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tralac’s Daily News selection: 23 November 2015
The selection: Monday, 23 November
Starting today, in Durban: Conflict-induced migration in Africa - high-level expert group meeting (OSAA)
The main objective of the meeting is to provide a platform for key African regional and subregional organizations and their international partners as well as civil society organizations to: (i) assess the current trends and challenges of conflict-induced migration, and (ii) discuss new opportunities to prevent and address its root causes, as well as mitigate its negative impacts within the context of implementation of the global 2030 Agenda for Sustainable Development, Africa’s Agenda 2063 and its First 10-Year Implementation Plan. [Concept note, Programme]
SADC summit cancelled – source (StarAfrica)
An extra-ordinary meeting of the Southern African Development Community Organ on Politics, Defence and Security Cooperation has been cancelled. The summit scheduled for Maputo, Mozambique was cancelled due to a High Court case lodged last month by Special Forces Commander Lieutenant Colonel Tefo Hashatsi, APA learnt on Sunday.
Today, in Vienna: 2015 Africa Industrialization Day seminar (UNIDO)
Today, in Luanda: Angola to host Inter-Africa Coffee Organisation meeting
Angola will host the 55th general assembly of the Inter-Africa Coffee Organisation from November 23-27, to analyse all coffee policies on the continent related to production, processing, trade and modernisation. Ethiopia, Uganda and Côte d'Ivoire are currently the main coffee growing countries on the continent. With its current 25 members the Inter-Africa Coffee Organisation was established on 7 December 1960 in Antananarivo, to draft policies and defend the production of coffee in the socio-economic development of the continent.
2015 Ibrahim Forum Facts and Figures: African Urban Dynamics (Mo Ibrahim Foundation)
The main objective of the meeting is to provide a platform for key African regional and subregional organizations and their international partners as well as civil society organizations to: (i) assess the current trends and challenges of conflict-induced migration, and (ii) discuss new opportunities to prevent and address its root causes, as well as mitigate its negative impacts within the context of implementation of the global 2030 Agenda for Sustainable Development, Africa’s Agenda 2063 and its First 10-Year Implementation Plan. [Concept note, Programme]
Kenya can’t afford to ignore new US foreign tax law (Business Daily)
Yet the mother of all US legislation that is sending shockwaves through the global financial services sector is FATCA (the Foreign Account Tax Compliance Act). This law mainly aims to curb tax evasion by US citizens holding financial assets abroad. The law requires non-US financial institutions (foreign financial institutions or FFIs) and other vehicles to report certain relevant US persons’ information to the US tax authority — the Internal Revenue Service. Kenya’s financial institutions and especially banks are exposed. This is because diaspora remittances from Kenyans in North America account for more than 45% of all remittances. These funds are mostly transmitted through banks. So it is fair to assume that most, if not all, banks in Kenya have US persons account holders.
An SME landscape study: the conduciveness of starting and conducting business in Africa
This secondary study incorporates the assimilation of key indicators from a number of credible studies across twelve African countries to determine a measure for the conduciveness of starting and operating a business as a Small and Medium Enterprise in the country in question. The twelve African countries covered are Botswana, Ethiopia, Ghana, Kenya, Mauritius, Namibia, Nigeria, Rwanda, South Africa, Uganda, Zambia and Zimbabwe.
South Africa: Parliament recommends regulation of small-scale businesses (GCIS)
The Portfolio Committee on Small Business Development has recommended for the regulation of small-scale businesses in townships, tuck shops, spaza shops, street vendors and general dealers. “We feel strongly that the regulation will address issues of unfair business practice in this sector and ensure that owners also contribute to the tax revenue,” said Committee Chairperson Ms Ruth Bhengu. Ms Bhengu said it became clear during the visit that these businesses had initially operated in the township and village economy without any competition or assistance from government, but the entrance of foreign nationals in the space created unfair competition.
The private sector in Africa contributes to a projected 80% of the continent’s gross domestic product and supports an estimated 90% of all jobs. SMEs have a pivotal role to play in the industrial development of Africa. Nevertheless, the UN chief noted that the opportunities for youth and women generated by SMEs are limited, thus failing to harness the full entrepreneurial potential of the continent. “This means less capacity for transformative socio-economic development, innovation and value addition,” he said.
