Southern African Development Community - United States ...

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OVERVIEW-Continued MINERALS AND METALS-CONTINUED S In mid-2003 and into 2004, prices for several minerals and metals continued to recover from the extreme lows of the 1997-early 2003 period, reflecting declining inventories arising from a combination of worldwide production shutdowns and cutbacks, and rising consumption. In 2003, aluminum, which had declined to $0.62 per pound, averaged $0.67 per pound; gold, which had declined to $294 per troy ounce, averaged $350 per troy ounce; and copper, which had reached a low of $0.59 per pound, averaged $0.82 per pound. The Producer Price Index for steel mill products rose over 6 percent in 2003 and was up almost 8 percent over the 2001 level. 12 These price increases contributed to the improving economies of the metal-producing SSA countries and attracted additional FDI, notably from Australasian (Australian and Chinese) and North American (Canadian and U.S.) sources. 13 S Prices of most PGMs have increased over the last decade because of strong demand from the transportation equipment sector, which uses these metals in catalytic converters, and also because of uncertainty regarding Russian supplies of these metals. 14 As a major producer of PGMs, South Africa has benefited from the price increases. However, palladium, rhodium, and ruthenium continued their 2-year price decline in 2003, thus negatively affecting South Africa’s PGM industry. 15 S South African gold production decreased by 35 percent in the past decade (from 578 tons in 1993 to 376 tons in 2003), with a corresponding decrease in producing companies (from 50 gold producers listed on the Johannesburg Stock Exchange Securities Exchange to 14). Employment in the sector also declined significantly. Some analysts expect gold output to maintain the current level until 2006, and drop by 25 tons per year thereafter. Because of the long lead time and costliness of discovering and developing new mines, production increases are not predicted for the near future. 16 S Several SSA countries, such as Botswana, Mozambique, and DROC, 17 are continuing to implement investment-friendly regulatory protocols. However, South Africa’s Black Empowerment initiatives, coupled with a new mining law that took effect in 2003 (ceding land ownership back to the state), and the 2004 Mineral and Petroleum Royalty Bill (referred to as the “Money Bill,” this legislation instituted royalties of 3 percent on gold, 4 percent on platinum, and 8 percent on diamonds), 18 have created significant valuation and financial risk issues that are delaying sector investment in South Africa. 19 Further, the proposed new Mine Health and Safety Acts are expected to increase production costs. 20 To counteract these effects, a Beneficiation Bill has been proposed to promote South Africa’s minerals industry by granting South Africans the opportunity to own basic forms of gold, diamonds, and PGMs, and possibly other minerals as well. 21 This bill is expected to stimulate downstream processing and fabrication of these basic forms in South Africa by providing producer incentives such as remission of mining royalties for locally manufactured products. 22 S The Geita gold mine in Tanzania became fully operational in late 2002. Owned by Geita Gold Mining Limited and operated by Ashanti Goldfields (Ghana) and AngloGold (South Africa) under a joint-venture agreement, Geita now produces about one-half of Tanzania’s gold, making it one of Africa’s largest gold-producing mines. Approximately 655,000 ounces of gold were produced during 2003. 23 5-24 S The United States enacted the Clean Diamond Trade Act (Public Law 108-19) on April 25, 2003, which was initiated by Congress in response to the use of diamonds to fund conflict and human rights violations in parts of Africa. The Act bans the importation of rough diamonds from any nonparticipant in the Kimberley Process Certification Scheme (KPCS).Presidential Executive Order 13312, effective July 30, 2003, which amends prior orders on the subject to reflect provisions of the new Act, bans all rough diamonds from Liberia,even if they originated elsewhere, and removes the prior ban on all rough diamonds from Sierra Leone that are controlled through the KPCS. 24 The Central African Republic joined the 61 member-countries of the KPCS in August 2003. 25 As noted above, DROC was suspended by the United Nations from world trade in diamonds in July 2004. 26 S On July 13, 2004, DeBeers pled guilty to price fixing and agreed to pay $10 million to settle a 10-year-old indictment in U.S. District Court.This settlement is widely anticipated to increase South African diamond exports to the U.S. market by allowing DeBeers to re-establish a direct marketing presence in the United States, which would increase U.S. imports from South Africa, because Anglo-American, the largest South African mining company, is a subsidiary of DeBeers. 27
SSA sector global imports, by country, 2002 ($7.1 billion) South Africa 32% Nigeria 16% Source: United Nations. SSA sector global imports, by HTS chapter, 2002 ($7.1 billion) Articles of iron or steel (73) 27 Iron and steel (72) Diamonds and precious metals (71) Industrial minerals (25) Ceramic products (69) Source: United Nations. Source: United Nations. Kenya 4% All other MINERALS AND METALS-CONTINUED All other 40% Mozambique 4% Angola 4% 11 19 0 5 10 15 20 25 30 35 Share of total (percent) Major Share of Major Import Share of Import Total Item Total Source (2002) (percent) (6-digit HTS) (2002) (percent) EU15 ................. 42 Nonindustrial diamonds (7102.31) .......... 7 South Africa ............ 8 Certain portland cement (2523.29) ......... 4 China .................. 7 Iron or steel structures (7308.90) ........... 3 India .................. 5 Refined copper cathodes (7403.11) ......... 2 Japan ................. 4 Glazed ceramic tiles (6908.90) ............. 2 6 7 30 TRADE 5-25 SSA sector global exports, by country, 2002 ($22.0 billion) South Africa 68% Source: United Nations. All other 15% SSA sector global exports, by HTS chapter, 2002 ($22.0 billion) Diamonds and precious metals (71) 57 Metal ores and concentrates (26) Iron and steel (72) Aluminum (76) Copper (74) All other Source: United Nations. Source: United Nations. 3 8 7 13 12 Mozambique 2% Guinea 3% 0 10 20 30 40 50 60 70 Share of total (percent) Congo (DROC) 5% Botswana 7% Major Share of Major Export Share of Export Total Item Total Market (2002) (percent) (6-digit HTS) (2002) (percent) EU15 ................. 48 Nonindustrial diamonds (7102.31) ......... 26 United States .......... 13 Gold (7108.12) ......................... 12 Japan ................. 9 Platinum (7110.11) ....................... 9 India .................. 9 Aluminum (7601.10) ...................... 6 China .................. 4 Iron ore (2601.11) ....................... 4
