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SADC showcases the region in China, seeks investment in infrastructure
Southern Africa has taken its multi-billion-dollar infrastructure development plan to potential funders in China – a country that is now the leading investor in Africa.
In the last decade or so, Chinese investments in Africa have been on the rise, despite an overall decrease of foreign investment on the continent by some traditional partners due to a combination of factors, including depleted resources caused by the 2008/09 global financial and economic downturn.
According to the latest white paper on China-Africa economic trade and cooperation released in 2013, Chinese investment in Africa has rapidly increased from US$1.44 billion in 2009 to US$2.52 billion in 2012.
In addition to this, several agreements targeting infrastructure development have been signed to boost the blooming China-Africa partnership.
One such deal, hailed by the chairperson of the African Union (AU) Commission, Dr Nkosazana Dlamini-Zuma as the “most substantive project the AU has ever signed with a partner,” is a continental transport deal signed early this year to develop road, rail and air transport routes to link cities across the continent.
At present, the quickest route to travel from one side of Africa to another can involve connections routed via Europe, although it is feasible to connect directly.
To complement this cooperation, as well as attract a significant share of Chinese investment into the region, SADC presented its infrastructure development plan to Chinese investors at a recent SADC-China Infrastructure Investment Seminar held in Beijing.
The seminar follows two other successful investment conferences held in 2013 in Maputo, Mozambique and London, United Kingdom to attract investors for the SADC infrastructure programme.
At these meetings, various infrastructure projects in the six priority areas of energy, transport, telecommunications, tourism, meteorology and water were presented to potential funders.
The projects are contained in the SADC Regional Infrastructure Development Master Plan (RIDMP) approved by SADC leaders at their 32nd Ordinary Summit held in August 2012 in Maputo.
The RIDMP is a 15-year blueprint that will guide the implementation of cross-border infrastructure projects between 2013 and 2027 over three five-year intervals, with the first phase covering the period from 2012 to 2017 and costing around US$64 billion in investment.
The second and third intervals will cover the periods from 2017-2022 and 2022-2027, respectively, with a total proposed investment target of between US$428 billion and US$558 billion.
At the Chinese investment seminar, greater focus was on showcasing the main priority projects contained in the short-term action plan covering the period 2012-2017, and in particular those projects in the energy, transport and water sectors.
The target for the energy sector is to address the four key areas of energy security, improving access to modern energy services, tapping the abundant energy resources in the continent and up-scaling financial investment whilst enhancing environmental sustainability.
Priority energy projects earmarked for implementation by 2017 include the construction of the ZiZaBoNa Interconnector Project linking Zimbabwe, Zambia, Botswana and Namibia, as well as the establishment of the Namibia-Angola Interconnector that will connect the latter to the Southern African Power Pool (SAPP).
All mainland SADC countries, with the exception of Angola, Malawi and the United Republic of Tanzania, are interconnected to the regional grid through SAPP, allowing them to trade in energy.
With regard to the water sector, the short-term RIDMP plan prioritizes strengthening institutions; preparation of bankable strategic water infrastructure development projects; increased water storage to prepare for resilience against climate change; improved access to safe drinking water; and strengthening of sanitation facilities for SADC citizens.
With respect to the transport sector plan, focus is on effective regulation of transport services; liberalization of transport markets; development of corridors and facilitation of cross-border movement; construction of missing regional transport links; and harmonization of road safety data systems.
The priority transport projects to be implemented by 2017 include those targeting the expansion, rehabilitation and modernisation of Durban and Walvis Bay ports; new road links connecting Angola and the Democratic Republic of Congo (DRC); and the introduction of a one-stop border post at Beitbridge between South Africa and Zimbabwe.
“The objective of the conference was to bring to the table, a number of bankable projects and those under preparation for consideration and possible funding,” the SADC Secretariat said in a statement.
Chinese investors expressed satisfaction with the projects and pledged to invest in the region. China is already heavily involved in a number of projects in various SADC countries.
These include the construction of various road projects in the DRC, and the development of mineral exploitation and processing plants in South Africa.
In Zimbabwe, China is implementing a number of projects such as the Kariba South Hydropower Station expansion project, rehabilitation of municipal water supply in Harare and sewage treatment systems, as well as the expansion of the Victoria Falls airport.
The SADC-China Infrastructure Investment Seminar held on 9 July was organized by the SADC Secretariat in collaboration with the SADC Committee of Ambassadors in Beijing, the China-Africa Joint Chamber of Commerce and Industry.
The theme for the seminar was “Energy, Water and Transport Revitalisation in the SADC Region”.
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SADC Ministers of Finance and Central Bank Governors meet in Bulawayo
The SADC Third Peer Review Panel meeting of Ministers of Finance and Central Bank Governors commenced in Bulawayo, Republic of Zimbabwe on 3 August 2015 to deliberate on key aspects relating to Macro-economic Convergence and financial sector integration for the SADC region. The meeting was preceded by a Session of Senior Officials which took place on 1st and 2nd August 2015.
Official opening of the Meeting was done by Hon. Patrick Chinamasa, Minister of Finance of the Republic of Zimbabwe and one of the co-chairs of the Meeting. In his remarks, he stated that sustaining high levels of resources necessary for the regional industrialization requires that we attend to following, among others: strengthening and deepening our financial and monetary reforms; deepening capital markets through developing innovative financing vehicles; linking closely SADC stock exchanges with the objective of creating a regional stock exchange; and encouraging private equity firms and public private partnerships arrangement in order to leverage domestic resources, among others.
He concluded his remarks by emphasizing that the Committee of Ministers and Central Bank Governors meeting is expected to play a pivotal role in ensuring that the objective of the development agenda as directed by our Heads of State and Government becomes a reality.
H.E Dr. Stergomena Tax in her opening remarks urged Member States to take the agenda of the meeting seriously for the well-being of the region. She stated that good economic governance and macroeconomic stability are critical elements, and prerequisites for economic integration and development.
She stated further that, according to the revised RISDP 2015-2020, industrialization and market integration are among the priorities of the SADC region, which must be placed at the centre stage in the short to medium term. She said that their role as Ministers of Finance and Governors in spearheading the Industrialization and Market Integration priority pillar is very essential, in particular, by stimulating and deepening financial market integration, creating a conducive environment, and advancing cooperation and harmonization in the financial and investment sectors.
She also commended the government of Zimbabwe for ratifying the Protocol on Finance and Investment, bringing the number of Member States in this category to eleven (11), and called the remaining Member States to take similar steps.
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tralac’s Daily News selection: 4 August 2015
The selection: Tuesday, 4 August
Botswana to host SADC Summit: 7-18 August
Southern African Business Forum: 11-12 August
The 2015 SADC Peoples’ Summit: 15-16 August
SADC: Third Peer Review Panel meeting of Ministers of Finance and Central Bank Governors
The SADC Third Peer Review Panel meeting of Ministers of Finance and Central Bank Governors commenced Monday in Bulawayo to deliberate on key aspects relating to macro-economic convergence and financial sector integration for the SADC region. The meeting was preceded by a Session of Senior Officials which took place on 1st and 2nd August 2015.
Speech by Dr Stergomena Tax: allow me to congratulate the Government of Zimbabwe for ratifying the Protocol on Finance and Investment on 24 June 2015, bringing the number of Member States in this category to 11 [Speech by Minister Patrick Chinamasa]
Measuring, benchmarking customs and border management performance in COMESA Member States (AfDB)
The AfDB invites consultancy firms to express their interests in undertaking of a Time Release Study (TRS) for the COMESA Secretariat. The progress made so far in regional integration by COMESA reveals that the successful launch and implementation of its policies and programmes have greatly helped deepen regional integration. While a range of trade facilitation measures are being implemented by the COMESA Member States, there is no system in place to gauge the effectiveness of these initiatives or to enable improvements to existing procedures/documents/systems to further facilitate trade.
Under the auspices of the Japanese Policy and Human Resource Development Grant, therefore the AfDB is providing support for the undertaking of the TRS aimed at measuring and benchmarking Customs and Border Management Performance in COMESA Member States. The TRS will cover 10 countries and those contiguous to the 10. The TRS further aims at helping the COMESA Secretariat/Member States build the capacity to conduct TRS for pursuing trade facilitation in a standardized manner. The support sought will as well include the development of the capacity to design, collect data and more importantly emphasis on the ability to conduct analysis and drafting of policy recommendations upon or subsequent to consultation with the relevant stakeholders.
What EAC companies must do to partake of the integration projects (New Times)
The respective standards bodies in the region (RSB, KEBS, UNBS, OBN, TBS) have done a great job in developing standards, but these are yet to be universally taken up by most SMEs. Quality certificate is voluntary, thus most SMEs do not consider this important. And this is where the champions of the corporate world in the region, have their task cut out for them. EABC, PSF in Rwanda, PSFU in Uganda, KEPSA in Kenya, TPSFU in Tanzania, and their Burundi counterparts must take the lead initiative in getting the business world here catch up with global standards and practices. No excuse of being small. This is how industry and professional associations elsewhere protect their markets. [The author: Matsiko Kahunga]
Through ARSO, we are boosting intra-Africa trade (ThisDay)
Director General of the Standards Organisation of Nigeria Joseph Odumodu, discuses how the Africa Standards Organisation under his leadership, is enhancing trade on the continent, he spoke with Crusoe Osagie. Excerpts:
International transport and trade facilitation in North Africa (UNECA)
Although intra-regional trade doubled between 2007 and 2013, intra-regional trade remains well below its potential, accounting for only 4.8% of member country exports, against the African continental average of 12%. Despite several initiatives to launch an economic integration process (Arab Maghreb Union, Agadir agreement, bilateral conventions) intra-regional trade remains in North Africa is one of the least dynamic in the world.
This situation has a number of causes, including the persistence of tariff and non-tariff barriers to trade, high indirect costs caused by the economies’ lack of integration and the shortcomings of national regulatory frameworks. It is also related to the fact that, despite their effort to facilitate trade and improve transport infrastructures, the countries have not paid significant attention to inter-State cooperation to facilitate trade and deepen the integration process; these aspects often remained within the national frontiers or were limited to relations between the countries and their trade partners outside the sub-region. [Download]
WTO Trade Policy Review programme for 2016
The WTO has announced the schedule for the programme of Trade Policy Reviews for 2016: African states include Malawi, DRC, Zambia, Mozambique.
