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CMA CGM OFFERS NEW ONLINE CARGO INSURANCE SERVICE

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AFRICATRADE-WATCH

ISSUE 62 | JULY 2016

Contents

03 | African Group News

09 | Pan Africa

20 | Eastern Africa

13 | Western Africa

25 | Southern Africa

Regional: India Targets Africa With Bilateral Discussions / Exporters Demand EPA Despite UK Exit From EU

ECOWAS: ITC, AfDB Roundtable On Non-Tariff Measures Affecting Regional Trade / Trade Facilitation Workshop

Angola: Imports Fall 33% In Q1

Ghana: Parliament Approves US$832 Million Tax Waiver For Tema Port Expansion / New Amaris Export Terminal Commences Operations At Tema

Liberia: Monrovia Port Road Reconstruction

Morocco: Morocco Sells 40% Stake In Marsa Maroc

Nigeria: Market-Driven Exchange For The Naira / Maritime Operators Adopt Alternative Dispute Resolution Strategy / US$100 Billion From Non-Oil Exports Targeted / Ports Received 5,090 Ships in 2015 / Customs Merges Lilypond Command With Tin Can

Senegal: Senegal Strengthens Ties With Korea

Djibouti: Djibouti Port To Support China’s Africa Push

Kenya: Kisumu Port Revival Depends On SGR

Mozambique: Dredger Collides With Cargo Ship In Beira / One Million Cubic Meters Of Sediment Removed At Maputo Port

Tanzania: Tanzania Pulls Out Of EAC-EU EPA Over Brexit / 2017 Economic Growth Up To 7.4% / TMEA Gives Standards Regulator Lifeline / Task Force To Oversee Grand Bagamoyo Plan / Export Processing Zones / TPA Board Directed To Dissolve Tender Board

SADC: EU/SADC Countries Sign Africa’s First EPA After Decade Of Talks

South Africa: Guaranteed Access To AGOA Until 2025 / Transnet Pares Back Capex As Commodity Slump Impacts Demand / World Bank Ranks South Africa In Top 20 In Logistics / Transnet Announces Two Business Development Appointments / Zuma Leads Delegation To France To Promote Trade / S&P Affirms Transnet’s Investment-Grade Rating / TNPA To Add Container Capacity At Durban, Dig-Out Port On Hold / Tambo-Springs Container Terminal / Second New TNPA Tug Sets Sail For Port Elizabeth

Zimbabwe: New Regulations On Importation Of Goods

CMA CGM Strengthens EURAF 2 West Africa-Europe Service, Enhanced Service Rotation Now Calling Benin / CMA CGM Strengthens East African Services, Reorganises Links To India And Middle East Gulf / CMA CGM Offers New Online Cargo Insurance Service: Secure Your Business With A One Stop Shop Solution

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AFRICATRADE-WATCH

ISSUE 62 | JULY 2016

ANGOLA - The second 175MW turbine at the Cambambe II

hydroelectric project should be operational within 2-months. When complete the US$2b hydroelectric dam will produce 960MW of electricity.

BURKINA FASO - Endeavour Mining held a groundbreaking ceremony at

its Houndé gold project on Thursday. More than 10,000 attended inc the President & PM.

COTE D’IVOIRE - DekelOil Public Ltd now holds 85.75% of the company

that owns the Ayenouan palm oil plant up from 51% in a deal worth £12.8m.

GABON - Presidential elections to be held on August 28th.

GUINEA - Rio Tinto has shelved its US$20b Simandou iron ore

project in Guinea because of a sustained slump in prices.

MALI - Hummingbird Resources has entered into a MoU to

combine noncore exploration permits in Mali with Kola Gold’s permits in Mali and Senegal to establish a new company Cora Gold [Kola 57% / Hummingbird 43%].

Western AfricaBOTSWANA - Tlou Energy announced its Lesedi CBM project would

be fast-tracked for development and probably expanded beyond the 10MW originally envisaged to 50MW, following and offtake agreement with the government.

ETHIOPIA - Dongfang Electric Corporation Limited in conjunction

with The Ethiopian Electric Power Utility is set to construct an 80 turbine wind farm in Ethiopia’s Somali Region at a cost of US$257m.

KENYA - Kenya is to start the construction of an 865km oil pipeline

linking fields in its northern region to a new Indian Ocean port. The government is evaluating bids for the pipeline’s design and will award a front-end engineering design contract in October.

MOZAMBIQUE - ExxonMobil Corp. is considering buying stakes in

Mozambique’s natural gas sea blocks. China National Petroleum Corp. group acquired an indirect 20% stake 3-years ago in Area 4 block from ENI for US$4.2b.

- The Government of India has submitted a proposal to its Mozambican counterpart to sign a 5-year contract to purchase pigeon peas (toor dal) at a guaranteed minimum price of 5050 rupees per quintal.

Eastern & Southern Africa

Events Diary

News Briefs

July 201619-24 33rd FILDA - INTERNATIONAL FAIR OF LUANDA (Luanda, Angola) http://www.fil-angola.co.ao/pt/noticias/354-filda-2016-fase-promocional

August 201625-31 Feira Internacional de Maputo (FACIM) 2016 (Luanda, Angola) http://www.facim.org.mz/

September 201612-16 Electra Mining 2016 (Johannesburg, South Africa) http://www.electramining.co.za/EN/Content/Pages/Home

14-18 Africa Aerospace and Defence 2016 (Tshwane, South Africa) http://www.aadexpo.co.za/

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Website: www.cma-cgm.comEmail: [email protected]: @CMA_CGM_Group

CMA CGM Marseille Head Offi ce4, Quai d’Arenc 13235 Marseille cedex 02 France

Tel : +33 (0)4 88 91 90 00

www.cma-cgm.com

Disclaimer of LiabilityThe CMA CGM Group 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 the CMA CGM Group 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.

THE TRADE & TRANSPORT REPORTBrought to you by CMA CGM Africa Marketing

Rachel Bennett Dominic Rawle

CMA CGM Strengthens West Africa-Europe ServiceCMA CGM has made a number of service enhancements with new port rotations and an increase in capacity on some of its services connecting Europe to strategic markets in West Africa.

Enhanced EURAF 2 Rotation Now Calling BeninCMA CGM has improved port coverage on its EURAF 2 service which connects the West Africa Central range with Europe and the Mediterranean. From 22nd July the EURAF 2 service will add a direct call at Cotonou, Benin, every Monday. The new rotation will call Tanger, Algeciras, Cotonou, Apapa, Tin Can/Lagos, Tema and back to Tanger. This service is operated with 4 vessels up to 3,500 TEU. The new rotation will start with m/v IRENES RAINBOW voy. 12582S calling at Tanger on July 22nd and Cotonou on 1st August. In parallel, the current Cotonou call on EURAF 4 will be discontinued, from m/v WESTERMOOR voy. 13578S, starting her rotation in Malta on July 15th, 2016.

Upgraded EURAF 4 With Increased Capacity, Focus On Equatorial Guinea CMA CGM will increase capacity on its EURAF 4 service connecting Europe to Central West African markets. Starting 26th July, under a new Vessel Sharing Agreement, CMA CGM will contribute 6 vessels to a fleet of 8, which will upgraded the current 2,500 TEU capacity to 3,100 to 3,500 TEU.

The EURAF 4 service will also be improved with new calls at Bata and Malabo. The existing Equatorial Guinea Express service will be discontinued from MV GISELE A ETA Algeciras July 18th.

