News
tralac’s Daily News selection: 29 June 2015
The selection: Monday, 29 June
Featured tweet, @SAbynumbers: Composition of South African imports 1995-2012
This week, in Geneva: Expert meeting on promoting economic integration and cooperation (UNCTAD)
This session of the Multi-year Expert Meeting will explore the conditions under which trade might become an engine of growth in a process of regional integration. The meeting will also discuss productive integration as the basis of development-oriented regional integration, given that the issue of infrastructure continues to be pivotal among the issues to be addressed for deeper regional productive integration. The potential role of regional value chains in development-oriented regional integration will also be highlighted.
The SADC Trade Related Facility: implementation issues (SADC)
The Trade Related Facility (TRF) programme is established through a Contribution Agreement between the European Union (EU) and the Southern African Development Community (SADC), which was signed in July 2014. The major aim of the TRF is to strengthen the process of regional integration in SADC, enhance trade with the EU and strengthen the region’s trade competitiveness globally. Funded under the 10th EDF, the TRF consists of two financing windows... Indicative nominal allocations have been determined for eligible SADC Member States as follows... [Download]
SADC ministers agree to set up disaster response fund (StarAfrica)
Ministers responsible for disaster risk management and finance in southern Africa on Friday resolved to create an emergency fund to respond to the challenges posed by disasters in the region. Meeting in Harare, the ministers from the 15-member SADC agreed that a dedicated regional disaster risk management fund was necessary in the face of the increasing danger of disasters such as floods and drought in the region.
The impact of investment climate reform in Africa: how has 'Doing Business' reform promoted broader competitiveness? (World Bank Blogs)
So, if Doing Business is a starting point and is used as such, is there evidence to support the assumption that it triggers wider and deeper private sector reform? Or is movement on Doing Businesses a starting point and, unintentionally, an ending point too? [The authors: Aref Adamali, David Bridgman]
Regional State of the Coast: Western Indian Ocean (UNEP)
Urbanization and unsustainable fishing and extraction practices are driving the depletion of natural resources and a decline in biodiversity in the region, affecting livelihoods, says the Regional State of the Coast: Western Indian Ocean. Stretching from Somalia to South Africa, the Western Indian Ocean coastal area is home to over 60m people, largely dependent on marine ecosystems for food and jobs. The region's ecosystems are one of the world's richest in terms of biodiversity, with over 2,200 species of fish and over 350 species of corals, and provide a wealth of goods and services to the population. The report, launched at the 8th Conference of Parties to the Nairobi Convention, examines the environmental threats in the region and calls for stronger transboundary cooperation, integrated coastal management, and a surge in marine conservation areas to protect its pristine ecosystems. [Decisions adopted during the 8th COP for the Nairobi Convention, Report downloads]
Is the hyped free movement of people across African economic blocs a farce? (The EastAfrican)
Countries on the continent are never short of declarations and protocols announced or signed with fanfare at the African Union summits. Over the past two months alone, I have attended a number of conferences discussing the protocols on the free movement of people, labour, goods, capital and services within the continent’s RECs. As I study the free movement protocols, five questions have preoccupied my mind, answers to which demand future research. [The author: John Oucho]
South Africa: Home Affairs hosts immigration policy colloquium (GCIS)
The Department of Home Affairs will host a two-day colloquium to undertake a comprehensive review of the International Migration Policy. In 2014, the Department began a total review of the outdated 1999 White Paper on International Migration including a series of roundtable discussions with key stakeholders. The Green Paper will be finalized by March 2016, leading to a White paper and a comprehensive overhaul of legislation.
South African visa application centre opens in Port Harcourt (ThisDay)
South Africa starts wooing Kenyans to visit with visa deal (Daily Nation)
Fewer Mozambicans employed on South African mines due to legislative/technological changes (Club of Mozambique)
[TEBA's] Carimo said only 32000 Mozambicans are still working on the South African mines. Their remittances pump about R750m into the Mozambican economy annually. Carimo estimated that some 8% of the remaining Mozambican jobs in the mines are being lost every year, and there is no prospect of new recruitment. He predicted that in 20 years there will be no Mozambican miners at all in South Africa - or indeed miners from any other neighbouring country. He foresaw a mining industry exclusively staffed by South African nationals.
Diasporan remittances boost economy (The Herald)
Zimbabwe has received a cumulative $3,5bn since 2009 from its nationals in the Diaspora who now account for about 25% of liquidity in the domestic economy, with authorities now working to optimise the inflows, a senior official said. In fact, remittances from the Diaspora have outperformed inflows from portfolio ($1,08) billion) and foreign investments ($2 billion) during the five-year period (2009-2014), demonstrating availability of a huge liquidity pool Zimbabwe can exploit. “The largest part of our remittances come from South Africa (33%), United Kingdom (24%) and United States (7%) and you can see that about half of our remittances actually come from (only) two countries (SA and UK),” Dr Mlambo said.
Zimbabwe: South Africa to deport every fortnight (The Herald)
EAC states impose common external tariffs to protect paddy farmers (IPPMedia)
The East Africa Community partner states have imposed Common External Tariff to help traders and farmers in the community to benefit from what they grow and protect rice smuggling that destroy small scale farmers engaged in paddy production in the region. A report from Rice Council of Tanzania issued by the Rice Council Executive Director, Winnie Bashagi say that the EAC has decided to imposed the common external tariffs after it identified that right now Tanzania and other EAC rice industry is under the threat of imported rice from Thailand and Pakistan. “If the government wants to reach its Big Results Now and National Rice Development Strategy goals of doubling rice production for food security and regional export by 2018,” said Council Chairman Wambura, “The first step is to put an end, once and for all, to the large-scale organised rice smuggling. Otherwise, the rice industry will not go forward but backward.”
