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South Africa, India And Indonesia Join World Logistics Passport

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South Africa, India, and Indonesia have joined the World Logistics Passport (WLP), a major policy initiative established to increase trading opportunities between emerging markets.

They join Colombia, Senegal, Kazakhstan, Brazil, Uruguay, and the UAE in a club of trading nations sharing expertise to smooth trade flows around the world.

The WLP creates opportunities for business across Africa, Asia, Central, and South America to improve existing trading routes and develop new ones, through the world’s first logistics loyalty program for freight forwarders and traders.

It overcomes non-tariff trade barriers by fast-tracking cargo movement, reducing administrative costs, advancing cargo information, and facilitating movement between ports and air.

A prime example of the benefits of the program is the cargo journey from Jakarta to Johannesburg.

Transporting high-value, low-weight goods through historically established transport routes in Europe takes considerably longer, and is, therefore, more expensive, than if the goods pass through Dubai.

Through the WLP, traders can expect to save 25% on freight costs and 10% on transit time moving goods from Indonesia to South Africa.

The benefits are aimed at local and foreign producers. Specifically, the WLP process is to work with partners to identify pain points in the trade and logistics journey and then finding and implementing benefits to fix them.

Local manufacturers and businesses will be able to benefit from quicker processes, less documentation, and less cost when exporting from the country.

The WLP has a proven track record. In Dubai, 12 local providers have confirmed more than 50 benefits which have in turn been applied to over 300 traders, accounting for approximately 50% of the emirate’s trade. Since its inception in 2019, the WLP has generated more than AED 3 billion in total trade.

Mike Bhaskaran, CEO of the World Logistics Passport, said that the World Logistics Passport increases resilience in global supply chains and removes the barriers that prevent developing economies from trading as freely as they might, which is more important than ever as governments around the world seek to recover from the economic impact of COVID-19.

“Today’s announcement shows that governments and businesses are thinking differently about how goods and services move around the world, and we are delighted to welcome India, Indonesia, and South Africa to the club,” he said.

South Africa signs up to spur intra-regional trade opportunities

Improving trade is a priority for South Africa and the subcontinent as a whole in order to boost job creation and support export-led growth.

The Johannesburg Chamber of Commerce has signed a framework agreement with the WLP and bilateral negotiations with the government. Joining the WLP will be a key enabler of the African Continental Free Trade Agreement, and will open up new market potential among countries in the region.

“We are very excited about joining the World Logistics Passport global network as a partner and benefits provider. We believe that South African traders and freight forwarders will greatly benefit from this global incentives program to boost south-south trade,” said Jackie Mpondo-Hendricks, President, Johannesburg Chamber of Commerce.

South Africa has joined the WLP at a time when the country, and broader region, seek to recover from the economic impact of COVID-19.

The WLP program is closely aligned with South Africa’s National Development Plan 2030, which aims to increase intra-regional trade and improving trade penetration into fast-growing markets in Asia and Latin America.

In addition, the WLP is working on increasing routing options to South Africa, opening up a diversified range of export markets to promote trade penetration in fast-growing economies.

India the largest economy to join the WLP to date

The WLP now counts Mumbai International Airport (Chhatrapati Shivaji Maharaj International Airport), Nhava Sheva International Container Terminal (Mumbai), and Emirates SkyCargo in India & Nepal as partners.

As a trade enhancing policy initiative, the WLP is closely aligned with the Strategy for India@75 in its aims to boost national competitiveness, increase the efficiency of India’s logistics sector and build tighter economic integration with emerging economies in South and Southeast Asia

The WLP now looks forward to welcoming the participation of the Ministry of Commerce & Industry to represent the government’s oversight of local operations, and the CBIC (Customs) as a partner, as well as other regional organizations.

Indonesia the first South-East Asian nation to the join

Indonesia is a strategically important market for the WLP, as it represents a region key to the WLP concept for its fast economic growth driven by manufacturing exports.

The WLP will complement and reinforce the headline aims of the final stage of the Long-Term National Development Plan (RPJPN), specifically in terms of boosting national competitiveness and higher-wage job creation across all of Indonesia’s varied geographies.

The WLP now counts the Indonesia National Shippers’ Council as a partner, which will provide benefits related to navigating the local market.

Last year, the Indonesia National Shippers’ Council signed a Memorandum of Understanding with PCFC in Dubai to realise trade cooperation, thus the registration can be seen as an evolution of an already entrenched and fruitful partnership.

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Business

Rwanda’s Weekly Agro Exports Performance

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Last week Rwanda shipped out various tonnes of horticultural products coffee and tea fetching an impressive amount of foreign revenue.

According to National Agricultural Export Development Board (NAEB) mandated to develop and enhance Rwanda’s agricultural exports, Last week Rwanda exported 255,298Kg of horticultural products which earned U$441,679.