Eleven members notify preferential measures in support of LDC services (WTO)
By 31 July, eleven WTO members had notified to the Council for Trade in Services preferential measures to enhance least-developed countries’ participation in world services trade. Implementing this key Bali Ministerial Decision is an important step towards the WTO’s development objectives for the poorest countries. The notifiying members are:
New compliance ratings on tax transparency (Global Forum)
The Global Forum on Transparency and Exchange of Information for Tax Purposes published new peer review reports on 3 August for 12 countries or jurisdictions, moving further ahead with its goal to implement global standards on transparency and exchange of information for tax purposes. Phase 1 reports on Albania, Burkina Faso, Cameroon, Dominican Republic, Lesotho, Pakistan and Uganda assessed their legal and regulatory frameworks for transparency and exchange of information on request. These countries were assessed to have legal frameworks in place to enable them to move to the next stage of the review process, which will assess exchange of information practices.
South Africa: Tourism and Migration, April 2015 (StatsSA)
In April 2015, there were 1 169 290 foreign arrivals to South Africa. The arrivals were made up of 84 125 non-visitors and 1 085 165 visitors. The visitors consist of 365 608 same-day visitors and 719 557 overnight visitors (tourists). The breakdown of the tourists by region is as follows: 144 771 from overseas; 560 389 from the SADC countries; 13 468 from 'other' African countries and the country of residence of 929 tourists was classified as unspecified.
Tanzania: Special industrialisation programmes expected to speed up development (Daily News)
"Investors are 'flying birds'...they always go where there is friendly environment to support their businesses," says Ms Nanyaro, hinting that there are even Tanzanians who relocate their investments to neighbouring countries where they believe the incentives are more competitive. According to available statistics, the benefits accrued from the new investments under EPZ/SEZ schemes are far higher than the sacrificed tax revenues under incentives. EPZs and SEZs have in the past seven years attracted investments worth over one billion US dollars, with the 130 registered companies creating 31,923 jobs for mostly Tanzanians, according to statistics by the Export Processing Zones Authority.
Zimbabwe: Clothing industry eyes 100% growth by 2020 (The Herald)
Zimbabwe Clothing and textile manufacturers are targeting 100% capacity utilisation by 2020 following Government’s directive to ban all second-hand clothes on the local market. Speaking on the sidelines of a tour of the company by the Office of the President and Cabinet yesterday, Zimbabwe Clothing Manufacturers’ Association chairman Mr Jeremy Youmans said clothing manufacturers welcome Government’s directive to ban second-hand clothing as this will provide a boon to their operations. “The entire industry is currently operating at 45% capacity and obviously some companies face difficulties but we are always optimistic of reaching that milestone. We are calling for flexible labour laws as well for us to achieve our goal,” said Mr Youmans. “Recapitalisation in the clothing and textile industry is not a big issue because most of our machinery is not expensive to replace.”
Genetically modified cotton piloted in Malawi (COMESA)
Lawmakers and scientists from four southern Africa States held a three day biotechnology meeting in Malawi to discuss and see genetically modified cotton which is on trial in Malawi. The meeting which involved visits to the Bt-Cotton confined field trials involved lawmakers from Zimbabwe and scientists from Malawi, Zambia and Swaziland.
Namibia: Research expert concerned about dairy industry’s future (New Era)
Roux is also concerned about the local industry going down as the risks of dairy production are very high. He urges communal farmers to get involved on a much higher scale in producing milk. “We must compare apples with apples. Namibia produces 200 million litres of milk per annum and simply cannot compete with South Africa, a country that produces the same volume each and every day. The Namibian dairy industry is not asking for a complete ban of imported milk from South Africa. What they are asking for is the same protection the maize and chicken industries are enjoying,” he concludes.
This paper documents the structural transformation in employment that has taken place in Sub-Saharan Africa over the past 15 years. In contrast to Asian economies, where at least half of the labor flows out of agriculture have gone into industry, in SSA, most of the workers have ended up in the service sector, especially household enterprises. Rwanda has been one of the stellar performers in SSA in terms of structural transformation with the strongest movement of workers out of agriculture. Contrary to conventional wisdom, except for the very top of the distribution of consumption in Rwanda, families in household enterprises now consume as much as non-agricultural wage earners.
Chinese investors eye real estate, manufacturing sectors (New Times)
Chinese investors have expressed interest in the country’s manufacturing and real estate sectors, as well as the ongoing regional infrastructure projects, according to Yvette Umutoni, the head of investments at the Rwanda Development Board. Umutoni said the investors representing over 50 Chinese firms have already met with their Rwandan counterparts and pledged to leverage on the country’s good investment climate to scaleup investments in these sectors. Han Jun, the president of the East Africa Chinese Chamber of Commerce, said they are looking to build a strong trade link that will help attract more Chinese investors into the country and the region as a whole.
Jibrin Ibrahim: 'Entrepreneurs and philosopher kings for Africapitalism' (Premium Times)
The problem in contemporary Africa has been that the appropriation of rent was not leading to the enhancement of capitalist production, it was producing a patrimonial state in which access to State resources was more important than production. One African capitalist has shown the way forward; Aliko Dangote is showing today that vast accumulation is possible, and indeed very profitable in capitalist production itself. I do hope Elumelu’s entrepreneurs would be looking at that path and the State would play its own role, such as ensuring producers actually have access to credit rather than just traders and speculators. Meanwhile, if Tony Elumelu himself would add Karl Marx to his already impressive reading list, we can have more to talk about as he progresses in his determination to produce entrepreneurs for the strategic and productive sectors of the economy.
Nigeria assumes UNSC Presidency (Security Council Report)
Nigeria will hold the Council’s presidency in August. An open debate on regional organisations and contemporary challenges for maintaining international peace and security is planned, with Secretary-General Ban Ki-moon expected among the speakers. Nigeria has also planned a briefing by Assistant Secretary-General for Peacekeeping Operations Dmitri Titov on security sector reform (SSR), an issue it made a centerpiece during its previous presidencies in October 2011 and April 2014.
Prof. Emmanuel Nnadozie: comments to African Leadership Academy seminar (ACBF)
European bank injects over $100mn towards expansion of Egypt’s trade finance (StarAfrica)
Nigeria, South Africa grapple with structural economic challenges (BusinessDay)
Nigeria investors rattled by Buhari delays on economic plans (BusinessDay)
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Bold approach to capacity building needed to foster regional integration
Support and political will of African leaders is very critical in order to effectively promote regional integration but also allow capacity building institutions and development partners to play their role.
In an address delivered on Thursday during a session of the African Leadership Academy held in Dar es Salam, Tanzania, the ACBF Executive Secretary, Prof. Emmanuel Nnadozie said that despite relative success over the years, efforts from member states of Regional Economic Communities (RECs) and pan African institutions to foster regional integration have been hindered by their lack of enforcing capacity and inadequacies in human resource capacity, which compromise policy design, implementation and monitoring and evaluation of the projects or programs.
“For instance, many protocols have been signed but remain unimplemented, due to ineffective and inadequate implementation capacity. In some RECs where capacity exists, it is neither optimally used nor sufficiently nurtured,” Prof. Nnadozie said.
He called on African leaders to partner with, and listen to, capacity building institutions, contribute financially to capacity building programs, projects and institutions to ensure ownership and sustainability, and support mobilisation of financial support towards development of national capacity building strategies. “African leaders should also champion the revision of budget nomenclature to incorporate a budget line on capacity building,” Prof. Nnadozie added.
African countries should also strengthen existing institutions for regional integration by ensuring that adequate administrative and financial resources are available, supporting the funding of capacity building interventions, especially in designing, operating, and monitoring regional programs and projects. They should also pay attention to human capacity in trade-related issues, organizational capacity in fiscal policy and financial market development, as well as institutional capacity in fiscal policy and development of capacity building programs and emphasize the retention and use of skills, not just their acquisition.
“Strengthening research and knowledge and experience sharing, and ensuring that various legal frameworks are harmonized and made coherent, and that continental objectives and those of the RECs are aligned with Agenda 2063 should not be neglected either,” Prof. Nnadozie concluded.
Regional integration has been a priority focus for ACBF and some of its regional interventions over the last 24 years have seen the Foundation conduct studies leading to the publication of flagship reports such as A Survey of the Capacity Needs of Africa’s Regional Economic Communities in 2008 – update forthcoming – or the Africa Capacity Report on Capacity Imperatives for Regional Integration.
The Foundation has also invested in capacity building through financial support at continental level to the African Union (AU) and at regional level to the RECs, such as CEMAC, COMESA, EAC, ECCAS, ECOWAS, SADC, and UEMOA.
Moreover, it has established regional training programs in both Francophone and Anglophone Africa such as the Programme de troisième cycle interunivesitaire en Economie (PTCI), the African Institutions of Science and Technology (AIST) and the Economic and Policy Management (EPM).
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ECA publishes report on International Transport and Trade Facilitation
The Economic Commission for Africa has published its report on International Transport and Trade facilitation in North Africa. In this study, the ECA office for North Africa analyses sub-regional policies, regulatory frameworks, transport and trade infrastructures. The report also includes suggested reforms and practical measures to facilitate trade and the transport, control and clearing of goods when crossing the sub-region’s main land borders (Algeria, Libya, Egypt, Mauritania, Morocco, Sudan and Tunisia).
“The aim of this study is to help promote the growth of trade by proposing, on the basis of a diagnosis of the existing situation in member countries, a regional outline plan to facilitate interstate transport, transit and trade in the North Africa region, along with measures and actions that would sustainably enhance the performance of customs administrations and the quality of logistics services while boosting the economic integration process,” explains Mrs Karima Bounemra Ben Soltane, Director of the ECA office for North Africa.
Although intra-regional trade doubled between 2007 and 2013, intra-regional trade remains well below its potential, accounting for only 4.8% of member country exports, against the African continental average of 12%. Despite several initiatives to launch an economic integration process (Arab Maghreb Union, Agadir agreement, bilateral conventions) intra-regional trade remains in North Africa is one of the least dynamic in the world.
