Back Matter

Back Matter

Author(s):
Sena Eken, John Laker, and Shailendra Anjaria
Published Date:
July 1982
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    Appendix I Regional Trade Data
    Table 10.Preferential Trade Area Countries: Trends in Total and Intraregional Trade, 1973–801(In millions of U.S. dollars and per cent)
    197319741975197619771978197919802
    Angola
    Total trade1,3451,8541,3589811,7262,1462,2803,265
    Intraregional trade1816935566
    Share of intraregional trade1.30.90.70.30.30.20.30.2
    Botswana
    Total trade2523053613854565759591,176
    Intraregional trade5537119129
    Share of intraregional trade2.01.60.81.82.41.61.30.8
    Comoros
    Total trade2035332225264640
    Intraregional trade34445449
    Share of intraregional trade15.011.412.118.220.015.48.722.5
    Djibouti3
    Total trade881351626679135152161
    Intraregional trade2122329981010
    Share of intraregional trade23.916.319.813.611.45.96.66.2
    Ethiopia
    Total trade4595515516366847629941,168
    Intraregional trade2731373124163846
    Share of intraregional trade5.95.66.74.93.52.13.83.9
    Kenya
    Total trade1,0911,6291,5401,7662,4752,7282,7263,483
    Intraregional trade189230215243205171167302
    Share of intraregional trade17.314.114.013.88.36.36.18.7
    Lesotho
    Total trade103129161209229244327479
    Intraregional trade
    Share of intraregional trade
    Madagascar
    Total trade4065256595636908281,0241,182
    Intraregional trade5108766717
    Share of intraregional trade1.21.91.21.20.90.70.71.4
    Malawi
    Total trade243307387372440520632729
    Intraregional trade2121131514152842
    Share of intraregional trade8.66.83.34.03.22.94.45.8
    Mauritius
    Total trade3046216306247568159431,096
    Intraregional trade712131520202927
    Share of intraregional trade2.31.92.12.42.72.53.12.5
    Mozambique
    Total trade6907666087464077197951,066
    Intraregional trade213013125284352
    Share of intraregional trade3.03.92.11.61.23.95.44.9
    Seychelles
    Total trade4283538475671109111
    Intraregional trade46877883
    Share of intraregional trade14.317.121.114.912.511.37.32.7
    Somalia
    Total trade157192251250289348556695
    Intraregional trade710131417212432
    Share of intraregional trade4.55.25.25.65.96.04.34.6
    Swaziland
    Total trade203316375394408507675944
    Intraregional trade57444443
    Share of intraregional trade2.52.21.11.01.00.80.60.3
    Tanzania
    Total trade8291,2331,2301,1481,2221,5721,6661,959
    Intraregional trade11012911112045325665
    Share of intraregional trade13.310.59.010.53.72.03.43.3
    Uganda
    Total trade473540475521812595668973
    Intraregional trade819374831442790185
    Share of intraregional trade17.117.215.615.917.74.513.519.0
    Zambia
    Total trade1,7202,1941,7401,6991,5691,4212,1982,466
    Intraregional trade5165333935335343
    Share of intraregional trade3.03.01.92.32.22.32.41.7
    Sources: International Monetary Fund, Direction of Trade Statistics Yearbook, 1980 and 1981; data provided by national authorities; and Fund staff estimates.

    Total trade equals exports plus imports. Data from different sources are sometimes inconsistent. For certain countries (especially Botswana, Lesotho, Swaziland, the Comoros, and Djibouti), estimates of intraregional trade may be subject to significant error.

    Preliminary estimates.

    Series for 1973–75 may not be fully consistent with series for 1976–80.

    Including re-exports.

    Table 11.Preferential Trade Area Countries: Value of Intraregional and Total Trade, 19801(In millions of U.S. dollars)
    ExportsImports
    CountryTo
    region
    TotalFrom
    region
    Total
    Angola0.51,727.16.01,538.0
    Botswana4.0501.35.0674.8
    Comoros0.511.28.129.1
    Djibouti0.24.410.0156.3
    Ethiopia38.6417.27.8750.9
    Kenya234.51,270.267.92,213.2
    Lesotho43.10.1435.8
    Madagascar3.4424.513.5757.4
    Malawi19.7277.022.6451.7
    Mauritius4.7474.422.0622.0
    Mozambique19.6448.032.2617.8
    Seychelles0.75.622.493.4
    Somalia0.8148.230.7546.9
    Swaziland1.0348.02.1595.8
    Tanzania38.0577.826.71,380.9
    Uganda6.0521.5178.6451.2
    Zambia19.31,539.623.8926.6
    Zimbabwe3107.71,295.397.91,468.1
    Total499.210,034.4557.413,709.9
    Sources: International Monetary Fund, Direction of Trade Statistics Yearbook, 1980; data provided by national authorities; and 1 Fund staff estimates.

    Preliminary estimates. Data from different sources are sometimes inconsistent. For certain countries (especially Botswana, Lesotho, Swaziland, the Comoros, and Diihouti) estimates of intraregional trade may be subject to significant error.

    Domestic exports only.

    For the 12-month period beginning August 1980.

    Table 12.Preferential Trade Area Countries: Shares of Principal Export Products, 1980(Percentage of total exports)
    CountryPrincipal ExportsShare
    Angola1Crude petroleum48.3
    Coffee20.2
    BotswanaDiamonds60.9
    Copper-nickle matte20.8
    ComorosVanilla13.6
    Perfume24.8
    EthiopiaCoffee65.3
    KenyaCoffee23.0
    Tea11.3
    LesothoDiamonds67.0
    Madagascar2Coffee42.6
    Cloves16.9
    MalawiTobacco43.9
    MauritiusSugar65.0
    Mozambique3Cashew nuts23.1
    Cotton21.1
    SeychellesCopra61.0
    SomaliaLive animals79.5
    SwazilandSugar46.5
    Wood pulp and forestry products13.5
    TanzaniaCoffee26.9
    Cotton8.6
    UgandaCoffee98.6
    ZambiaCopper88.2
    ZimbabweTobacco13.5
    Gold12.6
    Iron and steel10.3
    Ferroalloys9.7
    Asbestos8.8
    Sources: United Nations, Yearbook of International Trade Statistics, 1979; data provided by national authorities; and Fund staff estimates.

    1974 data.

    1979 data.

    1973 data.

    Table 13.Kenya, Tanzania, and Uganda: Direction of Trade, by Major Sources and Destinations, 1973–79(Percentage of total trade)
    United KingdomOther EECUnited StatesJapanAfrica1
    197319761979197319701979197319761979197319761979197319761979
    Kenya
    Exports12.310.920.318.725.028.44.55.54.63.01.92.034.931.522.5
    Imports23.519.224.422.421.524.07.85.84.112.011.08.56.84.11.9
    Tanzania
    Exports10.39.614.916.629.732.87.69.55.23.62.33.918.810.612.5
    Imports14.412.619.720.022.130.92.86.04.18.27.87.610.812.81.9
    Uganda
    Exports20.820.58.219.521.427.719.933.417.16.66.310.4V.52.82.8
    Imports17.415.318.315.816.912.51.93.90.35.44.03.541.050.553.0
    Sources: International Monetary Fund, Direction of Trade Statistics Yearbook, 1980 data provided by national authorities.

    Excluding South Africa, Egypt, and the oil exporting countries of Algeria, Libya, and Nigeria.

