefing)

The United States Senate has recently passed a Trade Promotion Authority (TPA) bill that will greatly expand President Obama’s trade negotiating authority on trade agreements such as the Trans-Pacific Partnership (TPP). The TPA, also referred to as “fast-track”, will allow the President to negotiate free trade agreements and then submit them to Congress with no amendments or filibusters allowed, with only an up or down vote on the entirety of the trade deal. It is hoped that this measure will speed up the progress of the TPP. Despite this progress, potential stumbling blocks remain, chief among these is the debate over rules of origin, particularly as relates to China. American trade negotiators are currently pushing Vietnam to drastically reduce its imports of textiles from China (which is not a part of the TPP).

Uncertain future for global diamond trade as profits vanish (Reuters)

Drought resilience and sustainable livelihoods programme in the Horn of Africa - Djibouti, Sudan (AfDB)

SADC law on child marriages on cards (New Era)

Home Affairs refutes tourism drop claims (Business Day)

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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)