News
tralac’s Daily News selection: 23 September 2015
The selection: Wednesday, 23 September
Today, in Brussels: SADC Day Business Forum
Next week: Namibian-German Centre for Logistics (NGCL) conference
Recently launched: the Netherlands-African Business Council's African Corridors platform
Ambassador Thiam Diallo, speaking on behalf of the C4 countries and other cotton-producing countries from Africa, LDCs and ACP, stressed her preoccupation at the lack of progress on the cotton issue in the agriculture negotiations. She noted that despite the increasing trend of assistance to the cotton sector, African cotton-producing countries remained vulnerable to declining international prices and high production costs. In view of the economic and social importance of the cotton sector in Africa, she underscored the need to address meaningfully all aspects of the cotton issue in the run-up to the Nairobi Ministerial Conference (MC10) for a successful resolution of the dossier. [Various downloads available]
Angola: Trade Policy Review (WTO)
The second review of the trade policies and practices of Angola started yesterday and continues on 24 September. The basis for the review is a report by the WTO Secretariat and a report by the Government of Angola. Extract from Government's report (4.1.1): Despite the autonomous liberalization and integration efforts in world trade, Angola registered a large delay in implementing the Uruguay Round Agreements. This is due to the particular political developments that occurred during the last decades. In this regard, Angola needs a longer period of transition to adjust its national legislation to WTO agreements guidelines and an appropriate technical assistance in order to strengthen its institutional capacity and financial technological means.
Uganda needs robust AGOA strategy - analysts (Daily Monitor)
Among those calling for the development of a strategy so as to take full advantage of AGOA, is the chairman of National Planning Authority, Mr Kisamba Mugerwa. According to him, it is time Uganda got a strategy before it ends up playing another cameo role as it has been in the last 15 years yet it has the potential to take up a leading role in the scheme. “We need an AGOA strategy. It will ensure that things like standards, quality and supply market are met,” Mr Mugerwa told participants attending the National Stakeholder Consultative meeting on the Agoa Extension and Enhancement Act of 2015, in Kampala last week. He added: “Supplying just one US supermarket is not a joke. That is why I will support an AGOA strategy because if we can meet the US standards, then we can export anywhere else.”
A technology bank for LDCs by 2017? (UN)
Two important global development frameworks, agreed upon in July, mention the establishment of a Technology Bank for LDCs: the outcome document of the Third International Conference on Financing for Development and the 2030 Agenda for Sustainable Development. The fact that the bank is mentioned in both documents and will be discussed during the UN General Assembly in September might create momentum to make significant strides in the process of establishing the bank. Turkey proposed to host the Technology bank for LDCs.
Tanzania: Enhancing linkages between tourism and sustainable agriculture sectors (UNCTAD)
Tourism and agriculture are important contributors to the development of the local economy. Many developing nations that are now experiencing rapid tourism growth have agrarian societies and tourism is the first or second source of export earnings. For example, 20 out of the world’s 48 LDCs rely on tourism and agriculture as the basis for the livelihoods of most of their inhabitants. This report proposes a set of potential thematic strategies that can be used as stepping-stones for building an institutional framework able to link the tourism and agriculture sectors at multiple levels – country, regional, local and community. [Download]
In Kinshasa: Rwanda, DRC, Uganda sign the Greater Virunga Transboundary Collaboration Treaty
How is Rwanda positioning tourism sector to fetch home more revenues? (New Times)
Lesotho-South Africa: details of the Lesotho Special Dispensation (GCIS)
The Minister, Malusi Gigaba, has said repeatedly that agreements on migrants between countries cannot be generic. They must be defined by specifics and dynamics of negotiation between respective countries. South Africa and Lesotho share a very different dynamic and therefore require measures that would take cognizance of these dynamics. It is in this context that Minister Gigaba announced the Lesotho Special Dispensation to regularise the status of undocumented Basotho in South Africa. The Ministers agreed also to explore the feasibility of implementing a trusted traveller system. Both Countries need a secure, convenient and fast cross-border movement control system for frequent travellers. This will assist to facilitate legitimate cross border business, trade and travel.
South Africa: Visa rules drive 11% slide in tourist arrivals (Business Day)
China to invest $2.8bn in Northern Cape (IOL)
China has committed to investing $2.8bn in the Northern Cape during the signing of trade agreements between the Hunan Province and the Northern Cape on Tuesday at the start of Friendship Week between the two provinces. The investment will be in the form of economic development including machinery, transport, infrastructure and engineering in the province. It also includes an investment of $40 million in the Port Nolloth harbour.
Investment protection bill changes name, not substance (Business Day), Promotion and Protection of Investment Bill: DTI's presentation to Parliament (AgBiz)
Mozambique: Government wants private sector in roads and water (Club of Mozambique)
According to the incumbent minister of Public Works, Housing and Water Resources, the road sector is attractive for private investment because it can get feedback through the tolls, for example. "We have a good example of TRAC, which operates on the N4. We are in the establishment phase of a concession in Tete province with the "Roads Zambeze", where there was a great investment. The "Maputo Ring Road" (Circular de Maputo) will also be complemented by the bridge to Catembe and the road to Ponta do Ouro, a large investment to be recovered in tolls," he said.
Mozambique: FinScope Consumer 2014 report (FinMark Trust)
The survey showed that 20% of the adult population of Mozambique are banked, indicating an increase from 12% in 2009. The level of financial exclusion has decreased from 78% in 2009 to 60% in 2014.
Malawi's mining potential (World Bank)
New areas showing potential of mineral deposits have been discovered in Malawi, boosting opportunities to develop the country’s mining industry, attract investors and diversify the country’s agricultural-based economy. The potential mineral deposit discovery comes at the end of a year-long geophysical survey co-financed by the World Bank and the European Union through the Bank’s Mining Governance and Growth Support Project. The survey has produced high-resolution data that provides insight into the country’s mineral potential which will continue to be explored.
