CMA CGM / DELMAS UPGRADES ASIA - EAST AFRICA SERVICESFull Story On Page 03

AFRICATRADE-WATCH

Nigeria: NPA Completes Due Diligence On Lekki Port

ISSUE 42 | NOVEMBER 2014

Tanzania: Bagamoyo Port Construction To Start In 2015

Zimbabwe: EU Lifts Trade Sanctions

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Nigeria: NPA Completes Due Diligence On Lekki Deep Seaport

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CMA CGM / DELMAS Upgrades Asia - East Africa Services

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Tanzania: Bagamoyo Port Construction To Start In 2015

Zimbabwe: EU Lifts Trade Sanctions

Contents

Top Stories

03 /African Group News

09 /Events Diary & News Briefs

11 /Pan Africa

21 /Eastern Africa

15 /Western Africa

29 /Southern Africa

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AFRICATRADE-WATCH

ISSUE 42 | NOVEMBER 2014

News Headlines By RegionWestern AfricaAngola: Trade With Canada Reaches US$2 Billion

Cameroon: Kribi Port Management Tender Finalists / Decongestion Strategies Drafted For Douala Port

Gabon: Used Vehicles Over 3 Years Old

Ghana: Maritime Trade Slows By 21% / Transport Minister Satisfied With Work On Tema Port Expansion / Takoradi Port Dredging Begins

Morocco: Expands Cooperation With China

Nigeria: Trade With China Hits N1.7 Trillion In 7-Months / Indonesia Targets US$5 Billion Trade Volume / NPA Completes Due Diligence On Lekki Deep Seaport / Channel Dredging Will Open Calabar Seaport / New Port Order Launched By NSC / Nigeria To Control Road Load Weight

Togo: Lomé Container Terminal Commissioned

Eastern AfricaRegional: Comesa-EAC-SADC Tripartite FTA To Be Launched Mid-December 2014

Ethiopia: Signs Agreements With Ireland

Kenya: Imports From The U.S. Triple / UK Trade Body Concludes Kenya Mission / Cargo Clearance Set to Take Shorter Time / Kilindini To Get 15 Cranes / South Africa, Kenya Sign Maritime Integration Strategy

Mozambique: Nacala Port Expansion Works On Track / Beira Port Cargo To Grow 15%

Somalia: Mogadishu Port Sees US$1.5 Million Revenue Within A Month

Tanzania: Agents Back New Regulations On Customs Clearance / Sino-Tanzania Relations: 3rd China-Tanzania Investment Forum / Vietnam Expands Co-Operation / China-Funded Bagamoyo Port Construction To Start In 2015

Southern AfricaRegional: SADC Sets Fund To Boost Infrastructure

Namibia: Signs Trade Agreement With Turkey / TransNamib Appoints Manager For Turnaround Project

South Africa: Trade Deficit Narrows To R2.91bn In September / Trade Fairs Address China-SA Trade Imbalances / Mexico Sign Cooperation Agreements / Denmark To Improve Trade / DTI Attend Cuban Trade Fair / Two Terex® RMG Cranes For Durban / Richards Bay Bulk Terminal Exceeds September Target / Port Authority Needs More Autonomy, Lean Structure

Zimbabwe: EU Lifts Trade Sanctions

me / NPA New Port Order

2

Website: www.delmas.comEmail: lhv.marketing@delmas.netTweet: @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

Disclaimer of LiabilityCMA CGM / DELMAS make every effort to provide and maintain usable,

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

the accuracy, completeness, or relevance to the user’s purpose, of

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

indirect or consequential loss or damage suffered by any person as a

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

or actions undertaken on the basis of, such data and information are the

sole responsibility of the reader.

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

Rachel Bennett Dominic Rawle

Asia - East Africa Service UpgradeFollowing our core strategy of service development and improvement, from the end of November 2014, CMA CGM / DELMAS will enhance its Asia-East Africa services from 2 to 3 dedicated weekly services. The move focuses on serving the expanding and strategic markets of Kenya, Tanzania and Austral Africa. Our Mozambique services remain unchanged with the New Mozex.

NEW: ASEA KENYA Service A direct weekly service Asia to Mombasa which operates 5 vessels of 2800 TEU. The first voyage will start on 26 November 2014 with M/V Cape Maas Salients.

Advantages - Improved transit time to Kenya by 3 days - Smooth weekly transhipment management to Somalia through Mombasa - Efficient inland solutions to domestic Kenya, Uganda, Rwanda, South Sudan - Full coverage of Asian ports with efficient transhipment management in South East Asia

Rotation: Port Kelang – Tanjung Pelepas – Singapore - Colombo - Mombasa - Colombo East Bound – Port Kelang

NEW: ASEA TANZANIA Service A weekly direct service focused on Asia-Tanzania and the Indian Ocean using a fleet of six 2800 TEU vessels. The first voyage will start on 23 November 2014 with M/V Pacific Voyager ASEA Tanzania.

Advantages - Exhaustive coverage of Tanzania with Dar Es Salaam, Zanzibar and Tanga in relay - Shorten transit time to Dar Es Salaam by 8 days - Fortnightly calls to Male and Port Victoria - Reaching the heart of DRC, Malawi, Burundi, Zambia, Rwanda via Dar Es Salaam

Rotation: Singapore - Tanjung Pelepas - Port Kelang - Colombo - Male [DELMAS only] - Port Victoria - Dar Es Salaam - Colombo - Singapore

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AFRICAN GROUP NEWSCMA CGM / DELMAS

UNCHANGED: New Mozex ServiceA fix day weekly direct service between Port Kelang, Indian Ocean and all main Mozambique ports.

Advantages - Full coverage of Mozambican ports with excellent transit times - Wide range of connections to & from Far East - Efficient connection with dedicated Rhino Express feeder serving Quelimane and Pemba - Inland service to African landlocked countries via Maputo, Beira or Nacala corridors: Malawi, Zambia, Zimbabwe, DRC &

North RSA

Rotation: Port Kelang, Tanjung Pelepas, Pointe Des Galets, Tamatave, Maputo, Beira, Nacala, Port Louis, Port Kelang

Intermodal SolutionsWe offer a Through Bill of Lading [TBL] service to landlocked African countries with be-spoke land transportation solutions through the East Africa gateways of Mombasa, Dar Es Salaam, Nacala, Beira and Maputo.

Connections are available to 8-countries: Kenya [domestic], Uganda, Zambia, Zimbabwe, Malawi, Rwanda, South Sudan, Burundi and Democratic Republic of Congo [DRC].

We have a team of intermodal specialists on standby located in every key market in Africa to ensure smooth operations.

For more information on inland services please see our CTBL page: http://www.delmas.com/products-services/our-services/ctbl

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

Asia - East Africa Service Upgrade

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PC Hebdo: New Direct Call In Tema CMA CGM / DELMAS has improved its PC Hebdo service with a direct link from North Europe to Tema port in Ghana. The service offers improved transit times.

Rotation: Dunkirk, Antwerp, Le Havre, Montoir, Tangiers, Dakar, Abidjan, Tema, Tin Can, Abidjan, Dakar, Tangiers, Dunkirk

France - West Africa Service ImprovedCMA CGM / DELMAS has improved its service from the port of Rouen, France to West Africa. From the beginning of November cargoes from Rouen to West Africa will be loaded on our Dunkrus Express service with full coverage of all West African ports via our hub in Tangiers.

Advantages - Direct, fast and reliable service between Rouen and Tangiers - Relay in Tangiers with our Europe-West Africa Lines - Efficiency of our teams at Tangiers hub - Transhipments reduced to one instead of two to West African

destinations - Shorter transit times

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

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

Transit Times

Tema

Hamburg 26 days

Antwerp 23 days

Le Havre 20 days

Transit Times From Rouen

Rouen Rouen

Abidjan 20 days Namibe 33 days

Cotonou 21 days Onne 35 days

Dakar 13 days Pointe Noire 25 days

Douala 39 days Port Gentil 29 days

Libreville 31 days Tema 24 days

Lome 39 days Tin Can Lagos 26 days

Luanda 35 days

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AFRICAN GROUP NEWSCMA CGM / DELMAS

Casa Europe Service Configuration Improvement New Calls In Vigo And TangierStarting early November, the Casa Europe line will call in two new ports namely Vigo and Tangier. The service offers very competitive transit times from Casablanca to Rotterdam and Antwerp [respectively 5 and 6 days] with relays on the Baltic Sea and Canada particularly for Morocco reefers.

http://www.cma-cgm.com/products-services/line-services/flyer/CASA4

Dunkrus Express Launched For 2014-2015 Moroccan Citrus / Vegetables To North EuropeCoinciding with the Moroccan citrus and vegetables season CMA CGM will run the Dunkrus Express service in addition to the Casablanca Europe Service. Starting October 17 in Casablanca, Dunkrus Express will connect the 3 major Moroccan ports to Portsmouth, Dunkirk, Rotterdam, Antwerp and Rouen and will offer many competitive advantages including improved transit times.

