The selection: Thursday, 17 September

Evolving banking trends in Sub-Saharan Africa: key features and challenges (IMF)

This paper discusses key stylized facts and trends of banking development in SSA, looking at a variety of dimensions such as size, depth, soundness, and efficiency. It also assess the rapid expansion of pan-African banking groups, which have overtaken the role of the European and U.S. banks that had traditionally dominated banking activities in SSA, creating significant cross-border networks and becoming the largest participants in new syndicates and large bilateral loans to finance infrastructure development. [Download]

New Unified Insolvency Act can help African SMEs improve access to finance (World Bank)

With support from the World Bank Group, 17 African countries, members of the Organization for the Harmonization of Business Law in Africa, adopted a Unified Insolvency Act last week in Côte d’Ivoire. This new law replaces the previous 1998 law which was widely believed to be lacking key features of a modern insolvency regime, particularly as regards reorganization proceedings and the treatment of creditors.

IFC in Africa: Year in Review, Fiscal 2015

SADC food and livelihoods insecurity: VAC 2015 results (Humanitarian Response)

The SADC summary of the 2015/16 regional food security and vulnerability situation based on the results of the 2015 NVACs vulnerability assessments: given the hazards faced, the number of food insecure people in the countries providing data increased by 13% (13.4 million this year compared to 10.3 million for last year) which was an above average year. The exceptions were Mozambique and Swaziland where numbers continued to decrease. In comparison to last year major increases in food insecure population are noted in Malawi, Namibia, Zambia and Zimbabwe. [Download]

South Africa: Agricultural Policy Action Plan (Agbiz)

Extract (Trade, agribusiness development and support): On the international front, the changing global environment and increasing standards on food safety excludes smaller farmers to play a critical role in international market access. Over and above this is the cost to access foreign markets. Stringent sanitary and phyto-sanitary, private standards, labelling and other technical requirements have gone beyond compliance capacity of many smallholders. Lack of market access could constraint growth and the targeted jobs that the sector intend to create. Strategic interventions are required to integrate smallholder and struggling smaller commercial farms to participate in the mainstream economy and take advantage of both domestic agro-food chains and international markets. [Download]

South Africa promotes expensive wines to boost exports (Bloomberg)

US, South Africa find common ground in bid to resolve poultry row (Bridges/ICTSD)

Kenya unveils blueprint to revive industrial and manufacturing sector (KBC)

The decade-long plan, aptly christened Kenya’s Industrial Transformation Programme (KITP), looks beyond import-substitution and export-led policy regime to develop its industries, stimulating Kenya’s ambitions as Africa’s next industrial power. Anchored on a five-point strategy, prioritizing leveraging Kenya’s comparative advantages, the plan aims at growing the manufacturing sector to levels above 15% of GDP from a static 11% over the past decade. According to Cabinet Secretary Industrialization and Enterprise Development Adan Mohamed, Kenya has identified 10 opportunities within the key strategies that will increase manufacturing sector jobs to 435,000 additional jobs in the next 5 years (+150% compared to today) and add Kshs. 200-300billion to the GDP.

Extract (Agro-processing): More than half of Kenya’s exports are related to agriculture, including tea, horticulture (i.e., cut flowers, fruits and vegetables) and coffee. We will continue to increase these exports and have identified additional opportunities in agro-processing that build on our vast agricultural potential. ƒ Tea is a staple of Kenya’s exports, worth USD 1 billion annually. However, 97% of tea is exported in bulk form. Kenya can attract a 50 to 100% price premium by promoting “Made in Kenya” brands internationally, attracting USD 200 million in value addition, and create 10,000 jobs.ƒ

Only 16% of all exported agricultural output in Kenya is processed; the rest is exported in raw form. By contrast, Tanzania processes 27%, Uganda 34% and Ivory Coast 32%. We can double the amount of our processed agricultural exports to boost agriculture, create an additional 110,000 jobs and earn USD 600 million. Eastern Africa annually imports USD 3.8 billion in raw and processed commodities such as wheat, palm oil and rice for local consumption. The majority of these imports come from outside of the region. We can take advantage of the strategic location of the Port of Mombasa into our priority sectors to set up a “food hub” where we import raw commodities in bulk and process and export consumer goods to serve the growing regional market. This could earn Kenya an additional USD 300 million in GDP and create 60,000 jobs. [Download]

