The selection: Monday, 3 August

Structural transformation is happening, but needs accelerating (UNECA)

Sub-regional perspectives on structural change (UNECA/University of Nottingham)

We provide an assessment of 13 sub-regions in Africa, Asia and Latin America in order to offer deeper and richer insights into the recent dynamics of structural change. Overall, our results suggest that within-sector productivity improvements were the key driver of output per capita growth in most sub-regions. Nonetheless, structural change has also played a critical role in enhancing economic performance since 2002 – mainly through services. Changes in the demographic structure and employment rates have also contributed to the recent performance, albeit to a much lesser extent. Accelerating the pace of structural change – by exploiting existing productivity gaps – will be crucial to sustain current economic growth rates in developing regions.

How President steered SADC ship (The Sunday Mail)

Below are excerpts of Minister Bimha’s reflections on a landmark year: ‘The SADC Industrialisation Strategy and Roadmap is one of the milestones we have achieved during our tenure as SADC Chair. It is something we can be proud of and say, “We managed to do quite a really good job.” However, there was serious resistance from some countries at the beginning. It should be understood that although the regional bloc’s efforts have centred on regional integration, individual countries have, nonetheless, been fronting their own agendas. Because of this, member states were all about protecting their own individual interests. This played out during discussions on the Industrialisation Strategy when senior officials were meeting at the Victoria Falls Summit in August 2014. That stalemate rolled over to the Council of Ministers and eventually, Heads of State and Government.

The bone of contention was precisely on market access versus industrialisation. The argument by resisting countries was that we should finish market access first while Zimbabwe and others insisted industrialisation should take centre stage. This debate took a lot of time. Even when the issue went to the Council of Ministers, there was no consensus. President Mugabe, as Chair, then made an impassioned plea during one closed-door meeting in Victoria Falls.’

East African pharmaceutical manufacturers root for promotion of local production (EAC)

The Chairperson of FEAPM, Mr. Nazeem Mohamed, highlighted the need for harmonization of some of the possible incentive frameworks to promote local pharmaceutical production in the region that include; a uniform preferential margin of 20% for all regionally produced medicines and medical devices in public tenders according to Art. 35 of the Common Market Protocol; no duties on imports of raw and packing material, pharmaceutical manufacturing related equipment as well as spare parts for this equipment acquired by local manufacturers registered in the EAC; and classification or import restrictions for finished pharmaceutical products that can be produced locally, based on regional capacity and quality audits of local manufacturers.

East Africa: Regional industrialists step up fight against illicit trade (New Times)

Manufacturers will be looking to find concrete mechanisms to fight illicit trade and substandard products at the forthcoming East African manufacturing business summit scheduled for next month in Kampala-Uganda. The summit is the first of its kind to be held in the region and is expected to attract over 400 top industrialists from across the EAC. Manufacturers are expected to continue their advocacy for a more business-friendly environment in the region. Lawrence Oketcho, the head of policy and advocacy at the Uganda Manufacturers Association, said the summit will also discuss the implementation of the regional industrial policy and standardisation.

Central Corridor poised to become regional trade hub (New Times)

A renewed sense of urgency to get things done characterised last Friday’s inter-state council meeting of ministers from Rwanda, Burundi, Uganda, Tanzania and DR Congo as they discussed how to make the central corridor, East Africa’s hotbed for trade. The meeting saw ministers approve more than 20 ambitious projects to be jointly implemented by the Central Corridor partners.

Regional trade insurer eyes bigger deals (East African Business Week)

Africa Trade Insurance Agency, a multilateral underwriter wants to expand into the West Africa and other parts of the continent. ATI is currently controlled by 10 sub-Saharan countries. “Talks with ECOWAS to join as a block are ongoing and maybe be concluded this year, while Ethiopia, Mozambique and Zimbabwe are at different stages of processing membership,” Senior Underwriter Albert Rweyemamu said in an interview at a Project and Infrastructure Finance forum Dar es Salaam, Tanzania on Wednesday. “The African market is expanding and competition is bringing transformation from a cash-transaction model to credit models. Our products are increasingly needed because businesses want non-payment cover,” he said.

Mozambique millionaires seen leading growth of Africa’s rich (Club of Mozambique)

Mozambique is expected to add dollar millionaires at the fastest rate in Africa over the next decade followed by Ivory Coast and Zambia as a mix of construction, financial services and property developments boost the ranks of the rich on the world’s poorest continent. The number of people with net assets, excluding their primary residence, of more than $1 million will surge 120% in Mozambique by 2024 to 2,200, Johannesburg-based research company New World Wealth predicted. The number of millionaires in Ivory Coast will jump 109% to 4,800 while those in Zambia will double, the company forecast.

Kenya among top five countries with millionaires in Sub-Saharan Africa (Daily Nation) 

South Africa: June 2015 merchandise trade statistics (SARS)

The South African Revenue Service has released trade statistics for June 2015 that recorded a trade surplus of R5.80 billion. This figure includes trade data with Botswana, Lesotho, Namibia and Swaziland. The R5.80 billion surplus is due to exports of R90.28 billion and imports of R84.48 billion. Exports increased from May to June 2015 by R1.45 billion (1.6%) and imports increased from May to June 2015 by R0.59 billion (0.7%). The cumulative deficit for 2015 is R24.65 billion compared to R46.77 billion in 2014. [Download]

SA backs trade pact to clear bottlenecks (Business Day)

The state has set up an inter-departmental working group to consider the implementation of the agreement. It finalised a list of commitments for SA and the terms of reference for the establishment of a national trade facilitation committee. Cabinet approval would be sought for the committee to be set up and for SA’s commitments.