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Cote D’IvoireFrench National Assembly President Meets CMA CGM GroupOn a recent visit to Cote d’Ivoire, Claude Bartolone, President of the French National Assembly, met Pierre Héry, General Manager of CMA CGM and Delmas Ivory Coast. Héry presented the activities of the Group as well as future developments.

During the visit, the Ambassador of France organized a visit to the port with French CEOs and management of the Autonomous Port of Abidjan. Noting that the CMA CGM Group has a 25% stake in the management of the Ro-Ro Terminal of Abidjan.

Meanwhile our logistics subsidiary, CMA CGM Transit Transport, ensures through Bill of Lading to Mali, Burkina Faso and deliveries and positioning of containers.

CameroonCMA CGM Open New 3CTC Logistics Platform To further facilitate land operations in Cameroon, the CMA CGM Group opened on October 27, the CMA CGM Cameroon Container Terminal [3CTC], a logistics platform covering 2-ha. The facility is completely secured and strategically located 2 km away from the port of Douala. With 18 committed and experienced agents in African logistics and adapted equipment [2 reach stackers, 1 empty handler, 2 forklifts], 3CTC offers high performance land solutions. The launch compliments the ever expanding Group facilities offered throughout the region. It follows the opening earlier this year of the Dakar Container Terminal [TCD2].

In perfect synergy with Delmas Cameroon, the 3CTC team is ready to address the various challenges and to position itself as an indispensable partner, expert in land area logistic operations.

Patrick GuyotGeneral Manager, CMA CGM Cameroon Container Terminal

From left to right: Mr. Claude BARTOLONE, President of the French National Assembly, Mr. Yacouba HIEN SIE, GM Abidjan Port, Mr. Georges SERRE, French Ambassador in Ivory Coast and Mr. Pierre Héry, GM CMA CGM and Delmas Ivory Coast

“”

CMA CGM Cameroun Terminal Container [3CTC] team

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AFRICAN GROUP NEWSCMA CGM / DELMAS

New Nigeria Agency Area Our local agency in Nigeria, CMA CGM DELMAS Nigeria Ltd, has launched a new local web area to keep pace with the continuously evolving requirements of its customers. The area offers useful information such as:

- Vessel Rotation Number - Empty Return Status - Customer Refund Application Status - Local Release Documents Required - Schedules

For Delmas Nigeria:http://www.delmas.com/local/nigeria

For CMA CGM Nigeria:http://www.cma-cgm.com/local/nigeria

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WEBSITECMA CGM / DELMAS

November 2014 16-17 Nigeria Com (Lagos, Nigeria) http://nigeria.comworldseries.com/

17-19 9th African Economic Conference (Addis Ababa, Ethiopia) http://www.uneca.org/aec2014

18-19 ARA Storage and Distribution Forum (Abidjan, Côte d’Ivoire) http://www.afrra.org/uk/event/storage-and-distribution-forum

19-21 5th Africa Public Private Partnership Conference (Abidjan, Ivory Coast) www.africappp.com

29-30 15th Francophonie Summit (Dakar, Senegal)

December 2014 1-5 Maritime Week Africa 2014 (Cape Town, South Africa) http://citiesandports2014.aivp.org/en

January 2015 29-30 9th Indian Ocean Ports & Logistics (Maputo, Mozambique) http://www.transportevents.com/EventsDetails.aspx?EventID=EVE115

March 2015 19-21 ZAMBIAWATER: Zambia Water Infrastructure (Lusaka, Zambia) www.zambiawater.com

26-27 13th Intermodal Africa North 2015 (Lagos, Nigeria) www.zambiawater.com

June 2015 18-19 West Africa Anti-Corruption Summit (Accra, Ghana) http://www.c5-online.com/2015/624/west-africa-anti-corruption-summit

9

AFRICAN SHIPPING

EVENTS DIARY

ANGOLA - Brazilian Odebrecht Angola has won a contract worth

US$268.2 million for the 3rd phase construction of a water supply system in Benguela province.

- Indonesia’s state energy firm Pertamina is expected to sign a deal to import crude oil from Angola’s state energy firm Sonangol.

BURKINA FASO - West African Resources has secured a 2-year $5-million

convertible loan facility from Macquarie Bank to complete its feasibility study of the Mankarga 5 heap leach gold project. First production expected by Q4 2015.

CAPE VERDE - Port management company Enapor should be privatised by

mid-2015 according to Cabo Verde’s Minister of Infrastructure.

CONGO - Italian Eni has made a new important oil discovery in the

Minsala Marine exploration prospect located in the Marine XII Block offshore Congo-Brazzaville with the potential of 1 billion barrels.

GABON - Ophir Energy is expanding its West African footprint via its

latest acquisition deal of an additional 2-oil blocks offshore Gabon buying 100% stakes in the Nkouere and Nkawa blocks, taking its total acreage in Gabon to over 15,000 km2 across 6-licenses.

GHANA - Canadian Windiga signed an agreement for a 20-year power

purchase agreement with the Electricity Company of Ghana for the construction and operation of a 20MW solar power plant in the northern community of Tilli.

GUINEA - President Conde has replaced his security and energy

ministers: Mahmoudou Cisse, a judge, was named minister of security and civil protection. Cheikh Taliby Sylla, a former project director for the Chinese-built Kaleta dam, was named minister of energy and hydro-electric power.

NIGERIA - Phone tower group IHS has raised $2b in equity and $600m

in debt to finance infrastructure spending. IHS predict Africa could need 200,000-300,000 mobile towers over the next 10 years to meet future broadband demand, including up to 40,000 in Nigeria alone.

TOGO - Manganese developer Ferrex announced the environmental

permit for its Nayega manganese project, in N.Togo, has been granted. Ferrex will now focus on finalising the definitive feasibility study and securing the mining permit before the end of Q4.

Western AfricaETHIOPIA - A potential Egyptian-Ethiopian industrial zone is being studied

with targeted trade volume between both countries is over $5b.

KENYA - National Cement is planning to construct a new coal-fired

power plant in Kajiado to power it’s mining and clinker manufacturing unit that is also planned. The Lamu coal plant project will cost US$2bn.

MADAGASCAR - Lemur Resources has started discussions with the newly

created Ministry of Strategic Resources, the Ministry of Energy and State-owned electricity company Jiro Sy Rano Malagasy over the proposed Imaloto independent power producer licence which would give Lemur the right to build, own and operate a coal-fired power plant comprising 3x15 MW units within 10km of its Imaloto project.

MOZAMBIQUE - India’s International Coal Ventures Limited will invest $500m to

build infrastructure and logistics to support mining at its newly acquired coal blocks in Mozambique.

- The foundation stone for the construction of the US$466m Moamba-Major dam on the Incomati River and related works was laid Friday at a ceremony attended by the President.

TANZANIA - Nigeria’s Dangote Cement has applied for a licence from

EWURA to build a 75 MW coal-fired plant in Tanzania that would power a $500m cement factory now under construction.

- Kibo Mining has completed the technical work for Phase 1, Stage 1 of the definitive mining feasibility study (DMFS) for its Rukwa coal-to-power project (RCPP) ahead of schedule. It is now awaiting the final technical report expected by end of November.

- The Tanzanian Ministry of Energy and Minerals (MEM) has published an Electricity Supply Industry Reform Strategy and Roadmap for 2014 to 2025, which aims to implement sweeping structural reforms that would streamline project finance structures and liberalise the energy sector - likely to involve investment of $11.4-billion.

SOUTH AFRICA - Wescoal has secured R200-million in funding from Investec

Bank to be used primarily for the commissioning of its Elandspruit colliery.

ZIMBABWE - Indian industrial engineering firm Jaguar Overseas Limited has

been awarded a tender to rehabilitate Harare Thermal Power station. It will undertake engineering, procurement, supply and installation works to US$76 million.

- Caledonia Mining’s 49%-owned Blanket mine is to see investment of $50m between 2015-17 & $20m between 2018-20 to improve underground infrastructure & logistics.