This will enable CMA CGM to offer a direct service from the West Mediterranean to Equatorial Guinea with a transit time reduced by up to 6 days. Bata will be reached from Livorno in 20 days and Malabo from Valencia in just 19 days.

The new rotation will be Livorno, Genoa, Marseilles, Barcelona, Valencia, Algeciras, Tangiers, Lome, Bata, Malabo, Onne (fortnightly), Port Gentil, Libreville, Lome NB (fortnightly), San Pedro (fortnightly), Algeciras, Livorno.

http://www.cma-cgm.com/products-services/line-services/

flyer/EURAF2


flyer/EURAF4

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AFRICAN GROUP NEWSCMA CGM

Improved EURAF 6 Service With Direct Cameroon CallFrom 26th July the EURAF 5 service will add a direct call at Douala, Cameroon, serving the markets of Northern Europe. CMA CGM will now offer a fortnightly call with a transit time shortened by 5 days. The new rotation will be Le Havre, Antwerp, Lisbon, Tangiers, Algeciras, Pointe Noire, Luanda, Lobito (fortnightly), Namibe (fortnightly), Douala (fortnightly), Abidjan, Tangiers NB, Le Havre.

Advantages - One of the best transit times on the market serving Douala from Antwerp in 28 days, and from Le Havre in 29 days - Douala exporters will benefit from fast and direct transit times to North Europe: Northern France will be reached in 16

days, and Antwerp in 17 days - Lobito and Namibe calls have a fortnightly frequency and will alternate with Douala


flyer/EURAF5

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CMA CGM Strengthens East African Services, Reorganises Links To India And Middle East GulfIn a continued effort to increase reliability and provide quality services CMA CGM will, from mid-July 2016, reorganize its services connecting India and the Middle East Gulf to strategic markets in East Africa.

NOURA EXPRESS - This service will add calls at Mundra [Gujarat State, India] and Port Victoria [Seychelles] on its rotation. - A call at Salalah port [Oman] will be cancelled. - This service is operated with 4 vessels of 2,200 TEU. - Effective m/v MARIE DELMAS voy. 1339WS calling Mundra ETA 24th July & m/v CMA CGM LATOUR voy. 1299WS calling

Port Victoria on 31st July.

NEW COVERAGE: Nhava Sheva, Khor Fakkan, Jebel Ali, Longoni, Dar Es Salaam, Zanzibar, Nacala [fortnightly], Nhava Sheva


flyer/NOURA

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SWAHILI EXPRESS - This service linking India and Middle East Gulf to Tanzania will be revised to improve punctuality. Zanzibar is experiencing

challenging operational conditions with heavy port congestion which has had a negative impact on scheduling. - To restore reliability Mundra and Port Victoria calls are to be moved to the Noura Express which has sufficient buffer time. - This service is operated with 6 vessels up to 2,700 TEU. - Effective with m/v DELMAS KETA voy. 1192SS calling Nhava Sheva ETA 21st July.

NEW COVERAGE: Mundra, Khor Fakkan, Jebel Ali, Mombasa, Mogadishu, Port Victoria, Mundra


flyer/SWAX2

BENEFITS - Positive developments for reefer cargo from Port Victoria direct to

India and to Europe with a weekly frequency instead of fortnightly. - Improved service reliability to Mogadishu from Mundra with direct

service in 18 days instead of in transhipment, very fast transit time from Jebel Ali to Port Victoria in 18 days. 6

CMA CGM Offers New Online Cargo Insurance ServiceSecure Your Business With A One Stop Shop SolutionWith a one stop shop offer to facilitate your shipping experience, CMA CGM, in partnership with one of the largest marine insurance companies in the world, has developed a Unique Cargo Insurance Program to cover the unexpected and unforeseeable events that may lead to loss or damage of your cargo.

Since June, 20th 2016, this offer is also available in the CMA CGM eBusiness Platform. This new feature gives you the possibility to insure your cargo online, during your e-booking process.

Online booking advantages - From any computer, tablet, or smartphone - At any time 24/7 - An all risks coverage for your cargo in one click (in step 5)

Protect your valued cargoThe best cover - From one-off shipments to regular traffic - Door to door coverage is available - No Excess / No deductible - Cover up to the full cost insurance and freight (CIF) value + 10%

The best price - The lowest rates negotiated with First class insurers - A price that isn’t influenced by your claims records

The best service - A One Stop Shop offer: freight+insurance - A Simple and Quick Process for claims and a payment within one month

Our eBusiness platform - Access this additional service with your eBusiness account or create an account in 3 minutes

For more information - For more information or if you would like an insurance quote, please contact your regular CMA CGM agent. - Visit our Cargo Insurance Web Page to discover our All Risks Insurance coverage and to download our brochure

http://www.cma-cgm.com/products-services/cargo-insurance7


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Proposing a cargo insurance solution provides our customers with an additional valuable service. With this unique “One-Stop-Shop” offer, we make their life easier. Our Insurance expertise is a real differentiation from our competitors. Let us take care of your cargo, while you focus on your business.

François de GARAM, Manager CMA CGM Cargo Insurance Department

8

RegionalIndia Targets Africa With Bilateral DiscussionsEver since the 3rd India-Africa Forum Summit [IAFS] in October 2015, where India pledged US$10 billion in soft loans over the next 10-years and US$600 million in grant aid to Africa, Indian President Modi has been building bridges with the Continent, soliciting support for a host of multilateral initiatives. Last month saw an unprecedented intensification of that relationship with Vice President Hamid Ansari visiting Tunisia and Morocco where he inaugurated an India-Morocco Chamber of Commerce and President Pranab Mukherjee completing a whirlwind tour of Western and Southern Africa, covering Ghana, Cote d’Ivoire and Namibia.

Exim Bank / Kukuza Project Development CompanyThere has been a strategic shift in India’s development diplomacy for the continent. Exim Bank, for example, is likely to focus more on service exports now, rather than compete with China for infrastructure projects in Africa. Exim Bank is looking to disburse US$10 billion in Africa over the next 3-years as both commercial and concessional credit. Service exports aim to build on India’s traditional strengths in Africa to include agriculture, healthcare, education and information technology services. Exim Bank has been extending credit to Africa through concessional Lines of Credit, Buyer’s Credit [meant to finance imports of overseas buyers, in this case African buyers, from India] and through other lending mechanisms.

In June President Mukherjee inaugurated Exim Bank’s new office in Cote d’Ivoire which will service West Africa. It has an office in Addis Ababa [Ethiopia] for the Eastern and Central African region, in addition to the one in Johannesburg to take care of the needs in Southern Africa. Exim Bank has set up Kukuza Project Development Company [KPDC] in Nairobi [Kenya], along with IL&FS Group, African Development Bank and State Bank of India, to ensure greater Indian participation in infrastructure projects in Africa. The aim now is to kick-start KPDC’s operations.

Exim Bank has extended around US$300 million to finance the setting up of electric transmission lines in West Africa and is ready to give another $200 million for the same, he said. It is also helping African countries import vehicles and automobile equipment from India and in setting up of sugar factories.

