Search News Results
tralac Daily News
R78.9m disbursed to citrus growers under the economic transformation programme (Engineering News)
Over the past three years, more than R161.3-million in funding has been approved under the Economic Transformation of Black Citrus Growers (ETBCG) Programme and R78.9-million disbursed to support black grower citrus operations, creating 78 permanent and 625 seasonal jobs in total, as well as enabling 208 ha of new trees to be planted.
Industry organisation the Citrus Growers Association (CGA) in 2019 launched the R307-million ETBCG Programme in partnership with the Jobs Fund, the Land Bank, the Department of Agriculture and Rural Development, AgriSETA, the LIMA Rural Development Foundation and FNB, said CGA CEO Justin Chadwick.
While the ETBCG Programme was launched in 2020, the Covid-19 pandemic impacted its roll-out, as well as a number of new challenges faced by the local citrus industry over the past three years, which has threatened the sustainability and profitability of farming operations. These include a major hike in farming input costs and freight rates as well as loadshedding and operational issues at ports.
Additionally, the local industry has predicted that citrus exports could grow to 260-million 15 kg cartons a year by 2032, if all role-players work together. With transformation of the industry a key priority over the next ten years, a target for black citrus growers’ contribution towards the overall 260-million cartons a year has been set at 50-million cartons a year.
inDrive launches name-your-price freight service in South Africa (Engineering News)
California-based mobility and urban services platform inDrive has launched a name-your-price freight service in South Africa, targeting small businesses and individuals. InDrive is already active as a set-your-price e-hailing service in the country.
“The [freight] service aims to deliver reliability and efficiency on last-mile, in-city routes, with same-day delivery available on demand,” says the company. inDrive.Freight’s operations have now been launched in Cape Town and Johannesburg, with a programme to expand the offering to more cities by the end of the year. inDrive.Freight promises the delivery of small parcels or large shipments of non-liquid freight, varying from 20 kg to 20 000 kg.
“At inDrive, we understand the unique logistics challenges that small businesses and individuals face,” says inDrive business representative Southern Africa Vincent Lilane. “We have introduced inDrive.Freight in South Africa to address these challenges. It is a comprehensive solution offering competitive pricing, timely delivery, and the flexibility and scalability needed in today’s fast-paced world.”
DTIC aims to improve awareness on AfCFTA through outreach programme (Engineering News)
The Department of Trade, Industry and Competition (DTIC) has embarked on provincial outreach and awareness workshops in collaboration with provincial governments, wherein it hopes to have engaged all provinces on the African Continental Free Trade Area (AfCFTA) by the end of July.
The DTIC is also developing an AfCFTA implementation plan, including the establishment of a national implementation committee and a targeted strategy for the implementation of the AfCFTA.
“The AfCFTA brings us a step closer to realising the historic vision of an integrated market in Africa. For sustainability and legitimacy, Africa’s integration must deliver shared benefits,” DTIC director-general Malebo Mabitje-Thompson said during a webinar on the operationalisation of the AfCFTA on July 25. She added that trade integration and liberalisation should be accompanied by programmes to support African industrialisation and regional value chains. “Coordinated efforts and inclusion of AfCFTA across all of government and relevant stakeholders to ensure the benefit of AfCFTA opportunities to all of South Africa’s private sector is imperative,” Mabitje-Thompson said.
She explained that, for the successful implementation of the AfCFTA, a doubling of road freight will be necessary, increasing from 201-million tonnes to 403-million tonnes. The agreement also calls for the provision of about 1.8-million trucks for bulk cargo and 248 000 trucks for container cargo by 2030. The estimated investment required for the road freight aspect amounts to about $345-billion.
SA views BRICS as a key strategic partner – Minister Ntshavheni (SAnews)
South Africa has assured its BRICS partners that it continues to view the bloc as a crucial strategic partnership through which a just, peaceful and more equitable world order can be pursued and realised.
South Africa, led by Minister in the Presidency responsible for State Security Agency, Khumbudzo Ntshavheni, today hosted a BRICS National Security Advisors meeting in Sandton, Johannesburg. Delivering the opening remarks, Minister Ntshavheni told her BRICS counterparts that state and non-state actors are hard at work in certain parts of the globe using various role players to promote their agenda whilst undermining countries’ national security.
“As an African country, we firmly believe in the need to promote peace and sustainable development as well as deepened political, economic and social relations. South Africa remains deeply committed to multilateral diplomacy, in principle and in our demonstrable actions - particularly through our close collaboration in the bloc,” the Minister said.
Foreign investors withdraw $345m from faltering Kenya economy (The East African)
Kenya lost over $345 million worth of foreign direct investment (FDI) and other investment inflows in three months as economic growth plummeted over increased political noise and unfriendly policies. The latest Central Bank of Kenya (CBK) data shows that the country’s net financial account inflows dropped by 34 percent ($345 million) to $660 million in the first quarter of this year, compared with net inflows of $1 billion in the same period in 2022. Economic growth fell from 6.2 percent to 5.3 percent, according to the Kenya National Bureau of Statistics.
Foreign investors, on the other hand, have voiced concerns over a dollar shortage in the country, difficulties in accessing short-term loans to shore up their working capitals, restrictions on capital repatriation and the high cost of doing business.
China envoy Wang Yi calls Kenya economic ties a ‘win-win’ (The East African)
China’s top diplomat Wang Yi during a visit to Kenya on Saturday praised the two countries’ economic partnership as a “win-win”, according to a statement from the Chinese authorities. Kenya and China have “become good friends with mutual trust in politics and good partners with win-win economic cooperation”, according to the statement from the Chinese embassy in Kenya.
With the most dynamic economy in East Africa, Kenya is considered by the international community as a stable democracy in a troubled region. China is the second-largest donor to Kenya after the World Bank.
China has also loaned $5 billion (4.7 billion euros) toward the most expensive infrastructure project in the country since its independence in 1963: a train line that since 2017 has connected the port city Mombasa with Naivasha, in the Rift Valley, via the capital Nairobi. ”The landmark project of the Mombasa-Nairobi Railway has completely changed the face of Kenya,” the embassy’s statement said.
Cameroon’s customs revenues went up 19.3%, to CFAF486.4bln, in H1-2023 (DGD) (Business in Cameroon)
The Directorate General of Customs, housed at the Ministry of Finance, collected CFAF486.4 billion in customs revenues between January and June 2023. The revenue is up 19.3% year-on-year compared to the CFAF 407.8 billion collected by the end of June 2022. It also exceeded, by CFAF16 billion, the CFAF470.4 billion target set for the customs administration over the period under review.
This performance was achieved in an economic context that was rather unfavorable to revenue mobilization. In detail, this context, according to the General Directorate of Customs, is notably “marked by the slowdown in world trade volume growth, the continued dismantling of tariffs following international trade agreements (EPA between Cameroon and the European Union and the AfCFTA), as well as the implementation of salutary measures to combat inflation, such as subsidies for petroleum products and tax and customs duty exemptions.”
Addis-Djibouti corridor upgrade to improve regional integration (ESI-Africa.com)
The Addis-Djibouti corridor, a vital trade route and a lifeline for Ethiopia’s 120 million people, will upgrade significantly thanks to the newly approved Horn of Africa Initiative’s Regional Economic Corridor Project. The project, endowed with a $730 million grant from the International Development Association (IDA), aims to improve regional connectivity and logistics efficiency in Ethiopia along this key trade route connecting landlocked Ethiopia to the port of Djibouti.
“Improved regional connectivity and trade are essential to unlocking Ethiopia’s economic potential,” said Ahmed Shide, Minister of Finance of the Federal Democratic Republic of Ethiopia. “This project is important to support our commitment to fostering inclusive growth and regional integration, as we are now fully focused on sustaining the growth and reaping the peace dividends,” he added.
Over 95% of Ethiopia’s import-export trade (by volume) uses the Addis-Djibouti corridor. The project aims to upgrade the road to Djibouti, including the Mieso-Dire Dawa section, which is currently in poor condition and unsuitable for growing truck traffic. This section forces road users to take a longer route through Mille, adding 146km to their journey.
Africa headed to miss own deadline on food security (The East African)
African countries are headed to miss their own target of reducing hunger through better agricultural investments. The revelations emerged on Monday at a meeting of the African Union meant to evaluate Africa’s path to towards better nutrition and eradication of extreme hunger. And it emerged just four Member States are on track to deliver key nutrition targets, just two years to the deadline agreed on it the Malabo Declaration on Accelerated Agricultural Growth and Transformation for Shared Prosperity and Improved Livelihoods.
At the event organised by the African Union InterAfrican Bureau for Animal Resources (AU-IBAR) and the Bill and Melinda Gates Foundation at Naivasha hotel, participants were told of imminent ramifications: prolonged poverty. “It is now imperative that we prepare to account for how the livestock sector has contributed to delivering against key targets,” said Dr Nick Nwankpa, the African Union-InterAfrican Bureau for Animal Resources (AU-IBAR) Acting Director.
Malabo Declaration is supposed to end by 2025. Incidentally, it is also the mid-way point of implementation of the Livestock Development Strategy for Africa (LiDeSA), a continental vision to tap into the value of livestock as a key source of food, ending poverty. But the continent has suffered more droughts, more floods, more pest invasion and lower food production, also owing to global events such as Covid-19 and the Russian invasion of Ukraine.
“The multiplicity and increasing frequency and severity of shocks and their complex and interlocking effects demands an approach that will also strengthen resilience in feed and fodder systems,” Dr Nwankpa said. “Unfortunately, we only produce 40 per cent of the required amount thus having a deficit of 60 per cent,” he revealed.
Weather, aborted Ukraine grain deal spell doom to EA food basket (The East African)
East African economies are staring at a fresh spike in food prices and a further deterioration in inflation outlook in the wake of adverse weather conditions that have heavily impacted the region, compounded by the collapse of a crucial grain export deal between Russia and Ukraine last week.
Latest data by the United Nations Food and Agriculture Organisation (Fao) shows that Cereal production in the East African region is expected to decline by four percent to 52.8 million tonnes this year from 55 million tonnes in 2022, according to the Fao latest quarterly report on ‘Crop Prospects and Food Situation’ around the world.
The UN agency, through its quarterly report on ‘Crop Prospects and Food Situation’ around the world dated this month shows that the region faces steep grain deficit with cereal import requirements for this year standing at around 13. 68 million tonnes and 14.77 million tonnes in 2024.This signals East Africa’s huge demand for wheat, maize, rice, barley and sunflower whose global supply chain has now been disrupted by the collapse of the Russia-Ukraine Black Sea grain export agreement.
Among African Low-Income Food Deficit Countries (LIFDCs) total cereal production in 2023 is forecast at a slightly below-average level of 106.1 million tonnes largely as a result of erratic rain distribution in East Africa which has curbed harvest expectations in Kenya, Ethiopia, the Sudan, Uganda and Tanzania.
Kenya, Uganda and Tanzania face unfavourable cereal production prospects in 2023 due to adverse weather conditions, according to the report.
The Southern Africa region has seen a slowdown in economic growth over the past year as its largest economy, South Africa, confronts multiple challenges. Civil unrest, electricity crisis and natural disasters have contributed to dampen prospects for the region, which is lagging behind the others in Africa, according to the African Development Bank’s new economic report.
The 2023 Southern Africa Economic Outlook, launched on Monday 24 July, analyses the recent economic trends and developments in Southern Africa. In line with this year’s theme for the annual outlook: mobilizing private sector financing for climate and green growth in Africa, the report also explores the potential role of the private sector in financing the region’s climate action and green growth ambitions.
In 2022, the Southern Africa region’s GDP growth barely reached 2.7 percent, a level much lower than global and African averages of 3.4% and 3.8 %. Growth in the region is expected to slow down further in 2023 to 1.6%, followed by a slight improvement - 2.7% - in 2024. Weighing down the environment further is the external debt burden which is forecast to remain high across the Southern Africa region. In 2022 it stood at 48%.
Speaking during the launch, Kevin Urama, African Development Bank vice president and chief economist commended African governments for their “remarkable resilience,” in the face of recent challenges.
Quoting from the report he said financial needs for climate action in southern Africa stood at $1 trillion, with an annual requirement of $90.3 billion for 2020-2030. Average annual climate finance flows to Southern Africa stand at $6.2 billion, a mere 6.9% of what is required. Southern Africa, in addition, received the least financial flows relative to its financial needs, compared to other African regions.
“We estimate that the continent will need about $235-$250 billion annually between now and 2030 to meet investments needed under the Nationally Determined Contributions. So this leaves Africa, the African private sector and the global private sector with an investment opportunity of up to $213.4 billion annually to address climate change alone,” he said.
Africa’s regional integration realized through the implementation of the African Continental Free Trade Area (AfCFTA) is imperative to the continent’s economic growth and development, says outgoing Joe Attah-Mensah, Principal Policy Adviser at the Economic Commission for Africa (ECA).
“What many Africans aspire for is that the 55 fragmented economies on the continent become integrated into one strong, robust, diversified and resilient economy,” said Mr. Attah-Mensah, in a farewell seminar on the theme: ”Is Africa Integrating or Disintegrating? A Reflection over the last 20 years and the future”. The seminar was organized by ECA staff to mark his retirement.
In a presentation punctuated by sayings and statements by Africa’s founding leaders, Mr. Attah-Mensah stressed that an integrated Africa is underpinned by a first-class trans-boundary infrastructure, a highly educated, flexible and mobile workforce as well as highly mobile financial capital. Furthermore, sound health facilities, peace and security are vital in supporting an integrated Africa.
Mr. Attah-Mensah, called for investment in and ”strengthening of the supply chain infrastructure, such as transportation, communication, utilities and technology to support the AfCFTA.”
What next for EAC after EU-Kenya trade deal? (Monitor)
In the first part of the Economic Partnership Agreement (EPA), a pact that is looking to flung open the domestic market of Least Developed Countries (LDCs) like Uganda for the European Union (EU) countries manufactured goods, we revealed how this deal is silently disintegrating the East African Community (EAC) bloc instead of unifying it in the spirit of regional integration.
After showing her hand for all to see because of fear of attracting tariffs on mainly flower and vegetable exports to European Union (EU) countries if she doesn’t sign the Economic Partnership Agreement (EPA), Kenya has sacrificed what some have termed as “long-term success for a short term gain.”
According to continental trade and investment treaty analysts, Kenya should factor in the long term losses that the EPA will inflict on itself and the region in terms of loss of revenue, negative impact on industrialization and intra-regional trade, and on overall development.
Following thorough review of the EPA, experts conversant with trade and investment treaties as well as multilateral and bilateral negotiations from the continent (Africa) still came to a conclusion that it is not worth it for Kenya and the region to append their signature on the dotted line for as long as the agreement is in its current form.
