CMA CGM EXTENDS WEST AFRICAN FEEDER SERVICES - LAUNCHES NEW SHUTTLE TARGETING CAMEROON & GABON (Page 3) - TARGETS GUINEA BISSAU WITH NEW BIJAGOS SHUTTLE (Page 4)

CMA CGM TARGETS AFRICAN-KOREAN TRADES ADDS PUSAN ON WAX SERVICE (Page 4)

GROUP VESSEL INAUGURATES MOMBASA’S SECOND CONTAINER TERMINAL (Page 5)

AFRICATRADE-WATCH

IMF: Sub-Saharan Africa Growth Near 2-Decade Low

Tanzania: TICTS Invest TZS40 Billion For Cranes

Grand Plan Unveiled To Revitalize Dar es Salaam

07 18 19

ISSUE 60 | MAY 2016

Contents

03 | African Group News

07 | Pan Africa

13 | Eastern Africa

09 | Western Africa

21 | Southern Africa

Africa’s Economy Slows: IMF: Sub-Saharan Africa Growth Near 2-Decade Low / World Bank: Growth Impacted By Low Commodity Prices

Regional: 5th Meeting of China-Africa Think Tanks Forum / China Brings Tangible Interests To Africa / Expert Group Discusses Continental Free Trade Issues

Cameroon: French Ports Target Cameroon’s Business Community

Gabon: BDEAC Backs Owendo Construction Loan

Ghana: Tema Export Terminal Begins Operations In June / GOIL Constructs Tank Terminal For Takoradi Port Bunker Services / Takoradi Gets Fabrication Yard

Liberia: Legislature Last Hurdle For WTO Accession / Monrovia Freeport To Run 24 Hours

Nigeria: Strengthens Trade Ties With Indonesia / Lagos Ports See Imports Tumble

Regional: 13th Northern Corridor Integration Projects Summit / Deloitte Report Ranks Regional Infrastructure Projects

Djibouti: Port Agreement Signed With China’s Qingdao

Kenya: Parliament To Approve Loan For Mombasa Terminal

Mozambique: Prepares Legal Framework For Coastal Shipping Service / China’s CHEC Investment In US$1 Billion Techobanine Port / Maputo Port Dredging

Sudan: Implementation Of ECTN From June 1st

Tanzania: Singapore To Use Dar Port As Gateway To East Africa / TCCIA, Zanzibar Commerce Chamber Seal Partnership Pact / US$690 Million Dar-es-Salaam Port Improvement / TICTS Invest TZS40 Billion For Quay Cranes / Grand Plan Unveiled To Revitalize Dar-es-Salaam Port

Namibia: Government To Levy Unprocessed Exports

South Africa: South Africa Looks To Iran For Trade & Investment / Gama Appointed Permanent Transnet CEO / Transnet Reduces Risk Ahead Of Navis Upgrade / FLIR Sensors For Durban Vessel Traffic Management / Richards Bay Port Celebrates 40 Years

CMA CGM Extends West African Feeder Services, Launches New Shuttle Targeting Cameroon & Gabon / CMA CGM Targets Guinea Bissau With Bijagos Service, Adds Shuttle Connecting Pointe Noire Hub To Bissau / CMA CGM Targets African-Korean Trades, Adds Direct Call At Busan On WAX Service / CMA CGM Promotes Links With Kenyan Market, Mv Busan Trader Inaugurates Mombasa’s Second Container Terminal [Phase 1], CMA CGM Experts In XXL Cargo, Transports 480TEU From China To Mauritania

1

AFRICATRADE-WATCH

ISSUE 60 | MAY 2016

ANGOLA - Moody’s downgraded sovereign debt rating on Angola

from Ba2 to B1 with a negative outlook.

BURKINA FASO - Vital Metals launched a scoping study at its Kollo gold

deposit to evaluate the feasibility of an openpit project by August.

- West African Resources is to inject US$12.5m into developing its Tanlouka gold project in the centre-north of Burkina.

EQUATORIAL GUINEA - President Teodoro Obiang Nguema, extended his 36-year

rule after being re-elected (93.7%).

GUINEA - Russian aluminium Rusal has delayed the Dian-Dian

bauxite project to end of 2017 amid weak aluminium prices – but will resume operations at the suspended Friguia alumina complex.

MALI - Cut its cotton production forecast for the 2016/17 season

to 650,000T from a previous estimate of 750,000 to 800,000T

NIGERIA - Dangote Sugar Refinery plans to raise US$503m through

a mix of debt and equity by Q3. - Kogi Iron is advancing its Agbaja project towards

development following successful tests to determine ore characteristics - moving to finalise a definitive feasibility study expected to be complete by end of June.

Western AfricaBOTSWANA - The AfDB approved a US$76.2m loan to help Botswana

fund new investment to broaden its narrow economic base and reduce heavy dependence on mining.

ETHIOPIA - The Ethiopian Electric Power and Chinese firm,

TBEA Contractor Limited reached a US$98m power transmission deal.

SOUTH AFRICA - Starbucks Corp. to invest US$9.13m in South Africa over

next 2-years for expansion. - SABMiller and Coca-Cola agreed concessions with the

government to win approval for a deal to combine their soft-drink operations to create Africa’s largest soft drinks bottler, Coca Cola Beverages Africa.

- Coal of Africa Limited signed a MoU with Qingdao Hengshun Zhongsheng, which is interested in acquiring a sharein CoAL’s flagship Makhado coking coal project, in the Soutpansberg coalfield.

- The Department of Trade and Industry has invited companies to participate in a trade and investment mission to Ghana and Nigeria from August 8-12. Bilateral trade between S. Africa and Ghana on upward trend 2011-15 up from R3.1-billion to R4.6-billion / Nigeria sees steady growth with trade increasing from R28.4-billion in 2011 to R46.1-billion in 2015.