Prime Minister Modi’s VisitAnd this month Prime Minister Narendra Modi visited Kenya, Mozambique, Tanzania and South Africa. The man behind the ‘Make in India’ campaign focused on trade as well as investment and geopolitical connections. India wants to be a maritime leader in the Indian Ocean and because these countries are strategically located on Africa’s east coast, they are of great importance to New Delhi. During his 5-day tour hydrocarbons, food security, trade, maritime cooperation and diaspora interactions ranked high on the Prime Minister’s agenda.

FIGURES - India-Africa goods trade in 2014 was US$75 billion - Africa exported US$40 billion and India exported US$35 billion - Trade fell in 2015 to US$60 billion - Africa exporting US$34 billion and India exporting US$26 billion

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PAN AFRICA

TRADE

Mozambique PM Modi, the first Indian leader to visit Mozambique in 34 years, held wide-ranging talks with President Nyusi. Major Indian companies like Tata Steel, Jindal Steel and Power, the Essar group, Coal India and Damodar Ferro play a key role in the Mozambique economy and have invested in coal, iron ore and other minerals. And if investments in the gas sector come to fruition, Mozambique could become a source of liquefied natural gas for India that would rival Qatar. An additional interest for India is Mozambique’s strategic location on the Indian Ocean. With a 2,500 km coastline and dominance of 2-key maritime ports Mozambique is a perfect fit into New Delhi’s drive to build strong security relations with key littoral nations. Modi noted the development of Beira port as part of this policy.The 2-countries signed 3-pacts, including a significant “long-term agreement” under which India will buy pulses. Essential medicines, including those for treating AIDS, are to be donated by India. India will also help build capacities of Mozambique’s security forces.

Tanzania Held bilateral discussions with President Magufuli. Modi extended India’s full support to Tanzania to meet its development needs and signed 5-agreements, including one for providing a Line of Credit of US$92 million in the water resources sector for rehabilitation of Zanzibar’s water supply system. The 2-nations agreed to deepen partnership in agriculture and food security, including through enhanced export of pulses from Tanzania to India. They also decided to work together in development and use of natural gas. Agreements were made on visa waiver for diplomatic/official passport holders and between the National Small Industries Corporation of India and Small Industries Development Organisation Tanzania. India also handed over a navigational chart of Mkoani harbour which will be used by Tanzanian port authorities and ships for the navigation operation. Indian Hydrographic Survey Ship, ‘INS Sutlej’ had conducted a joint hydrographic survey of Mkoani harbour, Tanzania in early 2016. And Modi met ‘Solar Mamas’, a group of female solar engineers trained under Government of India-supported programs to fabricate and install solar lanterns.

Kenya This is the first prime ministerial visit from India to Kenya in 35 years after the visit of then Prime Minister Indira Gandhi in 1982. Modi attended a Kenya-India Business Forum and held bilateral discussions with President Kenyatta aimed at boosting ties. Both addressed the Indian community at the Safaricom Kasarani stadium asserted his aim to take India’s growth rate to beyond 8%. Currently India exports goods worth Sh116 billion against Kenya’s Sh4 billion.

South Africa Both countries laid firm emphasis on bolstering cooperation in several key areas, including IT, renewable energy and pharmaceuticals as well as manufacturing, mines and minerals. India-based global pharmaceutical company Cipla is to invest US$19.3 million into a new factory in KwaZulu-Natal to produce biosimilars. Meanwhile President Zuma welcomed the relaxation of foreign direct investment rules through the lifting of the caps on foreign direct investment in 9-sectors of the Indian economy including the defence, food retail, local airlines, private security firms and pharmaceutical sectors. Zuma invited the private sector of India to invest in various sectors of South Africa’s economy and took note of the opportunities for South African companies under the “Make in India” initiative. India and South Africa inked 8-MoU and 1-Programme of Cooperation. With 1.3 million people of Indian origin in South Africa, Modi also addressed a large gathering of the Indian dispora in Johannesburg and Nairobi. India is now South Africa’s 6th largest trade partner, with 2-way trade reaching US$5.3-billion in 2015-16. Bilateral trade has in fact grown 380% in the last 10-years The 2-countries have set a target of advancing bilateral trade to US$18-billion by 2018. 10

Regional

Exporters Demand EPA Despite UK Exit From EUMajor exporters to Europe are impressing on African governments to sign the Economic Partnership Agreement [EPA] in countries such as Ghana despite the exit of the UK from the European Union [EU]. It is much too early for exporters to know how this will impact on businesses and trade. Even most businesses in the UK do not know how this will impact their businesses and how long this whole negotiation will take. But the reality is that on October 1, if Africa does not have any arrangement with the EU, traders will have difficulties exporting to the EU region including the UK.

On 23rd June Britain, in a referendum, voted to exit the EU over concerns of the Union’s excessive control over the lives of citizens. The move has since generated a lot of reactions from various markets particularly on the forex markets within Europe. A disentanglement will take a while to work itself out so countries need to continue with what arrangements they have as far as marketing is concerned until such a time that the situation becomes clearer. Although some have argued to re-engage with the UK over its trade agreements. Many businesses are of the mind to watch and see how this whole development rolls out.

[All Africa 27/06/16]11

PAN AFRICA

TRADE

ECOWASITC, AfDB Roundtable On Non-Tariff Measures Affecting Regional TradeRepresentatives from trade ministries of the Economic Community of West African States [ECOWAS], the International Trade Centre [ITC], and other trade, customs and regional organizations met in Abidjan 14-15th June to discuss ways of removing regulatory and procedural non-tariff’ obstacles to regional trade.

The roundtable, co-organized by the African Development Bank and ITC, was attended by Jean-Louis Billon, Côte d’Ivoire’s Minister for Commerce; Aicha Pouye, ITC’s Director of Business and Institutional Support, and delegates from the 15 ECOWAS countries.

ITC presented insights on obstacles to regional trade within the ECOWAS bloc drawn from national business surveys on non-tariff measures [NTMs] in Benin, Burkina Faso, Côte d’Ivoire, Guinea, Mali and Senegal. These surveys, which collectively document the experiences of nearly 2,000 exporters and importers, capture the trade-related challenges encountered at the product and partner country level by companies, especially small and medium-sized enterprises [SMEs].

NTMs cover measures such as sanitary and phytosanitary standards [SPSs], technical barriers to trade [TBTs], price control measures, import and export licensing, inspections, as well as rules determining the origin of goods for the purposes of tariff treatment.

The trade landscape of the 21st century is one characterized by low tariffs with the average global applied tariff reflecting around 5% of the cost of trade, while non-tariff measures may account for roughly 30% of international trade costs. It is important to identify these measures and focus on where barriers can be alleviated and regional harmonization accomplished. This will serve not only to boost inter- and intra-regional trade, but to make the region more attractive to investment.

The discussions focused on setting up a framework and an action plan to alleviate non-tariff restrictions to boost Africa’s regional integration agenda, one of the five pillars of the Bank’s High 5’s vision. Participants looked at trade integration initiatives in the region; and analyzed high priority obstacles to intra-regional trade identified by governments and other regional stakeholders. The 6-NTM surveys will serve as a basis for identifying key challenges and agreeing on concrete action at the national and regional levels to help address the obstacles as a means to further facilitate regional trade integration.

[AfDB 16/06/16]

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COUNTRIES NEED TO - Diversify and increase their portfolio of exports - Set up trade obstacle alert mechanisms - Standardize technical and regulatory requirements

13

WESTERN AFRICA

ECOWAS, TRADE & TRANSPORT

ECOWAS

.Trade Facilitation WorkshopA workshop on trade facilitation of the Economic Community of West African States [ECOWAS] was held in Accra, Ghana. The event, held under the ‘Improved and Facilitated Trade in West Africa Project’ and under the auspices of ECOWAS and the World Bank Group, aimed at unlocking the transit challenges across key trade corridors in West Africa.

