News
tralac’s Daily News selection: 16 September 2015
The selection: Wednesday, 16 September
Tomorrow, in Maputo: National content as a means to achieve inclusive growth
CTA, the Confederation of Economic Associations of Mozambique, with the support of FAN - Fund for Business Environment - organises on Thursday September 17, its 1st International Conference on National Content under the motto: 'National Content as a Means to Achieve Inclusive Growth'. This conference aims to disseminate, improve and harmonize the national understanding of National Content, namely the monitoring of the implementation of its respective political and legal instruments, as well as debating how may Mozambique's Trade Policy support industrial development; and discussing SMEs certification and quality rules, their use and access.
Starting tomorrow, in Nairobi: COMESA transport industry regional dialogue
The convening of this event arises from a call from businesses to have direct dialogue with regional trade facilitators, in order to come up with common solutions to impediments to trade in areas of delays in transit time, cargo handling, multiple rules and requirements, cabotage rule, cargo tracking systems among others. The outcomes of the meeting are: to develop a common position on key policy, regulatory and practical recommendations that are to be presented to the Ministers of Infrastructure in October, 2015 for adoption and further implementation by the public and private sector and to formally establish a common platform for the private sector to engage policy makers on transport and trade logistics constraints in the COMESA region.
Transnet seeks to cross SA’s borders (IOL)
Transnet, the South African ports, rail and pipelines operator, is pursuing opportunities to expand on the continent and in the Middle East as the state-owned company seeks to redress an over-dependence on its home market. The utility wants 25% of revenue to come from outside South Africa by 2025, acting CEO Siyabonga Gama, 48, said in an interview at Bloomberg’s office in Johannesburg. That compares with 4.2% of its R61.2 billion ($4.5 billion) in the 12 months through March this year. The company has started a process to form a new unit, to be called Transnet International Holdings, which will oversee the foreign expansion, he said.
Roberto Azevêdo: 'Nairobi Ministerial must deliver on development' (WTO)
Director-General Roberto Azevêdo, at a joint meeting of the Africa, Least-developed (LDC) and African, Caribbean and Pacific countries (ACP) groups, on 14 September, said that the priority at the Ministerial Conference in Nairobi, in December, must be delivering on development. He assured them that their issues are at the forefront of his mind and “that I will do everything I can to support meaningful development and LDC outcomes in Nairobi”. This is what he said:
Amina C. Mohamed: report on an informal meeting of AU Trade Ministers (WTO)
Although there were questions raised on the definition of success, Ministers were unanimous that the Tenth WTO Ministerial Conference in Nairobi - the first to be held in Africa - must be successful. There was pragmatism in the range of views expressed by Ministers. Most noted that outcomes that could be harvested at MC10 should be harvested. Ministers were keen for the adequate number of ratification to enable the coming into force of the Trade Facilitation Agreement (TFA) and the Amendment to the TRIPS Agreement by MC10. There was positive acknowledgement of “new entrants” (accessions), as part of the deliverables for Nairobi. However, there were questions regarding the status of unresolved negotiating matters in the work programme after the Nairobi Ministerial Conference. Some felt that unresolved questions should be taken forward. Ministers agreed to deepen their exchange of views on this question.
Ministers reviewed the question of the development aspects of the rules-based Multilateral Trading System. There was a consensus that the ultimate goal of trade policy was welfare and development. It was imperative that trade contributes to growth of a healthy global economy from which individual members would derive benefits. Ministers reiterated the fact that development should remain at the heart of the outcomes of MC10. A number of Ministers took the position that development was not a standalone, but horizontal issue.
The high and low politics of trade: can the WTO's centrality be restored in a new multi-tiered global trading system? (World Economic Forum)
Developing countries should brace for possible tremors in upcoming US Federal Reserve tightening (World Bank)
The new research paper assesses the potential impact on developing economies if financial market reaction to Fed tightening mirrors the upheaval that occurred after the U.S. central bank signalled in May 2013 that it was poised to taper its pace of quantitative easing. “Financial stress in global markets tends to disproportionately affect emerging and frontier economies,” said Kaushik Basu, World Bank Chief Economist and Senior Vice President. “This paper explores how market volatility resulting from the upcoming tightening cycle could relay significant adverse implications for growth and financial stability. This would fall the most heavily on the most vulnerable countries.”
Continental Education Strategy for Africa 2016-2025 (African Union)
In the bid to “create” a new African citizen who will be an effective change agent for the continent’s sustainable development as envisioned by the AU and its 2063 Agenda, the African Union Commission has developed an Africa comprehensive ten-year continental education strategy. This strategy is driven by the desire to set up a "qualitative system of education and training to provide the African continent with efficient human resources adapted to African core values and therefore capable to achieve the vision and ambitions of the African Union. Those responsible for its implementation will be assigned to "reorient Africa’s education and training systems to meet the knowledge, competencies, skills, innovation and creativity required to nurture African core values and promote sustainable development at the national, sub-regional and continental levels". The guiding principles and pillars serve to guide the implementation of the Continental Strategy pursing twelve Strategic Objectives supported by specific areas of work. [Downloads in English, French]
Building capacity for a results-oriented engagement between the AUC and RECs on IDA-supported economic development (World Bank)
SA-AGOA: selected updates
Progress in talks on US-SA stalemate (Business Day): Talks between US and SA veterinary officials in Pretoria over the removal of SA’s health-related import bans on US chicken, beef and pork made "some progress", the office of the US trade representative said in a terse statement on Tuesday.
