President Jacob Zuma says South Africa and the Democratic Republic of Congo (DRC) must explore ways to stimulate trade and investment initiatives in the two countries’ economies.

Speaking at the South Africa-DRC Business Forum during his two-day state visit to Kinshasa, Zuma said the prevailing state of the global economy dictated that regional integration should be at the top of the economic agenda.

“There is no stronger case for intra-African trade than the recent global financial crises, which decreased African export revenues generated from the traditional western markets.

“Africa has a potential market of US $2.6 trillion. The DRC and the countries surrounding it have a potential market comprising 200 million consumers. Yet, only 10% of global trade takes place between African countries,” said Zuma.

He underscored the current view that the time was right for investors to turn to Africa as the next growth frontier.

“African growth rates will average 6% in 2014. In comparison, growth in the developed world will average 3.6%.

“The DRC is estimated to grow at 8.2% in this year alone. Against this backdrop, any investor would be hard pressed to find higher rates of return elsewhere in the world.”

In line with creating conditions conducive to intra-African trade and building stronger trade links, South African companies are also investing in the DRC in the mining, telecommunications, financial services, road infrastructure, construction and hospitality sectors, amongst others.

Total South African investment in the DRC between 2006 and 2012 was estimated at R12.5 billion. Over 4 000 jobs were created from the investment projects.

South Africa and the DRC have a Bi-National Commission (BNC), which has so far seen 32 bilateral agreements being signed.

The Economic Cluster’s Joint Bilateral Working Committee (JBWC) -- under the leadership of SA’s Trade and Industry Minister Dr Rob Davies and the DRC Industry and Small and Medium Enterprises Minister, Remy Musungayi – has played a pivotal role in the practical implementation of the agreements.

Stimulating continental growth

Various African governments have signed the Tripartite Free Trade Area (T-FTA) to create fertile ground for more meaningful intra-African trade.

Zuma said one notable initiative already launched under the arrangement is the Tripartite North-South Corridor Investment Programme.

With initial funding of US$1.2 billion (a large proportion being funded from the African Development Bank and the Development Bank of Southern Africa), and strong support from the South African government, actions are being taken to fast track this project.

The programme supports some of Africa’s busiest trade routes: linking the port of Dar As Salaam in Tanzania to the copper belt in Zambia and into Lubumbashi in the DRC. It then continues down through Zimbabwe and Botswana to Africa’s largest and busiest port, Durban, in South Africa.

In effect, the North-South Corridor Initiative will service eight countries, Tanzania, the DRC, Zambia, Malawi, Botswana, Zimbabwe, Mozambique and South Africa.

President Zuma’s visit to the DRC also saw the signing of the treaty on the Grand Inga Hydropower Project – which is expected to be the world's biggest hydroelectric project, with the potential to power half of the continent.

The treaty outlines the development of the Grand Inga complex, which is estimated at US $100 billion.

Grand Inga will generate 40 000 MW of electricity when fully operational. – SAnews.gov.za

BRICS is an important grouping to deal with the global food crisis, promote global economic recovery as well as play a crucial role in global initiatives for food security.

This is according to a joint declaration of the 3rd BRICS Ministers of Agriculture and Agrarian Development, who met in Pretoria on Tuesday to adopt tangible measures to boost domestic agricultural productivity.

The ministers also welcomed discussions aimed at establishing the Basic Agricultural Information Exchange System of BRICS [Brazil, Russia, India, China and South Africa] countries.

However, they noted that such a system should not be a duplication of the Agriculture Marketing Information System (AMIS), created under the G20 and administered by the Food and Agriculture Organisation (FAO) of the United Nations (UN).

The gathering also reaffirmed its support for such a system as a platform for sharing information, and called upon technical experts in their countries to continue to work together for the development of the system.

Addressing food insecurity

With regard to addressing food insecurity, the ministers noted that all efforts must be geared towards enhancing agricultural production and adaptability of agricultural systems to climate change, especially for smallholder farmers.

They also agreed to cooperate in research, development and the application of technologies which enable agriculture to adapt to the effects of climate change.

The agreement was also extended to sharing information, policies and best practices to address common problems faced by BRICS countries in agricultural development.