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U.S. International Trade Commission
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UNITED STATES INTERNATIONAL TRADE C
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This report was principally prepare
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imports from the region. U.S. expor
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- the Southern African Development
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vi Figure ES-1 SSA sector profiles
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purchased Fine Chemicals Corp. faci
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exploration drilling. U.S. exports
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egional stability stemming from neg
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TABLE OF CONTENTS Page Executive Su
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TABLE OF CONTENTS—Continued Page
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List of Abbreviations and Acronyms-
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Approach S expanded information on
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Cape Verde Senegal The Gambia Guine
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CHAPTER 1 U.S. Trade and Investment
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The increase in total U.S. exports
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In absolute terms, U.S. merchandise
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Table 1-1 Sub-Saharan Africa: U.S.
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1-9 Table 1-2—Continued Sub-Sahar
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In absolute terms, significant incr
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1-13 Table 1-3—Continued Sub-Saha
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Figure 1-9 U.S. cross-border trade
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Box 1-1 Services Trade in Sub-Sahar
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Table 1-5 Total Africa and South Af
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Table 1-6 Global investment flows t
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since 2000. 35 African companies, m
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Table 1-9 Bilateral investment trea
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Because the lack of available infor
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through September 30, 2015, and the
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U.S. Imports under AGOA the Secreta
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2-6 Table 2-2—Continued U.S. impo
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AGOA-Related Investment accounted f
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2-10 Table 2-4—Continued Leading
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Table 2-5 Selected examples of rece
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Table 2-5—Continued Selected exam
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Table 2-5—Continued Selected exam
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African Union Commission that was d
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Status and Structure: ECOWAS was es
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Status and Structure: Union Economi
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Status and Structure: Common Market
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Status and Structure: Southern Afri
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Status and Structure: Southern Afri
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Status and Structure: East African
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Status and Structure: Intergovernme
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Status and Structure: 800 600 400 2
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Communauté Economique et Monétair
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TRADE-Continued ENDNOTES 1 African
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Table 4-1 Summary of general develo
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environment, and strengthening soci
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Table 4-4 World Bank projects appro
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Table 4-4—Continued World Bank pr
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Table 4-6 MIGA guarantees issued in
Page 118 and 119: infrastructure funds, and developme
Page 120 and 121: lending facility (formerly known as
Page 122 and 123: provided $300 million for NEPAD inf
Page 124 and 125: Table 4-8 U.S. support for building
Page 126 and 127: 4-20 Figure 4-1 U.S. trade capacity
Page 128 and 129: Table 4-10-Continued Examples of tr
Page 136 and 137: Box 4-1 USAID and Trade Capacity-Bu
Page 138 and 139: Table 4-11 Sub-Saharan Africa: Expo
Page 140 and 141: Table 4-12-Continued U.S. Trade and
Page 142 and 143: In FY 2003, USAID obligations for S
Page 144 and 145: USAID is a partner in the $15-billi
Page 147 and 148: agriculture, fisheries, and forest
Page 149 and 150: AGRICULTURE, FISHERIES, AND FOREST
Page 155 and 156: SSA sector production, by country,
Page 157 and 158: TRADE-Continued South Africa 58% So
Page 159 and 160: South Africa U.S. sector SSA FDI po
Page 161 and 162: PETROLEUM AND ENERGY-RELATED PRODUC
Page 167: 1 MINERALS AND METALS SSA sector pr
Page 171 and 172: TRADE-Continued South Africa 39% U.