This situation has a number of causes, including the persistence of tariff and non-tariff barriers to trade, high indirect costs caused by the economies’ lack of integration and the shortcomings of national regulatory frameworks. It is also related to the fact that, despite their effort to facilitate trade and improve transport infrastructures, the countries have not paid significant attention to inter-State cooperation to facilitate trade and deepen the integration process; these aspects often remained within the national frontiers or were limited to relations between the countries and their trade partners outside the sub-region.
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WTO Trade Policy Review programme for 2016
Surveillance of national trade policies is a fundamentally important activity running throughout the work of the WTO. At the centre of this work is the Trade Policy Review Mechanism (TPRM). All WTO members are reviewed, the frequency of each country’s review varying according to its share of world trade.
The reviews take place in the Trade Policy Review Body which is actually the WTO General Council – comprising the WTO’s full membership – operating under special rules and procedures. The reviews are therefore essentially peer-group assessments, although much of the factual leg-work is done by the WTO Secretariat.
What are Trade Policy Reviews?
Trade Policy Reviews analyse the trade policies and practices of every member of the World Trade Organization. As well as analysing by sector and by trade measure, the reports also look into the country’s wider economic environment.
The reviews consist of three main parts: an independent report by the WTO Secretariat, a report by the government, and the concluding remarks by the Chair of the WTO’s Trade Policy Review Body following discussion of the review by the WTO membership.
A key trade facts section at the front of the review provides a handy visual overview of the country’s major exports/imports, its main export destinations, the main countries of origin for its imports and other key economic data.
The WTO has announced the schedule for the programme of Trade Policy Reviews for 2016:
Georgia | 19 and 21 January |
Morocco | 2 and 4 February |
Fiji | 23 and 25 February |
Turkey | 15 and 17 March |
Maldives | 21 and 23 March |
Saudi Arabia | 4 and 6 April |
Ukraine | 19 and 21 April |
Malawi | 27 and 29 April |
Honduras | 2 and 4 May |
Albania | 11 and 13 May |
United Arab Emirates | 1 and 3 June |
Democratic Rep. of Congo | 15 and 17 June |
Zambia | 21 and 23 June |
China | 5 and 7 July |
Tunisia | 13 and 15 July |
Singapore | 26 and 28 July |
El Salvador | 14 and 16 September |
Russian Federation | 28 and 30 September |
Rep. of Korea | 11 and 13 October [to be confirmed] |
Sri Lanka | 1 and 3 November |
Guatemala | 16 and 18 November |
Mozambique | 28 and 30 November |
Solomon Islands | 13 and 15 December |
United States | 19 and 21 December |
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Somalia reaches milestone with first IMF review in decades
Somalia should focus on strengthening the key building blocks for stability and growth as it recovers from more than two decades of civil war, the IMF says in its first review of the nation’s economy in a generation.
In its first regular “health check” of the economy in over 25 years, the IMF noted that the country had made significant progress since it resumed relations with the international community. But Somalia’s situation remains very fragile, and international support will be vital to rebuild institutions and restore normalcy, the report says.
IMF Executive Board 2015 Article IV Consultation with Somalia
Since 1991, Somalis have suffered greatly from civil war. The economy deteriorated as the physical infrastructure was destroyed. In addition to the loss of lives, the war worsened the population’s living conditions, now among the lowest in the world. Even though the political and security situations remain challenging, Somalia has made tremendous progress since resuming relations with the IMF on April 12, 2013. The IMF has been actively involved in providing technical assistance and policy advice in its key areas of expertise, which laid the groundwork for this Consultation. While Somalia has been welcomed back as an active member of the Fund, it remains ineligible for financial assistance pending the clearance of its longstanding arrears. Arrears clearance will be an important part of normalizing relations with the international community and establishing a roadmap to debt sustainability.
As a result of the civil war, all Somali state institutions are severely impaired. Improving governance in key state institutions is critical for progress on economic reconstruction and development. The federal government, working with the international community, has taken steps to improve governance based on the rule of law and the application of international good practices for fiscal and financial operations. IMF technical assistance is largely devoted to enhancing governance in the ministry of finance and the central bank. Rebuilding critical infrastructure and delivering basic social and economic services will be crucial for the new government to gain the trust of the Somali people, advance the process of national reconciliation, and to extend federal government authority over all parts of the country.
Economic activity is estimated to have expanded by 3.7 percent in 2014, driven by growth in agriculture, construction, and telecommunications. Consumer price inflation was 1.3 percent. For 2015, real growth is projected at 2.7 and inflation should remain subdued at about 4 percent. With modest progress on the security front and an absence of drought, medium-term annual growth should be about 5 percent. Nevertheless, growth will remain inadequate to redress poverty and gender disparities.
Budget preparation and implementation is fraught with difficulty due to deficiencies in revenue mobilization and expenditure pressures that exceed available resources. The budget consists largely of salary and security expenditures contained by strict cash rationing. Deficits have been financed mostly through arrears accumulation. Similarly, the 2015 budget was prepared on a zero cash balance basis with optimistic revenue forecasts and weak commitment control, leading the federal government to ration cash and incur arrears to the defense forces, civil servants, and suppliers. On July 19, an extraordinary session of the Cabinet, chaired by the President, approved and sent to Parliament a revised budget for 2015.
The formal financial sector consists of the central bank, six banks with provisional licenses, and nine licensed money transfer firms. The sector is small and nascent while there is reportedly a large informal sector. The central bank of Somalia (CBS) faces challenges in building financial sector supervision due to technical and human resource constraints. The economy is predominantly dollarized and cash is scarce, particularly in lower denominations. Somali banknotes are not readily available, creating problems for the poorest.
The 2014 current account deficit is estimated at US$644 million (11.3 percent of GDP). Trade consists mostly of exports of livestock to Gulf Cooperation Council countries and imports of foodstuffs from neighboring countries and the Indian subcontinent. The trade and income deficits were US$2,663 million and US$450 million, respectively, partially covered by remittances of US$1,333 million and other transfers of US$1,137 million. The deficit was financed by foreign direct investment of US$434 million, especially in telecommunications, electricity, and hotels, and donor capital transfers of US$150 million.
External debt was estimated at US$5.3 billion (93 percent of GDP) at end-2014, preponderantly arrears. Debt data covers most creditors, excludes commercial debt, and shows obligations to: (i) multilaterals (US$1.5 billion); (ii) Paris Club creditors (US$2.3 billion); and, (iii) Non-Paris Club creditors (US$1.5 billion). Based on a preliminary assessment, Somalia lacks the ability to service its debt in the medium term.
Executive Directors welcomed Somalia’s reengagement with the Fund, setting the stage for its first Article IV consultation since 1989. Directors agreed with the thrust of the staff appraisal. They noted that, following the protracted civil war, the country is facing daunting challenges. The first priority is to continue building institutions and administrative capacity, while undertaking key structural reforms to spur inclusive growth and reduce poverty. Directors underscored the importance of continued assistance from the international community to support the authorities’ efforts. They welcomed the launch of the Trust Fund for Capacity Development, and highlighted the important role of Fund policy advice and technical assistance.
Directors stressed the need for decisive steps to build fiscal discipline, underpinned by realistic budgeting and effective implementation systems. They welcomed cabinet approval of a revised budget for 2015 that will avoid new arrears by raising revenues and rationalizing wages and services and other recurrent spending. Going forward, Directors stressed the importance of budgeting within a medium-term fiscal framework, based on sound fiscal principles and transparent reporting, and a public expenditure review to promote the allocation of resources towards investment in human capital and infrastructure.
Directors encouraged the adoption of sound mechanisms to ensure effective and transparent management of prospective natural resource wealth. They recommended building institutions consistent with international best practices to ensure that natural resource exploitation maximizes benefits for Somalis. They also stressed the need for clarity regarding the delineation of authority between the federal government and sub-national entities.
Directors supported ongoing efforts to strengthen the Central Bank of Somalia’s capacity and governance structure, with support from the Fund and development partners. They cautioned that currency reform should not be implemented until all prerequisites are in place, in order to safeguard policy credibility.
Directors stressed that elaboration of a financial sector roadmap will be a critical first step to build credibility in licensing and supervising money transfer firms, in order to help channel remittances through the international banking system. They also recommended bringing the AML/CFT framework in line with international standards. Other priorities include preparing and approving additional prudential regulations, and strengthening compliance.
Directors encouraged the authorities to improve statistical capacity, in order to enhance the scope, quality and timeliness of economic data compilation, with technical assistance from the Fund and development partners.
Directors noted Somalia’s longstanding arrears to the Fund and other creditors, and encouraged the authorities to continue to work towards a pathway for arrears clearance and eventual debt relief. They noted that, in due course, the establishment of a track record of cooperation with the Fund on policies and payments in the context of a well-designed staff-monitored program (SMP) would be a key step in the process of arrears clearance and normalization of relations with the international community as a whole. Directors stressed the need for sustained international support and cooperation, and welcomed the formation of the Technical Working Group on Somalia’s Debt.
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The Global Forum releases new compliance ratings on tax transparency
The Global Forum on Transparency and Exchange of Information for Tax Purposes published new peer review reports on 3 August for 12 countries or jurisdictions, moving further ahead with its goal to implement global standards on transparency and exchange of information for tax purposes.
Phase 1 reports on Albania, Burkina Faso, Cameroon, Dominican Republic, Lesotho, Pakistan and Uganda assessed their legal and regulatory frameworks for transparency and exchange of information on request. These countries were assessed to have legal frameworks in place to enable them to move to the next stage of the review process, which will assess exchange of information practices.
The Global Forum also reviewed exchange of information practices through Phase 2 peer review reports in Lithuania and Sint Maarten. Both were given a rating for compliance with the individual elements of the international standard and an overall rating with Lithuania receiving an overall rating of “Compliant” and Sint Maarten an overall rating of “Partially Compliant.”
Jurisdictions continue to request supplementary reviews that assess steps taken to address recommendations of the Global Forum to address gaps in their legal frameworks and exchange of information practices identified in previous reviews. This included the Marshall Islands, which had been blocked from moving to Phase 2 of its review process due to significant gaps in its legal framework. A supplementary review concluded that key changes to its legislation now enable the Marshall Islands to move to Phase 2.