It was also noted that the volatility in the price and supply of food and other commodities as well as constrained financial resources has compounded food insecurity for developing countries.

The ministers said strengthening agricultural cooperation among BRICS countries was imperative to ensure global food security and agricultural development. This would help to achieve sustainable development, eradicate poverty and realise the UN MDGs.

“(We) reaffirmed our commitment to strengthen areas of cooperation, namely, information exchange, food security, climate change, agricultural innovation and trade and investment, and gradually expand the cooperation so as to address the other challenges to food security.

“We also reaffirmed our commitment to assist other developing countries in enhancing agricultural productivity, paying particular attention to smallholder farmers, women and youth to improve world food security,” read part of the joint declaration.

The minister responsible for agriculture also welcomed the establishment of the BRICS Strategic Alliance for Agricultural Technology Cooperation, which will combine their efforts in addressing major challenges in agriculture.

The 3rd BRICS meeting also resolved to forge a stronger partnership for common agriculture and agrarian development, and endorsed the 2013/14 Calendar of Events for Agriculture Cooperation Working Group of BRICS.

Russia, India, China and South Africa thanked Brazil for its offer to host the 4th Meeting of the BRICS Ministers of Agriculture and Agrarian Development in 2014. – SAnews.gov.za

This is a copy of the analysis I provided to members of my forex mentor group before the markets opened on Sunday 27th October. There had been big moves the previous week and inexperienced traders will have been looking to jump in to trades now. I cautioned against and explained why after 10 years of […]Author information


Marc Walton
Author, Home Based Forex trader & Mentor for Over 10 Years

I have coached 1000's of home based forex traders. Currently developing a professionals trading course here at the Forex Training Academy with ex hedge fund trader:Fotis Papatheofanous, 20 year veteran trader & psychologist: Rich Friesen & former student of mine, turned full time trader & now a mentor::Omar Eltoukhy
TwitterFacebookGoogle+LinkedIn




The post Why Wait for A Pullback ? appeared first on Forex Training Academy.



read more Forex Training news

Transnet’s credit rating has been upgraded to ‘BBB’, with the upgrade affirming the state utility’s ability to raise funds without a government guarantee. The state owned ports and rail operator’s credit rating was upgraded by two notches from a previous “BB+” to “BBB”* by Fitch Ratings on Wednesday. The utility will be spending R307 billion [...]Transnet credit rating upgraded is a post from: South Africa Business



read more South Africa Business news

This is a precis of one of the*best forex books*I have read & deals specifically with the biggest problems most of you are having, especially dare I say it? mindset & Discipline* Trading in The Zone*By Mark Douglas. Notes supplemented by Josh Duesterbeck Successful traders have confidence in their trades. They trust themselves to do […]Author information


Marc Walton
Author, Home Based Forex trader & Mentor for Over 10 Years

I have coached 1000's of home based forex traders.


read more Forex Training news

Economic Development Minister Ebrahim Patel has welcomed the judgement of the North Gauteng High Court to dismiss an application to interdict the implementation of government’s new scrap metal export regulations. The new regulations came into effect on 16 September. In May, the minister issued a policy directive on scrap metal exports that was followed by [...]Scrap metal decision welcomed is a post from: South Africa Business



read more South Africa Business news

The African Development Bank (AfDB) says Africa’s recent economic gains will only be sustained by deepening regional integration across the continent.

This was stated by Donald Kaberuka, the AfDB President, when speaking on Monday at the opening ceremony of this year’s African Economic Conference (AEC) in Johannesburg, under the theme, “Regional Integration in Africa.”

He said the continent’s structural transformation could not take place without investment in infrastructure and regional integration.

“Whoever believes that Africa is rising can find plenty of evidence, but we Africans should not make the mistake of confusing a turning point with a tipping point.

“We have come to a turning point, we are not at a tipping point,” Kaberuka cautioned.

He also emphasised the need to address non-tariff barriers across borders to facilitate trade.

“There is no way this continent can sustain seven percent economic growth until we resolve issues around infrastructure and, in particular, energy.

“We cannot sustain seven percent with these 54 fragmented markets,” Kaberuka said, adding that the “Africa Rising” narrative must be engaged in a critical way.

