South Africa has significant possibilities to grow its ship repair and boat building industry, with a large market in need of such services and a base from which the South African industry can emerge. These industries are labour intensive and have linkages to a range of other sectors.  There are, however, a number of constraints that hold back the growth of the industry. Sheila Farrell will present the outcomes of a TIPS research project, which looked at the challenges facing the boat building and ship repair industry and the opportunities for the industry.

About the speaker

Sheila Farrell is an experienced international ports consultant who has undertaken around 120 port consulting assignments in more than 50 countries, most of them concerned with port economics and finance, tariff setting, port reform and privatisation, and regulation. Several of the projects have been linked to the development of port-related industries. She has over 40 years of experience of port and shipping consultancy. As well as working as a port consultant, she is also a Visiting Professor in Port Operations Research at Imperial College London. She is a member of an EU-funded multi-national group of academics undertaking a four year research programme into improving the effectiveness of public private partnerships (PPPs) in transport, and has written two books on the subject of financing transport infrastructure. She also writes and teaches on economic and financial issues relating to ports.

Introduction to Computable General Equilibrium (CGE) Modelling  

Workshop, 27-31 October 2014, Pretoria

CGE modelling is one of a number of approaches to economy-wide analysis that have become accessible and practicable as data and computer based techniques have developed. An increasing number of economists use this framework to analyse real world issues that were previously approached through less comprehensive partial equilibrium methods. As part of their commitment to ensuring that Southern Africa benefits from these development, TIPS has (co)presented a series of related short workshops over the past thirteen years. The current workshop is part of this on-going programme.

The workshop is designed specifically for people who need to use the results of economy-wide models to inform their analysis of real world issues. It will integrate theory, real world data, hands-on computer work and real-world applications. In particular, participants will be:

• Introduced to the micro, macro and trade theories that underlie typical CGE models;
• Provided with an overview and practical examples of Social Accounting Matrices (SAMs) and of parameter and elasticity estimation methods which typically provide the data on which CGEs are built;
• Taken through various applications with special emphasis on the economic interpretation of results;
• Exposed to issues involved in using models for specific applications such as the analysis of trade, public finance, regulation and environmental economics.

The models have been set-up to run through an Excel interface, with the specialised modelling language (GAMS) running in the background. This is designed to keep the focus on the economics rather than the technicalities of modelling. The applications use models developed by the International Food Policy Research Institute (IFPRI) and are adapted by the workshop instructors to suit the Excel interface for a range of southern African economies. Participants will apply what they learn to a group mini-project which will be presented at the end of the workshop.

The workshop is targeted at those who need to understand the potential and limitations of the use of these approaches without themselves becoming modellers. As such it should appeal to policy makers and analysts in both the public and the private sectors, to students and to academics. The workshop will also provide a foundation for those who wish to become modellers by taking future workshops on actual modelling techniques.

No previous exposure to CGE modelling is required, although it will be an advantage if participants be familiar with SAMs and have a very good understanding of Excel.

Workshop leaders are Dirk Ernst van Seventer and Rob Davies.

Workshop fees (which includes teas, coffees and lunches): R12 000 (excl VAT) for South African resident participants, R12 000 for African participants and those from other developing country and R17 500 for other participants.

Registration closing date is Friday 15 August 2014. Seats will be reserved until the payment closing date of 19 September 2014.The offering of the workshop is dependent on attracting a minimum number of 15 students by the time of the payment closing date while the maximum number of students is 20. Note that TIPS will not make refunds after the payment due date unless the workshop is cancelled. TIPS' invoice documentation (tax clearance, bank clearance, etc) will only be sent on request by registered post. It is therefore important to make sure that TIPS is on your organisation's list of preferred suppliers and to factor-in sufficient time for these processes.

If you are interested in attending this workshop please complete the application form below and send to:

Dirk Ernst van Seventer (denves@xtra.co.nz)

or

Rob Davies (robdavieszim@gmail.com)

The aim of this workshop is to build research and policy capabilities in the South African government to better understand the dynamics of value chains and in so doing, to contribute to employment growth and productivity enhancement through upgrading.

The workshop will address the following issues:

• What are value chains? What differentiates them from simple input/output economic linkages?
• How are value chains governed, and by whom, and how does this affect the capacity to upgrade?
• What role do standards play in value chains?
• Given intense competition, how do value chains upgrade and in what directions?
• How does an understanding of value chain dynamics help firms to position themselves sustainably in various profitable end markets?
• How can value chains be aligned to support and promote policy design and implementation?

The workshop will focus on four value chains which are representative of other sectors:

• Capital equipment into the mining sector (also relevant to oil and gas and related sectors).
• Automobile assembly and components (also relevant to other assembly and metalworking
• industries).
• Clothing and textiles (also relevant to footwear, furniture and other consumer products).
• Agro-processing (relevant to a range of other soft commodity based sectors).

