1. No category

TRADE-WATCH
AFRICA
ISSUE 42 | NOVEMBER 2014
CMA CGM / DELMAS UPGRADES
ASIA - EAST AFRICA SERVICES
Full Story On Page 03
Nigeria: NPA Completes Due
Diligence On Lekki Port
18
Tanzania: Bagamoyo Port
Construction To Start In 2015
28
Zimbabwe: EU Lifts Trade
Sanctions
31
TRADE-WATCH
AFRICA
ISSUE 42 | NOVEMBER 2014
Contents
03 /
African Group News
15 /
Western Africa
09 /
Events Diary & News Briefs
21 /
Eastern Africa
11 /
Pan Africa
29 /
Southern Africa
Top Stories
03
CMA CGM / DELMAS Upgrades
Asia - East Africa Services
18
Nigeria: NPA Completes Due
Diligence On Lekki Deep Seaport
28
Tanzania: Bagamoyo Port
Construction To Start In 2015
31
Zimbabwe: EU Lifts Trade
Sanctions
1
THE TRADE & TRANSPORT REPORT
Brought to you by CMA CGM / DELMAS Marketing
Website: www.delmas.com
Email: [email protected]
Tweet: @DelmasWeDeliver
Rachel Bennett
Dominic Rawle
CMA CGM Marseille Head Office
4, Quai d’Arenc 13235 Marseille cedex 02 France
Tel : +33 (0)4 88 91 90 00
www.cmacgm.com
Disclaimer of Liability
CMA CGM / DELMAS make every effort to provide and maintain usable,
and timely information in this report. No responsibility is accepted for
the accuracy, completeness, or relevance to the user’s purpose, of
the information. Accordingly Delmas denies any liability for any direct,
indirect or consequential loss or damage suffered by any person as a
result of relying on any published information. Conclusions drawn from,
or actions undertaken on the basis of, such data and information are the
sole responsibility of the reader.
News Headlines By Region
Western Africa
Angola: Trade With Canada Reaches US$2 Billion
Cameroon: Kribi Port Management Tender Finalists / Decongestion Strategies Drafted For Douala
Port
Gabon: Used Vehicles Over 3 Years Old
Ghana: Maritime Trade Slows By 21% / Transport Minister Satisfied With Work On Tema Port
Expansion / Takoradi Port Dredging Begins
Morocco: Expands Cooperation With China
Nigeria: Trade With China Hits N1.7 Trillion In 7-Months / Indonesia Targets US$5 Billion Trade Volume
me / NPA
Completes Due Diligence On Lekki Deep Seaport / Channel Dredging Will Open Calabar Seaport / New Port Order
Launched By NSC / Nigeria To Control Road Load Weight
Togo: Lomé Container Terminal Commissioned
Eastern Africa
Regional: Comesa-EAC-SADC Tripartite FTA To Be Launched Mid-December 2014
Ethiopia: Signs Agreements With Ireland
Kenya: Imports From The U.S. Triple / UK Trade Body Concludes Kenya Mission / Cargo Clearance Set to
Take Shorter Time / Kilindini To Get 15 Cranes / South Africa, Kenya Sign Maritime Integration Strategy
Mozambique: Nacala Port Expansion Works On Track / Beira Port Cargo To Grow 15%
Somalia: Mogadishu Port Sees US$1.5 Million Revenue Within A Month
Tanzania: Agents Back New Regulations On Customs Clearance / Sino-Tanzania Relations: 3rd ChinaTanzania Investment Forum / Vietnam Expands Co-Operation / China-Funded Bagamoyo Port Construction
To Start In 2015
Southern Africa
Regional: SADC Sets Fund To Boost Infrastructure
Namibia: Signs Trade Agreement With Turkey / TransNamib Appoints Manager For Turnaround Project
South Africa: Trade Deficit Narrows To R2.91bn In September / Trade Fairs Address China-SA Trade
Imbalances / Mexico Sign Cooperation Agreements / Denmark To Improve Trade / DTI Attend Cuban
Trade Fair / Two Terex® RMG Cranes For Durban / Richards Bay Bulk Terminal Exceeds September
Target / Port Authority Needs More Autonomy, Lean Structure
Zimbabwe: EU Lifts Trade Sanctions
2
CMA CGM / DELMAS
AFRICAN GROUP NEWS
Asia - East Africa Service Upgrade
Following our core strategy of service development and improvement, from the end of November 2014, CMA CGM / DELMAS
will enhance its Asia-East Africa services from 2 to 3 dedicated weekly services. The move focuses on serving the expanding and
strategic markets of Kenya, Tanzania and Austral Africa. Our Mozambique services remain unchanged with the New Mozex.
NEW: ASEA KENYA Service
A direct weekly service Asia to Mombasa which operates 5 vessels of 2800 TEU. The first voyage will start on 26 November 2014
with M/V Cape Maas Salients.
Advantages
- Improved transit time to Kenya by 3 days
- Smooth weekly transhipment management to Somalia through Mombasa
- Efficient inland solutions to domestic Kenya, Uganda, Rwanda, South Sudan
- Full coverage of Asian ports with efficient transhipment management in South East Asia
Rotation: Port Kelang – Tanjung Pelepas – Singapore - Colombo - Mombasa - Colombo East Bound – Port Kelang
NEW: ASEA TANZANIA Service
A weekly direct service focused on Asia-Tanzania and the Indian Ocean using a fleet of six 2800 TEU vessels. The first voyage will
start on 23 November 2014 with M/V Pacific Voyager ASEA Tanzania.
Advantages
- Exhaustive coverage of Tanzania with Dar Es Salaam, Zanzibar and Tanga in relay
- Shorten transit time to Dar Es Salaam by 8 days
- Fortnightly calls to Male and Port Victoria
- Reaching the heart of DRC, Malawi, Burundi, Zambia, Rwanda via Dar Es Salaam
Rotation: Singapore - Tanjung Pelepas - Port Kelang - Colombo - Male [DELMAS only] - Port Victoria - Dar Es Salaam Colombo - Singapore
3
Asia - East Africa Service Upgrade
UNCHANGED: New Mozex Service
A fix day weekly direct service between Port Kelang, Indian Ocean and all main Mozambique ports.
Advantages
- Full coverage of Mozambican ports with excellent transit times
- Wide range of connections to & from Far East
- Efficient connection with dedicated Rhino Express feeder serving Quelimane and Pemba
- Inland service to African landlocked countries via Maputo, Beira or Nacala corridors: Malawi, Zambia, Zimbabwe, DRC &
North RSA
Rotation: Port Kelang, Tanjung Pelepas, Pointe Des Galets, Tamatave, Maputo, Beira, Nacala, Port Louis, Port Kelang
http://www.delmas.com/productsservices/line-services/flyer/MOZDEL
Intermodal Solutions
We offer a Through Bill of Lading [TBL] service to landlocked African countries with be-spoke land transportation solutions
through the East Africa gateways of Mombasa, Dar Es Salaam, Nacala, Beira and Maputo.
Connections are available to 8-countries: Kenya [domestic], Uganda, Zambia, Zimbabwe, Malawi, Rwanda, South Sudan,
Burundi and Democratic Republic of Congo [DRC].
We have a team of intermodal specialists on standby located in every key market in Africa to ensure smooth operations.
For more information on inland services please see our CTBL page: http://www.delmas.com/products-services/our-services/ctbl
4
CMA CGM / DELMAS
AFRICAN GROUP NEWS
PC Hebdo: New Direct Call In Tema
Transit Times
CMA CGM / DELMAS has improved its PC Hebdo service with a direct link from North Europe to
Tema port in Ghana. The service offers improved transit times.
Rotation: Dunkirk, Antwerp, Le Havre, Montoir, Tangiers, Dakar, Abidjan, Tema, Tin Can, Abidjan,
Dakar, Tangiers, Dunkirk
Tema
Hamburg
26 days
Antwerp
23 days
Le Havre
20 days
http://www.delmas.com/products-services/
line-services/flyer/PCHEBDO
France - West Africa Service Improved
CMA CGM / DELMAS has improved its service from the port of
Rouen, France to West Africa. From the beginning of November
cargoes from Rouen to West Africa will be loaded on our Dunkrus
Express service with full coverage of all West African ports via our
hub in Tangiers.
