The selection: Tuesday, 14 July

Making regional trade work for Africa: turning words into deeds (UNCTAD)

In its latest Policy Brief, UNCTAD identifies some of the barriers to implementing regional trade agreements in Africa and proposes remedial actions that may be taken by national Governments, development partners and regional institutions. A well-known characteristic of the regional integration process in Africa is the multiplicity of regional trade agreements (RTAs). There is recognition by African leaders that RTAs have enormous potential to foster regional trade and development in the region. However, the low rate of their implementation has left this potential largely locked up. To realize this potential, national Governments, development partners and regional institutions need to boldly and creatively tackle the drawbacks to effective implementation of RTAs. This policy brief identifies some of the main barriers to implementation and proposes remedies for them. [Download]

Selected updates from the FFD conference:

A comprehensive summary of presentations at Day One plenary sessions (UN) 

President Macky Sall: 'Africa’s opportunity in Addis' (Project Syndicate)

Multilateral Development Banks to work more closely and with private and public sector partners

UNSG: Strong partnerships needed to turn billions into trillions for sustainable development

Harnessing innovative financing for nutrition in Africa (Common African Position)

Helen Clark: speech at launch of UNDP-OECD collaboration on ‘Tax Inspectors without Borders’ (UNDP)

Speech by DG Roberto Azevêdo (WTO)

The estimate for the value of unmet demand for trade finance in Africa is between 110 and 120 billion dollars. By bridging this gap we would unlock the trading potential of many thousands of individuals and small businesses across the continent. At the WTO, we have been working with regional development banks to support the creation and expansion of trade finance facilitation programmes. We are working together to close those gaps. And very soon we will be launching a new initiative with this goal in mind.

WTO members to start discussion of a possible cotton outcome in Nairobi (WTO)

WTO members exchanged views on a possible outcome on cotton at the Nairobi Ministerial Conference to be held in December, when they participated in a discussion aimed at enhancing transparency in relation to the trade aspects of cotton on 9 July. They also heard an update on the market situation and latest policy measures in cotton trade.

DR Congo signs the COMESA Regional Bond (COMESA)

The DRC has begun implementing the COMESA Regional Transit Customs Bond Guarantee. This follows the signing of the Inter Surety Agreement by the Director General of the DR Congo National Surety (Societe Nationale d'Assurances – (SONAS) Mrs Agito Amela Carole, Friday 10 July 2015. “The participation of SONAS in issuing one single Customs Bond for transit goods from the point of departure to destination sets the stage for the operationalization of Single Customs Territory between Congo D R and other COMESA Member States that are in the process of rolling out the CVFTS,” COMESA Secretary General Sindiso Ngwenya who witnessed the signing said.

Mozambique: Integrated Growth Poles Project (World Bank)

The Project Development Objective is to improve the performance of enterprises and smallholders in the Zambezi Valley and Nacala Corridor, focusing on identified high growth potential zones (growth poles). In the last six months project implementation has not advanced substantially due to weak procurement capacity and lack of a well-functioning and autonomous Project Coordination Unit (PCU) within the Ministry of Economy and Finance (MEF).

IGAD Ministers of Finance plead for the positive effects of remittances for the region (IGAD)

The objective of this Intergovernmental Authority on Development (IGAD) High Level Ministerial Roundtable Discussion on Remittance was to review the linkages between remittances, financing of development, and household food security in IGAD Member Countries with a view to formulating appropriate policies that enhance remittance contribution to local, national and regional economies and while protecting the remittance flows. The other objective is to assess the impact of challenges that Money Transfer Operators (MTOs), or remittance companies, especially after legislation in the US, UK and Australia made it increasingly difficult for people to transfer money to receiving countries. [Presentation]

Botswana: latest financial inclusion data (FinMark Trust)

50% of the population are banked, indicating an increase from 45% in 2009, while 39% use informal mechanisms to manage their finances. The percentage of those who do not have/use any financial products/services, neither formal nor informal is at 24% – these individuals save their money at home, and they rely on family and friends to borrow money. Financial inclusion is higher among adults residing in cities and towns (86%) compared to those living in urban villages (78%) and rural areas (64%). There is a higher rate of inclusion among males (79%) than females (73%). The study shows that Botswana ranks number 5 in the SADC region with regards to financial inclusion.

China buys US$3.5 billion of graphite extracted in Mozambique (MacauHub)

Graphite mining operations in Mozambique can now move ahead after Chinese companies signed long-term purchase contracts worth US$3.5 billion, according to the Economist Intelligence Unit. The most advanced of the projects underway is one run by Australia’s Triton Minerals in Nicanda (Cabo Delgado), already considered the world’s largest graphite reserve, which recently signed a contract with Chinese raw materials trading company Shenzhen Qianhai Zhongjin, securing financing of US$200 million. In addition to this financing, split into equity in the project and credit, the Chinese partner has committed to buying 200,000 tons of graphite in the long term.