South Africa is in a unique position to benefit from the transition to a greener development path, particularly owing to the country's abundance in renewable resources (solar and wind predominantly). Accordingly, the country has demonstrated an increasing commitment to sustainable development, notably in the field of renewable energy.

Recognising the importance of effective economic regulation for the sustainable growth and development of South Africa, the Economic Development Department (EDD) commissioned the Centre for Competition, Regulation and Economic Development (CCRED) at the University of Johannesburg (UJ) to undertake a Regulatory Entities' Capacity Building Project. The project involves a review of the orientation and performance of various economic regulators, the identification of the constraints impacting their performance and the design and implementation of a knowledge capacity development programme in response to identified needs.

Renewable energy is one of the key sectors identified for the project. This seminar aims to share the findings of the review carried out by TIPS and stimulate dialogue and discussions on the renewable energy regulatory framework in South Africa. Discussions will notably explore issues related to the role of renewable energy in the Integrated Resource Plan and the Integrated Energy Plan, the key aspects for designing a successful renewable energy procurement programme and the experience of independent power producers in the South African context.

Introduction to Economy-Wide Policy Impact Analysis  

Workshop, 24-28 March 2014, Pretoria

Most economics curricula deal with macroeconomic tools for studying the economy as a whole and microeconomic tools for studying the behaviour of individual agents or markets. However, practical public and private sector economic analysts often need to focus on the industry/sector or meso-level of economic activity. Key sector analysis, sectoral impact studies, partial and general equilibrium trade and industry analysis are frequently conducted in both the public and the private sector.

Input-Output (IO), Supply-Use Table (SUT) and Social Accounting Matrix (SAM) analyses are often used as tools for such meso-level economic enquiry. Researchers use these tools to analyse the impact of policy-related and other changes on the economy. They can also be extended to address broader concerns, such as the impact of policy on the environment or on energy requirements. Economic modelling techniques that capture economy-wide impacts of policy changes are increasingly being used in academic, consulting, research and policy environments in Southern Africa and elsewhere.

To cater for the rising demand for these techniques, TIPS started offering an introductory workshop in economy-wide policy impact analysis in 2001. We are pleased to announce that the eleventh offering of this popular workshop will be held in Pretoria from 24-28 March, 2014.

The experience TIPS has had presenting these workshops for more than a decade has shown how important it is to understand not only the techniques of economy-wide analysis, but also the nature of the inter-industry data used to apply them to actual economies. The Workshop therefore begins with an examination of these basic data and how they can be integrated consistently with other data to given a picture of the whole economy. It then develops more and more sophisticated techniques that can be applied to a wide range of issues. These issues will include employment; energy; regional interactions; cost push price effects; the consequences of bottlenecks; income distribution; and how the structure of the economy impacts on these issues.

The workshop is presented by academics and experts in the field of economy-wide policy modelling. Lectures introduce the theory and provide insight into the scope of research possible using a particular modelling technique. Each lecture is followed by hands-on exercises applying the theory or model to relevant policy issues using economic data from South Africa and other Southern African countries. Apart from imparting the practical skills needed to apply the theory, these exercises familiarise participants with key features of economies studied. Participants also present brief group projects using the modelling tools learnt during the workshop. The models are all applied using Microsoft Excel.

By the end of the workshop, participants will be equipped with sufficient theoretical and practical skills to engage in linear economy-wide impact analysis. The workshop also provides a useful basis for process managers who have to digest such analysis, even though they may not undertake it themselves while it offers a solid grounding for those who wish to enter into the field of computable general equilibrium (CGE) modelling. For these participants, a CGE modelling workshop will be offered at a later stage.

Workshop fees (including light lunch): R11 500 (excluding VAT) and US$1 500 for participants from Developed Countries. To ensure that the workshop is pitched at the correct level, we invite interested participants to complete the attached form and return it to denves@xtra.co.nz.

The maximum number of students is 20. Note that TIPS will not make refunds after the payment due date unless the workshop is cancelled. TIPS' invoice documentation (tax clearance, bank clearance, etc) will only be sent on request by registered post. It is therefore important to make sure that TIPS is on your organisation's list of preferred suppliers and to factor-in sufficient time for these processes.

