News
tralac’s Daily News selection: 15 July 2015
The selection: Wednesday, 15 July
From Twitter:
Ambassador Mxolisi Nkosi @Malangenis
The European Commission has lifted a ban on SA ostrich and meat products, imposed in 2011 following the outbreak of FMD in the country. In total, approximately R4bn ($324 million) of exports of meat including game could be exported from SA to the EU.
See the TL of @AdanMohamedCS for a series of tweet updates on Kenya's SGR and procurement issues (following a meeting yesterday between SGR contractors, the China Rail & Bridge Corporation and Kenya's private sector). [Locals losing out to foreign suppliers in new rail project (Daily Nation)]
Selected #FFD3 updates:
Achim Steiner: speech at the Third International Conference on Financing for Development (UNEP)
Which brings me to a central message that I want to share with you today: a significant portion of financial innovation and leadership is coming from the Global South. The People's Bank of China is a leader in green credit policies and is by far the largest investor globally in renewable energies. All Brazilian banks are now mandated to mainstream environmental considerations into lending decisions. India saw over 18 million bank accounts open in one week in that country's efforts to promote financial inclusion. Ladies and gentlemen, mobilizing finance for sustainable development is no longer a North-South issue.
Increasing Africa’s fiscal space: Tax to finance Africa’s sustainable development (UNECA)
“A mere 0.44% increase per annum in tax collection in African states can mobilise about 22 billion a year which can be used to finance development projects,” suggested Mr. Carlos Lopes, ECA’s Executive Secretary to delegates attending a side event in the margins of the ongoing Third International Conference on Financing for Development.
For an extensive summary of statements by finance and development ministers at FFD: see here
Extract: Nhlanhla Nene, Minister of Finance of South Africa, speaking on behalf of the “Group of 77” developing countries and China, expressed deep concern about illicit financial flows and reaffirmed commitments made in the Rio+20 outcome in that regard. He urged the United Nations to pay attention to the 2015 African Union summit outcome on illicit financial flows, which should be replicated in other regions so that agreements could be forged to cap those flows at origin, transit and destination points. The Conference outcome, he added, should embrace high-quality deliverables and resemble the scope of both the Monterrey Consensus and Doha Declaration. The traditional definition of ODA also should be maintained, as should the separation between the financing for development track and the sustainable development goals. The committee on tax matters should be upgraded to an intergovernmental entity.
Political support in Addis summit seen as key in global tax reforms (The East African)
Addis FFD: an intergovernmental tax body? (Alex Cobham Blog)
Declaration of the Independent Commission for the Reform of International Corporate Taxation
Third ISID Forum: 'Financing for inclusive and sustainable industrial development' (UNIDO)
Carlos Lopes, Amina J. Mohammed: 'Financing for Africa’s transformation' (UNECA)
Rwanda: Financing inclusive development (World Bank)
The eighth edition of the Rwanda Economic Update, Financing Development: The Role of a Deeper and More Diversified Financial Sector, explores options for how the financial sector can develop an efficient, sound, and inclusive financial sector to help the government achieve its development vision and the benefits from a well-managed, broad-based financial sector can benefit more Rwandans.
This time last year, we estimated the 2014 growth rate at 5.7%. Against all odds, the economy grew by 7%. However, growth outlook is not entirely bright. While the oil price decline has brought a positive impact on inflation and trade, recent economic indicators show some weaknesses. Also, global risks (an increase in US interest rate, slow down of Chinese and Euro economies, and an appreciation of the US dollar) are emerging. In the medium to long-term, Rwanda’s economic resilience will not be achieved without keeping high investment rates. [Download]
Building financial capability in Rwanda (World Bank Blogs)
Cement producers raise alarm on import ‘cheats’ (Tanzania Daily News)
Revenue authorities in the East African region have reported over 60bn/- loss through misinvoicing and other malpractices, a study by the East Africa Cement Producers Association (EACPA) has stated. The Tanzania Portland Cement Company (TPCC) Managing Director and Area Manager East Africa, Mr Alfonso Rodriguez, said the matter has been reported in several occasions to relevant authorities. He said importation of substandard cement is mainly a threat to the end user and security of buildings and infrastructure in the region, especially Tanzania. "Lack of proper quality certification at origin and permissively of Tanzania Bureau of Standards (TBS) officials has allowed uncertified cement to dump products in the domestic market. creating unfair competition situation that needs to be addressed," he said.