Advantages
- Direct, fast and reliable service between Rouen and Tangiers
- Relay in Tangiers with our Europe-West Africa Lines
- Efficiency of our teams at Tangiers hub
- Transhipments reduced to one instead of two to West African
destinations
- Shorter transit times
http://www.delmas.com/products-services/
line-services/flyer/DUNKRUS
5
Transit Times From Rouen
Rouen
Rouen
Abidjan
20 days
Namibe
33 days
Cotonou
21 days
Onne
35 days
Dakar
13 days
Pointe Noire
25 days
Douala
39 days
Port Gentil
29 days
Libreville
31 days
Tema
24 days
Lome
39 days
Tin Can Lagos
26 days
Luanda
35 days
Casa Europe Service Configuration Improvement
New Calls In Vigo And Tangier
Starting early November, the Casa Europe line will call in two new ports namely Vigo and Tangier. The service offers very
competitive transit times from Casablanca to Rotterdam and Antwerp [respectively 5 and 6 days] with relays on the Baltic Sea
and Canada particularly for Morocco reefers.
http://www.cma-cgm.com/productsservices/line-services/flyer/CASA4
Dunkrus Express Launched For 2014-2015 Moroccan
Citrus / Vegetables To North Europe
Coinciding with the Moroccan citrus and vegetables season CMA CGM will run the Dunkrus Express service in addition to
the Casablanca Europe Service. Starting October 17 in Casablanca, Dunkrus Express will connect the 3 major Moroccan
ports to Portsmouth, Dunkirk, Rotterdam, Antwerp and Rouen and will offer many competitive advantages including
improved transit times.
6
CMA CGM / DELMAS
AFRICAN GROUP NEWS
Cote D’Ivoire
French National Assembly President Meets CMA CGM Group
On a recent visit to Cote d’Ivoire, Claude Bartolone, President of the
French National Assembly, met Pierre Héry, General Manager of CMA
CGM and Delmas Ivory Coast. Héry presented the activities of the
Group as well as future developments.
During the visit, the Ambassador of France organized a visit to the
port with French CEOs and management of the Autonomous Port
of Abidjan. Noting that the CMA CGM Group has a 25% stake in the
management of the Ro-Ro Terminal of Abidjan.
Meanwhile our logistics subsidiary, CMA CGM Transit Transport,
ensures through Bill of Lading to Mali, Burkina Faso and deliveries and
positioning of containers.
Cameroon
From left to right: Mr. Claude BARTOLONE, President of the French
National Assembly, Mr. Yacouba HIEN SIE, GM Abidjan Port, Mr.
Georges SERRE, French Ambassador in Ivory Coast and Mr. Pierre
Héry, GM CMA CGM and Delmas Ivory Coast
CMA CGM Open New 3CTC Logistics Platform
To further facilitate land operations in Cameroon, the CMA CGM Group
opened on October 27, the CMA CGM Cameroon Container Terminal [3CTC],
a logistics platform covering 2-ha. The facility is completely secured and
strategically located 2 km away from the port of Douala. With 18 committed
and experienced agents in African logistics and adapted equipment [2 reach
stackers, 1 empty handler, 2 forklifts], 3CTC offers high performance land
solutions. The launch compliments the ever expanding Group facilities offered
throughout the region. It follows the opening earlier this year of the Dakar
Container Terminal [TCD2].
“
In perfect synergy with Delmas Cameroon,
the 3CTC team is ready to address the
various challenges and to position itself as
an indispensable partner, expert in land area
logistic operations.
”
Patrick Guyot
General Manager, CMA CGM Cameroon Container Terminal
7
CMA CGM Cameroun Terminal Container [3CTC] team
CMA CGM / DELMAS
WEBSITE
New Nigeria Agency Area
Our local agency in Nigeria, CMA CGM DELMAS Nigeria Ltd, has launched a new local web area to keep pace with the
continuously evolving requirements of its customers. The area offers useful information such as:
-
Vessel Rotation Number
Empty Return Status
Customer Refund Application Status
Local Release Documents Required
Schedules
For Delmas Nigeria:
http://www.delmas.com/local/nigeria
For CMA CGM Nigeria:
http://www.cma-cgm.com/local/nigeria
8
AFRICAN SHIPPING
EVENTS DIARY
November 2014
16-17
Nigeria Com (Lagos, Nigeria)
http://nigeria.comworldseries.com/
17-19
9th African Economic Conference (Addis Ababa, Ethiopia)
http://www.uneca.org/aec2014
18-19
ARA Storage and Distribution Forum (Abidjan, Côte d’Ivoire)
http://www.afrra.org/uk/event/storage-and-distribution-forum
19-21
5th Africa Public Private Partnership Conference (Abidjan, Ivory Coast)
www.africappp.com
29-30
15th Francophonie Summit (Dakar, Senegal)
December 2014
1-5
Maritime Week Africa 2014 (Cape Town, South Africa)
http://citiesandports2014.aivp.org/en
January 2015
29-30
9th Indian Ocean Ports & Logistics (Maputo, Mozambique)
http://www.transportevents.com/EventsDetails.aspx?EventID=EVE115
March 2015
19-21
ZAMBIAWATER: Zambia Water Infrastructure (Lusaka, Zambia)
www.zambiawater.com
26-27
13th Intermodal Africa North 2015 (Lagos, Nigeria)
www.zambiawater.com
June 2015
18-19
West Africa Anti-Corruption Summit (Accra, Ghana)
http://www.c5-online.com/2015/624/west-africa-anti-corruption-summit
9
AFRICAN PROJECT
BRIEFS
Western Africa
Eastern & Southern Africa
ANGOLA
- Brazilian Odebrecht Angola has won a contract worth
US$268.2 million for the 3rd phase construction of a water
supply system in Benguela province.
- Indonesia’s state energy firm Pertamina is expected to sign
a deal to import crude oil from Angola’s state energy firm
Sonangol.
ETHIOPIA
- A potential Egyptian-Ethiopian industrial zone is being studied
with targeted trade volume between both countries is over $5b.
BURKINA FASO
- West African Resources has secured a 2-year $5-million
convertible loan facility from Macquarie Bank to complete its
feasibility study of the Mankarga 5 heap leach gold project.
First production expected by Q4 2015.
CAPE VERDE
- Port management company Enapor should be privatised by
mid-2015 according to Cabo Verde’s Minister of Infrastructure.
CONGO
- Italian Eni has made a new important oil discovery in the
Minsala Marine exploration prospect located in the Marine XII
Block offshore Congo-Brazzaville with the potential of 1 billion
barrels.
GABON
- Ophir Energy is expanding its West African footprint via its
latest acquisition deal of an additional 2-oil blocks offshore
Gabon buying 100% stakes in the Nkouere and Nkawa blocks,
taking its total acreage in Gabon to over 15,000 km2 across
6-licenses.
GHANA
- Canadian Windiga signed an agreement for a 20-year power
purchase agreement with the Electricity Company of Ghana for
the construction and operation of a 20MW solar power plant in
the northern community of Tilli.
GUINEA
- President Conde has replaced his security and energy
ministers: Mahmoudou Cisse, a judge, was named minister
of security and civil protection. Cheikh Taliby Sylla, a former
project director for the Chinese-built Kaleta dam, was named
minister of energy and hydro-electric power.
NIGERIA
- Phone tower group IHS has raised $2b in equity and $600m
in debt to finance infrastructure spending. IHS predict Africa
could need 200,000-300,000 mobile towers over the next
10 years to meet future broadband demand, including up to
40,000 in Nigeria alone.
TOGO
- Manganese developer Ferrex announced the environmental
permit for its Nayega manganese project, in N.Togo, has
been granted. Ferrex will now focus on finalising the definitive
feasibility study and securing the mining permit before the end
of Q4.
KENYA
- National Cement is planning to construct a new coal-fired
power plant in Kajiado to power it’s mining and clinker
manufacturing unit that is also planned. The Lamu coal plant
project will cost US$2bn.
MADAGASCAR
- Lemur Resources has started discussions with the newly
created Ministry of Strategic Resources, the Ministry of Energy
and State-owned electricity company Jiro Sy Rano Malagasy
over the proposed Imaloto independent power producer
licence which would give Lemur the right to build, own and
operate a coal-fired power plant comprising 3x15 MW units
within 10km of its Imaloto project.
MOZAMBIQUE
- India’s International Coal Ventures Limited will invest $500m to
build infrastructure and logistics to support mining at its newly
acquired coal blocks in Mozambique.
- The foundation stone for the construction of the US$466m
Moamba-Major dam on the Incomati River and related works
was laid Friday at a ceremony attended by the President.
TANZANIA
- Nigeria’s Dangote Cement has applied for a licence from
EWURA to build a 75 MW coal-fired plant in Tanzania that
would power a $500m cement factory now under construction.
- Kibo Mining has completed the technical work for Phase 1,
Stage 1 of the definitive mining feasibility study (DMFS) for its
Rukwa coal-to-power project (RCPP) ahead of schedule. It
is now awaiting the final technical report expected by end of
November.
- The Tanzanian Ministry of Energy and Minerals (MEM) has
published an Electricity Supply Industry Reform Strategy and
Roadmap for 2014 to 2025, which aims to implement sweeping
structural reforms that would streamline project finance
structures and liberalise the energy sector - likely to involve
investment of $11.4-billion.