Suggested Reading List

1.   Miller, R. and Blair, P. (2009) Input-output analysis: Foundations and extensions, Cambridge University Press, Second Edition, http://www.cambridge.org/catalogue/catalogue.asp?isbn=9780521517133

Chapter 2: Foundations of Input Output Analysis

Chapter 4: Organisation of Basic Data for Input-Output Models

Chapter 5: The Commodity –by-Industry Approach in Input-Output Models

Chapter 6: Multipliers in the Input-Output Model

Chapter 9: Energy Input-Output Analysis

Chapter 10: Environmental Input-Output Analysis

Chapter 11: Social Accounting Matrices

Chapter 13, Section 2: Mixed Models

2.   Round, J.I. (2003) Social Accounting Matrices and SAM-based Multiplier Analysis, pp. 301-324 in eds. François Bourguignon and Luiz A. Pereira da Silva. The Impact of Economic Policies on Poverty and Income Distribution: Evaluation echniques and Tools. World Bank and Oxford University Press, Washington, D.C. and New York,

http://www.un.org/esa/policy/sanjose_training_mdgs/round_2003_sams_chapter14.pdf.

3.   United Nations. (1999) Handbook of Input-Output Table Compilation and Analysis, Studies in Methods, Handbook of National Accounting, Series F, No 74, Department of Economic and Social Affairs, Statistics Division,

http://unstats.un.org/unsd/publication/SeriesF/SeriesF_74E.pdf.

     Chapter II: The System of National Accounts (SNA) Framework of Supply and Use Tables (SUT): Overview

4.   Eurostat. (2008) Eurostat Manual of Supply, Use and Input-Output Tables

 http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-RA-07-013/EN/KS-RA-07-013-EN.PDF

Section 1: Supply and Use Tables as an Integral Part of the Compilation of National Accounts

Section 2: The Supply Table

Section 3: The Use Table

5.   IFPRI, (2010) Social Accounting Matrices and Multiplier Analysis, an Introduction with Exercises, IFPRI Food Security in Practice series, http://www.ifpri.org/publication/social-accounting-matrices-and-multiplier-analysis.

About the speaker

Dr Babatunde Omilola is the Economic Advisor with the UNDP in South Africa. Previously, he served as the UNDP Regional Poverty Reduction Practice Leader for Eastern and Southern Africa. Prior to joining UNDP, he worked with the International Food Policy Research Institute and the Food and Agriculture Organization of the United Nations. He has served as an Economic Advisor to many African governments and institutions. He holds both MPhil and DPhil degrees with specialty in Development Economics from the Institute of Development Studies, University of Sussex.

Review of the regulation in the ports, electricity supply industry and renewable industry –

Project: Regulatory Entities Capacity Building: Review of Regulators Orientation and Performance

Client: Centre for Competition, Regulation and Economic Development, University of Johannesburg

Duration: 2013-2014 - to be completed by March 2014

Effective performance by economic regulators is important for growth and development. In recognition of the importance of their role, the Economic Development Department has commissioned the Centre for Competition, Regulation and Economic Development to undertake a research and capacity building project for economic regulators in South Africa. The Regulatory Entities Capacity Building Project involves a review of the performance of the economic regulators as well as identifying the constraints impacting their performance. The University of Johannesburg aims to use the information from the reviews to create customised training course in regulatory economics for both employees of the economic regulators in South Africa and for students.

TIPS is undertaking reviews of the following sectors as part of the project:

• Ports
• Electricity sector
• Renewable energy sector 

The emphasis of these reviews on understanding the issues at a practical level, looking at how the regulator has been able to address the challenges it has faced, and how it can be assisted to improve, including from learning from other regulators.

Review of Regulation in the Ports Section

Review of Regulation in the Electricity Supply Industry

Review of Regulation in Renewable Energy 

Ports

The South African Ports Regulator, established in terms of the National Ports Act 12 of 2005 is a relatively new institution. Time taken to establish the institution has meant it has only recently begun to be effective. Over the past three years it has flexed its regulatory muscle with significant revisions to the tariff book and pricing proposed by the National Ports Authority. Studies have been conducted on the tariff adjustments and the stakeholder submissions to the Ports Regulator. However, limited work has been done on the effectiveness of the regulator.

TIPS’s assessment the regulation of ports in South Africa includes:

• Reviewing the role of the regulator, linking this to the broad policy framework and economic development priorities of the government.
• Assessing the work of the regulator, including through looking at case studies of ports regulation in other jurisdictions.
• Considering the role of the regulator in contributing to the efficient and cost-effective operation of the ports, including the impact of the ports on the broader economy.
• Considering the role of ports in attracting investment and supporting the growth of service sectors related to port operations such as ship repair, boat building and servicing the offshore oil and gas sector.
• Considering the regulator looking at more than pricing, and going broader into the terms of access and quality of service of South African ports.
• Looking at international experiences in Australia, India and South America.

Resources

Review of Regulation in the Ports Section

Electricity Sector

The National Energy Regulator of South Africa (NERSA) is the regulatory authority established in terms of the National Energy Regulator Act, 2004. 