Deadline looms for COMESA to ease travel rules (Business Daily)
Kenya and its 18 trading partners from eastern and central Africa have only two months to provide timelines for removing border controls that have curtailed movement of people and slowed the pace of trade in the region. The new deadline, set for September 30, follows the signing of a Tripartite Free Trade Agreement in June.
Kampala to host regional intelligence centre (New Vision)
Uganda is to host a regional intelligence coordination centre for the East African Community and IGAD member states to facilitate sharing information on regional threats. The proposal to set up the facility in Uganda is scheduled to be endorsed on Wednesday at a meeting of intelligence and security chiefs from the regions in Kampala. The joint intelligence centre to be established in Kampala will be supported by the African Union and is different from the facility established in Kenya.
TIPS Annual Forum 2015: 'Regional industrialisation and regional integration' (TIPS)
The conference [which concludes today] aims to deepen understanding of regional industrialisation, the role of South Africa in that context, the value chains operating across the region, and the links between regional industrialisation and regional integration.
Trade between China and Portuguese-speaking countries falls between January and May (MacauHub)
Trade between China and Portuguese-speaking countries recorded an annual decline of 28.18% in the period from January to May to US$38.31bn, according to Chinese customs data recently published in Macau. In the first five months of the year, China sold goods to the eight Portuguese-speaking countries worth US$16.513bn (-2.84%) and bought goods amounting to US$21.797bn (-40.03%), registering a trade deficit of US$5.284bn. With Angola, two-way trade registered an annual contraction of 46.70% to US$8.789bn, with China selling goods worth US$1.908bn (+ 11.58%) and purchasing goods totalling US$6.881bn (-53.45%).
Kenya to host India-Africa Expo 2015 (Daily Nation)
India and Kenya are planning India-Africa ICT Expo 2015 that will bring together over 100 top companies. These companies are leading in IT software and training and are looking to invest in the African market as they begin partnering with local firms. India and Kenya have growing trade and commercial ties with bilateral trade amounting to $4.47 billion in 2013-14. India's exports to Kenya are currently at $4.18 billion; the balance of trade is heavily in India's favour.
Global implication of lower oil prices (IMF)
Most countries in sub-Saharan Africa regulate fuel prices with discretionary adjustments, resulting in a low pass-through to the fall in oil prices. Slightly more than half of African countries regulate fuel prices in a discretionary way, while 40% rely on automatic adjustment formulas. Retail prices fell in most countries in the second half of 2014, but at a slower pace than the drop in international prices. In some countries (Angola, Cameroon, Ghana, and Madagascar), domestic prices rose in the context of fuel pricing reforms. As in other regions, the pass-through among net oil exporters was smaller (close to zero).
Madagascar: Trade Policy Review documentation (WTO)
Weak shilling sends CBK back to the drawing board (Business Daily)
AirNam flying illegally to SA (The Namibian)
Malawians fronting Chinese interest in illegal timber harvesting licences (Malawi24.com)
SADC: Ministerial Committee of Organ on Politics, Defence and Security meets in Pretoria (Angola Press)
Justice Phumaphi to preside over Lesotho crisis (Mmegi)
IGC Mozambique Growth Week 2015
Mozambique: Twelve Portuguese companies employ 22,000 people (MacauHub)
Zambia hikes petrol, diesel prices by 13% - energy regulator (Reuters)
Investing in Sustainable Development Goals (UNCTAD)
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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)