While African countries have made progress in integration, results have been less impressive than expected, with intra-African trade estimated at between 12 percent and 16 percent.

To reach its goal, the AfDB is developing a new Regional Integration Strategy (RIS) for the period 2014–2023, which marks a steep change in its approach.

“There is a challenge of soft integration issues such as harmonising policy, movement of goods and services – we need to do a lot more,” said Nkosazana Dlamini-Zuma, the Chairperson of African Union Commission.

Dlamini-Zuma underscored the need for better coordination of policy, addressing the issue of overlapping membership between different regional economic blocs and collective ownership of the integration process to facilitate implementation.

For his part, Abdalla Hamdok, the Deputy Executive Secretary of United Nations Economic Commission for Africa (ECA), underscored the need for countries to harmonise regional and domestic laws to facilitate implementation of the different protocols.

“In order to realize the benefits of regional integration, our leaders should view these arrangements as more than sound bites in economic and politics and dedicate the effort to make them work,” he said.

Africa must take advantage of global power shift

Speaking at the ceremony, Pravin Gordhan, South Africa’s Minister of Finance, emphasised the need for African countries to take advantage and assert themselves in the ongoing global power shift.

“Too often we are in these global meetings, but with minor voices and inability to project with a common agenda for what we want to achieve ourselves and in the global agenda,” he said.

Gordhan said the continent has an opportunity to offer alternative models of development and create options that are appropriate for the respective countries.

Currently, while there are eight recognised African Union Regional Economic Communities – trade blocs and political – implementing the Abuja Treaty, degree of success varies with the East African Community (EAC) most advanced as it launched its Common Market in 2010.

The Common Market for East Southern Africa (COMESA) launched its Customs Union on June 2009.

ECOWAS and SADC have made progress in building their Free Trade Areas (FTAs) and plan to launch their Customs Union in 2015 and 2013, respectively. ECCAS has launched its FTA in 2004 but is facing enormous challenges in implementing it.

African Economic Conference

The AEC is an annual business intelligence forum organised by the AfDB, the UN Economic Commission for Africa (ECA) and the United Nations Development Programme (UNDP), to discuss the continent’s major economic development challenges.

The conference groups government leaders, policy-makers, researchers and development practitioners from Africa and other parts of the world. This year, discussions will focus on how the continent of 54 disparate states can overcome its fragmentation and pool resources for industrialisation and productive growth. – SAnews.gov.za-NNN

Nairobi - President Uhuru Kenyatta has assured that the Kenyan government will continue to guarantee security for all visitors and investors in the country.

Speaking at the Mahali Mzuri-Sir Richard Branson Kenyan Safari Camp in Narok County in western Kenya, the president urged all stakeholders to support efforts in strengthening the country's tourism industry.

Kenyatta thanked the renowned British entrepreneur for strongly opposing the issuance of travel advisories when terrorists attacked Nairobi's Westgate Mall last month.

“Terrorism is not something peculiar to Kenya but rather a global problem which we must fight together. By making people to cower over the attacks, the only person you are emboldening is the attacker,” the Kenyatta said.

However, by speaking out and saying the country will continue to move forward together, is a sign of victory Kenyans would want to show those purveyors of terror who wanted to cower and intimidate the people, President Kenyatta said.

Saying the future of the tourism sector lies in conservation of environment and wildlife, the head of state reiterated his government’s commitment in enforcing anti-poaching measures to deter anyone engaging in wanton destruction of the wildlife.

He said the government will embrace the new strategy of conserving environment and wildlife, an initiative which ensures both the local communities and investors reap maximum benefits from the tourism industry.

“Ensuring that the local community participate and benefit from such investments, will help in protecting and preserving our heritage, it’s the direction we want to go in this industry with the concerned investors so as to minimize environmental degradation,” added the President.

President Kenyatta, who was celebrating his 52nd birthday, thanked Branson and his partners for investing in a unique camp in conjunction with the local community in Mutorogi at the Mara North conservancy.