TANZANIA/ZANZIBAR - Kibo Mining’s Power Definitive Feasibility Study review

has been completed successfully, clearing one more regulatory hurdle into the development 250-350 MW thermal power station, the Mbeya Coal To Power Project.

Eastern & Southern Africa

Events Diary

News Briefs

June 20166-7 Africa Oil & Power (Cape Town, South Africa) http://africaoilandpower.com/

8-9 DRC Mining Week (Lubumbashi, DRC) http://www.drcminingweek.com/

13-16 Nigeria Power Forum Conference & Exhibition (Abuja, Nigeria) http://www.cwcnog.com/

22-24 Water Africa and West Africa Building & Construction Ghana 2016 (Accra, Ghana) http://www.ace-events.com/

2

Website: www.cma-cgm.comEmail: lhv.marketing@cma-cgm.comTweet: @CMA_CGM_Group

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

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

www.cma-cgm.com

Disclaimer of LiabilityThe CMA CGM Group make every effort to provide and maintain usable,

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

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

information. Accordingly the CMA CGM Group denies any liability for any

direct, indirect or consequential loss or damage suffered by any person

as a result of relying on any published information. Conclusions drawn

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

are the sole responsibility of the reader.

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

Rachel Bennett Dominic Rawle

CMA CGM Extends West African Feeder Services Launches New Shuttle Targeting Cameroon & GabonThis month CMA CGM has launched a new shuttle service on the West Africa trade connecting our Pointe Noire hub to Libreville [Gabon] and Douala [Cameroon]. This fortnightly service, known as the West Feeder 2, deploys one vessel of 618 TEU nominal capacity. The rotation calls at Pointe Noire, Libreville, Douala and back to Pointe Noire.

The service provides enhanced connections between Douala and Libreville and a number of long distance destinations, such as the Middle East and the Indian Subcontinent, as well as the East Coast of South America, through transhipment via Pointe Noire onto our MIDAS and SAMWAF services.

COMPLIMENTARY SERVICESThe ‘West Feeder 2’ complements our 4-other West Africa feeder services from Pointe Noire:

SERVICE STRENGTHS - India, Middle East Gulf sees improved transit time to Gabon by 6 days.

- Libreville will be reached from the UAE in 33 days, India in 27 days. - India, Middle East Gulf sees shortened transit times to Cameroon by 4 days.

- Douala reached in 38 days from the UAE, 32 days from India. - East Coast South America and Plata sees shortened transit time by 6 days.

- Libreville reached in 33 days from Santos, 48 days from Montevideo. - Douala reached in 36 days from Santos and 46 days from Buenos Aires.

West FeederPointe Noire to Boma and Matadi

Douala FeederPointe Noire to Libreville and Douala

Bijagos Shuttle [NEW] Pointe Noire to Bissau

Cabinda FeederPointe Noire to Cabinda

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

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

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

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

3

AFRICAN GROUP NEWSCMA CGM

CMA CGM Targets Guinea Bissau With Bijagos Service Adds Shuttle Connecting Pointe Noire Hub To Bissau CMA CGM has launched a new West African shuttle service connecting its Pointe Noire hub with Bissau, in Guinea-Bissau. Branded as the ‘Bijagos Shuttle’ this service operates on a fortnightly basis using two 1,100 TEU vessels.

Through transhipment at Pointe Noire onto long-haul CMA CGM services we can offer global connections linking Guinea Bissau to East, Central and Southern African [ECSA], Far East, Indian Sub-Continent and the Middle East.

The Port of Bissau, located on the Geba River, is the chief port of Guinea-Bissau. With a growth rate of 5.1% in 2015, up from 2.9% in 2014, the country’s economic upturn is continuing. The economy is expected to expand 5-6% between 2016-18. A bumper cashew harvest supported by increased international demand for the commodity were the main factors underpinning the pickup in activities. The volume of cashew exported in 2015 is estimated at 175,000T, an increase of 30%.

CMA CGM Targets African-Korean Trades Adds Direct Call At Busan On WAX ServiceCMA CGM has added a port call at Busan onto its West Africa-Asia ‘WAX’ service. The move promotes direct links from Korea to Southern and Western Africa markets targeting Benin, Cameroon and Namibia in addition to existing services to Nigeria and South Africa.

The WAX service is operated with 13 vessels up to 4350 TEU and calls at Busan, Shanghai, Chiwan, Nansha, Tanjung Pelepas, Port Kelang, Cape Town, Walvis Bay, Cotonou*, Tin Can / Lagos – Apapa, Douala, Abidjan, Pointe Noire, Colombo, Port Kelang, Busan.

*The Gabonese ports of Libreville and Port Gentil are served via our Cotonou hub.

To access the latest African Economic Outlook for Guinea-Bissau view [French]: http://www.africaneconomicoutlook.org/fileadmin/uploads/aeo/2015/CN_data/Cn_Long_FR/Guinee-Bissau_2015.pdf

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

services/flyer/WAX

4

CMA CGM Promotes Links With Kenyan MarketMv Busan Trader Inaugurates Mombasa’s Second Container Terminal [Phase 1]The newly-constructed Kenya Ports Authority [KPA] Second Container Terminal at Mombasa port has received its first container vessel after its completion of Phase-1 in February which increased capacity by 550,000 TEU. The Mv Busan Trader [2,664TEU nominal], chartered by CMA CGM on its Middle East to Kenya and Somalia GMX service, docked at Mombasa on 25th April. The KPA took charge of the first phase of the facility after the official hand over from the Japanese contractor, on February 29th.

It is the first vessel since it was handed over to us. It is a boost to our business for both the port of Mombasa and the East African region.

Benard Osero, Kenya Ports Authority [KPA] Corporate Affairs Manager

The US$217 million Japan-funded project to build the Kipevu container terminal took 4-years to complete. Japanese firms had taken the lead in the development of the Mombasa port after the KPA secured some US$ 262 million of loans and aid from the Japan International Cooperation Agency [JICA]. Facilities include 3-new berths adding an additional 900m in quay length to the existing 840m, with an alongside depth of 15mand a 35-ha container yard. Two ship-to-shore cranes and 4-rubber tire gantry cranes are operating at the site.

