News
tralac’s Daily News Selection
The selection: Friday, 29 April 2016
Diarise: the 27th African Union Summit will take place in Kigali, 10-18 July
South Africa's March trade statistics have been released
Services in COMESA: an industry perspective (COMESA Business Council)
The services sector accounts for an average of 53% of GDP in the Common Market for Eastern and Southern Africa countries, outpacing manufacturing and agriculture sectors in terms of generating growth, income and jobs. In the context of the international value chains, a more robust services sector provides vital inputs to manufacturing and agriculture and can help increase the overall efficiency of the COMESA economy. Services trade in the COMESA region is also on the rise, offering enormous opportunities for diversifying exports, pursuing new dynamic, innovative and sustainable growth. A COMESA country’s average trade in services contribution to GDP is around 21%, higher than the world average of 12%. Egypt is the largest services exporter of the region, but Mauritius and Seychelles both stand out as two export-based services economies, with services contributing 51% and 58% to their respective GDP. As the COMESA economy becomes increasingly integrated into the regional and global market, services trade will play a more important role in the growth strategy of the region.
To better address these challenges to services growth in the COMESA region, the establishment of a Regional Services Industries Group (RSIG) has been proposed to act in the interest of the private sector. Through the examination of four key sectors in the COMESA region (tourism, transport, finance and telecommunications), the report identified key stakeholders and services associations in the region and charted a four-phase roadmap for establishing the RSIG. [Download]
COMESA: Mixed fortunes in foreign direct investment during 2014
The COMESA region recorded relatively flat Foreign Direct Investment in 2014 at US$16 billion, registering a marginal decline of less than 1% compared to 2013. The inflows were concentrated in a few economies, with the top six destinations accounting for 76% of the flows. This is according to the latest COMESA Investment Report issued in Lusaka. The six countries are divided into two groups; those that recorded positive and growth and those in the negative growth. Inward FDI was recorded in Egypt, Ethiopia and Uganda while negative growth was noted in Zambia, Sudan and the Democratic Republic of Congo.
Manufacturing more than doubles in sub-Saharan Africa, despite fall in share of GDP (ODI)
The report ‘Developing export-based manufacturing in sub-Saharan Africa’ found while the share of manufacturing in GDP had fallen from 19% in 1975 to 11% in 2014, it had still grown faster than the global average at a rate of 3.5% annually, from $73 billion in 2005 to $157 billion in 2014. At the same time, manufacturing exports doubled from $50 billion in 2005 to more than $100 billion in 2014, while many countries have also seen an increase in Foreign Direct Investment. The report argues strong growth in many parts of the continent, rising wages in China and policy improvements have provided the region with a unique opportunity to attract investment in manufacturing. The analysis includes a Manufacturing FDI Potential Index, which ranks nine country case studies based on their potential to attract FDI. Researchers highlighted Ethiopia, Kenya, Mozambique and Zambia as four countries which are particularly well-positioned to attract FDI in manufacturing. The report also suggests a number of promising manufacturing sub-sectors, with Africa’s share in global exports of fertilisers and inorganic chemicals rising to more than 5% and more than 4% for leather.
Botswana: February 2016 international merchandise trade statistics (Statistics Botswana)
Total exports for February 2016 were valued at P6, 401.9 million, with 32.8% (P2, 098.0 million) destined to SADC. Chart 3.2 shows that exports are mainly destined to Belgium (20.2%), South Africa (16.2%), Namibia (15.6%) and India (10.9%). These are the main destinations for diamond exports. Some significant portions of diamond exports go to Canada, Singapore and Israel as can be seen on Table 3.2 B. Exports to Norway consist of Copper/Nickel mainly. Imports for February 2016 were valued at P5,852.6m, with South Africa contributing 61.2% (P3,582.3m), while Namibia contributed 13.0% (P758.0m). [AfDB supports Botswana’s economic diversification programme]
Namibia's informal cross border trade (The Namibian)
During the official launch of the 2015 Informal Cross−Border Trade Statistics yesterday, NSA’s statistician general Alex Shimuafeni announced that while there was a decline in informal exports, informal imports increased in 2015 due to significant increases in informal imports from Angola, South Africa and Zambia. The report is a compilation of analysed data collected during the Informal Cross−Border Trade Survey conduced by the agency in September 2015. [Download]
South Africa: Value of agriculture, forestry and fisheries exports on the rise (SA Parliament)
Export value has increased and South Africa remains in a positive trade balance in the agriculture, forestry and fisheries sectors. Furthermore, the value of forestry and fisheries exports increased from R135bn in 2014 to R144bn in 2015, the Minister of Agriculture, Forestry and Fisheries Mr Senzeni Vokwana told Members of the National Assembly during the Budget Debate on Agriculture, Forestry and Fisheries recently in Parliament. He said exports from these sectors into other African countries increased from R59bn to R62bn and into Asia from R34.5bn to R37.1bn. [Drought-hit SA importing maize to cover shortfall]
Trade data discrepancies: South African exports to the USA versus US imports from South Africa (tralac)
Sub-Saharan Africa trade: most recent value (WITS World Bank)
Burundi's trade deficit narrows in 2015 on lower imports (The East African)
Tanzania: Government forms bureau to offer advice on oil and gas matters (IPPMedia)
The government has established an oil and gas advisory bureau under the President’s Office as it moves to gain an upper hand in the fast-developing oil and gas sector. Apart from offering technical advice to the government on oil and gas sectoral matters, including investment policy, rules and regulations, the bureau will also be tasked with examining various research findings on how best to make the sector an economic powerhouse for the country, the minister explained. It will furthermore set strategies for dialogue within the sector, offer technical advice during contract negotiations with potential investors, and work on building the capacities of local oil and gas experts within and outside the country, she added.
