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Building capacity to help Africa trade better

tralac’s Daily News selection: 27 August 2015

News

tralac’s Daily News selection: 27 August 2015

tralac’s Daily News selection: 27 August 2015

The selection: Thursday, 27 August

Starting today, in Luanda: African Caucus of finance ministers, central bank governors

The African Caucus Meeting is meant to seek a common ground among the continental financial institutions on relevant matters in their relation with Bretton Woods institutions. The subjects that stand out on the agenda in the six panels are the General Vision of the Regional Economy, Economic Transformation and Diversification, Discussion on the 2015 African Caucus Memorandum and the Financing of Regional Projects connected to infrastructure.

Services trade and African integration: presentation by William Davis (UNECA)

Extract from policy recommendations: Liberalisation of trade in services can help African businesses to benefit from each other’s expertise and increase their competitiveness. But liberalization not always good. Which policies are successful seem to vary by sector. Forthcoming ECA-AUC research on infrastructure services examines hundreds of different policies. [Access other, new postings from the CFTA training workshop on trade in services negotiations]

Why regional payment systems are assuming greater importance (NewsDay)

Africa’s regional payment systems, such as Siress, are expected to play a growing role in the continent’s economic growth story, particularly as intra-African trade picks up. These payment systems are set to be both beneficiaries and drivers of Africa’s economic growth. Underlying growth in trade volumes will create demand for more advanced cross-border facilities and services. “Without a functioning payment system, the vision of increased intra-regional trade will not materialise. It’s a fundamental prerequisite,” Hugo Smit, head of sub-Saharan Africa for Swift says.

Regional integration arrangements in Africa: is large membership the way forward? (Brookings)

Is the attempt at rationalizing the multiple regional integration arrangements (RIAs) across the continent a milestone towards greater cooperation across the continent? Drawing on observations and analysis of the recent experience, I argue that, in spite of the unfavourable geography that makes it difficult to deal with the high costs of heterogeneity, integration initiatives in small member groups will produce the highest benefits. [The author: Jaime de Melo]

2015 AGOA FORUM: selected updates, below

Remarks by Ambassador Michael Froman

In the coming days, let’s stretch our thinking and our ambitions to match this historic extension. We need to make sure AGOA’s potential is fully explored and its benefits fully utilized. That will require work on both sides of the AGOA equation. Our African partners will need to design strategies to take full advantage of AGOA’s tariff preferences, and the United States will need to work to make sure we are providing the trade capacity building and other assistance necessary to support those strategies. But we also need to start thinking about our long-term, trade and investment relationship today, just as the theme of this summit encourages. We do not come to the table with a predetermined outcome in mind, but rather with the perspective that we need to start a dialogue about the emerging opportunities and challenges that will shape the global economy during the next decade, and how we might best navigate this fast-changing landscape together.

SA car export boom sharpens AGOA focus (Business Day)

On Wednesday, Mr Davies was at pains to stress that SA had made "tremendous progress in addressing issues that were raised by the US and, therefore, our country continues to adhere to the Agoa eligibility requirements". "On June 24 2015, the Cabinet took a decision to lift a trade restriction on cattle and products of bovine origin from countries that previously reported bovine spongiform encephalopathy, including the US. Minister Zokwana has written to his US counterpart, secretary Tom Vilsack, on August 6, to announce that SA has lifted trade restrictions on cattle and products of bovine origin from the US," said Mr Davies.

Willemien Viljoen: 'Any progress on the permanent extension of South Africa’s AGOA preferences?' (tralac)

African countries urged to intensify education on AGOA to reap benefits (Ghana Business News)

Trade pacts to curb poaching in Africa, US official says (VOA)

USDA selects ASA’s WISHH to develop West African poultry and feed market (KMAland)

Sub-Saharan Africa, in 2015 Global Agenda for Economic Freedom (Heritage)

Barriers on agricultural produce killing African economies, says Foreign CS (Daily Nation)

A better agreement on agricultural exports will be Kenya’s priority when the world converges in Nairobi for the WTO summit this December. In a meeting with Swedish investors on Tuesday, Kenya’s Foreign Affairs Cabinet Secretary Amina Mohamed argued that the world should adopt better agreements on agricultural produce to aid African economies that depend on it. “African countries’ investments in agriculture have been sinking in a huge black hole, because these legitimate investments cannot compete with distorting subsidies derived from the current Agreement on Agriculture regime,” she said in Stockholm where she is on official visit, according to a statement.

Africa urges Indian businesses to invest in the continent, not just sell (LiveMint)

In a rare move, the envoys of several African nations have criticized Indian entrepreneurs for looking at the continent merely as a vast export market and source of raw materials, urging a rethink of business strategy with a focus on long-term investments in Africa. At a business meeting organized in New Delhi by the India-Africa Chambers of Commerce and Industry in New Delhi on Wednesday, the envoys called on Indian businessmen to be present in Africa and utilize opportunities that they would otherwise lose to their Chinese and European counterparts.

Enhancing Trade and Investment between India and Nigeria seminar: 'There's no Africa without Nigeria, says India' (The Cable)

Do EPAs with the European Union benefit developing countries?  (Antillean)

Therefore, let it be fully understood; the EPA is not just an agreement with the European Union - it is an agreement with the world. [The author, Ronald Sanders, is Antigua and Barbuda Ambassador to the US]

East Africa - China trade routes fastest growing (IHS)

Trade routes from China to Africa are expected to see a marked increase over the next five years, with the highest growth expected to be seen from the East African to China route, incorporating Malawi, Mozambique, Zambia, and Zimbabwe. “Trade between East Africa and China is expected to increase by 91 percent by 2020,” Atkinson said. “It’s all around manufactured goods. East Africa is becoming a new hub for the Chinese.”