The service sector has emerged as the driving force towards reshaping economic landscapes across the world. With 54 African countries, 1.3 billion people, and $3.4 trillion in GDP, it’s time to leverage significant opportunities for export-led growth, economic diversification, inflows of foreign direct investment (FDI) and integration into regional and global value chains.
At the Thirteenth COMESA Meeting of the Committee on Trade in Services, that kicked off today in Mombasa, Kenya, COMESA Director of Trade and Customs, Dr Christopher Onyango, remarked that trade in services is a game changer towards unlocking the potential of regional and global trade.
“The service trade has been proven to promote greater inclusiveness, particularly for female and young workers and entrepreneurs as well as micro, small and medium-sized enterprises (MSMEs). The importance of the sector has been fuelled by technological changes and its increasing role as intermediate inputs into production and delivery of other goods and services’’ he stated. “But these attributes can only be realized if services are mainstreamed in regional and national development strategies. It is evident that services are still absent in national development strategies. Such are those countries in which there exist no rules and regulations in the service sector, or in only a few select sectors and, if available, are not considerate of current developments in the sector’’ he remarked.
ECOWAS Parliament Speaker Advocates Inclusion Of Vulnerable Groups In Decision Making (Voice of Nigeria)
The Speaker of the Economic Community of West African States, ECOWAS)l Parliament, Sidie Mohammed Tunis has advocated for the inclusion of vulnerable and marginalized groups in decision making in the region. According to Dr Tunis, supporting the participation of people from vulnerable and marginalized groups in the decision-making and democratic processes of the societies was key to continued peace, security and sustainable development.
“As we all know, inequality has been one of the bases or causes of subversive acts in our region.” The marginalization of vulnerable groups from important decision-making processes, particularly ethnic or religious minorities, women and young people, provides fertile ground for conflict of violent extremism, according to Dr. Tunis. “We must convince ourselves that supporting the participation of people from vulnerable and marginalized groups in the decision-making and democratic processes of our societies is imperative for peace, security and sustainable development.”
UK-Pan Africa region development partnership summary, July 2023 (GOV.UK)
The Strategy for International Development (IDS) places development at the heart of the UK’s foreign policy. It sets out a new approach to development, anchored in patient, long-term partnerships tailored to the needs of the countries we work with, built on mutual accountability and transparency. This approach goes beyond aid and brings the combined power of the UK’s global economic, scientific, security and diplomatic strengths to our development partnerships.
By 2030, one in 5 of the world’s population will be African. The continent will play an increasingly important role in shaping global dynamics. Geostrategic competition in Africa will intensify over the next decade. This competition will also shape – and be shaped by – the actions of African actors.
Many African countries are already suffering from the long-term economic impact of the COVID-19 pandemic, which has been exacerbated by the Russian invasion of Ukraine. Almost half of sub-Saharan African countries are either in debt distress or at high risk of debt distress. Poor infrastructure, a weakly developed private sector, and barriers to trade continue to limit the potential for economic growth, investment, and job creation.
Sub-Saharan Africans are amongst the least responsible for causing climate change, but many are expected to be the most vulnerable to its impacts. Increasingly frequent and severe droughts and floods are driving new patterns of displacement and leading to greater numbers of people facing acute food insecurity outcomes. Adapting to address these trends is vital for our long-term interests.
Our support to trade and investment in Africa includes support to the AfCFTA, which will help the world’s largest trading area finalise key negotiations between member states and move the agreement into operation. The Africa Food Trade and Resilience programme is working to build the resilience of food systems across the region, which will help to address some of the priorities set out at the Dakar 2 ‘Feed Africa’ Summit in January 2024. We will also facilitate investment into Africa by supporting engagement with BII and British Investments Partnership (BIP) tools across Africa as well as supporting delivery of the UK-Africa Investment Summit in April 2024.
Arab-Africa Trade Bridges Program invests $1.5bn in food security initiative (FoodBev Media)
The Arab-Africa Trade Bridges Program (AATB) – a programme aimed at promoting and increasing trade and investment between African and Arab member countries – has launched a $1.5 billion programme to address ongoing challenges amid the global food security crisis.
During a hybrid launch event, which took place at the headquarters of the African Export-Import Bank in Cairo this month, members of the AATB’s executive committee emphasised the relevance of the new food security programme to their member countries.
With the launch of the programme, AATB hopes to leverage its expertise, resources and partnerships to implement targeted actions that address the specific food challenges faced by each member country. The programme is centred around AATB’s four pillars: Trade, Investment, Insurance and Infrastructure.
Digital Skills Provide a Development Path for Sub-Saharan Africa (Harvard Business Review)
Sub-Saharan Africa is urbanizing with massive rural-urban migration. But unlike the urbanization of the Western world, Sub-Saharan Africa is missing a critical component: industrialized urban cities. Because of this, these urban areas have become overcrowded with substandard housing and severely inadequate infrastructure to cope with unplanned population growth.
Fortunately, a new development playbook to solve this problem is already evolving, and it is anchored on the young people equipped with advanced digital skills in Sub-Saharan Africa. These young workers are digitally savvy, creative, and can lead a massive transformation — if they’re equipped and supported to unlock their potential.
They can export digital skills to Western Europe, United States, and Asia through the unbounded and unconstrained opportunities the internet has provided through “digital jobs” from music to software development to prompt engineering. But to scale this and make it a success, changes must be taken into consideration at both the policy level and in implementation in the areas of quality digital education, tax treaties and harmonization, and outsourcing-focused startups.
Growing telecom infrastructure in Africa is a huge opportunity (Bizcommunity)
One of the key findings of a market study by TeleGeography is the substantial increase in transit route capacity across the continent and the growth of intra-Africa traffic. More digital content is being serviced within Africa than ever and at a rapidly growing rate.
The expanded capacity in both subsea cable and terrestrial fibre has translated into large IP bandwidth growth, price declines in bandwidth, growth in localised data centres and, as a result, enhanced connectivity and improved user experiences.
Subsea cable, terrestrial fibre and data centre investments are making Africa the top-growing bandwidth market globally, with projected compound growth of 42% between 2022 and 2029, surpassing the global average projections of 32%. Content providers have experienced 80% compound annual growth rates in African bandwidth between 2018 and 2022.
Introducing new submarine cable systems is expected to increase capacity for coastal and landlocked countries, increase the number and size of intra-African routes, decrease transit prices along key African routes, and boost localised digital content growth.
The report also highlights that despite the historical internet traffic routes from Europe to Africa, South Africa has become a growing regional hub for intra-Africa internet capacity, with the percentage of traffic servicing sub-Saharan Africa becoming more intra-Africa than traditionally serviced from Europe.
Russia-Africa summit: Here’s what Vladmir Putin and Moscow stands to gain (The East African)
Forty-three African heads of state attended the 2019 Russia-Africa summit. They had high hopes that Russia would emerge as a new source of investment and trade for the continent. Russian President Vladimir Putin promised to double Russian trade with Africa in five years to US$40 billion.
Since then, Russian trade with the continent has contracted to US$14 billion. It is lopsided, with Russia exporting seven times as much as it imports from Africa. Additionally, 70% of this trade is concentrated in just four countries: Egypt, Algeria, Morocco and South Africa.
Russia invests very little in Africa. It accounts for 1% of the foreign direct investment that goes to the continent. Mauritius is a larger source of foreign direct investment for Africa. Additionally, Russia’s gross domestic product has shrunk in value from US$2.3 trillion in 2013 to US$1.8 trillion in 2021.
Despite these diminishing economic ties, Russia’s influence in Africa has rapidly expanded since 2019. It has deployed troops to the continent and become the dominant external partner in a handful of countries. Russian disinformation campaigns in at least 16 African countries are shaping the information environment on the continent.
Caricom pleased with African talks (Jamaica Observer)
The Caribbean Community (Caricom) Secretary General Dr Carla Barnett says there has been progress in trade and investment between Africa and the 15-member regional integration grouping following the commitment given by the leaders during their first Caricom-Africa summit in 2021.
In a virtual address to the annual Global Africa People-to-People Forum 2023 held over the last weekend, Barnett described the inaugural summit in 2001 as a “landmark occasion” allowing both regions to engage on matters of mutual interest and determine the direction for deeper cooperation.
“Caricom and Africa have made progress in trade and investment relations, with strong support from Afreximbank. A formal partnership has been established, and the Caribbean headquarters is scheduled to be opened in Barbados in a few weeks’ time,” Barnett said. She said this will allow Caricom countries to access financing for trade promotion in a range of sectors.
“The possibility of utilising the pan-African payment and settlement system as a method of intra-regional payments within the Caribbean is also being explored,” she said, adding that as a a follow-up to the summit’s discussions on strengthening trade and investment.
Global Economy on Track but Not Yet Out of the Woods (IMF)
The global economy continues to gradually recover from the pandemic and Russia’s invasion of Ukraine. In the near term, the signs of progress are undeniable. The COVID-19 health crisis is officially over, and supply-chain disruptions have returned to pre-pandemic levels. Economic activity in the first quarter of the year proved resilient, despite the challenging environment, amid surprisingly strong labor markets. Energy and food prices have come down sharply from their war-induced peaks, allowing global inflation pressures to ease faster than expected. And financial instability following the March banking turmoil remains contained thanks to forceful action by the US and Swiss authorities.
Yet many challenges still cloud the horizon, and it is too early to celebrate. Under our baseline forecast growth will slow from last year’s 3.5 percent to 3 percent this year and next, a 0.2 percentage points upgrade for 2023 from our April projections.
The slowdown is concentrated in advanced economies, where growth will fall from 2.7 percent in 2022 to 1.5 percent this year and remain subdued at 1.4 percent next year. By contrast, growth in emerging markets and developing economies is still expected to pick-up with year-on-year growth accelerating from 3.1 percent in 2022 to 4.1 percent this year and next.
This average, however, masks significant differences between countries, with emerging and developing Asia growing strongly at 5.3 percent this year, while many commodity producers will suffer from a decline in export revenues.
Related News
tralac Daily News
Duty-free maize imports plan flops on costly supplies (Business Daily)
Kenya’s plan to import about 900,000 tonnes of white maize by next month has run into headwinds on costly global supplies. The latest data from the Ministry of Agriculture and Livestock Development show barely one-third of the desired imports had landed in the country by the end of June, ahead of closure of the duty-free import window next month. Between February and the end of June, the ministry reported importation of a mere 259,470 tonnes of maize, which represents just 29 percent of expected imports.
Moreover, the bulk of imports has come from the region as opposed to being sourced from outside the East African Community and Comesa as earlier expected.
“All imports (in June) were from East Africa Community countries, mostly Tanzania. According to the Kenya Grain Millers Association, the reduced imports are due to a generally tight global market, coupled with reduced local demand which is attributed to lower purchasing power,” the ministry said in its latest food and nutrition security bulletin.
“It is further noted that although the government gave a duty-free import window for maize outside the EAC and Comesa, very little has been imported by the legible millers and traders as they report inadequate global supplies, higher freight and insurance costs as well as a shortage of the dollar. The imported maize arriving at Mombasa is slightly more expensive compared to local supplies.”
Uganda’s dairy sector counting losses as Kenya blocks exports (The East African)
On June 23, 2023, Brookside Dairy Uganda sent home at least 200 workers saying it has been forced to cut production by 75 percent as it has been unable to export the milk produced since March. Kenya is Uganda’s largest market in East Africa and Brookside says Nairobi has declined its 116 export permit applications.
This development, which is blamed on the supremacy battle between the regime of President William Ruto and his predecessor Uhuru Kenyatta, whose family owns Brookside, has left Ugandan milk farmers and processors on the brink of economic ruin, and Kampala is now aggressively looking for markets farther outside the region.
An earlier milk export deal brokered by President Yoweri Museveni with Algeria seems to have fallen through, and on Wednesday this week, Museveni asked visiting Senegal President Macky Sall to allow Ugandan milk into his country. President Sall pledged to buy milk powder from Kampala, giving a glimmer of hope to the local producers.
“In Senegal, we import things from New Zealand and Brazil. We import powdered milk from these countries. We need to see how we can come and buy your milk,” the President said at State House Entebbe, where he was gifted samples of Uganda’s milk by his host.
Uganda registers Shs463.7b trade surpluses with EAC states (Monitor)
Uganda’s Trade Balance with the East African Community indicates that the country registered a surplus of $127.3 million (Shs463,734,932,300) with the four countries. The Ministry of Finance Planning and Economic Development has revealed that Uganda registered trade surpluses with all the East African Community partner states except for Tanzania and Burundi, which implies that trading activities are steadily growing with other member states.
“The largest trade surplus was with DR Congo ($55.1 million), followed by South Sudan $51.0 million), Rwanda ($17.6 million) and Kenya ($3.6 million) respectively,” said the Ministry of Finance. The EAC remains Uganda’s main trading bloc in the continent because of regional integration. Regional integration helps countries overcome divisions that impede the flow of goods, services, capital, people and ideas.
Rwanda, Congo-Brazzaville sign deal to trade under AfCFTA (The New Times)
Rwanda and the Republic of Congo on July 22 signed an agreement to fast-track trade and economic cooperation under the African Continental Free Trade Area (AfCFTA).
The agreement was signed by Jean Chrysostome Ngabitsinze, Rwanda’s Minister of Trade and Industries, and Denis Christel Sassou Nguesso, the Minister of International Cooperation in Congo-Brazzaville. The deal’s signing was presided over by President Paul Kagame and President Denis Sassou Nguesso.
The Minister of Foreign Affairs and International Cooperation, Vincent Biruta, said the Congolese President’s visit was an opportunity to take stock of the progress made so far in terms of implementation and to identify strategic areas to focus on.
He said the signing of the memorandum of understanding on preferential trade to enhance economic cooperation between the two countries under the AfCFTA, will be based on key strategic areas. The latter include economic projects that reflect a commitment to sustainable development, responsible resource management, and economic growth.
Nigeria is not maximising AfCFTA opportunities - Experts (Businessday NG)
Nigeria has fallen behind its regional counterparts in harnessing the full potential of intra-African trade, despite signing the African Continental Free Trade Area (AfCFTA) agreement in 2019.
As intra-African trade remains sluggish, a key factor contributing to the stagnation is the limited information available to manufacturers and the bureaucratic hurdles hindering their participation in the ambitious trade pact. And although the first practical trade activity under the AfCFTA regime was held in September 2022, neighbouring Rwanda, Cameroon, Egypt, Ghana, Kenya, Mauritius, Tanzania, and Tunisia are already operating without Nigeria, having met the minimum requirements for trade under the Agreement.
“So far, the practical implementation of AfCFTA started in September 2022, with the export of coffee products from Rwanda to Ghana; and export of Exide Battery from Kenya to Ghana, under the Guided Trade Initiative (GTI) within the eight state parties that have met the minimum requirements for trade under the Agreement,” said Odiri Erewa-Meggison, Ag. chairman, MAN Export Promotion Group. “These countries are already operating on the GTI without Nigeria,” she added, during her opening speech at the two-day capacity-building training for members of the Manufacturers Association of Nigeria Export Promotion Group (MANEG).