Austria, which was rated “Partially Compliant” in July 2013, has since implemented a number of recommendations by the Global Forum, leading to an upgrade of its overall rating to “Largely Compliant” in its supplementary report. The supplementary report of the British Virgin Islands, which assesses progress made since its Phase 2 report in July 2013 also concluded that based on significant improvements having been made, its overall rating be upgraded from “Non-Compliant” to “Largely Compliant.”
The Global Forum is the world’s largest international tax group, with 127 members on an equal footing. The Forum has now completed 198 peer reviews and assigned compliance ratings to 80 jurisdictions that have undergone Phase 2 reviews. Of these, 21 jurisdictions are rated “Compliant”, 46 are rated “Largely Compliant”, 10 are rated “Partially Compliant” and 3 jurisdictions are “Non-Compliant.” A further 11 jurisdictions are blocked from moving to a Phase 2 review due to insufficiencies in their legal and regulatory framework.
In an important step towards the smooth implementation of the OECD’s standard on Automatic Exchange of Information, the Global Forum has launched a multilateral process to evaluate confidentiality and data safeguards frameworks in more than 90 jurisdictions which have committed to begin automatic information exchange by 2017 or 2018.
The Global Forum continues to ensure that the benefits of participation in the new tax transparent and cooperative environment are available to all. It has conducted a number of training seminars to help jurisdictions prepare for peer reviews, sensitize tax auditors in the use of the exchange of information infrastructure and equip governments to implement automatic exchange of information. Around 200 tax experts participated in seminars in Colombia, Cameroon, Ghana and Kenya. The Global Forum will also support a new pilot project on Automatic Exchange of Information announced jointly by Ghana and the UK on the sidelines of the 3rd Financing for Development Conference in Addis Ababa.
Global Forum members will meet at their annual plenary meeting on 29-30 October 2015 in Bridgetown, Barbados.
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Central Corridor poised to become regional trade hub
A renewed sense of urgency to get things done characterised last Friday’s inter-state council meeting of ministers from Rwanda, Burundi, Uganda, Tanzania and DR Congo as they discussed how to make the central corridor, East Africa’s hotbed for trade.
The meeting, held in the serenity of the Lake Kivu Serena Hotel in Rubavu District, saw ministers approving more than 20 ambitious projects to be jointly implemented by the Central Corridor partners.
Perhaps the most exciting of the projects is the proposed multi-billion dollar standard gauge railway connecting Rwanda, Uganda, Burundi and DR Congo to Dar es Salaam port whose construction is to be launched in August 30.
Also, this month, Dar es Salaam port will open offices in Rwanda, Burundi and Uganda.
Initially to be housed at the Tanzanian embassies in the respective countries, the move is aimed at getting the port closer to traders, said Dr Shaaban Mwinjaka, the permanent secretary in Tanzania’s transport ministry.
With Kenya ports authority already running an office in Kigali, renewed efforts to improve trade facilitation on the Northern and Central Corridors is gradually giving way to healthy competition between East Africa’s two ports of Mombasa and Dar es Salaam.
That competition, according to analysts, will boost regional trade and ease transportation costs and lead to a positive effect on the final prices of goods and services.
A good example is the recent launch of block trains bound for Uganda and Rwanda via Isaka-Mwanza and to Burundi and DR Congo via Kigoma, seen as an attempt by Tanzania to reposition Dar es Salaam against an increasingly competitive Mombasa port.
Anchored by Tanzania’s port of Dar es Salaam, the Central Corridor is the principal transport route for the five countries but inadequate infrastructure and inefficiency in trade facilitation had pushed the cost of doing business on the course very high for traders.
In 2006, the Central Corridor Transit Transport Facilitation Agency (CCTTFC), a multilateral agency by the five nations, was formed to turn a new page of efficiency on the route.
Rukia Shamte, the executive director of CCTTFC, said her secretariat begun work in November 2010, aiming at making transforming the corridor into a trade route of choice for eastern and central Africa. But not much had been achieved by end of 2014.
The establishment in July 2013 of the Northern Corridor integration infrastructure projects initiative to smoothen Rwanda and Uganda’s access to the Kenyan port of Mombasa posed a potential threat to the future role of Port of Dar es Salam.
Ambitious projects on the Northern Corridor, headlined by the standard gauge railway, inspired deep political will kept alive by quarterly meetings of heads of state of the three countries plus South Sudan to take stock of their joint efforts.
That political will has yielded early dividends for Northern Corridor countries including the one network area, a single tourist visa; identity card powered cross-border travel and cozier diplomatic ties among the partners as they jointly work to implement projects.
‘Inspired Kikwete’
On March 7, President Kikwete attended, as an observer, the 9th summit of Heads of State of the Northern Corridor Integration Projects hosted by Rwanda in Kigali.
Sources privy to the meeting say that the Tanzanian president was impressed and inspired by what he had observed during the meeting and, two weeks later, he convened the first ever Central Corridor Heads of State summit in Dar es Salam.
Since then, Shamte admits that things have been smoother for her secretariat and last week’s meeting in Rubavu was aimed at taking stock of what has so far been achieved ahead of the next presidential summit expected sometime this month.
The summit’s venue is yet to be determined.
It’s quite possible that had Kikwete convened the first presidential meeting earlier than March, Shamte and her secretariat would have achieved much more than she will with Kikwete’s remaining few months in office (he leaves office later this year).
“We are confident that the next president will take forward the initiative but in the meantime, we have to move fast to benefit from the current momentum,” she said during a lunch break in Rubavu.
Amb. Valentine Rugwabiza, Rwanda’s minister for East African Community Affairs, echoed a similar message in her speech when she said that political will has provided the countries with a grand opportunity to make things happen.
“Major strides have been made since March but we need to do more in order to translate the political will into tangible results,” Rugwabiza said, adding that it was possible to unlock potential on the central corridor.
Regional trade routes
The minister’s message was re-emphasised by other speakers from the other countries, including Uganda’s minister of state for transport Stephen Chemoiko Chebrot, who said that more than 95 per cent of Uganda’s trade is currently done via port of Mombasa and that an alternative was badly needed.
“To us, there’s no question about the importance of the central corridor, it’s just prudent to have an alternative just in case of instability, to avoid inconveniences,” he said.
For Rwanda, statistics indicate that 70 per cent of the country’s cargo is handled through Dar es Salaam and her traders have suffered the brunt of inefficiency in trade facilitation and any improvement would eventually ease the cost of doing business on the corridor.
According to Vincent Bakire-Nzoyisaba, Burundi’s transport ministry permanent secretary, public works and equipment, nearly 80 per cent of his country’s international trade is handled through Dar es Salaam.
In eastern DR Congo’s case, Dar es Salaam is the shortest and most convenient port for trade, the other options are expensive and far hence making them very unreliable.
In fact, like the South Sudanese on the Northern Corridor, a key message from DR Congo was that there has been renewed demands for their country to apply for admission into the East African community to cement benefits from regional integration.
Regional observers say that although some of the countries might have frosty geo-political relationships with each other, the central corridor unites them behind a common cause which gives them an opportunity to work together and deepen their diplomatic relations.
Such an analysis bestows the leadership role on Tanzania, as Dar Port’s host country, to be at the vanguard of all efforts to make the central corridor better.
Quick wins
Before he goes into retirement, President Kikwete has a chance to witness baby steps for the Central Corridor scheme in way of quick wins from some of the more ambitious projects lined up.
As a precursor to the ministers’ meeting in Rubavu, senior technocrats from the five countries met in Kigali and identified ten development clusters of which each country was handed two clusters to coordinate; Rwanda was placed at the vanguard of ICT and Aviation clusters.
Under each cluster, countries then identified potential projects that could be implemented from each of the ten clusters. Over 20 projects were proposed and will be presented to the Presidents for approval during their planned summit later this month.
In Rubavu, DR Congo minister of transport who was represented by Justin Kamwanya Kalemuna handed over the chairmanship of CCTTFC inter-state council of ministers to Rwanda’s transport minister Dr Alex Nzahabwanimana.
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tralac’s Daily News selection: 3 August 2015
The selection: Monday, 3 August
Structural transformation is happening, but needs accelerating (UNECA)
Sub-regional perspectives on structural change (UNECA/University of Nottingham)
We provide an assessment of 13 sub-regions in Africa, Asia and Latin America in order to offer deeper and richer insights into the recent dynamics of structural change. Overall, our results suggest that within-sector productivity improvements were the key driver of output per capita growth in most sub-regions. Nonetheless, structural change has also played a critical role in enhancing economic performance since 2002 – mainly through services. Changes in the demographic structure and employment rates have also contributed to the recent performance, albeit to a much lesser extent. Accelerating the pace of structural change – by exploiting existing productivity gaps – will be crucial to sustain current economic growth rates in developing regions.
How President steered SADC ship (The Sunday Mail)
Below are excerpts of Minister Bimha’s reflections on a landmark year: ‘The SADC Industrialisation Strategy and Roadmap is one of the milestones we have achieved during our tenure as SADC Chair. It is something we can be proud of and say, “We managed to do quite a really good job.” However, there was serious resistance from some countries at the beginning. It should be understood that although the regional bloc’s efforts have centred on regional integration, individual countries have, nonetheless, been fronting their own agendas. Because of this, member states were all about protecting their own individual interests. This played out during discussions on the Industrialisation Strategy when senior officials were meeting at the Victoria Falls Summit in August 2014. That stalemate rolled over to the Council of Ministers and eventually, Heads of State and Government.
The bone of contention was precisely on market access versus industrialisation. The argument by resisting countries was that we should finish market access first while Zimbabwe and others insisted industrialisation should take centre stage. This debate took a lot of time. Even when the issue went to the Council of Ministers, there was no consensus. President Mugabe, as Chair, then made an impassioned plea during one closed-door meeting in Victoria Falls.’
East African pharmaceutical manufacturers root for promotion of local production (EAC)
The Chairperson of FEAPM, Mr. Nazeem Mohamed, highlighted the need for harmonization of some of the possible incentive frameworks to promote local pharmaceutical production in the region that include; a uniform preferential margin of 20% for all regionally produced medicines and medical devices in public tenders according to Art. 35 of the Common Market Protocol; no duties on imports of raw and packing material, pharmaceutical manufacturing related equipment as well as spare parts for this equipment acquired by local manufacturers registered in the EAC; and classification or import restrictions for finished pharmaceutical products that can be produced locally, based on regional capacity and quality audits of local manufacturers.
