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tralac’s Daily News selection
The selection: Friday, 8 January 2016
SACU: minutes of the Fourth Trade Policy Review (WTO)
The fourth joint Trade Policy Review of the Southern African Customs Union countries (Botswana, Lesotho, Namibia, South Africa, Swaziland) was held on 4 and 6 November 2015. During the period under review, SACU members had made efforts to facilitate trade by further streamlining customs procedures and documentation. Nevertheless, their common external tariff (CET) remained complex, comprising ad valorem, specific, mixed, formula (variable) duties, and their combination, while their individual tariff binding commitments were at ad valorem rates. The simple average applied rate of the CET was 8.3% in 2015, slightly up from 8.1% in 2009. Tariff rates continued to display high dispersion. [Two downloads are available]
AGOA: Ambassador Michael Froman on new market access for US poultry, beef, and pork exports (USTR)
“While we celebrate the progress we have made in resolving the outstanding technical issues, the true test of our success will be based on the ability of South African consumers to buy American product in local stores. We will be working to ensure that this final benchmark of entry of poultry is achieved so that South Africa continues to have the advantage of full AGOA benefits, including by working with the U.S. and South African industries to expedite the shipment of eligible product as soon as possible. Our goal is to complete this effort so that South Africa can maintain the full and continued enjoyment of AGOA’s benefits.”
US Agriculture Secretary Tom Vilsack: statement on expanded market access (USDA)
Only a limited number of US poultry and meat products have been exported to South Africa in recent years, due to unwarranted sanitary requirements by the South African authorities, with most poultry exports blocked for the last 15 years. With this renewed access for U.S. red meat and poultry products, U.S. exports to South Africa could generate $75m of shipments annually. Agriculture Secretary Tom Vilsack today made the following statement regarding this announcement:
Related: Davies: Deal cracked to keep SA in AGOA (Fin24), US Senators cheer SA chicken deal (News24)
China’s international development finance: past, present, and future (UNU-WIDER)
China is emerging as perhaps the most globally significant development finance provider, going far beyond concessional foreign aid. With China’s initiatives to create and foster new multi-lateral finance institutions, and to work in terms of large economic landscapes in Africa, Eurasia, and Latin America, it becomes important to understand how China’s own experience with rapid industrialization/urbanization processes and regional development is influencing its visions and financial instruments for development across the world. This paper examines how China’s domestic development experiences have informed its approach to development finance abroad and explores what kinds of challenges and opportunities China will bring as it moves to the centre stage of international development finance. [The authors: Jiajun Xu, Richard Carey] [Download]
China-Africa industrial capacity cooperation fund starts operation (Global Post)
China-Africa industrial capacity cooperation fund, designed to aid Africa's development, is now active, China's central bank said Thursday. The fund, with an initial capital of 10 billion U.S. dollars, will mainly invest in sectors like manufacturing, hi-tech, agriculture, energy, infrastructure construction and finance in African countries, the People's Bank of China said in a statement on its website. The statement said investors both at home and abroad are welcomed to join the fund. However, it did not provide details such as how the fund will be managed and whether there are potential investment programs. [The Asian Infrastructure Investment Bank gets off the ground (Nikkei Asian Review)]
As yuan slides, India’s trade gap with China may bloat further (Livemint)
China's currency stance tests world policymakers' sense of perspective (Reuters/Ahram)
Selected updates on India-Africa trade and investment issues:
India woos African countries for hydrocarbon collaboration (Livemint)
India has invited ministers and chiefs of state-owned oil and gas companies from Africa in January to explore new opportunities in hydrocarbon exploration and production, export of oilfield services and construction of fertilizer plants. The focus countries include Sudan, Mozambique, Tanzania, Libya, Ghana, Egypt and Algeria.
India-Africa Hydrocarbons Conference 2016 (21-22 January): conference www
Related: Equatorial Guinea to host hydrocarbons and industry Forum in India, India coal imports down 34% in December (Climate Change News), India’s Bharat Petroleum to open gas stations in Africa, Asia
Organization for the Harmonization of Business Law in Africa (World Bank)
The momentum to continue to bring about improvement to the investment climate is expected to be maintained in 2016 with the Uniform Act on accounting standards being finalized and subsequently submitted to the Council of Ministers for review. Likewise, the Uniform Act of Arbitration, Mediation and Conciliation is being prepared with the aim for finalization in the second half of 2016.
Manifesto for 2016: Dr Ibrahim Assane Mayaki (NEPAD)
The sustainability of African debt is also in question: in 10 years time, the continent has raised $36bn. But according to Standard and Poor’s, debt repayment services (which already constitute a major component of the budgets of African states) could increase significantly, mainly because of monetary tightening initiated by the FED and because of the low price of commodities. This will lead states to make tough choices, from the amputation of certain infrastructure investments to the postponement of social services. I make the wish that the necessary budgetary rigor will not impact expenses which are vital for the future of African countries: for example, infrastructure investments are profitable and help diversify the economy. Also, the education sector should not suffer from this: African younger generations need to be trained to ensure the continent’s future. I invite current and future leaders to manage their budgets responsibly.