SOUTH AFRICA
- Wescoal has secured R200-million in funding from Investec
Bank to be used primarily for the commissioning of its
Elandspruit colliery.
ZIMBABWE
- Indian industrial engineering firm Jaguar Overseas Limited has
been awarded a tender to rehabilitate Harare Thermal Power
station. It will undertake engineering, procurement, supply and
installation works to US$76 million.
- Caledonia Mining’s 49%-owned Blanket mine is to see
investment of $50m between 2015-17 & $20m between 201820 to improve underground infrastructure & logistics.
10
PAN AFRICA
TRANSPORT / TRADE
CHANGING THE GAME FOR AFRICA
Africa’s Transformation Through Africa50
The 9th African Development Forum [ADF] opened
on October 13th in Marrakech with the call by
the African Development Bank Group [AfDB]
for stronger emphasis on infrastructure and for
ownership of the Africa50 Fund, a profit-driven
entity seeking to provide risk-adjusted returns to its
investors.
Many countries in the region are hungry for
infrastructure investments, and now is the best
time for African governments and development
partners to focus on fast-tracking resources.
Infrastructure is vital for transformation.
Africa currently only invests 4% of its GDP in
infrastructure, compared with for example China’s
14%.
The AfDB Group has made every effort to
help bridge this infrastructure gap. The annual
infrastructure financing need is about US$95 billion
of which only US$45 billion is currently invested
each year, from African governments, development
finance institutions and the private sector. Thus Africa’s transformation largely depends on how well countries mobilize inputs
from a range of stakeholders, promote infrastructure through new vehicles such as the Africa50 Fund, invest in their human
capital, and foster good governance to enable a business-conducive environment.
Meanwhile the AfDB has recently placed emphasis on the key role played by the private sector in implementing infrastructure
projects, especially in the power and transport sectors, for the development and transformation in Africa. It also stresses the need
for sustainable tax systems and systematic analysis of new and innovative ways of mobilizing domestic resources.
[AfDB 13/10/14]
Africa50 Fund
- The AfDB Bank created the Fund as the solution to stimulate and drive the African infrastructure market.
- It seeks to reconcile governments’ strategic objectives of meeting investment needs in infrastructure and the
attractiveness of African assets to the growing sources of domestic and international capital.
- Long-term aim is to invest US$10 billion in projects and facilitate total project investments of US$100 billion by
crowding in private-sector players and enticing investors.
- Headquartered in Casablanca, Morocco.
11
Sub-Sahara Africa Implements Most Business Reforms Worldwide
A new World Bank Group report finds that Sub-Saharan Africa had the highest number of business regulatory reforms globally in
2013/14, with 74% of the region’s economies improving their environment.
Doing Business 2015: Going Beyond Efficiency finds that Benin, Democratic Republic of Congo [DRC], Côte d’Ivoire, Senegal,
and Togo are among the 10 top improvers worldwide, having improved business regulation the most in the past year among the
189 economies covered. Since 2005, all countries in the region have improved the business regulatory environment for small
and medium-size businesses, with Rwanda implementing the most reforms, followed by Mauritius and Sierra Leone. The report
shows that over the past 5-years, 11 different Sub-Saharan African countries have appeared on the annual list of the 10 global
top improvers. Some have done so multiple times, such as Burundi, Cape Verde, Côte d’Ivoire, and Rwanda. Yet despite broad
regulatory reform agendas, challenges persist in the region, where business incorporation continues to be costlier and more
complex on average than in any other region.
The report finds that Senegal implemented regulatory reforms in six of the 10 areas tracked by Doing Business - a global high
for the year. Thanks to such reforms, Senegal is gradually narrowing the gap with best practices seen elsewhere. For example,
in 2005, completing every official procedure to import goods from overseas took 27 days. Today it takes 14 days, the same as
in Poland. This year, for the first time, Doing Business collected data for a second city in the 11 economies with a population of
more than 100 million. In Nigeria, the report now analyses business regulations in Kano as well as in Lagos. The report this year
also expands the data for 3 of the 10 topics covered, and there are plans to do so for 5-more topics next year.
[World Bank 29/10/14]
The Doing Business Report Series
The annual World Bank Group report analyses regulations that apply to an economy’s businesses during their life cycle,
including start-up and operations, trading across borders, paying taxes, and resolving insolvency. The aggregate ease of
doing business rankings are based on the distance to frontier scores for 10 topics and cover 189 economies. For more
information about the Doing Business reports, please visit doingbusiness.org or on doingbusiness.org/Facebook
12
PAN AFRICA
TRANSPORT / TRADE
New U.S. Advisory Panel Promotes Trade With Africa
On November 5th, U.S. Secretary of Commerce Penny Pritzker announced the appointment of 15 private sector leaders to the
new President’s Advisory Council on Doing Business in Africa [PAC-DBIA]. PAC-DBIA members, representing small, medium
and large companies from a variety of industry sectors. The advisors were chosen at the Discover Global Markets Forum.
The forum was designed to explore export opportunities in sub-Saharan African nations, including Côte d’Ivoire, Nigeria,
South Africa and Mozambique, among others. Members were selected to advise President Obama, through the secretary of
commerce, on strengthening commercial engagement between the United States and Africa. The advisory council will provide
information, analysis and recommendations on U.S.-Africa trade and investment priorities, including job creation; developing
and strengthening commercial partnerships to increase public and private sector financing in Africa; and analysing the effect of
policies in the United States and Africa on U.S. trade and investment interests in Africa.
U.S. merchandise exports to sub-Saharan Africa increased 58% from 2009 to 2013, reaching US$24 billion in 2013. The annual
growth rate of U.S. goods exports to sub-Saharan Africa has outpaced the rate of growth of exports to the world during this
same period. Total U.S. exports of goods and services to the continent of Africa reached US$50.2 billion in 2013, representing
total growth of 39% since 2009, or a 9% annual growth rate.
[US State Department 06/11/4]
For further information on PAC-DBIA view http://www.trade.gov/pac-dbia/
13
India-Africa Trade Forum
African leaders and Indian industrialists met at a closed session of
the WEF India Economic Summit in Delhi, agreeing to an informal
ambition of US$500 billion Indo-African trade by 2020. That
represents a 5-fold increase from 2015, in which Indo-African trade is
expected to reach US$100bn, and a 7-fold increase from 2013, when
2-way trade stood at US$70 billion.
Participants in the session included Ghanaian Vice President
Kwesi Amissa-Arthur, Cote d’Ivoire Prime Minister Daniel Kablan
Duncan, Indian industrialist Prakash Hinduja and Mahindra Group’s
Shriprakash Shukla.
The Mahindra Group has set an internal target to make Africa the
second largest “emerging market” in its operations, after the USA.
Other Indian conglomerates, such as Tata, and Reliance, see Africa as
a similar opportunity.
[Beyondbrics 05/11/4]
Africa-Irish Trade Increases 35% From 2010-2013
Total trade between Ireland and Africa
increased by 35% from 2010-2013,
from just over €1.7 billion to over €2.3
billion. More than 300 business people
and members of the African community
came together for the recent AfricaIreland Economic Forum, focusing on the
business and development links.
Several Irish companies are already
operating on the continent, including Kerry Group, Guinness, ESB International and Glanbia Nutritionals. In the last 3-years, Irish
exports to sub-Saharan African increased by 27%.
Exports by Enterprise Ireland-supported companies to Africa last year totalled €550m. That’s expected to increase to €800m by
the end of 2016. To coincide with the forum, the Irish Exporters Association has established an African Business Forum.
[APA 29/10/14]
For further information view http://www.irishexporters.ie/africa-business-forum-overview/
Afreximbank Mobile Payment Platform For Africa
The African Export-Import Bank [Afreximbank] is working to introduce a mobile payment platform to support intra-African trade
and payments. The initiative is expected to bring over US$50 billion of informal regional trade, which currently takes place on the
continent, into the formal sector, with attendant benefits to governments, businesses and trade financiers. Afreximbank is working
with Econet Wireless Group to develop and introduce the platform.
[Star Africa 05/11/14]
Sustainable Transport Plan For Africa
African countries have moved closer to a cleaner, greener system of cars and public transport after ministers adopted a
continent-wide sustainability strategy this month. Ministers and officials from over 42 countries across Africa signed a new
framework for the transport sector, aiming to promote the use of low emissions vehicles, develop quality public transport and
increase investment in clean technology.
This will take place alongside Africa’s 50-year development plan, Agenda 2063, which lays out the intention to dramatically
improve transport links across the continent in coming decades. The conference was organised by Kenya, UNEP, UN-Habitat,
the World Bank and the Africa Transport Policy Programme of World Bank.