East Africa: Regional industrialists step up fight against illicit trade (New Times)
Manufacturers will be looking to find concrete mechanisms to fight illicit trade and substandard products at the forthcoming East African manufacturing business summit scheduled for next month in Kampala-Uganda. The summit is the first of its kind to be held in the region and is expected to attract over 400 top industrialists from across the EAC. Manufacturers are expected to continue their advocacy for a more business-friendly environment in the region. Lawrence Oketcho, the head of policy and advocacy at the Uganda Manufacturers Association, said the summit will also discuss the implementation of the regional industrial policy and standardisation.
Central Corridor poised to become regional trade hub (New Times)
A renewed sense of urgency to get things done characterised last Friday’s inter-state council meeting of ministers from Rwanda, Burundi, Uganda, Tanzania and DR Congo as they discussed how to make the central corridor, East Africa’s hotbed for trade. The meeting saw ministers approve more than 20 ambitious projects to be jointly implemented by the Central Corridor partners.
Regional trade insurer eyes bigger deals (East African Business Week)
Africa Trade Insurance Agency, a multilateral underwriter wants to expand into the West Africa and other parts of the continent. ATI is currently controlled by 10 sub-Saharan countries. “Talks with ECOWAS to join as a block are ongoing and maybe be concluded this year, while Ethiopia, Mozambique and Zimbabwe are at different stages of processing membership,” Senior Underwriter Albert Rweyemamu said in an interview at a Project and Infrastructure Finance forum Dar es Salaam, Tanzania on Wednesday. “The African market is expanding and competition is bringing transformation from a cash-transaction model to credit models. Our products are increasingly needed because businesses want non-payment cover,” he said.
Mozambique millionaires seen leading growth of Africa’s rich (Club of Mozambique)
Mozambique is expected to add dollar millionaires at the fastest rate in Africa over the next decade followed by Ivory Coast and Zambia as a mix of construction, financial services and property developments boost the ranks of the rich on the world’s poorest continent. The number of people with net assets, excluding their primary residence, of more than $1 million will surge 120% in Mozambique by 2024 to 2,200, Johannesburg-based research company New World Wealth predicted. The number of millionaires in Ivory Coast will jump 109% to 4,800 while those in Zambia will double, the company forecast.
Kenya among top five countries with millionaires in Sub-Saharan Africa (Daily Nation)
South Africa: June 2015 merchandise trade statistics (SARS)
The South African Revenue Service has released trade statistics for June 2015 that recorded a trade surplus of R5.80 billion. This figure includes trade data with Botswana, Lesotho, Namibia and Swaziland. The R5.80 billion surplus is due to exports of R90.28 billion and imports of R84.48 billion. Exports increased from May to June 2015 by R1.45 billion (1.6%) and imports increased from May to June 2015 by R0.59 billion (0.7%). The cumulative deficit for 2015 is R24.65 billion compared to R46.77 billion in 2014. [Download]
SA backs trade pact to clear bottlenecks (Business Day)
The state has set up an inter-departmental working group to consider the implementation of the agreement. It finalised a list of commitments for SA and the terms of reference for the establishment of a national trade facilitation committee. Cabinet approval would be sought for the committee to be set up and for SA’s commitments.
China's Hisense aims for bigger bite of African market (Xinhua)
Hisense, supported by the China-Africa Development Fund, in 2013 invested more than 27.4 million U.S. dollars to set up its plant in South Africa, with a daily output of 1,200 refrigerators and 1,700 TV sets. Located in Atlantis, Western Cape Province, the plant employs over 600 local workers and creates 2,600 jobs in related industries. Li Youbo, General Manager of Hisense South Africa, said the South African plant aims to produce 270,000 TV sets and 210,000 fridges in 2015. The company's made-in-South-Africa productions are exported to 14 African countries, and its market is expanding fast.
SA insurance group eyes 25% more stakes in Kenyan firms (Business Daily)
Zimbabwe: the 2015 Mid Term Fiscal Policy Review is available for download (Ministry of Finance)
Angola: Diamond sales increase by 35% (MacauHub)
Sales of Angola’s diamonds have increased year on year by nearly 35% in the first half of this year, exceeding US$573m and 4.2 million carats, according to the General Tax Administration cited by Angolan daily newspaper Jornal de Angola. Three projects are underway in Angola to increase diamond production in the mid term: Tchiuzo, valued at just over US$200 million with guaranteed annual production of 2.5 million carats, Luaxe, estimated at US$1 billion with annual production of about 10 million carats and Kimangue, which will offer greater knowledge about the existence of diamond resources in Angola for subsequent production.
Re-imagining African agriculture in the face of climate change (UNEP)
Over 1200 experts, policy makers and participants adopted the Nairobi Action Agenda on Ecosystem based Adaptation for food security and formed the Ecosystem Based Adaptation for Food Security Assembly, which re-imagines a system of agriculture for the continent that would be beneficial both economically and environmentally. The formation of EBAFOSA and the adoption of its constitution come as land degradation affects nearly 65% of Africa's land, with some 6 million hectares of productive land lost each year.
Tripartite-linked climate-smart agriculture platform launched (FAO)
Experts from the Eastern Africa sub-region have launched a new climate-smart agriculture platform that will aid in scaling up climate-smart agriculture practices in the region. The Platform will support East African countries to address sub-regional issues related to climate-smart agriculture scale up and will contribute to continental initiatives such as the Africa Climate-Smart Agriculture Alliance and the AU/NEPAD goal of having 25 million farming households in Africa practicing climate-smart agriculture by 2025. This was during a two day workshop in Kampala, Uganda hosted by the FAO Sub-regional Office for Eastern Africa and the Uganda Climate-Smart Agriculture Task Force with support from the COMESA-EAC-SADC.
EAC launches online trading platform to connect farmers with grain buyers (EAC)
The platform, dubbed G-Soko, was developed by a Kenyan-based IT firm Virtual City in partnership with the Eastern Africa Grain Council (EAGC) and the FoodTrade Eastern and Southern Africa Organization. G-Soko, the online trading platform will now enable smallholder farmers in the East Africa to sell their produce at favourable prices.
Zimbabwe: $1,7bn required for agric season (The Herald)
Zimbabwe requires at least $1,7 billion to fund crop and livestock production during the 2015-6 summer cropping season, Finance and Economic Development Minister Patrick Chinamasa has said. This is a significant increase compared to $1,2 billion that was used to fund production during the 2014-15 season.
Nairobi to open fresh talks with South Africa on visa rules row (Business Daily)
Kenya and South Africa are expected to open fresh talks in Nairobi on Monday in a bid to resolve a visa standoff that has threatened their bilateral relations since last year. “We are hopeful of a deal this time round,” said Kenya’s Foreign Affairs secretary Amina Mohamed. “We look to have Kenyans get their visa upon arrival in South Africa or even drop the need for visa for those on short travels as is the case with South Africans.”
Resolve Kenya, South Africa visa row amicably (editorial comment, Business Daily)
Former African presidents advocate visa free movement within the continent (eTN)
Nairobi logistics firm looks South in growth drive (Business Daily)
Nairobi-based logistics company Frontier Services Ltd (FSL) is targeting southern Africa as it continues with its African expansion binge. The Hong Kong Stock Exchange-listed FSL said it has entered into talks to buy a logistics company that will give it access to the new market.
New Chairperson and Bureau for ACP Committee of Ambassadors (ACP)
The Ambassador of the Kingdom of Lesotho H.E Mrs Mpeo Mahase-Moiloa takes over as Chair of the Committee of African, Caribbean and Pacific Ambassadors in Brussels, beginning 1st August 2015 until 31st January 2016. The term will also see a new Bureau supporting the Committee of Ambassadors, comprising one representative from each of the six ACP regions. The Bureau members for the upcoming term include: H.E. Mr. Adani Illo of Niger (West Africa), H.E Mr. Roger Julien Menga of the Republic of Congo (Central Africa); H.E. Mr. Samuel O. Outlule of Botswana (Southern Africa); H.E. Dr Len Ishmael of the Eastern Caribbean States (Caribbean); H.E. Mr. Moses Kouni Mose of the Solomon Islands (Pacific); and the representative for Eastern Africa, yet to be named.
Regional port management association gets new chief (The Citizen)
Dangote opens new cement plant in Zambia, output hits 45m tonnes (ThisDay)
South Africa: New bill takes away foreign investors' leverage (Fin24)
AGOA trade resource centre opens in Accra (USAID)
Nigeria: CBN moves to block illicit financial flows, Naira rebounds (ThisDay)
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Related News
Structural transformation is happening, but needs accelerating
Structural transformation has been one of the most talked about concepts among development practitioners in recent years – especially since the work of Margaret McMillan and Dani Rodrik in 2011. There is little doubt that transforming economic structures is a necessary precondition for economic and social development. But what does this mean in practical terms? And how do we measure it?
All successful developing countries have engineered fundamental shifts in the structure of their economies. By reallocating resources from traditional activities (such as subsistence agriculture) towards higher-productivity sectors (such as manufacturing and modern services), countries were able to rapidly raise living standards. Not only does structural change stimulate economic growth, it can also contribute to a more inclusive and sustained growth pattern.
However, relatively little is known about the pace and pattern of structural change in Africa. New research carried out at ECA’s Sub-Regional Office for Eastern Africa (SRO-EA) tries to fill this knowledge gap. The research provides the most comprehensive assessment of structural change to date. It covers 169 countries, which account for about 99 percent of the world’s output and population. This large sample significantly improves the representativeness of the findings, which is made possible due to a new sectoral employment database produced by the International Labour Organization. In addition, the study focuses on 13 sub-regions in Africa, Asia and Latin America, thus providing much more detailed and robust insights on structural change – especially given the high heterogeneity that is characteristic within these regions.
“There is an enormous amount of discussion about the importance of ‘structural transformation’ and ‘structural change’ for African development. Yet, in reality, we know very little in terms of the rate at which it is occurring. This study represents a significant contribution to understanding this issue better – for the first time we can measure how African sub-regions are performing,” says Andrew Mold, Senior Economist at the SRO-EA.