Eastern & Southern Africa

10

AFRICAN PROJECT

BRIEFS

Africa’s Transformation Through Africa50The 9th African Development Forum [ADF] opened on October 13th in Marrakech with the call by the African Development Bank Group [AfDB] for stronger emphasis on infrastructure and for ownership of the Africa50 Fund, a profit-driven entity seeking to provide risk-adjusted returns to its investors.

Many countries in the region are hungry for infrastructure investments, and now is the best time for African governments and development partners to focus on fast-tracking resources. Infrastructure is vital for transformation. Africa currently only invests 4% of its GDP in infrastructure, compared with for example China’s 14%.

The AfDB Group has made every effort to help bridge this infrastructure gap. The annual infrastructure financing need is about US$95 billion of which only US$45 billion is currently invested each year, from African governments, development finance institutions and the private sector. Thus Africa’s transformation largely depends on how well countries mobilize inputs from a range of stakeholders, promote infrastructure through new vehicles such as the Africa50 Fund, invest in their human capital, and foster good governance to enable a business-conducive environment.

Meanwhile the AfDB has recently placed emphasis on the key role played by the private sector in implementing infrastructure projects, especially in the power and transport sectors, for the development and transformation in Africa. It also stresses the need for sustainable tax systems and systematic analysis of new and innovative ways of mobilizing domestic resources.

[AfDB 13/10/14]

Africa50 Fund - The AfDB Bank created the Fund as the solution to stimulate and drive the African infrastructure market. - It seeks to reconcile governments’ strategic objectives of meeting investment needs in infrastructure and the

attractiveness of African assets to the growing sources of domestic and international capital. - Long-term aim is to invest US$10 billion in projects and facilitate total project investments of US$100 billion by

crowding in private-sector players and enticing investors. - Headquartered in Casablanca, Morocco.

CHANGING THE GAME FOR AFRICA

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PAN AFRICA

TRANSPORT / TRADE

Sub-Sahara Africa Implements Most Business Reforms WorldwideA new World Bank Group report finds that Sub-Saharan Africa had the highest number of business regulatory reforms globally in 2013/14, with 74% of the region’s economies improving their environment.

Doing Business 2015: Going Beyond Efficiency finds that Benin, Democratic Republic of Congo [DRC], Côte d’Ivoire, Senegal, and Togo are among the 10 top improvers worldwide, having improved business regulation the most in the past year among the 189 economies covered. Since 2005, all countries in the region have improved the business regulatory environment for small and medium-size businesses, with Rwanda implementing the most reforms, followed by Mauritius and Sierra Leone. The report shows that over the past 5-years, 11 different Sub-Saharan African countries have appeared on the annual list of the 10 global top improvers. Some have done so multiple times, such as Burundi, Cape Verde, Côte d’Ivoire, and Rwanda. Yet despite broad regulatory reform agendas, challenges persist in the region, where business incorporation continues to be costlier and more complex on average than in any other region.

The report finds that Senegal implemented regulatory reforms in six of the 10 areas tracked by Doing Business - a global high for the year. Thanks to such reforms, Senegal is gradually narrowing the gap with best practices seen elsewhere. For example, in 2005, completing every official procedure to import goods from overseas took 27 days. Today it takes 14 days, the same as in Poland. This year, for the first time, Doing Business collected data for a second city in the 11 economies with a population of more than 100 million. In Nigeria, the report now analyses business regulations in Kano as well as in Lagos. The report this year also expands the data for 3 of the 10 topics covered, and there are plans to do so for 5-more topics next year.

[World Bank 29/10/14]

The Doing Business Report SeriesThe annual World Bank Group report analyses regulations that apply to an economy’s businesses during their life cycle, including start-up and operations, trading across borders, paying taxes, and resolving insolvency. The aggregate ease of doing business rankings are based on the distance to frontier scores for 10 topics and cover 189 economies. For more information about the Doing Business reports, please visit doingbusiness.org or on doingbusiness.org/Facebook

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New U.S. Advisory Panel Promotes Trade With Africa

On November 5th, U.S. Secretary of Commerce Penny Pritzker announced the appointment of 15 private sector leaders to the new President’s Advisory Council on Doing Business in Africa [PAC-DBIA]. PAC-DBIA members, representing small, medium and large companies from a variety of industry sectors. The advisors were chosen at the Discover Global Markets Forum. The forum was designed to explore export opportunities in sub-Saharan African nations, including Côte d’Ivoire, Nigeria, South Africa and Mozambique, among others. Members were selected to advise President Obama, through the secretary of commerce, on strengthening commercial engagement between the United States and Africa. The advisory council will provide information, analysis and recommendations on U.S.-Africa trade and investment priorities, including job creation; developing and strengthening commercial partnerships to increase public and private sector financing in Africa; and analysing the effect of policies in the United States and Africa on U.S. trade and investment interests in Africa.

U.S. merchandise exports to sub-Saharan Africa increased 58% from 2009 to 2013, reaching US$24 billion in 2013. The annual growth rate of U.S. goods exports to sub-Saharan Africa has outpaced the rate of growth of exports to the world during this same period. Total U.S. exports of goods and services to the continent of Africa reached US$50.2 billion in 2013, representing total growth of 39% since 2009, or a 9% annual growth rate.

[US State Department 06/11/4]

For further information on PAC-DBIA view http://www.trade.gov/pac-dbia/

13

PAN AFRICA

TRANSPORT / TRADE

India-Africa Trade ForumAfrican leaders and Indian industrialists met at a closed session of the WEF India Economic Summit in Delhi, agreeing to an informal ambition of US$500 billion Indo-African trade by 2020. That represents a 5-fold increase from 2015, in which Indo-African trade is expected to reach US$100bn, and a 7-fold increase from 2013, when 2-way trade stood at US$70 billion.

Participants in the session included Ghanaian Vice President Kwesi Amissa-Arthur, Cote d’Ivoire Prime Minister Daniel Kablan Duncan, Indian industrialist Prakash Hinduja and Mahindra Group’s Shriprakash Shukla.

The Mahindra Group has set an internal target to make Africa the second largest “emerging market” in its operations, after the USA. Other Indian conglomerates, such as Tata, and Reliance, see Africa as a similar opportunity.

[Beyondbrics 05/11/4]

Africa-Irish Trade Increases 35% From 2010-2013Total trade between Ireland and Africa increased by 35% from 2010-2013, from just over €1.7 billion to over €2.3 billion. More than 300 business people and members of the African community came together for the recent Africa-Ireland Economic Forum, focusing on the business and development links.

Several Irish companies are already operating on the continent, including Kerry Group, Guinness, ESB International and Glanbia Nutritionals. In the last 3-years, Irish exports to sub-Saharan African increased by 27%.

Exports by Enterprise Ireland-supported companies to Africa last year totalled €550m. That’s expected to increase to €800m by the end of 2016. To coincide with the forum, the Irish Exporters Association has established an African Business Forum.

[APA 29/10/14]

For further information view http://www.irishexporters.ie/africa-business-forum-overview/

Afreximbank Mobile Payment Platform For AfricaThe African Export-Import Bank [Afreximbank] is working to introduce a mobile payment platform to support intra-African trade and payments. The initiative is expected to bring over US$50 billion of informal regional trade, which currently takes place on the continent, into the formal sector, with attendant benefits to governments, businesses and trade financiers. Afreximbank is working with Econet Wireless Group to develop and introduce the platform.

[Star Africa 05/11/14]

Sustainable Transport Plan For AfricaAfrican countries have moved closer to a cleaner, greener system of cars and public transport after ministers adopted a continent-wide sustainability strategy this month. Ministers and officials from over 42 countries across Africa signed a new framework for the transport sector, aiming to promote the use of low emissions vehicles, develop quality public transport and increase investment in clean technology.

This will take place alongside Africa’s 50-year development plan, Agenda 2063, which lays out the intention to dramatically improve transport links across the continent in coming decades. The conference was organised by Kenya, UNEP, UN-Habitat, the World Bank and the Africa Transport Policy Programme of World Bank.

[Kenyan Star 31/11/14]

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AngolaTrade With Canada Reaches US$2 BillionThe potential for growth of trade and bilateral investment between Angola and Canada is promising with negotiations for the signing of an accord for promotion and reciprocal protection of investment underway. Several Canadian business missions that visited Angola have showed interest in mining, infrastructure, civil construction, agricultural equipment, education, transport and information and communication technologies Trade reached US$2.3 billion in 2012.