    Table 14.Kenya: Trends in Intraregional Trade, 1973–80
    197319741975197619771978197919801
    Million U.S. dollars
    Total exports474.3602.9601.8793.11,186.01,022.31,087.51,270.2
    Of which: Coffee102.2107.796.0223.4493.8307.9296.1291.6
    Percentage of total exports
    Exports to PTA31.630.529.526.016.36.313.818.5
    Of which: Tanzania10.28.99.510.12.00.71.01.1
    Uganda13.412.812.210.010.61.79.413.1
    Zambia4.35.13.72.71.41.41.41.0
    Exports to other Africa23.33.95.55.54.36.17.67.8
    Of which: Burundi0.30.30.30.40.40.91.11.3
    Rwanda0.91.42.21.91.22.02.12.4
    Sudan0.60.40.81.31.01.81.92.1
    Million U.S. dollars
    Total imports616.41,026.3938.6972.91,289.11,705.91,638.02,213.2
    Of which: Mineral fuels65.0231.2263.2250.1285.4307.5386.5500.0
    Percentage of total imports
    Imports from PTA6.44.53.93.70.90.91.03.1
    Of which: Tanzania3.62.62.83.10.30.1
    Uganda2.21.00.80.20.10.30.10.1
    Zambia0.30.60.10.20.20.20.20.2
    Imports from other Africa20.40.30.20.40.60.50.90.3
    Of which: Rwanda0.10.20.20.40.50.2
    Sources: International Monetary Fund, Direction of Trade Statistics Yearbook, 1980 and 1981, and International Financial Statistics, various issues; data provided by Kenyan authorities; and Fund staff estimates.

    Preliminary estimates.

    “Other Africa” excludes South Africa, Egypt, and the oil exporting countries of Algeria, Libya, and Nigeria.

    Table 15.Kenya: Commodity Composition of PTA Trade, 1978(In thousands of U.S. dollars)
    Standard International
    Trade Classification
    EthiopiaMadagascarMalawiMauritiusMozambiqueSeychellesSomaliaTanzaniaUgandaZambiaTotal
    trade
    PTA
    trade
    PTA
    share
    Exports1Per cent
    0. Food and live animals1,731237661,0662751,5321304,4802,155592,57512,1582.1
    1. Beverages and tobacco334174112152,7702127.7
    2. Crude materials excluding fuels19212115454964250983711985,3972,4572.9
    3. Mineral fuels, lubricants, and related materials96911,0924,4761,4471,13653,0037,258185,26369,38237.5
    4. Animal and vegetable oils and fats1216121496438740.2
    5. Chemicals2,1561,92229346812618895433812,9662,59843,29922,00950.8
    6. Basic manufactures9181744455,493158302,6522,72913,3421,15674,99527,75437.0
    7. Machines, transport equipment87090445591565411,53311,53257622,87915,40667.3
    8. Miscellaneous manufactured goods291252334511081,2927492,86964913,4716,26246.5
    9. Goods not classified by kind654
    Total6,9872,4271,0517,9231,2726,0899,1137,12499,31114,7301,022,267156,02815.3
    Imports
    0. Food and live animals278461002,80655,3453,2305.8
    1. Beverages and tobacco278461002,80655,2453,2305.8
    2. Crude materials excluding fuels1705222,6285459796136,7031,4313.9
    3. Mineral fuels, lubricants, and related materials2,6281,133307,4773,7611.2
    4. Animal and vegetable oils and fats141,6701
    5. Chemicals2361142178,9792070.1
    6. Basic manufactures5784421146503,869286,7714,1951.5
    7. Machines, transport equipment1,335762717726238691,1481,8520.3
    8. Miscellaneous manufactured goods281192342732386,8231280.2
    9. Goods not classified by kind911,670100.6
    Total1,591165913492,6329519135,1114,0741,705,92315,3380.9
    Source: Kenya, Customs and Excise Department, Annual Trade Report, 1978.

    Includes re-exports.

    Table 16.Kenya: Value of Major Commodities Traded with Neighboring Countries, 1978(In thousands of U.S. dollars)
    Trading PartnerExportsValueImportsValue
    UgandaMilk456Tea and mate2,768
    Milk for infants462Skins (other than calf)599
    Margarine and shortening525Electric energy1,133
    Petroleum products51,836
    Natural gas411
    Medicaments and drugs657
    Perfumes and toiletries507
    Cleaners755
    Disinfectants579
    Insecticides2,199
    Exercise books448
    Cement706
    Other steel parts2,796
    Road motor vehicles775
    Ships and boats460
    RwandaPetroleum products7,084Tea and mate5,692
    Cement1,142Pyretheum339
    Flat iron plates972
    Batteries and cells1,196
    SudanMilk (solid)345
    Lumber329
    Petroleum products2,907
    Uncoated paper rolls700
    Cement560
    Other steel parts808
    ZambiaMilk for infants1,244Copper (worked)600
    Petroleum products6,657Lead (unwrought)285
    Medicaments and drugs448Zinc (unwrought)2,972
    Soaps766
    EthiopiaTea and mate1,309Aircraft engines1,147
    Petroleum products965
    Medicaments and drugs586
    Insecticides362
    Batteries and cells629
    MozambiqueInfant food428Coal2,628
    Tea and mate592
    SomaliaTea and mate685
    Cotton407
    Floor sheets408
    Other plastic articles563
    OtherSeeds for planting (Tanzania)506Tobacco (Malawi)522
    Cigarettes (Burundi)855Cotton (Tanzania)452
    Petroleum products (Burundi)3,390
    Petroleum products (Seychelles)4,476
    Cement (Seychelles)405
    Paper bags (Mauritius)573
    Cement (Mauritius)4,699
    Source: Kenya, Customs and Excise Department, Annual Trade Report, 1978.
    Table 17.Tanzania: Trends in Intraregional Trade, 1973–80
    197319741975197619771978197919801
    Million U.S. dollars
    Total exports340.8420.2387.8492.1500.9453.8520.3577.8
    Of which: Coffee70.552.565.2153.1224.5169.5148.8155.0
    Percentage of total exports
    Exports to PTA17.415.412.77.52.34.46.86.6
    Of which: Kenya6.56.45.96.10.70.1
    Mozambique0.10.20.32.53.94.2
    Zambia9.77.25.60.71.10.40.4
    Exports to other Africa21.42.93.13.12.32.81.62.0
    Of which: Burundi0.81.21.41.51.51.81.00.7
    Zaire0.30.80.60.70.40.3
    Million U.S. dollars
    Total imports488.5812.8842.5656.1722.51,118.31,146.01,380.9
    Of which: Mineral fuels48.2140.776.9103.1102.4126.5171.9300.0
    Percentage of total imports
    Imports from PTA10.57.97.312.73.41.02.01.9
    Of which: Kenya9.96.66.512.22.80.21.01.1
    Mozambique0.10.20.40.50.5
    Zambia0.41.10.30.40.30.20.40.3
    Imports from other Africa20.30.20.20.10.20.3
    Sources: International Monetary Fund, Direction of Trade Statistics Yearbook, 1980 and 1981, and International Financial Statistics, various issues; data provided by Tanzanian authorities; and Fund staff estimates.

    Preliminary estimates

    “Other Africa” excludes South Africa, Egypt, and the oil exporting countries of Algeria, Libya, and Nigeria.

    Table 18.Tanzania: Commodity Composition of PTA Trade, 1978(In thousands of U.S. dollars)
    Standard International
    Trade Classification
    EthiopiaKenyaMadagascarMalawiMauritiusMozambiqueSeychellesSomaliaSwazilandUgandaZambiaTotal
    trade
    PTA
    trade
    PTA
    share
    Exports1Per cent
    0. Food and live animals2842968327,9254481463269,7368,8903.3
    1. Beverages and tobacco412830,3151320.4
    2. Crude materials excluding fuels626562,10619100,7652,2132.2
    3. Mineral fuels, lubricants, and related materials1,34355811,2421,90116.9
    4. Animal and vegetable oils and fats122341,48024616.6
    5. Chemicals57945653,79667117.7
    6. Basic manufactures744621813503,47311056452,7145,1159.7
    7. Machines, transport equipment222293312122243,0315,3223,48265.4
    8. Miscellaneous manufactured goods215210969265401,5311,06969.8
    9. Goods not classified by kind14834819720.2
    Total365276371118611,245805,8392205,557477,38223,8165.0
    Imports
    0. Food and live animals29142433867664,6507481.2
    1. Beverages and tobacco13763131.7
    2. Crude materials excluding fuels30176565623,7323181.3
    3. Mineral fuels, lubricants, and related materials49825126,5105230.4
    4. Animal and vegetable oils and fats15019,3591500.8
    5. Chemicals18221,42942132,3471,6551.3
    6. Basic manufactures1,642663,616511,291229,5076,5672.9
    7. Machines, transport equipment19578676954697362856499,7552,1350.4
    8. Miscellaneous manufactured goods1377227911261244146,3329602.1
    9. Goods not classified by kind231,194231.9
    Total633,4827511654,627243951,49232,8101,144,14913,0921.1
    Source: Tanzania, Customs and Excise Department, Annual Trade Report of Tanzania, 1978.

