Africa and International Trade: A Brief Round-up Review

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Africa's National Governments Discuss Continental Free Trade

Over 100 Members of Parliament (MPs) from 40 African countries agreed to step up efforts to improve the business environment. They agreed to review legislation linked to governance, trade barriers, and regional infrastructure in a bid to strengthen sustainale private sector development. they met during a conference on private sector development in Africa as a cornerstone for sustainable growth held in Kigali, Rwanda, from March 14-16, 2012.

African leaders have called for a continental free trade area by 2017 to boost trade within the continent. The African MPs discussed how they could boost macroeconomic stability by promoting legal and regulatory reforms to encourage productive and sustainable private investments, necessary to boost growth and create jobs in Africa.

Zambia's Electronic Power Transmission Project

Zambia will start building two 330 kV electric power transmission lines this year to provide power to the eastern and northern regions. The lines are expected to cost US$285 million and work would start by June 2012 and be finished by the end of next year with financing provided by the Industrial and Commercial Bank of China.

Ivory Coast's Expected GDP Growth in 2012

The International Monetary Fund (IMF) expects the Ivory Coast's GDP to grow by some 8% in 2012 after a 4.7% contraction in 2011. Last year the Ivory Coast only received R600m (US$78.1m) worth of South African exports in contrast to Ivory Coast's neighbor Ghana, which received R3.1bn (US$403.6m). The largest destination for South African exports in West Africa is Nigeria at R5.8bn (US$755.1m) Zimbabwe is South Africa's largest African export desstination at R17.8bn (US$2.317bn), narrowly ahead of Mozambique at R17.7bn (US$2.304bn) and Zambia at R17.3bn (US$2.252bn).

The IMF said economic performance in 2011 was better than expected. After contracting sharply during the post-election crisis, the economy rebounded faster than expected, and finished the year 4.7% lower than in 2010. Twelve-month inflation, which peaked during the crisis at 9.1%, finished the year at 1.9%.

Budget execution was also better than expected. There have been some delays in implementing other planned reforms. Further progress is needed in resolving problems at some state-owned enterprises, including publicly owned commercial banks, and ensuring that the electricity sector becomes financially viable in the medium term, improves maintenance and expands capacity, as well as making the new National Debt Management Committee operational.

South Africa's Iranian Crude Imports

South Africa hopes to have a plan by the end of May for replacing Iranian crude that currently makes up a quarter of its crude imports. The US has pressured many of Iran's biggest oil buyers in Asia to reduce their purchases in a Western pubsh to starve Tehran of funds for its disputed nuclear program. Iran is South Africa's leading crude supplier and makes up about 29% of imports by Africa's biggest economy, according to the US Energy Information Administration.


Inflation in Ethiopia

Consumer inflation in Ethiopia rose to 36.3% year-to-year in February from 32% year-to-year in January, 35.9% year-to-year in December, 39.2% year-to-year in November and 39.8% year-to-year in October. Food inflation rose to 47.4% year-to-year in February from 41.4% year-to-year in January, 46.7% year-to-year in December, 50.3% year-to-year in November and 51.7% year-to-year in October, while non-food inflation rose to 21.4% year-to-year in February from 19.2% year-to-year in January, 21.8% year-to-year in December, 24% year-to-year in November and 23.4% year-to-year in October. The annual average consumer inflation rate was 33% in 2011 from 8.1% in 2010.

Malawi's New 1,000 Kwacha Note

Malawi will introduce a new 1,000 kwacha note in July. Reserve Bank of Malawi Governor Perks Ligoya said the old K20, K50, K100, K200 and K500 notes will be phased out.

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