[Kenyan Star 31/11/14]
14
WESTERN AFRICA
ECOWAS / TRADE
Angola
Trade With Canada Reaches US$2 Billion
The potential for growth of trade and bilateral investment between Angola and
Canada is promising with negotiations for the signing of an accord for promotion
and reciprocal protection of investment underway. Several Canadian business
missions that visited Angola have showed interest in mining, infrastructure, civil
construction, agricultural equipment, education, transport and information and
communication technologies Trade reached US$2.3 billion in 2012.
Canada exported US$1.9 billion and imported US$109 million. Angola’s exports
consisted of agricultural products, aeronautic items, clothing and machineries
like gas turbines, while Canada bought oil and derivatives from Angola. In 2013,
there was a light fall in the commercial transactions between the 2-countries
down US$0.5 million but exports from Angola to Canada were more diversified,
focusing mainly on crude oil, minerals, rocks, lime and cement.
[ANGOP 06/11/14]
Morocco
Expands Cooperation With China
China will expand practical cooperation with Morocco in various areas to step up
the China-Morocco ties. Yu Zhengsheng, chairman of the National Committee of
Chinese People’s Political Consultative Conference [CPPCC], made a 3-day visit
this month holding meetings with Moroccan King Mohammed VI, Prime Minister
Abdelilah Benkirane and President of the Chamber of Representatives.
[Beijing Government 06/11/14]
Nigeria
Trade With China Hits N1.7 Trillion In 7-Months
The trade volume between Nigeria and China in the last 7-months hit a record
N1.7 trillion [US$10.3 billion] rising by 42.8% the highest in history. Nigeria is
currently China’s third largest trading partner in Africa while China is the largest
source of imports into Nigeria. The value of exports from Nigeria to China sharply
increased by 147.5% to US$1.9 billion.
[NAN 29/10/14]
Indonesia Targets US$5 Billion Trade Volume
Indonesia is to target US$5 billion in trade with Nigeria within the next 3-years.
The move is part of the Indonesian government’s plan to seek alternative
markets for its exports, following the economic downturn in Europe and the
United States. The National Export Development plan aims to enhance trade in
food and beverages and energy.
Indonesia is the largest trade partner to Nigeria in the Southeast Asia with strong
growth recorded in 2-way trade in 2012 which reached US$3.18 billion 50%
higher than US$2.09 billion in 2011. Indonesia exports oil, vegetable fat, paper
products, pharmacy, soap, electronics to Nigeria, while Nigeria exports oil, cotton
and leather to Indonesia.
[Independent 23/10/14]
15
WESTERN AFRICA
PORTS
Cameroon
Kribi Port Management Tender Finalists
On October 31st, Prime Minister, Philémon Yang, published a shortlist of companies contending for the logistics management at
Kribi’s deepwater port following a recent tender. Three companies make up the finalists. The board rejected offers from Société
d’exploitation des ports-Marsa [Morocco] and Sea Invest/CLGG [Belgium].
- Bolloré Africa Logistics / China Harbour Engineering Company [CHEC] / CMA-CGM
- ICTSI [Philippines]
- AMPT
This follows new requirements by the government in a new restricted call for tenders. The first bidding round was launched in
February 2014 only to be quietly cancelled in March 2014. The government then integrated a new clause requiring the bidders to
also build the 2nd container terminal at Kribi port along 700m of quay compared to the previous 350m. In light of this last-minute
addition, with its contribution to the financing negotiation, the Chinese company China Harbour Engineering Company [CHEC] is
an essential link and partner for those hoping to land the Kribi deep water port’s first container terminal.
The deep-water port of Kribi
that will play a key role in
the export of iron ore and
aluminium to international
markets. The port on the Gulf
of Guinea will also act as a
regional hub for the export of
commodities from landlocked
Chad, the Central African
Republic [CAR] and the
Republic of Congo. The world’s
largest cargo ships [Capesize]
will be able to operate out of
this port.
The port, which was begun in
2012, has cost an estimated
500 billion CFA francs [US$1
billion]. Eximbank China
provided 85% of the finance
with the remaining 15%
coming from the Cameroon
government.
The construction has been
undertaken by CHEC.
Furthermore Bouygues and
DTP Terrassement are to build
the Edea-Kribi railway. The
100km rail will link the energy
town of Edea to the seaside city of Kribi. Goods would be ferried through this line to the Kribi deep seaport. Bouygues and DTP
Terrassement, a French consortium will construct the road.
Decongestion Strategies Drafted For Douala Port
The Port Authority of Douala [PAD] has announced the need of 24-hour continuous service at the port in order to reduce
congestion during a consultation meeting between economic operators and the Ministry of Trade in Yaounde. Difficulties faced in
anchoring ships containing goods which are sometimes perishable and the poor management of storage space were amongst
the problems identified. Meanwhile, some operators were accused of abandoning goods for as long as 60 days, violating the 11
days stipulated in the regulation.
[RTV 08/11/14]
16
WESTERN AFRICA
PORTS
Ghana
Maritime Trade Slows By 21%
Total maritime trade for Q2 2014 decreased by about 21% from 6 million tonnes in 2013 to 4.8 million tonnes in 2014. Ghana
Shippers Authority figures show total imports decreased by 31% while total export showed 16% increase in tonnage. Total transit
volume also decreased by 21% during the review period, while transhipment recorded over 31% increase.
Tema port’s total volume of trade decreased by 21% from 4.7 million tonnes in 2013 to 3.73 million tonnes in 2014. Import fell
by 26% while export increased by 24%. Transit cargo through Tema Port fell by 22% while transhipment increased almost 29%.
Takoradi Port also experienced a 21% decrease from the 1.36 million tonnes recorded for the 2013 period, to 1.0 million tonnes
during the review period. Import tonnage decreased by 60% while export tonnage increased by 11% over the 2013 tonnage.
Total transit tonnage recorded for the Takoradi Port during the review period increased by 42% from 6,145 tonnes in 2013 to
8,740 tonnes. On the import side, the total liner trade amounted to over 1.33 million tonnes for the review period. This was 22%
less than was recorded for the 2013 period.
Total break bulk recorded for the period was 576,222 tonnes, a decrease of 32% from the 2013 record. The dry bulk trade for the
review period was 53% less than the 2013 tonnage, while the liquid bulk trade saw a 7% decrease from the 2013 tonnage.
[GhanaWeb 16/10/14]
Transport Minister Satisfied With Work On Tema Port Expansion
Mrs Dzifa Ativor, Minister of Transport, has expressed satisfaction on the expansion works at the Tema Port to improve its
operations and meet international standards. The US$120 million Bulk Handling Jetty construction project, which started in
2013 is being executed by Amandi, an international construction engineering firm and expected to be completed in November
2015. Other projects comprise of provision of basic port infrastructure such as breakwater, quay wall, terminals and dredging to
adequate depths. During a working visit to the project site, Ativor noted both ports are undergoing massive expansion works and
it is expected that a section of the construction of the breakwater would be completed in October.
[Spy 08/11/14]
Takoradi Port Dredging Begins
Dredging at Takoradi Port is to begin in December 2014 and run through until
March 2015 followed by the construction of the quay wall which will end in 2016.
The dredging, which forms part of the Takoradi Port expansion project, will pave
way for the construction of the quay wall at the port. The dredging would ensure
single handling of cargo to reduce cost mostly associated with import and export
of commodities. Jan-de-Dul, a construction firm from Belgium, will undertake the
works.
Expansion works include construction of oil services terminal, reclamation of
53,000 ha, dredging of an access channel and construction of a bulk terminal.
When completed, the US$450 million project is expected to position the port to
receive bigger vessels, improve the turnaround time and eliminate double handling
of cargoes. Manganese, bauxite and other bulk cargo operations would be
transferred to a new dedicated jetty. The expansion will free the existing manganese
terminal for the increasing demand of other sectors, including oil and gas.
The first project was to extend the breakwater northward by 1.708km, the
construction of bulk oil service terminal, the reclamation of a land area of 53,000ha, an open area for oil pipe, plant and
machinery, as well as an access road to the port. Today, the breakwater is about 95% complete awaiting only signal or Harbour
entrance light and a final pavement. The completion of the break water will offer the Port sufficient space in the port to expand the
berthing facilities and oil and gas platforms. The north key will be extended by 620m. This will help shift all the major bulk carrier
business that was taking place in the port to the north key. The port will be dredged from 11.5m to 16m so the port is capable
of handling panamax vessels. The GPHA is also using an existing log pond to create a sufficient space of about 660m key front
for supply vessels and oil and gas vessels. GPHA has signed with South African contractor Murray and Roberts to reclaim the
land in partnership with Viking offshore. Meanwhile a brand new desalination plant for the oil exploration industry is offered in
collaboration with Viking offshore which is currently producing 240 tons of water daily.
