The selection: Monday, 12 October

Africa’s trade relations: Old friends, good friends and new friends

This collection of studies, prepared as part of the ongoing collaboration between the Trade Law Centre and the National Agricultural Marketing Council, includes special focus on agricultural trade relationships and related issues such as climate change. Previous books have covered trade matters ranging from South Africa’s trade relationship with the Americas, Asia, as well as African countries. This book looks at all South Africa’s trading partners: new friends, old friends and good friends. [Various downloads available]

Deepening South Africa-India private sector relations (ISS)

The trade sector between India and South Africa needs to be broadened and diversified, and small and medium-sized enterprises can play a greater role to this end. It is important for the Indian and African governments to consider and consult with business on the underlying reasons for not investing in certain instances – despite facilitation measures such as reduced trade barriers. There need to be frank discussions in this area. India’s duty-free, quota-free system, for example, allows 90% of goods to be exported duty-free and quota-free yet not many African countries take advantage of this exemption. Why is this the case? [The authors: Amanda Lucey and Catherine Grant]

States get a seat at Africa table (The Telegraph)

The Narendra Modi government is inviting states to directly lobby with 54 African nations for business opportunities at a week-long conclave this month, the first time that New Delhi has involved state administrations in an international summit. New Delhi has not involved state administrations in an international summit before.

Regional investment policy framework on the cards (Southern Times)

A regional investment policy framework for southern Africa is expected to be finalized by the end of the year. The Trade, Industry, Finance and Investment Directorate at the SADC Secretariat said in its annual report that significant progress has been made to develop a regional investment policy framework. The regional programme on investment has the objective of strengthening the investment environment in southern Africa.

SACU making significant strides (Southern Times)

Speaking at the same event, Namibia’s Finance Minister, Calle Schlettwein said although the SACU countries are generally improving in the World Bank Logistics Performance Index , there is a need for this to be accelerated to improve SACU countries’ rankings by fully endorsing more of the standards and practices of the World Customs Organisation Revised Kyoto Convention (RKC 1999), which are embedded in the just adopted 2013 Bali Trade Facilitation Agreement package.

“For this to happen, in Namibia, we need to strengthen our collaboration with the private sector and our neighbours in the SACU region to develop initiatives that respond to business needs. In fact, we need to jointly as Customs-to-Customs, Customs and other Government Agencies and Customs and Business to robustly push this agenda, even if it calls for additional resources. One such initiative, developed and implemented in collaboration with the private sector and launched in July 2015, is the Namibia Trade Information Portal,” he said.

Now available: Joint outcomes statement by the Commissioners General Forum for Southern Africa (SARS)

EALA enacts EAC Electronic Transactions Bill (EAC)

The Electronic Transaction Bill, 2014 seeks to meet the need of exploiting electronic transactions in the modern day business transactions. The Bill further wants to promote technology neutrality in applying legislation to electronic communications and transactions and to develop a safe, secure and effective environment for the consumer, business and the Governments of the Partner States to conduct and use electronic transactions.

COMESA August inflation at 6,3% (The Herald)

The year on year inflation rate for the COMESA region stood at 6,3% for the month of August 2015 compared to 15,4% recorded during the same period last year. According to the latest Common Market for Eastern and Southern Africa Consumer Price Index, the month on month inflation rate for the region stood at 0,4% in August, down from 0,8% registered in July 2015. It was 1,4 percent in August 2014. [Uganda: High import costs push price index up by 10% (Daily Monitor)]

IGAD Strategy 2016-2020: validation workshop (IGAD)

This five-day workshop is the final touch to the process of the Formulation of the IGAD Regional strategy and Implementation Plan 2016-2010 that started 13 months ago with baseline studies at national level on IGAD priority sectors, according to IGAD Planning and Coordination Programme Manager, Mr. Ahmed Y. Habbane. After looking into in-country situations around thematic areas or priority sectors such as Agriculture, Natural Resources and Environment; Regional Cooperation and Integration; Peace and Security; Social Development; Gender Affairs, “we started with national-level reports by priority sector that we then compressed into a regional document by sector” he continued.

Featured tweet: @FrankMatsaert: Excited to be working with @jonashelth & @DutchMFA in Abuja this week: @TradeMarkEastA giving support to work on West Africa trade corridors

Non-tariff barriers frustrating South African agricultural exports (tralac)

Due to the distance (and associated increasing transportation costs) and increase in private standards in many traditional markets numerous South African agricultural exporters have expressed interest in increasing their footprint into African markets. However, the proliferation of NTBs are frustrating exporters; reducing their competitiveness and making it too costly to enter these markets and/or retain market share. In the majority of African markets standards regimes are characterized by an over-reliance on mandatory inspections and certifications, unique national standards and testing, overlapping responsibilities for regulation and the discriminatory application of technical regulations and standards for imports. NTBs which are most problematic for South African agricultural and food product exports to African markets include: [The author: Willemien Viljoen]

ZRA warns clearing agencies against disrupting the flow of traffic at borders (Lusaka Times)

The Zambia Revenue Authority will not hesitate to institute sanctions against erring clearing agencies found guilty of harassing and disrupting the flow of traffic at entry points. ZRA Commissioner General Berlin Msisika said the Authority was aware of complaints of alleged harassment of members of other clearing agents’ organisations who had no intent of participating in illegal demonstrations or strikes and were being victimised at Nakonde border. The clearing agents at Nakonde border post last week withdrew labour demanding the lift of the suspension slapped on their companies by the ZRA.