The port project includes 2 additional phases that are planned for completion in 2017 and 2020. Once the entire project is completed it will make the Port of Mombasa the largest port in the region with about 2.5 million TEUs in capacity annually. In addition to the development of container terminals, the project includes the building of access roads, weighbridges and capacity building for customs clearance processes. A new port access road will have capacity of 750,000 TEUs per year and a railway station with 4-rail mounted gantry cranes is being constructed

Mombasa is the second-largest port in Africa by cargo tonnage and container throughput and the port is preparing for an upsurge in competition from the giant Chinese-invested Bagamoyo Port in Tanzania. Container throughput increased 6.3% to 1.1 million TEUs in 2015, while total cargo throughput in tonnage terms expanded 7.5% to 26,732 million tons.

Kenya recently approved the development of a Special Economic Zone [SEZ] in the Dongo Kundu region of Mombasa, which is expected to help boost volumes and efficiency at the port. Scheduled for completion by 2018, the SEZ will eventually cover up to 500 acres and include commercial wholesale and retail operations, breakbulk facilities, and logistics services such as goods repackaging, warehousing and storage. It will offer streamlined customs procedures to the countries of the Common Market for Eastern and Southern Africa [COMESA].

Mombasa is the biggest port in Kenya and it doubles as a gateway for the landlocked neighbours Uganda and South Sudan.

“ ”

5

AFRICAN GROUP NEWSCMA CGM

CMA CGM Experts In XXL CargoTransports 480TEU From China To MauritaniaLast month CMA CGM, an expert in Out of Gauge [OOG] and XXL project cargo, shipped 480 TEU from Qingdao in China on its FAL service. The cargo, loaded in a single shipment on the CMA CGM AMERIGO VESPUCCI, consisted of 40 buses weighing more than 520 tonnes. The units were then transhipped at our hub in Algeciras onto our WAZZAN service direct to Nouakchott, Mauritania.

This massive project was managed by our XXL project team in Shanghai in cooperation with operational teams at Marseilles HO, Qingdao and CMA CGM Mauritania along with the Operations Managers of our WAZZAN service. The buses, ordered by the Mauritanian Compagnie de Transport Nationale from Chinese company SINOTRUCK, will serve the Nouakchott city bus network.

FACTBOX

CMA CGM XXL - The Group transports all types of XXL cargo from delicate

shipments such as train cars and yachts to large and heavy equipment such as turbines, engines and factory components.

- Technical know-how for safe and secure handling of your cargo.

- Dedicated teams of special cargo experts who can be reached at any stage of the project: study/evaluation, booking, pre/post transport.

- Extensive worldwide network of ports, agencies and offices offering personalized and localized customer service at every stage.

- Brochure: https://www.cma-cgm.com/static/Communication/Attachments/Brochure_XXLCargoes_WEB.pdf

WAZZAN SERVICE CMA CGM launched its weekly Wazzan service, named after 15th century explorer al-Hasan ibn Muhammad al-Wazzan al-Fasi, in June 2015. The service links Morocco to North West Africa. The service deploys a fleet of 3 vessels with 1,100 TEU nominal capacity and complements our weekly series of EURAF services to West Africa. Strengths are:

- Weekly direct service - Dedicated to Mauritanian, Senegalese and Gambian markets - Port coverage: Casablanca, Algeciras, Tangiers, Nouakchott, Dakar, Banjul, Nouadhibou, Las

Palmas, Casablanca - Reefer cargo targeted with port coverage from Nouadhibou to Abidjan - Good transit times from Asia, India Middle East to Gambia, Mauritania and Senegal

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

6

Africa’s Economy Slows IMF: Sub-Saharan Africa Growth Near 2-Decade LowAccording to the International Monetary Fund [IMF] economic growth in sub-Saharan Africa will likely slow this year to its weakest in nearly 2-decades, hurt by a slump in commodity prices, the Ebola virus outbreak and drought.

In its African Economic Outlook, the Fund said the region would likely grow 3% this year - the lowest rate since 1999 - after expanding by 3.4% in 2015. Growth was seen recovering to 4% next year, helped by a slight recovery in commodity prices. The Fund said it was still optimistic about the region’s prospects in the longer term. It added that affected countries needed to contain fiscal deficits as the reduction in revenue from the commodities sector was expected to persist. Major oil exporters Angola and Nigeria were hardest hit by the slump in commodities prices, as were Ghana, South Africa and Zambia. Guinea, Liberia, and Sierra Leone were only gradually recovering from the Ebola epidemic, while several southern and eastern African countries including Ethiopia, Malawi and Zimbabwe were suffering from a severe drought.

On the upside, Côte d’Ivoire, Kenya and Senegal would see growth of more than 5%, mostly supported by ongoing infrastructure investment efforts and strong private consumption. The decline in oil prices has also helped these countries, though the windfall has tended to be smaller than expected, as exposure to the decline in other commodity prices and currency depreciations have partly offset the gains in many of them.

[Reuters 03/05/16]

World Bank: Growth Impacted By Low Commodity Prices The World Bank says the downturn in commodity prices which has adversely impacted growth in Africa, is likely to continue for long, making it imperative for the rationalization of public expenditure – especially the wage bill – and prudent public financial management and public investment.

According to Africa’s Pulse released on April 12th, a bi-annual report of the World Bank on Africa’s economic outlook, the low commodity prices which hit hard on oil exporters such as Nigeria, Congo and Equatorial Guinea, along with exporters of other commodities, was the main reason behind Africa’s lackluster performance. Economic activity slowed and GDP averaged 3%, down from 4.5% in 2014. It’s a far cry from when the continent averaged 6.8% growth between 2003 and 2008. The forecast for growth in 2016 is 3.3% and 4.5% for 2017/2018.

