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tralac’s Daily News selection
The selection: Thursday, 21 January 2016
Starting today, in Addis: 31st Ordinary Session of the Permanent Representatives Committee (AU)
The PRC will prepare the agenda of the AU Summit with appropriate recommendations for consideration by the Executive Council scheduled to take place from 27-28 January 2016. The meeting of the PRC will officially end on Saturday 23 January 2016.
Eastern Africa 2016 ICE meeting: Institutions, decentralization and structural transformation in Eastern Africa (UNECA)
This 20th ICE, to be held in Nairobi, 8-11 February 2016, will examine the role of institutions in promoting equitable growth in Eastern Africa. This will include a review of mechanisms that ensure the formulation of shared visions, enshrine good governance, strengthen public participation in decision-making and build social capital and cohesive pacts for transformational change. [The concept notes]
World of business must play part in achieving new Sustainable Development Goals – UN chief
“I ask all the CEOs here today [in Davos] to help us. Your advocacy and example can drive action to achieve a life of dignity for all people,” he told business leaders at an event on the Global Compact, a 15-year-old UN initiative to encourage businesses worldwide to adopt sustainable and socially responsible policies. You recognize that responsible businesses have enormous power to create decent jobs, open access to education and basic services, unlock energy solutions and end discrimination. I count on you to drive global progress,” said the Secretary-General.
A selection of Africa-related postings from the WEF: Extreme automation and connectivity: the global, regional, and investment implications of the Fourth Industrial Revolution (UBS), Rwanda keen on producing technology, says Kagame (New Times), Davos takes a fresh look at emerging markets (NYT), Is Africa still rising? Taking stock halfway through the decade (Brookings)
Namibia: Delinking from Rand easier said than done (The Namibian)
Delinking the Namibia dollar from the South African rand is easier said than done and entails numerous considerations, Namene Kalili, senior manager research and development at FNB Namibia said yesterday. Kalili said launching a new currency is a long term project, whereby countries need to show the global community that they are able to manage interest rates, inflation rates, balance of payments, government expenditure and economic growth, among other things. "Then the country must have adequate reserves to back the currency in circulation. Where our money gets printed and determinants of money supply become important considerations. We also need to consider our trade partners. Trade between Namibia and South Africa, our biggest trading partner, would become more complex as foreign currency translation now enters the equation. Therefore, this is not a decision to be taken lightly and has to be taken with a long-term view."
SADC: Credit information sharing project close out report (FinMark Trust)
A wide divergence exists in the level of credit information sharing across different SADC member countries as well as in the structure of the credit bureau sector and the corresponding regulatory environment. Harmonisation of regulations and approaches across SADC will contribute positively to increasing the level of credit information sharing and thus the goal of greater financial integration as stipulated in the SADC Protocol on Finance and Investment (FIP). FinMark Trust and GIZ identified credit information sharing between credit providers in the region (national and regional) as a strategic and critical area for SADC because:
Integration of EAC stock markets presents immense opportunities (New Times)
Global foreign direct investment hit eight-year high in 2015 (UNCTAD)
Global foreign direct investment flows rose by 36% in 2015, reaching their highest levels since the financial crisis, according to a report out today from the United Nations Conference on Trade and Development, which pegged the increase to a wave of cross-border mergers and acquisitions. The Global Investment Trends Monitor shows that foreign investment totalled some $1.7 trillion and that the increased FDI – investment made by a company or entity based in one country, into a company or entity based in another country – in developed countries was the main factor behind the unexpected spike, with industrialized nations accounting for 55% of global FDI inflows last year.
Extract: FDI inflows to Africa fell by 31% in 2015 to an estimated US$38 billion, due largely to a decline of FDI in Sub-Saharan Africa. Flows to North Africa reversed their downward trend as Egypt saw a rebound of investment from US$4.3 billion in 2014 to an estimated US$6.7 billion in 2015. Central Africa and Southern Africa saw the largest declines in FDI. The end of the commodity “super-cycle” had an impact on resource-seeking FDI. Flows into Mozambique were down 21% but still notable at an estimated US$3.8 billion, while Nigeria saw its FDI decline by 27% to an estimated US$3.4 billion as the country was hit hard by the drop in oil prices. FDI into South Africa fell dramatically, down 74% to US$1.5 billion. [Download]
Related: One Belt One Road sends Chinese outbound lending to 7-year high (Global Trade Review), Ibrahim Thiaw: address to the Islamic Development Bank (UNEP)
Silver lining to India's trade blues (Gateway House)
According to Commerce Ministry’s database on exports by region, in dollar terms, the three destinations showing maximum contraction in Indian exports (or areas that are buying much less from India than in the previous year) are Latin America (down by 36.73%), Commonwealth of Independent States (CIS) & Baltic region (down 32.4%) and Africa (25.59%). Clearly, India’s foreign policy practice and economic diplomacy needs to expend greater energy on these areas. Granulated regional data provides better insights. [The author, Rajrishi Singhal, is Senior Geoeconomics Fellow, Gateway House]
South Africa: Drought takes multi-billion rand toll on economy; emergency funding top priority (GCIS)
The Western Cape Government will this week table a report on the impact of the drought in our province at a meeting of the country’s agriculture Ministers. The drought may cost the country more than R2 billion in trade losses. “It has been estimated that we will need to import 750 000 tons of maize because of the decline in production. At the current maize price, this would result in a trade loss of R2.4 billion.” Minister Winde said the Unit’s analysis also estimated that national agricultural production had declined by more than 42%. This drop in production resulted in a 1.1% decrease in the country’s Gross Domestic Production.”