Zambia: Cabinet approves Bill to end casualisation in all industries - Shamenda (Lusaka Times)

Zim spends $18 billion on imports in 5yrs (The Chronicle)

Zimbabwe's import bill has risen to about $18bn over the last five years as the influx of cheap foreign-made products continues. The Confederation of Zimbabwe Industries says robust measures are needed to reverse the trend, which threatens the viability of local firms and widens the country’s trade deficit. Since dollarisation in 2009, Zimbabwe has been a net importer of finished clothing, food and automobile products mainly from South Africa, Botswana, Zambia and countries in the Far East. Liquidity constraints amid low domestic industrial capacity utilisation, has worsened the situation.

SA to keep US trade status (Bloomberg)

South Africa will probably retain duty-free access for exports to the US worth as much as $1.7 billion a year under the Africa Growth and Opportunity Act, Trade and Industry Minister, Rob Davies said in an interview, citing a letter he received from the US trade representative. “I am confident that we are on track to keep us in AGOA,” Davies said on Saturday. [ANC sticks to guns on private security (IOL)]

Nigeria’s pan-African aspirations bode well for local market (Business Day)

If GZ Industries succeeds in SA, it may be a catalyst for other Nigerian companies to put a toe in this market in the same way MTN’s success in Nigeria lured other South Africans to that market. It is early days, but hopefully this is a first small step towards changing the often negative SA-Nigeria narrative. [The author: Diana Games]

Dangote’s investments stimulating African economy, say Tanzanian, Nigerian presidents (ThisDay)

The latest inaugurated cement plant is part of the ongoing African expansion drive of the Pan-African conglomerate. Earlier, the company has opened its plants in Cameroon, Zambia and Ethiopia. The inauguration of the Senegal Plant and South Africa plants would follow suit according to the company’s president

Kenya to roll out special trade zones in first quarter of 2016 (Business Daily)

The government plans to roll out Special Economic Zones which will enjoy lower taxes to boost Kenya’s investment profile. Enterprises at the SEZs will enjoy several tax incentives under a tightly monitored set-up to avoid losses of government revenue. The preferential tax terms will include value added tax (VAT) exemption on all supplies of goods and services to enterprises, reduction in corporate tax to 10 per cent from 30 per cent for a period of 10 years of operation and 15 per cent for the next 10 years. The government plans to freeze new investments within its Export Processing Zones before the end of this year as it takes up the SEZs model.

Private investment in Angola has new regulations (MacauHub)

The new regulations for carrying out private investment in Angola stipulates the creation of a “fast lane” to speed up procedures and technical support units in each ministry, according to a presidential order.

Namibia urged to learn from Turkey to boost manufacturing (New Era)

One of the challenges faced by many SME manufacturers in Namibia is having access to intermediate inputs for production. As evident in the trade analysis, Namibia’s imports from Turkey include mostly intermediate inputs for some manufacturing sub-sectors such as the pasta industry, inputs for steel/wire manufacturing and industrial machinery. Therefore, it is beneficial for Namibia to leverage on this trade relationship in order to boost our manufacturing sector. [The author: Maria Lisa Immanuel, senior policy analyst at the Namibia Trade Forum]

Uganda: Dealing with fake agricultural inputs (The IGC)

Technology adoption in African agriculture is very low, holding back productivity and rural income. This study was motivated by common anecdotes about farmers’ bad experiences with fertiliser and seeds. Investing in these items should yield a manifold return, but few farmers incur the expense. Several agriculture sector donors were aware of the issue, but none had tested how widespread it is. The key finding was that the vast majority of fertiliser samples were substandard. Additionally, very few of the allegedly improved seeds showed much success in producing large crops. In short, the agricultural inputs sold at retail level in Uganda are often fake or have at least deteriorated to the point that they seem so.

WTO effect: India may halt export subsidies for raw sugar (The Hindu)

Buckling under pressure from countries such as Australia and Brazil at the WTO, India is considering discontinuing direct export subsidies for raw sugar which are banned under the multilateral trade rules. It may instead give incentives that are compatible with the regime.

At IMF/World Bank meeting, Emefiele canvasses regional integration (ThisDay)

Making a case for the appointment of Africans to top position in the IMF, Emefiele said: “We are concerned that the 2014 diversity targets were not met particularly, the recruitment and promotion of African nationals at senior and managerial positions in the Fund. While we welcome the new diversity benchmarks for 2020, we note that they are short of addressing the representation of the region. We urge the Fund management to expedite action including identifying key milestones to ensure effective implementation of these targets.” [Full text of statement]

Development Committee: communiqué (World Bank/IMF)

We stress the importance of strengthening data quality and coverage, and its availability for policy making and for monitoring and implementing the SDGs. We call on the WBG and the IMF to increase their support to developing countries in building national data capacity and investing in evidence. [Download]

UN, World Bank to launch refugee and reconstruction bonds (Reuters)

China-backed trade pact playing catch-up after U.S.-led TPP deal (Reuters)

Left outside the US-backed Trans-Pacific Partnership trade pact struck last week, China and India approach this week's talks for a huge Asia-wide equivalent with fresh urgency, lest competitor nations steal a march on export access. Beijing is a key driver of the Regional Comprehensive Economic Partnership (RCEP), a proposed 16-nation free-trade area that would be the world's biggest such bloc, encompassing 3.4 billion people.

Peter Drysdale: 'Can China make it to the top of the ladder?' (East Asia Forum)

Vivek Dehejia: 'Trade and national interest' (LiveMint)

---

SUBSCRIBE

To receive the link to tralac’s Daily News Selection via email, click here to subscribe.

---

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)