Page 173 and 174: U.S. sector SSA FDI position, by co
Page 175 and 176: MINERALS AND METALS-CONTINUED 35 Me
Page 177 and 178: 1 TEXTILES AND APPAREL S SSA accoun
Page 179 and 180: SSA sector global imports, by count
Page 181 and 182: TRADE-Continued South Africa 21% Gh
Page 183 and 184: TEXTILES AND APPAREL-CONTINUED 1 Th
Page 185 and 186: CERTAIN TRANSPORTATION EQUIPMENT 1
Page 187 and 188: South Africa 61% Certain Transporta
Page 189 and 190: TRADE-Continued South Africa 67% Ce
Page 191: Certain Transportation Equipment-co
Page 194 and 195: EAC regional framework, Uganda is s
Page 196 and 197: Figure 6-1 Gross national income pe
Page 198 and 199: Table 6-2 Tariffs in sub-Saharan Af
Page 200 and 201: Statistical data for the 48 countri
Page 202 and 203: ANGOLA Main Trade Partners, percent
Page 204 and 205: enin Main Trade Partners, percent o
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Page 208 and 209: urkina faso Main Trade Partners, pe
Page 210 and 211: urundi Main Trade Partners, percent
Page 212 and 213: cameroon Main Trade Partners, perce
Page 214 and 215: cape verde Main Trade Partners, per
Page 216 and 217: central african republic Main Trade
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chad Main Trade Partners, percent o
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comoros Main Trade Partners, percen
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CÔTE D’IVOIRE Main Trade Partner
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democratic republic of THE CONGO Ma
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djibouti Main Trade Partners, perce
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equatorial guINEA Main Trade Partne
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eritrea Main Trade Partners, percen
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ethiopia Main Trade Partners, perce
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gabon Main Trade Partners, percent
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the gambia Main Trade Partners, per
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ghana Main Trade Partners, percent
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guinea Main Trade Partners, percent
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guinea-bissau Main Trade Partners,
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kenya Main Trade Partners, percent
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lesotho Main Trade Partners, percen
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liberia Main Trade Partners, percen
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madagascar Main Trade Partners, per
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malawi Main Trade Partners, percent
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mali Main Trade Partners, percent o
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mauritania Main Trade Partners, per
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mauritius Main Trade Partners, perc
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mozambique Main Trade Partners, per
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namibia Main Trade Partners, percen
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niger Main Trade Partners, percent
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nigeria Economic Update—Continued
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nigeria Net Foreign Direct Investme
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epublic of the congo Main Trade Par
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wanda Main Trade Partners, percent
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SÃO TOMÉ AND PRINCIPE Main Trade
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senegal Main Trade Partners, percen
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seychelles Main Trade Partners, per
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sierra Leone Main Trade Partners, p
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somalia Main Trade Partners, percen
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south africa 6-92 Economic Update
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south africa Net Foreign Direct Inv
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sudan Main Trade Partners, percent
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swaZILAND Main Trade Partners, perc
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tanzania Main Trade Partners, perce
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togo Main Trade Partners, percent o
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uganda Main Trade Partners, percent
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zambia Main Trade Partners, percent
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zimbabwe Main Trade Partners, perce
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Economist Intelligence Unit, “IMF
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Cameroon Economist Intelligence Uni
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Economist Intelligence Unit, “Eco
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Economist Intelligence Unit, “Reg
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Guinea Economist Intelligence Unit,
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Economist Intelligence Unit, “Gro
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“IMF weighs resumption of aid to
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“Mozambique-South Africa/Investme
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“Country Vows to Make Privatizati
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Economist Intelligence Unit, “US
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Somalia Economist Intelligence Unit
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John Fraser, “Country Takes Lion
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Abduel Kenge, “Tanzania Plans to
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Economist Intelligence Unit, “Spe
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“Weird economy is consuming itsel
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A-2
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A-4
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A-6
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B-2
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Table B-1—Continued U.S. exports,
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Table B-1—Continued U.S. exports,
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Table B-2-Continued Benin: U.S. exp
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Table B-2-Continued Burkina Faso: U
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Table B-2-Continued Cameroon: U.S.
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Table B-2-Continued Central African
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Table B-2-Continued Comoros: U.S. e
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Table B-2-Continued Democratic Repu
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Table B-2-Continued Equatorial Guin
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Table B-2-Continued Ethiopia: U.S.
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Table B-2-Continued The Gambia: U.S
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Table B-2-Continued Guinea: U.S. ex
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Table B-2-Continued Kenya: U.S. exp
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Table B-2-Continued Liberia: U.S. e
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Table B-2-Continued Malawi: U.S. ex
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Table B-2-Continued Mauritania: U.S
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Table B-2-Continued Mozambique: U.S
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Table B-2-Continued Niger: U.S. exp
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Table B-2-Continued Republic of the
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Table B-2-Continued São Tomé & Pr
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Table B-2-Continued Seychelles: U.S
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Table B-2-Continued Somalia: U.S. e
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Table B-2-Continued Sudan: U.S. exp
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Table B-2-Continued Tanzania: U.S.
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Table B-2-Continued Uganda: U.S. ex
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Table B-2-Continued Zimbabwe: U.S.
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Table B-3—Continued Côte d’Ivo
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Table B-3—Continued Gabon: Leadin
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Table B-3—Continued Kenya: Leadin
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Table B-3—Continued Nigeria: Lead
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Table B-3—Continued South Africa:
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Table B-4—Continued U.S. imports
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Table B-4—Continued U.S. imports
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