Related: Driest rainy season in 35 years in SADC (New Era), Zimbabwe to import maize till 2020 (Financial Gazette), Zimbabwe tobacco exports up on China demand, drought dims outlook (CNBC Africa)
Mozambique: “We must produce more” – but how? (SPEED)
Over the past 20 years government and business have engaged in dialogue about the business environment. Analysis of this dialogue shows that the same issues have been raised year after year. They have not been solved. The same issues arise again in CTA’s dialogue matrix, in the proposals for improved performance in the Doing Business indicators as put forward by MIC and the World Bank, in the Business Environment Improvement Strategy, in the Five Year Plan and in many sectoral plans and strategies. As a result of the lack of reform we are in the current predicament. The issues constraining production can be broadly categorized as follows:
Zimbabwe: Zim ranked 29th in UNTWO visa report (The Herald)
The United Nations World Tourism Organisation has ranked Zimbabwe as one of the top 30 countries that have made major efforts to reduce travel restrictions and allow free movement of tourists in the past seven years. In its 2015 Visa Openness Report released last week, the 157-member UNWTO, ranked Zimbabwe number 29 out of the top 54 member countries deemed to have made significant progress in relaxing tourist restrictions. [Download UNTWO's Visa Openess Report]
Zimbabwe: Scrapping travellers rebate retrogressive - ZIMCODD (The Herald)
The Zimbabwe Coalition on Debt and Development says the scrapping of the travellers rebate on public transport will effectively kill small businesses while it will fuel corruption at the border posts. With effect from January 1, 2016, Government revised the travellers rebate to $200,00 from $300,00 and removed rebate on travellers in public transport through Statutory Instrument Number 148 of 2015 (Customs and Excise (General Amendment) regulations (No 80). However, ZIMCODD has raised concern on the implications of the policy on informal sector, which is one of the key clusters to economic growth.
Tanzania: Shipping industry stakeholders warns against instability at TPA (IPPMedia)
Shipping industry stakeholders have warned that prolonged instability at Tanzania Ports Authority is undermining the competitiveness of Dar es Salaam port which may lose business to Mombasa and Beira ports.
Uganda: Government agencies ordered to stop awarding contracts in dollars (Daily Monitor)
In a 15th January 2016 letter to all government agencies and local governments, Mr. Keith Muhakanizi, the Secretary to The Treasury warned that the awarding of contracts in foreign currencies was piling pressure on the Uganda Shilling. [URA surpasses half year revenue target (Daily Monitor)]
Ghana: Letter of Intent, Memorandum of Economic and Financial Policies (IMF)
The government believes that the measures and policies set forth in the attached MEFP and the 2016 Budget are appropriate and sufficient to achieve the objectives of its program, and it stands ready to take any additional measures that may be necessary to that end. We will consult with the IMF on the adoption of such measures in advance of any revision of the policies contained in the MEFP, in accordance with the Fund’s policies on such consultation. The authorities will hold timely consultations with the IMF staff on the possible terms of a Eurobond and other nonconcessional external borrowing to ensure that such borrowing strengthens confidence in the program, does not jeopardize debt sustainability and is in line with the Fund’s debt limit policy.
Global supply chains and trade policy (World Bank)
How do global supply chain linkages modify countries' incentives to impose import protection? Are these linkages empirically important determinants of trade policy? To address these questions, this paper introduces supply chain linkages into a workhorse terms-of-trade model of trade policy with political economy.
World Bank Group launches new gender data products (World Bank)
The World Bank Group has relaunched its popular Gender Data Portal, comprising current and historical data on topics ranging from health and education to jobs, assets, and political participation—all broken down by sex. The Bank Group is also launching its Little Data Book on Gender 2016 alongside new online tables—to be updated quarterly—linked to the latest World Development Indicators, making it easier than ever to see how women and men are faring across a range of global indicators.
Diamond production in Angola expected to total 8.96 million carats in 2016 (Macauhub)
Khama saves Lesotho from SADC sanctions (Mmegi)
Mercosur can boost Brazil-Egypt trade (ANBA)
Mali notifies acceptance of Trade Facilitation Agreement, TRIPS amendment (WTO)
China-Ghana trade volume exceeds $6bn (BusinessGhana)
Africa to be major energy source for India: Dharmendra Pradhan (Business Standard)
Xi Jinping: 'Let China-Arab friendship surge forward like the Nile' (Xinhua)
Will Lagarde renew? IMF opens nominations for managing director (Daily Nation)
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