The event brought together stakeholders along the trade corridors to share best practices in implementing reforms that facilitate trade. Main themes included: enhancing the flow of transit trade by managing trade corridors, efficient ports and effective border crossings; customs information exchange mechanisms between neighbouring countries; increasing transparency of trade procedures; and promoting collaboration between national border agencies. The intended outcome was to discuss and agree on a reform action plan to improve trade facilitation along the main corridors.

Over 40 participants, including representatives from the ECOWAS and the West Africa Economic Monetary Union [WAEMU] Commissions, the European Union, the World Bank Group, and stakeholders from the public and private sectors along the 3-main trade corridors in Benin, Burkina Faso, Côte d’Ivoire, Niger, and Ghana, attended.

[Joy 09/06/16]

Improved & Facilitated Trade In West Africa Project - A 4-year initiative that was launched in November 2014. - The €3.5 million project seeks to support ECOWAS to improve trade in the West African region and, specifically,

transit trade along the region’s major trade corridors. - Focuses on reducing the time and cost to trade - Increasing border agency cooperation and coordination - Encourages a better flow of goods within the region, and with international trading partners

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AngolaImports Fall 33% In Q1Products imported by Angola in Q1 2016 amounted to 1.598 billion tons, a decrease of 33.26% compared to 2.395 billion tons recorded in Q1 2015. Of the top 10 most imported products seven are from the food sector, including sugar, palm oil, grain flour and pasta. In the period, China continued to be Angola’s main trading partner, despite having seen a decline of over half of its exports. Portugal also exported 44.63% less to Angola and remained in second place with South Korea in third position in a list that also includes Spain, Turkey, Brazil, Belgium, Thailand and India.

[Macauhub/AO/CN/PT 24/06/16]

NigeriaMarket-Driven Exchange For The Naira The Central Bank of Nigeria has allowed the Naira to float freely following a June 15th announcement that it would let a market-driven exchange rate alleviate the dollar shortage that has strangled companies and contributed to economic contraction. The Naira had been pegged at 197-199 Naira to the US dollar for 15 months but has now been abandoned after contributing to a crippling shortage of dollars in a country that is heavily dependent on imports. The new system should reduce the shortage of foreign exchange in the economy and – in the long run – reduce strains in the balance of payments by discouraging imports and boosting export competitiveness.

[Telegraph 20/06/16]

Maritime Operators Adopt Alternative Dispute Resolution StrategyOperators in the maritime sector have adopted new strategies to provide efficient alternatives for dispute resolution of maritime disputes in Nigeria through of arbitration proceedings and other viable methods. The Maritime Arbitrators Association of Nigeria [MAAN] will serve as arbitrators of disputes arising in businesses involving all aspects of maritime, energy and related activities.

[Guardian 01/07/16]

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WESTERN AFRICA

ECOWAS, TRADE & TRANSPORT

Nigeria

.US$100 Billion From Non-Oil Exports TargetedAs Nigeria moves towards diversifying its economy, the Nigerian Export Promotion Council [NEPC] has set a long-term target of achieving US$100 billion earnings from non-oil exports or 20% of today’s GDP. In this vein the NEPC presented a paper, “The ‘Zero Oil Plan and Export Revolution” during a dialogue on economic diversification which aims to broaden the country’s resource base.

In the past 2-years, crude oil prices have fallen 60% and Nigeria’s earnings have likewise fallen by at least US$35 billion, inevitably leaving an economic hole. The pressing question now is how to fill this funding gap, and the answer is simple: Nigeria must quickly find an alternative to oil revenue. Nigeria’s long term goal is further broken down into 2-mid-term targets; to grow non-oil exports from US$5 billion to US$18 billion by 2019 and US$30 billion in non-oil exports by 2025.

Export 21 ProgrammeThe zero oil plan identifies 21 priority countries as markets for Nigerian products, termed “Export 21”, and 11 strategic export products with high financial value to replace oil. These include petrochemicals, palm oil, cocoa, soybeans and rubber, to name few. To achieve this, Nigeria must scale up domestic production to levels unprecedented and create competitive channels to move cargo and get goods into foreign markets. The plan envisages increases in total non-oil export volumes in Nigeria which should grow by 70 million tonnes, clearly a logistical challenge that would require upgrades on major transport corridors to get goods from Nigeria’s hinterlands in every single state of the federation to ports in Lagos, Port Harcourt and Calabar.

One-State-One Product Programme The NEPC has asked each state to select one priority export product under its campaign: ‘One-state-one product programme,’ adding that if each state, including the Federal Capital Territory [FCT], can key in to the scheme, Nigeria already has at least 37 non-oil exportable products.

[Leadership 09/06/16]

SenegalSenegal Strengthens Ties With KoreaThe newly established Korea-Senegal Commerce, Industry and Culture Association [KOSECICA] held its first meeting at the Korea-Africa Center in Seoul. The KOSECICA was established to strengthen ties between Korea and Senegal by promoting economic, social, cultural and educational cooperation.

[Korean Herald 13/06/16]

16

GhanaParliament Approves US$832 Million Tax Waiver For Tema Port ExpansionThe Ghana parliament has approved a US$832 million tax waiver for Tema Port expansion project. Meridian Port Services [MPS] which is funding the project under a Public-Private-Partnership [PPP] program, is one of 3-companies involved in a Joint Venture [JV] with the Ghana Ports and Harbors Authority [GPHA] to undertake the Tema Port expansion. The tax concession is intended to ease effects of the investment risk and sustain the project’s attractiveness to the financiers and other key players.

MPS had asked for US$982 million tax waiver in respect of Value Added Tax, Customs Duties, Corporate and Withholding Taxes, NHIL and other applicable taxes. The waiver will apply on materials and equipment. Other related taxes will also be included for the design, finance, construction, equipping and operation of the Tema Port Expansion Project. Other exemption includes corporate income tax for 10-years after date of first commercial use of the facility, reduced corporate tax of 15% after 10-years for a period of 5 years as well as exemption of tax on dividend for the 20-years to come for both resident and non-resident shareholders.

The state will however, enjoy a total amount of US$5.71 billion consisting of tax and non-tax revenue from the project’s operations. However, 33% of the amount will be direct to savings. Government of Ghana will accrue 18% while 7% will be collected by the Ghana Revenue Authority and SSNIT. 42% will be handed over to GPHA in form of royalties and dividends.

Through equity, MPS will finance the project with long-term loans and has mandated the International Finance Corporation [IFC] of the World Bank Group to arrange and structure the project’s finance.

A concession agreement between the GPHA and MPS has been structured which obliges the latter to finance, design, engineer, construct and operate the new port facility in Tema for a period of 25 years after the date of first commercial use. The port has seen traffic steadily grown from 9.25 million MT in 2010 to 15.87 million MT in 2014, a growth indication of about 71.5% for the last 5-year period.