[Ghanaweb 06/11/14]
17
Nigeria
NPA Completes Due Diligence On Lekki Deep Seaport
One of the key investors in the US$1.5 billion deep seaport situated in Lekki,
Lagos, the Nigerian Ports Authority [NPA] has completed due diligence on
the Government’s involvement in the project.
The Government had required this as a condition before it will commit
its resources into the construction of the project. This news comes after
reports that the construction of the seaport is hampered by the inadequate
funding from financial institutions. On completion, the port is expected to
ease congestion presently plaguing ports in Apapa and propelling economic
growth in the maritime industry. The port is expected to become operational
by 2018 with the next phase of its construction starting in earnest. The
project is a public private partnership [PPP] between the Government
[represented by NPA], the Lagos State Government and the Tolaram Group.
A shareholder’s agreement to this effect was signed in December 2012 by
the 3-parties.
Abuja
Lekki
Sources close to the promoters of the project said Lagos State Government
equity and that of the Tolaram Group are in place, whilst NPA is in the
process of making its equity contribution to the project. It was gathered that
NPA carried out and concluded its due diligence on the project through a
KPMG to ensure accountability, transparency and value for money of the
project. Apart from getting the concession from NPA to build Lekki Port, Tolaram has put together leading global consultants
such as Standard Chartered Bank, the Louis Berger Group Inc., Delta Marine Consultants, BMT Asia Pacific, TBA Netherlands,
Jardine Lloyd Thompson Pte Limited and GMaps, following which the EPC contractor, China Harbour Engineering Company
has been appointed to build the port and the container terminal has been sub-concessioned to International Container Terminal
Services, [ICTS] Incorporation, Philippines.
However evacuation bottlenecks may have dampened interest of some investors in the project. Promoters of the Lagos Free
Trade Zone [LFTZ], Tolaram Group, is shopping for US$800 million from local and international financial institutions to actualise
the project. The Lekki axis is largely a residential area, vehicular traffic in and out is very heavy without the added burden of
trucks plying that route, which will worsen if trucks traffic is added especially as there is none existent rail connection. Already, the
promoters have shifted the take-off date of the project for the 5th time. Tolaram Group has now said the port would commence
operation in 2018.
LFTZ has secured US$150 million [N24.7billion] from the African Development Bank [AfDB] which has obtained its board’s
approval for the funding [which forms part of the proposed $800 million]. Under the arrangement, the fund would be used for
the construction of breakwaters, quays, approach channels, dredging of the basin and captive utilities such as water and power.
According to AfDB, the port, when completed, will handle 2.5 million TEUs, 16.7 million tonnes [MT] of liquid cargo and 4.5 MT of
dry bulk. Construction is expected to start in January 2015. The European Investment Bank [EIB] which is eager to invest in the
project, has also got Principal Board Approval [PBA] to support the project with funds.
[This Day 24/10/14 / Daily Independent 23/10/14]
18
WESTERN AFRICA
PORTS
Channel Dredging Will Open Calabar Seaport
The dredging of the Calabar Port channel will attract South East traders to use
the seaport when the project is completed. South East shippers from Aba,
Onitsha, Enugu and Nnewi, have relied on Lagos and Rivers Ports to bring in their
consignments as Calabar has not been able to attract deep ocean going vessels
due to its low draught. The Government this month flagged off the dredging
of the 84-km Calabar channel in Cross River State which is undertaken by the
Calabar Channel Management [CCM] and Niger Global Engineering and Technical
Company Limited. The channel will be deepened from 8m to 10m over a 2-year
duration.
[This Day 31/10/14]
New Port Order Launched By NSC
In a move to achieve port efficiency the Nigerian Shippers’ Council [NSC] has designed a ‘comprehensive process manual’ for
terminal operators and shipping companies as part of a new port order. As the ports regulator, the NSC maintains that with
cooperation from stakeholders in the ports industry, the new measures will apart from reducing cost also remove delay in the
process of goods delivery.
The measures from the Council are coming at a time when other stakeholders, mainly shippers, are calling for strong measures to
improve trade facilitation in the country. The appointment of CPCS, a Canadian company; Nafith [Trident N Tel Group], JordanianAmerican Logistics company and Mark Analytics under the aegis of Lagos Business School, is part of the moves for a new port
order by the Council. Each will play an in-house technical advisory role and guide the Council on tariffs and generally in its role as
commercial regulator in the ports.
NSC has already announced the reversal of the current charges on storage by terminal operators to the 2009 rate. Storage
charges were introduced by the terminal operators about 5-years ago in violation of the approved rate by the Transport Ministry
in the same year. The Council also raised the free period for shippers who have containers at the ports as well as demurragefree days. The NSC as the Economic Regulator will also ensure fair pricing, settlement of disputes arising from the system and
automation in the ports.
[This Day 02/11/14]
Togo
Lomé Container Terminal Commissioned
Lomé Container Terminal [LCT], a 50/50 joint venture [JV] between TIL Group and CMHI [China Merchants Holdings International]
has been commissioned in early October. Although TIL Group is 65% MSC-owned with the remaining 35% in the hands of
GIP [Global Infrastructure Partners], Lomé Container Terminal is marketed as a multi-user facility. Once fully operational, the
transshipment terminal will have an annual 2.2 million TEU handling capacity and allows shipping companies to deploy larger
vessels in Togo. The Port Autonome Lomé [PAL] also serves the hinterland including Burkina Faso, Mali and Niger.
Three new cranes were also delivered to LCT last month. Each twin lift unit weighs 1,400 tons and has a capacity of 65 tons.
They were landed from the ship ‘Zhen Hua 8’ and installed on the dock bringing the total number to 6. These Chinese ZPMC
cranes are the most modern and the largest in Africa.
Facilities
- Surface 54 ha
- Capacity 2 million TEU [1 million]
- Quay length 1,050m [400m]
- Depth alongside 16.6m [14m]
- Ship-to-Shore gantries 12 [6] with an outreach of 22-boxes wide. By February 2015 12 units to be positioned.
Another facility to function as a Gulf of Guinea hub is the Bolloré operated Togo Terminal also in Lomé. Its current 300,000 TEU
capacity is being expanded to 1.2 million TEU through doubling quay length to 950m and dredging depth alongside from 12m
to 15m, amongst others. Ship-to-shore equipment currently consists of 2-container gantries and 5-Mobile Harbour cranes. It
remains to be seen what the fate will be of the container terminal in San Pedro, Ivory Coast, in which TIL owns a share of 16%. It
handled 330,000 TEU in 2013.
19
WESTERN AFRICA
REGULATRY
Gabon
Used Vehicles Over 3 Years Old
In accordance with the ‘Plan Sectoriel Environnement du Plan Stratégique Gabon Emergent’ [PSGE], the Gabonese government
has decided to strengthen rules on imports of used vehicles. By decree # 002707/MPITPTHTAT/MEEDD issued 27 September
2013 by the Gabonese Ministry Of Transport and effective from 23 September used vehicles over 3 years are banned.
Furthermore by circular # 005 MT/CAB issued by the Government of Gabon, all used vehicles older than 3 years must be reexported by the end of September 2014.
-
Ban is imposed on used vehicles older than 3 years
The scope of this ban includes the vehicles by private owners
Below 3 years, the original car registration document is mandatory for import of used vehicles
The regulation concerned personal cars, bus, lorry, van and trucks
Nigeria
Nigeria To Control Road Load Weight
Nigeria is set to implement the standards and procedures for control of dimensions, weight and loads of goods in order to
improve on its dilapidated and inadequate infrastructure. Over 90% of freight transportation in Nigeria is by road, using trailer
trucks and tankers that are more often overloaded depleting road assets. The ministry has already drafted new regulations
titled, ‘Federal Highways [Control of Dimensions, Weights and Axle Load of Goods] Regulations, 2014’, which would enable
transporters move goods and services from origin to destination in one haul. States are expected to equip road corridors with
weighing facilities within 6-months and sensitise all stakeholders. The Ministry is currently constructing 15 weighbridges along
major arterial roads while the Road Sector Development Team of the Ministry is also in the process of procuring Axle Load
Control and Weight Stations.
[Daily Independent 17/10/14]
For more information on African Regulations, Pre-Shipment
Inspection, Waivers and Import/Export Restrictions please
see our Shipping Guide page:
http://www.delmas.com/products-services/shipping-guide
20
EASTERN AFRICA
EAC / COMESA
Intra-Africa Trade The Key To Boosting African Economies
Comesa-EAC-SADC Tripartite FTA To Be Launched Mid-December 2014
In October 2014, delegates from
26 countries of 3-main trading
blocs in Africa agreed to launch the
continent’s largest free trade area in
December 2014.
In a move that will certainly heighten regional
trading and integration regionally and
continentally, ministers from the Common
Market for Eastern and Southern Africa
[COMESA], East African Community [EAC]
and the Southern African Development
Community [SADC] endorsed the launch of
a tripartite Free Trade Area [FTA]. The FTA,
popularly known as the Grand Free Trade
Area, will encompass a population of 625
million with a GDP of US$1.2 trillion roughly
half of the membership of the African Union
and 58% of the continent’s GDP.