The empirical results show that structural change has played a critical role in enhancing Africa’s economic performance, especially since the early 2000s. Productivity improvements within sectors still account for the majority of labour productivity growth, but the contribution of structural change – that is, shifts of labour towards more dynamic sectors – is growing in both absolute and relative terms. Although the structure of employment has not changed much in Africa – the labour share of agriculture declined only from 60 to 55 percent between 2002 and 2013 – labour productivity gaps are so large that even small changes can yield sizeable positive effects.
“These results are illustrative of the massive gains that would be possible if African economies were able to further boost employment opportunities in manufacturing and modern services,” says Pedro Martins, Economist at the SRO-EA.
Within the African continent, Eastern Africa has been one of the best performing sub-regions – partly owing to Ethiopia, Tanzania and Uganda. In particular, the reallocation of labour towards the service sectors accounted for most of the gains. Modern (tradable) services – such as transport, information & communications technology, and financial & business activities – have considerable potential in terms of productivity growth and employment generation. However, the manufacturing sector should not be neglected, since there are great benefits in strengthening the linkages between manufacturing and services. For instance, efficient service provision improves the competitiveness of manufacturing, while a stronger manufacturing sector creates greater demand for services.
Despite the encouraging findings of the study, Africa’s labour productivity growth is still lagging behind that of Asia – currently at one-third of the pace. Faster structural change will thus be crucial to sustain and accelerate current economic growth rates. This can be achieved through the implementation of a range of ‘smart’ structural policies – from finance to infrastructure – which aim to change the current incentive structures prevailing in African economies, thus shifting economic resources more rapidly towards the most dynamic sectors.
Related News
South Africa: Merchandise Trade Statistics for June 2015
The South African Revenue Service (SARS) on 31 July released trade statistics for June 2015 that recorded a trade surplus of R5.80 billion. This figure includes trade data with Botswana, Lesotho, Namibia and Swaziland (BLNS).
Including BLNS
The R5.80 billion surplus for June 2015 is due to exports of R90.28 billion and imports of R84.48 billion. Exports increased from May to June 2015 by R1.45 billion (1.6%) and imports increased from May to June 2015 by R0.59 billion (0.7%). The cumulative deficit for 2015 is R24.65 billion compared to R46.77 billion in 2014.
Trade highlights by category
The month-on-month export movements:
R’ million
|
|
|
Section:
|
Including BLNS:
|
|
Vegetable Products
|
+ R1 101
|
+ 24.6%
|
Vehicle & Transport Equipment
|
+ R 959
|
+ 8.6%
|
Machinery & Electronics
|
+ R 560
|
+ 6.9%
|
Chemical Products
|
+ R 261
|
+ 4.8%
|
Mineral Products
|
- R 1 027
|
- 5.3%
|
The month-on-month import movements:
R’ million
|
|
|
Section:
|
Including BLNS:
|
|
Machinery & Electronics
|
+ R1 290
|
+ 6.1%
|
Chemical Products
|
+ R 604
|
+ 7.2%
|
Mineral Products
|
- R2 067
|
- 13.8%
|
Vegetable Products
|
- R 622
|
- 31.5%
|
Vehicle & Transport Equipment
|
- R 573
|
- 6.8%
|
Trade highlights by world zone
The world zone results from May 2015 to June 2015 are given below.
Africa:
Exports: R26 189 million – this is an increase of R 1 597 million from May 2015
Imports: R7 914 million – this is a decrease of R 264 million from May 2015
Trade surplus: R18 275 million
This is an 11.3% increase in comparison to the R16 413 million surplus recorded in May 2015
America:
Exports: R8 249 million – this is a decrease of R 301 million from May 2015
Imports: R9 337 million – this is a decrease of R 483 million from May 2015
Trade deficit: R1 088 million
This is a 14.4% decrease in comparison to the R1 270 million deficit recorded in May 2015
Asia:
Exports: R26 090 million – this is a decrease of R1 129 million from May 2015
Imports: R39 571 million – this is an increase of R1 938 million from May 2015
Trade deficit: R13 480 million
This is a 29.4% increase in comparison to the R10 414 million deficit recorded in May 2015
Europe:
Exports: R21 115 million – this is an increase of R1 245 million from May 2015
Imports: R26 160 million – this is a decrease of R 521 million from May 2015
Trade deficit: R5 045 million
This is a 25.9% decrease in comparison to the R6 812 million deficit recorded in May 2015
Oceania:
Exports: R1 077 million – this is an increase of R 7 million from May 2015
Imports: R1 294 million – this is a decrease of R 79 million from May 2015
Trade deficit: R 217 million
This is a 28.4% decrease compared to the R 304 million deficit recorded in May 2015
Excluding BLNS
The trade data excluding BLNS for June 2015 recorded a trade deficit of R3.47 billion, with exports of R78.43 billion and imports of R81.90 billion. Exports increased from May 2015 to June 2015 by R0.84 billion (1.1%) and imports increased from May 2015 to June 2015 by R0.16 billion (0.2%). The cumulative deficit for 2015 is R76.10 billion compared to R96.37 billion in 2014.
Trade highlights by category
The month-on-month export movements:
R’ million
|
|
|
Section:
|
Excluding BLNS:
|
|
Vegetable Products
|
+ R1 119
|
+ 28.3%
|
Vehicles & Transport Equipment
|
+ R 912
|
+ 9.3%
|
Mineral Products
|
- R1 022
|
- 5.9%
|
Precious Metals & Stones
|
- R 398
|
- 2.6%
|
Wood Pulp & Paper
|
- R 249
|
- 18.4%
|
The month-on-month import movements:
R’ million
|
|
|
Section:
|
Excluding BLNS:
|
|
Machinery & Electronics
|
+ R1 278
|
+ 6.1%
|
Chemical Products
|
+ R 562
|
+ 7.1%
|
Mineral Products
|
- R2 092
|
- 14.0%
|
Vegetable Products
|
- R 632
|
- 32.5%
|
Vehicles & Transport Equipment
|
- R 571
|
- 6.8%
|
Trade highlights by world zone
The world zone results from May 2015 to June 2015 are given below.
Africa:
Exports: R14 342 million – this is an increase of R 988 million from May 2015
Imports: R5 339 million – this is a decrease of R 698 million from May 2015
Trade surplus: R9 003 million
This is a 23.0% increase in comparison to the R7 317 million surplus recorded in May 2015.
BLNS (Only)
Trade statistics with the BLNS for June 2015 recorded a trade surplus of R9.27 billion, with exports of R11.85 billion and imports of R2.58 billion. Exports increased from May 2015 to June 2015 by R0.61 billion (5.4%) and imports increased from May 2015 to June 2015 by R0.43 billion (20.2%). The cumulative surplus for 2015 is R51.45 billion compared to R49.60 billion in 2014.
Trade Highlights by Category
The month-on-month export movements:
R’ million
|
|
|
Section:
|
BLNS:
|
|
Machinery & Electronics
|
+ R 439
|
+ 29.4%
|
Precious Metals & Stones
|
+ R 167
|
+ 22.9%
|
Base Metals
|
+ R 60
|
+ 7.8%
|
Textiles
|
- R 57
|
- 11.9%
|
Miscellaneous Manufactured Articles
|
- R 51
|
- 16.0%
|
The month-on-month import movements:
R’ million | ||
Section: | BLNS: | |
Precious Metals & Stones | + R 217 | + 2140.0% |
Base Metals | + R 69 | + 107.3% |
Textiles | + R 44 | + 15.1% |
Chemical Products | + R 42 | + 9.3% |
Mineral Products | + R 25 | + 63.3% |
Related News
Experts and policymakers re-imagine African agriculture in face of climate change
Over 1,200 experts, policy makers and participants on 31 July 2015 adopted the Nairobi Action Agenda on Ecosystem based Adaptation for food security and formed the Ecosystem Based Adaptation for Food Security Assembly (EBAFOSA), which re-imagines a system of agriculture for the continent that would be beneficial both economically and environmentally.
The formation of EBAFOSA and the adoption of its constitution come as land degradation affects nearly 65 percent of Africa’s land, with some 6 million hectares of productive land lost each year. Part of the Nairobi Action Agenda, the assembly is a result of the ‘Africa Ecosystem Based Adaptation for Food Security (EBAFOSC): Re-imagining Africa Food Security Now and into the Future under a Changing Climate’ conference, the second of its kind.
As the world gears up for the Climate Change conference and the adoption of Sustainable Development Goals (SDGs) later this year, a new approach is urgently needed to build an inclusive food system that is robust enough to create jobs and wealth for all in Africa, including the youth. Ecosystem‐based adaptation (EbA) provides flexible, cost-effective, and broadly applicable alternatives for building robust food systems on fewer inputs while reducing the impacts of climate change.
The participants at the conference converted existing lessons and experiences into common solutions for food security and climate change adaptation on the continent, their objectives being to determine how to protect and restore Africa's ecosystems, achieve food security, identify scalable inclusive business and finance models, put in place policies that incentivize public and private investment in EbA and increase the likelihood of increased investment from oil earnings back into the Earth's ecosystems, which underpin the entire food security system.
The adoption of the Nairobi Action Agenda reflects the importance of the issues on a continent where food imports exceed food exports by 30 percent and the agricultural sector uses over 60 percent of Africa's labour force.
The EBAFOSA replaces the Ecosystem Based Adaptation for Food Security Conference (EBAFOSC) to become the continental body dialoguing and working with the African Union and other partners to help drive the Comprehensive Africa Agriculture Development Programme (CAADP) agenda in line with the Malabo Declaration as well as the proposed SDGs and Agenda 2063.
Delegates from the UN, regional economic communities, non-governmental organizations, Civil Societies, researchers, the private sector and others including UNEP, FAO, AfDB, AFRA, FARA, ACTS, Greenpeace, ActionAid, Global Environmental Facility, Equity Bank and many other partners discussed multiple topics including how 'Green Revolution' technologies can be made more EbA-friendly, how to build resilience under a changing climate, how to use examples from other southern countries, avert post-harvest loss, use EbA policy to shape the implementation of international agendas, subsidy reform, land tenure and tax incentives as well as how to harness EbA-driven agriculture to stimulate job creation, growth, and value additional partnership in Africa.