[08/06/16 Construction Review]

New Amaris Export Terminal Commences Operations At TemaA new ultramodern export terminal called the Amaris Terminal has opened for business. The facility is a Public Private Partnership [PPP] between the Ghana Ports and Harbours Authority [GPHA] and Jospong Group of Companies. As a 100% Ghanaian Company, Amaris Terminal is licensed by the GPHA to operate as an export terminal at the Tema Port and provides container storage and handling, container repairs and maintenance, container sales and leasing, trucking, warehousing, stuffing of export cargo and container scanning.

[Ghanaweb 29/06/16]

The new export terminal sits on some 50,000m2 of land with a yard capacity of 4,000 TEU. It is a first class facility including container repair workshop, container stacking and stuffing yard and modern equipment. We are working with Nick TC Scan, to have a mobile scanner on the terminal so containers that are stored in terminal are scanned before they are transported to the ports.

Alex Atakorah, Managing Director of Amaris Terminal

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WESTERN AFRICA

PORTS

LiberiaMonrovia Port Road Reconstruction The National Port Authority [NPA] has commenced the construction of 2.4 miles of road within the Freeport of Monrovia to resuscitate the port sector. Designated unpaved roads, drainages lights and sidewalk within the port are currently being reconstructed and rehabilitated. The contract was awarded following an International Competitive Bidding [ICB] process.

[FPA 14/06/16]

MoroccoMorocco Sells 40% Stake In Marsa MarocThe Government of Morocco has raised US$197 million from selling a 40% stake in Marsa Maroc via an initial public offering [IPO] on the Casablanca stock exchange. According to a financial disclosure, the offer was oversubscribed and the IPO for Marsa Maroc closed prematurely in late June.

The state-owned port and terminal operator was established in 2006 and manages terminals at 9-Moroccan ports from Nador and Tanger in the north to Ad Dakhla in the south and provides logistic services. It also operates a major container terminal at Casablanca, as well as smaller container facilities in other national ports. The port operator is seeking funds for expansion as it plans to bid for two other terminals at Casablanca Port and is looking for opportunities elsewhere in North and West Africa.

The recent IPO comes five years after initial plans to partly privatize Marsa Maroc, which were stopped at a fairly advanced stage in 2011. The offering would be the first IPO this year in Morocco and the first ever for a privatisation. It could help revive Casablanca’s stock market, which has suffered from the knock-on effects of the euro zone crisis and a lack of foreign investors.

[Reuters 28/06/16]

18

NigeriaPorts Received 5,090 Ships in 2015About 5,090 oceans going vessels with a Gross Tonnage [GT] of 144.20 million tonnes called at the Nigerian ports in 2015. The annual report of 2015 released by the Nigerian Ports Authority [NPA] showed that all the ports recorded a decrease in gross tonnage of cargos received during the year.

2015 gross tonnage 2015 v 2014 2014 gross tonnage

Delta Port Complex 7.5m tonnes -33.5% 11.3m tonnes

Rivers Port Complex 4.4m tonnes -29% 6.2m tonnes

Lagos Port Complex [LPC] 21.3m tonnes -3.9% 22.2m tonnes

Tin Can Island Port 16.2m tonnes -7.1% 17.5m tonnes

Calabar Port Complex 2.1m tonnes -9.2% 2.3m tonnes

Onne Port Complex 26.5m tonnes -1% 26.8m tonnes

Meanwhile, the cargo throughput for the year stood at 195.9 MT which showed a marginal increase of 0.8% over the 194.4 million achieved in 2014. Cargo throughput is the total volume of cargo [inward and outward] handled in all the port locations during the period under review.

[Daily Trust 06/07/16]

Customs Merges Lilypond Command With Tin CanThe Comptroller-General of Customs, Hameed Ali, has approved the re-designation of Lilypond Command of the Nigeria Customs Service (NCS), Ijora, Lagos as Tin Can Island Port II. This re-designation places Lilypond Command under the Tin Can Island Port Command, which is the second highest revenue generating command of the NCS. Lilypond Terminal has suffered from low activity for more than 2-years as a result of low cargo volume.

[Guardian 06/07/16]

19

WESTERN AFRICA

PORTS

TanzaniaTanzania Pulls Out Of EAC-EU EPA Over BrexitTanzania’s Permanent Secretary for foreign Affairs Dr Aziz Mlima said his country would not sign an Economic Partnership Agreement (EPA) between East Africa Community (EAC) and European Union (EU) citing ‘turmoil’ in the EU occasioned by the impending exit of the United Kingdom. The decision, announced on 8th July, has come as a shock to other members of the EAC. The agreement between the EU and EAC was scheduled to be signed on 18th July. Dr Mlima said signing the pact would risk exposing young EAC countries to harsh economic conditions given the prevailing conditions in Europe. The move was aimed at protecting the country’s infant economy now that the government was spearheading the establishment of an industrial economy.

According to observers, Tanzania’s pull-out from the EU-sponsored economic agreements will likely spell a big blow to neighbouring Kenya, a member of the EAC bloc which had intense interest in the deals as they benefited its flower exports to EU countries. The move has contradicted a ministerial meeting in Nairobi on June 30 in which all the 5-partner states agreed to sign the document on the sidelines of the UNCTAD conference. Apart from Kenya, the other 4-EAC member States - Tanzania, Rwanda, Burundi and Uganda - which are still classified as least developed countries (LDCs) will not be affected by this development as their low economic status allows them to access the EU market tax-free.

[Daily News 10/07/16]

2017 Economic Growth Up To 7.4% Tanzania’s central bank expects economic growth to accelerate to 7.4% in 2017 from an estimated 7.2% this year, driven by construction, communications and finance. Last year it grew 7%. The bank will continue pursuing a prudent monetary policy in 2016/17 to keep inflation close to the medium-term target of 5%, while ensuring that the liquidity level is consistent with demands of various economic activities. The government plans to increase spending by 31% in its 2016/17 fiscal year to US$13.51 billion to finance infrastructure and industrial projects.

[Reuters 28/06/16]

TMEA Gives Standards Regulator LifelineTrademark East Africa [TMEA] has provided US$3 million to the Tanzania Bureau of Standards [TBS] to strengthen standardisation and conformity assessment in Tanzania. The funds whose agreement was signed in Dar es Salaam 30th June extends TMEA’s support to TBS with the aim of increasing efficiency and effectiveness of the firm in the development and implementation of standards in Tanzania.


20

EAC, COMESA & TRADE EASTERN AFRICA

DjiboutiDjibouti Port To Support China’s Africa PushChina is eyeing the small but strategically located nation of Djibouti as a springboard to strengthen commercial ties with Africa, including breakbulk cargo shipping, through its Belt and Road overseas trade initiative. Djibouti’s strategic location – with easy access to several of Africa’s fastest-growing frontier markets and proximity to Middle Eastern ports – has been one of the primary factors underpinning China’s interest in the country’s transport infrastructure

Djibouti has recently inked an agreement with China to streamline the East African country’s Customs systems, in a bid to consolidate its position as a logistics and trade centre for the region. The agreement comes as Djibouti channels some US$14 billion of investment – including over US$1 billion of concessional financing from Chinese banks ¬– for a spate of major infrastructure projects, ranging from free trade zones to a new railway and port facilities. A liquefied natural gas or LNG terminal, a wharf for livestock carriers and a 2-km2 development incorporating a trade logistics park and exportable goods processing zone will be built by 2020 in or near the Djibouti port and free trade zone by state-owned China Merchants Group. China Merchants is a port, logistics and financing conglomerate that bought 23% of the Port of Djibouti in 2012. It also owns port stakes in Hong Kong, Shenzhen, Ningbo, Shanghai and other Chinese cities. And its overseas investments include ports in Turkey and Nigeria.