Canada exported US$1.9 billion and imported US$109 million. Angola’s exports consisted of agricultural products, aeronautic items, clothing and machineries like gas turbines, while Canada bought oil and derivatives from Angola. In 2013, there was a light fall in the commercial transactions between the 2-countries down US$0.5 million but exports from Angola to Canada were more diversified, focusing mainly on crude oil, minerals, rocks, lime and cement.

[ANGOP 06/11/14]

MoroccoExpands Cooperation With ChinaChina will expand practical cooperation with Morocco in various areas to step up the China-Morocco ties. Yu Zhengsheng, chairman of the National Committee of Chinese People’s Political Consultative Conference [CPPCC], made a 3-day visit this month holding meetings with Moroccan King Mohammed VI, Prime Minister Abdelilah Benkirane and President of the Chamber of Representatives.

[Beijing Government 06/11/14]

NigeriaTrade With China Hits N1.7 Trillion In 7-MonthsThe trade volume between Nigeria and China in the last 7-months hit a record N1.7 trillion [US$10.3 billion] rising by 42.8% the highest in history. Nigeria is currently China’s third largest trading partner in Africa while China is the largest source of imports into Nigeria. The value of exports from Nigeria to China sharply increased by 147.5% to US$1.9 billion.

[NAN 29/10/14]

Indonesia Targets US$5 Billion Trade VolumeIndonesia is to target US$5 billion in trade with Nigeria within the next 3-years. The move is part of the Indonesian government’s plan to seek alternative markets for its exports, following the economic downturn in Europe and the United States. The National Export Development plan aims to enhance trade in food and beverages and energy.

Indonesia is the largest trade partner to Nigeria in the Southeast Asia with strong growth recorded in 2-way trade in 2012 which reached US$3.18 billion 50% higher than US$2.09 billion in 2011. Indonesia exports oil, vegetable fat, paper products, pharmacy, soap, electronics to Nigeria, while Nigeria exports oil, cotton and leather to Indonesia.

[Independent 23/10/14]

15

WESTERN AFRICA

ECOWAS / TRADE

CameroonKribi Port Management Tender FinalistsOn October 31st, Prime Minister, Philémon Yang, published a shortlist of companies contending for the logistics management at Kribi’s deepwater port following a recent tender. Three companies make up the finalists. The board rejected offers from Société d’exploitation des ports-Marsa [Morocco] and Sea Invest/CLGG [Belgium].

- Bolloré Africa Logistics / China Harbour Engineering Company [CHEC] / CMA-CGM - ICTSI [Philippines] - AMPT

This follows new requirements by the government in a new restricted call for tenders. The first bidding round was launched in February 2014 only to be quietly cancelled in March 2014. The government then integrated a new clause requiring the bidders to also build the 2nd container terminal at Kribi port along 700m of quay compared to the previous 350m. In light of this last-minute addition, with its contribution to the financing negotiation, the Chinese company China Harbour Engineering Company [CHEC] is an essential link and partner for those hoping to land the Kribi deep water port’s first container terminal.

The deep-water port of Kribi that will play a key role in the export of iron ore and aluminium to international markets. The port on the Gulf of Guinea will also act as a regional hub for the export of commodities from landlocked Chad, the Central African Republic [CAR] and the Republic of Congo. The world’s largest cargo ships [Capesize] will be able to operate out of this port.

The port, which was begun in 2012, has cost an estimated 500 billion CFA francs [US$1 billion]. Eximbank China provided 85% of the finance with the remaining 15% coming from the Cameroon government.

The construction has been undertaken by CHEC. Furthermore Bouygues and DTP Terrassement are to build the Edea-Kribi railway. The 100km rail will link the energy town of Edea to the seaside city of Kribi. Goods would be ferried through this line to the Kribi deep seaport. Bouygues and DTP Terrassement, a French consortium will construct the road.

Decongestion Strategies Drafted For Douala PortThe Port Authority of Douala [PAD] has announced the need of 24-hour continuous service at the port in order to reduce congestion during a consultation meeting between economic operators and the Ministry of Trade in Yaounde. Difficulties faced in anchoring ships containing goods which are sometimes perishable and the poor management of storage space were amongst the problems identified. Meanwhile, some operators were accused of abandoning goods for as long as 60 days, violating the 11 days stipulated in the regulation.

[RTV 08/11/14]

16

PORTS WESTERN AFRICA

GhanaMaritime Trade Slows By 21%Total maritime trade for Q2 2014 decreased by about 21% from 6 million tonnes in 2013 to 4.8 million tonnes in 2014. Ghana Shippers Authority figures show total imports decreased by 31% while total export showed 16% increase in tonnage. Total transit volume also decreased by 21% during the review period, while transhipment recorded over 31% increase.

Tema port’s total volume of trade decreased by 21% from 4.7 million tonnes in 2013 to 3.73 million tonnes in 2014. Import fell by 26% while export increased by 24%. Transit cargo through Tema Port fell by 22% while transhipment increased almost 29%. Takoradi Port also experienced a 21% decrease from the 1.36 million tonnes recorded for the 2013 period, to 1.0 million tonnes during the review period. Import tonnage decreased by 60% while export tonnage increased by 11% over the 2013 tonnage. Total transit tonnage recorded for the Takoradi Port during the review period increased by 42% from 6,145 tonnes in 2013 to 8,740 tonnes. On the import side, the total liner trade amounted to over 1.33 million tonnes for the review period. This was 22% less than was recorded for the 2013 period.

Total break bulk recorded for the period was 576,222 tonnes, a decrease of 32% from the 2013 record. The dry bulk trade for the review period was 53% less than the 2013 tonnage, while the liquid bulk trade saw a 7% decrease from the 2013 tonnage.

[GhanaWeb 16/10/14]

Transport Minister Satisfied With Work On Tema Port ExpansionMrs Dzifa Ativor, Minister of Transport, has expressed satisfaction on the expansion works at the Tema Port to improve its operations and meet international standards. The US$120 million Bulk Handling Jetty construction project, which started in 2013 is being executed by Amandi, an international construction engineering firm and expected to be completed in November 2015. Other projects comprise of provision of basic port infrastructure such as breakwater, quay wall, terminals and dredging to adequate depths. During a working visit to the project site, Ativor noted both ports are undergoing massive expansion works and it is expected that a section of the construction of the breakwater would be completed in October.

[Spy 08/11/14]

Takoradi Port Dredging BeginsDredging at Takoradi Port is to begin in December 2014 and run through until March 2015 followed by the construction of the quay wall which will end in 2016. The dredging, which forms part of the Takoradi Port expansion project, will pave way for the construction of the quay wall at the port. The dredging would ensure single handling of cargo to reduce cost mostly associated with import and export of commodities. Jan-de-Dul, a construction firm from Belgium, will undertake the works.

Expansion works include construction of oil services terminal, reclamation of 53,000 ha, dredging of an access channel and construction of a bulk terminal. When completed, the US$450 million project is expected to position the port to receive bigger vessels, improve the turnaround time and eliminate double handling of cargoes. Manganese, bauxite and other bulk cargo operations would be transferred to a new dedicated jetty. The expansion will free the existing manganese terminal for the increasing demand of other sectors, including oil and gas.

The first project was to extend the breakwater northward by 1.708km, the construction of bulk oil service terminal, the reclamation of a land area of 53,000ha, an open area for oil pipe, plant and machinery, as well as an access road to the port. Today, the breakwater is about 95% complete awaiting only signal or Harbour entrance light and a final pavement. The completion of the break water will offer the Port sufficient space in the port to expand the berthing facilities and oil and gas platforms. The north key will be extended by 620m. This will help shift all the major bulk carrier business that was taking place in the port to the north key. The port will be dredged from 11.5m to 16m so the port is capable of handling panamax vessels. The GPHA is also using an existing log pond to create a sufficient space of about 660m key front for supply vessels and oil and gas vessels. GPHA has signed with South African contractor Murray and Roberts to reclaim the land in partnership with Viking offshore. Meanwhile a brand new desalination plant for the oil exploration industry is offered in collaboration with Viking offshore which is currently producing 240 tons of water daily.

[Ghanaweb 06/11/14]

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WESTERN AFRICA

PORTS

NigeriaNPA Completes Due Diligence On Lekki Deep SeaportOne of the key investors in the US$1.5 billion deep seaport situated in Lekki, Lagos, the Nigerian Ports Authority [NPA] has completed due diligence on the Government’s involvement in the project.