    Includes re-exports.

    Table 19.Tanzania: Value of Major Commodities Traded with Neighboring Countries, 1978(In thousands of U.S. dollars)
    Trading PartnerExportsValueImportsValue
    MozambiqueSugarcane115Skimmed milk243
    Coffee238Coconut oil150
    Cocoa beans405Cement3,579
    Maize7,104Refrigerators342
    Tires and tubes310
    Textiles213
    Women’s clothes296
    Other cotton garments635
    ZambiaCoffee417Copper products153
    Petroleum products558Zinc (unwrought)963
    Of which: Re-exports392Copper conducting wire448
    Coconut oil234Footwear211
    Glues286
    Metal plates266
    Batteries188
    Transportation equipment
    (re-exported)
    2,830
    BurundiRefined sugar663
    Cigarettes1,048
    Salt751
    Petroleum products756
    Cement790
    RwandaCigarettes449
    Cement164
    Batteries1,156
    SomaliaRaw cotton2,095Fish386
    Aluminum utensils3,332
    KenyaLubricants365
    Tarpaulins453
    Motor vehicles105
    Books280
    OtherTea (Ethiopia)278Fertilizers (Swaziland)1,429
    Raw cotton (Zaire)388
    Petroleum products (Zaire)805
    Source: Tanzania, Customs and Excise Department, Annual Trade Report of Tanzania, 1978.
    Table 20.Uganda: Trends in Intraregional Trade, 1973–80
    197319741975197619771978197919801
    Million U.S. dollars
    Total exports310.4327.1278.1360.6564.9375.0464.5521.5
    Of which: Coffee179.7219.5188.6297.2548.8314.5417.1514.0
    Percentage of total exports
    Exports to PTA4.83.52.20.70.61.70.81.1
    Of which: Kenya4.43.21.80.50.41.20.60.6
    Somalia0.20.20.30.20.10.30.30.3
    Exports to other Africa23.72.56.02.12.03.44.04.3
    Of which: Rwanda0.20.20.10.20.30.20.2
    Sudan2.72.22.51.61.13.03.53.7
    Million U.S. dollars
    Total imports162.5213.1196.6160.3246.9219.8203.4451.2
    Percentage of total imports
    Imports from PTA40.938.234.350.257.19.541.939.6
    Of which: Kenya39.236.333.849.556.78.940.538.8
    Somalia0.10.20.20.20.1
    Tanzania1.51.70.40.60.10.10.1
    Imports from other Africa20.10.10.30.40.60.90.5
    Of which: Zaire0.20.50.80.4
    Sources: International Monetary Fund, Direction of Trade Statistics Yearbook, 1980 and 1981, and International Financial Statistics, various issues; and Fund staff estimates.

    Preliminary estimates.

    “Other Africa” excludes South Africa, Egypt, and the oil exporting countries of Algeria, Libya, and Nigeria.

    Table 21.Zambia: Trends in Intraregional Trade, 1973–80
    197319741975197619771978197919801
    Million U.S. dollars
    Total exports1,136.41,406.6811.51,043.8897.3813.01,452.41,539.6
    Of which: Copper1,076.21,303.1733.5965.3817.4734.41,139.61,359.3
    Percentage of total exports
    Exports to PTA1.21.91.21.71.71.61.91.2
    Of which: Kenya0.20.30.20.30.50.40.30.2
    Malawi0.50.50.70.60.30.30.50.5
    Tanzania0.20.80.20.70.40.30.30.1
    Exports to other Africa20.60.91.51.01.11.20.80.6
    Of which: Zaire0.50.81.40.91.01.20.20.6
    Million U.S. dollars
    Total imports3530.9787.4928.7654.8671.6607.8745.9926.6
    Of which: Mineral fuels51.394.9126.1101.8102.7107.0114.1183.9
    Percentage of total imports
    Imports from PTA5.84.92.53.22.93.23.62.6
    Of which: Kenya2.92.41.22.11.41.61.81.6
    Malawi0.80.70.60.50.70.81.00.5
    Tanzania0.70.70.20.20.30.30.3
    Imports from other Africa22.50.20.20.20.1
    Sources: International Monetary Fund, Direction of Trade Statistics Yearbook, 1980 and 1981, and International Financial Statistics, various issues; data provided by Zambian authorities; and Fund staff estimates.

    Preliminary estimates.

    “Other Africa” excludes South Africa, Egypt, and the oil exporting countries of Algeria, Libya, and Nigeria.

    Imports are measured on an FOB basis.

    Table 22.Zambia: Commodity Composition of PTA Trade, 1977(In thousands of U.S. dollars)
    Standard International
    Trade Classification
    AngolaBotswanaEthiopiaKenyaLesothoMalawiMauritiusMozambiqueSwazilandSeychellesTanzaniaTotal
    trade
    PTA
    trade
    PTA
    share
    Exports1Per cent
    0. Food and live animals4,0631604,8514,12485.0
    1. Beverages and tobacco1,4847,3311,48420.2
    2. Crude materials excluding fuels945911,021726.5
    3. Mineral fuels, lubricants, and related materials10113122,6831355.0
    4. Animal and vegetable oils and fats126
    5. Chemicals49217153,2362818.7
    6. Basic manufactures351574,5022542802,985865,9948,0150.9
    7. Machines, transport equipment40262941112291,87260132.1
    8. Miscellaneous manufactured goods12266253628710536.6
    9. Goods not classified by kind9
    Total4,063961574,61762,388380113,396897,41014,8171.7
    Imports2
    0. Food and live animals2074401,0762,579246388136,3425,64815.5
    1. Beverages and tobacco11,11510.1
    2. Crude materials excluding fuels636642516722211,1639168.2
    3. Mineral fuels, lubricants, and related materials2,2248102,6812,2322.2
    4. Animal and vegetable oils and fats319182411,5445054.4
    5. Chemicals453,08629122429274,6913,9385.3
    6. Basic manufactures1191,8571,234601270544149,3833,8962.6
    7. Machines, transport equipment1512475191433259,9671,2520.5
    8. Miscellaneous manufactured goods50340062933724,4121,2395.1
    9. Goods not classified by kind544051.1
    Total2701,57729,37164,630287631,20582,213671,73819,6332.9
    Source: Zambia, Central Statistical Office, Annual Statement of External Trade, Vol. 2 (1977).

    Includes re-exports.

    Imports are measured on an FOB basis.