Franca Achimugu, coordinator, strategy & planning, AfCFTA Nigeria Secretariat has said the government of Nigeria will have to set in more initiatives that will encourage people to produce for Nigeria, as export is more economically viable and will before long, have many manufacturers looking its way. “It’s going to be a lot of disservice to Nigeria if we do not saturate our domestic market and we head for other markets, because in the whole of Africa, we are the ones that have the population, and that means latent demand, and that means that other countries are looking at us to send their products here,” Achimugu said.
EAC currencies gain against dominant Kenyan shilling (Business Daily)
The Kenya shilling has lost nearly 20 percent of its value against regional currencies in under a year, weakening its dominant position in the region in a trend that is serving pain to traders importing goods from Uganda and Tanzania. The Kenyan currency is now priced at about 19.7 percent lower than the Uganda shilling when compared with mid-July last year while its value against the Tanzania shilling and Rwandese franc has also dropped by 12.1 percent and 4.4 percent respectively in the same period.
The continued weakening of the Kenyan shilling against the currencies of Uganda, Tanzania and Rwanda means that Kenyan exports into the region are fetching far much less than before. For instance, goods that used to cost Ugandan traders Sh1 million to import around March 2020 now cost less by about Sh292,000 thanks to the weakened Kenyan shilling. However, Kenyans buying from Uganda are disadvantaged since they now spend about Sh1.3 million to buy the same quantity of goods that they could get from the landlocked East African country for Sh1 million in March 2020.
“Importing goods in the region is becoming difficult for business. Many of us have had to cut on the volume of goods we are importing or have had to increase money to get the same volume of goods we used to get say a year earlier,” said Mr Karanja in a phone interview.” And since selling prices for these goods are not changing that much here in Kenya, our profit margins have been dropping. We are worried that reversing this free fall of the shilling is going to be difficult.”
EA ministers approve $4m Northern Corridor budget (The East African)
Northern Corridor Council of Ministers has approved $4.35 million budget for the next fiscal year, some $1.18 million less than it did in the past fiscal year. The executive committee has also approved an entity that seeks to address non-physical barriers to trade to enable the Northern Corridor to compete with the Central Corridor. The entity, Northern Corridor Transit and Transport Coordination Authority (NCTTCA), is expected to streamline customs procedures, reduce bureaucracy, and harmonise trade policies and regulations.
In a joint communique after the 35th meeting of the Northern Corridor Council of Ministers in Kigali, the council also delved into how to improve intermodal transport in the Northern Corridor region and the need to work on joint railway projects.
“The secretariat should continue bringing together all the six member states to promote rail and inland waterways transport to ease the pressure on the road network and work towards enhancing a seamless movement of goods along the corridor and reiterated the need to fast-track and operationalise the use of oil jetties on Lake Victoria in the transfer of oil products,” said the ministers. In May, Kenya and Uganda begun seeking an alternative financier for the standard gauge railway to connect Naivasha and Kampala via Malaba.
Nigeria, Benin Meet on ECOWAS Trade Liberalisation Scheme Monday (THISDAYLIVE)
Nigeria and the Benin Republic have agreed to meet on Monday, July 24, on the provisions of the ECOWAS Trade Liberalisation Scheme (ETLS).
Adeniyi explained that the meeting, which would hold in Benin Republic, would set the tone for trade agreements beneficial to both countries to deepen the provisions of the ETLS as a precursor to the African Continental Free Trade Area (AfCFTA). He pointed out that preferential trade agreements “has been the bedrock of prosperous nations across the world.” He added that the development of geopolitical blocs “is hinged on policies and agreements which grant trade benefits to nations believed to share complementary needs.”
He said such symbiotic relationship “is needed to enhance the efficiency of the customs services of both countries as behoves neighbours and to strengthen the process of trade facilitation and economic development.
ACHPR75: A human rights-centred approach to the implementation of the AfCFTA (ISHR)
The panel started with Commissioner Solomon Ayele Dersso highlighting that while implementing the African Continental Free Trade Area (AfCFTA) project, States have an obligation to prevent exploitative economic relations, particularly with international monopolies. In addition, he stated that trade liberalisation should not lead to commodifying essential social services, including health, education, water and food.
“Trade and human rights have tended to remain on ‘the parallel, separate and sometimes inconsistent tracks’ on which they developed”, stated Brenda Kombo, a fellow of the Institute for Global Law and Policy, quoting Professor Makau Mutua and Professor Robert Howse.
Additionally, Kombo referred to Professor Babatunde Fagbayibo, who characterised the AfCFTA processes as State-centric, and to the 2016 statement of civil society actors, which described the AfCFTA as a project excluding civil society and private sector involvement until now. The African Union and the AfCFTA Secretariat have undertaken efforts to encourage greater participation in the processes. However, Kombo called for the meaningful participation of a broad range of actors, who are the beneficiaries of free trade, in the AfCFTA processes.
US-EAC trade pact comes into life amid disharmony (The East African)
The Trade and Investment Framework Agreement (Tifa) between the US and the East African Community has begun taking shape, with a section of the bloc’s members keen on it and others still biding their time. This week, US officials were in Nairobi to conduct part of the negotiations on the US-Kenya Strategic Trade and Investment Partnership and to meet Trade ministers from the region.
“The EAC members have their own very important dynamics in terms of engaging as a region on economic matters. This is really important for the US to show up as a partner that wants to strengthen regional integration, and our partnership with the region and other specific engagements,” she said.
US Trade Representative Katherine Tai
The meeting addressed market access issues, labour, environment, protection and enforcement of intellectual property rights and capacity building.
Dr Mathuki told The EastAfrican that the forum was important to the US because the EAC “is becoming attractive to others because of market size and improved business environment.”
They also used the forum to discuss the future of the African Growth and Opportunity Act (Agoa), which expires in 2025.
U.S. plans trade missions in South Africa, Ghana; unsure of Nigeria (Peoples Gazette)
The U.S. government says it will embark on a global entity of trade enterprise with African nations, including South Africa and Ghana, but it is sceptical about Nigeria due to the country’s foreign currency rate barrier. The United States Department of Commerce, International Trade Administration (ITA) disclosed this in a statement published on the U.S. government federal register in February. According to the statement, the ITA will be responsible for recruiting, organising and implementing the global trade mission between August 6-15, 2023.
“After South Africa, the mission will proceed to Ghana in West Africa,” it said. “In Ghana, mission participants will have the opportunity to participate in pre-arranged B2B meetings with potential partners and customers, as well as a potential site visit to a manufacturing facility.”
It added, “Given recent government regulations imposing additional tariffs on automotive imports, this sector is no longer considered viable for American automotive exporters. Companies involved in ICT and Safety & Security will be better situated for B2B meetings in Ghana.”
“After Ghana, mission participants have the option to proceed to the optional stop in Nigeria for two days after a weekend break. In Nigeria, participants will have B2B meetings with potential partners and customers. ”This stop will be optional as some of the target sectors for this mission face foreign exchange barriers, making it difficult to enter and compete in the Nigerian market. ”It is noted that some consumer goods, including textiles and cosmetics/toiletries, are among the products that face this difficulty. The mission will conclude in Nigeria,” the U.S. statement read.
President Ramaphosa to lead delegation to Russia-Africa Summit (SAnews)
“This second summit is expected to consider four declarations and a three-year Action Plan, which will be presented for consideration. These submissions will focus on strengthening cooperation between Russia and African States in politics, security, trade, science, IT, humanitarian support, education, culture, sports, youth and the environment.
“The declarations also seek to strengthen cooperation in the fight against terrorism, the prevention of an arms race in outer space, and in information security,” the President’s office said in a statement.
President Cyril Ramaphosa is expected to lead the South African delegation to the second Russia-Africa Summit to be held at St Petersburg in the Eastern European country on Thursday and Friday.
Could Supply Chain Security Take U.S. Firms to Africa? (RealClearDefense.com)
Beginning in August, China will levy export controls on two critical minerals: gallium and geranium. These metals are essential to semiconductor technology and restricting access to them marks Beijing’s latest volley in its strategic power competition with Washington and will significantly disrupt U.S. and Taiwanese chip manufacturers.
The global mineral supply chain is already narrow and China has an overwhelming lead with respect to rare earth metal extraction and processing. This market dominance enables Beijing to manipulate access seemingly at-will. Beyond minerals, China’s status as the world’s top manufacturer also makes raw material building blocks like plastics, chemicals, and agriculture products vulnerable to Beijing’s geopolitical ambitions.
For U.S. industry dependent upon reliable supply chains, this vulnerability underscores the need to pursue a pivot. Decoupling is unrealistic, but diversifying supply is a necessary long-term strategy. For American interests pursuing new, secure supply chains, Africa represents a key opportunity.
For the American firms also interested in engaging Africa as a supply chain partner, support exists for their first steps.
During the past 20 years, U.S. government efforts have encouraged safer trade and investment conditions, and current initiatives such as Prosper Africa and Power Africa align American industry with tools like risk insurance, business intelligence, and matchmaking. The Africa Growth and Opportunity Act also adds import provisions, and the African Continental Free Trade Area‘s further facilitates supply avenues and promotes trade through tariff removal between African states, regional cooperation, common rules, and regulatory reform.
Like any emerging market, Africa is not without risk.
Brics opportunities must not be at expense of other trade relations (Engineering News)
South Africa’s representatives do not seem to realise that the opportunities presented by the Brazil, Russia, India, China and South Africa (Brics) trade bloc must not be at the expense of other trade relationships and that South Africa’s trading relationships with the West are essential to its economic well-being, said business organisation Business Leadership South Africa (Busa) CEO Busi Mavuso.
“The Brics bloc is a positive opportunity for South Africa and it is right for government to cultivate relationships with Brics. India and China, in particular, are massive and fast-growing markets that South African businesses can benefit from. “However, our relationship with Brics must not come at the expense of our relationships with the West because, while the opportunities in the East are clear, our trading relationships with the West are essential to our economic well-being,” Mavuso said in a July 24 newsletter.
For example, Minister in the Presidency for Women, Youth and Persons with Disabilities Nkosazana Dlamini-Zuma, during a presentation to the Brics Youth Summit, decried those countries that prefer South Africa to ship raw materials to them, rather than manufactured goods. “However, she did not pause to consider that our relationships with India and China are overwhelmingly characterised by South Africa exporting raw materials and importing manufactured goods,” illustrated Mavuso.
“Immense harm would be done to our industrial base if we collapsed the trade relationships that currently sustain it without any competitive access to new trading markets. China, India and Brazil have huge populations that create potentially massive demand for goods we could potentially provide,”
BRICS leaders to discuss sustainable payment mechanism: Russian Foreign Ministry (The Economic Times)
One of the crucial topics the BRICS nations will consider at their summit next month is the establishment of long-term payment systems for cross-border commerce, the Russian Foreign Ministry said.
“Given the current international situation, this issue will be addressed during the upcoming meeting of the bloc’s leaders,” the ministry said on Friday, referring to the summit in Johannesburg, South Africa, on August 22-24, RT reported.
The use of national currencies in cross-border commerce is hindered, according to the Russian Foreign Ministry, by things like their restricted convertibility and higher volatility than the US dollar. The government also admitted that it would be a “delicate” process to possibly launch a new BRICS common currency.
The BRICS nations have been seeking to shift further from the US dollar in mutual trade, with the de-dollarization trend gaining momentum following sanctions that effectively cut Russia off from Western financial mechanisms. Numerous developing nations - including Russia’s fellow BRICS members China, India, Brazil and South Africa - have started to move toward alternative currencies in trade, RT reported.
South Africa became Chair of BRICS on January 1 this year under the theme: “BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development and Inclusive Multilateralism”.
“The theme informs the Chair’s five priorities for 2023 - Developing a partnership towards an equitable Just Transition; Transforming education and skills development for the future; Unlocking opportunities through the African Continental Free Trade Area; Strengthening post-pandemic socio-economic recovery and the attainment of the 2030 Agenda on Sustainable Development; Strengthening multilateralism, including working towards real reform of global governance institutions and strengthening the meaningful participation of women in peace processes,” according to the official statement.
China vows to aid Ethiopian recovery and boost ties with Kenya, Nigeria (South China Morning Post)
As the West steps up its diplomatic ventures into Africa, China has renewed its commitment to the continent, with debt relief and reconstruction pledges for Ethiopia and calls on new administrations in Kenya and Nigeria.
The commitments came as part of senior Chinese diplomat Wang Yi’s four-nation African tour, which will also include a visit to South Africa.
The commitments came as part of senior Chinese diplomat Wang Yi’s four-nation African tour, which will also include a visit to South Africa.
During an unannounced stop in Addis Ababa on Friday, Wang said China supported Ethiopia’s domestic reconstruction and economic recovery after the deadly Tigray war.
In a meeting with Ethiopian Prime Minister Abiy Ahmed, Wang, a Politburo member and director of the Office of the Central Committee for Foreign Affairs, said China “is willing to play a positive role in easing Ethiopia’s debt pressure”, according to a readout from China’s foreign ministry.
Ethiopia has an estimated US$13.7 billion in debt to China, much of it advanced by China Exim Bank between 2000 and 2021. Chinese capital has funded the US$4.5 billion Addis Ababa-Djibouti railway, along with other projects such as the capital’s Riverside Green Development and a light-rail network.
Abiy said he appreciated China’s strong support whenever Ethiopia faced difficulties and “regards China as a reliable and great friend”, actively taking part in the Belt and Road Initiative, according to the Chinese readout.
What future for seeds under the African Free Trade Area? (CADTM)
Given that intellectual property rights privatise agricultural biodiversity - our collective heritage and the cornerstone of food sovereignty - the implications of this protocol on seeds and the rights of peasants and rural communities in Africa must be carefully analysed.
Around the world, free trade agreements are forcing the privatisation of seeds, whether through patents or plant breeders’ rights. These rights enable seed companies to demand royalty payments from farmers for each generation of seeds they use, over a period of 20 to 25 years. According to seed companies such as Syngenta and Bayer, without these payments they will be unable to invest in research.
This same system is now rapidly gaining ground in Africa, potentially upsetting relationships between citizens within members states, and even between the member states themselves. Article 8 of the draft protocol addresses this issue. It stipulates that state parties shall provide protection for new plant varieties through a legal system that includes farmers’ rights, plant breeders’ rights, and rules on access and benefit sharing “as appropriate”.
Furthermore, it adds that states shall comply with “additional obligations” set out in an annex to be developed once the protocol is adopted. Upon adoption, this annex, along with the annexes on traditional knowledge and genetic resources, will have the same legal value as the protocol (article 41 of the protocol).