The Government had required this as a condition before it will commit its resources into the construction of the project. This news comes after reports that the construction of the seaport is hampered by the inadequate funding from financial institutions. On completion, the port is expected to ease congestion presently plaguing ports in Apapa and propelling economic growth in the maritime industry. The port is expected to become operational by 2018 with the next phase of its construction starting in earnest. The project is a public private partnership [PPP] between the Government [represented by NPA], the Lagos State Government and the Tolaram Group. A shareholder’s agreement to this effect was signed in December 2012 by the 3-parties.

Sources close to the promoters of the project said Lagos State Government equity and that of the Tolaram Group are in place, whilst NPA is in the process of making its equity contribution to the project. It was gathered that NPA carried out and concluded its due diligence on the project through a KPMG to ensure accountability, transparency and value for money of the project. Apart from getting the concession from NPA to build Lekki Port, Tolaram has put together leading global consultants such as Standard Chartered Bank, the Louis Berger Group Inc., Delta Marine Consultants, BMT Asia Pacific, TBA Netherlands, Jardine Lloyd Thompson Pte Limited and GMaps, following which the EPC contractor, China Harbour Engineering Company has been appointed to build the port and the container terminal has been sub-concessioned to International Container Terminal Services, [ICTS] Incorporation, Philippines.

However evacuation bottlenecks may have dampened interest of some investors in the project. Promoters of the Lagos Free Trade Zone [LFTZ], Tolaram Group, is shopping for US$800 million from local and international financial institutions to actualise the project. The Lekki axis is largely a residential area, vehicular traffic in and out is very heavy without the added burden of trucks plying that route, which will worsen if trucks traffic is added especially as there is none existent rail connection. Already, the promoters have shifted the take-off date of the project for the 5th time. Tolaram Group has now said the port would commence operation in 2018.

LFTZ has secured US$150 million [N24.7billion] from the African Development Bank [AfDB] which has obtained its board’s approval for the funding [which forms part of the proposed $800 million]. Under the arrangement, the fund would be used for the construction of breakwaters, quays, approach channels, dredging of the basin and captive utilities such as water and power. According to AfDB, the port, when completed, will handle 2.5 million TEUs, 16.7 million tonnes [MT] of liquid cargo and 4.5 MT of dry bulk. Construction is expected to start in January 2015. The European Investment Bank [EIB] which is eager to invest in the project, has also got Principal Board Approval [PBA] to support the project with funds.

[This Day 24/10/14 / Daily Independent 23/10/14]

Lekki

Abuja

18

Channel Dredging Will Open Calabar SeaportThe dredging of the Calabar Port channel will attract South East traders to use the seaport when the project is completed. South East shippers from Aba, Onitsha, Enugu and Nnewi, have relied on Lagos and Rivers Ports to bring in their consignments as Calabar has not been able to attract deep ocean going vessels due to its low draught. The Government this month flagged off the dredging of the 84-km Calabar channel in Cross River State which is undertaken by the Calabar Channel Management [CCM] and Niger Global Engineering and Technical Company Limited. The channel will be deepened from 8m to 10m over a 2-year duration.

[This Day 31/10/14]

New Port Order Launched By NSCIn a move to achieve port efficiency the Nigerian Shippers’ Council [NSC] has designed a ‘comprehensive process manual’ for terminal operators and shipping companies as part of a new port order. As the ports regulator, the NSC maintains that with cooperation from stakeholders in the ports industry, the new measures will apart from reducing cost also remove delay in the process of goods delivery.

The measures from the Council are coming at a time when other stakeholders, mainly shippers, are calling for strong measures to improve trade facilitation in the country. The appointment of CPCS, a Canadian company; Nafith [Trident N Tel Group], Jordanian-American Logistics company and Mark Analytics under the aegis of Lagos Business School, is part of the moves for a new port order by the Council. Each will play an in-house technical advisory role and guide the Council on tariffs and generally in its role as commercial regulator in the ports. NSC has already announced the reversal of the current charges on storage by terminal operators to the 2009 rate. Storage charges were introduced by the terminal operators about 5-years ago in violation of the approved rate by the Transport Ministry in the same year. The Council also raised the free period for shippers who have containers at the ports as well as demurrage-free days. The NSC as the Economic Regulator will also ensure fair pricing, settlement of disputes arising from the system and automation in the ports.

[This Day 02/11/14]

TogoLomé Container Terminal CommissionedLomé Container Terminal [LCT], a 50/50 joint venture [JV] between TIL Group and CMHI [China Merchants Holdings International] has been commissioned in early October. Although TIL Group is 65% MSC-owned with the remaining 35% in the hands of GIP [Global Infrastructure Partners], Lomé Container Terminal is marketed as a multi-user facility. Once fully operational, the transshipment terminal will have an annual 2.2 million TEU handling capacity and allows shipping companies to deploy larger vessels in Togo. The Port Autonome Lomé [PAL] also serves the hinterland including Burkina Faso, Mali and Niger.

Three new cranes were also delivered to LCT last month. Each twin lift unit weighs 1,400 tons and has a capacity of 65 tons. They were landed from the ship ‘Zhen Hua 8’ and installed on the dock bringing the total number to 6. These Chinese ZPMC cranes are the most modern and the largest in Africa.

Facilities - Surface 54 ha - Capacity 2 million TEU [1 million] - Quay length 1,050m [400m] - Depth alongside 16.6m [14m] - Ship-to-Shore gantries 12 [6] with an outreach of 22-boxes wide. By February 2015 12 units to be positioned.

Another facility to function as a Gulf of Guinea hub is the Bolloré operated Togo Terminal also in Lomé. Its current 300,000 TEU capacity is being expanded to 1.2 million TEU through doubling quay length to 950m and dredging depth alongside from 12m to 15m, amongst others. Ship-to-shore equipment currently consists of 2-container gantries and 5-Mobile Harbour cranes. It remains to be seen what the fate will be of the container terminal in San Pedro, Ivory Coast, in which TIL owns a share of 16%. It handled 330,000 TEU in 2013.

19

WESTERN AFRICA

PORTS

GabonUsed Vehicles Over 3 Years OldIn accordance with the ‘Plan Sectoriel Environnement du Plan Stratégique Gabon Emergent’ [PSGE], the Gabonese government has decided to strengthen rules on imports of used vehicles. By decree # 002707/MPITPTHTAT/MEEDD issued 27 September 2013 by the Gabonese Ministry Of Transport and effective from 23 September used vehicles over 3 years are banned. Furthermore by circular # 005 MT/CAB issued by the Government of Gabon, all used vehicles older than 3 years must be re-exported by the end of September 2014.

- Ban is imposed on used vehicles older than 3 years - The scope of this ban includes the vehicles by private owners - Below 3 years, the original car registration document is mandatory for import of used vehicles - The regulation concerned personal cars, bus, lorry, van and trucks

NigeriaNigeria To Control Road Load Weight

Nigeria is set to implement the standards and procedures for control of dimensions, weight and loads of goods in order to improve on its dilapidated and inadequate infrastructure. Over 90% of freight transportation in Nigeria is by road, using trailer trucks and tankers that are more often overloaded depleting road assets. The ministry has already drafted new regulations titled, ‘Federal Highways [Control of Dimensions, Weights and Axle Load of Goods] Regulations, 2014’, which would enable transporters move goods and services from origin to destination in one haul. States are expected to equip road corridors with weighing facilities within 6-months and sensitise all stakeholders. The Ministry is currently constructing 15 weighbridges along major arterial roads while the Road Sector Development Team of the Ministry is also in the process of procuring Axle Load Control and Weight Stations.

[Daily Independent 17/10/14]

For more information on African Regulations, Pre-Shipment Inspection, Waivers and Import/Export Restrictions please see our Shipping Guide page:

http://www.delmas.com/products-services/shipping-guide

20

REGULATRY WESTERN AFRICA

Comesa-EAC-SADC Tripartite FTA To Be Launched Mid-December 2014

In October 2014, delegates from 26 countries of 3-main trading blocs in Africa agreed to launch the continent’s largest free trade area in December 2014.

In a move that will certainly heighten regional trading and integration regionally and continentally, ministers from the Common Market for Eastern and Southern Africa [COMESA], East African Community [EAC] and the Southern African Development Community [SADC] endorsed the launch of a tripartite Free Trade Area [FTA]. The FTA, popularly known as the Grand Free Trade Area, will encompass a population of 625 million with a GDP of US$1.2 trillion roughly half of the membership of the African Union and 58% of the continent’s GDP.