What impact could the 21st Century Maritime Silk Road have on South Africa? (SAIIA)

4th China-Africa People's Forum: update (AU)

FOCAC VI: background and 2015 focus priorities (SAIIA)

Standardization in improving market (The Ethiopian Herald)

According to Demitu Hambisa [Ethiopia's Minister of Science and Technology], one of the challenges African countries are facing is market access in the globalized world. The quality of products and services that they provide should conform to the requirements of the consumers. This implies that companies and service organizations should have sufficient capacity, skilled manpower and appropriate systems to produce goods and services to the required standards. However, most African countries do not have such capacity to make immediate advantage of new trade opportunities; that is to say, due to lack of value addition and diversification in their commodities, they have less probability to be sold in feasible price in the world market.

TRA, freight forwarders to form joint committee (IPPMedia)

In a move to improve and strengthen freight forwarders services in the country, Tanzania Revenue Authority in collaboration with Tanzania Freight Forwarders Association are working to establish a special committee to work on challenges facing the industry.

Uhuru bid to revive Lake Victoria transport seen boosting trade  (Business Daily)

Kisumu has received a major boost in its bid to become a regional transport hub after President Uhuru Kenyatta pledged to revive its port in fresh efforts to expand trade with East African neighbours. The port handles mainly Uganda-bound cargo. The plan to revive the facility comes in the wake of a sugar import deal with Uganda which has caused a political storm in Kenya. As part of the Kisumu Port revival plan, the government will prioritise reopening the collapsed Kisumu Cotton Mills and Miwani Sugar Factory.

Swazi government yet to approach Mozambique on shipping port's cross country canal (Club of Mozambique)

There are multiple problems with this scenario. First, no point on the coast is a mere 26 kilometres from Mlawula. As the crow flies, the nearest point on the Mozambican coast is over 70 kilometres from the site of the proposed port. Furthermore, as anyone who has driven from Maputo to Swaziland can testify, the land rises steeply. Canals are fine for transporting goods over flat terrain – but if there are hills in the way, locks must be built, dramatically increasing the costs. Building a canal with a system of locks capable of holding ocean-going vessels would be a massive engineering undertaking. Such an operation is also entirely unnecessary. Swaziland’s main trading partner is South Africa.

Zambia: ZCTU advises govt to be firm over taxes, refuse blackmail (The Post)

In his reflections after attending a Botswana conference on illicit financial flows in Africa, ZCTU deputy general secretary for finance and administration Misheck Nyambose said politics should not come into play when people call for a fair share of the country’s mineral wealth. “Look at the tax regime in the mines today; we were very happy with the initial position of increasing the taxes for the mines to get the best out of it on behalf of Zambians. Unfortunately, politics came into play and the good measures that the government had put up were attacked and there was a lot of blackmail from the multinationals. Our encouragement to the government is that they must remain firm when they come up with measures that protect the interests of Zambians."

Zimbabwe: Unplanned food imports drain fiscus, says VP (The Herald)

Unplanned food import expenditure is a major drain on the fiscus especially when the economy is experiencing challenges, Vice President Emmerson Mnangagwa has said. Officiating at the 3rd annual agro-business conference hosted by the National Economic Consultative Forum at the Harare Agricultural Show yesterday, Cde Mnangagwa said there was need to reduce imports especially on products that could be produced locally. “Maize and small grains production during the season decreased by 9% and 71% respectively. As a result government is working closely with development partners to import grain. These unplanned expenditures on food imports are a major drain on the fiscus and they further worsen our balance of payment position already negatively affected by imports of fuel and manufactured products that are not produced within our borders.”

Kenya: Treasury targets public debt cut to 45% GDP (Business Daily)

The Treasury intends to cut the public debt level to about 45% of the gross domestic product in the next few years, down from the current level of 51.5%. Domestic debt stands at Sh1.4 trillion while foreign one is at Sh1.3 trillion, making a total of Sh2.7 trillion. At a go, the Treasury increased the public debt by Sh283 billion ($2.75 billion) when it raised money last year through a sovereign bond. The debt has risen in the past one year due to the spending on infrastructure, especially the standard gauge railway in which the government is providing more than Sh100 billion besides the Sh330 billion loaned by the Chinese government.

ILO, partners empower people risking HIV infection along transport corridors (IPPMedia)

Salomao: Global financial crisis has delayed regional integration (Club of Mozambique)

'Not SADC’s place to reject Mswati' (IOL)

SA logistics firm negotiating to buy 30pc in Kuehn+Nagel, Kenya (Business Daily)

The 7th edition of trade fair of Chinese products in West Africa kicks off in Benin (Xinhua)

Zimbabwe: No need to import cooking oil – CZI (NewsDay)

ECOWAS healthcare forum (The Nation)

Ethiopia first country to launch ClimDev-Africa Special Fund project (AfDB)

47th ASEAN Economic Ministers’ Meeting: statement

ASEAN to ‘upgrade’ trade deals with Japan, China and South Korea by year’s end (Japan Times)


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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)

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