News
tralac’s Daily News selection: 2 October 2015
The selection: Friday, 2 October
This study evaluates the economic impact of the proposed COMESA-SADC-EAC Tripartite Free Trade Area on 26 African countries. It uses the global trade analysis project computable general equilibrium model and database to measure the static effects of the establishment of the TFTA on industrial production, trade flows and consumption in the tripartite region. The results indicate a significant increase in intra-regional exports as a result of tariff elimination, boosting intra-regional trade by 29%. Particularly encouraging is the fact that the sectors benefiting most are manufacturing ones, such as light and heavy manufacturing, and processed food. Concerns have been raised that industrial production in the TFTA would concentrate in the countries with highest productivity levels - namely, Egypt and South Africa. Simulation results suggest that these fears are exaggerated, with little evidence of concentration of industries in the larger countries. [The authors: Andrew Mold, Rodgers Mukwaya]
Currency split mooted in Africa seen opening door to inflation (Bloomberg)
As Chad President Idriss Deby calls on the nations of western and central Africa to ditch their 70-year-old currency union, the voices of opposition are growing louder. The prime minister of Ivory Coast, the largest economy in the 14-member CFA franc, says the peg to the euro helps maintain stability and attracts investors. Capital Economics Ltd. and Renaissance Capital argue it keeps inflation down. Deby has his backers, too, with an Ivory Coast opposition leader saying the currency is artificially strong and hobbles competitiveness.
Economic Monetary Community of Central Africa Financial Institutions: implementation status results report (World Bank)
Future-proofing Africa’s port terminal operations (Business Report)
The International Transport Forum Transport Outlook 2015 estimates that trade between African countries will increase by 715% between now and 2050. International freight transport volumes are also expected to grow by 200% over the same period. This is not altogether surprising as volumes of trade through port terminals have to grow to sustain economic growth, jobs and food security across Africa. Effectively this means that we, as port operators, have to look beyond the terminal gates in order to ensure the future sustainability of our operations and the local economy and that we have to take cognisance of the various challenges, including the health risks, that come with the predicted necessary expansions.
First stage of modernisation of Port of Nacala, Mozambique, almost complete (MacauHub), Rwanda set to host world's first drone port (The Citizen)
COSATU International Conference on Africa: declaration
COSATU convened this important International Conference on Africa to create a platform and space for the federation, our alliance partners, sister unions from various parts of the continent and fellow international solidarity organizations and other progressive forces to focus on the state of our continent and the imperative of its fundamental transformation. This platform was meant to harness a deeper analysis and share perspectives on the situation facing Africa in order to develop viable and sustainable alternatives. The Conference deliberated on Commissions on six interrelated topics.
South Africa’s visa regime: three perspectives
Minister Malusi Gigaba: International Students Dialogue on International Migration (GCIS)
Visa rules: SA could lose R7.5bn a year (Business Report)
Security bill threat to SA-US relations (Business Day)
US officials, anxious to repair a troubled "partnership" with SA, fear a deepening breach in relations if President Jacob Zuma signs the Private Security Regulation Amendments Bill in its present form. This is because of mandates imposed by Congress requiring the US to vote against International Monetary Fund and World Bank loans to any country found to have expropriated US property without compensation or arbitration. It would also have to deny bilateral official finance and guarantees to those countries.
Swaziland: ‘SACU’s E2.4 billion drop severe’ (Swazi Observer)
As the country is faced with the Southern Africa Customs Union revenues shock, the International Monetary Fund has called for the immediate implementation of programmes to show that government’s commitment in dealing with the challenge of continued decline in receipts. IMF Head of Mission to Swaziland Jiro Honda, who was in the country for two weeks to conduct the 2015 Article IV consultation, noted that Swaziland’s economy was faced with new challenges. Honda said specifically the recent weakening of the regional economic outlook would have adverse impacts on Swaziland through trade and financial channels.
United States helps Mozambique improve business climate (MacauHub)
The United States Agency for International Development will grant Mozambique US$1.9 million to finance a programme to improve the business climate in the country, under an agreement signed Tuesday in Maputo. Under the agreement, which guarantees funding for the programme over four years, the United States will support Mozambique in improving the business climate and public-private dialogue, policy and strategy development and technical support to the Ministry of Industry and Trade, institutional training for the competition authority and technical support for the implementation of contracts and programme and audit management.
For Zim one-stop-shop a means not an end in itself (Zimbabwe Independent)
It’s the final quarter of 2015 and it appears every stakeholder in all sectors of the economy is seized with the push to finalise the one-stop-shop investment centre. The best practices, as evidenced by how Rwanda managed to turn around its economic fortunes, have made a compelling case study not only for the East African states but also the Zimbabwean government. It is only a week since a workshop was held with the focus on establishing a one-stop-shop and as industrialists we look up to the intention with unprecedented excitement. [The author, Christopher Mugaga, is chief executive of the Zimbabwe National Chamber of Commerce]
Govt protectionist policy spurs industry revival (NewsDay)
Government policies, which have been introduced in the past six months to protect local manufacturers from cheap imports, have revived many Bulawayo companies.