In a world of plenty, it is outrageous that people continue to suffer and die from hunger. The Food Systems Summit two years ago helped shine a spotlight on a core truth: global food systems are broken and billions of people are paying the price.
without access to financing and debt relief, developing countries are struggling to invest in food systems that can reach all people with the nutrition they need to live healthy lives. Meanwhile, unsustainable food production, packaging and consumption are feeding the climate crisis, generating one third of all greenhouse-gas emissions, using 70 per cent of the world’s freshwater and driving biodiversity loss on an epic scale. Many communities are one shock away from plummeting into food insecurity or even famine.
And that dire picture has grown bleaker with the Russian Federation’s termination of the Black Sea Grain Initiative that enabled the safe export of more than 32 million metric tons of food on more than 1,000 vessels from Ukrainian ports.
Broken food systems are not inevitable. They are the result of choices we have made. There is more than enough food in the world to go around. More than enough money to fund efficient and sustainable food systems to feed the world, while supporting decent work for those who grow the food we eat. And more than enough agricultural innovations and technology that can place healthy food within reach of every person.
Climate change: Which countries will foot the bill? (Hellenic Shipping News)
Record-breaking heat in China. Wildfires forcing Swiss villages to evacuate. Drought ravaging Spanish crops. As the costs of climate change rack up, a debate is surging among governments: who should pay?
The question has been in the spotlight amid this week’s climate talks between the U.S. and China, where the world’s two biggest economies tried to find ways to work together on issues ranging from renewable energy deployment to climate finance ahead of this year’s U.N. climate summit, COP28, in Dubai.
Given China’s rapid economic growth and increasing emissions, pressure has grown on Beijing to join the group of countries providing this funding.
“It’s difficult to argue that countries like China, Brazil or Saudi Arabia should still be put at the same level as the least developed countries and small island developing states,” a diplomat from one European Union country told Reuters. The EU, today the biggest contributor of climate finance, has
Related News
tralac Daily News
Demand aggregation, pricing clarity, standardisation needed to drive hydrogen infrastructure investment (Engineering News)
Infrastructure is needed to enable the global energy transition to meet climate goals by 2050, but commercial banks and senior debt funders are deterred from investing in hydrogen infrastructure owing to uncertainty surrounding pricing, offtake demand and stranded assets as research and development take place in this nascent industry, financial experts outlined during the 2023 Hydrogen Economy Discussion event this week.
This was a nascent industry and green hydrogen was not a single term. However, while it was evolving, hydrogen did present opportunities for the private sector to invest for industrialisation, said financial services firm Nedbank corporate and investment banking infrastructure, energy and telecommunications head Mike Peo.
“Green hydrogen presents significant private-sector-led opportunities, including for mining houses. South Africa has proven that it is capable of building a renewable energy market that can compete globally in terms of price. “Given South Africa’s mineral and resources endowments, green hydrogen represents similar opportunities. However, there is no well-priced market for green hydrogen currently and most commercial banks in South Africa do not fund early-stage developments,” he noted.
Zim economic growth seen at 5,3pc in 2023 (The Herald)
ZIMBABWE’S economy is projected to grow by 5,3 percent this year, better than initial estimates, on the back of improved farm yields, better electricity supply, and strong mineral prices, according to the Ministry of Finance and Economic Development.
The revised economic growth is ahead of estimates by the International Monetary Fund (IMF), the World Bank, and the African Development Bank (AfDB), which have projected the economy would expand by 2,5, percent 3,6 percent and 2,8 percent, respectively.
Zimbabwe had a strong performance in agriculture, with key crops surpassing output targets due to a better season. For instance, tobacco production has reached 290 million kilogrammes, significantly higher than the 230 million kg initially projected. Similarly, wheat and maize output is also expected to breach record levels while cotton production is expected to increase by 100 percent to 100 000 tonnes this year.
Tanzania emerges as top choice for investors, backed by President Suluhu’s confidence (Business Insider Africa)
In a now-viral video that sparked mixed reactions from neighbouring nations, President Suluhu confidently proclaimed Tanzania as a magnet for investors, witnessing an unprecedented influx of businesses that promised to reshape the nation’s economy.
Her call for unity and constructive addressing of grievances took centre stage during the address. She emphasised that discord and confrontations among leaders could deter potential investors from considering the affected country, opting instead for Tanzania’s welcoming investment landscape.
Nigeria maintains largest African economy for fifth year in a row as Egypt catches up (Nairametrics)
Nigeria maintained the position of the largest economy on the African continent for the fifth consecutive year in 2022, with a nominal GDP of $477.4 billion. The giant of Africa, as it is mostly referred to, accounted for 17.4% of the African economy in the review year ($2.7 trillion). This is according to data released by the World Bank. Nigeria has topped this list since 2018 when it overtook South Africa as the largest African economy.
According to the World Bank, Nigeria’s economy grew by 8.3% year over year in 2022 from $440.8 billion recorded in the previous year. Egypt followed with a GDP estimate of $476.7 billion, having recorded a 12.3% growth in its GDP from $424.7 billion in 2021. In third position was South Africa with an estimate of $405.9 billion.
Nigeria still imports 80 per cent of pharmaceutical inputs (Tribune Online)
Pharmacist and Chief Executive Officer (CEO) of ST. Racheal’s Pharm. Mr. Akinjide Adeosun, has expressed concern over the state of Nigeria’s Pharmaceutical industry whereby 80 percent of inputs used in manufacturing are still being imported.
Specifically, he lamented that just about 30 percent of pharmaceutical brands were manufactured locally, leaving about 70 percent to importation, hence the need for support to change the narrative as “we cannot constantly be dependent on others”
Speaking at St. Racheal’s Pharma Finance Forum held on Wednesday, July 19, with the theme: “Manufacturing Renaissance in Nigeria,’’ Adeosun called on national and sub-national governments to support pharmaceutical industries through Public Private Partnership (PPP) models, adding that there is also a need for industry operators to network with the government to have a good grasp of policies and how to align with them.
First shipment of resin exported to Cameroon under AfCFTA (TAP)
Tunisia on July 17 exported its first shipment of resin to Cameroon under the African Continental Free Trade Area (AfCFTA), announced the Export Promotion Centre (CEPEX). Customs clearance of the shipment, which includes 60 tonnes of resin worth €90,000 (around TND 204,000), was carried out by the Cameroonian institution of the “Port Autonome de Kribi” (PAK). This operation marks a decisive step towards closer economic cooperation within the AfCFTA, added CEPEX in a press release issued on Tuesday.
“It will offer opportunities for fruitful exchanges between the participating countries and pave the way for a promising future for Africa’s economic integration.” Tunisia’s Ambassador to Yaoundé Karim Ben Bécher underlined the importance of this first operation between Tunisia and Cameroon, which remains Tunisia’s leading partner in Central Africa and its 4th largest client in sub-Saharan Africa.
Liberia Nearing Domestication of Continental Free Trade Agreement (Liberian Observer)
The Liberian legislature has ratified the African Continental Free Trade Area (AfCFTA), which aims to create one of the largest free trade zones in the world since the World Trade Organization was created in 1995. The move by the 54th legislature, which now paves the way for the President’s signature, comes at a time when Liberia is yet to fully domesticate the agreement — being the only country in Africa not to have done so — since AfCFTA entered into force on May 30, 2019.
The AfCFTA, which aims to eliminate trade barriers and boost intra-Africa trade, would greatly benefit the country as it opens up a vast continental market for Liberian products — forcing the country directly to diversify its export base and reduce its dependence on traditional trading partners. It also presents Liberia with a unique opportunity to improve its infrastructure and logistical capabilities.
African energy experts make progress on continental power system masterplan (The North Africa Post)
Energy stakeholders from across Africa who convened at a recent meeting in Benin’s capital, Cotonou, managed to made significant strides in the establishment of the African Single Electricity Market (AfSEM) and the development of the Continental Power Systems Master Plan (CMP), paving the way for major developments to come in the energy sector.
The importance of a well-coordinated strategy to modernize Africa’s power infrastructure cannot be overstated. It is projected that the demand for electricity in the continent will triple by 2040, with industrialization, rapid urbanization, the growing middle class, and climate change being among other driving factors. To that end, the African energy experts attending the 3-day workshop managed to chart the path forward for the CMP and AfSEM initiatives, aiming to provide Africa with a reliable and sustainable power supply to meet the growing demands of its population.
Major developments are on the horizon as the CMP work plan enters its final development phase to produce an optimized integrated generation and transmission expansion plan for the 2023-2040 period.
Concern mounts in East Africa over halted Black Sea grain deal (Al Jazeera)
Russia’s decision on Monday to pull out of an agreement which allowed the export of Ukrainian agricultural goods via a safe channel through the Black Sea amid the continuing war is already reverberating far from the front lines of fighting in Ukraine.
For years, East African countries rattled by global climate change have relied on Ukrainian grain exports for sustenance. Now, an end to the agreement could lead to rising consumer prices, and further strain farmers and cash-strapped aid organisations already struggling to respond to challenges like conflict to drought, analysts say.
“We already know or can predict to a fair degree the impact the pausing of exports from that region to the rest of the world, especially East Africa and the Horn of Africa, will have on food prices,” said Debisi Araba, a food policy strategist and former managing director at the African Green Revolution Forum (AGRF).
With the grain initiative in the balance, African activists and economists are calling for climate-smart solutions to support local farmers and ramp up production, reducing import dependency. “We have to try and build self-sufficiency. Most of our constraints are on the supply side,” said Brain Sserunjogi, a fellow at the Economic Policy Research Centre in Uganda. “We have to invest in irrigation measures to make sure that we strengthen our production base for some of the food that we eat. We have to develop our local fertiliser industries.”
What Works to Narrow Gender Gaps and Empower Women in Sub-Saharan Africa? (World Bank)
Supporting Women Farmers to Maintain and Grow their Businesses
Employment in agriculture in Sub-Saharan Africa, although decreasing over the past 30 years, is still much higher than anywhere else in the world for both women and men. Productivity in agriculture in the region is low in general, and research focusing on selected countries shows that it is particularly low in female-managed farms. Giving women farmers the same access as men to productive resources and services could significantly increase agricultural output, boost economic growth, increase food security, and alleviate poverty in developing countries.
Facilitating knowledge exchange among farmers and providing participatory learning approaches have the potential to improve crop productivity and/or agricultural income of female farmers. Providing cash or in-kind transfers to female farmers are likely to improve female farmers’ ownership of animals and agricultural assets.
DG Okonjo-Iweala: Africa has many of the ingredients for digital success (WTO)
Director-General Ngozi Okonjo-Iweala said on 21 July that digital trade holds great promise to act as a catalyst for inclusive economic growth and sustainable development. “This promise is especially palpable in Africa,” she added. The Director-General was speaking at the launch of a joint WTO-World Bank policy note entitled “Turning digital trade into a catalyst for African development”.
The Director-General noted that reaping the opportunities of digital trade requires an adequate ecosystem, starting with good connectivity and encompassing other elements, such as sufficient skills, logistics and payments systems, and an enabling policy framework. Acknowledging the challenges that African countries face in this regard, she said that it is imperative that the international community steps up its action to support African countries’ efforts to benefit from digital trade.
The Southern Africa Development Community (SADC) Ministers of Finance and Investment and Governors of Central Banks has called for increased financial investment and portfolio diversification to achieve economic stability, stimulate growth and build economic resilience in the region.
In support of the implementation of the SADC Protocol on Finance and Investment, Honourable Kadima-Nzuji emphasised that, for SADC to attract investment capital, Member States must adopt prudent policy frameworks, promote harmonisation of financial and investment policies, enhance government efficiency and implement long-term financial regulations.
Ms. Angèle Makombo N’Tumba, SADC Deputy Executive Secretary for Regional Integration highlighted the importance of harmonising policies and improving the investment and business environment to achieve the microeconomic convergence, urging Member States to continue implementing essential frameworks, policies and recommendations. She also emphasised the significance of the Regional Development Fund in mobilising resources to finance the development of climate-smart infrastructure and technologies that increase agricultural production and industrial productivity and enhance intra-regional trade.
SAATM is the way forward (Africa Aviation News)
I believe that the SAATM and the AfCFTA are indissociable flagship projects of the African Union. In fact, the AfCFTA cannot be effective without the SAATM as the latter rests on the elimination of the non-physical barriers to the development of the air transport sector, the creation of a safe and reliable air transport industry, and the liberalisation of the aviation market in Africa, amongst others. These are equally the sine qua non conditions for the successful implementation of the AfCFTA.
My wish is that Africa can double its current air cargo figures over the next 5 years. The present forecast of ACI Africa for the air cargo sector in Africa unfortunately does not project such a robust growth despite the AfCFTA constituting the largest free trade area in the world in terms of participating countries.
Coming out of the pandemic, as airports look to ensure long-term financial sustainability through the diversification of their revenue streams, cargo has effectively become an important area to be explored. In light of the recent developments, many airports are now asking how they can capitalise on cargo’s resilience. The answer is not straightforward, and it will probably depend on many factors. Some of these factors are not even within the airport’s control which makes the process even more complex. There is, however, one consideration that applies to most airports, i.e. developing cargo takes time and effort.
On the positive side, with the newfound importance for air cargo, there is willingness from aviation stakeholders to invest in or contribute to its development. The development of a clear, well-thought-out cargo strategy, including a cargo master plan, is essential to growing this segment of airport’s portfolios.
Intra-African trade to liberate continent from foreign aid (Monitor)
The Deputy Speaker of Parliament, Thomas Tayebwa, has challenged African leaders to prioritise unrestricted trade with one another to save the continent from the burden of foreign aid.
He illustrated that whereas elite Africans criticize neocolonialism, several African governments have introduced foreign stockholders to usurp investment opportunities on the continent while undermining and ignoring natives with the same capability.
Mr Tayebwa also opined that trade, especially intra-African trade is the only instrument that African countries must embrace to liberate the continent from the burden of exploitation by foreign powers. “As Africa, trade not aid will liberate us - and for you to trade, you start with your neighbour. Many governments in Africa introduce investors who come with USD $1 million in investment but later claim investments worth USD $100 million,” he said.
According to Mr Tayebwa, intra-African trade can only be smoothly facilitated by travel and free movement of goods and services. He expressed concern over the fact that African governments impose unnecessary travel restrictions which continue to hinder the achievement of a united Africa.
A dialogue meeting that took place in Gaborone, Botswana, from 18th to 19th July 2023, involved the African Union InterAfrican Bureau for Animal Resources (AU-IBAR), the AUDA-NEPAD Planning and Coordinating Agency (NPCA), and the Regional Economic Communities. The meeting, held under the FishGov 2 Project was supported by the European Union, and attended by a total of twenty-five participants.