China's Hisense aims for bigger bite of African market (Xinhua)

Hisense, supported by the China-Africa Development Fund, in 2013 invested more than 27.4 million U.S. dollars to set up its plant in South Africa, with a daily output of 1,200 refrigerators and 1,700 TV sets. Located in Atlantis, Western Cape Province, the plant employs over 600 local workers and creates 2,600 jobs in related industries. Li Youbo, General Manager of Hisense South Africa, said the South African plant aims to produce 270,000 TV sets and 210,000 fridges in 2015. The company's made-in-South-Africa productions are exported to 14 African countries, and its market is expanding fast.

SA insurance group eyes 25% more stakes in Kenyan firms (Business Daily)

Zimbabwe: the 2015 Mid Term Fiscal Policy Review is available for download (Ministry of Finance)

Angola: Diamond sales increase by 35% (MacauHub)

Sales of Angola’s diamonds have increased year on year by nearly 35% in the first half of this year, exceeding US$573m and 4.2 million carats, according to the General Tax Administration cited by Angolan daily newspaper Jornal de Angola. Three projects are underway in Angola to increase diamond production in the mid term: Tchiuzo, valued at just over US$200 million with guaranteed annual production of 2.5 million carats, Luaxe, estimated at US$1 billion with annual production of about 10 million carats and Kimangue, which will offer greater knowledge about the existence of diamond resources in Angola for subsequent production.

Re-imagining African agriculture in the face of climate change (UNEP)

Over 1200 experts, policy makers and participants adopted the Nairobi Action Agenda on Ecosystem based Adaptation for food security and formed the Ecosystem Based Adaptation for Food Security Assembly, which re-imagines a system of agriculture for the continent that would be beneficial both economically and environmentally. The formation of EBAFOSA and the adoption of its constitution come as land degradation affects nearly 65% of Africa's land, with some 6 million hectares of productive land lost each year.

Tripartite-linked climate-smart agriculture platform launched (FAO)

Experts from the Eastern Africa sub-region have launched a new climate-smart agriculture platform that will aid in scaling up climate-smart agriculture practices in the region. The Platform will support East African countries to address sub-regional issues related to climate-smart agriculture scale up and will contribute to continental initiatives such as the Africa Climate-Smart Agriculture Alliance and the AU/NEPAD goal of having 25 million farming households in Africa practicing climate-smart agriculture by 2025. This was during a two day workshop in Kampala, Uganda hosted by the FAO Sub-regional Office for Eastern Africa and the Uganda Climate-Smart Agriculture Task Force with support from the COMESA-EAC-SADC.

EAC launches online trading platform to connect farmers with grain buyers (EAC)

The platform, dubbed G-Soko, was developed by a Kenyan-based IT firm Virtual City in partnership with the Eastern Africa Grain Council (EAGC) and the FoodTrade Eastern and Southern Africa Organization. G-Soko, the online trading platform will now enable smallholder farmers in the East Africa to sell their produce at favourable prices.

Zimbabwe: $1,7bn required for agric season (The Herald)

Zimbabwe requires at least $1,7 billion to fund crop and livestock production during the 2015-6 summer cropping season, Finance and Economic Development Minister Patrick Chinamasa has said. This is a significant increase compared to $1,2 billion that was used to fund production during the 2014-15 season.

Nairobi to open fresh talks with South Africa on visa rules row (Business Daily)

Kenya and South Africa are expected to open fresh talks in Nairobi on Monday in a bid to resolve a visa standoff that has threatened their bilateral relations since last year. “We are hopeful of a deal this time round,” said Kenya’s Foreign Affairs secretary Amina Mohamed. “We look to have Kenyans get their visa upon arrival in South Africa or even drop the need for visa for those on short travels as is the case with South Africans.”

Resolve Kenya, South Africa visa row amicably (editorial comment, Business Daily) 

Former African presidents advocate visa free movement within the continent (eTN)

Nairobi logistics firm looks South in growth drive (Business Daily)

Nairobi-based logistics company Frontier Services Ltd (FSL) is targeting southern Africa as it continues with its African expansion binge. The Hong Kong Stock Exchange-listed FSL said it has entered into talks to buy a logistics company that will give it access to the new market.

New Chairperson and Bureau for ACP Committee of Ambassadors (ACP)

The Ambassador of the Kingdom of Lesotho H.E Mrs Mpeo Mahase-Moiloa takes over as Chair of the Committee of African, Caribbean and Pacific Ambassadors in Brussels, beginning 1st August 2015 until 31st January 2016. The term will also see a new Bureau supporting the Committee of Ambassadors, comprising one representative from each of the six ACP regions. The Bureau members for the upcoming term include: H.E. Mr. Adani Illo of Niger (West Africa), H.E Mr. Roger Julien Menga of the Republic of Congo (Central Africa); H.E. Mr. Samuel O. Outlule of Botswana (Southern Africa); H.E. Dr Len Ishmael of the Eastern Caribbean States (Caribbean); H.E. Mr. Moses Kouni Mose of the Solomon Islands (Pacific); and the representative for Eastern Africa, yet to be named.

Regional port management association gets new chief (The Citizen) 

Dangote opens new cement plant in Zambia, output hits 45m tonnes (ThisDay)

South Africa: New bill takes away foreign investors' leverage (Fin24)

AGOA trade resource centre opens in Accra (USAID) 

Nigeria: CBN moves to block illicit financial flows, Naira rebounds (ThisDay)

---

SUBSCRIBE: To receive the link to tralac’s Daily News Selection via email, please »click here to subscribe«.

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)