The COMESA-EAC-SADC Tripartite FTA will
be launched during the Tripartite Summit of
Heads of State and Government in midDecember 2014, in Egypt. To that end the
majority of the Tripartite Member/Partner
States have made ambitious tariff offers and
have agreed on Rules of Origin to be applied
in the interim whilst further work continues
on product specific Rules of Origin.
The launching of the Tripartite Free Trade
Area will be the first phase of implementing a
developmental regional integration strategy
that places high priority on infrastructure
development, industrialisation and free
movement of business persons.
[COMESA / Swazi Observer 28/10/14]
“
The Tripartite FTA will be the largest economic bloc on the continent and the
launching pad for the establishment of the Continental Free Trade Area [CFTA] in
2017.
It offers significant opportunities for business and investment within the Tripartite
and will act as a magnet for attracting foreign direct investment into the tripartite
region.
The business community, in particular, will benefit from an improved and
harmonized trade regime that reduces the cost of doing business as a result of
the elimination of overlapping trade regimes due to multiple memberships.
21
”
“
Africa has now joined the league of emerging
economies and the grand FTA will play a pivotal and
catalytic role in the transformation of the continent.
”
Deputy Minister of Commerce and Industry of Zimbabwe, Chiratidzo Iris Mabuwa
FTA Principles
Duty-Free / Quota-Free Market Access
No quantitative restrictions on goods that meet the Tripartite Rules of Origin.
Standstill Provisions / Incremental
Liberalisation
Tripartite countries to present national tariffs and declare customs duty rates for all tariff lines
at the start of the negotiations and should undertake not to raise customs duties on imports
from other Tripartite countries before, during or after the negotiations, and to continuously
reduce non-zero customs duties so they are completely eliminated as part of the Tripartite
FTA.
Most Favoured National Treatment
Tripartite countries should accord each other Most Favoured Nation [MFN] treatment where
there is no prevention by country members from maintaining or concluding preferential or
free trade agreements, either separately or together, with third countries provided such
agreements do not go against the letter or spirit of the Tripartite Free Trade Agreement.
National Treatment
Member countries to accord the same treatment to products manufactured in other Tripartite
countries once imported into their territory as that accorded to similar locally manufactured
products.
22
EASTERN AFRICA
EAC / COMESA
Ethiopia
Signs Agreements With Ireland
Irish President Michael D Higgins, on a visit to Ethiopia, witnessed
the signing of 3-bilateral treaties agreements between Ireland and
Ethiopia on November 3. One agreement covered the avoidance of
double taxation and is expected to encourage the growth of trade
and investment. A bilateral transport agreement will clear the way for
direct flights by Ethiopian airlines from June 2015 between Dublin
and Addis Ababa. This will provide the first-ever direct scheduled
route between Ireland and Africa. The third agreement is a bilateral
co-operation agreement providing a framework for a 5-year
development partnership, estimated to be worth €136m.
[Ethiopian Government 04/11/14]
Kenya
Imports From The U.S. Triple
Imports from the United States have nearly tripled over the 9-months
to September, leapfrogging it to Kenya’s third largest source market
after India and China.
Data from the Kenya National Bureau of Statistics show Kenya has
bought goods worth Sh120.41 billion from the US over the period,
compared to Sh42.85 billion last year, a 181% growth. India sold
goods worth Sh196.32 billion to Kenya up 3.3%, while China’s
exports soared 39% to Sh178.72 billion. Growth of imports from
the US has been attributed to Kenya Airways’ acquisition of several
Dreamliner planes from Boeing, and spareparts.
A spike in imports over the 9-month period has seen the cumulative
trade deficit nearly double to Sh798.24 billion, a 86% jump over
last year’s Sh429.19 billion. Kenya’s total imports up to September
amounted to Sh1.2 trillion against exports valued at Sh403 billion.
Monthly trade deficit widened the fastest in September at Sh119.46
billion as exports contracted. Exports slumped 7.9% over the
previous month to Sh40.47 billion from Sh43.96 billion. Imports rose
by 11.1% over August to Sh159.94 billion, which also set a historical
record for the highest value of imports in a single month.
The USA is also Kenya’s third largest export destination, taking up with goods worth Sh28.42 billion, which saw it overtake the
United Kingdom and Tanzania from the third and fourth slots respectively. Netherlands has moved to the second largest buyer
of Kenyan goods after Uganda, with worth of exports to the country rising by Sh5.44 billion in the period to Sh29.01 billion.
Tanzania remains Kenya’s fourth largest export market, while the UK has been relegated to fifth. South Africa is the only country
that features among the top 11 exporters to Kenya, with Sh46.70 billion worth of goods in the 9-months, a 10.3% decrease over
year’s Sh52.07 billion.
[Star 10/11/14]
UK Trade Body Concludes Kenya Mission
The United Kingdom Trade and Investment [UKTI] is satisfied with the just-ended Trade Mission to Kenya. Consisting of 20
companies, the mission met with United Nations and donor agencies and discussed ways of working together. Various sectors
were represented including energy, property and finance, and communications. Companies also held a business to business
session with DFID partners, Kenya Markets Trust and Finance Innovation.
[CajNews 04/11/14]
23
Tanzania
Agents Back New Regulations On Customs Clearance
Customs agents will have to acquire a professional certificate to be allowed to operate in Tanzania from next January. The
Federation of East African Freight Forwarders Association [FEAFFA], noted that it would be mandatory for all custom agents to
obtain an East Africa Customs and Freight Forwarding Practising Certificate [EACFFPC]. A certificate is obtained after attending
a training programme jointly implemented by the East Africa Revenue Authorities [EARAs] and the national freight forwarding
associations affiliated to FEAFFA. In Tanzania, the Tanzania Freight Forwarders Association [TAFFA] has signed a memorandum
of understanding [MoU] with TRA to utilise its Mikocheni based Institute of Tax Administration [ITA], to train local C&F agents and
obtain the EAFFPC.
In 2012, FEAFA received US$495,980 from Trade Mark East Africa to improve import logistics through training of clearing and
forwarding, but also customs officials to help address trade barriers in EA region. The grant targeted to train over 4,000 personnel
by end of last year, saying the logistics costs account for about 42% of total cost of importing, while the costs associated with
delays represent about 23% of the total import process cost. In 2011, TradeMark also handed FEAFFA a US$1 million grant to
help improve capacity of C&F agents.
[Daily News 10/10/14]
Sino-Tanzania Relations: 3rd China-Tanzania Investment Forum
Tanzania and China reaffirmed their friendship and bilateral relations commitments during President Jakaya Kikwete’s 6-day
state visit to China where the world’s second biggest economy pledged more investments and trade. Opening the 3rd ChinaTanzania investment forum that attracted more than 500 Chinese firms and potential investors, Kikwete noted the Tanzania
Investment Centre [TIC] had registered projects worth more than US$2,490m from China. In 2012/13, total trade volume was
US$1,595.16m, of which China’s exports were worth US$1,099.42m while imports from Tanzania stood at US$495.74m.
Some of the deals sealed in Beijing include a Memorandum of Understanding [MoU] on strategic partnership for development of
Bagamoyo Port and an Economic Special Zone, that would see the district becoming the hub of investment and trade in the East
and Southern Africa region. Also significant was National Housing Corporation’s (NHC) US$1.7 billion deal for 3-housing projects
to include the Salama Creek Satellite City.
[Daily News 10/11/14]
Vietnam Expands Co-Operation
Tanzanian President Jakaya Mrisho Kikwete visited
President Truong Tan Sang in Vietnam to improve trade
relations.
During talks assessed the results of recent co-operation
and agreed upon measures to further strengthen allround co-operation agreeing to forge closer political
ties by promoting exchange visits, people-to-people
diplomacy and setting up twin relationships between
major cities to deepen mutual understanding.
The leaders agreed to facilitate agricultural and
telecommunications co-operation projects and to
direct ministries to promote co-operation in investment,
trade, agriculture, fishery, education, healthcare,
telecommunications and maritime transport services
within the South-South co-operation framework.
Tanzania expressed willingness to act as a bridge for
Viet Nam to enter the African and East African markets
and hoped Viet Nam return the favour by facilitating
Tanzania’s entry into the ASEAN market. The leaders
also witnessed the signing of a maritime transport cooperation agreement.
