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tralac’s Daily News selection: 27 October 2015
The selection: Tuesday, 27 October
African think tanks asked to step up (ACBF)
Speaking at the opening of the 5th Consultative Forum of the ACBF Policy Institutes Committee held in Kigali from 21-23 October, Dr Munthali said the current global strategic transitioning from the Millennium Development Goals to the Sustainable Development Goals and the implementation by the African Union of its Agenda 2063 called for the Foundation and African think tanks to play the unique and very determinant function of providing public policy research, analysis and advice. The Foundation has conducted studies on the “Internal and external risks associated with the implementation of AU Agenda 2063” and the “Agenda 2063 Capacity Needs Assessment and its Capacity Development Plan”. “Both studies, which will be soon published, are critical in successful implementation of the continental agenda,” said Dr Munthali.
World losing up to R27trn in illicit economy (WEF)
Counterfeiting and piracy will cost the global economy about R24.17trn in 2015, which is nearly 10% of the global trade in merchandise. That is according to a new paper by the WEF Meta-Council on the Illicit Economy, released at the WEF Summit on the Global Agenda in Abu Dhabi on Monday. Eliminating the illicit trade in tobacco could generate annual revenues of up to R423.48bn for governments, according to the World Health Organisation. The cost of illicit trade to human life is even more striking, the paper shows.
World Trade Report 2015 (WTO)
From the conclusion: The TFA will help developing countries attract more foreign direct investment. Companies making foreign investment decisions typically take the efficiency of trade procedures into account. Implementation of the TFA could be interpreted by foreign investors as a signal of improvement in the overall investment climate, which would induce inward FDI flows even in those sectors in the domestic economy that are not highly dependent on trade. This report has found a positive and statistically significant link between trade facilitation and inward FDI flows using a dataset covering 141 countries over a 10-year period (2004-13).
Many LDCs are dependent on customs duties and other taxes collected at the border for their revenues, which can constitute up to 45% of LDCs’ government revenues. Inefficient trade procedures reduce the volume of goods passing through customs and result in foregone revenues, which, in the cases of a number of African countries, are equivalent to 5% of their GDP. Furthermore, there is evidence to show that the likelihood of engaging in fraudulent practices at the border is higher the longer the time needed to clear goods. By simplifying trade procedures and reducing the time to move goods across borders, the TFA will increase the volume of goods flowing through customs, reduce the scope for corruption and increase the amount of revenue collected.
WTO Committee on Technical Barriers to Trade: request for observer status by African Organization for Standardization, Inter-Government Authority on Development
Third India-Africa Forum Summit: statement by External Affairs Minister Sushma Swaraj (External Affairs)
Our cooperation is multi-faceted and growing. The India-Africa Forum Summits are making immense contribution in this regard. I believe there would be merit in putting in place a regular review mechanism that can evaluate the progress of implementation of the various cooperation initiatives between India and Africa at the bilateral, regional and pan-African levels. Our Senior Officials have met yesterday to finalise the two outcome documents – a draft Political Declaration and a draft Framework of Strategic Cooperation. I understand that the Outcome documents have been discussed in detail by the two sides and an understanding agreed upon. You may like to convey any comments that you may have on the two documents, so that we can forward the finalised texts to our leaders for adoption.
Out tomorrow, in Delhi: Africa-India Facts and Figures 2015
Foreign Affairs CS Amina Mohammed petitions India to review credit terms (The Standard), Exim Bank co-promotes project development firm in Africa (Economic Times), India, Africa can become engines of growth for world: Jaitley (WebIndia)
Investment Policy Monitor (UNCTAD)
UNCTAD's latest Investment Policy Monitor shows that, as in previous review periods, the vast majority of new investment policy measures aimed at creating more favourable investment conditions. In total, 41 measures were taken by 25 countries. Regarding international investment policies, the Monitor finds that eleven countries concluded seven new international investment agreements. These include four bilateral investment treaties and three "other IIAs". Negotiations were concluded for seven IIAs, including the mega-regional Trans-Pacific Partnership agreement, and negotiations are ongoing for numerous other investment treaties.
Brazil’s bilateral investment treaties: more than a new investment treaty model? (CCSI)
The way in which Brazil sees its overall FDI policy is, in fact, quite different from the usual narrative of the international investment regime, which describes BITs as a means to advance the rule of law and the respect of property rights in developing countries. The Brazilian agenda focuses instead on consolidating economic relations with its partners and establishing political mechanisms to promote FDI. A look at the Brazilian treaties confirms that, while FDI protection is a key part of these deals, they are more ambitious than the United States and European ones when it comes to promoting FDI and preventing disputes.
Sahel and West Africa Week 2015: 26-30 October (OECD)
Urbanisation is changing the dynamics of food security: In 1950, West Africa had 152 cities and major towns; today it has more than 12 times that number, or 1 947. These include Sub-Saharan Africa’s largest city, Lagos, with 10.6 million inhabitants. The spatial dynamics that accompany urbanisation such as the geographic distribution of towns, their size, their number and the distances between them, are increasingly shaping food and nutritional security outcomes. Rural areas that are closer and better connected to cities and towns are more diversified and have more productive local economies. Analysing the intensification of rural-urban linkages is crucial to informing policy on food security in West Africa.