    Table 23.Zambia: Value of Major Commodities Traded with Neighboring Countries, 1977(In thousands of U.S. dollars)
    Trading PartnerExportsValueImportsValue
    KenyaCopper (worked)450Milk for infants495
    Lead (unwrought)256Lubricating oils2,093
    Zinc (unwrought)3,672Soda ash354
    Medicaments333
    Soap962
    Surface-acting agents735
    Paper for printing597
    MalawiTobacco1,484Fish378
    Lime177Rice995
    Tea, in bulk268
    Cotton fabrics480
    Iron and steel wire228
    Matches245
    TanzaniaCement1,103Fish246
    Zinc (unwrought)1,727Tea, in bulk451
    Insulated wire211Aluminum plates356
    Cells and batteries433
    BotswanaMeat products402
    Tallow303
    Leather and plastic containers264
    ZaireMaize478Oilseed, cottonseed226
    Gravel2,503
    Petroleum products1,960
    Bitumen296
    Source: Zambia, Central Statistical Office, Annual Statement of External Trade, Vol. 2 (1977).
    Table 24.Ethiopia: Trends in Intraregional Trade, 1973–80
    197319741975197619771978197919801
    Million U.S. dollars
    Total exports240.1266.7240.0280.9332.8306.1417.6417.2
    Of which: Coffee91.773.473.8156.8250.9242.7292.2272.3
    Percentage of total exports
    Exports to PTA8.68.412.99.35.11.76.79.2
    Of which: Djibouti7.36.910.78.54.81.35.97.1
    Kenya0.40.41.80.30.30.11.4
    Somalia0.50.40.30.3
    Exports to other Africa20.51.10.50.40.10.10.1
    Of which: Sudan0.41.00.20.3
    Million U.S. dollars
    Total imports218.4284.1310.8355.2351.6455.4567.4750.9
    Of which: Petroleum20.349.168.553.675.762.7110.5155.4
    Percentage of total exports
    Imports from PTA2.73.21.81.32.02.51.81.0
    Of which: Djibouti0.20.20.10.20.20.30.40.3
    Kenya1.72.51.41.11.61.71.30.6
    Imports from other Africa20.20.50.40.10.10.20.2
    Of which: Sudan0.20.5
    Sources: International Monetary Fund, Direction of Trade Statistics Yearbook, 1979, 1980, and 1981, and International Financial Statistics, various issues; data provided by Ethiopian authorities; and Fund staff estimates.

    Preliminary estimates.

    “Other Africa” excludes South Africa, Egypt, and the oil exporting countries of Algeria, Libya, and Nigeria.

    Table 25.Ethiopia: Commodity Composition of PTA Trade, 1979(In thousands of U.S. dollars)
    Standard International
    Trade Classification
    BotswanaDjiboutiKenyaMauritiusTanzaniaTotal
    trade
    PTA
    trade
    PTA
    share
    Exports1Per cent
    0. Food and live animals8,6014692,779321,86411,8493.7
    1. Beverages and tobacco12150.0
    2. Crude materials excluding fuels5,661182,9925,6626.8
    3. Mineral fuels, lubricants, and related materials10,05814,22310,05870.7
    4. Animal and vegetable oils and fats1,962
    5. Chemicals615
    6. Basic manufactures1862831,01421721.4
    7. Machines, transport equipment356524710040.5
    8. Miscellaneous manufactured goods1026133110932.9
    9. Goods not classified by kind248
    Total24,6445692,7794423,49827,9966.6
    Imports
    0. Food and live animals52,11624029,5242,3618.0
    I. Beverages and tobacco117,043110.2
    2. Crude materials excluding fuels174159412517,5134082.3
    3. Mineral fuels, lubricants, and related materials1,705999110,5692,7042.5
    4. Animal and vegetable oils and fats35,01930.1
    5. Chemicals112,247785,3282,2652.7
    6. Basic manufactures15962484,6487830.9
    7. Machines, transport equipment27956212,7419830.5
    8. Miscellaneous manufactured goods10458421,2786883.2
    9. Goods not classified by kind12,6671
    Total1742,0387,623372576,33010,2071.8
    Source: Data provided by Ethiopian authorities.

    Includes re-exports.

    Table 26.Ethiopia: Value of Major Commodities Traded with Neighboring Countries, 1979(In thousands of U.S. dollars)
    Trading PartnerExportsValueImportsValue
    DjiboutiFresh vegetables1,768Petroleum products1,705
    Live animals845
    Sugar and honey4,978
    Oilseeds420
    Kat5,095
    Petroleum products10,051
    MauritiusCoffee2,779
    EgyptFresh vegetables255
    Coffee1,127
    Hides and skins256
    KenyaFresh vegetables430Tea and mate870
    Barley314
    Maize421
    Food preparations429
    Petroleum products999
    Inorganic chemicals226
    Dyeing and tanning extracts349
    Medical products667
    Soaps323
    Disinfectants351
    Metal manufactures481
    Other electrical machinery349
    Parts and accessories NES458
    Office and stationery supplies271
    Source: Data provided by Ethiopian authorities.
    Table 27.Burundi and Rwanda: Trade with PTA Countries, 1978 and 1979
    BurundiRwanda
    197819791197819791
    Million U.S. dollars
    Total exports67.099.969.3142.4
    Percentage of total exports
    Exports to PTA2.87.95.6
    Of which: Kenya2.87.95.6
    Exports to other Africa22.01.40.10.1
    Of which: Rwanda1.20.9
    Million U.S. dollars
    Total imports104.7127.4182.4186.0
    Percentage of total imports
    Imports from PTA17.120.214.615.9
    Of which: Kenya9.310.512.413.5
    Tanzania6.58.91.31.4
    Imports from other Africa20.80.71.11.2
    Of which: Zaire0.50.50.50.5
    Burundi0.60.6
    Sources: International Monetary Fund, Direction of Trade Statistics Yearbook, 1980; data supplied by national authorities of partner countries.

    Preliminary estimates.

    “Other Africa” excludes South Africa, Egypt, and the oil exporting countries of Algeria, Libya, and Nigeria.

    Table 28.Zimbabwe: External Trade Indicators(In millions of U.S. dollars)
    Million U.S. dollars
    Total exports, 19801,416
    Exports1 to PTA countries282
    Percentage share of total5.8
    Total imports, 19801,260
    Imports3 from PTA Countries280
    Percentage share of total6.4
    Direction of Trade1
    ExtraregionalPercentage of exports4
    South Africa17.1
    Federal Republic of Germany10.8
    United Kingdom5.1
    Italy4.6
    Belgium4.3
    Japan3.2
    PTA Region
    Botswana3.4
    Malawi1.3
    Zambia1.1
    ExtraregionalPercentage of imports
    South Africa27.4
    United Kingdom8.4
    United States7.3
    Federal Republic of Germany6.7
    Japan4.2
    France2.0
    PTA Region
    Zambia3.1
    Malawi1.6
    Botswana1.3
    Mozambique0.4
    Source: Zimbabwe, Central Statistical Office, Monthly Digest of Statistics (July 1981).

    Includes only exports to Botswana, Malawi, and Zambia.

    Based on data for August-December 1980.

    Includes only imports from Botswana, Malawi, Mozambique, and Zambia.

    Domestic exports, excluding gold.

    Appendix II Regional Exchange and Trade Systems

    This appendix summarizes the main features of the exchange and trade systems of the 16 countries in the Eastern and Southern Africa region that are Fund members. Further details may be obtained in International Monetary Fund, Annual Report on Exchange Arrangements and Exchange Restrictions, 1981 (Washington, 1981). In a few instances, very recent or announced, impending changes in the regulations were not taken into account. Angola and Mozambique are not members of the Fund, and hence general information about their restrictive systems has been obtained from unofficial sources.