[Vietnamnet 28/11/14]
24
EASTERN AFRICA
PORTS
Kenya
Cargo Clearance Set to Take Shorter Time
A one-stop system to facilitate trade and customs clearance will be roll out fully by December, and is expected to boost
competitiveness by reducing costs, the Kenya Trade Network Agency [Kentrade] announced. Kentrade has tested the Kenya
National Electronic Single Window System successfully through 16 regulatory agencies that regulate import and export
businesses. The project, when fully operational, is expected to facilitate international trade by reducing delays and lowering costs
associated with clearance of goods at the Kenyan borders, while maintaining requisite controls and revenue collection. The
country is expected to save up to US$250 million/pa [Sh22.34 billion] in the first 3-years of implementation and up to US$450
million [Sh39.75 billion] in subsequent years.
Importers and exporters have complained that besides the Kenya Revenue Authority [KRA], whose processes have gone online,
other procedures are still characterised by filling up forms, which take days to be approved. Kentrade blamed the high cost of
doing business on the many agencies involved in the cargo clearance process, at times sending the same document to each
other back and forth, leading to delays. The single window is expected to bring down the average cargo dwell time at the
Mombasa port from 7 to 3-days.
[The Star 25/10/14]
Kilindini To Get 15 Cranes
The Kenya Ports Authority [KPA] will get new equipment to improve operations at the Kilindini Harbour. Chairman Danson
Mungatana said they expect 3-ship-to-shore gantry cranes and 12 new rubber-tyred gantry cranes by February. Mungatana said
investment in cargo-handling infrastructure will help reduce ships’ turnaround time and cargo dwell time at the port.
[The Star 24/10/14]
25
South Africa / Kenya Sign Maritime Integration Strategy
The Transnet National Ports Authority [TNPA], which is one of 5-operating divisions of Transnet Group responsible for functioning
of the 8-national ports systems, has signed a Memorandum of Understanding [MOU] with several ports in the region. An objective
of the MOU’s is to boost intra-regional trade within the Southern African Development Community [SADC], which sits at 12%.
Kenya Port Authority [KPA] was the 4th to sign, after the Maputo Port Development Company [MPDC], Namibian Port Authority
[NPA] and the Ghana Ports and Harbours Authority [GPHA]. The TNPA will later this year extend these agreements to Angola,
Tanzania and Sudan. The signing of these MOUs put Transnet in a position to share best practices with other countries as well
as learn from them in areas in which they operated efficiently. Such MOUs are driven by the Port Management Association of
Eastern and Southern Africa [PMAESA].
“
There are a number of obstacles hindering the progress of African ports.
These include the lack of deep water berths, poor equipment and lack of
maintenance and infrastructure, limited or no training, limited capital to
develop and port infrastructure that is lacking.
”
Tau Morwe , TNPA’s Chief Executive
Unlike the TNPA whose mandate is that of being the national ports landlord, the KPA is landlord and operator. KPA said its port
authority would use TNPA’s expertise in separating the ports into 2-different entities, landlord and operational divisions. Kenya’s
principal port, Mombasa, is busy constructing an additional terminal. The current container terminal is 840m with a capacity of 1
million TEUs. In 2013, the port handled 22.3 million tonnes of cargo, a 9.1% increase from 21.9 million tonnes the previous year.
This year, the port was expected to handle more than 1 million TEUs, a sign that it was overstretched. KPA is to fast track the
construction of the second terminal and decided that it is going to be operated by a private operator selected through a bidding
process. Transnet had been invited to bid. Mombasa port also serves landlocked countries including Uganda, Rwanda and South
Sudan, along with eastern Democratic Republic of Congo [DRC].
[Business Report 27/10/14]
26
EASTERN AFRICA
PORTS
Mozambique
Nacala Port Expansion Works On Track
The expansion and modernisation of the port of Nacala, in Nampula province, is being carried out at a fast pace despite starting
with a month-long delay, according to the port management company Portos do Norte. Costing an estimated US$24m, the
work is still in its first phase, which began last March and is scheduled for completion in June 2015. Current work focuses on the
reconstruction of the north pier. Portos do Norte noted the planned work, of which around a quarter of the specifications have
been carried out, includes a new container park that is almost complete and new roads that have yet to be finished. Later work
will continue on docks #3 and #4, where the pier for large draft ships will be built. With the work now underway, the port has
halved its cargo processing capacity, as only two of four piers are being used at the North Pier, as is also the case with the South
Pier, which was originally only used for containers and is now being used for liquid cargo.
[Macauhub/MZ 10/11/14]
Beira Port Cargo To Grow 15%
The cargo processed this year by operators from Zimbabwe, Zambia, Malawi and the Democratic Republic of Congo [DRC], as
well as Mozambique, is expected to post a growth of 15% according to Cornelder the management company of Beira port. This
growth is made possible with the launch of the Single Electronic Window and the acquisition of 2-new container gantry cranes
that started operating in March increasing the number of containers moved per hour from 12 to 29 and reduce the length of stay
of ships from 6 to 2-days. In 2013 the port handled 184,000 containers compared to a projection of 210,000 containers and 6.6
million tons of general cargo, including 4 million tons of coal mined in Moatize, Tete province.
[Macauhub/MZ 31/10/14]
27
Somalia
Mogadishu Port Sees US$1.5 Million Revenue Within A Month
Turkish Albayrak Group, which has managed the Mogadishu port since the end of September is making significant progress. The
Group has transferred US$1.582,000 million in revenues to the Government of Somalia over the last month. Since August 2012,
Al-Bayrak Group has focused on the rehabilitation of the port and has promised without condition to transfer 55% of revenue to
the government. The other 45% left to Group for administration - equipment investment, construction, and new docks.
[Dalsan Radio 05/11/14]
Tanzania
China-Funded Bagamoyo Port Construction To Start In 2015
Construction of a Chinese-funded port and special economic zone in Tanzania worth at least US$10 billion will start on 1st July
2015 according to the president’s office, for the first time setting a start date for the delayed initiative. Tanzania aims to build a
huge port at Bagamoyo, 75km north of commercial capital Dar es Salaam, the site of the country’s main port, where shippers
complain of congestion and inefficiencies.
A construction agreement for the port and associated zone was signed on 26th October and follows a framework deal signed
last year. A start date for building work had taken time to set because of other negotiations about infrastructure to link the port
to national transport networks. Tanzania signed an infrastructure development agreement with port developer China Merchant
Holding International [CMHI] and Oman’s biggest sovereign wealth fund, the State General Reserve Fund [SGRF].
The planned Bagamoyo port, new investment in Dar es Salaam and other spending on roads and railways are part of Tanzania’s
efforts to become a transport hub that could challenge the dominance of Mombasa in neighbouring Kenya.
[Reuters 27/10/14]
28
SOUTHERN AFRICA
SADC / TRADE
SADC Sets Fund To Boost Infrastructure
A regional fund aimed at boosting economic growth in the Southern African Development Community [SADC] has been
established. The Project Preparation and Development Facility [PPDF], which will be implemented through the Development Bank
of Southern Africa [DBSA], is expected to fund the development of key infrastructure projects across the region. The purpose of
the facility is to meet development costs in transport, including trunk roads and corridors, bridges, air, shipping, ports and border
posts Construction or rehabilitation costing at least US$250,000 will qualify for funding. The DBSA is inviting member States and
implementing agencies including the private sector to apply for grants for qualifying projects.
Namibia
Signs Trade Agreement With Turkey
Namibia and Turkey have signed a trade and economic co-operation agreement to improve trade relations and strengthen
investment opportunities. The agreement will improve Namibia’s capacity to export finished goods to Turkey. In all 5-co-operation
agreements have been signed between Namibia and Turkey since the establishment of the Turkish Embassy in Namibia in
Windhoek in 2012. Bilateral trade has reached N$96 million worth of goods traded.
[Namibian 07/11/14]
South Africa
Trade Deficit Narrows To R2.91bn In September
The shortfall on South Africa’s trade account narrowed sharply to R2.91 billion in September from a revised R16.75 billion in
August, as the import bill nearly matched that of exports. Exports in September rose by 18.2% to R90.79 billion and imports by
0.2% to R93.71 billion. The September data brings the cumulative deficit for the year to R73.74 billion, compared with a R63.07
billion gap over the same period in 2013.
[Moneyweb 31/10/14]
Trade Fairs Address China-SA Trade Imbalances
The Department of Trade and Industry noted trade between South Africa and China has been on a steady growth but remains
skewed in China’s favour. South Africa has made concerted efforts through expos and continued participation at trade fairs like
the SIAL China and the recent 5th South African Expo which toured Hong Kong, Shenzhen, Chengdu, Shanghai and Beijing
had resulted in a steady increase in exports. The expos, a flagship project for the Department of Trade and Industry [DTI], are
undertaken in order to execute South Africa’s strategic objectives focussing on the Top 10 value-added products and investment
projects to China.
One key enabler to South Africa’s industrialisation agenda is infrastructure development. South Africa will spend over R800 billion
over the next 3-years, focusing on rail, roads, energy, and communication sectors. She encouraged Chinese investors to partner
with South African companies in order to benefit from these opportunities. In 2013 total trade amounted to US$19.2 billion.