The COMESA-EAC-SADC Tripartite FTA will be launched during the Tripartite Summit of Heads of State and Government in mid-December 2014, in Egypt. To that end the majority of the Tripartite Member/Partner States have made ambitious tariff offers and have agreed on Rules of Origin to be applied in the interim whilst further work continues on product specific Rules of Origin.

The launching of the Tripartite Free Trade Area will be the first phase of implementing a developmental regional integration strategy that places high priority on infrastructure development, industrialisation and free movement of business persons.

[COMESA / Swazi Observer 28/10/14]

Intra-Africa Trade The Key To Boosting African Economies

The Tripartite FTA will be the largest economic bloc on the continent and the launching pad for the establishment of the Continental Free Trade Area [CFTA] in 2017.

It offers significant opportunities for business and investment within the Tripartite and will act as a magnet for attracting foreign direct investment into the tripartite region.

The business community, in particular, will benefit from an improved and harmonized trade regime that reduces the cost of doing business as a result of the elimination of overlapping trade regimes due to multiple memberships.

“

”21

EASTERN AFRICA

EAC / COMESA

FTA Principles

Duty-Free / Quota-Free Market Access No quantitative restrictions on goods that meet the Tripartite Rules of Origin.

Standstill Provisions / Incremental Liberalisation

Tripartite countries to present national tariffs and declare customs duty rates for all tariff lines at the start of the negotiations and should undertake not to raise customs duties on imports from other Tripartite countries before, during or after the negotiations, and to continuously reduce non-zero customs duties so they are completely eliminated as part of the Tripartite FTA.

Most Favoured National Treatment Tripartite countries should accord each other Most Favoured Nation [MFN] treatment where there is no prevention by country members from maintaining or concluding preferential or free trade agreements, either separately or together, with third countries provided such agreements do not go against the letter or spirit of the Tripartite Free Trade Agreement.

National Treatment Member countries to accord the same treatment to products manufactured in other Tripartite countries once imported into their territory as that accorded to similar locally manufactured products.

22

“”

Africa has now joined the league of emerging economies and the grand FTA will play a pivotal and catalytic role in the transformation of the continent.

Deputy Minister of Commerce and Industry of Zimbabwe, Chiratidzo Iris Mabuwa

EthiopiaSigns Agreements With Ireland

Irish President Michael D Higgins, on a visit to Ethiopia, witnessed the signing of 3-bilateral treaties agreements between Ireland and Ethiopia on November 3. One agreement covered the avoidance of double taxation and is expected to encourage the growth of trade and investment. A bilateral transport agreement will clear the way for direct flights by Ethiopian airlines from June 2015 between Dublin and Addis Ababa. This will provide the first-ever direct scheduled route between Ireland and Africa. The third agreement is a bilateral co-operation agreement providing a framework for a 5-year development partnership, estimated to be worth €136m.

[Ethiopian Government 04/11/14]

KenyaImports From The U.S. TripleImports from the United States have nearly tripled over the 9-months to September, leapfrogging it to Kenya’s third largest source market after India and China.

Data from the Kenya National Bureau of Statistics show Kenya has bought goods worth Sh120.41 billion from the US over the period, compared to Sh42.85 billion last year, a 181% growth. India sold goods worth Sh196.32 billion to Kenya up 3.3%, while China’s exports soared 39% to Sh178.72 billion. Growth of imports from the US has been attributed to Kenya Airways’ acquisition of several Dreamliner planes from Boeing, and spareparts.

A spike in imports over the 9-month period has seen the cumulative trade deficit nearly double to Sh798.24 billion, a 86% jump over last year’s Sh429.19 billion. Kenya’s total imports up to September amounted to Sh1.2 trillion against exports valued at Sh403 billion. Monthly trade deficit widened the fastest in September at Sh119.46 billion as exports contracted. Exports slumped 7.9% over the previous month to Sh40.47 billion from Sh43.96 billion. Imports rose by 11.1% over August to Sh159.94 billion, which also set a historical record for the highest value of imports in a single month. The USA is also Kenya’s third largest export destination, taking up with goods worth Sh28.42 billion, which saw it overtake the United Kingdom and Tanzania from the third and fourth slots respectively. Netherlands has moved to the second largest buyer of Kenyan goods after Uganda, with worth of exports to the country rising by Sh5.44 billion in the period to Sh29.01 billion. Tanzania remains Kenya’s fourth largest export market, while the UK has been relegated to fifth. South Africa is the only country that features among the top 11 exporters to Kenya, with Sh46.70 billion worth of goods in the 9-months, a 10.3% decrease over year’s Sh52.07 billion.

[Star 10/11/14]

UK Trade Body Concludes Kenya MissionThe United Kingdom Trade and Investment [UKTI] is satisfied with the just-ended Trade Mission to Kenya. Consisting of 20 companies, the mission met with United Nations and donor agencies and discussed ways of working together. Various sectors were represented including energy, property and finance, and communications. Companies also held a business to business session with DFID partners, Kenya Markets Trust and Finance Innovation.

[CajNews 04/11/14]

23

EASTERN AFRICA

EAC / COMESA

TanzaniaAgents Back New Regulations On Customs ClearanceCustoms agents will have to acquire a professional certificate to be allowed to operate in Tanzania from next January. The Federation of East African Freight Forwarders Association [FEAFFA], noted that it would be mandatory for all custom agents to obtain an East Africa Customs and Freight Forwarding Practising Certificate [EACFFPC]. A certificate is obtained after attending a training programme jointly implemented by the East Africa Revenue Authorities [EARAs] and the national freight forwarding associations affiliated to FEAFFA. In Tanzania, the Tanzania Freight Forwarders Association [TAFFA] has signed a memorandum of understanding [MoU] with TRA to utilise its Mikocheni based Institute of Tax Administration [ITA], to train local C&F agents and obtain the EAFFPC.

In 2012, FEAFA received US$495,980 from Trade Mark East Africa to improve import logistics through training of clearing and forwarding, but also customs officials to help address trade barriers in EA region. The grant targeted to train over 4,000 personnel by end of last year, saying the logistics costs account for about 42% of total cost of importing, while the costs associated with delays represent about 23% of the total import process cost. In 2011, TradeMark also handed FEAFFA a US$1 million grant to help improve capacity of C&F agents.

[Daily News 10/10/14]

Sino-Tanzania Relations: 3rd China-Tanzania Investment ForumTanzania and China reaffirmed their friendship and bilateral relations commitments during President Jakaya Kikwete’s 6-day state visit to China where the world’s second biggest economy pledged more investments and trade. Opening the 3rd China-Tanzania investment forum that attracted more than 500 Chinese firms and potential investors, Kikwete noted the Tanzania Investment Centre [TIC] had registered projects worth more than US$2,490m from China. In 2012/13, total trade volume was US$1,595.16m, of which China’s exports were worth US$1,099.42m while imports from Tanzania stood at US$495.74m. Some of the deals sealed in Beijing include a Memorandum of Understanding [MoU] on strategic partnership for development of Bagamoyo Port and an Economic Special Zone, that would see the district becoming the hub of investment and trade in the East and Southern Africa region. Also significant was National Housing Corporation’s (NHC) US$1.7 billion deal for 3-housing projects to include the Salama Creek Satellite City.

[Daily News 10/11/14]

Vietnam Expands Co-OperationTanzanian President Jakaya Mrisho Kikwete visited President Truong Tan Sang in Vietnam to improve trade relations.

During talks assessed the results of recent co-operation and agreed upon measures to further strengthen all-round co-operation agreeing to forge closer political ties by promoting exchange visits, people-to-people diplomacy and setting up twin relationships between major cities to deepen mutual understanding.

The leaders agreed to facilitate agricultural and telecommunications co-operation projects and to direct ministries to promote co-operation in investment, trade, agriculture, fishery, education, healthcare, telecommunications and maritime transport services within the South-South co-operation framework.

Tanzania expressed willingness to act as a bridge for Viet Nam to enter the African and East African markets and hoped Viet Nam return the favour by facilitating Tanzania’s entry into the ASEAN market. The leaders also witnessed the signing of a maritime transport co-operation agreement.