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Ban hails UN Member States’ agreement on ‘people’s agenda’ to end poverty, promote sustainability
United Nations Secretary-General Ban Ki-moon has praised UN Member States for reaching agreement on the draft outcome document that will constitute the new sustainable development agenda, which will be formally adopted by world leaders in New York this September.
“Transforming our World: The 2030 Agenda for Sustainable Development” encompasses a universal, transformative and integrated agenda that heralds an historic turning point for our world. This agreement results from a truly open, inclusive and transparent process,” the UN chief said in a statement issued on Sunday evening.
Concluding a negotiating process that has spanned more than two years with the unprecedented participation of civil society, the 193 Member States agreed to an ambitious agenda that features 17 new sustainable development goals that aim, by 2030, to eradicate extreme poverty, promote prosperity and people’s well-being, while protecting the environment.
“This is the People’s Agenda, a plan of action for ending poverty in all its dimensions, irreversibly, everywhere, and leaving no one behind. It seeks to ensure peace and prosperity, and forge partnerships with people and planet at the core. The integrated, interlinked and indivisible 17 Sustainable Development Goals are the people’s goals and demonstrate the scale, universality and ambition of this new Agenda”, stated Mr. Ban.
More than 150 world leaders are expected to attend the Sustainable Development Summit at the UN Headquarters in New York, from 25 to 27 September, to formally adopt the outcome document agreed this weekend. “I look forward to joining Heads of States and Government, civil society, faith and business leaders, and peoples around the world for the adoption of this new agenda in the historic Summit in New York,” added the UN chief.
The new sustainable development agenda builds on the success of the eight Millennium Development Goals (MDGs), which helped more than 700 million people to escape poverty over the past 15 years and aimed at an array of issues that included hunger, disease, gender inequality, and access to water and sanitation by 2015.
The broader sustainability agenda go much further, addressing the root causes of poverty and the universal need for development that works for all people. “We are resolved to free the human race within this generation from the tyranny of poverty and want and to heal and secure our planet for the present and for future generations,” states the text.
“We are determined to take the bold and transformative steps which are urgently needed to shift the world onto a sustainable and resilient path. As we embark on this collective journey, we pledge that no one will be left behind,” the Member States continue.
Highlighting poverty eradication as the overarching goal of the new development agenda, the outcome document fully integrates the economic, social and environmental dimensions of sustainable development and calls for action by all countries, poor, rich and middle-income.
The 17 sustainable goals and 169 targets aim at tackling key systemic barriers to sustainable development, such as inequality, unsustainable consumption and production patterns, inadequate infrastructure and lack of decent jobs. The environmental dimension of sustainable development is covered in the goals on oceans and marine resources and on ecosystems and biodiversity, bringing core issues into the goal and target framework.
Member States stressed that the desired transformations will require a departure from “business as usual” and that intensified international cooperation on many fronts will be required. The agenda calls for a revitalized, global partnership for sustainable development, including for multi-stakeholder partnerships, as well as for increased capacity building and better data and statistics to measure sustainable development.
Providing an effective follow-up and review architecture, the agenda will include a Technology Facilitation Mechanism to support the new goals, based on multi-stakeholder collaboration between Member States, civil society, business, the scientific community, and the UN system of agencies. Agreed at the Third International Conference on Financing for Development, which took place last July in Addis-Ababa, the Mechanism will have an inter-agency task team, a forum on science, technology and innovation, and an online platform for collaboration.
The successful outcome of the Addis Conference gave important positive momentum to the last stretch of negotiations on the sustainable development agenda. It is expected that the consensus reached on the outcome document will provide momentum for the negotiations on a new binding climate change treaty to culminate at the Climate Change Conference in Paris, from 30 November to 11 December 2015.
Sustainable Development Goals (SDGs)
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End poverty in all its forms everywhere.
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End hunger, achieve food security and improve nutrition and promote sustainable agriculture.
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Ensure healthy lives and promote the well-being for all at all ages.
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Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.
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Achieve gender equality and empower all women and girls.
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Ensure availability and sustainable management of water and sanitation for all.
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Ensure access to affordable, reliable, sustainable and modern energy for all.
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Promote sustained and inclusive economic growth, full and productive employment and decent work for all.
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Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation.
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Reduce inequality within and among countries.
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Make cities and human settlements inclusive, safe, resilient and sustainable.
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Ensure sustainable consumption and production patterns.
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Take urgent action to combat climate change and its impacts.
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Conserve and sustainably use the oceans, seas and marine resources for sustainable development.
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Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.
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Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels.
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Strengthen the means of implementation and revitalise the global partnership for sustainable development.
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EAC region launches online trading platform to connect farmers with grain buyers
A platform to connect farmers to grain buyers in the region was launched on 31st July 2015 in Nairobi, Kenya. The platform, dubbed G-Soko, was developed by a Kenyan-based IT firm Virtual City in partnership with the Eastern Africa Grain Council (EAGC) and the FoodTrade Eastern and Southern Africa Organization. G-Soko, the online trading platform will now enable Smallholder farmers in the East Africa to sell their produce at favourable prices.
Speaking at the launch of the platform, the Secretary General of the East African Community, Amb. Dr. Richard Sezibera commended EAGC for partnering with the Secretariat to implement the EAC Food Security Action Plan, which is the EAC strategy to achieve food security in the region.
The Secretary General, who was represented by the Director for Productive Sectors Mr. Jean Baptiste Havugimana, also hailed the EAGC for the online initiative and pledged “EAC continued support in automating agricultural crops trading systems and processes to reduce commercialisation cost and all related challenges and bridge the gap between farmers, traders and consumers for increased food security in the region”.
Speaking at the same occasion, the Executive Director of EAGC, Mr. Gerald Masila disclosed that G-Soko was part of a five-year trade enhancement and promotion programme in the region. He said linking rural food production zones in East Africa to urban consumption centres requires a well-functioning regional market and that by adhering to the system, farmers in the region will, among others, be able to access credit while waiting for prices to increase through pledging the electronic warehouse receipt with the banks and agro-dealers.
The farmers will also benefit from reduced post-harvest losses through access to professional storage, cleaning, drying and will benefit from improved prices discovery since many of them rely on farm-gate prices that deliver cash at lower prices.As for Millers, G-Soko system guarantees availability of quality stocks; standardised and proven grading thus reducing need to carry out sampling to check quality.
The Director of Agriculture in the Ministry of Agriculture of the Republic of Kenya commended the initiative SAYING “We have seen very positive changes in the breadth and depth of the EAC integration and this is encouraging as we all hope to reap the benefits of regional integration”. The G-Soko is now operational in two of the EAC Partner States; Uganda and Kenya, and arrangements are underway to extend the system to Tanzania and Rwanda before the Grains Farmers Summit scheduled to take place in Rwanda in early October 2015.
Present at the G-Soko launch were, among others, government officials from the Republic of Kenya, Development Partners, the Director of FoodTrade for East and Southern Africa, Representatives of Farmers Associations and certified grains warehouses from all the Partner States except Burundi.
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Nairobi to open fresh talks with South Africa on visa rules row
Kenya and South Africa are expected to open fresh talks in Nairobi on Monday in a bid to resolve a visa standoff that has threatened their bilateral relations since last year.
Top on the agenda of South Africa’s immigration officials expected in Nairobi between Monday and Wednesday is review of travel rules that could see Kenyans start getting free passes upon arrival in Johannesburg.
Last year, South Africa imposed tough rules on Kenyans seeking to visit the country, besides a service charge of Sh5,850 for applications, sparking an uproar.
Currently, South Africans visiting Kenya do not require a visa if they are on transit or plan to stay for less than 30 days.
In the past, Kenyans would get free visa if they were staying for less than 30 days in South Africa but required no visa if they were transiting through South African airports.
Visa processing
“We are hopeful of a deal this time round,” said Kenya’s Foreign Affairs secretary Amina Mohamed. “We look to have Kenyans get their visa upon arrival in South Africa or even drop the need for visa for those on short travels as is the case with South Africans.”
Previous talks have yielded little.
Kenyans travelling to South Africa also have to wait for at least seven working days for visa processing.
Those making visits of more than 30 days have to pay an additional visa fee of Sh4,800 on top of the Sh5,850 service charge.
If the two countries fail to agree on the pact, Kenya’s Immigration Department will from September 1 make it mandatory for South Africans, like other foreigners, to apply for visa online at a fee and wait for at least two days to get their travel documents.
Kenya’s new immigration rules require all visiting foreigners to register and apply for visa on the eCitizen portal – a government website – from September 1.
Presently, foreigners, excluding South Africans who do not need visas to visit Kenya, get their visas upon arrival in the country.
The other group that is excluded from having visas to visit Kenya are nationalities of Tanzania, Uganda and Rwanda under the East African Community’s common market protocol.
Kenyan officials now seem emboldened by the new visa requirement that could be a potent bargaining chip for better terms with South Africa.
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COMESA Annual Research Forum to be held in Kampala, Uganda
The COMESA Council of Ministers during its 34th meeting held in Addis Ababa in March 2015, directed the Secretariat to convene a meeting of the policy think tanks and the private sector in the region to brief them on the frontier issues for research necessary to support regional integration.
The Council observed that policy research can directly support regional integration by addressing practical challenges and directed COMESA to embrace the Triple Helix Concept of collaboration between the Government, private sector and academia in implementing the research programme.
As a response to the directive, the COMESA-ACBF Funded Project on Capacity Building on Economic and Trade Policy Analysis and Research called for research papers on pertinent regional integration issues which have been peer reviewed and are being finalized by the authors. These papers will be presented during the Annual Research Forum organized and funded by the project on 10-14 August 2015 in Kampala, Uganda.
The main objective of the research forum is to strengthen the participation of the government, leading policy research think tanks, academia and the private sector in regional integration agenda. Specifically, the forum will create a COMESA forum for sharing and discussing regional integration research findings, the COMESA regional university will be discussed by various participating universities, Research areas emanating from the COMESA Summit of March 2015 will be shared and discussed and further areas of research which will be the focus of 2016 will be identified.