However the World Bank projected an uptick in economic activities next year, which would be driven by economic powerhouses – Nigeria, South Africa and Angola, as commodity prices stabilise. There are some bright spots where growth continued to be robust such as in Cote d’Ivoire, which saw a favourable policy environment and rising investment, as well as oil importers such as Kenya, Rwanda and Tanzania.

[World Bank 13/04/16]

Sub-Saharan Africa Annual GDP Growth Africa Economic Growth Forecasts For 2016

7

PAN AFRICA

TRADE

Regional5th Meeting of China-Africa Think Tanks ForumThe 5th Meeting of China-Africa Think Tanks Forum was held in Yiwu City, China in April. The event themed “China-Africa Production Capacity Cooperation and Africa’s Industrialization” facilitated collaboration and knowledge-sharing among African think tanks and connected policymakers throughout the continent. The forum was important to implement the results of the Johannesburg Summit of the Forum on China-Africa Cooperation [FOCAC] last year. More than 300 people attended. The China-Africa Think Tanks Forum was founded in 2011 as a sub-forum under the FOCAC. In relation 2016 marks the 60th anniversary of the establishment of China-Africa diplomatic relations.

[Chinese Ministry Of Foreign Affairs 18/04/16]

China Brings Tangible Interests To AfricaThe Chairman of the Chinese People’s Political Consultative Conference, Yu Zhengsheng arrived in Abidjan, Cote d’Ivoire for a 4-day official visit. The focus was the alignment of the 10 major plans for China-Africa cooperation announced by Chinese President Xi Jinping with the 5-year national development plan of Cote d’Ivoire.

Frequent high-level visits paid by the Chinese to African countries show the great importance China attaches to Africa and its determination to keep its promise to implement the outcome of the summit of the Forum on China-Africa Cooperation [FOCAC] held in Johannesburg, South Africa, in December 2015. From Jan. 30 to Feb. 6, Chinese Foreign Minister Wang Yi paid a visit to Malawi, Mauritius, Mozambique and Namibia. China’s top legislator Zhang Dejiang paid a 10-day visit to Zambia, Rwanda and Kenya in March. And Yu Zhengsheng will continue his visit to to Ghana.

Nigerian President Muhammadu Buhari, recently concluded a visit to China and is the first African head of state to visit China after the Johannesburg summit. During the trip, Chinese President Xi Jinping and Buhari pledged to further promote the strategic partnership. The 2-leaders also witnessed the signing of several deals on cooperation in infrastructure, production capacity, investment, aviation, technology and finance. Nigeria has now become China’s largest overseas engineering contract market, third largest trading partner and main destination for foreign investment in Africa.

Just 3-months after the FOCAC summit, China has been in touch with over 20 African countries to follow up on the outcome of the summit. A number of projects will materialize soon, and the China-Africa Fund for Industrial Capacity Cooperation has started operation.

[New China 16/04/16]

Expert Group Discusses Continental Free Trade IssuesAn expert group of Africa’s regional economic communities, the African Union Commission, the Economic Commission for Africa [ECA] and academia met this month in Nairobi, Kenya, to discuss the Continental Free Trade Area [CFTA]. The CFTA, which is expected to be in place by October 2017, will bring together 54-African countries with a combined population of more than 1-billion people and a combined gross domestic product of more than US$3.4 trillion

The meeting focused on 9-issues that can be feasibly achieved or agreed upon ahead of the October 2017 deadline. These are: trade in goods, trade in services, special African agreement on agriculture, fisheries, industrial pillar, common investment area, trade facilitation and customs cooperation, trade remedies and competition policy and institutional arrangements for implementation. The outcome of the meeting is expected to provide substantial input to the CFTA negotiation process. With the CFTA, African leaders aim to, among other things, create a single continental market for goods and services, free movement of business persons and investments and expand intra-African trade. The CFTA is also expected to enhance competitiveness at the industry and enterprise levels. The expert group meeting is jointly organized by the Department of Trade and Industry of the African Union Commission and the ECA’s African Trade Policy Centre.

[UN Economic Commission for Africa 03/06/16]

8

LiberiaLegislature Last Hurdle For WTO AccessionLiberia has until June 15th to ratify its Protocol of Accession and become a WTO member. Last December, the post-war nation became the 8th member of the Least Developed Country [LDC] to join the organisation since 1995, during the 10th Ministerial Conference of the WTO in Nairobi. While Liberia’s membership has been sealed, there are some domestic issues that need to be completed before it can be officially recognized and benefit from membership. WTO accession is a law based and road-driven process. The next step is for the Liberian legislature/parliament to ratify the protocol.

[Front Page 20/04/16]

NigeriaStrengthens Trade Ties With Indonesia The recently concluded trade promotion conference tagged, “Indonesian Solo Exhibition 2016” was held in Lagos to promote strong business ties between Indonesia and Nigeria. The exhibition was an effective forum for the promotion of Indonesian products from corporations or small businesses who have products that are export-oriented as well as a means to build a business network and expand market share abroad, especially in West Africa.

[Vanguard 23/04/16]

9

WESTERN AFRICA

ECOWAS, TRADE & TRANSPORT

CameroonFrench Ports Target Cameroon’s Business CommunityThe management of the HAROPA ports [Le Havre, Rouen and Paris] have visited Cameroon to help boost the volume of transactions between Cameroonian and French ports. HAROPA has already established a partnership through the port of Le Havre with the new Kribi deep water port which is to be commissioned at the end of Q2 2016. As part of this partnership, Le Havre port will provide technical support to Kribi in its operational phase. Similarly HAROPA provides Douala port with engineering solutions. The volume of transactions between HAROPA and Cameroonian ports is officially estimated to be in excess of 300,000 tons of goods per year.

