News
tralac’s Daily News selection: 24 November 2015
The selection: Tuesday, 24 November
A selection of African and international trade and development conferences:
In Gaborone: the Connecting Resources and Society in Botswana conference
Highlighted conference document: Turning finite resources into enduring opportunity (De Beers, Genesis Analytics, PwC UK)
This analysis – the first of its kind – examines the value generated by the Partnership in 2014, and demonstrates the shared long-term vision of the respective partners. It demonstrates a shared understanding that as much value as possible should be generated from the activities of the Partnership in Botswana, for Batswana. On Partnership revenues of almost US$7bn in 2014, the Partnership directly generated US$4bn of value to the economy, which was the equivalent of 25% of GDP for the year. Put into context, the Partnership contributed nearly double that of the entire wholesale and retail trade sector combined in Botswana to the country’s GDP. When the direct contributions of the Partnership to the economy are combined with the contribution through the supply chain and employee spending, the total economic contribution grows to US$4.4bn, or 27% of Botswana’s GDP in 2014. [Download]
Conference commentaries: Alex Vines ‘Botswana explores a future without sparklers’ (Business Day), Philippe Mellier ‘Mining for social value in Botswana’ (The Guardian)
In Khartoum: 17th Africa Oil, Gas and Mines Trade and Finance Conference and Exhibition (UNCTAD)
In Geneva: Tenth International Debt Management Conference (UNCTAD)
Highlighted presentations: Debt management in Africa (Adam Elhiraika, UNECA), Financing options for development (Raphael Otieno, MEFMI)
UNIDO's forthcoming Least Developed Countries’ (LDC) Ministerial Conference: the 5 background papers
In Brussels: the ACP Council of Ministers
“This Council session takes place at a very critical time, in the midst of major global summits on trade, climate change, and other essential aspects related to development. Moreover, the ACP Group of countries is at a juncture where we must ask fundamental, existential questions about how the organisation can contribute in an effective way that impacts on our peoples’ lives, in light of all the global challenges we face today,” said ACP Secretary General H.E Dr. Patrick I. Gomes. “It is essential to engage strategically during this period.” Aside from approving the 2016 budget for the ACP Secretariat, major decisions expected out of the meeting include those on the 8th Summit of ACP Heads of State and Government, outlooks on the United Nations Climate Change Conference COP21, the WTO Ministerial conference in Nairobi, amongst others. Ministers will also hold deliberations on the ACP Small Islands Developing States Forum, and the future of ACP-EU relations.
Trade in services in Africa: a set of papers from tralac
The set of papers contains a large amount of visualised data on trade in services in Africa. There are seven sectoral papers (three still forthcoming) and one framework paper, which contextualises, defines and presents top level data. The intention of these papers is to especially assist non-quantitative researchers in understanding the pattern of services trade within Africa and between Africa and the rest of the world. However, the papers will be of use to anyone interested in quickly understanding services trade patterns in Africa. For an overview of services trade in Africa and to understand data definitions, limitations and sources, please refer to the Framework Report. In order to drill down into a particular sector to understand the sectoral trade patterns in more depth and to access inter and intra-REC trade patterns, please refer to the relevant sectoral report
Ethiopia’s Great Run: the growth acceleration and how to pace it (World Bank)
Ethiopia has witnessed rapid economic growth, with real GDP growth averaging 10.9% between 2004 and 2014, which is lifting the country from being the second poorest in the world in 2000 to becoming a middle income country by 2025, if it continues its current growth trajectory. Fueled by substantial public infrastructure investment and a conducive external environment, the country’s growth has been stable, rapid and it has managed to decrease poverty substantially from 44% in 2000 to 30% in 2011, according to the national poverty line, according to a new World Bank report, Ethiopia’s Great Run: The Growth Acceleration and How to Pace It. The report’s key findings include:
Services and agriculture have largely contributed to the growth. Initially, agriculture was the main contributor to growth but aided by a construction boom the services sector has taken over. Services contributed 5.4% to the GDP growth rate, followed by agriculture at 3.6%.
Ethiopia witnessed accelerated growth as service sector began to rise. The shift of workers from agriculture to service and construction contributed to a quarter of Ethiopia’s per capita growth from 2005 to 2013. It was also complemented by a marked increase in the share of working-age population, the so-called demographic dividend, which can be attributed to up to 13% of per capita growth from 2005 to 2013.