US and SA agree on poultry imports (Business Report), Media release by SA's DTI/DAFF (Agoa.info), Stefan Selig: 'US and Africa to make trade history' (Business Day), The US-SA Strategic Dialogue takes place today (GCIS)
South Africa's Promotion and Protection of Investment Bill: Local bodies add voice to investment bill worries (Business Day), Investors mull leaving over bill, says EU chamber (Business Day)
Jacob Zuma: International Relations Peace and Security briefing (The Presidency)
In January and April this year, our own country was forced to confront the difficulties of migration when foreign and African nationals were attacked. We have since then, been working hard with SADC sister countries to find solutions to this international challenge, especially the problem of illegal migration. South Africa experiences a mixed migration flow comprising people who are genuine asylum seekers and those who flee to the country in seek of economic relief. Another challenge within the SADC region exists where borders separate communities and families. In some instances, the borderline does not effectively act as a barrier to these communities, particularly those that conduct normal day-to-day activities such as schooling, trade and medical care as they will keep coming each day. This situation demands innovative solutions.
Migration priorities and normative and institutional frameworks in the IGAD region
Excluding pastoralist mobility and those displaced due to natural and man-made disasters and development projects, the IGAD region currently produces 6.5 million IDPs, 88 % in Sudan, South Sudan and Somalia. This constitutes more than 17% of the global and half of Africa’s IDPs are in the Horn of Africa. It also hosts 2.46 million refugees, while at the same time producing 3.12 million refugees. In relative terms, the region hosts 12% and produces 15% of the world’s refugees, carrying far more than its share of the global burden. As the fifth largest host, Ethiopia alone hosts 665,000 refugees. [The author: Mehari Tadelle Maru]
Botswana: Reserves, bonds to fund 2015/16 deficit (Mmegi)
The Ministry of Finance and Development Planning will finance this year’s projected P4.03bn deficit by drawing down on government’s reserves and bond issuance, a senior official has revealed. The deficit, which represents 2.6% of GDP, is the first in four years but secretary for economic and financial policy, Taufila Nyamadzabo said government would have no troubles funding the shortfall. Botswana may also have to pay R7 billion back to the South African treasury after an adjustment of the share the country was supposed to receive from the Southern African Customs Union (SACU).
Major breakthrough for Zimbabwe on debt (NewsDay)
Speaking at a media briefing in Harare yesterday, AfDB director Sibry Tapsoba, who is the head of a 12-member delegation currently in the country, said the financial institution had set aside some funds to assist Zimbabwe to clear its arrears. He said the amount was yet to be agreed as it required approval from the Abidjan-headquartered AfDB, “but at this point and time we have just reassured the [Finance] minister [Patrick Chinamasa] we have the resources available. The total amount of arrears for Zimbabwe to AfDB is $601 million and the resources that we are putting aside will clear the AfDB arrears, but we must clear the arrears of IMF and the World Bank,” Tapsoba said.
Batoka delays cost $45bn (The Herald)
Delayed construction of the Batoka Gorge Hydro Electric power plant has resulted in economic losses to Zimbabwe and Zambia of at least $45bn, the World Bank has said. Zimbabwe and Zambia are constructing a hydro-electricity generating plant on the Batoka Gorge of the Zambezi River at a cost of an estimated $3bn, which is expected to produce 1 600 megawatts to be shared equally between the two countries. The Batoka hydro project was conceived in 1972 out of a study that the Central African Power Corporation (the predecessor of the Zambezi River Authority) instituted but construction was delayed due to various issues including an impasse between the two states over an outstanding, colonial-era debt. The World Bank, through its organ, the Co-operation in International Waters in Africa assisted in resolving the impasse, paving way for the project to take off. [Cooperation in International Waters in Africa: an overview(pdf)]
Kenya unveils plans for Sh5.3bn power lines to Tanzania (Business Daily)
Kenya on Tuesday made clear its intention to sell excess electricity to Tanzania when it launched the construction of a Sh5.3 billion power transmission line to link the two countries. Kenyan officials said the construction of the 93-kilometre line will start in January and end in December 2017, coinciding with the planned generation of additional 5,000 megawatts (MW) of electricity to the grid.
Equatorial Guinea: 2015 Article IV Consultation (IMF)
A decade–long hydrocarbon boom has led to a fast rise of average incomes and spurred a large scaling up of investment spending on infrastructure, although progress on social indicators has been slow. With hydrocarbon extraction shifting into a trend decline in the context of weak oil prices outlook and still high capital spending, the fiscal position has weakened and fiscal buffers diminished.
Current reporting on private-sector instruments in DAC statistics (OECD)
Questions for discussion: How to encourage broader and more transparent reporting on private sector instruments (as a minimum, provision of descriptive information at project level for instruments classified as ODA)? What are the constraints/limitations that members experience in the reporting on private sector instruments? What are the main sensitivities? [ODA definition: how does the concept of concessionality apply to private-sector instruments?]
President Buhari assures French investors of favourable business environment (Premium Times)
African central bankers forge alliance to promote financial inclusion (ThisDay)
Uganda tops list of EAC open budgets (The Citizen)
India: Exports contract for ninth month in a row (LiveMint)
India: Assessment of state implementation of business reforms (World Bank)
C20 Summit 2015: draft communiqué
Gaborone Declaration on Sustainability in Africa: SA stakeholder’s meeting (GCIS)
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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)