The Regulatory Entities Capacity Building project will provide a comprehensive review of the regulators' role, linked with the policy framework and powers.  

The review includes:

• Examining the linkages with economic development in a number of areas including links with industrial policy.
• Assessing the key issues at each level of the Electricity Supply Industry value chain.
• Examining electricity pricing and the process of setting prices by NERSA.
• Evaluating the regulatory and institutional framework.
• Looking at the role of Independent Power Producers and municipalities.
• Undertaking case studies that highlight how actions by Eskom and the regulator have implications for industrial policy.
• Identifying specific areas of capacity building to inform short learning programmes (SLPs).

Resources

Review of Regulation in the Electricity Supply Industry

Renewable Energy Sector

The Renewable Energy Independent Power Producer Programme (REIPPP) was established to encourage new entry into the market.

The Regulatory Entities Capacity Building project review of the renewable energy sector includes:

• Assessing the problems and difficulties in implementing South Africa's first option for the expansion of renewable energy through feed-in tariffs (REFITs), initiated by the Department of Energy, and its abandonment by the government.
• Assessing, with the assistance of the National Treasury's Public-Private Partnership Unit, the motivations for opting to pursue competitive bids tenders through the REIPPP instead of the REFIT system.
• Assessing the outcomes of the competitive bidding process as a regulatory mechanism with reference to its impact on market entry, expansion of capacity, investment, pricing and linkages to industrial policy and job creation.
• Explore NESRA's role in this process.

Resources

Review of Regulation in Renewable Energy 

There is growing concern that measures already in place or potentially adopted by developed countries to combat climate change could be trade distortionary, introduce new forms of 'green protectionism' and/or be discriminatory. Such policy and regulatory measures may range from emissions trading schemes (e.g. the EU's deferred airlines tax) to border tax adjustments that price carbon, subsidies, new public and/or private standards (including carbon labelling schemes), taxes on maritime transportation and, among other non-tariff barriers to trade, could entail the introduction of specific legislation.

Discussion bocussed on the following three questions from an industry/sector perspective:

• Using specific examples, is your industry/sector vulnerable to existing/new climate- or environment-related regulations/measures in international markets?
• Are any existing regulations/measures already impacting on your competitiveness, or would the latter be affected if these were to be introduced – and if so, how?
• What measures could your industry or sector take to reduce its carbon footprint?

For a summary of the roundtable discussion, see attachment below.

Project: Benefits of AGOA to South Africa

Client: Department of Trade and Industry (the dti)

Duration: 2012-2013

TIPS assisted the Department of Trade and Industry (the dti) to carry out a study into the benefits that have accrued to South Africa as a result of the African Growth and Opportunity Act (AGOA). The research is intended to inform the South African government’s position on AGOA as the 13-year old piece of US legislation enters the last two years of its existing phase. Initially set to expire in 2008, AGOA was extended to 2015 allowing Sub-Saharan African beneficiary countries, including South Africa, to continue to enjoy preferential access to the United States market. US President Barack Obama also recently pledged to revamp AGOA before its September 2015 expiry.

The research, which confirmed that AGOA has the potential to support export-driven jobs in South Africa, fills gaps in AGOA’s impact on specific South African commodity value chains: the agro-processing, textiles and apparel, and automotive sectors.

A joint workshop between TIPS and The South African Institute of International Affairs (SAIIA) on AGOA took place on 17 September, 2013. This was timed to coincide with the lobbying visit by a South African government and business delegation to Washington led by Trade and Industry Minister Rob Davies. The objective of the session was to present the TIPS research and to encourage debate among stakeholders on the future of AGOA. The event benefited from participation from the Department of Trade and Industry, the US Embassy in Pretoria and a range of business representatives.

For the workshop outcomes, presentations and articles on AGOA click here.

Summary articles – extracted from the research: 

• Overview

• The strategic automotive industry

• The labour-intensive citrus industry

The African Growth and Opportunity Act (AGOA) is a unilateral trade policy concession governing United States and sub-Saharan Africa trade and investment relations. AGOA enhances US market access for 40 Sub-Saharan African (SSA) countries, including South Africa. Signed into law by the US Congress in May 2000, AGOA has been renewed several times and is now set to expire in September 2015.

With the review of AGOA currently underway, this seminar, will bring together the region's foremost trade think tanks (i.e. South African Institute of International Affairs (SAIIA), TIPS and trade law centre (Tralac); industry leaders and key government officials, to discuss and engage the impact of AGOA and what this unilateral dispensation means for South Africa.  Specifically, the session will provide an overview of AGOA's policy successes and challenges and engage participants on AGOA's impact on South Africa's competitiveness, with specific focus on the citrus and automotive sectors.