According to Dr. Domingos Dove, the Director of Food, Agriculture, and Natural Resources, who represented the SADC Executive Secretary, it is evident that our fisheries resources are facing significant challenges. These challenges include the detrimental effects of overfishing, the presence of illegal, unreported, and unregulated (IUU) fishing activities, pollution, the impact of climate change, and the degradation of habitats.
The delegates were provided with instructions to implement specific measures in order to guarantee the sustainable management of our fisheries and aquaculture resources.
ICCIMA calls for establishing new monetary mechanisms to boost trade with Africa (Tehran Times)
Head of Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) Hossein Selahvarzi has called for forming innovative monetary mechanisms in order to expand trade ties with Africa. Selahvarzi made the remarks in a meeting with Nigeria’s Ambassador to Tehran Yakubu Santuraki Suleiman on Thursday, the ICCIMA portal reported.
Speaking in this meeting, the ICCIMA head pointed to transportation and banking problems as the two main obstacles in the way of developing business relations between Iran and African countries, including Nigeria, and emphasized: “We must focus on finding innovative monetary mechanisms.”
Pandemic Fund Allocates First Grants to Help Countries Be Better Prepared for Future Pandemics (World Bank)
The Pandemic Fund’s Governing Board has approved grants under its first round of funding allocations aimed to boost the resilience to future pandemics in 37 countries across six regions. The selected projects will receive funding to strengthen disease surveillance and early warning, laboratory systems, and health workforce.
Established in September 2022, and formally launched under Indonesia’s G20 Presidency at the G20 meetings in Bali, Indonesia last November, the Pandemic Fund is the first multilateral financing mechanism dedicated to providing multiyear grants to help low- and middle-income countries become better prepared for future pandemics. The Fund, which is hosted by the World Bank, has already raised $2 billion in seed capital from 25 sovereign and philanthropic contributors.
Chair praises “more concrete” farm trade talks as members explore ways forward (WTO)
At agriculture negotiating meetings open to all WTO members on 17-18 July, the Chair — Ambassador Alparslan Acarsoy of Türkiye — praised the more concrete discussions among members on possible ways forward in the run-up to the 13th Ministerial Conference (MC13) in February 2024. He highlighted that MC13 is an important milestone in the negotiating process. “It should deliver on the MC12 commitment of trade ministers to take ‘concrete steps’ to facilitate trade and improve the functioning and long-term resilience of global markets for food and agriculture,” he said.
Related News
tralac Daily News
IMF Executive Board Concludes 2023 Article IV Consultation with Kingdom of Lesotho
Lesotho’s economy continues to face a number of challenges in the wake of the pandemic. Climate shocks, delays to infrastructure projects, high food and fuel prices, declining diamond prices, layoffs in the textiles sector, and weak regional and external demand are weighing on activity. High public expenditure also continues to distort incentives and hinder private sector development.
The government is prioritizing fiscal consolidation on the back of windfall transfers from the Southern African Customs Union (SACU), which have helped alleviate near-term pressures on financing and reserves. However, the fiscal deficit deteriorated to 7.7 percent in FY22/23, due to lower revenue and rigid expenditure, with public debt increasing to almost 60 percent of GDP.
Looking ahead, the outlook is subdued with real GDP projected to grow at 2.1 percent in FY23/24 and average the same over the medium term. In the absence of stronger consolidation, the fiscal position is projected to deteriorate over the medium term due to lower SACU transfers, wage bill pressures, and recapitalization of the pension fund. The government is encouraged to push ahead with upfront growth-friendly fiscal adjustment to ensure debt sustainability and safeguard the exchange rate peg, alongside broad-ranging structural reforms to support the transition from government-centric to private sector-led growth.
Nestlé building $4.5m South Africa plant to boost local production (Supply Management)
Nestlé is spending R79m (around $4.5m) to build a production plant in Babelegi, Hammanskraal to meet local demand and support economic development. The factory will produce a range of coffee mixes in a bid to meet growing demand for the drink in the region, streamline supply chain operations and reduce its environmental impact.
Nestlé, which owns brands including Nescafé and Häagen-Dazs, has seen demand rocket in South Africa since the onset of the pandemic, with three-quarters (75%) of its revenue from across southern and eastern Africa originating from the country.
Nestlé East and Southern Africa region business executive officer for coffee and beverages, Carl Khoury, said: “We are excited to officially open our Nescafé coffee mixes manufacturing plant and demonstrate our dedication to the local market.” He said the move follows national policies including South Africa’s Reconstruction and Recovery Plan to develop infrastructure and industry and enhance its energy and food security. “We take pride in our investment in this production plant as it reflects our dedication to nurturing the potential of the region and contribution to rebuilding the economy,” he continued.
Brics: ‘Farming can fix SA’s post-Covid economic ruin’ (Food For Mzansi)
South Africa’s post-pandemic economic recovery has been sluggish since plummeting in the second quarter of 2020 – when lockdown restrictions were at their most stringent. Supporting agriculture, some believe, is key to turning the tide for South Africa’s economy. This is because it accelerates the development of the agro-food system and creates broad-based welfare gains for all people, agri-economic consultant Tlale Matseke said. Matseke was speaking during a panel discussion at this year’s Brics Youth Summit.
“A key strategy for post-pandemic recovery is supporting growth led by agricultural productivity, because this accelerates the development of the agro-food system and creates broad-based welfare gains for all people,” he said.
Tanzania jumps seven positions in the 2023 ranking of most powerful passports (The Citizen)
In a significant leap, the Tanzanian passport has advanced seven positions in the latest 2023 Henley Passport Index, now securing the 69th spot among the world’s most powerful passports. This marks a substantial improvement from its previous ranking of 76th in 2022. According to the updated ranking, Tanzanian passport holders enjoy visa-free travel to 73 countries.
Within the African continent, South Africa boasts the most powerful passport, holding the 51st position globally, with visa-free access to 106 countries. Botswana follows at 58th place, granting its passport holders access to 89 countries visa-free, while Namibia ranks 62nd, providing visa-free access to 81 countries. Lesotho stands at 64th place, offering visa-free access to 79 countries, and Eswatini occupies the 66th position, granting visa-free access to 77 countries.
US guarded on Kenya trade deal past Agoa expiry (Business Daily)
The US is non-committal about when negotiations for a free trade deal with Kenya will be concluded despite Nairobi earlier saying the talks would be finalised by December. The United States Trade Representative Katherine Tai, who concluded her three-day tour in Nairobi on Wednesday, indicated the US negotiators do not have a deadline for concluding talks or signing the proposed US-Kenya Strategic Trade and Investment Partnership (STIP).
The proposed trade deal, which does not have clauses on tariffs, is expected to shield Kenya in the event that the US Congress chooses not to renew the African Growth and Opportunity Act (Agoa), which gives countries in the sub-Saharan Africa duty- and quota-free access to the American market, when it expires in 2025. Kenya’s Trade Cabinet Secretary Moses Kuria had in March said he expected the negotiators to finalise talks in December to pave the way for the signing of the deal by April 2024.
Global supply constraints bite as maize prices rise in June (KBC)
Kenya’s maize imports fell to 386,864 bags last month compared to a high of 1,169,072 bags reported in March this year according to latest data by the Ministry of Agriculture. The drop last month is despite the government granting importers a four month to bring in maize from outside COMESA and EAC duty-free in order to stabilize maize flour prices.
According to the Food and Nutrition Security Report for June by the ministry, millers attribute the reduction to low supplies in the global market coupled with reduced local demand on account of low consumer purchasing power. “It is further noted that although the government gave a duty-free import window for maize outside EAC and COMESA between April to August 2023, very little has been imported by the legible millers and traders as they report inadequate global supplies, higher freight and insurance costs as well as shortage of the dollar. The imported maize arriving at Mombasa is slightly more expensive compared to local supplies,” the ministry stated in the report.
Trade between UK and Nigeria rises by 78.2% in one year (Businessday NG)
Total trade in goods and services (exports plus imports) between the UK and Nigeria rose by 78.2 percent (or £3.3 billion) to £7.5 billion in the four quarters to the end of Q4 2022, from the four quarters to the end of Q4 2021, according to data from UK’s Trade and Investment Factsheet.
Britain’s export finance agency in 2018 said it would add the naira to its list of “pre-approved currencies”, allowing it to provide financing for transactions with Nigerian businesses denominated in the local currency. The naira will become one of three West African currencies that UK Export Finance has pre-approved for its programme of funding transactions that promote trade with Britain, it said.
Of this £7.5 billion, total UK exports to Nigeria amounted to £4.3 billion in the four quarters to the end of Q4 2022 (an increase of 58.8 percent or £1.6 billion in current prices, compared to the four quarters to the end of Q4 2021). Total UK imports from Nigeria amounted to £3.1 billion in the four quarters to the end of Q4 2022 (an increase of 114.4 percent or £1.7 billion in current prices, compared to the four quarters to the end of Q4 2021).
Equitable Trade Agreements, Regional Trade Will Drive Investment in Africa - Deputy Minister Wolokollie Addresses London Forum (FrontPageAfrica)
Equitable Trade agreements, transparent governance, and regulations driving regional trade are among the policies critical to stimulating trade and investment across Africa. Delivering the keynote address during the thematic discussion on investment and trade in Africa, at the African Achievers’ Awards Annual Lecture in London, United Kingdom, Deputy Finance Minister for Fiscal Affairs, Hon. Samora P.Z. Wolokolie, advanced strategies and partnerships to ensure the benefits of Africa’s vast natural resources for all.
He identified robust infrastructure that will connect the economies of Africa and facilitate regional trade; heralding the African Continental Free Trade Area (AFCFTA) as a vehicle to foster economic integration while enhancing Africa’s competitiveness on the global stage. The engine of the African economies will be led by qualified and trained manpower.
Minister Wolokolie insists that the regulatory framework is also critical for attracting Foreign and Direct investment. “African Governments can create an enabling environment for FDI by implementing transparent regulations, ensuring the rule of law, and providing incentives for investors.” He noted. He advanced public-private partnerships as another dynamic to accelerating economic transformation. He pointed to renewable energy, agriculture, healthcare as well as technology.
How can the East African Community fulfil its FDI potential? (Investment Monitor)
The East African Community (EAC) is a seven-nation bloc that comprises some of the most highly populated and resource-rich countries in Africa. Its combined population of more than 300 million (according to some estimates), its strategically advantageous location, and the access it offers to materials such as liquefied natural gas (LNG), copper, cobalt and nickel means that the bloc is very much on the radar of investors.
However, despite interest from the likes of the EU, the US, the UK and the EAC’s largest foreign investors, China and India, foreign direct investment (FDI) accounts for less than 3% of the EAC’s gross domestic product (GDP) and remains uneven among its members: Burundi, the Democratic Republic of Congo, Kenya, Rwanda, South Sudan, Tanzania and Uganda. Adding to this, sectors vital to EAC economies, such as agriculture, receive little to no foreign investment.
The 2023 Edition of the Africa’s Dynamic Development Report is now available. The latest edition offers a comprehensive overview of economic policies on the continent focusing on the five regions. Drawing from a wide range of data sources to analyse public, private, domestic and foreign sources of investments, the report proposes a new narrative assessing Africa’s economic, social and institutional performance aligned to the African Union Agenda 2063 targets, and explores innovative ways to attract investments that are economically, socially, and environmentally sustainable. It a resource document to inform decision makers, business analysts, private investors, journalists, and other stakeholders on the development trajectories of African countries.
The report whose overarching theme is “investing in sustainable development” shows that Africa’s sustainable financing gap until 2030 is about USD 1.6 trillion, and estimates that the continent needs additional financing of about USD 194 billion annually to achieve the Sustainable Development Goals by 2030. It further shows that the annual sustainable financing gap is equivalent to 7% of Africa’s gross domestic product (GDP) and 34% of its investments in 2021.
Sustainable investments are essential for Africa’s economic, social and environmental development. The report argues that when mobilising and allocating investments, African countries need to manage tensions between economic, social and environmental goals such as productive transformation, social inclusion and resilience to climate change.
Recognizing the fundamental role that agriculture plays in development, the African Union Member States established the Comprehensive Africa Agriculture Development Programme (CAADP), which is a continent wide framework for accelerating broad-based economic growth and progress toward poverty reduction and food and nutrition security through an agriculture-led growth within the decision made by the African Heads of State and Government for 10 year consecutive period made in Maputo (2003-2014) and in Malabo (2014-2025).
In his opening remarks, Dr. Godfrey Bahiigwa, Director of Agriculture and Rural development said that “We need to discuss the various intervention required, outcomes and how to operationalise these outcomes, using our comparative advantage to advance the process.” Dr. Bahiigwa also presented the draft roadmap and emphasized the need for advocacy efforts to improve the understanding of the CAADP value proposition, core principles and values, which in turn should allow member states and other stakeholders adopt and domesticate it widely across the continent, as the overarching policy framework for agricultural transformation.
The 5th AU-EU Agriculture Ministerial Conference convened on 30th June 2023 at the FAO headquarters in Rome, Italy. The Conference brought together representatives from the African Union and European Union Member States as well as the, private sector and civil society to take stock of the achievements made from the last Agriculture Ministerial Conference, and share their experiences towards more sustainable food systems, in light of the responses to the COVID-19 pandemic and to the food security crisis brought by the Russian – Ukraine crisis.
In her opening remarks, H.E Amb. Josefa Sacko emphasised the need to renew commitment to advance agriculture transformation in Africa and Europe, through promoting sustainable investment in agri-food systems, boosting trade and integration, fostering science and innovation, and building climate resilient food systems Trade. “Agriculture, as we all know, lies at the heart of both Africa and European economies and societies. As such, deepening the two continents’ partnership and cooperation in the sector, is of paramount importance for our shared future” she said.
The conference concluded with the announcement of the establishment of an EU-AU Joint Task Force on Fertilisers. This task force aims to address challenges related to fertilizer accessibility and affordability and propose solutions. The key recommendation and actions from the conference included; to strengthen cooperation and accelerate the implementation of AfCTA and global trade, this being the year of trade in Africa, to collectively shape the action and push joint leadership, to identify opportunities to strengthen this cooperation and promote innovative forms of EU-AU partnership in strengthening agri-food systems and to operationalize multilateralism, sustainable and inclusive development, and sustainable growth as key drivers for the achievement of the Comprehensive Africa Agriculture Development Programme (CAADP) Malabo Declaration, Agenda 2063 and the SDGs.
EU concludes Africa-Pacific treaty after Poland drops veto (EURACTIV)
More than two years of delay in ratifying the new EU treaty with African, Caribbean and Pacific countries ended on Thursday (20 July) after Poland confirmed its approval of the agreement. The treaty is set to be formally signed by leaders at a summit in Samoa in the coming weeks.
