News
tralac’s Daily News selection: 9 October 2015
The selection: Friday, 9 October
SARS convenes regional forum on illicit financial flows (SAnews)
"Today's session is to formalise the establishment of the forum of Commissioners General in the region in which we take the agenda of development of our economies especially in revenue collection, strengthen our customs activities, stop illicit trade coming in and deal with drug trafficking, money laundering and all those nefarious activities but equally put a task team that is going to formalise the establishment of a forum of Commissioners General in the region," Commissioner Moyane told SAnews on Thursday. This as SARS convened a second forum of commissioners from 11 countries including Angola, Swaziland, Lesotho, Zambia and South Africa to unpack core tax and customs issues especially linked to illicit financial flows.
Botswana: BURS seeks to widen tax base (Mmegi)
According to Morris, a shortfall in SACU receipts is attributed to the appreciation of the Botswana Pula against the South African Rand. BURS annual revenue collections grew from P11.8 billion to P37.5 billion in 2014-2015 period representing an annual average increase of about P25.7 billion in nine years, which translates to 28.6 percent. During the period of April 1, 2015, BURS collected tax revenues amounting to P15 billion against a target of P15.3 billion.
Namibia: Pension billions repatriated (The Namibian)
The state pension fund has been instructed to recall part of its N$90 billion investments abroad to re-invest locally as government looks to boost its depleted cash reserves. Finance minister Calle Schlettwein confirmed that government had directed GIPF to recall between N$5 billion and N$10 billion invested in South Africa. He said the money is supposed to improve the country's reserves and that it has nothing to do with the government's cash flow problems.
Wealth funds from Oslo to Riyadh raid coffers to offset oil (Bloomberg)
The halving of oil to less than $50 a barrel has the potential to alter one of the most powerful economic and political forces of the past half century: the rise of the petrostate. These countries led a surge in state investments in the U.S. and Europe that now totals about $7.3 trillion globally, according to the Sovereign Wealth Fund Institute.
Angola: Government grants concession of eucalyptus forests to Angola Sovereign Fund (MacauHub)
The move is based on the “high economic potential of the eucalyptus plantations” located in those three provinces, which are still the responsibility of the Ministries of Agriculture, Transport and Industry. An audit by Deloitte showed that on 31 December 2014, 37% of the fund’s investment portfolio was applied in Europe, investments in Africa had a weight of 34%, North America 18%, and the remaining 11% was applied elsewhere
An Africa Mining Vision Compact with private sector leaders (ECOMOF)
To ensure successful implementation of the AMV, an explicit agreement between AU member States and private sector leaders in the extractive industries is necessary. This agreement which we are proposing, is to be in the form of an AMV Compact between AU member States and private sector leaders in Africa, fashioned along the same lines of the UN Global Compact. The AMV Compact would draw a set of standards that would serve as a benchmark for companies and governments to assess performance, resulting in robust policies that cover a range of principles. For the dialogue with private sector leaders to be continuous and meaningful, it is crucial to establish an Africa-wide network of Chambers of Mines and Mining Associations. [The author: Mrs Fatima Haram ACYL, Commissioner for Trade & Industry] [ECOMOF 2015 www]
West Africa Gateway: latest newsletter
Sound laws on oil and gas deals crucial for Kenya to gain from natural resources (Business Daily)
AU Department of Trade and Industry: stakeholders strategic retreat
The semi-annual 3rd Stakeholders Strategic Retreat, organized under the theme of “Financing for Industrial Development: a new era" was held at the Hilton Hotel in Nairobi, Kenya. The meeting was aimed at redefining the strategic pathway towards a better cooperation with Member States, RECs, partners and stakeholders. Participants at the meeting discussed regional experiences including challenges with the resources mobilization for the implementation of the Plan of Action of the Accelerated Industrial Development for Africa (AIDA).
Tripartite Agreement could boost intra-regional trade by one third (UNECA), The African Ministerial Conference on Technical and Vocational Skills Development: update (New Times)
Manufacturers Association of Nigeria: speech by Thabo Mbeki (TBF)
Then there is the important matter of the access of African manufactures to the international markets. In this regard the only issue I would like to raise is the matter of the Economic Partnership Agreements with the EU, a matter which is of great concern throughout Africa. As I understand it, all our regions which were involved in the negotiations with the EU on the EPAs have now signed these Agreements. Nevertheless the question remains – have the African concerns relating to the impact of these EPAs on our industrialisation processes been addressed? My own response to that question is – no!
WTO and LDCs: 20 years of supporting the integration of LDCs into the multilateral trading system (WTO)
This Secretariat Note has been written as part of WTO’s 20th Anniversary Event dedicated to LDCs titled “Twenty Years of Supporting the Integration of Least Developed Countries into the Multilateral Trading System” scheduled for 12 October 2015. This study traces the 20-year relationship between the WTO and LDCs, in particular the key developments and decisions taken in favour of LDCs, the institutional support provided and the trade capacity-building initiatives put in place.