    Members of Fund

    Table 29.Fund Members in Preferential Trade Area: Summary Features of Exchange and Trade Systems(As of December 31, 1980)
    BotswanaComorosDjiboutiEthiopiaKenyaLesothoMadagascarMalawiMauritiusSeychellesSomaliaSwazilandTanzaniaUgandaZambiaZimbabwe
    Acceptance of:
    Article VIIIXX
    Article XIVXXXXXXXXXXXXXX
    Exchange arrangement
    Exchange rate maintained within
    relatively narrow margins1 in
    terms of:
    U.S. dollarXXX
    Pound sterling
    French francXX
    South African randXX
    Cooperative exchange
    arrangement (under
    mutual intervention
    system)
    XXXXXXXXX
    Composite of currencies
    Separate exchange rates for some
    or all capital transactions
    and/or some or all invisibles
    XXX
    Import rate(s) different from
    export rate(s)
    XX
    More than one rate for importsX
    More than one rate for exportsXX
    Prescription of currency2XXXXXXXXXXXXXX
    Bilateral payments arrangements
    With members
    With nonmembersXX
    Payments restrictions
    Restrictions3 on payments for
    current transactions
    XXXXXXXXXXXX
    Restrictions on payments for
    capital transactions4
    XXXXXXXXXXXXXX
    Cost-related import restrictions
    Import surchargesXXXXXX
    Advance import depositsXX
    Surrender requirement for export proceedsXXXXXXXXXXXXXX
    Sources: International Monetary Fund, Annual Report on Exchange Arrangements and Exchange Restrictions, 1981; data provided by national authorities.

    Margins of approximately 2.25 per cent on either side of parity.

    Including prescription of marketable or convertible currencies.

    Restrictions (i.e., official action directly affecting the availability or cost of exchange, or involving undue delay) on payments to member countries, other than restrictions imposed for security reasons under Executive Board Decision No. 144-(52/51), adopted August 14, 1952.

    Resident-owned funds.

    Nonmembers of Fund

    Angola

    Exchange System

    The currency of Angola is the kwanza, the value of which is currently established at Kz 31.4 = US$1. Exchange control is administered by the Central Bank, the Banco Nacional de Angola.

    Beginning in 1977, Angola signed bilateral economic cooperation agreements with Bulgaria, Cuba, the German Democratic Republic, Hungary, Poland, the U.S.S.R., and Yugoslavia. These agreements involve the negotiation of annual trade protocols and bilateral payments arrangements. In December 1979, Angola and Zaire signed an agreement for the establishment of a bilateral payments agreement denominated in U.S. dollars.

    Imports

    All imports must be licensed by Importang, the Government’s import agency, as a condition of obtaining foreign exchange from the Central Bank. Each ministry is required to submit lists of desired imports to Importang, which allocates licenses between them. Imports must be insured by Ensa, the national insurance company. A preshipment inspection service was introduced, effective March 1980.

    Import Taxation

    Information is not available on the current schedule of import duties. Charges for customs clearance that have been in effect since mid-1979 vary from 0.5 per cent to 2 per cent of customs value, with a minimum charge of Kz 250.

    Exports

    Detailed information on export control is not available. Ministries and other government entities are understood to play a major role in both import and export trade.

    Mozambique

    Exchange System

    The currency of Mozambique was changed from the escudo to the metical effective June 1980. The metical’s exchange rate in December 1980 was Mt. 30.30 per US$1. Mozambique mine workers were given a more favorable rate for the South African rand.

    All foreign exchange operations are controlled by the State Bank, the Banco de Mocambique, which holds all accounts in foreign exchange and is the only bank allowed to open letters of credit.

    Mozambique has long-term economic and technical agreements with Romania and the U.S.S.R. that involve the negotiation of annual trade protocols and bilateral payments arrangements. Mozambique also has a bilateral payments agreement with Tanzania; all payments between the two countries are settled through clearing accounts maintained by their respective central banks.

    Imports

    According to available information, import permits are required for all goods valued in excess of Mt. 2,500. Five degrees of priority govern the issuance of licenses: (1) goods essential for consumer needs and economic development (pharmaceuticals, agricultural products); (2) goods essential for the well-being of the nation (raw materials); (3) less essential goods; (4) nonessential goods; and (5) goods considered luxuries or superfluous. Capital goods in excess of Mt. 500,000 could be imported on a deferred payments basis. Payment is usually over three years but may be spread over a period of five to seven years.

    In 1978, four import-export companies were established to handle foreign trade in (1) metallurgy, machinery, electronics, and electrical engineering; (2) fish products; (3) motorcars, motorcycles, light and heavy vehicles, machinery for agriculture and construction; and (4) chemical products, plastics, and materials for the construction and mineral industries.

    Import Taxation

    Mozambique has a single-column tariff based on Customs Cooperation Council nomenclature. “Minimum tariff” duties are applied to countries accorded most-favored-nation treatment; “maximum tariff” duties, computed at twice the minimum rate, are applied to other countries. Duties may be ad valorem, based on the CIF value less discount, or specific—based mainly on net weight.

    There is a general customs surcharge of 5–7 per cent ad valorem. A commercial maritime tax is levied at the rate of Mt. 2.50 per ton. Additional taxes are levied on luxury and nonessential items.

    Exports

    See the second paragraph of the section entitled Imports regarding the role of State companies in foreign trade.

    Appendix III Multilateral Clearing Arrangements Among Developing Countries
    Table 30.Multilateral Clearing Arrangements Among Developing Countries: Main Features
    Arrangements/
    Characteristics
    CARICOM Multilateral Clearing
    Facility
    Central American Clearing HouseLAFTAs1 Payments Agreements
    Unit of AccountU.S. dollarThe Central American Peso ($CA)=US$1U.S. dollar
    Eligible payments and transfers(a) All purchases and sales of CARICOM currencies by the commercial banks covering transactions approved by each participant; (b) payments relating to such other transactions as may be approved by the Board of Directors; and (c) intergovernmental grants, intergovernmental loans, and other government payments may be included by mutual agreement between the participants for payment through the clearing facility.All current and capital transactions within the Central American Common Market for which payment is made in the national currencies of member countries.The current and capital transactions agreed to between each pair of participants are paid exclusively in U.S. dollars, subject to national exchange regulations.
    Scope of multilateralizationFull multilateral clearing and settlement.Full multilateral clearing and settlement.Multilateral settlement after bilateral clearing.
    Period of settlementEvery six months (June 15 and December 15).Every six months (June, December).Every four months.
    Currencies used for settlement of net balancesU.S. dollarU.S. dollar, but participants making and receiving final payment may agree bilaterally on any other convertible currency.U.S. dollar
    Credit and swing balancesFixed amounts of credit and debit limits in U.S. dollars agreed upon by each participant, settlements by debtor participants not to be less than 50 per cent of the debtor’s net position at the end of the settlement period.(a) Limit of automatic (net) credit granted by a member—fixed amount of US$6 million, subject to unilateral voluntary increases; and (b) limit of automatic (net) credit received by a member—no specific limitation; in theory, the net credit received by a single participant might reach US$24 million.(a) Limit of automatic (net) credit granted by a member—fixed amount in U.S. dollars agreed bilaterally between participants; and (b) limit of automatic (net) credit received by a member—fixed amount in U.S. dollars agreed bilaterally between participants.
    Unit of accountWest African Unit of Account (UCAO)—the parity value of which must be fixed by the governing Committee of the West African Clearing House—currently equal to SDR 1.SDRU.S. dollarThe Asian Monetary Unit (AMU)=SDR 1
    Eligible payments and transfersAll current transactions among countries of the participants, except(a) such transactions as may be declared ineligible by the governing Committee of the Clearing House;(b) payments related to the reexportof goods originating in a country whose central bank or monetary authority is not a member of the WACH; and (c) payments arising from transactions among member countries of the West African Monetary Union (UMOA) are not subject to the provisions of the Agreement of the WACH.All current transactions plus other transactions agreed between the parties.All current transactions except (a) invisible payments; (b) border trade; (c) payments for war materials; and (d) trade in petroleum and petroleum products.Current international transactions except (a) payments for petroleum, petroleum products, natural gas, and natural gas products; and (b) specified invisible transactions declared in eligible by any participant at the time the ACU Agreement was signed.
    Scope of multilateralizationFull multilateral clearing and settlement.Partial multilateral settlement after bilateral clearing.Partial multilateral settlement after bilateral clearing.Full multilateral clearing and settlement.
    Period of settlementEvery month.Every three monthsOne year.Two months. The Board of Directors may, by unanimous vote, change the length of the settlement period.
    Currencies used for settlement of net balancesAny convertible currency mutually agreed upon between the participants making and receiving final payments.Convertible currencies.Any convertible currency.Any international reserve asset specified by the Board of Directors of the ACU or the currency of the creditor, subject to its specific consent.
    Credit and swing balancesLimit of automatic (net) credit granted by a member2—20 per cent of the combined annual value of imports (CIF) from, and exports (FOB)3 to, the other participating countries.4 Limit of automatic (net) credit received by member—10 per cent of the combined annual value of imports (CIF) from and exports (FOB)3 to the other participating countries.4Limit of automatic (net) credit granted by a member—US$2 million; limit of automatic (net) credit received by a member—US$2 million.Limit of automatic (net) credit granted by a member—1/12 of annual visible exportch03lev1sec5 to other participating countries; and limit of automatic (net) credit received by a member—1/24 of annual visible imports from other participating countries.5

    The Latin American Integration Association (LAIA), founded on August 12, 1980, superseded the Latin American Free Trade Association (LAFTA).