The Cotonou Partnership Agreement between the EU and 78 African, Caribbean and Pacific (ACP) countries should have expired in February 2020 but was extended until December 2021 after negotiations on a successor deal took longer than planned. Following the delays in ratification in Europe, Cotonou was rolled over until September 2023. The new treaty covers political and economic relations with the 79-member ACP but, unlike its predecessor, does not have an aid component or change EU-African trade relations.
The EU has struggled to finalise Economic Partnership Agreements with various states across the ACP, primarily over fears that they would force developing countries to open their markets to EU firms.
Brics nations considers new members ahead of summit (The East African)
More than 40 countries have expressed interested in joining the Brics group of nations, South Africa’s top diplomat in charge of relations with the bloc said on Thursday. South African Ambassador for Asia Anil Sooklal and officials from the Department of International Relations and Cooperation were addressing journalists in the main commercial city of Johannesburg, a day after South Africa confirmed Russia’s Vladimir Putin would not attend the Brics summit due to take place on August 22-24.
The question of how far and fast to expand the club - centred around Brazil, Russia, India, China and South Africa - is top of the agenda at the summit of nations seeking to offset the perceived hegemony of the US-led West in global affairs.
Aside from the 22 countries that had formally asked to join, Sooklal -- South Africa’s top diplomat in charge of relations with the bloc -- said there was “an equal number of countries that have informally expressed interest in becoming Brics members ... (including) all the major global south countries.”
Ukraine War Looms Large Over Russia-Africa Summit (VOA)
African leaders are to meet with Russian President Vladimir Putin in St. Petersburg at the end of this month for a summit, billed as strengthening cooperation in peace, security, and development. But the second Russia-Africa Summit comes as Moscow continues to wage war against Ukraine. Russia’s invasion has led to higher food and oil prices for many African nations – and prices could rise further after Russia this week pulled out of the Black Sea Grain Initiative, a U.N.-brokered deal that allowed Ukrainian food exports to reach international markets.
Steven Gruzd, who leads the Africa-Russia project at the South African Institute of International Affairs in Johannesburg, said: “They [Russia] are under a lot of pressure with what’s happening in Ukraine and the ramifications of the conflict there in terms of commodity prices, particularly for Africans — and also what’s happening with Wagner and so on — so this an opportunity for Russia to try to assert its place on the global stage as well.” Trade likely will be discussed. “I think there would be talk about trade ... Russia’s trade with Africa is really negligible. China and the EU are by far much bigger trading partners with Africa.”
Behind at halftime, but all still to play for in race to 2030 goals as top political forum closes (UN News)
Over the past ten days, world leaders, policymakers, and key stakeholders gathered to review progress, share experiences, and discuss strategies for advancing sustainable development. Focused on the theme of Sustainable and Resilient Recovery from the COVID-19 Pandemic, this year’s HLPF recognized the unprecedented challenges posed by the global health crisis.
Admitting that the world is “woefully off track” to achieve the SDGs by the 2030 deadline, the Forum discussed the ways to push forward the implementation of five out of the 17 SDGs. They put under scrutiny progress made so far in universal access to clean water, sanitation and power, and reviewed ways to take advantage of new technology, also discussing the crucial role of urban development.
Lachezara Stoeva, President of the Economic and Social Council (ECOSOC), who spearheaded the work of the Forum, emphasized the importance of innovation, technology, and high-impact partnerships. ”We are halfway to 2030 and yet nowhere near to achieving the SDGs. The bad news is we’ve lost seven years. The good news is, we still have seven years and victory is within our reach,” she said.
Trade’s role in climate action in the spotlight at COP28 (UNCTAD)
The Intergovernmental Panel on Climate Change (IPCC) – a body of the world’s leading climate scientists – warns that limiting global warming to 1.5°C will require achieving net-zero CO2 emissions worldwide by 2050. To achieve this, trade must play its part since the global production and distribution of goods and services contributes to roughly a quarter of all emissions.
The upcoming COP28 UN climate summit, slated for 30 November to 12 December in Dubai, will spotlight the role of trade in good and services and trade policy can play in bolstering and accelerating the clean energy transition. The conference, hosted by the United Arab Emirates (UAE), will dedicate an entire day to discussions on trade, the first of its kind within the context of a UN climate conference. “Trade Day” at COP28 will highlight trade’s potential as a catalyst for climate-smart development, focusing on issues like value-chain decarbonization and resilience.
UNCTAD estimates show that trade in environmentally friendly goods – those designed to use fewer resources or cause less pollution – increased by about 4% in the second half of 2022, reaching a record $1.9 trillion. Goods like electric vehicles, non-plastic packaging (+20%), and wind turbines (+10%) saw especially high growth. Trade can provide more countries with access to environmentally preferable goods and services, as well as facilitate the transfer of technologies and know-how to support mitigation and adaptation efforts in all countries.
DG Okonjo-Iweala calls on members to “narrow down realistic deliverables” for MC13 (WTO)
Speaking at a meeting of the WTO’s Trade Negotiations Committee on 20 July which she chairs, Director-General Ngozi Okonjo-Iweala called on members to use a senior government officials’ meeting to take place in October to “narrow down realistic deliverables” for agreement at the WTO’s 13th Ministerial Conference (MC13) in early 2024. Acceptance of the Fisheries Subsidies Agreement by two-thirds of the membership is an area where senior political push will be essential on the road to MC13, the DG told WTO members.
Wheat prices soar for a third day as Russia-Ukraine tensions stoke fears of major food crisis (CNBC)
Wheat prices rose on Thursday after Russia threatened to treat ships heading for Ukrainian ports as military cargo carriers, deepening fears of a global food security crisis. It marks the third consecutive day of price rises. The most actively traded wheat contract on the Chicago Board of Trade was last seen trading around 1.4% higher at 737.6 cents per bushel, notching a three-week high.
The rise follows the Kremlin’s decision Monday to pull out of the Black Sea Grain Initiative, a critically important wartime deal that provided a maritime humanitarian corridor for the export of Ukrainian grain. U.N. chief António Guterres said he “deeply” regretted Russia’s decision to terminate the initiative, which in effect ended a “lifeline” for hundreds of millions across the globe facing hunger, as well as those already struggling with spiraling food costs.
European Union foreign policy chief Josep Borrell said Thursday that Russia’s decision to pull out of the pact would imperil global food security. “What we already know is that this is going to create a big and huge food crisis in the world,” Borrell said Thursday ahead of an EU foreign minister’s meeting.
Food security work programme enters decisive phase (WTO)
The Committee on Agriculture’s food security work programme has entered a decisive phase, with the release of the coordinator’s report outlining his views on where there could be convergence among members. At a meeting on 19 July, members reviewed the report, which focuses on the needs of least-developed countries (LDCs) and net food-importing developing countries (NFIDCs), for the first time, welcoming its circulation and considering it a good basis for further discussions. The aim is to find agreement on recommendations by November 2023.
Third Fossil Fuel Subsidy Reform meeting discusses concrete next steps to advance work (WTO)
At an 18 July meeting, WTO members participating in the Fossil Fuel Subsidy Reform (FFSR) initiative exchanged views on three key areas where work in the WTO could contribute to efforts to advance FFSR, both in the run-up to the WTO’s 13th Ministerial Conference (MC13) in February 2024 and beyond.
Related News
tralac Daily News
South Africa dare not fail in securing future demand for platinum (Engineering News)
South Africa dare not fail in securing future demand for its “incredible” platinum group metals (PGMs) endowment, the Hydrogen Economy Discussion heard on Wednesday.
Anglo American Platinum projects and environment executive head Prakashim Moodliar outlined the widespread marketing effort under way to boost PGMs demand as well as the hugely positive benefit of adoption of the hydrogen economy. Moodliar, a keynote presenter along with German Embassy deputy head of mission Enrico Brandt, revealed the considerable work under way to map South Africa’s Hydrogen Valley further, while Brandt provided insight into the momentous acceptance of hydrogen in Germany.
“The significant growth forecasts for the hydrogen economy will offer significant demand opportunities for metals, including aluminium, copper, iridium, nickel, platinum, palladium and zinc, to support these hydrogen technologies. “This would include metal for renewable electrical technologies, and the electrolysis for renewable hydrogen, carbon storage for low carbon, nitrogen, or fuel cells using hydrogen to power transport.
Anti-dumping duties on frozen chicken up for review (Moneyweb)
Local chicken producers and importers of frozen bone-in chicken portions are gearing up for the upcoming review to reimpose anti-dumping duties against several key trade partners.
The Association of Meat Importers and Exporters (Amie) published a lengthy report arguing that the duties will have a detrimental impact on consumers and food security. The South African Poultry Association (Sapa) prepared an equally lengthy report warning against “superficial and overstated” assumptions about chicken price increases due to import duties without a proper analysis of all the factors.
The International Trade Administration Commission (Itac) introduced provisional duties against Brazil, Denmark, Ireland, Poland and Spain for six months from January to June last year. Following input from the affected countries, Itac recommended the imposition of final anti-dumping duties for a period of five years against these countries. Minister of Trade, Industry and Competition Ebrahim Patel agreed that the countries were in fact dumping their produce in the South African Customs Union (Sacu) market, causing material harm to the local industry.
However, Patel suspended the imposition of the duties for 12 months until August this year. His reason: the impact of high food inflation on struggling South Africans.
Climate commission welcomes publishing of draft SA renewable energy plan (SAnews)
The Presidential Climate Commission (PCC) has welcomed the publishing for comments of the draft South Africa Renewable Energy Masterplan (SAREM). The Department of Mineral Resources and Energy published the draft masterplan for comments on Monday. The SAREM is a document 18 months in the making with the DMRE holding extensive consultations with stakeholders, industry experts, labour and other government departments.
“The SAREM heralds a new impetus for our country’s renewable energy drive and ambition. To this end, as PCC we welcome the four priorities as outlined in SAREM being: Supporting the local demand for renewable energy by unlocking market demand and system readiness, driving industrial development by building renewable energy value chains, and supportive trade and industrial policy, fostering inclusive development through transformation, supporting the development of emerging suppliers and building local capabilities in skills and innovation and associated industrial development.
“The PCC therefore acknowledges the SAREM as a catalytic contribution to our country’s transition to a net zero carbon future and provides a baseline for social consensus and further detailed planning and implementation of essential projects and programmes to achieve our objectives by 2030,” the commission said.
EU-Kenya deal paints gloomy picture for EAC trade ties (Monitor)
The Economic Partnership Agreement (EPAs), a pact that is looking to flung open the Least Developed Countries (LDCs) market for the European Union (EU) countries manufactured goods, has started disintegrating the East African Community (EAC) bloc silently, Prosper Magazine can reveal.
According to the agreement, the EAC has offered to liberalise 82.6 per cent of her imports from the EU over a 25-year transition period by initially liberalising 65.4 per cent on entry into force of the agreement. An expert analysis of the agreement in a paper titled: ‘The inherent dangers for the EAC signing the EAC-EU EPA,’ reveals that this liberalisation is taking a static approach to development, considering that it does not envisage Uganda and the East African region as whole graduating to producing either industrial inputs or capital goods – which is absurd.
On June 9th, 2023, the EU and Kenya announced the political conclusion of the negotiations for an Economic Partnership Agreement. The Agreement will undergo legal scrubbing and translation before signature and conclusion by the EU Council, upon which the EU and Kenya can sign and ratify. This has since renewed debate on whether the EPA, which the EU has been relentlessly pushing as its cardinal trade policy instrument, is the right tool to shape the Afro-Euro relationship.
Kenya-COMESA Deal To Increase Cross Border Trade (Kenyan Wallstreet)
Fish traders are among those set to benefit from an agreement recently signed between COMESA and the government aimed at improving participation in cross-border trade within the Eastern Africa Region.
The agreement provides technical assistance to enhance market access, expansion of value chains through the RECAMP (Regional Enterprise Competitiveness and Access to Markets Programme).The project is aimed at increasing the effective participation of Fish Traders in cross-border trade within the Eastern Africa Region by working with Non-State Actors through the Eastern Africa Platform of Non-State Actors in Fisheries and Aquaculture (EARFISH).,
With an allocation of EUR 142,177.2, the project is part of the EUR 8.8million RECAMP which aims to increase private sector participation in sustainable regional and global value chains through improved investment/business climate and enhanced competitiveness in the COMESA region.
A total of €2,349,790 million has been allocated to the sub-delegation agreement under the European Union funded Trade Facilitation Programme (TFP), a project aimed at enhancing Kenya’s progressive participation in the regional and international integration agenda through the progressive removal of trade barriers at the border.
Uganda records its largest investment in green oil field, earning Shs 5.57 trillion ($1.5 billion) in 2022 (Business Insider Africa)
According to the United Nations Conference on Trade and Development (UNCTAD), the Shs 1.55 trillion was the largest recorded in the East African sub continent, during the period under review.
The investment was majorly fueled by the joint venture between the China National Offshore Oil Corporation (CNOOC) and the Ugandan National Oil Company in Lake Albert’s oil field worth Shs23.7 trillion. Other comparable oil investments in Uganda include the Shs 12.8 trillion, 1440-kilometer East African Crude Oil pipeline, which is intended to transport oil from Uganda’s Lake Albert to Tanzania’s Tanga ports for export.
According to UNCTAD, the subcontinent’s FDI was an impressive Shs 31.7 trillion, with increases recorded across different countries. Kenya increased to Shs 2.77 trillion, Tanzania’s FDI rose to Shs 4 trillion, and Uganda’s FDI exceeded EAC’s growth projection of 3%. Regardless of the growth, the country via the Uganda Investment Authoruity (UIA) notes that the country’s FDI has underperformed, as more is required to foster the level of development Uganda aspires to.
New Malawi Economic Update Calls for Urgent Action to Address Macroeconomic Imbalances and Increase Energy Access (World Bank)
Malawi’s path towards achieving the goals of its long-term development vision, Malawi 2063, remains feasible but narrow, according to the latest World Bank Malawi Economic Monitor (MEM), Powering Malawi’s Growth: Rapidly and Sustainably Increasing Energy Access. This is because a prolonged macro-fiscal crisis, exacerbated by extreme weather events, a slow debt restructuring process, and delayed governance reforms have subdued economic growth. The new MEM says improvements in political commitment and investment, and reforms in the energy sector could help growth by pushing access to electricity above 50% by 2030.
“Malawi’s economy is weakened by foreign exchange shortages that constrain the import of essential commodities and inputs, and that lower agricultural output, as well as by erratic electricity supply and the increasing frequency of natural disasters. Its ‘polycrisis’ needs urgent movement on reforms that promote macroeconomic policy and governance, as well as a wide range of policy responses in energy, agriculture, climate adaptation, and resilience to create a stronger foundation for economic growth,” says Hugh Riddell, World Bank Country Manager for Malawi.