Thoughts on Africa Industrialization Day: ‘Industrial-strength’ poverty reduction? (World Bank Blogs)
This situation poses a challenge for African development. If those firms with the highest poverty-reduction potential also face the highest labor costs, it will limit growth in those sectors that offer the prospect of shared prosperity. Why might this be? My team and I will be examining this question in the context of an upcoming study in Côte d’Ivoire’s cashew processing industry. [The author: Aletheia Amalia Donald]
Tanzania: Govt moving to regulate labour migration (IPPMedia)
The International Organisation for Migration in Tanzania and the Ministry of Labour and Employment has launched an initiative to support strategic interventions towards effective and sustainable labour migration management and information sharing in Tanzania. Speaking during the launch over the weekend in Dar es Salaam, Director of Employment in the Ministry of Labour and Employment, Ally Ahmed said in order to build this institutional capacity within the government of Tanzania, a comprehensive roadmap for Labour Market Information System and Labour Migration Policy and electronic work permits system will be developed. Ahmed said that collection of information regarding Tanzanians who are working abroad is among the challenges facing the National Labour Market System.
Zimbabwe: RBZ backs rand rejection (The Herald)
The Reserve Bank of Zimbabwe governor Dr John Mangudya has backed businesses rejecting South African rand coins saying doing so is acceptable in managing risks associated with weakening currencies. In an exclusive interview he admitted that the fall of the rand, now trading at $1 to R14,3, has become a problem for businesses, mainly those involved in trade with South Africa. “We’re in a multiple-currency system, which provides choice to consumers on what currency to use. If businesses feel there are losses attributed to a particular currency, you can’t force them to use it,” said Mangudya.
Zambia: IMF concludes visit (IMF)
At the end of the mission, Mr Tsikata issued the following statement: “The Zambian economy is under stress. Low copper prices and a severe electricity shortage are straining economic activity. The Zambian kwacha has lost half of its value since the beginning of the year, causing difficulties for many segments of the economy and population, and putting upward pressure on inflation. Moreover, domestic and external financing conditions have tightened markedly, with increased interest rates on Zambian government debt.
SA to grow presence in Central Africa (Business Report)
Minister of Trade and Industry Rob Davies said the visit was aimed at “increasing and strengthening South Africa’s trade and investment relation with Gabon and Cameroon”. South Africa has a signed Bilateral Trade Agreement with Cameroon, and an Agreement for the Reciprocal Promotion and Protection of Investment with Gabon, said Davies. Furthermore, he added that Cameroon and Gabon, which are located within the Economic Community of Central African States, would open investment and trade opportunities for South African businesses within this bloc.
Abuja to South Africa route will serve as catalyst of bilateral trade (Leadership Newspapers)
South Africa: ITAC to decide on steel tariffs (Business Report)
The International Trade Administration Commission is meeting its deadlines for investigations and determinations on a whole spectrum of tariff interventions applied for by the steel industry, and will have considered all applications by the end of this month. The commission is set to make recommendations for tariff reviews on 77 steel product codes as requested by the South African Iron and Steel Institute, ArcelorMittal South Africa and Evraz Highveld Steel and Vanadium, which have applied for the maximum 10 percent allowed for tariff protection from cheap imports.
Ghana: AGI commends gov’t for ban on importation of cables (GhanaWeb)
Can Ethiopia's railway bring peace to Somalia? (BBC)
Mr Getachew shows me diagrams of a vast planned railway network, snaking its way across landlocked Ethiopia, linking Africa's second most populous country to Djibouti, Sudan, South Sudan and Kenya. The railway is his baby. Like many Ethiopians, he left the country during the harsh years of dictatorship, but returned with a doctorate in engineering and a vision.
Putting innovation in African logistics at the centre of regional economic growth (Ventures Africa)
Currently, regional logistics infrastructure paints a disparate picture. Central African markets are particularly difficult and expensive for companies to penetrate, in comparison to East Africa, which has benefitted from the East African Community intra-regional trade links and diverse domestic markets. West Africa (reliant on extractives) is lagging behind. Naturally the most important element is transport, particularly rail and ports, which is crucial for intra-regional and global trade. In these two areas, East Africa is arguably leading the way. [The author, Jean-Claude Bastos de Morais, founded the African Innovation Foundation]
‘Transport costs in East Africa 60% higher than in US and Europe’ (How we made it in Africa)
But there is a difference between informal and illicit trade. Illicit trading involves fake goods and smuggling of things like diamonds, extractives [and] timber. We know, for instance, that there is a lot of timber being moved from the DRC to the other countries. The volumes are difficult to tell. Illegal goods don’t often go through the mainline border points. In some industries, counterfeits are a big issue, such as in pharmaceuticals. The balance [between improving cross-border trade and curbing illegal trading] is in making sure that standards are agreed between all countries. At the moment some of the national standards disagree with each other, which makes it harder to combat counterfeiting issues. [An interview with TMEA's chief executive Frank Matsaert]
Feed the Future Food Across Borders Program: factsheet (ReliefWeb)
Nigeria: Shippers’ Council faults opposition against tracking note (Vanguard)
West Africa: ERERA rolls out cross-border electricity market (StarrFM)
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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)