Poorly managed concessioning of the container terminal could harm port (Daily Nation)

Prominent Nairobi lawyer Fred Ngatia has moved to the High Court to demand that tender evaluation documents relating to the controversial privatisation of Mombasa’s newly-built second container terminal be made public. The battle for the lucrative contract is surely going to be a cause célèbre. Indications are that we could end up with a protracted court tussle likely to drag on for a long time. With the new container terminal, Mombasa will be able to reposition itself as the reference port of the Indian Ocean and consolidate its leadership over Djibouti, Dar es Salaam, and Maputo. We should, therefore, select the very best to run it. [The author: Jaindi Kisero]

Two new papers, by Isabelle Ramdoo, on extractive sector policy issues: Resource-based industrialisation in Africa: optimising linkages and value chains in the extractives sector (ecdpm), Unpacking local content requirements in the extractive sector: what implications for the global trade and investment frameworks? (E15 Initiative)

Malawi extractive sector update: Mines Bill to be tabled in October parliament sitting (Mining in Malawi)

One foot on the ground, one foot in the air: Ethiopia’s delivery on an ambitious development agenda (Development Progress)

This case study looks at the progress achieved in material well-being, education and employment, where Ethiopia has shown particularly strong performance over the past 10 to 15 years. However this transformation is far from complete and a number of challenges remain, not least the depth and breadth of chronic poverty. A number of key lessons for the Sustainable Development Goals can be drawn from Ethiopia's experience:

South Africa: Constitution protects foreign investors’ rights (Business Day)

The Department of Trade and Industry defended its Promotion and Protection Investment Bill on Wednesday despite a slew of submissions claiming the bill was investor unfriendly. In his response to the submissions, Department of Trade and Industry director-general Lionel October said SA had an ambitious development agenda, which required new policies and regulations while ensuring it remained open to foreign investment. "SA is the favourite destination for foreign direct investment in Africa by a long way and we want to put to rest the notion that there is less protection under the bill," Mr October said.

South African businesses hoard cash in indictment of economy (Bloomberg)

Tanzania: State promises investor-friendly climate (Daily News)

Trade Hub hosts SADC TIFI thematic group cluster meeting

MTN warns against removing African tax incentive (Business Day)

Republic of Congo: 2015 Article IV Consultation (IMF)

The Republic of Congo has been hit hard by the oil price shock. Fiscal and current account balances deteriorated in 2014 reflecting increased government spending and lower oil prices. Corrective measures are now being taken. Private sector activity is held back by infrastructure gaps, a difficult business climate, and a shallow financial system. Growth and spending have yet to translate into significant reductions in poverty and progress in this area lags peers. Persistent inequality could be a source of instability.

Africa without limits (Times Live)

City bosses across Africa want national governments to ban visa requirements and allow people to move freely between the various countries. Jean-Pierre Elong Mbassi, secretary-general of the United Cities and Local Governments of Africa, said the time for keeping colonial borders had lapsed. Speaking in Sandton yesterday, Mbassi said Africa had to facilitate the movement of people to realise development and intra-continental trade it so desperately needed.

Mozambique updates: Funding development in the districts (SPEED Program), Government wants alternative north south road (Club of Mozambique), Metical devaluates almost 40% against the dollar (Club of Mozambique)

'India, Africa looking at deeper political, economic engagement' (SME Times)

Navtej Sarna, Secretary (West) in the Ministry of External Affairs, also said that India and Africa have a "collaborative partnership", which distinguishes it from the ties between Africa and other nations. Addressing the inaugural session of'National Consultation on India-Africa Partnership: Priorities and Prospects', Sarna said that India and Africa are looking at "a very tangible political and economic engagement, which keeps in view several facts", including that together both comprise one-third of the world population. He said India is only seven years old in its partnership with Africa in the IAFS format, which began in 2008, while Japan, the EU and China have two decades old partnership with the continent.

Mapping the world’s winners and losers from China trade (Foreign Policy)

UNU-WIDER 30th Anniversary conference started today: 'Mapping the future of development economics'

The growth-employment-poverty nexus in Latin America in the 2000s: Brazil country study (UNU-WIDER)

AU gets $70m to fight insurgencies (ThisDay)

C20: new civil society policy paper on tax justice (Tax Justice Network)

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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)