    Any bank may, on its own initiative, increase the amount of the credit line.

    The total of such exports and imports is calculated as a simple arithmetic average of the trade figures for the three years immediately preceding the year of calculation.

    Except for special arrangements between the Central Bank of Mali and the Central Bank of the West African States (BCEAO).

    Excluding petroleum, petroleum products, natural gas, and natural gas products.

    Appendix IV Protocol on Clearing and Payments Arrangements

    PREAMBLE

    THE HIGH CONTRACTING PARTIES

    CONCERNED about the absence or inadequacy of machinery for the settlement of payments among the Member States and which has hampered the expansion of trade among the countries of Eastern and Southern Africa;

    DETERMINED to facilitate the expansion of trade among their respective States by providing for a more convenient and economic machinery for the settlement of payments; and

    RECALLING the provisions of item (iii) of sub-paragraph (a) of paragraph 4 of Article 3 of the Treaty to the effect that clearing and payments arrangements for facilitating trade in goods and services among the Member States shall be set out in a Protocol annexed to the Treaty;

    HEREBY AGREE as follows:

    ARTICLE 1

    Interpretation

    In this Protocol:

    “bilateral clearing and payments arrangements” means arrangements entered into between the monetary authorities of two Member States whereby payments for goods and services are, within a defined limit, settled in the national currencies of the two countries and the excess of which is settled in convertible currencies.

    “Committee” means the Clearing and Payments Committee established by Article 10 of the Treaty and shall consist of Governors of the monetary authorities of the Member States;

    “convertible currency” means a currency which is freely and widely used to make payments for international transactions, and is widely traded in the principal exchange markets and is included in a list of currencies to be approved by the Committee from time to time;

    “Council” means the Council of Ministers established by Article 7 of the Treaty;

    “eligible transactions” means all monetary and financial transactions between the Member States relating to trade in all goods and services affected by the provisions of the Treaty;

    “monetary authority” means a Central Bank or any other institution authorized by a Member State to issue currency within its territory;

    “national currency” means any currency issued by a Member State and which is legal tender within its territory;

    “payment period” means the period within each transaction period during which the Member States which exceed the agreed limits of their net debit position shall, on the advice of the Clearing House, be required to pay the amounts in excess of the agreed limits of credit lines to the respective monetary authorities to whom they are due;

    “services” means all services directly related to the promotion of trade between the Member States conducted in pursuance of the provisions of this Treaty such as those relating to the transport, storage, handling and insurance of goods;

    “settlement period” means the period immediately following the end of each transactions period as shall be determined by the Committee, and during which settlement of outstanding debit balances arising from multilateral clearing shall be established for settlement to be made by debtor monetary authorities;

    “transactions period” means the period between any two consecutive dates fixed by the Committee and at the end of which the debit and credit positions arising from multilateral clearing shall be established for settlement to be made by debtor monetary authorities;

    “transitional period” means the period during which both multilateral payments arrangements relating to eligible transactions and bilateral payments arrangements may be undertaken;

    “U APTA” means the Preferential Trade Area unit of account established under Article 5 of this Protocol.

    ARTICLE 2

    Objectives

    1. The Member States undertake to promote trade in goods and services within the Preferential Trade Area in accordance with the provisions of this Protocol by:

    • (a) promoting the use of national currencies expressed in UAPTA in the settlement of eligible transactions between the Member States;

    • (b) providing machinery for the multilateral settlement of payments among the Member States;

    • (c) undertaking regular consultations among themselves on monetary and financial matters.

    2. For the purpose of this Protocol, the Member States agree to co-operate in specific fields of fiscal and monetary matters as may be agreed upon from time to time by the Council on the recommendation of the Committee.

    3. The Member States agree to promote monetary and financial co-operation among themselves and other African countries and for this purpose the Clearing House established under Article 4 of this Protocol shall, as appropriate, co-operate with similar institutions in Africa.

    ARTICLE 3

    Scope

    1. The provisions of this Protocol shall apply to all eligible transactions among the Member States.

    2. Notwithstanding the provisions of paragraph 1 of this Article the Council on the recommendation of the Committee may at any time for the purpose of promoting the objectives of this Protocol, extend the application of this Protocol to include other transactions.

    ARTICLE 4

    Establishment of the Clearing House

    1. There shall be established a Clearing House for the multilateral clearing and settlement of payments in respects of eligible transactions among the Member States at such time as the Committee may determine; Provided that the Committee may, as an interim measure, designate a monetary authority on such terms and conditions as the two parties may agree, to perform the duties of the Clearing House.

    The functions of the Clearing House shall be:

    • (a) to undertake clearing operations in respect of eligible transactions among the Member States;

    • (b) to regulate and oversee transfers of payments expressed in UAPTA and made in pursuance of eligible transactions;

    • (c) to facilitate the efficient and speedy transfers of payments between the Member States, the efficient use of credit facilities available through the Clearing House and the use of national currencies expressed in UAPTA for transactions made within the framework of the Preferential Trade Area;

    • (d) to undertake such other activities as the Council may on the recommendation of the Committee, determine.

    3. The Clearing House shall, subject to the Treaty, have such officers and staff who shall be subject to such administrative regulations as the Committee may determine.

    4. The Head Office of the Clearing House shall be established at a place to be determined by the Council.

    ARTICLE 5

    Unit of account and exchange rate guarantee

    1. The Committee, after consultation with the Council, shall establish a unit of account for the Preferential Trade Area referred to in this Protocol as “UAPTA” and determine its value.

    2. The Clearing House shall compute and determine, from time to time, the value of each national currency in terms of the UAPTA and inform the monetary authority of each Member State accordingly. For this purpose, each monetary authority shall communicate to the Clearing House, as may be requested, the official exchange rate of its currency against its intervention currency or reference currency, as the case may be.

    3. Any change in the official exchange rate of the currency of a Member State shall be notified immediately by its monetary authority to the Clearing House.

    4. The Member States shall guarantee the free convertibility of the amounts due from their monetary authorities in respect of eligible transactions into any agreed currency or currencies at the rate of exchange prevailing on the date of transaction as notified by the Clearing House.

    ARTICLE 6

    Clearing and settlement of transactions

    1. The Member States agree that the clearing of payments with respect to eligible transactions among themselves shall be undertaken on a multilateral basis as provided for in this Protocol; Provided that during a transitional period to be determined by the Council on the recommendation of the Committee which shall not exceed a period of five years from the definitive entry into force of the Treaty, such Member States which are unable upon the definitive entry into force of the Treaty to enter into multilateral clearing and payments arrangements with other Member States as provided for in this paragraph shall, subject to Article 14 of this Protocol, be at liberty to maintain bilateral clearing and payments arrangements with other Member States in respect of eligible transactions.