[CAJNews 21/10/14]
29
Mexico Sign Cooperation Agreements
Following a Bi-National Commission [BNC] meeting in Pretoria,
International Relations and Cooperation Minister, Maite NkoanaMashabane, and her Mexican counterpart Dr José Antonio
Meade Kuribreña signed 6-cooperation agreements aimed at
strengthening relations including an “Action Plan: South Africa and
Mexico towards a priority relationship”.
Diplomatic relations with Mexico were established in 1993 and the
South African Embassy opened in Mexico City in 1994. Mexico
has become one of South Africa’s top 3-trade partners in Latin
America and the Caribbean, while South Africa is Mexico’s largest
trade partner in Africa and largest African investor in Mexico.
[SA Government 19/10/14]
Denmark To Improve Trade
Denmark is expected to improve trade relations with South Africa
following a meeting between the 2-countries’ trade ministers
following a meeting between the Department of Trade and
Industry [DTI] and the Danish Minister of Trade and Development
Cooperation. Denmark seeks to improve trade with South Africa
by 50%.
- Total trade steadily increased: R2.9bn in 2009 to R4.8 billion
in 2013
- Total exports to Denmark from S. Africa increased: R1bn in
2009 to R1.4bn in 2011
The Ministers also discussed amongst others Bilateral Investment
Treaties and the Tripartite Free Trade Area. The Tripartite Free
Trade Area has 3-pillars, namely Infrastructure Development,
Industrial Development and Market Integration and will be
launched next month. South Africa and Denmark’s bilateral trade
and investment relations are governed by the European Union and
South Africa, Trade, Development, and Cooperation Agreement.
[Star Africa 04/11/14]
DTI Attend Cuban Trade Fair
Trade and Industry Deputy Minister Mzwandile Masina led a
delegation of 15 South African exporters to the 32nd Havana
International Trade Fair in Cuba. The aim was to place South
African products and services into Cuba and promote South Africa
as a trade and investment destination.
In 2013, Cuba ranked 153rd as a destination for South Africa’s
exports and 113th as a source of imports globally. Although South
Africa has been experiencing a trade deficit with Cuba since 2009,
the trade deficit gap is narrowed from R68 million in 2010 to R17
million in 2013.
One of the most significant agreements signed between South
Africa and Cuba is the Joint Bilateral Commission [JBC].
The objective of JBC is to strengthen bilateral relations and
cooperation between the two countries in all fields.
[Government 30/11/14]
30
SOUTHERN AFRICA
SADC / TRADE
Zimbabwe
EU Lifts Trade Sanctions
The EU announced lifted trade sanctions [Article 96 of the Cotonou
Partnership Agreement] against Zimbabwe effective 1st November, but kept
travel bans against President Mugabe and the First Lady. The lifting of trade
sanctions against Zimbabwe means that the 28-nation bloc would directly
engage with Harare on bilateral economic ties.
Furthermore a UK Trade Delegation arrived in Zimbabwe at the end of
October led by Alex Lambeth, Director of British Expertise a leading trade
organization supporting British companies overseas, with extensive global
experience in project finance, infrastructure, construction and development.
The 3-day visit engaged at Ministerial level and with heads of parastatals
discussing the realities of doing business in Zimbabwe as well as investment
opportunities.
Figures
- Trade deficit in the 9-months to
September stood at US$2.84 billion
from imports of US$4.65 billion and
exports of US$1.81 billion.
- South Africa remains the #1 export
destination followed Mozambique,
Belgium and Zambia.
- China’s is the 8th largest export market
with Zimbabwe exporting goods worth
US$6.3million.
World Bank Report On Trade
A World Bank [WB] report released last year exposed shortcomings in Zimbabwe’s trade and transport system, responsible
for pushing prices of local products to uncompetitive levels on international markets. The report, gave a gloomy picture of
the trade facilitation network, and revealed that due to the poor state of the rail network, capacity at the National Railways
of Zimbabwe [NRZ] had plunged to only 15% of its 18 million tonnes per annum potential. The cost of recapitalising rail
infrastructure alone had shot to US$2.7 billion, from US$1.7 billion in 2006.
It indicated that Zimbabwe’s failing road and rail network, which required a combined US$3.8 billion to rehabilitate, demanded
private sector involvement due to years of neglect and government’s failure to intervene. Rail transport is 60% cheaper than
road and is suitable for transportation of bulky primary commodities from Zimbabwe. But 71% of Zimbabwe’s 3,077km
rail system is in bad shape, with only 29% in stable condition. Only 17,400km of the 88,100km road network is paved and
cost effective. This presents logistical headaches for exporting industries and makes Zimbabwean products uncompetitive
compared to regional and international comparatives.
The Bank warned the government to rehabilitate the infrastructure and prepare it for anticipated boom as trade with the
European Union returns to normal. Zimbabwe needs to develop the transport corridors linking to the west coast, including the
Plumtree, North-South and Trans-Kalagadi corridors. Demand for transport is likely to rise in accordance with trade growth
and if nothing is done now to improve the transport infrastructure, the transport may not cope with future demand, thereby
becoming a major barrier to trade. It urged government to take immediate action to arrest trade obstacles, whose effects have
been a marked slowdown in exports against imports, and a widening trade deficit, which was estimated at US$3.6 billion in
2012.
Rail freight is projected to increase by 57% from 2011 to 2015 and 22% from 2015 to 2020, when full capacity utilisation of
18 million tonnes is expected. In turn this will attract private investors. Therefore government needs to further strengthen its
efforts to privatise rail services. Privatisation would also be in line with the [a global policy] which encourages governments to
grant autonomy to the railways so that they can achieve full commercialisation. High transport costs have been compounded
by inefficiencies at ports of entry, which are estimated to consume 70% of logistical expenses.
[Financial Gazette 23/10/14]
31
SOUTHERN AFRICA
PORTS
Namibia
TransNamib Appoints Manager For Turnaround Project
The board of TransNamib Holdings has appointed Johan Piek as executive turnaround project manager effective 15 October.
The company recently announced a 180 day N$400 million turnaround plan focused on a medium, term infrastructure and
revenue stream development strategy. The company has already signed an agreement with General Electric for the refurbishment
of locomotives. A medium term plan will be established to look into the refurbishment of other locomotives including the ones
TransNamib bought from China. Piek’s focus will be on the revival of the 12 GE locomotives, supporting the human resources
restructuring process, addressing the operational shortfall and long standing debt.
[Namibian 14/10/14]
South Africa
Two Terex® RMG Cranes For Durban
Two Terex® rail-mounted gantry cranes [RMGs] are now
in operation at Durban Container Terminal, run by Transnet
Port Terminals [TPT], a subsidiary of state-owned Transnet
SOC Limited. The units have a span of 22.5m, lifting height
of 11m and a lifting capacity of 41t under spreader. They will
serve the rail terminal on pier 2 replacing two 25-year-old
cranes which will increase both productivity and availability
at the rail terminal.
In the past few years, Terex Port Solutions has also supplied
50 straddle carriers and 12 heavy-duty forklifts to the
terminals in Durban, Richards Bay, Saldanha Bay and Cape
Town. TPS also recently commissioned the CommTrac bulk
terminal operating system at the Port of Saldanha Bay in
partnership with the Terex DBIS division.
[Marine Link 09/11/14]
Richards Bay Bulk Terminal Exceeds September Target
The Richards Bay Bulk Terminal, in KwaZulu-Natal, loaded 1.49-million tons of cargo in September, exceeding its monthly target
of 1.32-million tons. Transnet Port Terminals [TPT] noted an improvement in the availability of equipment. During the month, the
terminal averaged a gross vessel loading rate of 905 t/h, with some vessels having averaged 1,300 t/y, while the quick turnaround
of wagons at the tipplers also contributed to the bulk performance.
[Engineering News 20/10/14]
Port Authority Needs More Autonomy, Lean Structure
Transnet National Port Authority [TNPA] needs more autonomy and streamlining of its decision-making processes to deal
with future expansion plans including the planned Durban dig-out port, an international study has revealed. The Organisation
for Economic Co-operation and Development’s [OECD] international transport forum said the new port would require a
reconsideration of the institutional framework, including the introduction of private operators.
The study by the OECD recommends that there should be an increase in the autonomy of TNPA such as creating a separate fund
at the disposal of the port authority for infrastructure and maintenance. As the many stakeholders are dependent on the decisions
that TNPA makes with regard to investments and planning with the port, it was important that the port authority was able to act
efficiently and quickly to make binding decisions.
The report also noted the current internal organisation of TNPA within the broader Transnet structure appears to act as hindrance
with decisions slowed down by lengthy procedures of approval due to the group’s structure.
[Business Report 04/11/14]
32