The president pledged to work with Narok County Governor Samuel Tunai in wooing investors from all over the world to invest in the county. – SAnews.gov.za-NNN-KBC

Johannesburg - Heads of State and business and development experts from across the world are gathered at the three-day African Economic Conference in Johannesburg to discuss regional integration and its role in boosting economic growth and human well-being on the continent.

The conference will be opened by President Jacob Zuma, Donald Kaberuka, President of the African Development Bank (AfDB) and Abdalla Hamdok, the Deputy Executive Secretary of the United Nations Economic Commission for Africa (ECA).

Africa has seen high levels of economic growth over the last decade, however, that growth has had limited impact on boosting competitiveness and increasing the quality of life of ordinary people on the continent.

Weaknesses persist in the quality of institutions, infrastructure, macroeconomic policies, education and adoption of new technologies, while there are big gaps between its highest and lowest ranked economies.

“This great gathering should do more than restate the case for regional integration: it must examine how to push the African continent to the next level, to become a global growth pole in its own right,” said Kaberuka.

“At a time of diminishing multilateral solutions, this is the sure way to build resilience against external shocks. I applaud the steady progress that has been made in areas such as tariff reduction.

“Robust action is what is now needed on non-tariff barriers, trade facilitation, and the movement of people. Africa has the political will and the strategic vision to make this happen. The time is right.”

In addition, because of its focus on capital-intensive, commodity-based industries, Africa has seen limited economic transformation, with little investment in the manufacturing, services and agricultural sectors. Due to these limitations, the creation of jobs, markets and institutions required to help young women and men build better futures has lagged behind.

“There needs to be a much broader definition of regional economic integration. True, regional integration must include investments in regional infrastructure, trade and labour mobility.

“But countries would also gain by harmonizing regulations and standards, devising common approaches to macroeconomic policy, job creation, and effective management of shared natural resources for sustainable poverty reduction and structural economic transformation,” said Abdoulaye Mar Dieye, Director of UNDP Africa.

While the benefits of integration are now well-known and many of the legal frameworks in place, the biggest challenge is how to further that agenda. Among the major hurdles are harmonising standards and regulations, boosting human resource capacities and mobilising leadership and political will.

The African Economic Conference will look at the political economy of regional integration and examine closely some of the practical solutions to advance it. High-level dialogues will cover integration issues ranging from finance to water resource management, fiscal convergence and harmonization of social policies.

Participants will also be exposed to cutting edge research on all aspects of regional integration based on new analysis from African researchers and institutions.

Participants at the conference will look at some of the trends and best practices unfolding across the continent.

“It is undeniable that regional integration will impel Africa to economic transformation and industrialization. Capitalising on natural resources, industrialization can swiftly add value to the continent’s exports and, therefore, stimulate job creation,” said Hamdok.

Held every year and sponsored by AfDB, ECA and UNDP, the African Economic Conference will also provide a unique forum for in-depth presentations of policy-oriented research by both established academics and emerging talents from the continent. – SAnews.gov.za-NNN-AfDB

Since June the Chinese markets have “significantly outperformed other emerging markets, in part because much of the weakness has focused on… currencies in those countries with current account deficits,” says the RiverFront. “China has ample foreign exchange reserves, and a managed currency.”

The investment manager also notes:

* The Chinese currency, the yuan, “has strengthened to levels not seen since it was devalued in 1994.”

* The government implemented a “mini-stimulus” in July, eliminating taxes for small business and outlining plans to reduce costs and provide funding for selected industries, such as railway construction.

* Following a spike in interbank lending rates in June, when the monetary authorities deliberately withheld credit to shock the banking system into obeying policy-requiring restraint, they have “allowed credit to flow again.”

* According to Gavyn Davies in the FT: “China has about $3½ trillion of foreign exchange reserves, and holds net assets overseas worth 30 per cent of GDP. In the last financial sector work-out, these reserves were used to recapitalize the banking system, and the same could happen again.”
Although China is a clear leader, developing Asia-Pacific markets as a whole seem to have moved into a new uptrend.
So… time to select shares that look like good buys, based on their performance and prospects. Some suggestions are the large-caps Tencent and Samsung Electronics, the mid-caps Great Wall Motor and Want Want, the small-caps Biostime, Arwana, Sino-Thai.

CopyRight – OnTarget 2013 by Martin Spring