[Business in Cameroon 22/04/16]

GabonBDEAC Backs Owendo Construction LoanFollowing the approval by the Development Bank of Central African States of a US$52 million loan earlier this year, the new Owendo port near Libreville in Gabon is expected to be operational by mid-2016. The funding allows for increased capacity, infrastructure and breakbulk development. The port is owned jointly by the Gabonese government and Olam International of Singapore.

Elsewhere in Gabon work is progressing to develop the Mangali Quay at the Mayumba deepwater port with the first phase due to be complete by the end of 2016.

[Breakbulk 05/05/16]

10

PORTSWESTERN AFRICA

GhanaTema Export Terminal Begins Operations In JuneA GH¢20 million export terminal with the capacity to take 4,000 TEU will become operational at the Tema Port enclave by June 2016. The Amaris terminal, a subsidiary of the Jospong Group, has facilities for container repairs and maintenance. It is expected to provide a one-stop shop for exports from Ghana, including transit cargoes to foreign countries.

The terminal is a Joint Venture [JV] between the Jospong Group [80%] and Ghana Ports and Harbours Authority [GPHA – 20%]. Amaris is waiting for the approval of an export permit licence from the GPHA and the Customs Division of the Ghana Revenue Authority [GRA] to begin commercial operations.

[Graphic 20/04/16]

GOIL Constructs Tank Terminal For Takoradi Port Bunker Services Takoradi Port, aiming to become the leading oil hub in West Africa, has received a major boost with the commencement of the construction of a marine gas oil tank terminal to serve as a supply point for vessels calling at the port.

The 4.5-million capacity tank farm project, being financed by the Ghana Oil Company Limited [GOIL], will serve as a bunkering terminal which will berth import tankers with bunker fuel for vessels at the Takoradi Port.

Presently, with the unavailability of such services at the Takoradi Port, visiting vessels have had to travel to Nigeria and Cote d’Ivoire for bunkering services. The project, being undertaken by a South African construction firm, Murray and Roberts, is expected to begin commercial operations by the end of 2016.

[Graphic 25/04/16]

Takoradi Gets Fabrication YardThe quest to position Takoradi Port as the oil and gas services hub in the West African sub-region has been boosted by General Electricals Oil and Gas - a sub-contractor of Tullow Oil - as the company steadily constructs its fabrication yard in the port.

Construction of the facility, which sits on a 10,000m2 land, is part of Takoradi Port’s expansion project and will serve as the base area for General Electricals as it plans to produce undersea and heavy equipment for the oil and gas business in the port community.

[Ghana Web 25/04/16]

11

WESTERN AFRICA

PORTS

LiberiaMonrovia Freeport To Run 24 Hours In what will a major boost in economic activities the Freeport of Monrovia is expected to be operational 24/7 effective May 2016. The National Port Authority [NPA] has installed aids to navigation at the port supplied by Pharos Marine in compliance with the International Association of Light House Authority [IALA]. Safe 24 hours marine operations will result in quicker turnaround time and more vessel calls.

[Frontpage 18/04/16]

NigeriaLagos Ports See Imports TumbleActivities at Lagos ports are in decline as foreign exchange restrictions announced last year by the Federal Government takes a toll on the nation’s economy. The Nigerian Ports Authority [NPA] recently released a report of its performance with the number of ocean-going vessels declining by 8.1% from 5,541 in 2014 to 5,090 in 2015. The forex restrictions, aimed at boosting local manufacturing industries and agriculture, have instead forced local manufacturers to cut operations and lay off workers due to their inability to import raw materials. Some 41 items were listed by the Central Bank of Nigeria [CBN] as no longer qualifying to get foreign exchange from the CBN or the official market to buy these items from overseas. The list includes rice, cement, margarine, palm oil products/vegetables oils, meat and processed meat products as well as vegetables and processed vegetable products, poultry chicken, eggs, turkey amongst many more.

[Nigeria Today 28/04/16]

12

Regional13th Northern Corridor Integration Projects SummitThe 13th Northern Corridor Integration Projects Summit was chaired by Uganda’s president Yoweri Kaguta Museveni in Kampala on April 22-23, 2016. The event brought together Heads of State from Kenya, Uganda, Rwanda, Burundi and South Sudan to discuss the construction of the much envisaged Standard Gauge Railway [SGR] that will connect Mombasa to Kigali. The meeting also review the status of implementation of the Northern Corridor Integration Projects [NCIP] that were discussed at the last summit in Kigali in December 2015. The projects cover areas of infrastructure, energy, information technology and socioeconomic development.

FACTBOX: NORTHERN CORRIDOR INTEGRATION PROJECTS [NCIP] - A Northern transport corridor that links EAC landlocked countries of Uganda, Rwanda, Burundi and South

Sudan, with the Port of Mombasa. - Corridor also serves Northern Tanzania, the Democratic Republic of Congo [DRC] and Ethiopia. - Website: www.nciprojects.org

Projects Coordinated by Uganda Projects Coordinated By Kenya Projects Coordinated by Rwanda

- Standard Gauge Railway - ICT Infrastructure - Oil Refinery Development - Fast Tracking Political

Federation - Financing

- Power Generation, Transmission and Interconnectivity

- Crude Oil pipeline Development - Refined Petroleum Products

Pipeline Development - Commodities Exchange - Human Resource Capacity

Building - Land

- Immigration, Tourism, Trade, Labour and Services [ITTLS]

- Single Customs Territory - Defence Cooperation - Peace and Security Cooperation - Air Space Management

13

EASTERN AFRICA

EAC, COMESA & TRADE

Regional

Deloitte Report Ranks Regional Infrastructure ProjectsAccording to a report compiled by consultancy firm Deloitte, Kenya continues to lead the region in terms of infrastructure development with 20 roads, energy, harbours, water and energy projects. Ethiopia comes second with 12 projects. Large mega projects for the last 3-years occupied up to 20% of all the total capital investment in Africa with a cumulative worth of US$568 billion, the majority coming from financiers and foreign aid such as the World Bank and China.