AfDB Annual Report 2015 for North Africa: taking the pulse of the region
Botswana taps into Lesotho project (IOL)
Arid Botswana has finalised a deal with South Africa and Lesotho to tap some of the water from the Lesotho Highlands Water Project. Botswana’s Minister of Mineral, Energy and Water Resources Minister, Onkodame Kitso Mokaila confirmed this at a conference in Gaborone on the diamond industry. Mokaila stressed that the agreement was a “done deal” and it was now just a matter of drawing up a plan and a design to implement the agreement. A pre-feasibility study was now being conducted. He said that all three countries were part of the Orange River system “and so we all decided to work together”.
Mozambique: Can investments by the extractive sector be used to increase financial inclusion? (SPEED)
A recent report by OzMozis for FSDMoç (Financial Sector Deepening – Mozambique) discusses opportunities to improve financial inclusion in Mozambique building on investments and economic activities associated with the extractives sector. The report notes that even though resource development generally takes a long time, in Mozambique many people expect and hope that the country’s resource endowment will quickly contribute to greater employment and increased financial inclusion. The report therefore considers ways that the extractives boom could be used to increase financial inclusion.
Kenya: Sugar price falls to five-year low on inflow of imports (Business Daily)
New data by the Agriculture, Fisheries and Food Authority shows that a kilo of sugar retailed at an annual average of Sh104 in the period to October, reflecting a general cooling of prices as the market responds to the effects of a steady inflow of imports that have helped meet local demand. As at October the country had imported a total of 196,713 tonnes of sugar, surpassing the 192,121 tonnes imported over the entire 2014.
Maximising benefits from water for tourism in Africa (AfDB)
Using widely varying African case studies and the latest tourism research, the study illustrates the opportunity for economic growth and job creation in this complex natural resource area. Shared water resources are highlighted, as well as Regional Member Countries’ challenges and opportunities. The potential for green growth and inclusive development through improved management of water resources in Africa’s growing tourism industry is illustrated in this report.
South Africa: Parliamentary report on xenophobic violence talks a lot, says very little (Daily Maverick)
Parliament's ad hoc joint committee on probing violence against foreign nationals has finally submitted its report. There is little new in its findings, and if past reports on the issue are an indication, few of the broad recommendations will be implemented. But policy changes resulting from the attacks on foreigners this year are likely already decided: Implement harsher controls of those coming into SA while attempting to build township economies. [Download]
EALA reconvenes: session overview (EAC)
Other notable business for consideration during the two week period will comprise: debate and possible adoption of reports of various committees of the EALA. One such key report is that of the Committee on Trade and Investment On-spot assessment of One Stop Border Posts in the EAC which shall give us a score-card on the processes in place with regards to the implementation and its linkage to trade facilitation and the effect on the EAC business environment. You will recall that EALA passed the OSBP Bill, 2012 to facilitate, simplify and expedite border controls. [Committee reports]
EALA calls for speedy end to Burundi crisis (New Times)
EALA to decide on Burundi’s move to oust four lawmakers (New Times)
WTO sub-committee on cotton: background paper by the Secretariat
As requested by the Bali Ministerial Decision, and following up on the three dedicated discussions held so far, the WTO Secretariat has prepared a revised compilation of factual information and data available from Members’ notifications and other submissions, on Market Access, Domestic Support and Export Competition in relation to cotton, received up to 5 November 2015. The paper is organized in three parts, namely: export subsidies, domestic support, market access.
Divergence remains as WTO members look at new agriculture proposals (WTO)
D Ravi Kanth: 'A trade initiative on its last legs' (LiveMint)
The nature of China's involvement in Sub-Saharan Africa (World Bank's Weekly Insight)
However, over the medium to long term, Chinese engagement is expected to grow, reflecting greater opportunities in SSA, as well as strategic Chinese interests in the region. To fully benefit from this, countries in SSA need to strengthen domestic institutions, increase transparency (especially in mining), improve business environments, and promote the development of human capital. Closer economic cooperation among African countries, for instance harmonizing laws and facilitating cross-border business and collaboration, could allow SSA to leverage the benefits of commerce with China and other major emerging market economies. This would also help lower the costs of bureaucracy and improve competitiveness. Improvements in regional infrastructure would encourage domestic and foreign investment.
Zimbabwe: Team finalises Sino-Zim deals...as President XI Jinping’s visit nears (The Herald)
Ahead of this week’s Spending Review, the government has published its new aid strategy, re-affirming its commitment to spend 0.7% of national income on official development assistance (ODA), and setting out how development spending will meet Britain’s moral obligation to the world’s poorest and also support its national interest. [Downloads available]
SACU leaders calls for economic diversification (Southern Times)
Vietnam-Africa trade turnover increases fivefold in seven years
Kenya’s foreign currency reserves decline to Sh688bn (Daily Nation)
Zambia’s currency, seen as world’s worst performing, rallies the most in 7 years (M&G Africa)
WB surveys confirm concerns over reduced access to banking services
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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)