    2. The Member States agree that the Committee shall determine the maximum limits of net debit and net credit positions for each monetary authority on the basis of the volume of trade of each Member State within the Preferential Trade Area.

    3. Notwithstanding the provisions of paragraph 2 of this Article, a monetary authority may on its own initiative and after advising the Clearing House accordingly increase the amount of net credit position referred to in paragraph 2 of this Article.

    4. The net debit balance outstanding against a debtor monetary authority at the end of the transactions period shall be settled in convertible currency by the debtor monetary authority within a settlement period to be determined by the Committee.

    5. The Member States agree that where, contrary to the provisions of paragraph 4 of this Article, debit balances remain outstanding after the due date for settlement has been notified to a debtor monetary authority, such delay in settling the debts shall be deemed to be a breach of the provisions of this Article and shall as such attract a daily interest charge at progressive rates to be determined by the Committee.

    6. A monetary authority which, contrary to the provisions of paragraph 5 of this Article, fails to settle the outstanding debit balances due either at the end of the payment period or the settlement period in accordance with the rules and regulations established by the Committee shall be deemed to be in violation of the provisions of this Article and shall be subject to such sanctions as shall be contained in the same rules and regulations.

    ARTICLE 7

    Payments restrictions

    1. The Member States undertake not to impose any restrictions on the making of bonafide payments and transfers relating to concluded eligible transactions among themselves.

    2. The Member States agree to communicate to each other through the Clearing House the exchange control regulations applied by them, and to include in such regulations provisions to facilitate the smooth functioning of the Clearing House.

    3. The Member States agree to co-operate in measures designed to make the exchange control regulations of each other effective; Provided that such measures and regulations are consistent with the provisions of the Treaty.

    ARTICLE 8

    Co-operation with other clearing and payments institutions or arrangements

    1. The Clearing House may, subject to the approval of the Committee, negotiate and conclude agreements on special clearing arrangements or monetary co-operation with monetary authorities or payments unions of third world countries; Provided that such agreements do not frustrate the attainment of the objectives of this Protocol or affect the character of the relationship established between the Member States by the Treaty.

    2. Nothing contained in this Protocol shall prevent any Member State from entering into or maintaining bilateral payments or clearing arrangements with any third country; Provided that such arrangements do not conflict with or frustrate the attainment of the objectives of this Protocol.

    ARTICLE 9

    Relations with the Eastern and Southern African Subregional Committee of the Association of African Central Banks

    The Member States agree that so as to realize the objectives of this Protocol, the Committee and the Clearing House shall co-operate with the Eastern and Southern African Subregional Committee of the Association of African Central Banks.

    ARTICLE 10

    Relations with Member States

    1. The Member States undertake to authorize their monetary authorities to act as agents for the Clearing House in their respective territories and for this purpose the monetary authorities shall deal with the Clearing House and with each other in accordance with the procedures provided for in the rules and regulations of the Clearing House that may be made by the Committee.

    2. The regulations of each Member State which govern the method of operation between a monetary authority and the bank designated by it for the purpose of the Clearing House, shall be communicated to each monetary authority by the Member States through the Clearing House.

    3. The Member States agree for the purpose of this Protocol, that they or their monetary authorities shall co-operate in furnishing the Clearing House with such information as may be required by the Clearing House for the effective performance of its functions.

    ARTICLE 11

    Monetary and financial co-operation

    The Committee shall keep the provisions of this Protocol under constant review with a view to recommending to the Council the progressive establishment of a payments union among the Member States which would also provide machinery for the provision of assistance to Member States in difficulties as regards their balance of payments as a result of the implementation of the Treaty.

    ARTICLE 12

    The Committee

    Subject to the provisions of this Protocol and the Treaty the Committee shall, in particular [,] perform functions relating to the achievement of the objectives of this Protocol, make the rules and regulations governing the effective establishment and operations of the Clearing House, determine the procedures for clearing and payments operations and supervise and keep under constant review the activities and operations of the Clearing House with a view to the progressive establishment of a payment [s] union among the Member States.

    ARTICLE 13

    Financing the Clearing House

    1. The Member States agree that the cost of operating the Clearing House shall be borne by their monetary authorities in accordance with a formula to be determined by the Council on the recommendation of the Committee.

    2. Any revenue that may be generated by the Clearing House in the course of its operations shall be used for the purpose of offsetting its operating costs with a view to making the Clearing House self-financing.

    ARTICLE 14

    Transitional arrangements

    1. Upon the expiry of the transitional period referred to in paragraph 1 of Article 6 of this Protocol, all the bilateral clearing or payments arrangements that may be existing between the Member States in respect of eligible transactions shall cease to have effect.

    2. During the transitional period referred to in paragraph 1 of Article 6 of this Protocol, the Committee shall undertake a study for consideration by the Council on the mode of operations to be adopted at the expiry of the said transitional period by all the Member States for the undertaking on a multilateral basis of the clearing of payments with respect to eligible transactions among themselves.

    Occasional Papers of the International Monetary Fund

    1. International Capital Markets: Recent Developments and Short-Term Prospects, by a Staff Team Headed by R.C. Williams, Exchange and Trade Relations Department. 1980.

    2. Economic Stabilization and Growth in Portugal, by Hans O. Schmitt. 1981.

    3. External Indebtedness of Developing Countries, by a Staff Team Headed by Bahram Nowzad and Richard C. Williams. 1981.

    4. World Economic Outlook: A Survey by the Staff of the International Monetary Fund. 1981.

    5. Trade Policy Developments in Industrial Countries, by S.J. Anjaria, Z. Iqbal, L.L. Perez, and W.S. Tseng. 1981.

    6. The Multilateral System of Payments: Keynes, Convertibility, and the International Monetary Fund’s Articles of Agreement, by Joseph Gold. 1981.

    7. International Capital Markets: Recent Developments and Short-Term Prospects, 1981, by a Staff Team Headed by Richard C. Williams, with G.G. Johnson. 1981.

    8. Taxation in Sub-Saharan Africa. Part I: Tax Policy and Administration in Sub-Saharan Africa, by Carlos A. Aguirre, Peter S. Griffith, and M. Zuhtu Yucelik. Part II: A Statistical Evaluation of Taxation in Sub-Saharan Africa, by Vito Tanzi. 1981.

    9. World Economic Outlook: A Survey by the Staff of the International Monetary Fund. 1982.

    10. International Comparisons of Government Expenditure, by Alan A. Tait and Peter S. Heller. 1982.

    11. Payments Arrangements and the Expansion of Trade in Eastern and Southern Africa, by Shailendra J. Anjaria, Sena Eken, and John F. Laker. 1982.

    12. Effects of Slowdown in Industrial Countries on Growth in Non-Oil Developing Countries, by Morris Goldstein and Mohsin S. Khan. 1982.

    13. Currency Convertibility in the Economic Community of West African States, by John B. Mc Lenaghan, Saleh M. Nsouli, and Klaus-Walter Riechel. 1982.

    14. International Capital Markets: Developments and Prospects, 1982, by a Staff Team Headed by Richard C. Williams, with G.G. Johnson. 1982.

    International Monetary Fund, Washington, D.C. 20431, U.S.A.

    Telephone number: 202 477 2945

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    Selected Bibliography on Regional Payments and Clearing Arrangements

      Balassa, Bela, and ArdyStoutjesdijk,Economic Integration among Developing Countries,Journal of Common Market Studies, Vol. 14(September1975). pp. 3755.

      Cline, William R.,Benefits and Costs of Economic Integration in Central America,” inEconomic Integration in Central America, ed. by WilliamR. Cline and EnriqueDelgado(Brookings Institution, 1978). pp. 59121.

      Economic Commission for Africa, “Trade Promotion Amongst the Countries of Eastern and Southern Africa,ECA/MULPOC/Lusaka/53, Part I (unpublished, Lusaka, September27,1977).