According to the report transport infrastructural development took a bigger portion of Africa’s development budget kitty with 51% of the projects being transport related projects, energy and power 30%, water 8% and social development 4%.

Mushrooming of urban centers characterized by a strong growing middle class economy that has embraced green energy has attracted foreign direct investments an area where investors are reaping huge yields from technology, real estate rentals, innovation and sustainability. The continent has also seen infrastructural investment in real estate sector countries. Kenya and Tanzania have recorded significant growth here. Other upcoming sectors are entertainment, retail, modern office parks, hotels and lifestyle facilities.

[Construction Review 22/04/16]

MozambiquePrepares Legal Framework For Coastal Shipping ServiceThe Confederation of Economic Associations of Mozambique [CTA] committee responsible for drafting the proposal for a legal framework for the resumption of coastal shipping [cabotage] services in Mozambique should submit the final version this month. The committee is currently collecting contributions to add to the proposal, which when it is completed will be submitted to the Cabinet for approval. An announcement was made that the government wants the private sector to be the main player in the revitalisation process of the cabotage service in the country. The CTA recommended, in a study published in 2015, the revision of the legal framework and design of a strategy and action plan to make cabotage a factor for generation and part of the dynamics of socio-economic growth in the country.

[Macauhub/MZ 15/04/16]

14

TanzaniaSingapore To Use Dar Port As Gateway To East AfricaSingapore Minister for Trade, Dr Koh Poh Koon, noted plans are underway to use Dar es Salaam Port as a hub trade link between Singapore and other East African countries. Singapore firms have already started to invest in Tanzania. Hyflux is enabling infrastructure for light industries, Pavilion Energy has invested US$1.2 billion in the gas sector and is expecting to invest an additional US$3 billion in an LNG plant and the PIL Company is investing US$400 million in gas service stations. To enhance the move Tanzania is concluding talks on Bilateral Investment Protection and Promotion Agreement and Double Taxation Avoidance Agreement to attract more investors from Singapore. Whilst Singapore has offered exchange programmes for Tanzanians to gain work experience at Singapore Port.

[Daily News 28/04/16]

TCCIA, Zanzibar Commerce Chamber Seal Partnership PactTanzania Chamber of Commerce, Industry and Agriculture (TCCIA) and its isles counterpart, Zanzibar National Chamber of Commerce Industry and Agriculture (ZNCCIA) have sealed an agreement to partner in promoting trade.

We need to strengthen collaboration and have one voice in demanding changes in promotion of trade in the country, targeting bigger EAC, SADC and international markets.

Ambassador Amina Salum Ali, Zanzibar Minister of Trade

Trade Mark East Africa (TMEA) supports the MoU as a primary activity in setting up for a much bigger support to ZNCCIA. TMEA has allocated US$100,000 (200m/-) in support of ZNCCIA automation. TCCIA is to give technical support to ZNCCIA on implementation of Electronic Certificate of Origin System and NTBs SMS and Online Reporting and Monitoring System.

[Daily News 05/05/16]

“”

15

EASTERN AFRICA

EAC, COMESA & TRADE

DjiboutiPort Agreement Signed With China’s QingdaoA partnership agreement has been signed between the port of Djibouti and China’s Qingdao port on April 13th. The agreement aims to increase trade between the 2-ports and reinforce Djibouti port’s human resource capacities and logistics. The agreement, which was signed by Djibouti port’s Director General Saad Omar Guelleh and the Vice-President of Qingdao port Cheng Xinnong. Situated on the Yellow Sea, Qingdao port is one of the most frequently visited ports in the world. It is today the 3rd in China and 7th in the world with capacity to hold 15 million containers in transit per year.

[ECNS 23/04/16]

KenyaParliament To Approve Loan For Mombasa TerminalThe Kenyan government has guaranteed a Sh27.3 billion loan on behalf of the Kenya Port Authority [KPA] for a second container terminal in Mombasa. The loan by the Japanese International Cooperation Agency [JICA] bears an interest rate of 0.11%, carries a 6-year grace period and has a repayment period of 34 years. According to Sessional Paper No.1 of 2016, which MPs are to approve, the loan is to be used to expand the capacity of the Mombasa Port. Container traffic is expected to grow from the current level of 1-million TEU p.a. to over 1.5 million in 2017, 2 million in 2021 and 3 million by 2030.

[Star 03/05/16]

16

PORTS EASTERN AFRICA

MozambiqueChina’s CHEC Investment In US$1 Billion Techobanine PortAn international consortium, which includes the China Harbour Engineering Co [CHEC], is projecting an investment of US$1 billion in a new port in Maputo province. The project for the deep water port of Techobanine in Matutuíne district, southern Maputo province, is being promoted by a consortium led by Mozambican company Bela Vista Holdings [BVH] that in addition to CHEC, includes South African public rail company Transnet.

As this is a category A project, the development is subject to a full environmental impact study, which will result in a plan for its management, supported primarily by the project. An international consortium has already completed the preliminary study and, in response to its recommendations, the project’s promoters have decided to choose a location that is 23km from the Maputo Special Reserve for the location of the port at Ponta Techobanine.

The port’s construction works will consists of opening a 3.5km access channel, an industrial free zone, among other complementary facilities. The new port will facilitate and diversify access to the sea to some countries in the region, such as Botswana, Swaziland and Zimbabwe, as well as shorten the distance to the coast from mining regions within South Africa.

[Macauhub/CN/MZ 25/04/16]

Maputo Port Dredging The dredging of the port of Maputo will begin in May at a cost of US$115 million in order to allow ships with capacity of over 80,000 tons to access the capital’s port. The contract was signed on 18th April by the Maputo Port Development Company [MPDC] and Jan de Nul Dredging Middle East FZE, a company from the United Arab Emirates.

Management of the port of Maputo was handed over until 2033, to the Maputo Port Development Company [MPDC], a private, national company, resulting from partnership between Mozambican port and rail company CFM and Portus Indico, set up by Grindrod, DP World and Mozambican company Mozambique Gestores.