Zimbabwe: Govt urged to stop cheap sugar imports (The Herald)

The future of nearly 20 000 workers employed in the Lowveld sugar industry is under threat owing to an influx of smuggled cheap sugar amid reports that over 50 000 tonnes of the commodity is being dumped into the country every year. Cheap low quality sugar is reportedly being smuggled into the country mainly from Malawi. The parliamentary portfolio committee on Land, Agriculture Mechanisation and Irrigation last Friday implored Government to stem the rampant smuggling of sugar and issuing of import licences to save the local multi-million sugar industry from collapse.

Speaking after a tour of the Lowveld, the committee said there was an urgent need to arrest the ongoing dumping of cheap and low quality sugar onto the local market. Zimbabwe produces about 480 000 tonnes of sugar every year against a local demand of 300 000 tonnes leaving the country with a surplus of about 180 000 tonnes. Some of the surplus sugar is exported but declining world sugar prices have left Zimbabwe short of international markets.

ZimTrade calls for removal of non-tariff barriers (The Herald)

Zimbabwe’s foreign trade promotion body, ZimTrade, says there is a need to streamline the country’s regulatory framework as part of critical steps in narrowing the $3 billion trade deficit. An outdated or improperly constituted regulatory framework can act as a barrier to effective trade. ZimTrade CEO Ms Sithembile Pilime said there was need for a complete review of the country’s regulatory structure to ensure that it is not inadvertently hindering the country’s exports.

Trade between Angola and Brazil totals US$2.371mn in 2014 (MacauHub)

Trade between Angola and Brazil totalled US$2.371mn in 2014, the Brazilian Agency for Export and Investment Promotion (Apex-Brazil) said Friday in a statement. Apex-Brazil also said that last year Brazilian exports to Angola reached US$1.261mn and imports of Angolan products totalled US$1.109mn, giving Brazil a trade surplus of US$152mn.

Tanzania: Forest ecosystems in the transition to a green economy and the role of REDD+ (UNEP)

Deforestation in Tanzania could cost the national economy 5,588 billion Tanzanian Shillings (US$3.5 billion, based on 2013 exchange rates) between 2013 and 2033 on current trends, highlighting the importance of investing in the forestry sector to alleviate poverty and boost growth, according to a new report. This based its analyses on the annual deforestation rate of at 372,816 hectares per year between 1995 and 2010, an estimate provided by the National Forest Monitoring and Assessment 2014.

SE4All expert report details concrete ways to boost finance for sustainable energy

The report by the Finance Committee of SE4All’s Advisory Board, ‘Scaling Up Finance for Sustainable Energy Investments’, identifies four broad ‘investment themes’ where action could help drive increased investment: developing the Green Bond market, using Development Finance Institutions’ de-risking instruments to mobilize private capital, exploring insurance products that focus on removing specific risks; and developing aggregation structures that focus on bundling and pooling approaches for small-scale projects. [Download]

Kenya dismisses Somalia suit in border dispute (Business Daily) 

Kenya is confident of winning a court battle against Somalia which on Monday formally filed a complaint with the International Court of Justice over a long-running border dispute linked to lucrative oil and gas reserves in the Indian Ocean. Attorney-General Githu Muigai said the case filed by Somalia was “baseless and lacked the relevant backing of international law on maritime issues”.

Judges to combat money laundering, financing of terrorism (New Era)

Senior judges and magistrates from 13 out of 17 Eastern and Southern African Anti-Money Laundering Group Member States will gather in Swakopmund next week for a judicial retreat. The main purpose of the meeting will be to deliberate on issues related the effective and timely adjudication of civil and criminal matters involving money laundering, financing of terrorist activity and proliferation financing, including identification of assets, as well as freezing and forfeiture of assets obtained with the proceeds of crime. The retreat, scheduled for July 13 to 15, is the first of its kind to be held in Sub-Saharan Africa.

Tanzania to ratify African charter on statistics to influence policymaking (IPPMedia)

Tanzania will ratify the African charter on statistics chiefly to help identify underlying political economy issues related to the collection, analysis and use of data for policy-making. Deputy permanent secretary in the finance ministry, Prof Adolf Mkenda said yesterday that the government was committed towards ratifying the document that was initially signed early 2012. The document has been adopted by 16 countries in Africa with exception of the East African countries of Kenya, Tanzania, Uganda, Rwanda and Burundi. Delivering the key note speech at the opening of a joint regional workshop AfDB/SADC/COMESA and ECOWAS on GDP compilation in the framework of implementing the 2008 System of National Account, he said: “We will ratify the charter.”

Cecilia Malmström: 'Modernising trade policy - effectiveness and responsibility' (European Commission)

Nigerian entrepreneurs in Istanbul's textile markets (IMI)

Mega-projects approved for years are still not running in Mozambique - IESE (Club of Mozambique)

ECA, Germany, World Bank to launch new network of excellence on land governance (UNECA)

Ufa Declaration: the house that BRICS are building (Daily Maverick)

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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)