      Economic Community of West African States, “Monetary and Financial Obstacles to Trade Expansion and Possible Improvements in Payments Relations,ECOWAS Trade, Customs and Monetary Study Project, StudyNo. 4(unpublished, March 15, 1979).

      Hazlewood, Arthur,The End of the East African Community: What are the Lessons for Regional Integration Schemes?Journal of Common Market Studies, Vol. 18(September1979). pp. 4058.

      Kahnert, F., and others,Economic Integration Among Developing Countries(Organization for Economic Cooperation and Development, Development Center, 1969).

      Keesing, F.A.G., and P.J.Brand,Possible Role of a Clearing House in the Latin American Regional Market,IMF, Staff Papers, Vol. 10(November1963). pp. 397460.

      Nowzad, Bahram, and JeanMessinesi,Regional Payments Arrangements Among Developing Countries(unpublished, International Monetary Fund, August10,1971).

      Olofin, Sam,ECOWAS and the Lomé Convention: An Experiment in Complementary or Conflicting Customs Union Arrangements?Journal of Common Market Studies, Vol. 16(September1977). pp. 5372.

      Peñaherra, Germánico S.,Viable Integration and the Economic Cooperation Problems of the Developing World(United Nations, Economic and Social Council, Committee for Development Planning, January 19, 1978).

      Sidjanski, Dusan,Current Problems of Economic Integration: The Role of Institutions in Regional Integration Among Developing Countries(United Nations Conference on Trade and Development, 1974).

      United Nations Conference on Trade and Development, Economic Co-operation Among Developing Countries: Supplementary Material and Considerations Relating to Priority Areas for Action(TD/244/ Supp. 1) Item 18—Supporting Paper, UNCTAD V, Manila(May1979).

      United Nations Conference on Trade and Development, Payments Arrangements among the Developing Countries for Trade Expansion: Report of the Group of Experts(Geneva, 1966).

      United Nations Conference on Trade and Development, “Second Meeting of the Co-ordination Committee on Multilateral Payments Arrangements and Monetary Co-operation Among Developing Countries: Progress Report on Recent Developments in the Field of Monetary and Payments Arrangements(unpublished, Division for Economic Cooperation Among Developing Countries, Geneva, September1979).

      United Nations Conference on Trade and Development, Trade Expansion and Economic Integration Among Developing Countries: Report by the Secretariat of UNCTAD(United Nations, 1967).

      Vaitsos, Constantine V.,Crisis in Regional Economic Cooperation (Integration) among Developing Countries: A Survey,World Development, Vol. 6(June1978). pp. 71969.

    The original 17 member states participating in the PTA negotiations were: Angola, Botswana, the Comoros, Djibouti, Ethiopia, Kenya, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Seychelles, Somalia, Swaziland, Tanzania, Uganda, and Zambia. Zimbabwe joined the PTA negotiations in June 1980, just prior to the completion of our original study.

    The principal changes consisted of updating the descriptions of exchange and trade systems in the light of recent information and including selected indicators of Zimbabwe’s external trade.

    Questionnaire responses were not received from the following countries in time for inclusion in this report: Angola, Lesotho, Madagascar, Mauritius, Mozambique, Somalia, Swaziland, and Uganda.

    Of the 18 countries in the region, the nine countries that had not signed the PTA Treaty at the December 1981 meeting of heads of state in Lusaka were: Angola, Botswana, Lesotho, Madagascar, Mozambique, Seychelles, Swaziland, Tanzania, and Zimbabwe.

    Supporting tables on regional trade may be found in Section III and Appendix I. A summary description of the trade and payments systems of the countries in the region is given in Appendix II. Appendix III summarizes the key features of some other clearing arrangements among developing countries. Appendix IV reproduces the text of the Protocol on Clearing and Payments Arrangements, as adopted in December 1981.

    Exports are measured on an FOB basis, imports on a CIF basis.

    Because time series data on Zimbabwe’s direction of trade begin only in August 1980, the evolution of its participation in intraregional trade is difficult to assess.

    Based on information contained in International Monetary Fund, Direction of Trade Statistics Yearbook, 1980.

    Data on the direction and commodity composition of Kenya’s trade are contained in Tables 14, 15, and 16 in the Appendix.

    Throughout the report, the terms “Africa” and “other Africa” exclude South Africa, Egypt, Algeria, Libya, and Nigeria.

    Data on the direction and commodity composition of Tanzania’s trade are contained in Tables 17, 18, and 19 in the Appendix.

    However, this proportion may include goods transshipped through regional ports but originating elsewhere.

    Appendix II summarizes the key features of the trade and payments systems in the region.

    Zimbabwe applied for membership in the Fund on May 6, 1980. The resolution on membership for Zimbabwe was approved by the Board of Governors on July 28, 1980, and Zimbabwe became a member on September 29, 1980.

    The metical replaced the Mozambique escudo as the currency of Mozambique on June 18, 1980.

    In this context, it is interesting to note that the General Agreement on Tariffs and Trade (GATT) contains provisions specially designed to avoid situations whereby exchange actions by contracting parties that are also Fund members violate their trade commitments under the GATT (see GATT, Article XV).

    Benin, Cameroon, the Central African Republic, Chad, the Congo, Gabon, Ivory Coast, Mali, Niger, Senegal, Togo, and Upper Volta.

    Regulations either place absolute limits on the commercial bank’s foreign exchange position or prohibit the commercial bank from maintaining a spot foreign exchange position in excess of its short-term commitments.

    Based on information supplied by national authorities.

    These reciprocal accounts generally operate in the following manner: Central Bank Y maintains on its books an external account denominated in Y’s currency in the name of Central Bank X, and Central Bank X similarly maintains an external account on its books denominated in X’s currency in the name of Central Bank Y. Initially, each of these accounts is usually funded by payment of U.S. dollars to the credit of the receiving Bank’s account with the Federal Reserve Bank of New York or by reciprocal credit of each other’s currency.

    Each of these current accounts is considered a nonresident external account for the purpose of exchange control. Hence, the balance may be drawn down to effect payments to residents of the country in which the account is held in settlement for goods and services imported, to transfer funds to similar nonresident accounts held by commercial banks, or to make direct payments for government expenses. Most reciprocal accounts have specified minimum and / or maximum balances. In theory, if the balance exceeds the maximum agreed, the excess balance will be adjusted by the sale of dollars to the creditor. Each country has the right to call for settlement of any creditor balance in excess of the minimum limit in convertible currencies at any time. The staff team could not establish whether, in practice, any such requests are made. It understood that balances are usually converted only when they exceed the maximum limits. If the balance of any account is insufficient to meet anticipated payments, the central bank maintaining the account advises the central bank in whose name the account is kept, and the latter replenishes the account by payment of U.S. dollars to the credit of the former’s account with banks abroad.

    Except in Kenya, Mauritius, Uganda, and Zimbabwe.

    The exceptions are Malawi, where payments against sight letters of credit and sight bills of exchange are not permitted, and Uganda, where all import payments are made under letters of credit.

    When there are arrears on import payments, the concept of transit time loses its relevance, as it is the nonavailability of foreign exchange, rather than the technical efficiency of the payments process, that determines the delay in effecting settlements.

    These calculations are based on annual data. The actual settlements during a year would equal the sum of the settlements made in each settlement period. The amount to be settled in one year may therefore differ, depending on the distribution of receipts and payments in different settlement periods.

    The principal features of several existing clearing arrangements are summarized in Appendix III.

    For example, Tables 14, 17, and 20 in the Appendix indicate the importance of trade with Burundi and Rwanda for Kenya, Tanzania, and Uganda. In 1979, the PTA region (mostly Kenya and Tanzania) absorbed 4 per cent of the combined exports of Burundi and Rwanda and supplied 18 per cent of their imports (see Table 27 in the Appendix).

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