At a June forum in Shanghai, China Merchants General Manager Hu Jianhua called Djibouti a strategic East African country for his and other Chinese companies that are expanding in the region, and a port at the southern end of the Red Sea with the potential to become a regional shipping center.

Djibouti government officials at the forum signed a port development agreement with officials from China Merchants and northern China’s Port of Dalian. A recent China Merchants financial report said the firm boosted its Djibouti investments by 15% last year.

[Break Bulk 210/6/16 & Oxford Business Group 16/06/16]21

EASTERN AFRICA

PORTS

FACTBOX

Djibouti Silk Road Station & Unified Customs SystemIn January China signed an agreement with Djibouti to create a “Djibouti Silk Road Station”, which will expand the country’s trade and logistics capabilities and turn the Port of Djibouti into a key entry point for Africa.

According to the Djibouti Silk Road Station Construction Cooperation Framework Agreement, the 2-countries will create a unified Customs system to improve efficiency and reduce trade costs, establish a transit trade centre to manage export processing and distribution and set up a currency clearing system to promote China-Africa trade. The agreement also calls for a joint venture company to be set up to operate the facility.

The joint initiative will help Djibouti to further increase its share of regional trade – currently, the country handles roughly 95% of neighbouring Ethiopia’s inbound trade, for example, a market of some 95 million people – but also the country aims to become a gateway to South Sudan, Somalia and the Great Lakes region.

The Djibouti Silk Road Station is part of China’s One Belt, One Road [OBOR] initiative launched in 2013 which aims to create a new Silk Road, by developing trade routes and links that connect China to over 60 countries in Asia, the Middle East, Europe, South-east Asia and Africa. China will inject at least US$62 billion into the initiative, expected to link a total market of 5.1 billion.

Doraleh Multipurpose Port ExpansionChinese companies are developing port facilities in Djibouti, such as the expansion of the Doraleh Multipurpose Port [MPP], which is estimated to cost US$590 million and be operational by 2017. The DPFZA is also working on inaugurating five more port facilities, including several with dedicated facilities for specialty cargo, such as livestock and minerals, over the next 5-years.

Djibouti Free Trade ZoneLast March the DPFZA also announced an agreement with China Merchants Holdings – China’s largest public port operator – to develop a US$7 billion free trade zone [FTZ]. The 3500-ha FTZ is set to be the largest in Africa and will target diverse industries such as ICT, electronics, light industry and construction, along with hosting a transit site for import-export companies. The new FTZ will absorb Djibouti’s current 17-ha free trade area.

Djibouti-Ethiopia Rail [SGR] ProjectThe China Railway Group and China Civil Engineering Construction Corporation [CCECC] are leading the construction of a US$4 billion rail line linking the country’s ports to land-locked Ethiopia. The 750-km rail link, which is nearing completion, is set to significantly cut travel time to Addis Ababa and boost imports from and exports to Ethiopia. Currently, goods transported from the Port of Djibouti to Ethiopia arrive by road, in some cases taking as long as two days to cross the border and leading to significant congestion. The new railway should bring that to less than 10 hours.

New AirportsBoosting Djibouti’s air transport sector has also been a priority for the 2-countries. Two new airports, financed by the CCECC, are being built for a combined investment of US$599 million. The larger of the two facilities – slated for completion in 2018 – will be located 25 km south of Djibouti City and will handle 1.5 million passengers and 100,000T of cargo. The second facility, located in the north, will have a capacity of 767,000 passengers per year.

22

KenyaKisumu Port Revival Depends On SGRAccording to the Kenya Ports Authority [KPA] the revival of Kisumu inland port on Lake Victoria will depend on the completion of phase two of the Standard Gauge Railway [SGR]. Phase two of the 487-km project from Nairobi to Malaba through Kisumu county will also revive the Inland Container Depots [ICD’s] in Kisumu. A new routing has been approved from Naivasha, Narok, Nyamira, Kisumu and Malaba.

[Star 22/06/16]

MozambiqueDredger Collides With Cargo Ship In BeiraThe dredging vessel “Macuti”, owned by the Mozambican Dredging Company [Emodraga], on 26th June collided with a cargo ship in the access channel to the central Mozambican port of Beira. The hull of the “Macuti” was beached in the collision. A team from Emodraga, the Mozambique Port and Rail Company [CFM], the National Naval Institute [INAMAR] and the Beira Maritime Administration worked to refloat the dredge, and prevent it from sinking. The loss will be a blow to the port as the access channel needs to be continually dredged in order to maintain a depth that allows large ships to enter and leave the port.

[AIM 28/06/16]

One Million Cubic Meters Of Sediment Removed At Maputo PortDredging work to deepen the access channel of Maputo port has already removed 1-million cu.m of sediment, a month after it began. The Maputo Port Development Company [MPDC] said the first of 3-dredgers deployed by Jan de Nul Dredging Middle East FZE, the international dredging company that was awarded this operation, arrived at the port of Maputo on 20 May and the first dredging cycle started on 21 May. Over the 10 months of dredging around 12 million cu.m of sediment is expected to be removed along the access channel, after which ships weighing up to 80,000T will be able to dock. When completed the access channel will have a depth of 14.2m at the peak of high tide up from 11m.

[Macauhub/MZ 30/06/16]

23

EASTERN AFRICA

PORTS

TanzaniaTask Force To Oversee Grand Bagamoyo PlanThe government has formed a task force to mobilise resources for the much-hyped and awaited Bagamoyo mega-port and satellite city to facilitate ambitions of becoming a middle-income country by 2025. The force, comprises officials from the Ministry of Finance and Planning, Export Processing Zone Authority [EPZA], China Merchants Holdings International [CMHI] from China and State Government Reserve Fund [SGRF] from Oman.

The project has been delayed by a budget deficit to compensate villagers who are to pave way for the project. The project, sitting on a 9,000-ha area, involves the construction of the largest port in sub-Saharan Africa an industrial, commercial and residential enclaves around Bagamoyo. Roughly, total compensation is pegged at 150bn/- but only 50bn/- has been paid. The task force will help raise the required fund with the government.


Export Processing ZonesThe Export Processing Zone Authority [EPZA] has introduced privately-owned special economic zones to help fast-track processing industries in the country, the latest entrant being Star City in Morogoro. Run jointly by Tanzania and Singapore firms, on 80,000 ha for industrial, residential and dry port development, Star-City has already secured an operating licence from the EPZA and is now awaiting an environmental impact assessment from the environmental council to start investment. On receipt of the environmental permit the first phase, which consists of industrial development, will start early in September.

The EPZA has already issued 11 licences for industrial development in Bagamoyo. The target of the authority is to double exports of locally-made products, thus contributing heavily to the country’s gross domestic products [GDP]. For instance, the EPZA is working on a plan to develop the Kurasini Tanzania-China Logistic Centre, a project that has reached good take-off stage. EPZA is offering 10-year tax exemption for firms investing in strategically-allocated areas with the focus on processing and manufacturing firms.


TPA Board Directed To Dissolve Tender BoardThe newly-appointed Tanzania Ports Authority [TPA] Board of Directors has been directed to disband the authority’s Tender Board due to corruption and inefficiency in tendering.


24

SADCEU/SADC Countries Sign Africa’s First EPA After Decade Of TalksFollowing more than 10-years of tough negotiation, the European Union [EU] and 6-Southern African countries, including South Africa, signed an Economic Partnership Agreement [EPA] in Kasane, Botswana on June 10. The deal seeks to build on an existing €60-billion-a-year trade relationship, with the Southern African Development Community [SADC] countries exporting around €30-billion yearly to the 28 countries of the EU, mostly in the form of metals and minerals.

The EPA includes Botswana, Lesotho, Mozambique, Namibia, South Africa and Swaziland and is known as the SADC EPA, despite including only a minority of SADC’s 15 member States. All of the six signatories, barring Mozambique, are also members of the Southern African Customs Union [SACU], which share a common external tariff.

The signing of the EU-SADC EPA marks the beginning of a new relationship, a transformation from the old regime of preferences and systems.

Vincent Seretse, Botswana Trade and Industry Minister

Talks began in 2004 and the EPA was finally initialled in July 2014. The text has since undergone nearly 2-years of technical “scrubbing”, and now requires ratification by lawmakers in the 6-African countries, as well as the European Parliament and the 28 EU member States before coming into force.

The EU-SADC EPA is the first EPA signed between the EU and an African region, with an East African agreement expected to follow in a few months, but with the West African agreement having met fresh resistance.

The agreement extends duty- and quota-free access to all SADC EPA members, except South Africa. Africa’s most developed economy has an existing reciprocal trade framework known as the Trade and Development Cooperation Agreement, which came into force in 2000. In addition, the EPA included “flexible” rules of origin, enabling countries to use inputs from their neighbours and other LDCs without the risk of forfeiting access to the EU market benefits.

South AfricaSouth Africa, meanwhile, has secured improved access to the EU market on a range of agricultural products, as well as greater policy space to introduce export taxes. EU statistics show that bilateral trade between South Africa and the EU stood at €44.8-billion in 2015, with the balance tilted in favour of European exports to South Africa, which stood at €25.4-billion.

This improved access had been facilitated in large part by South Africa’s concession on so-called geographical indications [GIs] – 252 European names used to identify agricultural products based on the region from which they originate and the specific process used in their production, such as Champagne and Feta cheese. In return, the EU has agreed to recognise over 100 South African GIs, including Rooibos and Honeybush teas, Karoo lamb and various wines.

There has been no obligation on South Africa to participate in these EPA talks in light of its existing trade agreement with the EU, but it decided to participate in 2007, primarily owing to the risk of differential arrangements emerging within SACU. The outcome has ensured harmony in the customs union, while also securing some benefits for South African farmers, particularly in the areas of sugar, wine, canned fruit and ethanol.

Once the EPA comes into force, South Africa will be able to export 110-million litres of wine yearly and 150,000 t/y of sugar into the EU duty free. However, the government’s main trade priority remains the Trilateral-Free Trade Agreement, targeting freer trade from Cape to Cairo, up the east of Africa. Progress is being made in talks with the East African Community [EAC] and an offer has been made to Egypt, but progress is slower than first hoped.

[Engineering News 10/06/16]

“”

25

SOUTHERN AFRICA

SADC, BRICS, TRADE & TRANSPORT

South AfricaGuaranteed Access To AGOA Until 2025South Africa has been guaranteed access to the African Growth and Opportunity Act [AGOA] until 2025, the Department of Trade and Industry [DTI] announced. All issues regarding beef, poultry, and pork have been resolved paving the way for continued preferential access into the US market for the duration of AGOA.

The priority remains leveraging market access opportunities that arise from AGOA and there are currently no discussions on a Free Trade Agreement with the US within the Southern Africa Customs Union. Discussions between the US and South Africa would continue with the aim of enhancing beneficial trade and investment and facilitating market access of products of export interest to South Africa such as chicken breasts, goat embryos, ostrich meat, apples, citrus, avocados, mangoes, and litchis. Litchis will access the US market in 2016.

[Engineering News 23/06/16]27

SOUTHERN AFRICA


South Africa

.Transnet Pares Back Capex As Commodity Slump Impacts DemandTransnet has pared back its 2016/17 capital expenditure plan in line with its strategy of “validating” demand ahead of moving ahead with major investments. The rail, ports and pipelines utility expects to invest around R22.8-billion during the 2017 financial year, having already reduced its capex in 2016 to R29.6-billion, from a peak of R33.6-billion in 2015.

The Group would still invest R340-billion to R380-billion over the coming 10-years, as part of its much vaunted market demand strategy [MDS] to expand capacity ahead of demand. It has already invested R124-billion since the start of the MDS in 2012, despite lower than assumed volumes and Gross Domestic Product [GDP] growth.

Nevertheless, the immediate outlook had been affected mainly by lower commodity prices, which, in turn, had led to a deferment of a number of planned investments, particularly in relation to coal and iron-ore. The plan to open up the coal export line to the Waterberg coalfields was now only expected to materialise in 2021/22, while the trigger had not yet been pulled on the Swazi Rail Link – a proposal to invest in a new line through Swaziland in an effort to liberate additional capacity on the Richards Bay corridor for additional coal exports. Transnet expects coal volumes to recover modestly in the current financial year to 75-million tons from 72.1-million tons, but to remain below the 76.3-million railed in 2015.

Likewise, iron-ore volumes were expected to fall well short of the 70-million tons assumed for 2016/17, having slumped 3% in 2015/16 to 58-million tons.

Gama indicated that the group’s immediate focus was on capturing greater general-freight business [GFB] market share from road, while diversifying away from its current reliance on mined commodities. Transnet expected to invest R111.7-billion to support GFB, with a large locomotive procurement already under way to add 1,064 new diesel and electric locomotives to its network.

Over the MDS period, Transnet will invest R15.7-billion to sustain iron-ore capacity at 60-million tons a year, while R22.5-billion is to be invested on the coal corridors and a further R18.8-billion to raise the capacity of manganese exports to 16-million tons.

The key commodity-related PSP projects have been listed as the Waterberg Consolidation project, in Lephalale, as well as funding of a heavy-haul coal link out of the Limpopo province, the Swazi Link project and the Manganese Common User Facility, in Mamatwan. These Public–Private Partnership [PPP] projects, together with inland port and branch-line concessions, as well as various others at the ports and the rest of the region, could, in Transnet’s estimate, facilitate infrastructure investment of R50-billion to R60-billion in addition to its MDS investments.

[Mining Weekly 27/06/16]

World Bank Ranks South Africa In Top 20 In LogisticsSouth Africa was ranked at 20 out of 160 countries based on income grouping and trade logistics performance in the latest edition of the World Bank’s Logistics Performance Index, which was a part of biannual report titled Connecting to Compete 2016: Trade Logistics in the Global Economy. The report ranks 160 countries on their trade logistics performance and rates countries based on a number of dimensions of supply-chain performance, including infrastructure, quality of service, shipment reliability and border clearance efficiency.

Meanwhile, for the first time in the history of the report, landlocked countries were no longer automatically disadvantaged, as shown by the performances of Rwanda and Uganda, which benefited from regionally coordinated efforts to improve trade corridors.


28

South Africa

Transnet Announces Two Business Development AppointmentsEffective August 1, Transnet has appointed Gert de Beer as chief business development officer, with Mike Fanucchi as commercial sales and marketing group executive. De Beer, joining the group leadership team and reporting directing to Transnet group CEO Siyabonga Gama, will be responsible for establishing the leadership and strategic capabilities required to enable its railway, ports and pipeline businesses to work collectively in serving Transnet customers. Meanwhile, Fanucchi, reporting to De Beer, is tasked with entry into new markets focusing on strengthening regional trade in manufacturing, automotive, bulk, industrial and retail sectors.


Zuma Leads Delegation To France To Promote TradePresident led South African Ministers and a business delegation on an official State visit to France from July 11-12. The key objective was to promote South Africa’s exports and to attract investment in the automotive, ship-building, aquaculture and energy sectors. Another key objective was the signing of a declaration of intent between South African investment and promotion facilitator Invest SA and Business France, as well as an agreement between the Industrial Development Corporation and its French counterparts on cooperation on industrial development.


S&P Affirms Transnet’s Investment-Grade RatingState-owned freight logistics group Transnet announced that S&P Global Ratings had affirmed its long-term foreign currency rating at ‘BBB-’ and its local currency rating at ‘BBB+’. Transnet’s investment-grade rating is viewed as important, owing to the fact that the utility raises funds on the strength of its own balance sheet, in the absence of State funding or guarantees. The rail, ports and pipelines operator is currently part funding the execution of a R380-billion, 10-year infrastructure investment programme with debt raised both locally and abroad.


FIGURES - Imports from France at R24.5-billion in 2015 up from R23.9-billion in 2014. - In 2015 South Africa had a R15.3-billion deficit trade balance with France. - France is the 4th-biggest trading partner in the EU after Germany, the UK and Italy. - France is South Africa’s 11th trading partner and its 27th export partner. - There are 365 French companies operating in South Africa.

29

SOUTHERN AFRICA


South AfricaTNPA To Add Container Capacity At Durban, Dig-Out Port On HoldHaving pulled back from any immediate development of the so-called Durban Dig-Out Port [DDOP], Transnet National Ports Authority [TNPA] is moving ahead with two more modest projects to expand the container capacity at the Port of Durban. Transnet indicated that the DDOP is “on hold” in light of lower-than-anticipated economic growth, which has resulted in a material slowdown in container volume growth.

During the 2016 financial year, marine container volumes declined 4% to 4.36-million TEU from 4.57-million TEU in 2015. In addition, the outlook for container volume growth is expected to be well below the assumptions used in the 2012 market demand strategy [MDS], which anticipated a 76% increase in container volume between 2012 and 2019, from 4.3-million TEU to 7.6-million TEU. As a result, Transnet expects the first sod at the DDOP, which is earmarked for the old Durban International Airport site, to be turned only in 2026.

Salisbury Island ProjectIn the meantime, attention has turned to optimising the existing capacity at the Port of Durban, including the integration of Salisbury Island into the Durban Container Terminal [DCT]. Previously associated with a naval base, Transnet has made progress in its discussion with the Department of Defence about incorporating the property into the DCT.

TNPA CEO Richard Vallihu reports that the project now forms part of a R54-billion investment plan for the country’s 8-commercial ports – a plan that is itself part of Transnet’s larger R340-billion to R380-billion 10-year rolling MDS. The Salisbury Island project [also known as the Pier 1 Phase 2 Infill project] has been listed among the top 20 priority projects for the TNPA. A feasibility study is currently under way.

Environmental processes, as well as a lease agreement will also have to be concluded before the project can proceed, however. The development could add capacity for an additional 2.4-million TEUs at Pier 1, which is currently only able to handle 700,000 TEUs a year. TNPA expects to begin work on the project in 2018, for completion in 2023.

Deepening Of Berths 203-205TNPA is also preparing to issue a tender soon for the deepening of berths 203 to 205 at DCT, which could raise the capacity of Pier 2 from 2.4-million TEUs to 2.9-million TEUs. The berths will be deepened from 12.8 m to 16.5 m and lengthened from 914 m to 1,210 m to enable DCT to handle three 350-m vessels simultaneously. Construction is expected to begin in 2017 and be completed in 2022.

Together the projects are expected to raise the DCT’s capacity to around 5.3-million TEU from around 3.6-million TEU currently. A review is currently under way on the demand outlook for container growth, with the 6.5%-plus-a-year assumption in the MDS likely to be revised down to around 3.5%.


30

PORTSSOUTHERN AFRICA

South Africa

Tambo-Springs Container Terminal A briefing session will be held in early July for potential bidders for a proposed inland Tambo Springs container terminal, earmarked for development as a public-private partnership [PPP] in eastern Gauteng. State-owned freight logistics group Transnet issued a request for proposals [RFP] in June, inviting suitably qualified global logistics service providers to design, build, operate, maintain and eventually hand over the inland container terminal.

Transnet has secured 35-ha to accommodate the PPP project, which has been designed to handle 50-wagon trains initially, rising to 75-wagon train as demand rises. Transnet also gave the assurance that the site has been rezoned and that the right to use the land for the purpose of an inland terminal has been secured. Transnet has also secured special rights for the remainder of the land. These allow for the land to be used for various purposes, including warehousing, manufacturing, transport and industrial purposes

Transnet has full approval of the master plan for the ‘Tambo Springs Next-Generation Logistics Gateway Development’ by relevant government departments and parastatals with formal incorporation of the land into the Ekurhuleni spatial planning. It has also noted the requirement for the realignment of the planned routing of the potential future PWV 13 road to allow for the development.

The bid submission deadline set for September 30. Should the PPP proceed as envisaged, the concession will be for a 20-year period, with the terminal expected to be in operation by 2019. It will have an initial capacity of 144,000TEU a year, with an option to ramp it up to 560,000 TEU.

As part of the national government’s 25-year integrated master plan there are 5-freight key logistics hubs identified in Gauteng. They are City Deep [Johannesburg CBD], Vaalcon [south of Johannesburg], Pyramid [Pretoria as part of the automotive cluster], the West Rand and the planned Tambo Springs hub as the gateway to Durban.


Second New TNPA Tug Sets Sail For Port ElizabethQUNU, the latest of Transnet National Ports Authority’s (TNPA) 9-new tugboats set sail for Port Elizabeth from the Southern African Shipyards in Durban. Ceremonially launched alongside a third tug, CORMORANT, in May, QUNU is named after the Eastern Cape home village of the former president, the late Nelson Mandela. She is the second of 2-new tugs built for the port as part of a large-scale fleet replacement project. The first, MVEZO was unveiled at the port in April by President Jacob Zuma. Valued at R1.4 billion, the 9-tug contract is the largest single contract TNPA has ever awarded to a South African company for the building of harbour craft. QUNU will be handed over officially to the port in the coming weeks. Two tugs each will be allocated to the Ports of Durban, Richards Bay and Port Elizabeth, while Saldanha, which handles the largest carriers, would receive three tugs.

[Biz Community 08/07/16]

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SOUTHERN AFRICA

PORTS

ZimbabweNew Regulations On Importation Of GoodsOn 24th June the Zimbabwe Ministry of Industry announced stringent regulations meant to control the importation of goods available locally. The regulations, gazetted under SI 64 of 2016 became effective on 1st July. Under the new rules, those who want to import listed goods have to apply for a permit which costs US$30 and is valid for 3-months. Before acquiring the permits, those applying have to justify the need to import the particular goods.

For more information and official notices please view http://www.veritaszim.net/node/1715 32

REGULATORY SOUTHERN AFRICA

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