[Vietnamnet 28/11/14]

24

KenyaCargo Clearance Set to Take Shorter TimeA one-stop system to facilitate trade and customs clearance will be roll out fully by December, and is expected to boost competitiveness by reducing costs, the Kenya Trade Network Agency [Kentrade] announced. Kentrade has tested the Kenya National Electronic Single Window System successfully through 16 regulatory agencies that regulate import and export businesses. The project, when fully operational, is expected to facilitate international trade by reducing delays and lowering costs associated with clearance of goods at the Kenyan borders, while maintaining requisite controls and revenue collection. The country is expected to save up to US$250 million/pa [Sh22.34 billion] in the first 3-years of implementation and up to US$450 million [Sh39.75 billion] in subsequent years. Importers and exporters have complained that besides the Kenya Revenue Authority [KRA], whose processes have gone online, other procedures are still characterised by filling up forms, which take days to be approved. Kentrade blamed the high cost of doing business on the many agencies involved in the cargo clearance process, at times sending the same document to each other back and forth, leading to delays. The single window is expected to bring down the average cargo dwell time at the Mombasa port from 7 to 3-days.

[The Star 25/10/14]

Kilindini To Get 15 CranesThe Kenya Ports Authority [KPA] will get new equipment to improve operations at the Kilindini Harbour. Chairman Danson Mungatana said they expect 3-ship-to-shore gantry cranes and 12 new rubber-tyred gantry cranes by February. Mungatana said investment in cargo-handling infrastructure will help reduce ships’ turnaround time and cargo dwell time at the port.

[The Star 24/10/14]

25

EASTERN AFRICA

PORTS

South Africa / Kenya Sign Maritime Integration StrategyThe Transnet National Ports Authority [TNPA], which is one of 5-operating divisions of Transnet Group responsible for functioning of the 8-national ports systems, has signed a Memorandum of Understanding [MOU] with several ports in the region. An objective of the MOU’s is to boost intra-regional trade within the Southern African Development Community [SADC], which sits at 12%. Kenya Port Authority [KPA] was the 4th to sign, after the Maputo Port Development Company [MPDC], Namibian Port Authority [NPA] and the Ghana Ports and Harbours Authority [GPHA]. The TNPA will later this year extend these agreements to Angola, Tanzania and Sudan. The signing of these MOUs put Transnet in a position to share best practices with other countries as well as learn from them in areas in which they operated efficiently. Such MOUs are driven by the Port Management Association of Eastern and Southern Africa [PMAESA].

There are a number of obstacles hindering the progress of African ports. These include the lack of deep water berths, poor equipment and lack of maintenance and infrastructure, limited or no training, limited capital to develop and port infrastructure that is lacking.

Tau Morwe , TNPA’s Chief Executive

Unlike the TNPA whose mandate is that of being the national ports landlord, the KPA is landlord and operator. KPA said its port authority would use TNPA’s expertise in separating the ports into 2-different entities, landlord and operational divisions. Kenya’s principal port, Mombasa, is busy constructing an additional terminal. The current container terminal is 840m with a capacity of 1 million TEUs. In 2013, the port handled 22.3 million tonnes of cargo, a 9.1% increase from 21.9 million tonnes the previous year. This year, the port was expected to handle more than 1 million TEUs, a sign that it was overstretched. KPA is to fast track the construction of the second terminal and decided that it is going to be operated by a private operator selected through a bidding process. Transnet had been invited to bid. Mombasa port also serves landlocked countries including Uganda, Rwanda and South Sudan, along with eastern Democratic Republic of Congo [DRC].

[Business Report 27/10/14]

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26

MozambiqueNacala Port Expansion Works On TrackThe expansion and modernisation of the port of Nacala, in Nampula province, is being carried out at a fast pace despite starting with a month-long delay, according to the port management company Portos do Norte. Costing an estimated US$24m, the work is still in its first phase, which began last March and is scheduled for completion in June 2015. Current work focuses on the reconstruction of the north pier. Portos do Norte noted the planned work, of which around a quarter of the specifications have been carried out, includes a new container park that is almost complete and new roads that have yet to be finished. Later work will continue on docks #3 and #4, where the pier for large draft ships will be built. With the work now underway, the port has halved its cargo processing capacity, as only two of four piers are being used at the North Pier, as is also the case with the South Pier, which was originally only used for containers and is now being used for liquid cargo.

[Macauhub/MZ 10/11/14]

Beira Port Cargo To Grow 15%The cargo processed this year by operators from Zimbabwe, Zambia, Malawi and the Democratic Republic of Congo [DRC], as well as Mozambique, is expected to post a growth of 15% according to Cornelder the management company of Beira port. This growth is made possible with the launch of the Single Electronic Window and the acquisition of 2-new container gantry cranes that started operating in March increasing the number of containers moved per hour from 12 to 29 and reduce the length of stay of ships from 6 to 2-days. In 2013 the port handled 184,000 containers compared to a projection of 210,000 containers and 6.6 million tons of general cargo, including 4 million tons of coal mined in Moatize, Tete province.

[Macauhub/MZ 31/10/14]

27

EASTERN AFRICA

PORTS

SomaliaMogadishu Port Sees US$1.5 Million Revenue Within A MonthTurkish Albayrak Group, which has managed the Mogadishu port since the end of September is making significant progress. The Group has transferred US$1.582,000 million in revenues to the Government of Somalia over the last month. Since August 2012, Al-Bayrak Group has focused on the rehabilitation of the port and has promised without condition to transfer 55% of revenue to the government. The other 45% left to Group for administration - equipment investment, construction, and new docks.

[Dalsan Radio 05/11/14]

TanzaniaChina-Funded Bagamoyo Port Construction To Start In 2015Construction of a Chinese-funded port and special economic zone in Tanzania worth at least US$10 billion will start on 1st July 2015 according to the president’s office, for the first time setting a start date for the delayed initiative. Tanzania aims to build a huge port at Bagamoyo, 75km north of commercial capital Dar es Salaam, the site of the country’s main port, where shippers complain of congestion and inefficiencies.

A construction agreement for the port and associated zone was signed on 26th October and follows a framework deal signed last year. A start date for building work had taken time to set because of other negotiations about infrastructure to link the port to national transport networks. Tanzania signed an infrastructure development agreement with port developer China Merchant Holding International [CMHI] and Oman’s biggest sovereign wealth fund, the State General Reserve Fund [SGRF].

The planned Bagamoyo port, new investment in Dar es Salaam and other spending on roads and railways are part of Tanzania’s efforts to become a transport hub that could challenge the dominance of Mombasa in neighbouring Kenya.

[Reuters 27/10/14]

28

SADC Sets Fund To Boost InfrastructureA regional fund aimed at boosting economic growth in the Southern African Development Community [SADC] has been established. The Project Preparation and Development Facility [PPDF], which will be implemented through the Development Bank of Southern Africa [DBSA], is expected to fund the development of key infrastructure projects across the region. The purpose of the facility is to meet development costs in transport, including trunk roads and corridors, bridges, air, shipping, ports and border posts Construction or rehabilitation costing at least US$250,000 will qualify for funding. The DBSA is inviting member States and implementing agencies including the private sector to apply for grants for qualifying projects.

NamibiaSigns Trade Agreement With TurkeyNamibia and Turkey have signed a trade and economic co-operation agreement to improve trade relations and strengthen investment opportunities. The agreement will improve Namibia’s capacity to export finished goods to Turkey. In all 5-co-operation agreements have been signed between Namibia and Turkey since the establishment of the Turkish Embassy in Namibia in Windhoek in 2012. Bilateral trade has reached N$96 million worth of goods traded.

[Namibian 07/11/14]

South AfricaTrade Deficit Narrows To R2.91bn In SeptemberThe shortfall on South Africa’s trade account narrowed sharply to R2.91 billion in September from a revised R16.75 billion in August, as the import bill nearly matched that of exports. Exports in September rose by 18.2% to R90.79 billion and imports by 0.2% to R93.71 billion. The September data brings the cumulative deficit for the year to R73.74 billion, compared with a R63.07 billion gap over the same period in 2013.

[Moneyweb 31/10/14]

Trade Fairs Address China-SA Trade ImbalancesThe Department of Trade and Industry noted trade between South Africa and China has been on a steady growth but remains skewed in China’s favour. South Africa has made concerted efforts through expos and continued participation at trade fairs like the SIAL China and the recent 5th South African Expo which toured Hong Kong, Shenzhen, Chengdu, Shanghai and Beijing had resulted in a steady increase in exports. The expos, a flagship project for the Department of Trade and Industry [DTI], are undertaken in order to execute South Africa’s strategic objectives focussing on the Top 10 value-added products and investment projects to China.

One key enabler to South Africa’s industrialisation agenda is infrastructure development. South Africa will spend over R800 billion over the next 3-years, focusing on rail, roads, energy, and communication sectors. She encouraged Chinese investors to partner with South African companies in order to benefit from these opportunities. In 2013 total trade amounted to US$19.2 billion.