Tanzania: Govt halts building of Bagamoyo Port (The Citizen)
The construction of the $10bn Bagamoyo Port has been suspended, The Citizen has learnt. The government wants to focus, instead, on improving the capacity, performance and efficiency of the Mtwara and Dar es Salaam ports.
Nigeria: MTN acquires Visafone in landmark industry deal (ThisDay)
After months of negotiations, Africa’s largest telecoms operator, MTN, sealed the deal to acquire Visafone, the leading CDMA operator in Nigeria, THISDAY has learnt. According to sources in the telecoms industry, the acquisition is expected to provide MTN the robust voice and data platform of Visafone and cater for the booming internet population in Nigeria. With about 150 million mobile subscribers and about 97 million internet users, Nigeria ranks among the fastest growing countries in terms of mobile subscribers and data penetration. However, the vast majority of the 97 million internet users today are limited to narrow band internet at 2G/3G speed.
El Niño has put world in 'uncharted territory' - UN relief chief (UN News Centre)
Turning to East Africa, he said that poor rains had resulted in drought-like conditions in the northern parts of the region, mostly Ethiopia, Sudan, Djibouti and Eritrea, while other parts of East Africa had experienced a wetter than normal season. By early 2016, projections indicate that at least 22 million people will be food insecure across the region and between 2.7 million and 3.5 million people could be affected by floods. “Ethiopia is the country most affected so far as it faces the worst drought in 30 years. Humanitarian needs more than tripled in the past year,” reported the UN relief chief, adding that some 10.2 million people are in need of emergency food assistance. And while the Government is taking on an “impressive” leadership role in confronting the crisis – including the allocation of some $290 million of its own resources for response efforts – the scale of the challenges demand more significant and timely support, as it could take possibly three to five months for donor support to reach those in need on the ground.
Food price index drops in December due to abundant supplies, slow economic growth (FAO)
Prices of major food commodities declined for the fourth year in a row in 2015 according to the UN Food and Agriculture Organization, averaging 19.1% below their previous-year’s levels, while the agency also reported that the dwindling global economy has triggered sharp price falls from metals to energy markets.
AfDB, Nigeria to spend US $300m on youth agriculture scheme (AfDB)
The scope and impact of this initiative would create 250,000 jobs; the beneficiaries would be trained at various incubation centres on all aspects of value chains, with each beneficiary of the project supported with about US $75,000. Ojukwu said the three-year project would enable training and funding of young graduates, who are interested in farming across the country.
Of maize and money: how to bring farmers into the financial system (CGAP, World Bank)
So what are the opportunities to accelerate financial inclusion of agricultural households? In 2015, the World Bank Group’s FISF program convened global experts to answer this question. The workshop was co-hosted by the Ministry of Foreign Affairs, Netherlands and the Rabobank Group, and brought together experts from select countries, multilateral organizations, major foundations, NGOs, and researchers. Here are the main takeaways from the workshop:
Related CGAP reports:
Designing digital financial services for smallholder families
This publication synthesizes learnings from across Zimbabwe, Senegal, Rwanda, and Cambodia, with the aim of providing financial service providers, donors, and other stakeholders with actionable insights into the ingredients for building successful, smallholder-specific digital financial services.
Current trends in international funding for financial inclusion
After steadily increasing in previous years, international funding of financial inclusion is estimated to have plateaued at $31bn in 2014. These data align with Official Development Assistance trends reported by OECD, which showed that international aid (across all development sectors) also stabilized in 2014. The ratio between public and private funding was largely unchanged, with public funding comprising 72% of global funding. Twenty-three funders participated in the 2015 survey, accounting for 66% of this year’s global estimate.
New Year message: Dr Richard Sezibera (EAC)
The pace of integration has to accelerate, or it will stall. 2015 has shown us that East Africa needs to urgently conclude a Protocol on Good Governance, and strengthen our Early Warning and Conflict Management. It has demonstrated an acute need to make sure that Elections in our Region are times of celebrations, anchored in ceaseless democratic consolidation and the promotion of pluralism, not times of desolation and despair. East Africans demand no less.
Burundi: Consultative meeting to deliberate on the way forward (EAC), Stalled talks to restart in mid-January, peacekeeping force by consent, says Tanzania foreign minister (RFI)
Egypt launches bid for membership in African Union’s Peace and Security Council (Egyptian Streets)
Draft opinion on the conclusion of the EPA between the West African States, ECOWAS and the UEMOA and the European Union (European Parliament)
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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)