Details show the Main Countries of destination of Rwanda’s horticultural products were mainly Holland, United Kingdom, DRC, Germany, among others including USA, UAE, France, Uganda, Belgium, Tanzania and Denmark.

A total of 431,107Kg of Rwanda Coffee worth U$1,383,622 was exported compared to previous week, export quantities and revenues increased by 86.2% and 83.9% respectively. 52.2% of the consignment was fully washed. Destinations: China, UK, Belgium, Russia, Kenya, South Sudan & Nigeria.

Meanwhile, 449,000Kg of Rwanda Tea  were exported generating U$1,146,118. Compared to last week, the average price slightly reduced from U$2.78/Kg to U$2.5/Kg. Main country buyers were Pakistan, and UK among others.

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Business

Tanzania Unveils Aggressive Plan For Livestock

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Tanzania has announced that it is seeking to revamp its livestock subsector with the aim of making it more profitable.

Dr. Jonas Kizima the Acting Director-General of Tanzania Livestock Research Institute (Taliri) said on Tuesday that Preliminary studies have discovered that most industries in the livestock products category are performing shoddily due to poor production and supply of raw materials.

The Tanzanian government said it is embarking on implementing a special five-year programme (2021-2025) to push for improvement of the livestock industry.

“The programme seeks to enable stakeholders in the beef and dairy cattle chains in all regions of to improve their performance by adopting better technologies and practices so that they can stand a professional chance to meet actual raw material demand in the livestock industry,” Dr. Jonas Kizima said.

Tanzania is therefore arguing that it is going to introduce and help livestock keepers across the country to raise hybrid animals, provide best animal health services, animal compounded and feeds, put in place animal husbandry infrastructure, improve milk handling, grazing systems and maintain good diary animal genetics.

“Inbreeding is the biggest technical challenge livestock keepers are facing- it is detrimental to livestock,” Dr Kizima noted.

The new agenda is in compliance with President John Magufuli’s directive issued to revive and promote animal industries for the next five years in the coastal East African country.

According to Concerns by Magufuli at least 90% of animal skins and skins produced in Tanzania were of very poor quality due to poor slaughtering methods.

Magufuli says he is seeking to motivate investors from within and outside the country to invest in meat industries, but also in leather production and other animal products such as hoofs.

Under this new program, Tanzania wants to construct seven major abattoirs in different regions with the capacity to slaughter at least 6700 cows and 11000 goats per day.

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Business

Global Oil Prices Fall Ahead of OPEC Meeting

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As the alliance of Oil producing countries under OPEC meet on Thursday, global oil prices have reportedly fallen according to sector experts.

Details indicate that the alliance is expected to loosen the taps after prices got off to their best ever start to a year.

But it’s unclear how robustly the group will act, with the Saudi Arabian energy minister calling for producers to remain “extremely cautious.”

The market continues to face risks in the near term. China’s Unipec was re-offering cargoes of April Angolan crude amid weaker sales.

Diesel demand in India was also down versus a year earlier amid record pump prices in the country. Both point to a limit on some of the recent firmness seen within the oil market.

“Now that oil’s back at $60, there’s going to be a push to wean off of those cuts,” said Stewart Glickman, energy equity analyst at CFRA Research.

“The question is how much are they going to bring back. The biggest risk is if supply presumes we’re back to pre-pandemic demand in 2021 and that turns out not to be the case.”

Still, there has been a raft of bullish calls in recent weeks predicting the rally will continue as the producer response trails consumption, while maintenance in North Sea fields is set to further reduce supply.

There are also some signs that demand is starting to pick up. U.S. gasoline demand jumped by 1 million barrels a day last week to 8.76 million barrels a day, a level comparable to March 2020 before the pandemic, according to Descartes Labs.

“People have become very optimistic about the ability of OPEC+ to manage a return to a balanced market,” said Michael Lynch, president of Strategic Energy & Economic Research.

The market continues to “see improved demand down the road and OPEC+ not oversupplying the market as they ramp up again.”

The Organization of Petroleum Exporting Countries and its allies must decide how much output gets restored — and at what pace — with current reductions amounting to just over 7 million barrels a day, or 7% of global supply.

The 23-nation coalition will choose whether to revive a 500,000-barrel tranche in April, and in addition, whether the Saudis confirm an extra 1 million barrels they’ve taken offline will return as scheduled.

Citigroup Inc. thinks the coalition will boost output by about 500,000 barrels a day next month, with Saudi Arabia unlikely to continue its voluntary curbs.

“A higher oil-price environment, an increasingly promising demand picture by summer, and the recovering but still growing U.S. oil production outlook for 2021 should give OPEC+ the confidence to slightly increase supply,” said Louise Dickson, an analyst at consultant Rystad Energy AS.

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