Ghana’s Economy Expected to Recover Its Potential By 2025, says World Bank Report (World Bank)
A combination of domestic imbalances and external shocks in 2022, led to macroeconomic challenges in Ghana. The year was marked by currency depreciation, rising inflation, and tumbling investor confidence. Pre-existing fiscal vulnerabilities such as mounting debt burden, a rigid budget weakened by high energy sector costs and chronically low public revenues, were deepened by difficult global economic conditions notes the World Bank’s latest Economic Update.
The report titled “Price Surge: Unraveling Inflation’s Toll on Poverty and Food Security” states that Ghana faces an extremely challenging outlook, and the economic situation is likely to remain challenging before it rebounds.
The report recommends that in addition to managing the immediate macroeconomic crisis, the authorities would be well served by embarking on structural reforms to tackle its root causes, boost economic growth, and build economic resilience. “In the longer term, to mitigate the impact of inflation on food security, policymakers must enable farmers to adjust to global demand and take advantage of market opportunities” said Ashwini Sebastian, Senior Agricultural Economist, and co-author “This is particularly relevant since many of the poor are farming households. Policies should therefore be evidence based and aimed at alleviating the different constraints farmers face.”
Liberia Economic Update: Improved Rice Production Is Critical for Food Security and Poverty Alleviation (World Bank)
The World Bank today launched the Fourth Edition of its annual Liberia Economic Update, “Getting Rice Right for Productivity and Poverty Alleviation.” According to the report, growth in the agricultural sector accelerated to 5.9% in 2022 from 3.3% in 2021. Increased crop production, especially rice and cassava produced primarily for domestic consumption, was the main driver of growth in the agriculture sector.
“Despite the rebound in growth led by mining and a relatively good agricultural harvest during the year, food insecurity remains a major challenge for Liberia, with more than four-fifths of the population facing moderate or severe food insecurity,” said Mack Capehart Mulbah, Acting World Bank Country Manager for Liberia. “The strong preference for rice among Liberians makes it integral to the country’s food security, poverty alleviation, and efforts to address vulnerabilities.”
Guinea suspends agricultural exports to preserve stocks (Africanews)
Guinea’s ruling junta has suspended the export of several agricultural products, including rice, potatoes, and palm oil, for six months to preserve its “food sovereignty” and “social peace”. This decision is linked to the concern to preserve stocks before the next harvests, and “not at all” to the expiry on Monday of the agreement between Moscow and Kiev, which allowed Ukraine to export cereals, notably to Africa, despite the war, the Guinean Ministry of Trade said.
The suspension of exports concerns around fifteen staple foods (rice, onions, potatoes, dried chilli peppers, fresh chilli peppers, aubergines, okra, fresh tomatoes, taro, cassava, maize, cassava, and maize flours, yams, sweet potatoes, and palm oil), the ministry said in a statement dated Monday and sent to AFP on Tuesday. Exports of these products are “prohibited for a period of six months”, on pain of fines or even criminal prosecution, it warned.
Guinea, one of the poorest countries in the world despite its rich subsoil (iron, bauxite, and gold in particular), usually exports these agricultural products to many West African countries.
Tunisia narrows food trade balance deficit (Agência de Notícias Brasil-Árabe)
Tunisia narrowed its food trade balance deficit to TNT 538.8 billion (USD 177 million) at the end of June 2023, compared with TND 1,012.5 million (USD 332 million) during the same period in 2022, leading to an improvement in the coverage rate to 86.6%, the National Observatory of Agriculture (ONAGRI) said on Monday, as per reported by TAP state news agency.
In terms of value, food exports rose by 10.3%, while imports fell by 3.5%. The decline in the deficit is mainly the result of the rise by 36.3% in olive oil exports and the fall by 15.7% in grain imports, despite the increase in imports of sugar by 118.2%, and milk and milk by-products by 61.8%. Export prices were up for olive oil, tomatoes, citrus fruits, and dates. Import prices for grain were down by 22.1% for durum wheat, by 16.1% for common wheat, 12.8% for maize and 15.0% for corn.
Mozambique and UAE negotiate creation of free trade area (Club of Mozambique)
Mozambique and the United Arab Emirates (UAE) are negotiating a Comprehensive Economic Partnership Agreement (CEPA), creating a free trade area for goods, services and investment, the UAE Embassy in Maputo announced on Monday. In a statement, the Embassy of the United Arab Emirates said that the two countries are working on the “removal of trade and investment barriers in a wide range of goods and services with a view to promoting non-petroleum bilateral trade between the two”.
“For this purpose, the Embassy of the United Arab Emirates in Mozambique has added advantages to economic partnerships through ongoing negotiations which could culminate in the coming months with the signing of the Comprehensive Economic Partnership Agreement (CEPA) which covers several economic areas that have as a vision the establishment of a Free Trade Area that attracts opportunities for access to markets for goods, services and investment between the parties,” the statement reads.
“With the signing of the joint declaration of intentions for the launch of CEPA negotiations, the UAE undertakes to strengthen its long-term economic partnership with Mozambique”, the statement continues.
The African Union 5th Mid-Year Coordination Meeting, MYCM, concluded on 16th July with the adoption of a Declaration by the Heads of State and Government representing the Bureau of the Assembly of the African Union, and Chairpersons of the eight (8) Regional Economic Communities (RECs), and the Regional Mechanisms (RMs). The declaration emphasises on the need to hasten Africa’s integration process to tackle the challenges caused by globalization, and the importance of the harmonization of national and regional policies to promote socio-economic development.
H.E. Moussa Faki Mahamat, Chairperson of the African Union Commission stated that the integration process would be hampered by structural constraints such as the funding gap for the implementation of the infrastructure programme at the continental level, the deterioration of the peace and security situation in Africa, the delays in transforming productive structures in a logic that includes women and youth as entrepreneurs of progress and as a protective shield against extremism and terrorism, and the delay in the ratification of the Protocol on the free movement of persons and goods.
With efforts geared towards the acceleration of the AfCFTA, the African Union theme for year 2023, closing the infrastructure development gap is key to attracting investment and boosting intra-African trade.
H.E. Azali Assoumani, President of the Union of The Comoros and Chairperson of the African Union for 2023, noted that the development of maritime transport is one of the key factors for the success of Africa’s economic integration.
“Indeed, intra-African trade is mainly carried out by road and sea. It is now established that the implementation of the AfCFTA could double sea freight, from 58 to 131.5 million tonnes. The island states of Africa, despite their structural fragilities, are full of opportunities and potential, given the vastness of their maritime space.”
The Third (3rd) Extraordinary Meeting of the AfCFTA Council of Ministers Responsible For Trade (AfCFTA Secretariat)
The 3rd Extraordinary Meeting of the Council of Ministers of the African Continental Free Trade Area (AfCFTA), was held from 12-13 July 2023 in Nairobi, Kenya. The importance of this assembly is reflected in the need to conclude the outstanding Rules of Origin in the Automotive and Textiles sectors and to consider other crucial trade protocols.
The Rules of Origin are pivotal in defining the economic architecture of the AfCFTA. Simply put, they are the criteria used to determine the nationality of a product, meaning they decide whether a product can benefit from preferential treatment under the free trade agreement. This is especially relevant in sectors such as automotive and textiles, both of which are significant contributors to Africa’s industrial and manufacturing growth.
In textiles, a clear, stringent, and well-enforced Rules of Origin can help protect and nurture the local textile industries from being undermined by cheap imports. The same logic applies to the automotive sector, which has the potential to generate substantial employment and develop ancillary industries. Ensuring that the benefits of the AfCFTA flow to the manufacturers genuinely located within Africa, rather than those simply rerouting their products through it, is the primary purpose of these Rules of Origin.
Africa’s Energy Experts Forge a Common Strategy to Transform the Continent’s Power Infrastructure (NEPAD)
Significant strides have been made in the establishment of the African Single Electricity Market (AfSEM) and the development of the Continental Power Systems Master Plan (CMP), paving the way for major developments to come in the energy sector.
The importance of a well-coordinated strategy to modernise Africa’s power infrastructure cannot be overstated. It is projected that the demand for electricity in the continent will triple by 2040, industrialisation, rapid urbanisation, the growing middle class, and climate change, among other driving factors.
On the 3rd -5th July 2023, energy stakeholders convened in Cotonou, Benin, to chart the path forward for the CMP and AfSEM initiatives, aiming to provide Africa with a reliable and sustainable power supply to meet the growing demands of its population. Major developments are on the horizon as the CMP work plan enters its final development phase to produce an optimised integrated generation and transmission expansion plan for 2023-2040.
A regional review meeting recently took place in Cape Town to incorporate Africa’s perspective into the United Nations Global Digital Compact (GDC) and promote a more inclusive and equitable digital future. The meeting reflected on key themes: Africa’s infrastructure development, digital public goods, digital trust, data protection, human rights, regulation of emerging technologies such as AI. Experts, policymakers, and stakeholders from 32 member states representing government, private sector, civil society, and academia attended the meeting to provide technical inputs.
In his opening remarks, Fayaz King, representing the Office of the Secretary General’s Envoy on Technology, emphasized the need for Africa to take a central role in shaping the GDC. He highlighted the importance of ensuring that Africa is “not just a provider of data to a small group of entities’ but should also actively participate in shaping its digital future. He called for the “development of standards for data interoperability and effective regulations that go beyond self-regulation,” while also stressing the significance of regulating AI and handling data in a manner that informs decision-makers and serves the common good.
Agri trade to be new frontier in joint biz (China Daily)
China’s efforts to diversify its import of African agricultural products will enhance bilateral trade and create fresh opportunities for its companies to invest in countries in Africa, said government officials and business owners. Eager to boost trade value, China and a number of African countries including Madagascar, Zimbabwe, the Central African Republic and Ethiopia, jointly proposed the establishment of a liaison mechanism for sanitary and phytosanitary (SPS) cooperation in late June.
The initiative aims to align inspection and quarantine standards and rules, facilitating the export of agricultural food products from Africa to China. It represents a significant step forward in promoting trade and economic cooperation between the two sides, according to China’s General Administration of Customs.
The trade value of agricultural products between China and Africa has jumped from 33.3 billion yuan ($4.6 billion) in 2012 to 58.6 billion yuan in 2022, with an average annual growth rate of 5.8 percent, data from the GAC showed. Africa mainly exports aquatic products, honey, sesame, peanuts, tobacco, wool, cotton, soybeans, coffee and fruit to China. Trade volume in this category soared 20.4 percent year-on-year to 26.6 billion yuan in the first five months of this year.
The proposed liaison mechanism for SPS cooperation underscores the commitment of both China and African countries to create a more efficient and streamlined process for the export of agricultural food products, said Sam Dalitso Kawale, Malawi’s minister of agriculture.
Russian President will not attend BRICS Summit (SAnews)
The Presidency has confirmed that President of the Russian Federation Vladimir Putin will not attend the 15th Summit of BRICS - however, the Russian Federation will be represented by Foreign Minister Sergey Lavrov. “By mutual agreement, President Vladimir Putin of the Russian Federation will not attend the Summit but the Russian Federation will be represented by Foreign Minister, Mr Sergey Lavrov,” the Presidency said on Wednesday.
President Ramaphosa has in recent months and weeks held a number of consultations on the hosting of the Summit. The President’s most recent consultation in this regard took place on Tuesday night at the BRICS Political Party Dialogue in Gauteng.
This will be the first BRICS Summit to be hosted in person since the emergence of the COVID-19 pandemic and the subsequent global restrictions.
Multi-Year Expert Meeting on Transport, Trade Logistics and Trade Facilitation, tenth session (UNCTAD)
Trade facilitation reforms have been advancing considerably in recent years, in particular with the entry into force of the Agreement on Trade Facilitation of the World Trade Organization in 2017 and the inclusion of dedicated trade facilitation provisions in many regional trade agreements.
The implementation of trade facilitation reforms is challenging, as evidenced by experiences in implementing the Agreement on Trade Facilitation. In particular, developing countries and vulnerable economies, such as the least developed countries, landlocked developing countries and small island developing States, are required to address many trade facilitation implementation issues at the same time, and often embark on trade facilitation reforms from a less advanced starting point, thus facing the need for knowledge acquisition and the need to make policy and implementation decisions, as well as funding requirements related to all issues, in a relatively short time frame.
The tenth session of the Multi-year Expert Meeting on Transport, Trade Logistics and Trade Facilitation provides an opportunity to reflect on the key issues at stake, review good practices, provide recommendations on the best way forward, identify priority action areas, in particular for the most vulnerable group of countries, among these the least developed countries, landlocked developing countries and small island developing States, and define the role of relevant stakeholders, including from government, industry, the public and private sectors, development partners and financial institutions.
African Union expresses ‘regret’ over Russia’s exit from Ukraine grain deal (The Straits Times)
The African Union (AU) expressed “regret” on Tuesday over Russia’s decision to suspend a deal allowing safe passage for grain cargo ships from Ukrainian Black Sea ports. “I regret the suspension of the Black Sea Grain Initiative for which the African Union had been an early advocate,” AU Commission chair Moussa Faki Mahamat said on his official Twitter account.
“I urge parties to resolve any issues to resume the continued safe passage of grains & fertiliser from Ukraine and Russia to where it is needed, particularly in Africa.”
On Monday, Russia refused to extend that agreement, threatening to cut off already reduced food supplies on which vulnerable populations in grain importing nations are dependent. Humanitarian groups say it will be acutely felt in many parts of Africa, which is heavily reliant on grain from Russia and Ukraine, and where millions of people are already facing crisis levels of hunger.
MDBs need to provide $260 bn more annually to fund sustainable infra projects: G20 expert group (Devdiscourse)
Multilateral development banks (MDBs) need to provide an additional USD 260 billion annually to fund sustainable infrastructure and help nations achieve SDG targets, a G20 expert group report said. According to the report titled ‘Strengthening MDBs: The Triple Agenda’, additional spending of some USD 3 trillion per year is needed by 2030, of which USD 1.8 trillion represents additional investments in climate action, mostly in sustainable infrastructure, and USD 1.2 trillion in additional spending to attain other sustainable development goals (SDGs).
‘‘MDBs should provide an incremental USD 260 billion of the additional annual official financing, of which USD 200 billion in non-concessional lending, and help mobilise and catalyse most of the associated private finance,’’ the report said.
The report further said that the international development finance system should be designed to support this spending by providing USD 500 billion in additional annual official external financing by 2030, of which one-third in concessional funds and non-debt-creating financing and two-thirds in the form of non-concessional official lending.
Related News
First shipment of resin exported to Cameroon under AfCFTA
Tunisia on July 17 exported its first shipment of resin to Cameroon under the African Continental Free Trade Area (AfCFTA), announced the Export Promotion Centre (CEPEX).
Customs clearance of the shipment, which includes 60 tonnes of resin worth €90,000 (around TND 204,000), was carried out by the Cameroonian institution of the “Port Autonome de Kribi” (PAK).