Dredging is intended to improve the depth of the port from the current 11 to 14.2m and allow the port to handle up to 40 million tons of cargo by 2033. The port is part of the Maputo corridor, composed of the railway lines of Ressano Garcia, Limpopo and Goba and the N4 [Maputo – Witbank road], serving as a point for import and export of products from South Africa, Swaziland and Zimbabwe.

[Macauhub/MZ 21/04/16]

HISTORY

2010 Mozambique and Botswana agreed to the project providing total financing of US$7 billion. The project includes Techobanine port and construction of a 1,100km rail link with capacity to process 200 million tons of cargo p.a. ranging from general bulk to ores, fuel and passengers.

2011 Zimbabwe joined the project, through a Memorandum of Understanding [MoU] providing financing from the private sector and concession of infrastructure.

2012 Project master plan completed and a public tender launched to select a company responsible for economic viability studies.

2016 Preliminary environmental impact study completed.

17

EASTERN AFRICA

PORTS

TanzaniaUS$690 Million Dar-es-Salaam Port Improvement Dar es Salaam port is to undergo major improvements under a US$690-million expansion programme. Tanzania Ports Authority [TPA] Acting Director General, Aloyce Matei, noted the World Bank has provided US$600 million while US$30 million has been issued by Trade Mark East Africa [TMEA] and the Department for International Development [DFID]. TPA will contribute the remainder. Improvements will be carried out over 5-years enlarging the facilities cargo handling capacity. Cargo volumes over the past 5-years have been increasing at an average of 9% p.a. If that trajectory continues by 2030 cargo levels will increase to 38 million tons from 16 million tons in 2014/15.

[Daily News 03/05/16]

TICTS Invest TZS40 Billion For Quay CranesTanzania International Container Terminal [TICTS] has invested 40bn/- for the purchase of 2-new quay cranes to boost performance at the Dar es Salaam port. The cranes, scheduled for delivery by the year end and described as larger than those delivered in 2014 and 2011, will comfortably handle 5,000 TEU vessels, significantly improving performance at the port.

[Daily News 28/04/16]

Owing to globalisation and economies of scale, vessels are increasingly becoming larger, requiring deeper water, longer quays and bigger cranes.

Paul Wallace, Chief Executive Officer TICTS

“”

18

Tanzania

Grand Plan Unveiled To Revitalize Dar es Salaam PortThe government and key stakeholders of Dar es Salaam port have drawn up a plan to rescue the port in the wake of a steep decline in cargo traffic. Measures proposed include the scrapping of Value Added Tax [VAT] on transit goods. The plan is aimed at turning around the port’s fortunes and making it the most competitive in the region.

Stakeholders met recently behind closed doors to prepare a blueprint in response to a looming crisis following the diverting of cargo from the Central Corridor. They agreed to take corrective measures that would help retain customers, bring back those who had abandoned the port and attract new ones.

Participants included the Tanzania Revenue Authority [TRA], Tanzania Zambia Railway Authority [Tazara] and Tanzania Railways Limited. Others were the Tanzania Freight Forwarders Association, Tanzania Shipping Agents Association, Central Corridor Transit Transport Facilitation Agency, Tanzania Truck Owners Association [Tatoa] and Transporters Association of Tanzania [TAT].

Declining StatisticsParticipants were briefed on worrying statistics showing a significant fall in cargo traffic, which, according to the TPA, could degenerate into a serious national crisis if urgent measures are not taken. Cargo traffic through the port dropped by 13.3% in March 2016, compared to the same period last year. Cargo to and from the Democratic Republic of Congo [DRC] and Zambia dropped by 14.4% and 27.9%, respectively. The market segments of the 2-countries contributed about 60% of the port’s transit market share.

Value Added Tax [VAT] A major concern, which stakeholders blamed for the loss of customer confidence, was the imposition of 18% VAT on auxiliary services rendered for transit good. Some participants said the imposition of VAT had a negative effect on shippers’ total route costs and shipping agents offering service on imported local cargo and transit goods. Others said the decision contravened the World Trade Organisation Convention [WTO] on International Trade and the Almaty Agreement for landlocked countries.

Stakeholders agreed that a public notice should be issued informing customers of the immediate suspension of VAT on transit goods. The tax came into effect last July. TRA maintained at the meeting that VAT was not being charged on transit goods but rather on services rendered for the goods. The authority promised to forward the sentiments of the port community to higher government authorities for consideration.

Single Customs Territory [SCT] The meeting also agreed that TRA should expedite review of the Single Customs Territory [SCT] arrangement between Tanzania and the DRC. The arrangement, which is not applicable at other ports in the region, was singled out as a major cause of declining cargo traffic to and from the DRC through the border town of Kasumbalesa. This is because the DRC market could be served by several ports located along the Indian and Atlantic Ocean coasts, which have no SCT arrangements with Kinshasa. Stakeholders called for the abolition of the system to help restore Congolese customers’ confidence and trust in Dar es Salaam port.

Rail CapacityDiscussions focused on the constrained capacity of railway transport in the country as opposed to recent improvement in rail services in neighbouring countries. Stakeholders agreed on resumption of reliable railway services through the introduction of reliable block trains, and picked Tazara to pioneer by operating four block trains a week. There was also an agreement on integrated marketing involving partnership with port and road haulers [Tatoa and TAT] for handling large cargo volumes. They also agreed on the need for the re-branding of both TRL and Tazara, targeting the key actual buyers who make routing decisions in Europe, the Middle East, China and the US instead of their representatives in transit countries.

Increased incidents of theft of high-value cargo while en route to and from transit markets and locally was another issue that featured prominently in the meeting. The IGP was tasked with cracking down on the network that was involved in the theft of copper and tantalite along the route to Dar es Salaam port. There are reports that transit shippers are incurring additional costs by deploying security convoys to guard their high-value cargo. The IGP also asked to form a task force to investigate and dismantle criminal syndicates involved in the theft of high-value goods.