COMESA's Regional Payment and Settlement System: update
Eight Member States are now using the Regional Payment and Settlement System (REPSS) which allows easier transfer of funds within COMESA in conducting business. These are DR Congo, Kenya, Malawi, Mauritius, Rwanda, Swaziland, Uganda, and Zambia.
Rwanda: Mixed fortunes for agents as customers embrace direct cross-border mobile money transfer service (New Times)
This direct service, especially between MTN Rwanda and MTN Uganda, has created uncertainty among mobile money agents who have been collaborating with their counterparts in Ugandan towns like Kabale, Mbarara and Kampala to send money on behalf of Rwandans at a fee. This, therefore, means that MTN Mobile Money subscribers are the big winners. So what will happen to the whole chain of agents who these people previously relied on? Statistics show that at least 6.4 million Rwandans now have a mobile money account, way higher than the banked population.
SADC multi-stakeholder water dialogue
The 7th SADC multi–stakeholder water dialogue, 29-30 September, will also serve as a platform to validate the fourth Regional Strategic Action Plan which details the 5 year programme for the water sector (2016–2020) and supports the implementation of the RISDP and Industrialisation Roadmap and Strategy.
Trade in sustainable fisheries (UNCTAD)
The UNCTAD, Commonwealth Secretariat Ad Hoc Expert meeting on Trade in Sustainable Fisheries [next week] aims to provide a platform for discussion of possible approaches and options within the trade policy toolbox to mainstream sustainable fishing practices, and trade fish and fish products in the multilateral trading system, trade negotiations, and relevant UN and Commonwealth processes, while enabling the conservation of fisheries resources, marine ecosystems for the livelihoods of current and future generations. [Downloads available]
Kenya shrugs off growing competition for Ethiopian cargo (Business Daily)
The government has downplayed concerns that Ethiopia’s growing interest in the port of Berbera could affect a new gateway currently being constructed in Lamu. Lapsset Corridor Development Authority Director General Silvester Kasuku on Tuesday said most of the regional ports are too small and that Lamu could handle bigger ships. “The studies that we have undertaken indicate that there is a level to which Berbera Port remains in business and there is a level at which the Lamu Port also remains in business—and they complement each other,” he said. “They each have what we call the effective demand corridor length and they have a meeting point beyond which each of them does not interfere with one another.”
Lapsset investors urge government to tame rocketing land prices (Daily Nation)
AUC, Gulf of Guinea Commission relations are intensifying (MENA FM)
Two issues were raised during the meeting: the cooperation on maritime and blue economy issues and the formalization of the relationship between the Commission and the Gulf of Guinea Commission within the ambit of the GGC Treaty and the AU African Integrated Maritime Strategy 2050. Mr Samuel Kam-Domguia, coordinator of the 2050 Aim Strategy taskforce, also suggested that the maritime code of conduct signed/ratified by ECOWAS and ECCAS is a good example and consideration should be given to its adoption by all AU members States.
West Africa Gateway: NewsBrief
African Poultry Wrap: West African producers fret over imports (The Poutry Site)
Azevêdo: WTO and UNCTAD are united in supporting development (WTO)
Another major example of UNCTAD and the WTO’s joint efforts is the Aid for Trade initiative. To date, more than $245bn have been disbursed through its programmes, helping developing and least-developed countries improve their trading ability and tackling their infrastructure constraints. Research has found that one dollar invested in aid for trade results in nearly 8 dollars of exports from developing countries in general – and in 20 dollars of exports for the poorest countries. When we join forces I think we can achieve a great deal. And let me be really honest – I think there used to be a perception that UNCTAD and the WTO had quite different agendas. But that is not the case today.
First US-India Strategic and Commercial Dialogue: statement (Department of State)
The Sides applauded the focus on Innovation and Entrepreneurship as an area for cooperation. They agreed to facilitate an innovation forum in 2016, a platform for U.S. and Indian entrepreneurs to share best practices in promoting a culture of innovation and the creation of sister innovation hubs. The Sides launched a joint work stream on Ease of Doing Business. They agreed to continue exchanges of information and best practices on cross- border trade, and to continue commercial law-related initiatives on issues like insolvency and contract enforcement, and transparency.
India-EAC relations to be strengthened (EAC)
Mr Arya, India's High Commissioner to Tanzania and Representative to the EAC, said he would work closely with the Confederation of Indian Industries and the Indian Exim Bank in these initiatives, noting that these partnerships should for a start be between these two institutions and the East African Development Bank and the East African Business Council. Dr Sezibera also cited the support granted to the Community by India in the preparation of the East African Railways Master Plan the implementation of which he said would revolutionize the transport sector in the region. He disclosed that that one of the challenges faced by the EAC in relation to the free movement of goods across the region was the porous borders with non-EAC neighbours, adding that this issue was being addressed.
Regional cooperation on development finance: Namibia has benefitted (New Era)
Vale shuns path of equity sales, "working hard" to close Moatize coal financing (Club of Mozambique)
South Africa rail plans would cost a bank-breaking $110 billion, Transnet says (M&G Africa)
KEBS sets new rule for vehicles imported from UAE (Daily Nation)
Rwanda: EU suspends funding for cross-border road project (New Times)
Multinationals should pay full taxes, African MPs say (Daily Monitor)
Uganda to benefit from EU Shs7 trillion migrant cash (Daily Monitor)
Kenya: Maize farmers face a crisis on East Africa import rules (Daily Nation)
Multi-dimensional poverty in Ethiopia: changes in overlapping deprivations (World Bank)
Taffere Tesfachew: 'Unlocking the trade and growth potential of Africa’s services sector' (IDS)
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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)