Finally, region is officially a Common Market (The EastAfrican)
The East African Community will formally become a Common Market on July 1 despite the aspirations of free movement of goods, services and labour being far from being achieved. The Common Market Protocol, ratified in 2010, had a five-year transition period, which the business community says focused more on regulatory reforms as non-tariff barriers and national considerations that are frustrating efforts that would bring home the benefits of integration to the citizens of the five member states
Uganda legislator queries EAC free trade pacts (East Africa Business Week)
India, Mauritius officials to revisit tax treaty on Monday (LiveMint)
Indian and Mauritian officials will hold talks starting Monday on proposed amendments to their bilateral tax treaty. The changes to the more than three-decade old treaty have been hanging fire amid apprehensions of the Indian side that Mauritius, one of the largest sources of foreign direct investment (FDI), is being used to route unaccounted money. Investments from Mauritius to India have totalled $87.55 billion since April 2000.
Kenya: Mumias Sugar hires 8 managers to drive turnaround (Business Daily)
Mumias Sugar Company is mulling extending the term of its CEO Coutts Otolo even as it hired eight managers to replace those sacked last year in a corruption purge. In a recent recruitment exercise, the cane miller failed to get a candidate who met the requirements for the position of CEO, with the management saying the applicants were not suitable to the needs of the company.
Changes in beef market regulations open opportunities in southern Africa (Zimbabweland)
Last month at the OIE (World Animal Health Organisation) Assembly in Paris, changes to international regulatory standards around Foot and Mouth Disease were adopted. This has long been argued for, and will make a big difference to livestock producers across southern Africa. The updated OIE Terrestrial Animal Health Code makes it possible for African countries with wild species like buffalo that naturally harbour foot and mouth disease (FMD) viruses to be able to trade beef without necessarily requiring the physical separation of wildlife and livestock through the extensive veterinary cordon fencing that has characterized animal disease management in southern Africa since the colonial era. [Zimbabweland wins a prize!]
South Africa: Minister Rob Davies on agro-processing (GCIS)
The Department of Trade and Industry has contributed R1,2 billion in incentives to the Agri-food sector between 2009 – 2013, to support the industry. “In value added, the sector contributes 11% of total manufacturing while in employment terms, the sector contributes 15% of total manufacturing employment. Agro-processing has great significance for the South African government and the unity of the industry is important,” said Minister Davies
Zimbabwe: Car imports down (The Herald)
The volume of imported second hand vehicles passing through Chirundu border post has significantly declined in recent months amid concerns over high duty charged and some related costs. The high cost of importation particularly Zimra duty calculations and revaluation of the cost of the vehicle have seen cars piling up at Zimra yard at Chirundu post as people fail to raise the amounts required.
Tanzania: Limited staff delays single stop inspection scheme (IPPMedia)
Inadequate staff fueled by expertise to operate equipment installed at the Kenya-Tanzania Holili border offices has been said as among the drawbacks holding back the pace of One-Stop-Border-Post initiatives. Tanzania Revenue Authority revenue collection in-charge Aden said although the establishment of One Stop Border Post , a joint investment programme between the two countries is picking up, facilitators of the system from the two countries are faced with challenges that need to be addressed to enable smooth operations.
Govt endorses One Stop Border Posts Act, 2015 (IPPMedia)
Uganda: SGR project finally kicks off (Daily Monitor)
The preliminary geo-technical investigations and survey work on the $3.3 billion (about Shs10.6 trillion) new standard gauge railway project has finally been flagged off. Prime Minister Ruhakana Rugunda said the SGR will provide 150,000 jobs during construction and more than one million more jobs will be created by industries that will spring up immediately after construction.
Ports regulation: Cargo tracking as an instrument of trade facilitation (ThisDay)
There is increasing optimism among shipping stakeholders that the Cargo Tracking Scheme to be managed by the Nigerian Shippers’ Council will further improve efficiency at the ports and cut cost borne by shippers as part of the efforts of the federal government to facilitate trade (writes Francis Ugwoke).
Ship repair company looking to conquer Africa (The Namibian)
EBH Namibia, the ship repair company based at Walvis Bay, is looking to expand its services to the larger African market, given that few countries on the west coast of Africa offer repair services. The company has just launched its new Panamax size third dock at the coast. EBH Namibia was established in 2007. The Namibian government, via Namport, is the majority shareholder while the South African DCD Group is the minority shareholder.
Kenya ranked among top 5 gainers of population growth (Business Daily)
Kenya is among the economies that are poised to reap the highest dividends from a rapidly growing population in the next 35 years, London-based Economist magazine says in its latest assessment of long-term growth prospects for countries worldwide. The Economist Intelligence Unit says Kenya’s labour force will nearly triple to 48m by 2050 from the current 18m, offering the economy a unique potential to speed up growth.
AfDB Knowledge Management Strategy (2015-2020) approved
AUC participates in the Mining On Top Africa conference (AU)
Tanzania: Traders scout for Sh5 billion capital to establish own bank (The Citizen)
Kenya: Manufacturers protest excise stamp demand (Business Daily)
AU Chairperson reiterates the AU’s 'deep concern' on Burundi
Reviewing implementation of the post-2015 Agenda: UN HLPF debate (Common African Platform)
East Asia Forum Quarterly: 'Leadership in the region'
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)