NLC seeks relocation of OTUWA Secretariat to Nigeria (Nigerian Mirror)
Nigeria has called for the relocation of the Secretariat of the Organisation of Trade Unions of West Africa to Nigeria with a view to making the body more responsive to issues affecting industrial relations at the continental level. The NLC president, Comrade Ayuba Wabba, underscored the significance of the revival of OTUWA, insisting that it would not only lend credence to regional integration, but also ensure the unification of the various trade unions in the African continent.
Council conclusions on the EU Horn of Africa Regional Action Plan 2015-2020 (Europa)
The Council underlines that in line with the objectives set out in the Strategic Framework, and taking into account the new challenges in the region, the EU should give priority to the following five groups of actions in the period 2015-2020, namely: regional security and stability, migration and forced displacement, counter-radicalisation and violent extremism , youth and employment, and human rights, rule of law and democratic governance.
Financing for innovation: what can be done for African SMEs? (AfDB)
Financing innovative small and medium sized firms all around the globe is a challenge. In Africa, this challenge becomes increasingly pressing as demand by innovative SMEs is on the rise. Yet for African SMEs, financing challenges are compounded by several issues that have both supply and demand roots. On the demand side, many firms are unable to find adequate ways to promote their projects and obtain financing. On the supply side, beyond the generalised lack of breadth and depth of financial markets, financiers face many uncertainties and market failures that prevent them from engaging in financing. With this in mind, some ways forward can be recommended:
Angola: Government plans to reorganise the oil sector (MacauHub)
The President of the Republic of Angola on Friday set up a commission to study the readjustment of the organisation of the oil sector to develop an integrated and effective strategy to improve efficiency of the Angolan oil sector. Alongside the creation of the commission public company Sonangol will be restructured, as announced on 15 October by the government. Crude oil export revenues of Angolan oil company Sonangol fell 44% in September over the same month of 2014.
China’s new credit facilities increase total received by Angola to US$20bn (MacauHub)
Sovereign wealth funds in the new era of oil (IMF)
As a result of the oil price plunge, the major oil-exporting countries are facing budget deficits for the first time in years. The growth in the assets of their sovereign wealth funds, which were rising at a rapid rate until recently, is now slowing; some have started drawing on their buffers. In the short run, this phenomenon is not cause for alarm. Most oil exporters have enough buffers to withstand a temporary drop in oil prices. But what will happen if low oil prices persist, and how will policymakers react?
Antoinette Sayeh: 'Slower growth in Africa a policy challenge' (Business Day),
Africa's upshot: How the AfDB and the private sector can mobilize growth (Devex)
Zimbabwe: $1,2bn Dangote projects licensed (The Herald)
The Zimbabwe Investment Authority has issued the Dangote Group with licences for three projects worth $1,2bn paving way for Nigerian billionaire Mr Aliko Dangote to start implementing business deals agreed with Government earlier this year. The three projects are a cement manufacturing plant, a coal mining venture and an energy or power plant using coal off take production.
Tomorrow, in Harare: launch of the National Competitiveness Report (NewsDay)
The National Economic Consultative Forum will launch a National Competitiveness Report which is critical in enabling the country’s economic actors to achieve the robust economic goal of 7% growth in gross domestic product. Speaking at a media briefing in Harare yesterday, NECF executive secretary Norman Chakanetsa said the report would provide a baseline to understand Zimbabwe’s competitiveness, provide information for policymakers, the basis of attracting foreign direct investment and make a comparative analysis of other countries, among many other things.
Zambia: China Copper Mines closes down (The Post)
China Copper Mines Limited has been forced to put its operations on care and maintenance, “against its will” because of the government’s interference, a company statement announced yesterday. CCM director Yu Wang Ping stated yesterday that the mining company has further been forced to suspend US$50 million investment which would have created employment for over 1,000 citizens.
Dubai Chamber briefing focuses on investment potential of Mozambique (Dubai Chamber)
Hamad Buamim, President and CEO, Dubai Chamber of Commerce and Industry, called upon UAE businesses to benefit from the Chamber’s strategy of exploring investment opportunities in promising markets of Africa in general and Mozambique in particular which he said offers immense business potential to UAE investors. Buamim highlighted agriculture, infrastructure development, hydrocarbons, manufacturing, mining and tourism as promising areas of investment for joint cooperation between Dubai businesses and their Mozambique counterparts. The President and CEO of Dubai Chamber informed that Mozambique is an important trade partner for Dubai in Africa as a lot of synergies exist between the two sides. A 500% increase in trade between 2004 and 2014 is a proof of this as the non-oil trade between Dubai and Mozambique increased from close to AED 190 million in 2004 to AED 1.02 billion in 2014, he said.
Nakumatt takes over Shoprite Uganda shop in EAC expansion drive (Business Daily)
Regional retailer Nakumatt has taken over the branch building that previously hosted Shoprite Supermarkets in Uganda which closed in June citing poor location. Mr Ramamurthy, head of strategy and operations, said the expansion was based on the need to increase Nakumatt’s branch network that now stands at 55 to about 60 by end of the year.
Did you know Africa’s top business brands? (Daily Monitor)
Lafarge Africa records N29bn profit after tax in nine months (ThisDay)
Namibia: Geingob lays down plans for food banks (New Era)
Mozambique: Condor Nuts is certified to export cashew nuts to the United States, Europe and Africa (Club of Mozambique)
East Africa: Regional revenue bodies tipped on single customs territory (New Times)
China communist party paper says country should join US-led trade pact (Reuters)
Ethiopian Airlines targets Asia with new Chinese crew (The Standard)
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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)