Zimbabwe: Second Review Under the Staff-Monitor Program-Press Release and Staff Report (IMF)
The program is on track. Four of the five quantitative targets for end-June 2015, and all the structural benchmarks for the second review were met. Although a recently contracted $200 million non-concessional loan breached the quantitative target on non-concessional borrowing, it avoided the accumulation of additional external arrears. [Creditors approve Zim debt clearance plan (NewsDay)]
Parliament backs Rwanda's readmission to ECCAS (New Times)
Parliament has adopted a draft law authorising the ratification of the agreement between the Economic Community of Central African States and Rwanda on the readmission of the latter in the regional grouping after a nine-year absence. A founding member of ECCAS in 1983, Rwanda pulled out of the bloc in 2008 to concentrate on its membership to the EAC and Comesa, she added. “We should not be asking ourselves if we are in East Africa or Central Africa; we are in Africa. Classification depends on who classifies. Regional integration and cooperation should be an avenue leading us into the United States of Africa and that’s what Rwanda believes in,” Louise Mushikiwabo, the minister for foreign affairs, said.
Opening Kenya’s trade and development frontiers (World Bank)
The governments of Kenya and South Sudan and other stakeholders recently inaugurated a new project that will upgrade a critical trade route connecting the two countries. Through the East Africa Transport, Trade and Development Facilitation Project, a 309km trek of land will be rehabilitated, creating a safe route for goods and people along Lokichar – Nadapal/Nakodok part of Eldoret-Nadapal/Nakodok road in the north-west region of Kenya. The $500 million World Bank Group credit will also support other activities designed to improve the livelihoods for those living in the region, and increasing regional competitiveness.
Africa’s largest infrastructure projects to be discussed at Beijing's APIF (African Review)
Tanzania: 'Foreigners to own property' (The Citizen)
A review of laws on fixed assets ownership in the country could soon see foreigners enabled to buy apartments in structures constructed by the National Housing Corporation, President Jakaya Kikwete revealed on Wednesday. He said the government was considering reviewing the existing laws, particularly those that bar foreigners from making such purchases. [NHC housing project to turn Dar into Dubai, Manhattan of Africa]
Time tactics on the Grand Ethiopian Renaissance Dam (Ahram Weekly)
“Ethiopia is repeatedly relying on time tactics. They seem to work perfectly for it,” said Maasoum Marzouk, former assistant foreign minister, describing the current status of the tripartite negotiations on the Grand Ethiopian Renaissance Dam (GERD). On Sunday, Sudan and Ethiopia requested that Egypt postpone the 9th round of this week’s tripartite meeting, scheduled for 4-5 October, to later in the month.
The financial system we need (UNEP)
A new UNEP report released at the International Monetary Fund/World Bank Annual Meetings shows how to harness the assets of the world's financial system for sustainability - the key findings include: momentum is building and is largely driven by developing and emerging nations including Bangladesh, Brazil, China, Kenya, and Peru, with developed country champions including France and the UK.
G24: communique on international monetary affairs and development (IMF)
We note the 2015 Shareholding Review of the World Bank, including the proposed roadmap. We call for a timely agreement on a dynamic formula for future shareholding realignment and stress that any such formula must meaningfully increase the voting power of developing countries and move towards equitable voting power, while protecting the voting power of the smallest poor countries. Through the shareholding review, we also call for the strengthening of the WBG’s responsiveness to the developing countries and the increase of the developing countries’ voice and representation in the Bank’s Executive Board.
V20: communique on climate change (World Bank)
Led by the Philippines, the V20 group say they represent a significant number of nations most vulnerable to climate change – low and middle income, least developed, arid, isthmus, landlocked, mountainous and small island developing countries from Africa, Asia, the Caribbean, Latin America and the Pacific.
Namibia needs US$33 billion to tackle climate change (New Era)
On Tuesday Cabinet approved Namibia’s plan – called the Intended National Determined Contribution – which would be put before the United Nations Framework Convention on Climate Change as part of preparations for the December conference. Namibia’s INDC submission reiterates the need for the Green Climate Fund saying it “is of vital importance that the Green Climate Fund be capitalised rapidly in order to provide the much needed funds to developing countries to enable them to meet their intended targeted contribution.”
Botswana Renewable Energy Agency: consultancy services
Arab countries in transition: economic outlook and key challenges (IMF), Egypt: Behind the pack (Ahram)
Mantashe: We won’t be dictated to by US (IOL)
The ANC has given its clearest indication yet that the battle with the US over the highly contested Private Security Industry Regulation Amendment Bill could push the country away from traditional international financial institutions to the Brics bank. ANC leaders yesterday made it clear that the US demand that the government amend certain aspects of the bill were unreasonable and that there was likely not to be any compromise on the matter. [More harm than good in new laws (editorial comment, Business Day)]
A grouping well linked to Asia (IOL)
The Pacific Alliance is probably the most important alliance that South Africans may not have heard of. The new economic bloc of Latin American countries comprising Mexico, Peru, Chile and Colombia has exceeded expectations in its four years of existence and, when taken together, is now considered the eighth-largest economy in the world and the seventh-largest exporter.
BRICS in danger of collapsing as members fail to cohere (Business Day)
Ugandan company partners with Starbucks to market Uganda coffee (Daily Monitor)
Food prices are staying lower for longer periods (FAO)
Botswana woos South Korea, Angola investors (StarAfrica)
Mozambican leader chairs crisis meeting on Lesotho (StarAfrica)
Namibia joins call to put tourism at top of AU agenda (New Era)
This week in the news
Catch up on tralac’s daily news selections for the past week:
The selection: Thursday, 8 October 2015
The selection: Wednesday, 7 October 2015
The selection: Tuesday, 6 October 2015
The selection: Monday, 5 October 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)