[CAJNews 21/10/14]

29

SOUTHERN AFRICA

SADC / TRADE

Mexico Sign Cooperation AgreementsFollowing a Bi-National Commission [BNC] meeting in Pretoria, International Relations and Cooperation Minister, Maite Nkoana-Mashabane, and her Mexican counterpart Dr José Antonio Meade Kuribreña signed 6-cooperation agreements aimed at strengthening relations including an “Action Plan: South Africa and Mexico towards a priority relationship”.

Diplomatic relations with Mexico were established in 1993 and the South African Embassy opened in Mexico City in 1994. Mexico has become one of South Africa’s top 3-trade partners in Latin America and the Caribbean, while South Africa is Mexico’s largest trade partner in Africa and largest African investor in Mexico.

[SA Government 19/10/14]

Denmark To Improve Trade Denmark is expected to improve trade relations with South Africa following a meeting between the 2-countries’ trade ministers following a meeting between the Department of Trade and Industry [DTI] and the Danish Minister of Trade and Development Cooperation. Denmark seeks to improve trade with South Africa by 50%.

- Total trade steadily increased: R2.9bn in 2009 to R4.8 billion in 2013

- Total exports to Denmark from S. Africa increased: R1bn in 2009 to R1.4bn in 2011

The Ministers also discussed amongst others Bilateral Investment Treaties and the Tripartite Free Trade Area. The Tripartite Free Trade Area has 3-pillars, namely Infrastructure Development, Industrial Development and Market Integration and will be launched next month. South Africa and Denmark’s bilateral trade and investment relations are governed by the European Union and South Africa, Trade, Development, and Cooperation Agreement.

[Star Africa 04/11/14]

DTI Attend Cuban Trade FairTrade and Industry Deputy Minister Mzwandile Masina led a delegation of 15 South African exporters to the 32nd Havana International Trade Fair in Cuba. The aim was to place South African products and services into Cuba and promote South Africa as a trade and investment destination.

In 2013, Cuba ranked 153rd as a destination for South Africa’s exports and 113th as a source of imports globally. Although South Africa has been experiencing a trade deficit with Cuba since 2009, the trade deficit gap is narrowed from R68 million in 2010 to R17 million in 2013.

One of the most significant agreements signed between South Africa and Cuba is the Joint Bilateral Commission [JBC]. The objective of JBC is to strengthen bilateral relations and cooperation between the two countries in all fields.

[Government 30/11/14]

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ZimbabweEU Lifts Trade SanctionsThe EU announced lifted trade sanctions [Article 96 of the Cotonou Partnership Agreement] against Zimbabwe effective 1st November, but kept travel bans against President Mugabe and the First Lady. The lifting of trade sanctions against Zimbabwe means that the 28-nation bloc would directly engage with Harare on bilateral economic ties.

Furthermore a UK Trade Delegation arrived in Zimbabwe at the end of October led by Alex Lambeth, Director of British Expertise a leading trade organization supporting British companies overseas, with extensive global experience in project finance, infrastructure, construction and development. The 3-day visit engaged at Ministerial level and with heads of parastatals discussing the realities of doing business in Zimbabwe as well as investment opportunities.

Figures - Trade deficit in the 9-months to

September stood at US$2.84 billion from imports of US$4.65 billion and exports of US$1.81 billion.

- South Africa remains the #1 export destination followed Mozambique, Belgium and Zambia.

- China’s is the 8th largest export market with Zimbabwe exporting goods worth US$6.3million.

World Bank Report On TradeA World Bank [WB] report released last year exposed shortcomings in Zimbabwe’s trade and transport system, responsible for pushing prices of local products to uncompetitive levels on international markets. The report, gave a gloomy picture of the trade facilitation network, and revealed that due to the poor state of the rail network, capacity at the National Railways of Zimbabwe [NRZ] had plunged to only 15% of its 18 million tonnes per annum potential. The cost of recapitalising rail infrastructure alone had shot to US$2.7 billion, from US$1.7 billion in 2006.

It indicated that Zimbabwe’s failing road and rail network, which required a combined US$3.8 billion to rehabilitate, demanded private sector involvement due to years of neglect and government’s failure to intervene. Rail transport is 60% cheaper than road and is suitable for transportation of bulky primary commodities from Zimbabwe. But 71% of Zimbabwe’s 3,077km rail system is in bad shape, with only 29% in stable condition. Only 17,400km of the 88,100km road network is paved and cost effective. This presents logistical headaches for exporting industries and makes Zimbabwean products uncompetitive compared to regional and international comparatives.

The Bank warned the government to rehabilitate the infrastructure and prepare it for anticipated boom as trade with the European Union returns to normal. Zimbabwe needs to develop the transport corridors linking to the west coast, including the Plumtree, North-South and Trans-Kalagadi corridors. Demand for transport is likely to rise in accordance with trade growth and if nothing is done now to improve the transport infrastructure, the transport may not cope with future demand, thereby becoming a major barrier to trade. It urged government to take immediate action to arrest trade obstacles, whose effects have been a marked slowdown in exports against imports, and a widening trade deficit, which was estimated at US$3.6 billion in 2012.

Rail freight is projected to increase by 57% from 2011 to 2015 and 22% from 2015 to 2020, when full capacity utilisation of 18 million tonnes is expected. In turn this will attract private investors. Therefore government needs to further strengthen its efforts to privatise rail services. Privatisation would also be in line with the [a global policy] which encourages governments to grant autonomy to the railways so that they can achieve full commercialisation. High transport costs have been compounded by inefficiencies at ports of entry, which are estimated to consume 70% of logistical expenses.

[Financial Gazette 23/10/14]

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SOUTHERN AFRICA

SADC / TRADE

NamibiaTransNamib Appoints Manager For Turnaround ProjectThe board of TransNamib Holdings has appointed Johan Piek as executive turnaround project manager effective 15 October. The company recently announced a 180 day N$400 million turnaround plan focused on a medium, term infrastructure and revenue stream development strategy. The company has already signed an agreement with General Electric for the refurbishment of locomotives. A medium term plan will be established to look into the refurbishment of other locomotives including the ones TransNamib bought from China. Piek’s focus will be on the revival of the 12 GE locomotives, supporting the human resources restructuring process, addressing the operational shortfall and long standing debt.

[Namibian 14/10/14]

South AfricaTwo Terex® RMG Cranes For DurbanTwo Terex® rail-mounted gantry cranes [RMGs] are now in operation at Durban Container Terminal, run by Transnet Port Terminals [TPT], a subsidiary of state-owned Transnet SOC Limited. The units have a span of 22.5m, lifting height of 11m and a lifting capacity of 41t under spreader. They will serve the rail terminal on pier 2 replacing two 25-year-old cranes which will increase both productivity and availability at the rail terminal.

In the past few years, Terex Port Solutions has also supplied 50 straddle carriers and 12 heavy-duty forklifts to the terminals in Durban, Richards Bay, Saldanha Bay and Cape Town. TPS also recently commissioned the CommTrac bulk terminal operating system at the Port of Saldanha Bay in partnership with the Terex DBIS division.

[Marine Link 09/11/14]

Richards Bay Bulk Terminal Exceeds September TargetThe Richards Bay Bulk Terminal, in KwaZulu-Natal, loaded 1.49-million tons of cargo in September, exceeding its monthly target of 1.32-million tons. Transnet Port Terminals [TPT] noted an improvement in the availability of equipment. During the month, the terminal averaged a gross vessel loading rate of 905 t/h, with some vessels having averaged 1,300 t/y, while the quick turnaround of wagons at the tipplers also contributed to the bulk performance.

[Engineering News 20/10/14]

Port Authority Needs More Autonomy, Lean Structure Transnet National Port Authority [TNPA] needs more autonomy and streamlining of its decision-making processes to deal with future expansion plans including the planned Durban dig-out port, an international study has revealed. The Organisation for Economic Co-operation and Development’s [OECD] international transport forum said the new port would require a reconsideration of the institutional framework, including the introduction of private operators.

The study by the OECD recommends that there should be an increase in the autonomy of TNPA such as creating a separate fund at the disposal of the port authority for infrastructure and maintenance. As the many stakeholders are dependent on the decisions that TNPA makes with regard to investments and planning with the port, it was important that the port authority was able to act efficiently and quickly to make binding decisions.

The report also noted the current internal organisation of TNPA within the broader Transnet structure appears to act as hindrance with decisions slowed down by lengthy procedures of approval due to the group’s structure.

[Business Report 04/11/14]

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PORTSSOUTHERN AFRICA