Kenya: China wins another sweetheart deal to run new rail (Business Daily)
Kenya has given China another sweetheart deal after agreeing to have a Chinese company operate business on the standard gauge railway without public bidding. The deal to offer the firm the contract was reached on Saturday at a summit of the East African Community bloc in Kampala attended by President Uhuru Kenyatta, putting Rift Valley Railway (RVR) business at risk. RVR, which operates the Kenya-Uganda railway, is expected to face competition from the new railway being built with Chinese financing from Mombasa to the Ugandan border.
Infrastructure Consortium for Africa: EOIs for development of a new strategic business plan, support to transport sector platform (AfDB)
New regulations for EAC trade (The Exchange)
New maritime shipping regulations may put shippers and clearing agents in trouble in the event of failure of compliance. Jocye Awino from the Kenya Maritime Authority (KMA), asserted that the new Safety of Life At Sea (SOLAS) rule that will be effected on July 1, require shippers to present verified gross mass (VGM) certificates before their containers are loaded on vessels. SOLAS regulations make it mandatory for shippers to verify the gross weight of every export cargo prior to loading. The amended law was adopted by the International Maritime Organisation last year. [New maritime regulations to improve safety, EAC trade]
Rwanda-Tanzania trade forum slated for May (New Times)
The trade forum, to be held on 20 May, is organised by the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA), Tanzania Trade Development Authority (TANTRADE), Tanzania Truck Owners Association (TATOA), and Rwanda’s PSF. The statement indicates that this first annual bilateral trade forum comes after “an exciting aura of refreshed political will and relations” between the two countries after the inauguration of the current President of Tanzania, John Pombe Joseph Magufuli in October last year.
Nigeria: MAN demands passage of 7 bills for manufacturing competitiveness (Vanguard)
Engr. Ibrahim Usman, Chairman, Infrastructure Committee of MAN, said these bills include: “The Federal Competition and Consumer protection Bill 2015; Roads Authority Bill 2015, National Inland Waterways Authority Bill 2015 and National Roads Funds and Harbour Bills 2015. Enabling environment Other bills under the reference are National Transport Commission Bill 2015, Nigerian Ports and Authority Bill 2015; Nigerian Postal Commission Bill 2015 and Nigerian Railway Authority Bill 2015.” He said that MAN Executive council, will be visiting the Speaker of the House and the Senate President to request for an urgent and decisive action on the 168 page report titled: “Comprehensive Review of the Institutional, Regulatory, Legislative and Associated Instruments Affecting Businesses in Nigeria.” [Blurred lines: smuggling in Nigeria (The Economist)]
Africans investing in Africa (The Africa Report)
After a day and a half of high-level discussions at an Africa investment conference, Arnold Ekpe, non-executive chairman of financial services holding firm Atlas Mara and former chief executive of Ecobank, sounds slightly exasperated. "African countries are not doing enough for themselves," he says. "I have been going to conferences like this for 20 years. We have to move from talk to action." An elite band of companies are doing just that – with a toolkit that helps expand their operations across African borders. But Ekpe argues that Africa needs many more champions like Dangote Group, MTN and ShopRite.
How advocacy strategies can help boost competition and transform markets (World Bank)
Our newest publication highlights the tools that competition authorities have developed to overcome the practical challenges, political-economy constraints and emerging trends that affect competition advocacy. Competition advocacy is both challenging and rewarding, as illustrated by 42 stories from around the world. In Malawi: Removing the restrictions set up by the national sugar monopoly on how wholesale distributors can procure sugar in Malawi required securing buy-in from various stakeholders, including the Ministry of Industry and Trade. The new distribution system has led to increased access to this key commodity for the food-processing industry.
Pradeep S Mehta: 'How to solve India’s exports puzzle' (The Hindu)
The steady decline in India’s exports over the past one-plus year has been at the centre of a raging debate in India. Granted, global factors such as tepid global demand, erosion of commodity prices and high volatility in currency markets have contributed to this conundrum. However, trade performance of any country is determined by internal as well as external factors. Exchange rate management alone will not relieve India’s export conundrum. The country should make continuous efforts in alleviating supply-side bottlenecks to boost sectoral productivity and export competitiveness. Therefore, India should adopt a calibrated approach towards structural reforms to address cyclical as well as structural factors at the external and internal fronts, which are adversely affecting our export performance. [The author is secretary general of CUTS International] [Rajeev Kher: 'A trade policy agenda for India-II']
What can the Asian Infrastructure Investment Bank learn from other development banks? (IDS)
To begin a contribution to this process, this Policy Briefing explores what the AIIB can learn about infrastructure finance from the experience of the two largest MDBs: the World Bank and the European Investment Bank (EIB). It concludes with eight recommendations. [The authors: S. Griffith-Jones, L. Xiaoyun, J. Gu, S. Spratt]
Malawi: feasibility study for the establishment of an agriculture cooperative bank (AfDB)
IGAD's Drought Disaster Resilience and Sustainability Initiative: update
tralac’s Daily News archive
Catch up on tralac’s daily news selections by following this link ».
SUBSCRIBE
To receive the link to tralac’s Daily News Selection via email, click here to subscribe.
This post has been sourced on behalf of tralac and disseminated to enhance trade policy knowledge and debate. It is distributed to over 350 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.