Mining Investment and Governance Review (World Bank)
Through the collection and analysis of a unique and comprehensive dataset, the Mining Investment and Governance Review presents an objective assessment of the mining sector of several countries. By June 2016, MInGov will have completed and published assessments of nine countries using a consistent, measurable, comparable and actionable methodology. These country assessments will include seven in Africa, one in Latin America and one in Asia. A business and an institutional structure for the long-term development of MInGov, including funding options for the continuation in 2016 and beyond are expected to be in place at that time.
Madagascar reviews its investment policy (UNCTAD)
Policies to improve the business climate and rebuild investors’ confidence in Madagascar have been outlined in an Investment Policy Review drafted by UNCTAD and discussed at a national workshop on 10 September in the Malagasy capital Antananarivo. While emphasizing the importance of improving the legal and regulatory framework for investment, the report underlines the need to better articulate sector-specific policies to fully tap into this potential. The report also deals with means of overcoming the challenges in developing infrastructure and entrepreneurship.
Investment policy framework for sustainable development (UNCTAD)
The 2015 version of the United Nation's Conference on Trade and Development Investment Policy Framework for Sustainable Development intends to bring it up to date as regards new developments and lessons learnt since its first launch in 2012. Mobilizing investment and ensuring that it contributes to sustainable development is a priority for all countries. A new generation of investment policies is emerging, pursuing a broader and more intricate development policy agenda, while building or maintaining a generally favourable investment climate.
Mainstreaming trade into national development strategies: project update (UNCTAD)
New and responsible investments in agriculture (FAO)
A two-day national technical workshop to dialogue with key stakeholders on the principles guiding new investments into agriculture was held in Accra, from 29-30 September 2015. The workshop, the third after Tanzania and Mozambique last January and April respectively, sought to build on the outcomes of previous activities of the Pilot use of Principles Guiding New Investments in Agriculture. The Inter-Agency Working Group, made up of the FAO, IFAD, UNCTAD and the World Bank launched the programme last January to provide practical recommendations on how to operationalize principles in specific investment projects and opportunities for participatory and informed discussions on what responsible investment means in practice for different stakeholders. [Access the Mozambique, Tanzania workshop reports, presentations]
Regional African Trade Insurance: country membership programme (AfDB)
The main objective of the programme is to strengthen the capacity of the RMCs with the necessary financial resources for membership subscription in African Trade Insurance Agency to allow greater underwritten insurance cover for Africa’s private sector and socio economic development. The expected outcomes are i) Increased participation of the private sector in large scale projects through ATI facilitation; (ii) increased trade flows in Africa; and (iii) ATI attracts additional members. The project is expected to strengthen the capacity of the three countries Benin, Ethiopia and Cote d’Ivoire to join the ATI.
Statistical Capacity Building Program for Managing for Development Results: second annual work plan (AfDB)
The program is needed to address the current weaknesses in national statistical systems, which are critical for informing the development, implementation and evaluation of development policies and programs in RMCs. This is necessary for meeting the data needs of the Africa 2063 and the Post-2015 Development Agenda. The program is also needed to meet the statistical needs of Bank Group operations and to achieve development effectiveness. Improved and better statistics are critical for evidence-based decision-making and for promoting good governance and accountability in RMCs, and this project is the most appropriate solution to achieving this goal.
US, India trade battle at WTO to escalate (LiveMint)
The US has signalled its intention to escalate its ongoing trade battle with India at the World Trade Organization (WTO). Participating in a meeting of trade envoys in Geneva, the US representative indicated that Washington would press ahead with the differentiation move that would deny India trade concessions accorded to developing countries under the umbrella of special and differential treatment architecture of the WTO, the global organization dealing with the rules of trade between nations.
US proposes provision on tobacco in trade pact (New York Times)
The United States proposed this week to bar tobacco companies from using special trade tribunals to sue or threaten countries that passed antismoking laws, hoping to remove one roadblock to what would be the largest regional trade agreement in history. The tobacco provision remains tentative, but its inclusion in the 12-nation Trans-Pacific Partnership being negotiated here would be a major victory for public health advocates and could set a precedent for other trade pacts.
India signals intent on reviving EU FTA talks: German ambassador (LiveMint)
Buhari orders probe of CBN, NNPC, FIRS, NCC, Customs (Premium Times)
President Muhammadu Buhari has ordered a complete audit of all revenue generating agencies in the country as a clean up measure and to make them more efficient. Top on the list of the agencies are the Nigerian National Petroleum Corporation, the Central Bank of Nigeria, the Federal Inland Revenue Service, the Nigerian Communications Commission and the Nigerian Customs Service.
Muhammadu Buhari: 'At 55, Nigeria needs greater coherence and unity of purpose'
South Africa: new ITAC commissioners appointed (GCIS)
IMF releases 2015 Financial Access Survey Data
This week in the news
Catch up on tralac’s daily news selections for the past week:
The selection: Thursday, 1 October 2015
The selection: Wednesday, 30 September 2015
The selection: Tuesday, 29 September 2015
The selection: Monday, 28 September 2015
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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)