[Citizen 04/05/16]

19

EASTERN AFRICA

PORTS

20

NamibiaGovernment To Levy Unprocessed Exports

Namibia expects to earn N$100 million in 2016 from an export levy on unprocessed or semi processed export goods to be introduced later this year. The finance minister, Calle Schlettwein, tabled the Export Levy Bill in Parliament this month.

The levy will be imposed on mineral commodities, fishery, gas, crude oil and forestry products. The levy will be capped at 2% and a further N$130 million is expected to be realised in the 2017/18 financial year. Its introduction allows Namibia to achieve domestic value addition and commodity based industrialisation objectives. The levy is intended to improve Namibia’s value share in its natural resources base. Differentiated levy rates have been proposed across the broad spectrum of the value addition chain in respect of each product.

The levy will come into effect on a date to be determined by a notice in the Government Gazette and will be determined by the Customs and Excise Directorate. The Bill requires that exporters maintain up-to date records of trade accounts of the goods concerned and cause to be paid for the benefit of the State Revenue Fund the applicable amounts, based on assessments made and the final export value of the goods concerned.

[Namibian 28/04/16]

South AfricaSouth Africa Looks To Iran For Trade & InvestmentPresident Zuma wrapped up a state visit to Iran with 8-signed agreements and a pledge to vastly increase trade. Meeting with his Iranian counterpart Hassan Rouhani, the 2-leaders promised to restore their relations to the level before sanctions were imposed on Iran, and go far beyond that. From a paltry US$25 million in bilateral trade last year, they want to reach US$1 billion in non-oil trade by 2020, and up to US$8 billion in total trade. Pre-sanctions Iran used to supply 40% of South Africa’s crude oil, and Tehran is keen to restore that relationship.

Zuma led a 180-member delegation, including 6-ministers of the government, in the first official visit to Tehran by an African nation since Western sanctions were lifted in January. Besides signing agreements in fields like industry, energy, mining, agriculture, and water resources, the 2-countries also reached deals to cooperate in intelligence gathering and anti-money laundering initiatives. They now have an economic roadmap of their future ties and how to strengthen them in the near future. Likewise, Zuma endorsed formalizing a South Africa-Iran Business Council.

Iran could also play a meaningful role in accelerating Operation Phakisa, South Africa’s strategy to unlock the economic growth potential of its extensive ocean coastline. In 2014 Zuma said that the contribution of the oceans to the country’s GDP could rise from US$3.7 billion that year to US$12.2 billion by 2033.

[Blouin News 25/04/16]

Gama Appointed Permanent Transnet CEOCabinet approved the appointment of Siyabonga Gama as the permanent CEO of Transnet – a role that he had been performing in an acting capacity since the departure of Brian Molefe to Eskom in April last year. Gama has been at Transnet for the past 21 years and an executive for 14 years.

[Engineering News 13/04/16]

21

SOUTHERN AFRICA

SADC, BRICS, TRADE & TRANSPORT

South AfricaTransnet Reduces Risk Ahead Of Navis UpgradeTransnet Port Terminals has employed testing measures to ensure that the Navis upgrade from version 2.3 to 2.6 is as seamless as possible. The upgrade comes at the end of support for the former version whilst the new version boasts new features like enhanced rail functionality, improved performance and scalability, amongst others. Enhancements include a refreshed planning and control user interface [UI], robust system management and administration capabilities, tools to ease N4 migrations and improvements to electronic data interchange and gate functionality.

With escalating pressures on global supply chain logistics, container terminals around the world need to operate at peak performance to stay competitive and maintain profitability. Terminal staff have also been trained in readiness for the switchover and there will be TPT ‘super users’ as well as Navis engineers on site to assist while the upgrade is taking place. The Navis upgrade is part of TPT’s infrastructure investment strategy, which forms part of Transnet’s Market Demand Strategy [MDS].

[RNews 21/04/16]

FLIR Sensors For Durban Vessel Traffic ManagementThe Desert Wolf Company has concluded installation of FLIR HRC MS sensors at Durban port as part of efforts to upgrade vessel traffic management. The vessel traffic service [VTS] system, a marine traffic monitoring system similar to air traffic control for aircraft, uses radar, closed-circuit television [CCTV], VHF radios and automatic identification system [AIS] to keep track of vessel movements and provide navigational safety in a limited area like a port.

The sensors feature high-resolution, thermal video together with long-range low-light camera and laser rangefinder. The system has a video tracking capability that will automatically follow a vessel to improve security.

[Defence Web 29/04/16]

22

PORTSSOUTHERN AFRICA

Richards Bay Port Celebrates 40 YearsSouth Africa’s premier bulk port, Richards Bay Port, commemorated its 40th anniversary in April. During that time the port has expanded exporting various commodities and increasing its export capacity. Transnet National Ports Authority [TNPA] noted the facility was established in 1976 initially to transport locally mined coal to global markets. However, it now exports a diverse mix including magnetite, chrome ore, alumina, coking coal and ferroalloys, while still delivering its main line export of coal. In turn development has transformed the small fishing village into an industrial hub, while supporting big businesses such as the Richards Bay Coal Terminal, BHP Billiton, Richards Bay Minerals and Foskor.

During 2010/11 revenue generation broke the R1-billion turnover mark for the first time in its history. And in the 2015/16 financial year, the port handled 99.23-million tons of bulk and break bulk cargo. In addition, the port’s 23 berths, specialised cargo handling facilities, fast vessel turnaround, deep-water infrastructure, rail links to the hinterland and its large greenfield development potential, have made the facility one of the world’s leading bulk ports. Future planning will be in line with the government’s National Growth Plan, and in particular the Operation Phakisa ocean economy initiative, primarily focused on economic development, job creation and skills development.

[Creamer Media 13/04/16]

23

SOUTHERN AFRICA

PORTS

24