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tralac’s Daily News selection: 31 July 2015
The selection: Friday, 31 July
SA's June trade data posted by SARS
WTO updates its Statistics Database with revised 2014 data
The WTO updated on 30 July 2015 its Statistics Database, which now includes revised data for 2014 on global exports and imports of goods and on trade in commercial services. The data are available by country and region. More extensive data on trade in goods, with further breakdowns, will be made available by 1 September. In addition, the WTO has issued statistics on trade in commercial services for the first quarter of 2015, produced in cooperation with the United Nations Conference on Trade and Development (UNCTAD). These show that world exports and imports of commercial services decreased by 4.7 per cent in Q1 (measured in current US dollars) compared with the same quarter of the previous year. The drop is mostly due to the depreciation of the euro against the US dollar.
Kenya industry safeguards place it on a collision path with WTO over free trade (Business Daily)
Kenya faces a dilemma over continued protection of its manufacturers amid risk of reprisals from other World Trade Organisation members aggrieved by its actions. The global body has in its latest audit report for July 2015 listed Kenya among countries that are using tariff barriers to shield domestic producers against external competition and warned that such measures could restrict trade and weaken the prospects for full recovery from the global recession.
Africa50, a step change for infrastructure financing and development (AfDB)
Africa50, the new and innovative infrastructure investment platform promoted by the AfDB held its Constitutive General Assembly on the 29th of July 2015 in Casablanca, Morocco. Twenty African countries and the AfDB have subscribed for an initial aggregate amount of USD 830m in share capital. These founding African countries are Benin, Cameroon, Congo, Djibouti, Egypt, Gabon, Ghana, Côte d’Ivoire, Madagascar, Malawi, Mali, Mauritania, Morocco, Nigeria, Niger, Senegal, Sierra Leone, Sudan, The Gambia and Togo. While this first closing was available only to African countries, it is anticipated that the second and subsequent closings will be available not only to African countries that are yet to invest in Africa50, but also non-sovereign investors both in Africa and outside Africa. The second closing is expected before the end of 2015.
Building democratic developmental states for economic transformation in Southern Africa: communique
The main objective of the conference was to explore how Southern African countries can seek to promote the building of democratic developmental states necessary for economic transformation in the region. The conference made the following recommendations:
New Deal Somali Compact: High-Level Partnership Forum communique
We are encouraged by the effort made by the FGS in consultation with the Interim Regional Administrations to initiate work on a long-term development framework (Vision 2035) to positively shape the future socioeconomic transformation of Somalia. We acknowledge that this long term framework must be linked to strategies such as the African Union (AU) Agenda 2063, and reflect the global Sustainable Development Goals.
Zimbabwe's MTBS was presented yesterday: selected links
Bans, duty hike on used imports (The Herald)
Government has banned the importation of second-hand clothes and shoes with effect from September 1 this year, as part of economy-wide measures to facilitate recovery of local industry. The products have been removed from the general import licence, with future importations now subject to seizure and destruction. Presenting the 2015 Mid-Term Fiscal Policy Review Statement, that came two years to the 2013 harmonised elections that ushered in the incumbent Government, Finance Minister Patrick Chinamasa said the move was meant to reduce competition between imports and local products, a factor that has adversely affected local industry.
Economy expected to grow 1,5% (The Herald)
Job cuts for civil servants (NewsDay)
Zimbabwe to cut royalty fees levied on small gold mines – finmin (Mining Weekly)
South Africa: resources profiled in latest Agbiz eNewsletter
BFAP Baseline Agricultural Outlook for 2015-2024
Standard Bank presentation at last week's BUSA Economic Policy forum
Debt situation 'tight', but controlled, says Bank of Mozambique
At one of the Bank’s regular briefings on the country’s economic situation, Sousa reacted to the recent downgrade in Mozambique’s credit rating, by the ratings agency Standard and Poor’s. Sousa stressed that the government is not in arrears with any of its creditors. In the first quarter of this year, he added, the Mozambican state spent 32.3 million dollars in servicing its debts. While Standard and Poor’s saw the attempt to renegotiate the EMATUM debt as a sign of risk, Sousa thought it was perfectly normal. “It’s normal to renegotiate debts, it’s not a crime”, he said. “It’s normal to have a calm form of debt servicing. And there are no arrears. What does exist are perceptions which might perhaps create constraints and delays in the future”.
Mozambique News Agency: AIM Reports, 30 July
Chinese govt to build high speed railway for Tanzania (IPPMedia)
The Chinese government plans to construct in the future high speed railway in Tanzania and other priority business partner countries as a way of bolstering economic relations with them. The plan was revealed in Beijing recently by the Director-General of China Centre for Urban Development, Li Tie. Lie noted that the project would be part of China’s Belt and Road Initiative that is championed by China’s President Xi Jinping in October this year. Meanwhile, the Chinese minister for foreign affairs has underscored that the establishment of Chinese companies in Tanzania has generated many jobs since 2005. According to Li, there were over 500 Chinese companies operating in Tanzania in 2014 with USD800 investment. He said the companies have provided direct employment to 150,000 Tanzanians.
Technology boosts TAZARA collections (Daily News)
EA air transport in fresh re-organisation amid exits and entries by major airlines (The East African)
East Africa’s air travel faces another round of re-organisation as two major airlines end direct flights from the region to key destinations in Europe in October. In October, British Airways will terminate direct flights between Entebbe, Uganda, and the UK’s main Heathrow airport while Brussels Airlines will stop direct flights from Nairobi to the Belgian capital Brussels.
Kenya: Tourism hits 7-year low ahead of drive (Business Daily)
UNGA urges action to tackle illegal wildlife trade (UN News Centre)
Adopting a consensus text resolution, the 193-Member body encouraged Governments to adopt effective measures to prevent and counter the serious problem of crimes such as illicit trafficking in wildlife and wildlife products, including flora and fauna and poaching. The resolution suggests “strengthening the legislation necessary for the prevention, investigation and prosecution of such illegal trade, as well as strengthening enforcement and criminal justice responses, acknowledging that the International Consortium on Combating Wildlife Crime can provide valuable technical assistance in this regard.” [Download]
Momentum gathers for international agreement to combat rogue fishing (FAO)
A growing number of countries are ratifying an international agreement to combat illegal fishing, fueling interest in how best to implement the instrument. Illegal, unreported and unregulated (IUU) fishing is estimated to strip between $10bn and $23bn from the global economy, and their impacts undermine the way fish stocks are managed to make it a double concern around the world. To help tackle the problem, FAO brokered the adoption in 2009 by its Member countries of the Agreement on Port State Measures to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing. The agreement comes into force when 25 countries have deposited their instrument of ratification, known as acceptance of accession; so far, 12 countries have done so, the latest being Iceland in June. Two more states will soon join them.
Ghana’s Sankofa gas project: WB approves guarantees
The World Bank’s Board of Directors approved a record investment of $700 million in guarantees for Ghana’s Sankofa Gas Project - a transformational project that will help address the country’s serious energy shortages by developing new sources of clean and affordable natural gas for domestic power generation. [What is the Sankofa Gas Project?]
Women’s livelihood strategies in Africa: new findings from a qualitative study in rural Zambia (World Bank Blogs)
Botswana: Agric production on downward trajectory (Mmegi)
This week in the news
Catch up on tralac’s daily news selections for the past week:
The selection: Thursday, 30 July 2015
The selection: Wednesday, 29 July 2015
The selection: Tuesday, 28 July 2015
The selection: Monday, 27 July 2015
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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)
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UN Summit to adopt the Post-2015 Development Agenda: Intergovernmental negotiations on the outcome document produce text for adoption
The United Nations is in the process of defining a post-2015 development agenda. This agenda will be launched at a Summit in New York in September 2015, currently being elaborated through informal consultations of the UN General Assembly. The President of the General Assembly appointed two Co-facilitators to lead those informal consultations.
The process of arriving at the post-2015 development agenda is Member State-led with broad participation from Major Groups and other civil society stakeholders.
There have been numerous inputs to the agenda, notably a set of Sustainable Development Goals (SDGs) proposed by an open working group of the General Assembly, the report of an intergovernmental committee of experts on sustainable development financing, GA dialogues on technology facilitation and many others.
The General Assembly called upon the Secretary-General to synthesize the full range of inputs and to present a synthesis report before the end of 2014 as a contribution to the intergovernmental negotiations in the lead up to the Summit.
The United Nations has played a facilitating role in the global conversation on the post 2015 development agenda and supported broad consultations. It also has the responsibility of supporting Member States by providing evidence-based inputs, analytical thinking and field experience.
Intergovernmental negotiations on the outcome document: 20-31 July 2015
Side Events organized by Member States, major groups and other stakeholders, UN system and other intergovernmental organizations were scheduled to be held in the margins of the intergovernmental negotiations on the Post-2015 Development Agenda in New York on 20-24 July and 27-31 July 2015. This two-week span of discussions will be the seventh and eighth in the series of negotiations leading to the anticipated adoption of the post-2015 development agenda.
A revised draft of the outcome document for the UN Summit to adopt the Post-2015 Development Agenda, Transforming Our World: The 2030 Agenda for Global Action, was submitted by the co-facilitators on 26 July 2015. This document, envisaged as the draft for adoption by Heads of State and Government, takes account of the very wide range of views expressed on the draft outcome document circulated on 8 July.
A draft text for adoption was published on 30 July 2015. This was subsequently replaced by the finalised text for adoption, published on 1 August 2015.
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From evidence to policy – Innovations in shaping reforms in Africa
Addressing global development issues often requires effective policy reforms. Some of these reforms are justified from a fiscal and macroeconomic perspective, but may have unintended impacts on different groups of the population, particularly the poor and most vulnerable. Reforms have costs and benefits which are usually distributed unequally across different groups of the population.
Poverty and Social Impact Analysis (PSIA) is a versatile approach to assess the distributional and social impacts of policy reforms on different groups, with emphasis on the poor and vulnerable. This analysis offers insights into different policy options, supports the decision making process, can help mitigate potential negative impacts and identify pathways to more inclusive reforms.
This four-day learning event, from 21-24 July 2015 in Cape Town, brought together policymakers, academics, civil society representatives, and development partners to discuss innovations in the use of evidence to inform policy design in Africa.
Presentations from the event are available on the PSIA Online Community platform at the following links: