issue 43 - cma cgm | a world leader in shipping and logistics

GHANA: US$1.5 BILLION TEMA PORT EXPANSION PROJECTFull Story On 7

AFRICATRADE-WATCH

DELMAS / CMA CGM Africa Lines Get New Helmsman

ISSUE 43 | DECEMBER 2014

Cote d’Ivoire: US$875 Million Loan For Port Construction

US$1.2 Billion Infrastructure Projects In East Africa

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Cote d’Ivoire: US$875 Million Loan From China Eximbank For Port Construction

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DELMAS / CMA CGM Africa Lines Get New Helmsman

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Ghana: US$1.5 Billion Tema Port Expansion Project

World Bank Pledges US$1.2 Billion For Infrastructure Projects In East Africa

Contents

Top Stories

03 /African Group News

07 /Events Diary & News Briefs

09 /Pan Africa

21 /Eastern Africa

13 /Western Africa

27 /Southern Africa

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AFRICATRADE-WATCH

ISSUE 43 | DECEMBER 2014

News Headlines By RegionWestern AfricaRegional: EU To Support Trade In West Africa With €40 Million

Angola: Government, EU Sign Trade Financing Agreement / Cabinda Province Deep Water Port

Cameroon: EPA Consultation / Konecranes, Gottwald Supply Equipment To DIT / Customs Harmonisation, Accedes Revised Kyoto Convention

Cote d’Ivoire: US$875 Million Loan From China Eximbank For Port Construction

Gambia: India To Extend Line Of Credit For Banjul Port Expansion

Ghana: US$1.5 Billion Tema Port Expansion Project / Crawler Crane For Takoradi Port Expansion / Takoradi Port Dredging Starts

Morocco: Nador West Med Port Works Pre-Qualification

Nigeria: Devaluation Of Naira To Reduce Imports / SON, NACCIMA To Improve SMEs’ Access To Export Market / Ministries To Execute Trade Programmes / Cargo Throughput Increases In Q3 / Customs Rakes In N950 Billion / Automation Of Maritime Agencies / Bayelsa Seaport Project To Get Oil Export Terminal

Eastern AfricaRegional: World Bank Pledges US$1.2 Billion For Infrastructure Projects / New Scheme Seeks To Cut Freight Costs In East Africa / EAC Endorses Infrastructure Investment Blueprint

Ethiopia: Logistics Strategy Report

Kenya: Signs Trade Pact With UAE / Single Window Modules Completed By Year End / Exchange Sees Tax Change Curbing Foreign Investment / Mombasa Port Handles 14% More Cargo

Mauritius: Strabag And Archirodon To Extend Port Louis Port

Rwanda: Government, Investors Sign Deals To Boost Exports

Tanzania: Trade Share In EAC Increases / TICTS Set To Decongest Dar Port / Feasibility Study For Kasanga Port Rehabilitation Complete / Zanzibar Terminates Ship Register Contract

Southern AfricaSouth Africa: South Africa, China In Deals To Enhance Bilateral Trade / DTI To Launch African Export-Focused ‘Platform’ For Business In 2015 / Tenders Prepared Across South Africa Ports System / Kalmar Smartstack Goes Live At Durban Container Terminal / TPT Optimise Durban Efficiency

Zimbabwe: Zimbabwe And South Africa Boosting Trade Ties / Sharp Decline In Vehicle Imports

Takoradi Port

Export Market N950 Billion /

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Website: www.delmas.comEmail: [email protected]: @DelmasWeDeliver

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

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

www.cmacgm.com

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and timely information in this report. No responsibility is accepted for

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the information. Accordingly Delmas denies any liability for any direct,

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result of relying on any published information. Conclusions drawn from,

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THE TRADE & TRANSPORT REPORTBrought to you by CMA CGM / DELMAS Marketing

Rachel Bennett Dominic Rawle

DELMAS / CMA CGM Africa Lines Get New HelmsmanLudovic Rozan has been appointed as Vice President of CMA CGM Group Africa Lines on November 17th replacing Mathieu Friedberg. Rising through the ranks Ludovic was previously Vice-President of Sales & Marketing for Asia, then Vice President Africa, Indian Ocean Oceania Lines and most recently [from 2012] Vice President of North America Lines. This month we interview Ludovic about the Groups position as a leader on the African container trades and the future of the company in Africa.

What are the main trends in the African container industry over the past 2-3 years? The African container market has grown over the last few years, thanks to economic growth of the continent overall. Africa trades have aligned with emerging economies such as Asia, Middle East, India, South Africa and Brazil [BRICS]. Growth in Sub Saharan Africa is running at 6.1% for 2014 and is forecasted at similar levels for 2015. For East Africa growth has been tremendous especially out of Mozambique and Tanzania at around 7-8%. However it is a testing time in the African container industry with increased port congestion and decreased productivity in certain key locations - a daily challenge for our operational teams who do a tremendous job at constantly adjusting to a moving situation.

How has CMA CGM / DELMAS responded to these trends?The Group always follows clients’ demands in term of shipping solutions by improving port coverage and transit times. Direct services, weekly frequencies, efficient transhipments are our way of shipping. The quest for constant improvement and progress is reflected in our upgraded service portfolio. For example targeting the growth markets of East Africa we have upgraded our East Africa-Asia lines to offer a more efficient service. The ASEA line once operated as a single service has been split into 2-distinct services: ASEA Kenya and ASEA Tanzania. The move has significantly cut transit times. Furthermore we are the first to serve all Mozambican ports directly from the Far East with our MOZEX service. And this year we opened the Rhino feeder to include the niche ports of Pemba and Quelimane as well as our latest development, the introduction of our Noura feeder covering Somalia. Our footprint is clearly to answer at best our client’s demand even in difficult operational places.

How does CMA CGM / DELMAS distinguish itself from other shipping companies?With a long history in Africa through our DELMAS brand we are one of the few very large global carriers, ranking #3 worldwide, able to provide flexibility and acute knowledge of our markets which allows for very close relationship and tailor made solutions with our customers. It is our ability to address the specific needs of our customers which distinguishes us from others. Our strategy is focused on the provision of specialist trade desks to provide expertise on specific business sectors. The desks offer one simple entry point for both customers and our agency network. One example is our dedicated OOG/Break Bulk desk for African projects cargo. We have experts based in our Marseilles HO, France and a team in Shanghai, China and soon in Africa. Secondly, with a growth in reefer traffic of around 20% this year, our focused reefer desk offers expertise in perishable, chilled and frozen commodities such as bananas and fish products.

We constantly look at taking the lead and staying ahead of our competition through close monitoring, innovative products, quality of service, high end equipment and fine-tuned yield management. New sales packages have been launched this year to extend our portfolio of services. This includes selling our own ‘Cargo Insurance’ package to ensure protection of your cargo and offering a new ‘Flex Cost TBL’ - a classic landlocked Through Bill of Lading that gives more flexibility in terms of splitting costs.

What are CMA CGM / DELMAS’s current commitments in Africa?Our ambition is to be the leader in African maritime transportation and the key player in logistics services. We are the only ones to offer 24 direct lines into West and East Africa from all over the world plus the necessary feeder network to serve all markets. We deploy a total net weekly capacity of 25,000 TEU into Africa and are aiming to achieve close to 1.6 million TEUS in/out Africa in 2015.

We have our own Group offices/agencies in all major markets including hinterland countries. This year we have opened offices in Nouakchott and Nouadhibou, Mauritania; Namibe, Angola; N’Djamena, Chad; and 2-offices in Madagascar, Toliara and Antsiranana [Diego]. These Group own facilities strengthen our local assets with a view to addressing all the demands of client companies operating across Africa. We also appointed a new agency East Africa Shipping Company [EASC] to extend our regional coverage in Mogadishu port, Somalia. A relatively new market for us!

We continue to improve our landlocked intermodal offer to bring services to the most remote places. We have opened up new destinations such as Hwange in Zimbabwe by rail from Maputo, Mozambique and in Kenya from Mombasa we now offer routes to the North Kivu region in Eastern Democratic Republic of the Congo [DRC] including Beni, Butembo and Kisangani. Our door to door intermodal network is second to none offering bespoke services and an efficient local organization.

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AFRICAN GROUP NEWSCMA CGM / DELMAS

Any port developments that are of interest?Port developments are strategic in Africa. Port infrastructure investments have been increasing constantly over the recent years with all major ports having signed concession agreements and having seen continuous improvements. We are looking forward to the emergence of true hub opportunities over the next decade. In the short-term 8-ports will have deep sea capabilities by 2017. CMA CGM Group has itself invested heavily in the region. In April CMA CGM Terminals acquired a 25% stake in Nigeria’s Lekki container terminal, situated around 38 miles east of Lagos, which is expected to be fully operational in 2017 and will offer 2.5m teu of annual capacity initially. This investment is undoubtedly a great opportunity for the Group to further increase its presence in Nigeria, a country in continuous development. To further facilitate land operations we launched the Dakar Off-Dock Terminal TCD1 and TCD2. Each offers a dedicated multi-activity 15,000m² logistic platform. We also opened the new 3CTC Logistics Platform in Douala, Cameroon in October this year.

Have you introduced any other new, or improved services recently? In West Africa we focused on opening up smaller niche ports. This year we launched the new Equatorial Guinea service providing weekly links to Bata and Malabo with our hub ports of Tangiers and Algeciras and a new dedicated fortnightly feeder service to Cape Verde serving both Praia and Mindelo ports. In Nigeria the MIDAS service was extended with a fortnightly call in Onne and our Group’s PC North service opened up a new direct call to Buchanan in Liberia - the first time a container ship called there in 20 years! Such innovation reflects the constant attention that the Group offers to its customers in Africa so we can better meet their needs.

Looking at the East African market, this year, CMA CGM / DELMAS launched 2-services during Q1 2014. Firstly the Noura Express was introduced to cover Jebel Ali, Khor Fakkan, Mombasa, Mogadishu and Jebel Ali. The service was originally launched in January as a Somalia feeder service and extended in April to Kenya with the addition of a call at Mombasa. Secondly the Rhino Express offered an extended coverage of Mozambique including new port calls at Quelimane and Pemba as well as Longoni on Mayotte and Moroni in the Union of the Comoros and opened up the opportunity to develop cabotage in Mozambique. The move reinforced our presence throughout Southern Africa and specifically in Mozambique where we also serve Maputo, Beira, Pemba, Nacala and Quelimane.

What are the main factors affecting rates and how will this affect your business and demand?Our business plan is to remain focused on growth and bring back Line profitability [including a General Rate Restoration [GRR] on the Asia to West Africa and Asia to Mozambique trades in January 2015].

What investments has the Group made in the last 12-18 months, what investments are planned?Investments include the deployment of the most competitive vessel fleet size on the African trade. In effect we became the first carrier to provide 5,700 TEU capacity vessels offering a direct call to West Africa. The use of such containerships to West Africa marks a major turning point for the trade, as infrastructure improvements at several West African ports now allow the use of gearless ships that triggered the assignment of larger ships with much more to come in 2015 and beyond.

What does the future hold / prospects for 2014/15? In January we launched our cutting edge website which has already seen 2-million TEUs booked through its eBusiness platform. That equates to 1 in every 2 transactions carried out online. We are currently rolling out new IT solutions to all our African agencies to better link them to the world and maximise e-biz utilisation across the sub region. In 2015 customers will be able to receive loading confirmation, quotation access and invoicing via the web. And our agencies are also opening up their own web areas which have been rolled out in South Africa, Senegal and Nigeria.

In general terms Africa continues to be a land of opportunities. How do we, CMA CGM Group the African Expert continue to differentiate? We keep at the cutting edge by continuously providing the most innovative solutions to meet our customers’ expectations. Not only at sea, but also at shore. Our strategy; stay focused, listen to our customers, and adapt quickly. CMA CGM / DELMAS is simply “dedicated to Africa”!

Ludovic RozanVice President of CMA CGM Group Africa Lines

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Reorganisation Of East Africa Services Linking India, Middle East & Gulf CMA CGM Group has reorganised its services between India, the Middle East and East Africa in response to the growth in the East African market. Both our NOURA EXPRESS and SWAHILI EXPRESS services have been upgraded with new calls offering an improved service reliability and significant reduced transit times.

The New NOURA EXPRESS will be operated by four 1,800-2,200 TEU vessels. This weekly direct service from the Middle East & Gulf focuses on the markets of Kenya and Somalia calling at Jebel Ali, Khor Fakkan, Mombasa, Mogadishu and Jebel Ali.

Whilst the New SWAHILI EXPRESS will be operated with six 2,800 TEUs vessels, the largest capacity vessels in the area. This weekly direct service from the Indian Subcontinent, Middle East & Gulf focuses on the markets of Tanzania and Mozambique calling at Nhava Sheva, Jebel Ali, Khor Fakkan, Dar Es Salaam, Zanzibar, Nacala and Nava Sheva. Advantages - Direct services dedicated to East Africa market - Direct weekly service from India to Zanzibar in 21 days - Improved transit time UAE to Dar Es Salaam by 4 days, Zanzibar by 5 days - Only service available on the market with weekly call to Mogadishu, Somalia - Regular weekly direct service from Mombasa to Mogadishu - Fast connection to reach Austral Africa with TBL logistics solutions for landlocked countries.

Rhino Express Feeder Upgraded The Rhino Express Feeder service has been upgraded to offer better reliability and an improved frequency for an optimum coverage of both Mozambique and South Africa markets. The frequency of the new Rhino Express Feeder has been improved from 21 to 14 days with the introduction of a second vessel of 600 TEU. The line offers extensive coverage with calls to 5 ports in Mozambique [Maputo, Beira, Nacala, Pemba and Quelimane] as well as the port of Durban in South Africa. Furthermore these ports are connected to the world through our Midas, Shaka 2, Mozex and Seas 2 services.

http://www.delmas.com/products-services/line-services/flyer/NOURA

http://www.delmas.com/products-services/line-services/flyer/SWAX2

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AFRICAN GROUP NEWSCMA CGM / DELMAS

New Reefer Product For Nigeria: Apapa Bill Of LadingThe CMA CGM Group has introduced a new reefer product - the Apapa Bill of Lading [BL] - a one-stop solution for our customers. Reefer containers are discharged directly at Tin Can TICT and then transferred by the terminal operator to an “off-dock” under Apapa Customs control. All charges are payable at Tin Can TICT. This service is in addition to direct Reefer discharge in Apapa/APMT and Tincan/TICT.

The Group is dedicated to Nigeria market offering:

- 6 direct weekly services to Nigeria - 10 weekly calls including 1 weekly call dedicated to Nigerian export market from worldwide - 2 Group agencies with 131 expert staff at your service.

New Agency Managers For Mauritania, DRC And CameroonWe are pleased to announce that Christophe Jourdan has been appointed as the new General Manager of CMA CGM Mauritania in Nouakchott. He replaces Ange Antoine Leccia who sadly passed away. Furthermore Charles Gonzalez has been appointed as our new Branch Office Manager at DELMAS RDC in Matadi and Roberto Rossi, previously Branch Office Manager DELMAS RDC in Matadi, has been appointed as new Deputy General Manager DELMAS CAMEROUN based in Douala.

CMA CGM At Expotrans Trade Fair In Luanda, AngolaAs part of our African development plan, particularly in Angola where CMA CGM is the #2 importer, Jean-Pascal Giorda, General Manager of CMA CGM Angola and team participated in the 4th edition of Expotrans from November 20-23 in Luanda.

The fair, organized by the Luanda International Fair [FILDA] and the Ministry of Transport in Angola, promoted growth and development of the regional transport and logistics sector. The team was able to present the wide range of services of the Group in Africa, particularly to the Minister of Transport, Augusto da Silva Tomás, who came to meet staff on the CMA CGM stand. The Group has 4-offices based in Luanda, Lobito, Cabinda, Soyo, and in July we opened another office in Namibe. Four liner services offer direct links to Angola including ASAF, Midas, Angola Shuttle and SAMWAF services.

CMA CGM/DELMAS Takes Award In SenegalAt the 10th edition of the Cauris d’Or Ceremony [Golden Cowry*], the CMA CGM Group received the award for best-competitive enterprise in Senegal.

Held annually in Dakar by the Mouvement des Entreprises du Sénégal [MEDS], this ceremony recognises those who have distinguished themselves by their exceptional achievements or performance. Jean-Philippe Thénoz, Vice President Agencies Network and Philippe Barreau, General Manager CMA CGM Senegal, were present to receive this award. The event was an opportunity to reinforce our visibility in front of Senegalese key economic and political decision makers.

*The cowry shell is synonymous of commercial exchange, savings, finance, profitability and prosperity

MauritaniaChristophe Jourdan Phone: (+222) 45 25 20 20 26 / 16Mobile: (+222) 26 37 43 01Email: [email protected]

Democratic Republic CongoCharles Gonzalez Mobile: (+243) 991 00 22 12Email: [email protected]

CameroonRoberto Rossi Phone: (+237) 233 421 211Mobile: (+237) 691 914 000Email: [email protected]

Jean-Pascal Giorda [left], shaking hands with the Angola Transport Minister / CMA CGM Angola Team

Philippe Barreau receiving the Cauris d’Or for the best-competitive company in Senegal / Jean-Philippe Thénoz at the Cauris d’Or Ceremony

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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

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AFRICAN SHIPPING

EVENTS DIARY

ANGOLA - Angola’s state diamond company Endiama and private

companies Lukapa Diamond and Rosa e Pétala have signed an agreement for diamond prospecting in the Lulu concession, in Capenda Camulemba, in Angola’s Lunda Norte province.

- The Industrial and Commercial Bank of China has granted a loan of US$120m to Angola, to be used to finance a real estate project on the outskirts of Luanda.

BURKINA FASO - Kaizen Discovery completed the sale of its Kerboulé gold

project, in Burkina Faso, to Alecto Minerals. - Orezone Gold Corporation is on schedule to complete the

feasibility study of its Bomboré gold project during Q1 2015, after which it would apply for a mining permit to develop the project during Q2.

DRC - Glencore and partner Fleurette are ploughing $360m into

refurbishing the nation’s main hydroelectric plant: repairing 2-turbines at SNEL’s 1,424 MW Inga 2 hydropower plant and upgrading 2,000 km of transmission lines to take the power to Katanga.

GHANA - Ghana, could be affected by electricity shortages for the rest of

the year. The 6-international mining companies have accepted a 25% reduction in their electricity allocation.

MALI - African Gold Group has completed a scoping study and

an updated preliminary economic assessment (PEA) for its Kobada gold project demonstrating low capital expenditure requirements and high returns. Total preproduction capital required estimated at $46.6m. The feasibility study is about 80% complete with completion of the final study in early 2015.

- IMF to restart suspended aid after Mali assuaged concerns about its spending, including the purchase of a $40m presidential jet. The decision allows Mali to receive $11.7m that had been delayed since May. IMF predict economy should expand 5.8% this year and 5.5% in 2015.

NIGERIA - Royal Niger Emerging Technologies has awarded UK based

JDR a contract supporting the Abo project for the manufacture of a subsea umbilical set to be delivered to the Abo field within Q1 2015.

- Plans to cut subsidies on petroleum products by half next year after sharp falls in global crude prices spurring the government to revise its 2015 budget downwards.

SIERRA LEONE - African Minerals, which owned 75% of the Tonkolili iron-ore

mine, started the controlled shutdown of operations as it moves to put the operation on care and maintenance owing to insufficient working capital.

Western AfricaETHIOPIA - Ethiopia plans to sell its first dollar bond - proceeds of the

sale will be used to fund electricity, railway and sugar-industry projects.

KENYA - Japan’s Toyota Tsusho has won a contract to design an oil

export pipeline from Uganda to Kenya’s coast. - Kenya Ports Authority contracted Danish engineering firm Niras

to oversee the construction of a new oil terminal in Mombasa to replace the 50-year-old Kipevu oil terminal.

MAURITIUS - A MoU was signed by the State Trading Corporation, the

Indian Oil Corporation Ltd and the Mangalore Refinery and Petrochemicals Ltd for setting up oil storage terminals in Mauritius via a JV Company.

MOZAMBIQUE - A scoping study into Triton Minerals’ Nicada Hill graphite

project estimates a production of 210 000 t/y of graphite concentrate. The project would require investment of US$110m with production likely to start in 2017.

NAMIBIA - Rail company Gibela has unveiled the first completed car

body-shell at major shareholder Alstom’s Lapa manufacturing facility, in Sao Paulo, Brazil – the start of a 10-year R51-billion contract to supply South Africa’s Passenger Rail Agency of South Africa (PRASA) with 600 trains.

RWANDA - Development Bank of Rwanda (BRD) has entered into

agreement with Rwandan Mountain Tea (RMT) to facilitate US$12m funding of Phase II construction works for a 4MW Giciye II hydro power plant in Nyabihu in Western Province.

SOUTH AFRICA - The sale of Aquarius Platinum’s interest in Kruidfontein

prospecting right to Pilanesberg Platinum Mines has been completed – sold to C&L Mining & Resources for $30m.

TANZANIA - Richland Resources has agreed to sell the embattled

TanzaniteOne Mining Limited to Sky Associates for $5.1m. - The definitive mining feasibility study for Kibo Mining’s Rukwa

Coal to Power Project (RCPP) is positive for higher profitability than originally expected.

ZIMBABWE - Zimbabwe has deferred a 15% tax penalty on mining firms

who export raw platinum to 2017, giving the companies time to build refineries.

- Bindura Nickel Corporation (BNC), a subsidiary of Mwana Africa, will issue a $20m bond to help fund the restart of its Bindura nickel smelter to resume ops in H1 2015.

Eastern & Southern Africa

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AFRICAN PROJECT

BRIEFS

Deloitte: African GDP To Grow By 50% In 5 Years A new report by business advisory firm Deloitte has revealed Africa’s GDP will grow by 50% to US$3.7-trillion over the next 5-years as the rapidly expanding middle class helps drive faster rates of urbanisation and increased consumer demand for goods and services.

The Africa: A 21st Century View report sees Africa’s middle class – defined as those earning US$2-20 a day – was expected to increase to more than 500-million people by 2030. Africa therefore presents many opportunities with economic potential remaining untapped by international investors, particularly in the emerging consumer sector, but this is set to change in the next 15 years.

As high-growth economies such as China, India and Brazil show signs of slowing, the report highlights that international businesses were increasingly looking to the fast-growing African market for new growth opportunities. Sub-Saharan Africa’s GDP was expected to expand by 5.1% this year, led by markets such as Chad [9.6%], DRC [8.6%], Côte d’Ivoire [8.5%], Mozambique [8.3%], Ethiopia [8.2%] and Nigeria [7%], according to the International Monetary Fund’s 2014 World Economic Outlook.

Africa’s economy had been focused on natural resource and commodity exports but in future will be driven by consumer opportunity, as rising incomes and urbanisation boost domestic demand. Africa is currently at a point where South East Asia was 30 years ago – on the cusp of a consumer boom. Its population is young, with 680-million [60%] below the age of 25 and increasingly clustered in large urban centres where urbanisation is likely to be a key driver of economic activity.

Despite significant growth prospects, Africa remains complex and carries risk, Deloitte added. Each of the 54 countries has different markets and challenges, as well as issues such as a lack of infrastructure, poor governance, fragile security and unreliable logistics, which can make strategic planning difficult. However, the continent is making progress, with widespread democracy suggesting the dominant trend is positive. Research shows Africa is not suffering from a lack of demand, but a lack of supply. However, there are no quick wins and businesses must be prepared to engage with the various challenges on a long-term basis while weighing the risks and rewards of Africa’s emerging consumer economy.

[Engineering News 18/11/14]

Sub-Saharan Infrastructure Spend To Reach US$180 Billion By 2025According to PwC infrastructure spend in sub-Saharan Africa is to grow from US$70-billion in 2013 to US$180-billion by 2025. The Capital Projects & Infrastructure Report conducted interviews with the infrastructure sector, including development finance institutions, private financiers, government organisations and private construction companies across the region.

It concluded that Nigeria and South Africa were responsible for 68% of all infrastructure spend in the region in 2013 followed by Kenya [10%], Ghana [8%], Ethiopia [6%], Tanzania [5%] and Mozambique [3%]. However within this group of 7-countries, only Nigeria and Ethiopia had room left to accrue more debt. Yearly spending in the chemical, metal and fuel sectors were forecast to increase across these economies to US$16-billion by 2025, up from US$6-billion in 2012.

The region requires continued economic growth above 5% a year; on-time and within-budget procurement; with a lack of external shocks, such as the Ebola crisis in West Africa; and a growing attraction for private capital, as government budgets fell far short of meeting infrastructure needs.

The main challenges in delivering capital projects across sub-Saharan Africa were accessing funding; the existence of a project-friendly policy and regulatory environment; political risk and government interference; and a lack of capacity and skills in the marketplace. Access to finance was less about money and more about finding projects that were financially viable, with a clear revenue stream and a local market ready to consume the project’s output. An improvement in transparency, regulation and procurement will also help restore investor confidence.

However poor transport and logistics infrastructure was seen to increase the costs of goods by 60% for landlocked countries and less than 8% of Africa’s trade was between African countries, compared with 30% to 60% in other global regions. Furthermore cargo waiting-time at ports was 20 days, compared with the global norm of 3-4 days. The report noted that the region could ratchet up infrastructure performance by proper maintenance, as well as improving efficiency of existing infrastructure. But in general, there was a growing sense of longer-term planning by governments to form an overall infrastructure master plan and country strategy.


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PAN AFRICA

TRANSPORT / TRADE

Trade Experts Discuss Launch Of Continental Free Trade Area

A 3-day meeting was held at the African Union [AU] headquarters in Ethiopia in advance of the 9th African Union Conference of Ministers of Trade. Discussions deliberated on the implications of mega regional trade agreements and current investment trends in the context of Africa’s commitment to forge its economic integration which is crucial as the launch of the Continental Free Trade Area [CFTA] negotiations begin in 2015.

The African Union [AU] pointed out that as Africa meets to discuss the advancement of its regional integration agenda, the world is moving, citing global negotiations underway such as the Trans-Atlantic Trade and Investment Partnership [TTIP] agreement being negotiated between the European Union and the United States; the Trans-Pacific Partnership negotiations between the US and Pacific Countries; as well as the Free Trade Area under negotiation between China, Japan, and South Korea. The AU stressed that the CFTA is an important opportunity to develop and harmonize regulations in a number of trade-related services sectors.

The continent is looking for greater ambition than the Tripartite Negotiations. We are seeking to develop an agreement that enables deep integration amongst all African economies, with a focus on Boosting Intra-African Trade and implementing the Action Plan that includes Trade-related Infrastructure, Productive capacity and Trade facilitation.

The African Union [AU]

The establishment of the CFTA was decided in the 18th Session of the Assembly of Heads of State of the African Union in January 2012. The area will bring together 54 African countries with a combined population of more than 1-billion people and a combined GDP of more than US$1.2 trillion.

[Addis Standard 03/12/14]

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Launch Of FTA Spurs China-Africa RelationsA proposed tripartite free trading arrangement to be launched by 3-African trading blocs is to have a positive bearing in promoting China-Africa trade relations.

The Common Market for Eastern and Southern Africa [COMESA], the Eastern African Community [EAC] and the Southern African Development Community [SADC] are expected to launch the tripartite free trading arrangement [FTA] in December.

Once launched, the FTA will be the largest economic bloc on the continent and will pave way for the establishment of a continental free trade area in 2017. The initiative presents unique opportunities for the enhancement of trade relations between China as it will negotiate with the bloc as a whole. This will be good for business development and comes at a time when Africa is looking to China for increased investment and when China is investing on improving infrastructure in Africa.

The launch of the FTA will allow for the smooth movement of goods and services. Although some industries in some countries may face negative consequences due to cheap goods that may move throughout the FTA so countries need to put in place measures to enhance productivity.

The launch of the initiative has followed progress made by the blocs in tariff offers and rules of origin which stipulates that imported products should meet 75% value addition from the country of origin.

The initiative will particularly benefit the business community due to an improved harmonized trade regime which in turn will reduce the cost of doing business as a result of elimination of overlapping trade regimes. The launch of the initiative was arrived at following a tripartite sectorial meeting of ministers in Burundi in October. It will be launched during a tripartite summit of heads of state to be held in Egypt next month.

The tripartite free trading arrangement encompasses 26 member states from the 3-regional blocs, with a combined population of 625 million people. It will account for half of the membership of the African Union and 58% of the continent’s gross domestic product.

[Forum On China-Africa Cooperation 01/12/14]

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TRANSPORT / TRADE

Support For Africa High On Turkey’s Agenda As New G20 ChairAs Turkey takes over the reins of the G20, it said it would hone in on African growth as it built on the momentum gained by its predecessor, Australia. Turkey plans to introduce new elements to bolster the Africa 2063 agenda. The agenda, titled ‘The Africa We Want’ is expected to be approved by the Heads of State at the January African Union Summit. Further, the G20 was an important platform to advance the post-2015 development agenda with Africa seen as a key enabler for global growth and development.

During Australia’s rein, progress had been made owing to South Africa’s G20 membership. The group aims to enhance trade and competition as drivers of inclusive growth and for Africa to gain a stronger foothold in global value chains and beef up trade by cutting bottlenecks and strengthening industrialisation. Further, Australia had established a global infrastructure initiative [GII], with an attached global infrastructure hub, to fast-track infrastructure investment by both the public and private sectors within and outside of the economic grouping. The hub was established to monitor and coordinate the long-term G20 GII initiative and will work with all African stakeholders to support coordination and facilitation of infrastructure investment in Africa.

The New Partnership for Africa’s Development Agency will continue to play a critical role in coordinating implementation of its Programme for Infrastructure Development in Africa working with the hub and other global institutions.

[Creamer 02/12/14]

Agenda 2063A global strategy to optimise use of Africa’s resources for the benefit of all Africans.

Websitehttp://agenda2063.au.int/en/home

Agendahttp://agenda2063.au.int/en/sites/default/files/agenda2063_popular_

version_05092014_EN.pdf

12

EU To Support Trade In West Africa With €40 Million The European Union [EU] has held a conference at the head office of ECOWAS entitled “Support to Economic Integration and Competitiveness in West Africa”.

Concluding the event the EU announced it will provide €40-million to support trade, investment and industrial development in West Africa.

The West Africa Competitiveness Support Programme aims at promoting intra- and inter-regional trade, improving the business climate and strengthening the productive capacity of the region. It has 2-main components.

1. Improving the investment and business climate in West AfricaImplemented by the World Bank Group, WBG, with a total EU grant of €7.7m.

2. Supporting ECOWAS and West Africa Economy and Monetary Union [WAEMU] Commissions to implement regional quality policy to boost intra-regional and international trade. Implemented by United Nations Industrial Development Organization [UNIDO] with an EU grant of €12-million.

The components of the programme will contribute towards the implementation of the ECOWAS Common External Tariff [CET] and the Economic Partnership Agreement [EPA]. Other partners include the Deutsche Gesellschaft für Internationale Zusammenarbeit [GIZ], World Bank Group [WBG] and UNIDO.

[Premium Times 26/11/14]

AngolaGovernment / EU Sign Trade Financing AgreementAn agreement to finance a €12 million trade support project was reached 3rd December, in Luanda, between Angola and the European Union [EU]. The agreement, to last 5-years, will reinforce the country’s capacity to negotiate and implement international trade agreements, with focus on Angola’s participation in the Free Trade Zone of the Southern Africa Development Community [SADC]. The agreement will stimulate commercial infrastructures and boost trade, as well as bring about more technical assistance and monitoring of projects.

[ANGOP 04/12/14]

CameroonEPA ConsultationThe European Union [EU] and the Ministry of Economy, Planning and Regional Development [MINEPAT] held discussions in Yaounde on November 19th to seek ways of better implementing the Economic Partnership Agreement [EPA] which among others entails a free movement of goods. Talks concluded with an inaugural EPA committee meeting. Which came on the heels of the 11th EDF programme through which the EU funds socio-economic projects. The EU is to assist rural development sector projects in 2015 at a cost of €50 million.

[Cameroon Tribune 11/12/14]

13

WESTERN AFRICA

ECOWAS / TRADE

NigeriaDevaluation Of Naira To Reduce ImportsThe devaluation of the Naira will increase the cost of importation and consequently reduce imports by 3-5% particularly for the manufacturing industries which will be affected in terms of importation of raw materials. The Naira was devalued by the Central Bank of Nigeria [CBN] by N13, from N155 to N168 to US$1 in order to strengthen the economy. Meanwhile Nigeria is working toward becoming less import-dependent.

[Premium Times 01/12/14]

SON, NACCIMA To Improve SMEs’ Access To Export MarketThe Standards Organisation of Nigeria [SON] and the Nigerian Association of Chamber of Commerce, Industry Mines and Agriculture [NACCIMA] have commenced plans to strengthen partnerships to improve Nigeria’s non-oil export potential. The agencies hope to improve certification processes of small and medium enterprises [SME] in order to make their products acceptable in the global markets. The agencies will focus on meeting international standards and eliminating fake and substandard products. SON aims to certify 50 SMEs to ISO 9001 quality management systems and new testing laboratories have recently been accredited. It will work with stakeholders and educate them on the basic reasons why their products are being rejected in the global market to build the export business in Nigeria.

[Guardian 19/11/14]

Ministries To Execute Trade ProgrammesPresident Goodluck Jonathan has directed the Ministry of Industry, Trade and Investment to liaise with other agencies to execute the Government’s investment and trade agenda in order to reduce imports with locally made substitutes. Each will work with the Central Bank of Nigeria in execution of a comprehensive investment and trade agenda to create local production to substitute unnecessary imports with local goods with the final aim of self-sufficiency. The falling price of crude oil is yet another reason for Nigeria to diversify the economy, rather than rely on oil receipts.

[Daily Independent 03/12/14]

14

AngolaCabinda Province Deep Water Port Work on the first of 3-phases of construction of the deep water port in Caio Litoral, in the Angolan province of Cabinda, will start in June 2015. The Caio Porto company, which was awarded the construction of the port, is currently carrying out work to cordon off the port area and building access roads. The first phase, costing an estimated US$600 million [60 billion kwanza], comprises the extension of the commercial wharf wall and support for the platform, which is 36m long, facilities for ship repair [200m2], a breakwater, access canal [150m wide], new road access and basin [215m wide]. Completion of the first phase of the deep-water port is scheduled for mid-2016.

[Macauhub/AO 01/12/14]

CameroonKonecranes / Gottwald Supply Equipment To DITOn November 10th, Douala International Terminal [DIT], the port of Douala container terminal concessionaire received 4-new gantry cranes totalling 3.5 billion FCFA, delivered by the Finnish company, Konecranes. Two mobile cranes were also received on October 10th. They were built by Gottwald for 1.3 billion FCFA. The new equipment acquired by DIT should help to speed-up circulation at the container terminal over the Christmas period when imports generally increase in volume. Meanwhile the Minister of Transportation has ordered the auction sale and removal of all containers at the port beyond 90 days and has requested that container vessels be given priority at the port. There are some 2,000 containers unclaimed at the port.

[Business in Cameroon 18/11/14]

Cote d’IvoireUS$875 Million Loan From China Eximbank For Port ConstructionAccording to the director general of Abidjan port, China Eximbank has loaned Ivory Coast US$875 million [466 billion CFA francs] for the construction of a second container terminal at Abidjan port. Ivory Coast plans to increase capacity at the port which serves as a gateway for landlocked nations to the north and a transit point for cocoa beans.

Construction would include the enlargement of the Vridi canal, the construction of the second container terminal and a roll on/roll off terminal to start Q1 2015 and expected to be completed by 2021.

The contract to manage the new terminal was awarded last year to a consortium led by France’s Bollore who will invest a further 200 billion CFA francs for other port infrastructures and equipment which will boost port traffic.

Cargo traffic has been on the rise as the country recovers from a decade of political stability. Total tonnage surpassed 21 million tonnes in 2013.

[Reuters 09/12/14]

15

WESTERN AFRICA

PORTS

GambiaIndia To Extend Line Of Credit For Banjul Port ExpansionIndia has given an in-principle approval for the extension of a line of credit [LoC] to Gambia, adding to the US$45 million LoC that the country has already received. The money will be used to expand and upgrade infrastructure at Banjul port. The proposal has been forwarded to the Shipping Ministry for review after due consideration by the Development Partnership Administration wing under the Ministry of External Affairs [MEA]. Established in 1972, Banjul port serves as the main seaport of Gambia and accounts for almost 90% of the country’s trade in terms of volume and weight. The expansion project entails increasing port capacity in terms of berth space for vessels, a container terminal, acquisition of cargo handling equipment and computerisation. The Ministry of Shipping is to carry out an appraisal of the project and the findings will be forwarded to the MEA.

[EXIM 21/11/14]

16

PORTS WESTERN AFRICA

GhanaUS$1.5 Billion Tema Port Expansion ProjectThe Ghana Ports and Harbour Authority [GPHA] has signed a Memorandum of Understanding [MoU] with Meridian Ports Services [MPS] to expand Tema port. MPS is a joint venture [JV] between APM Terminals [35%], Bolloré Africa Logistics and GPHA. At the completion of Tema’s 4-year expansion, it will have the largest container capacity of any West African port, with the constructed of new berths, breakwater, quay wall and terminals. Dredging of the port to adequate depths will also be undertaken as part of the expansion exercise.

The project will cost in the region of US$1.5 billion and is expected to start by Q2 2015. The 2-berths are expected to be completed by October 2016, a move that will make it possible for related infrastructure to be completed by December 2018. These include a rail and road network, railway terminal and a 1.4z0km query. The project will involve expansion of hinterland connections to include rail and road network between Tema and Accra.

Dredging will see the port capable of handling larger and deeper draught vessels. Construction of a truck park will also be part of the expansion plan with the land already acquired for this construction. Expansion works will help the port handle increasing cargo which currently handles about 70% of import cargo. The expansion of the port will be crucial for the port to handle growth and providing of a world class infrastructure to support the country’s economic growth and is the largest port investment in Africa.

Expansion Factbox - Development of 4-deep water berths. - Access channel to accommodate larger vessels now entering the West African trade. - A 6-lane highway to be constructed between Tema port and Accra to facilitate easy port access as well as construction

of a truck park. - Project will upgrade hinterland connections. - Will increase port’s annual container throughput capacity to 3.5 million TEU [currently 1-million]. - 70% of Ghana’s national trade and traffic currently goes through Tema Port.

17

WESTERN AFRICA

PORTS

Crawler Crane For Takoradi Port Expansion As part of Takoradi Port’s expansion the vessel Ocean Freedom has arrived at the port with a crawler crane with a lifting capacity of 400 tonnes and reach of 40m. The unit, believed to be the biggest of its kind in West Africa, is to be used for the general service area of the oil and gas hub. Once assembled it will be able to lift all cargo types including heavy machinery for the Takoradi Port expansion work and for the oil and gas rig offshore. The Monitowac 600 crane was loaded from Houston, Texas, and will be used for preparation and completion of the hub. The financiers are Sub-Sea 7 in a deal between them, Viking Offshore and the Ghana Ports and Harbours Authority [GPHA] as landlord. On general port expansion, section A of Phase-1 has been completed: namely a 1.1km breakwater. The dredger for the works arrived in December.

[Ghanaweb 17/11/14]

Takoradi Port Dredging StartsBelgian contractor Jan De Nul has started dredging to a depth of 16m at Takoradi port. Dredging will continue until March 2015 when work will begin on quay wall construction for completion by mid-2016. The work is part of a US$717-million expansion project for Ghana Ports & Harbours Authority [GPHA]. China Harbour Engineering Company has built a 1.7km breakwater, reclaimed 53,000ha, deepened the access channel, and provided sites for bulk and offshore services terminals. Finance was provided by China Development Bank and KBC Groep of Belgium. Takoradi will continue to handle manganese, bauxite, clinker, and limestone, but GPHA envisages the port becoming a one-stop shop for oil and gas activities. Facilities for the offshore industry include a desalination plant and a floating dock to service supply vessels.

[Maritime 360 23/11/14]

MoroccoNador West Med Port Works Pre-Qualification A pre-qualification notice for infrastructure works at Nador West Med Port has been issued. Contractors have until 22 December to forward pre-qualification documents. The project will involve protective works [dikes] over a length of 5,400m, a container terminal with more than 2,400 ml of quays and an oil terminal with 3 oil tanker stations. The project also involves construction of a coal terminal with a 360 ml quay, a ro-ro station, service dock and all associated dredging, foundation, land-fillings and earthworks.

[UKDTI 02/12/14]

18

PORTS WESTERN AFRICA

NigeriaCargo Throughput Increases In Q3

Cargo throughput in the nation’s seaports has increased by 12.5% in Q3 2014. Nigerian Ports Authority [NPA] data shows that cargo throughput in Q3 stood at 22.3 million MT an increase of 12.5% over 19.8MMT handled in Q3 2013. Ports handled 4.21MMT of general cargo up 41.7% over Q3 2013; 2.6MMT of dry bulk cargo up 0.6% while Liquefied Natural Gas [LNG] stood at 5.1MMT, a growth of 5.8% compared with 4.9 MMT in 2013. Ports handled 5.2MMT of refined petroleum products; 277,694 TEUs of laden containers and 217,080 TEUs of empty containers representing 9.1%, 3% and 9.5% increases respectively over Q3 2013. In Q3 2014, a total of 1,405 oceans going vessels called at all Nigerian ports as against 1,366 vessels in Q3 2013 up 2.9%. The total gross registered tonnage [GRT] of all ocean going vessels in Q3 2014 amounted to 38MMT up 9.8% over the GRT of 34.6MMT in Q3 2013. A breakdown follows:

Port GRT in Q3 2013 Vessels Handled

Lagos Port Complex [LPC] Apapa 10.1MMT up 9% over 9.3MMT 397

Tin Can Island 13.1MMT up 16.8% over 11.2MMT 475

Calabar Port Complex 1.05MMT up 40% over 751,553 MMT 72

Port Harcourt 1.9MMT up 37.8% over 1.4MMT 126

Onne Port Complex 10.4MMTup 7% over 9.7MMT 207

The NPA is focused on improving existing port infrastructures with the rehabilitation of port quay walls and aprons, deepening channels and upgrading common user facilities and wreck removal in the channels. And in continuation of alleviating the gridlock around Apapa area, the NPA has secured Federal Executive Council [FEC] approval for the construction contract for a 3-lane road in Tin Can Island Port with a 3-month completion period. This is in addition to the repairs of the Apapa-Oshodi Express way by Julius Berger.

[This Day 28/11/14]

Customs Rakes In N950 Billion The Nigeria Customs Service has collected N950.1-billion as revenue into the federation account between January and November 2014. With this, the Service inches towards its N1.2 trillion revenue target for the year. The figure increased by 23.4% over the N769.3 billion garnered last year.


Automation Of Maritime Agencies The Federal Government is to appoint a lead agency in its quest to automate and link up all government agencies in the maritime sector. According to the Association of Nigerian Licensed Customs Agents [ANLCA], this agency will coordinate activities in the sector to avoid conflict and ensure transparency. The project is expected to be up and running within the next 3-months and will involve the satellite coverage of all agencies, including Nigeria Maritime Administration and Safety Agency [NIMASA], Nigeria Ports Authority [NPA], Nigerian Shippers’ Council [NSC], Standards Organisation of Nigeria [SON], NAFDAC and all concessionaires of the ports.


Bayelsa Seaport Project To Get Oil Export TerminalBayelsa State government has disclosed that its proposed deep seaport project at Agge in Ekeremor Local Government Area, Bayelsa West, will have an oil export terminal component. Work has commenced on the Agge end of the West Senatorial Road to facilitate the development of the port.


19

WESTERN AFRICA

PORTS

CameroonCustoms Harmonisation / Accedes Revised Kyoto ConventionCameroon has acceded to the International Convention on the Simplification and Harmonisation of Customs Procedures [Revised Kyoto Convention - RKC], making the country the 97th Contracting Party to this Convention. The RKC will enter into force on 18 February 2015. Cameroon is currently the World Customs Organisation’s [WCO] Vice-Chair for West and Central Africa. Both highlight the nations commitment towards trade facilitation, particularly in moving towards a continent-wide free trade area aimed at boosting intra-African trade.

[Cameroon Tribune 26/11/14]

20

REGULATRY WESTERN AFRICA

World Bank Pledges US$1.2 Billion For Infrastructure ProjectsThe World Bank on 29th November said it will loan East African nations US$1.2-billion to revive inland waterways on Lake Tanganyika and Lake Victoria and improve handling capacity and efficiency in the Mombasa and Dar es Salaam ports as part of efforts to boost integration in the region.

The 5-nation East African Community [EAC], which also comprises Uganda, Rwanda and Burundi and has a combined US$110-billion economy, is working to package cross-border infrastructure plans to make them more attractive to potential financiers. Oil and gas discoveries in Kenya, Uganda and Tanzania has turned the region into an exploration hotspot. The funding will help the bloc’s investment plans over the next 3-7 years. The EU is also ready to support projects worth up to US$750-million. The bloc notes in a 2015-2025 strategy that it needs between US$68-100-billion, over the next decade to develop roads, ports, railways, transmission lines and oil and gas infrastructure.


New Scheme Seeks To Cut Freight Costs In East AfricaA US$16 million [Rwf11bn] fund has been set aside for innovators who can come up with effective strategies to cut costs on transport and logistics in East Africa. The competition, dubbed Logistics Innovation for Trade [LIFT], will provide grants ranging from US$200,000 to US$750,000 to winning proposals from innovators from across the world but whose ideas will be implemented in East Africa. Managed by Trade Mark East Africa [TMEA], the challenge seeks to trigger and introduce innovative approaches to tackling freight and transport costs in East Africa which reportedly has the highest freight and transport costs in the world. Applicants are expected to devise strategies of reducing the time taken along the major East African transport corridors. The 2-major corridors are; the Northern Corridor, which links EAC countries to Mombasa Port, and the Central Corridor which connects to Dar-es-Salaam. Details can be found on the LIFT website www.lift-fund.com

[New Times 26/11/14]

EAC Endorses Infrastructure Investment BlueprintA proposed 10-year investment strategy for priority infrastructure projects in the East Africa Community [EAC] to tackle the existing gaps received backing during the EAC Heads of State Summit on infrastructure development and financing. The event was themed, “Supporting the implementation of the Common Market through the development of efficient infrastructure networks and intermodal transport systems in the EAC.”

The infrastructure projects, which include railway, energy, ports and harbours, and information and communications technology, among others, are expected to cost at least US$100 billion. The endorsement comes at a time when the region is in negotiations with development partners, including the World Bank, the African Development Bank, European Investment Bank as well as individual countries, particularly China and India, in efforts to raise the required resources.

The World Bank pledged US$1.2 billion toward infrastructure development while Trademark East Africa [TMEA] pledged US$350-million to support regional infrastructure for ports, one stop border points [OSBP] and road connectivity. The summit further called for the fast-tracking of the development of regional capacities to support the implementation of priority infrastructure projects and programmes. The EAC will engage bilateral and multilateral cooperating partners to mobilise technical and financial support. The Council was also urged to hold annual briefing roundtable for infrastructure investors and financiers focusing on mobilising the requisite resources over the next 10 years.


21

EASTERN AFRICA

EAC / COMESA

EthiopiaLogistics Strategy Report American Nathan Associates Inc. [NAI] was hired in March 2014 by the Ethiopian government to conduct a detailed study of the logistics system and develop a national logistics strategy. It has submitted its 4th findings to the Ethiopian Maritime Affairs Authority [EMAA] dubbed ‘the blue print’, which will be the country’s future logistics strategy.

Ethiopia ranks 141 in the world in the logistics sector, according to a 2013 Ethiopia Economic Update II report published by the World Bank. It dropped from the 104th position it held 5-years ago. Reports published indicate poor logistics is hampering trade and foreign direct investment. Importing a 20ft container costs US$2,400, whereas export costs US$200 more, the report states nearly double its neighbours. The process can also take up to 40 days. This has forced the government to develop a more in-depth detailed strategy for the logistics sector. NAI submitted its 3rd draft report in the US$1million project, in mid-October 2014.

The new strategy being developed aims to slash the time it takes to import and export by half. It was submitted to a committee formed by the EMAA which is responsible for the follow up of the progress on the study composed of representatives of the Office of the Prime Minister, Ethiopian Shipping & Logistics Services Enterprise [ESLSE], Ethiopian Freight Forwarders & Shipping Agents Association [EFFSAA], Ethiopian Revenues & Customs Authority [ERCA], Federal Transport Authority [FTA], Ministry of Transport [MoT] and financial institutions, such as the Commercial Bank of Ethiopia [CBE].

[Addis Fortune 23/11/14]

KenyaSigns Trade Pact With UAEKenya and the United Arab Emirates [UAE] have entered into an investment promotion agreement that is expected to increase the volume of trade between the 2-countries. The agreement was signed by Cabinet Secretary Henry Rotich for Kenya and the UAE Minister of state for financial Affairs Obaid Al Tayer. The Promotion and Protection of Investments agreement eases some restrictions and provides more assurance for investors in both countries by creating favourable conditions. Both countries will promote and encourage investments from the partner country while also offering reciprocal protection. Kenya requires investors in many areas especially the infrastructure sector which needs more than Sh100 billion investment on annual basis. Besides the construction of the Standard Gauge Railway line and expansion of the road network, Kenya also plans to invest more in making the port of Mombasa more efficient.

[Capital FM 23/11/14]

Single Window Modules Completed By Year EndDevelopment of the Kenya Trade Net System modules will be completed by December 31, KenTrade has said. This will pave way for a full single window system to be used by the East Africa member states aimed at boosting trade in the bloc. According to the agency, 15 of the 20 modules are ready. The system also known as the Kenya National Electronic Single Window System, provides a one-stop shop for lodging import and export documents. The system went live on October 31, 2013. The integration of the Simba System to the Single Window System will also be completed by December 31, 2014.

[The Star 21/11/14]

22

Exchange Sees Tax Change Curbing Foreign InvestmentThe Nairobi Securities Exchange [NSE] has asked Kenyan authorities to defer the introduction of a capital gains tax in 2015 as it may deter foreign investors. The bourse made submissions to the Kenya Revenue Authority [KRA] and the Finance Ministry over the past 2-months, lobbying for the levy to be put on hold. Foreign investors have expressed concern that there is a lack of clarity about how the tax will be administered.

Kenya will introduce the 5% tax on Jan. 1 as part of its effort to fund infrastructure projects such as a second international port in Lamu and a railway from Mombasa port to the Ugandan border to boost trade.

The NSE’s ambitions to introduce new products and listings next year could be undermined by the tax. The FTSE NSE Kenya 25 Index gained 20% this year, the biggest increase after Tanzania and Uganda among 14 African bourses.

The Nairobi exchange, expects at least 12 companies to begin trading next year, with as many as 10 of them debuting on the Growth Enterprise Market Segment, or GEMS, for small- and medium-sized companies. The market is targeting increasing its number of listed companies to 100 from 61 in the next 4-years. The NSE has a market capitalization of US$25.2 billion, ranking it as sub-Saharan Africa’s 3rd-biggest after South Africa and Nigeria.

[Bloomberg 26/11/14]

RwandaGovernment, Investors Sign Deals To Boost ExportsFollowing a 2-day Service Investment Forum in Kigali agreements were signed between Pan African Logistics Limited [PAL], Africa Smart Investments and Kwetu Film Institutions, geared toward scaling up service exports.

Under the MoU, PAL will commit US$10-million and 150 trucks to boost the country’s transport between Kigali and sea ports. Africa Smart Investments will commit US$15-million toward promoting and exporting products made in Rwanda across the globe. Under the agreement, government will offer the necessary support, including logistics, infrastructure and facilitation to the investors. Government is targeting to increase its exports to a tune of 28% per year by 2018, according to the 2nd Economic Development and Poverty Reduction Strategy.


Tanzania Trade Share In EAC IncreasesTanzania’s share of intra-regional trade in East African Community [EAC] region has increased from 15% in 2005 to 26% by last year a rise from US$317-million to US$1.5-billion over that period. Tanzania’s trade volume is only second to Kenya within the EAC region.

The nation is addressing concerns over road blocks. By 2015 it hopes to have only 3-weighbridges between Dar es Salaam and Nyakanazi border post. Where necessary weigh-in-motion bridges will be deployed to check trucks who do not comply to load limitations on the roads. Due to the efficiency at Dar es Salaam port and the removal of non-tariff barriers, intraregional trade is growing rapidly and contributing to economic growth.

The Government has been working with customs officials from Burundi, Rwanda and Uganda in ensuring that cargo clearance is not delayed by tax payments hence the process starts before goods arrive at Dar es Salaam port.

[Tanzania Daily News 19/11/14]

23

EASTERN AFRICA

EAC / COMESA

KenyaMombasa Port Handles 14% More Cargo East Africa’s biggest port, Mombasa, expects to handle at least 14% more cargo this year, helped by its expanded capacity and a marketing drive. The Indian Ocean port handles fuel, consumer goods and other imports for Uganda, Burundi, Rwanda, South Sudan, Democratic Republic of Congo [DRC] and Somalia, and exports of tea and coffee from the region. Gichiri Ndua, the port’s managing director, noted an expected cargo throughput of 25.5-million tonnes this year, up from 22.31-million handled in 2013. Between January and October 2014, cargo volumes rose 8.3% to 15.8-million tonnes compared with the same period in 2013. The port expects the number of containers handled to rise to 980,000 TEUs from 945,000 TEUs. Uganda remained the leading destination with cargo destined to the country increasing by 14% to 2.8-million tonnes in the January-October period. Top imports in the region remained motor vehicles and industrial products including steel.


MauritiusStrabag And Archirodon To Extend Port Louis PortA joint venture [JV] between Austria’s Stabag and Greek harbour specialist Archirodon Construction [Overseas] Co.SA has won the US$115-million contract to extend the container port at Port Louis, Mauritius. The project will be carried out in 4-phases to allow the harbour to remain operational while work is going on.

Phase 1 will see a new 244m berthing quay built on the sea bed, following foundation work to construct a combi-wall of tubular steel piles and sheet piles. Phase-1 also includes the construction of corresponding concrete structures, quay facilities, and the relocation of 3-container cranes and is due for completion in mid-2015. Phases 2 to 4 involve the modernisation of 560m of existing harbour facilities. These should be completed by December 2016.

[International Construction 20/11/14]

24

PORTS EASTERN AFRICA

TanzaniaTICTS Set To Decongest Dar PortThe Tanzania International Container Terminal Service [TICTS] has invested Sh50 billion in equipment in efforts to decongest Dar es Salaam port. TICTS noted that loading and off-loading of containers has doubled from 15-25 TEU/hr and that up to 1,000 containers are handled per day compared to just 500 in the past. However there remain challenges including old port infrastructure. TICTS has called on port authorities to increase the number of gates so that the facility can serve many vehicles at a time to boost its effectiveness and reduce congestion.

[IPP Media 07/12/14]

Feasibility Study For Kasanga Port Rehabilitation CompleteThe Tanzania Ports Authority [TPA] has conducted a feasibility study to improve Kasanga Port, in Kalambo District, Rukwa Region. The study was undertaken by Ciril Risk & Infrastructure Solutions Ltd. The government recognizes shortage of facilities so in the financial year 2014/15, the Ports Authority has set aside 130m/-for the purpose of purchasing a new fork lift with a 3-tonne capacity and construction of staff houses. Other equipment such as terminal tractor and vehicles are in Ports Authority purchase plans as is the increase in the depth of current berth. The port is the second biggest on Lake Tanganyika after Kigoma.

[All Africa 26/12/14]

Zanzibar Terminates Ship Register Contract The Zanzibar government has terminated an exclusive ship registration contract with Philtex Corporation [BELIZE] Limited of Dubai. According to the Ministry of Infrastructure and Communications the termination was effective from October 13th 2014. This was an exclusive 10-year contract with the Zanzibar government to manage the Tanzania Zanzibar International Register of Shipping [TZIRS]. All ships registered under the TZIRS flag are now required to report the Zanzibar Maritime Authority within 2-months.

[EA Business Week 30/11/14]

25

EASTERN AFRICA

PORTS

South AfricaSouth Africa / China In Deals To Enhance Bilateral TradeSouth Africa and China entered into several strategic agreements to strengthen bilateral relations, trade cooperation and create sustainable mutual investment opportunities. The 2-countries signed a 5-10-year Strategic Programme on Cooperation focusing on several avenues of bilateral cooperation which would also extend to African affairs and China–Africa relations, as well as international affairs and issues relating to the economic bloc of Brazil, Russia, India, China and South Africa [BRICS].

The agreements aligned with President Jacob Zuma’s State visit to China this month during which official talks with China’s President Xi Jinping were held. Improved cooperation in the financial sector, in particular, would allow easier access to each country’s financial markets. Further, to redress structural imbalances in China–South Africa bilateral trade, agreements were signed to synergise bilateral cooperation in trade and investment between South Africa’s Department of Trade and Industry and China’s Ministry of Commerce. An Action Plan on Agriculture Cooperation from 2014 to 2016 was also agreed. China and South Africa also agreed on the protocols of phytosanitary requirements for the export of maize and apple fruit from South Africa to China, as well as the protocols of phytosanitary requirements for the export of dates from China to South Africa.


DTI To Launch African Export-Focused ‘Platform’ For Business In 2015The Department of Trade and Industry [DTI] is establishing a platform through which it, state-owned companies and government organisations can share information on available tenders and contracts in other African States. While African governments provided various trade, finance institutions and government bodies with information on market opportunities in their respective States, these institutions lacked a channel through which this intelligence could be shared. The DTI realised there was also a need for the platform to also share trade issues and bottlenecks and has been working on the platform for the past year and a half. The platform will look to establish points of contact for businesses at the various African trade departments and foreign missions, enabling companies easier access to information related to local market conditions and prospects.


- China is South Africa’s largest trading partner - Bilateral trade stood at US$24 billion in 2013. - South Africa seeking a more balanced trade relationship as it targets 5% growth rate by 2019. - South Africa encouraging more Chinese buying missions starting in 2015

27

SOUTHERN AFRICA

SADC / TRADE

ZimbabweZimbabwe And South Africa Boosting Trade TiesZimbabwe and South Africa are to sign a Memorandum of Understanding [MoU] to strengthen trade and industrial relations. Efforts to attract investment follow a similar initiative in September when the Zimbabwe Government and the South African Embassy organised a mini-investment conference to look at projects in the infrastructure sector. Investments are covered by a Bilateral Investment Promotion and Protection Agreement [BIPPA] between the 2-countries, ratified in 2009. South Africa is Zimbabwe’s biggest trading partner where South Africa exported US$2.26 billion to Zimbabwe and imported goods to the tune of US$1.58 billion.

[The Herald 25/11/14]

Sharp Decline In Vehicle ImportsBeitbridge border post is experiencing a significant decline in volumes of imported used cars following a 20% increase in excise duty which took effect on November 1. The border is processing less than 40 vehicles per day compared to over 150 cars before the move. Zimra was making over US$100,000 on car imports at Manica transit shed a day, but the figure has declined to around US$30,000. An increase in customs duty on single cab vehicles with a payload of more than 800kg went up from 20% to 40%. Buses with a 26-passenger carrying capacity and above will pay 40% from 0% duty, while duty for double cab trucks was reviewed from 40 to 60%. Vehicles with an engine capacity below 1500cc increased from 25 to 40% and vehicles above 1500cc remained at 86%, inclusive of VAT and surtax.

[Herald 20/11/14]

28

South AfricaTenders Prepared Across South Africa Ports SystemTransnet National Ports Authority [TNPA] plans to release a series of proposals request in the coming months for terminal prospects at a number of the country’s commercial ports.

As landlord and ports master planner, the TNPA would release the tenders in line with Section 56 of the National Ports Act, which enabled it to contract with private terminal operators to design, construct, rehabilitate, develop, finance, maintain and operate port terminals or facilities. Operators would be selected through a competitive bidding process and the term of the operating licence could be between 20-25 years.

Cape Town Port The tender for a cruise terminal has been reissued on December 8th. The tender closes on February 5th 2015.

Durban Port Request for proposals for a cruise terminal tender are undergoing internal governance processes. A liquid-bulk terminal is being proposed. TNPA is also considering a reconfigured request for proposal for Island View Lot 100 as potential operators indicated that the current 12,000 m2 site was too small.

Richards Bay Tender being prepared for a floating dock.

Saldanha Bay Tender being prepared for a floating dock and under Operation Phakisa a tender is being prepared for an oil-rig repair facility.

East London Liquid-bulk terminal being proposed.

Boegoebaai Harbour TNPA is working with the Northern Cape government and the Department of Transport on the prospect of developing a new deep-water harbour at Boegoebaai, north of Port Nolloth. The port could function as a new minerals export channel for commodities such as zinc, manganese and coal.

TNPA acknowledges that previous tender processes had been associated with protracted processes and long delays, many of which were associated with securing the necessary environmental an regulatory approvals. The aim is to reduce the process time to 18 months, but could take 24-36 months to complete.

[Creamer 08/12/14]

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SOUTHERN AFRICA

PORTS

Kalmar Smartstack Goes Live At Durban Container TerminalKalmar, part of Cargotec, has implemented the Kalmar SmartStack solution at Durban Container Terminal [DCT] for real-time container inventory reporting and management - the first terminal to implement Kalmar SmartStack. DCT is currently running 11 Kalmar straddle carriers with SmartStack and further eight are to be phased in over the coming weeks. In addition, 11 Terex straddle carriers will be phased into the SmartStack solution. Transnet Port Terminals [TPT] can offer an automated inventory with real time container positioning. The move will result in a reduction in manual stack inventory, a reduction in lost containers and lower overall operational costs.

[Nasdaq 17/11/14]

TPT Optimise Durban EfficiencyTransnet Port Terminal [TPT] has spent R1.3 billion on new port terminal equipment, including straddle carriers and rail mounted gantries, which will allow Durban Container Terminal to accommodate larger vessels and optimise efficiencies. TPT’s operational capital is set to reach R2.7bn in the next 2-years, 80% more than the current financial year. The division handles operations for the container, bulk, break-bulk and automotive sectors. Its future plans include handling of commodities such as gas and liquid bulk.

The Durban Container Terminal Pier 2 has received 10 Kalmar straddle carriers, 4-straddle carriers and tow rail mounted gantries, which were assembled on site and handed over to Transnet last month. The units are diesel electric and boast of a twin-lift capability and increase the terminal’s compliment of twin-lift straddles from 32 to 46. The equipment will boost Pier 2 performance, which has been ranked first among African ports based on berth productivity year to date. This move is in line with Transnet’s strategy to improve rail operations for the diversion of cargo from road transport to rail. The overall R1.3bn spend, which is part of Transnet’s Market Demand Strategy, will see capacity in the Durban terminal rise to 3.3 million TEUs from 2.9 million TEUs by 2017.

TPT’s spending is set to rise to R7bn in 2018/19. This will be part of the R33bn investments set aside for TPT, which are over 10% of the overall 7-year R312bn. Money will be spent on the refurbishment of all the country’s terminals including Durban, Richards Bay, East London, Port Elizabeth and the Ngqura Container Terminal, Saldanha and the Cape Town Terminals. Over the next 2-financial years, the container terminals at Durban Pier 1 and 2, Port Elizabeth and Ngqura, as well as Cape Town, will receive a total of R2.7bn for both equipment and infrastructure. All this will increase the division overall container terminal capacity from 4 million TEUs to 7 million TEUs by 2019.

[Business Report 25/11/14]

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