This operation marks a decisive step towards closer economic cooperation within the AfCFTA, added CEPEX in a press release issued on Tuesday.
“It will offer opportunities for fruitful exchanges between the participating countries and pave the way for a promising future for Africa’s economic integration.”
Tunisia’s Ambassador to Yaoundé Karim Ben Bécher underlined the importance of this first operation between Tunisia and Cameroon, which remains Tunisia’s leading partner in Central Africa and its 4th largest client in sub-Saharan Africa.
“This operation will be the cornerstone for the launch of a new era of pan-African trade,” he said.
Cameroon’s Minister of Trade, Luc-Magloire Mbarga Atangana reiterated for his part, the need to step up product export operations to ensure the effective inclusion of African countries in the AfCFTA.
He pointed to the need to develop the services associated with this trade, to help Africa produce what it consumes and consume what it produces.
The Ministry of Trade and Export Development announced on May 17, 2023 that two Tunisian export companies operating in the chemicals and food industries had been awarded the first certificates of origin under the AfCFTA agreement to export to Cameroon.
The certificate of origin, which is considered a key element in the effective entry into force of the agreement, will allow companies to benefit from the reductions in customs duties that are due to be abolished within two years.
Tunisia, Cameroon and six other member states (Egypt, Ghana, Rwanda, Kenya, Tanzania and Mauritius) joined the AfCFTA, which aims to facilitate trade through a selection of companies and products for export and import between member states.
The AfCFTA agreement came into force in May 2019. It was ratified by Tunisia on August 7, 2020. It is one of the African Union’s (AU) flagship projects that seeks to boost South-South cooperation for an “integrated, prosperous and peaceful” Africa, in line with the AU’s Agenda 2063, and to cement trade relations between the union’s 55 member states, in a market totalling over 300 million consumers and $3,400 billion in annual trade.
The agreement aims to remove customs barriers to the free movement of goods and services between African countries.
Related News
tralac Daily News
South Africa needs to embrace more 4IR technology or fall behind (Engineering News)
Professional services and auditing firm PwC says that South Africa’s competitors are all adopting 4IR technologies and developing their workforces and, if South Africa fails to follow suit, the country’s industrial manufacturing sector will continue to fall behind and deindustrialise.
PwC believes South Africa has positioned itself as a prime manufacturing hub on the African continent, with its industrial manufacturing industry serving as a crucial multiplier of economic growth, an engine of development and a significant contributor to the country’s gross domestic product (GDP). In 2022, the sector contributed 11.4%, or R3-trillion, towards the country’s GDP. Today, about 1.5-million people work in industrial manufacturing, and are witnessing progression at a rapid pace within the sector.
“New technologies are changing the face of manufacturing. Factories are becoming increasingly connected, as machines talk to one another and to humans, and automation reaches new milestones with robots becoming more independent. “This has understandably left groups of employees jittery over the Fourth Industrial Revolution’s (4IR’s) impact on job security and changing roles,” PwC South Africa smart manufacturing lead Vinesh Maharaj says.
GITFiC draws action plan for succeeding months (Ghana News Agency)
After successfully hosting the 7th annual Ghana International Trade and Finance Conference (GITFiC) at Senchi in the Eastern region they have followed up with an action plan that will guide their activities in the coming days. A statement signed by Mr Selassi Koffi Ackom, Chief Executive Officer of the GITFiC and copied to the Ghana News Agency in Accra named creation of African Single Currency, trade investment and dispute resolution, as major issues to be tackled for its success.
The plan according to the statement will include the involvement of Existing Monetary Unions, promote research into progress and lessons by existing Monetary Unions such as WAEMU and CEMAC, to facilitate unified Single Currency and to harmonise local financial rules with AfCFTA protocols.
It said the Regional Monetary Institutes would also deal with missed deadlines on implementation of single currency, develop National Programmes to meet macroeconomic convergence criteria within the shortest possible time and set time-bound targets on single inflation rate, budget deficit reduction towards an African single currency.
Intra-Africa trade offers tea farmers golden opportunity (The Standard)
Intra-Africa trade presents a big opportunity for Kenyan smallholder tea farmers to secure an additional market and improve their income. According to Central Bank of Kenya figures, Africa accounted for only 19.4 per cent of Kenya’s Sh827.2 billion total trade value in the first three months of 2023, a slight growth compared to 18.3 per cent in 2022.
With about 1.4 billion people, Africa presents a huge market opportunity for our tea. Better still, Africa’s population is projected to reach 2.5 billion by 2050. Since assuming office, President William Ruto and his administration have held engagements with several African nations on matters trade.
The President has taken a leading role in championing removal of trade barriers among African countries to ease movement of goods, services and labour. Kenya’s profile at continental level has since, improved immensely. This is good news to our smallholder tea farmer. Kenya’s tea subsector can tap into this improved visibility to market local tea within the continent.
East Africa’s textile industry falters on low investments (The East African)
Although East Africa has a massive capacity to produce cotton textiles and apparel given the availability of raw materials and human capital, the region scores relatively low in consumption of local textile products. Over 70 percent of apparel sold in East Africa is imported second-hand clothes, while apparel companies based in Kenya export a majority of their products, particularly to the US.
Kenya and Ethiopia are the leading exporters of textiles and apparel to the US under the African Growth and Opportunity Act (Agoa), but with raw materials sourced outside at the expense of locally produced cotton and yarn.
According to the Kenya Institute for Public Policy Research and Analysis (Kippra), 70 percent of Kenyan apparel companies sell about 80 percent of their products to US markets. Nairobi’s export processing zones (EPZs) host 21 apparel companies that manufacture garments primarily for export under Agoa.
Africa, which ranks among the highest producers of raw materials for textiles and garments including cotton globally, ranks last in consumption of its own textiles, thanks to a thriving second-hand clothing industry dominated by the US and China.
Mobile money wallet users growing in Tanzania (The East African)
Mobile money wallets are gaining traction as the preferred mode of payment for business and other financial transactions in Tanzania compared to other electronic options or even cash, according to two newly released study findings. In its analysis of trade trends in Tanzania over 2022, Standard Bank (Stanbic) said Tanzania differed from other countries in Africa where cash payments have taken the lead and mobile money hasn’t really caught on as fast.
“In terms of the financial behaviour of traders (in Tanzania), when it comes to methods of payment for sales there was a shift from electronic bank transfers to mobile money. This indicates that mobile money has become more popular, and EFTs are falling out of favour for payment received from sales,” Stanbic said in its Trade Barometer report for Tanzania which became available during the last week of June.
Stanbic’s analysis effectively supported FinScope Tanzania’s 2023 report which said an increased uptake of mobile money services among adult Tanzanians, from 60 to 72 percent since 2017, has contributed “significantly” to the expansion of financial inclusion levels in the country.
Car dealers protest increase of import duty to 35 percent (Business Daily)
Car importers have protested a decision to increase import duty to 35 percent on motor vehicles, saying the new rates were implemented without public participation. Car Importers Association of Kenya chairman Peter Otieno said implementation of the 35 percent import duty on Kenyan car buyers must be halted because industry players were not consulted before implementation, which is against the Constitution.
The new import tax, he said, means that vehicle importers must adjust their sale prices upwards by between Sh50,000 to Sh100,000 for small models of cars and by more than Sh500,000 for fuel-guzzlers as they factor in the tax when selling their vehicles.
“What we mean to say is that no public participation was conducted and we cannot accept these amendments whether they have been done through Kenya or East African Community,” said Mr Otieno in a letter to the Kenya Revenue Authority (KRA). “We believe that the Constitution is supreme and the public participation was necessary as the Constitution so dictates that anything touching on the livelihood of the other, the involvement of key stakeholders is paramount.”
FDI flows from Russia to Ethiopia (New Business Ethiopia)
In recent years, Russian investors have shown an increasing interest in investing in Ethiopia, a country located in the Horn of Africa. Investment opportunities exist in sectors such as energy, mining, agriculture, and manufacturing. However, various challenges need to be addressed to fully realize the potential for increased trade and investment between the two countries.
Russian Foreign Direct Investment (FDI) in Ethiopia has been primarily focused on sectors such as energy, agriculture, manufacturing, and infrastructure development. One notable example is the involvement of Russian companies in Ethiopia’s energy sector. Furthermore, Russian investors have also shown interest in Ethiopia’s agricultural sector. Russian investors have also explored opportunities in manufacturing and infrastructure development.
Proactive collaboration needed to realise benefits of AfCFTA (SAnews)
Realising the benefits and opportunities of the African Continental Free Trade Agreement (AfCFTA) requires proactive collaboration between all levels of government and businesses, says Director of Africa Bilateral Economic Trade at the Department of Trade, Industry and Competition, Calvin Phume. Phume was addressing the AfCFTA awareness workshop, which took place in Bloemfontein, in the Free State.
Phume said beyond the policy transformation and reforms, the AfCFTA seeks to ensure inclusivity of women and youth, including youth in the rural areas, development of SMMEs and overall industrialisation of the Continent.
Phume said the AfCFTA encourages innovation, fosters competition and promotes the development of value-chains, thereby spurring industrialisation and job creation across sectors.
African Economic Outlook 2023: Opportunities abound for Asian investors in Africa, experts (AfDB)
Africa offers vast investment opportunities for Asian countries with the appropriate incentives for their private sectors, Prof. Kevin Urama, Chief Economist and vice president of the African Development Bank Group, has affirmed. Urama made the call during a webinar to discuss the 2023 edition of the African Economic Outlook report. The African Development Bank organized the session jointly with the Korea Institute for International Economic Policy (KIEP) in Sejong-Si, Korea.
The report shows that Africa has remained broadly resilient despite experiencing significant shocks, particularly from the Covid-19 pandemic, climate change, and the Russian invasion of Ukraine. From an economic growth of 3.8% in 2022, the continent is set to climb to 4.1% in 2023 and 2024, exceeding the global average by 2.9% and the European average by 1.1%, according to the report, which estimates that growth in Asia would be higher, at 4.3%.
Urama said, “Africa must play a key role in the green transition, given that it is home to 60% of the world’s unexploited arable land and the minerals needed for green growth.” He said these resources could stimulate sustainable development and investments. “This is virgin land, which can be easily used to build low-carbon infrastructure without large-scale expenditure.”
Sung-Chun Jung, vice president of KIEP, highlighted Africa’s vast potential for green growth, considering its fast-growing population and abundant renewable energy and natural resources. “The international community must provide strong support for the efforts by African countries to combat climate change, particularly through funding, technology transfers and capacity building,” he said, adding that the private sector must play a more significant role in covering the funding gap to tackle climate change.
Time to Revalue African Economies, African Development Bank Chief Says (VOA)
The year 2023 has so far not been a good one for Africa. Conflict has erupted in Sudan, deepened in the Democratic Republic of Congo and spread southward from the Sahel. Extreme weather, often attributed to climate change, has triggered devastating droughts and floods in places like Kenya and South Sudan, deepening poverty. Many African economies are struggling under massive debt.
But the head of the African Development Bank, or AfDB, prefers to focus on the continent’s promise: notably, how to better harness its assets — from its massive natural resource wealth to its large and young workforce — to fight climate change, invest in sustainable development and green and grow economies.
“I’ve been pushing that we need to revalue our countries based on their natural capital,” the bank’s president, Akinwumi Adesina, told VOA during a recent trip to Paris. “This fundamentally for me is how we are going get a lot of capital going into Africa,” he added, “by the greening of African economies, by the proper valuation of carbon” that contributes to rising emissions but can also be stored and sequestered in areas rich in land and forests.
Adesina also denounced loans repaid by depleting Africa’s rich trove of natural resources — from timber and oil and gas to diamonds and rare earth metals, like cobalt, that are key for electric vehicles — with often disastrous environmental consequences.
“Natural resource-backed loans should stop completely,” said Adesina, without naming any particular country. “They should never be on the table. They are toxic, non-transparent debt, which mortgages the future of countries.”
The Regional Economic Communities (RECs) and the African Union Development Agency (AUDA-NEPAD) recently convened in Nairobi, Kenya to review the proposed programme for their joint resource mobilization campaign. This campaign is designed to accelerate the execution of the Agenda 2063 Second Ten-Year Implementation Plan (STYIP) and foster regional integration towards the African Economic Community (AEC).
H.E Ms. Nardos Bekele-Thomas, the CEO of AUDA-NEPAD emphasized the pressing need for coordinated collective action to tackle Africa’s development challenges. She stressed the importance of partnerships, aligning priorities, and harnessing and deploying resources effectively to accelerate the achievement of Agenda 2063.
The joint sitting highlighted the significance of the Agenda 2063 STYIP as the continental strategy guiding the joint resource mobilization programme document and its implementation. The need for a continental Project Preparation Unit covering all priority sectors was also discussed along with the establishment of a comprehensive project database similar to PIDA.
African Development Bank Group President Dr Akinwumi Adesina on Sunday, outlined the Bank’s significant achievements and commitments to Africa, underscoring the Bank’s determination to mobilise resources for driving economic transformation, climate resilience, and addressing the continent’s debt challenge, among other priorities.
Addressing the 5th Mid-Year Coordination Meeting of the African Union (AU) in Nairobi, Kenya, Adesina spoke about the Bank’s significant investments, including spending $44 billion in regional and national infrastructure projects over the past seven years.
Since last year, African leaders have been calling for an additional $100 billion in SDRs for the continent, and that a share of this be re-channelled through the African Development Bank, which is a prescribed holder of SDRs. The initiative, which won plaudits from United Nations Secretary-General António Guterres and other world leaders, would enable the African Development Bank to leverage the SDRs by a factor four and deliver significant resources for the continent.
“We must decisively tackle Africa’s rising debt challenge,” Adesina urged, expressing concern at the continent’s total debt stock, which stands at $1.3 trillion. The cost of debt servicing reached $22 billion in 2022 and is expected to rise this year.
However, the Bank President said Africa needed to change its approach to debt and called for an end to all natural resource-backed loans. He said: “They are not in the interest of Africa, as they are non-transparent. They undervalue resource assets, and pawn national assets.” He said natural resource-backed loans had led to “predatory creditor lending practices that are leaving borrowing countries worse off.”
Development partners not responding appropriately to African economic transformation needs: Sisi (Ahram Online)
El-Sisi made the remarks on Sunday during the Africa Blue Economy Strategy session as part of the Fifth Mid-Year Coordination Meeting (MYCM). The president highlighted the African needs for implementing economic transformation, redirecting sectors like energy, transportation and agriculture and preserving biodiversity and the ecosystems, while also achieving the sustainable development goals.
El-Sisi presented Egypt’s vision about what is needed to achieve economic transformation. Equity and justice must be the focus. The required transformation must take into consideration economic and social aspects. Unilateral measures that impact international trade flows must be avoided, especially with regard to exports of the developing and African states.
Regional cooperation must be enhanced to ensure the development of capabilities for preserving shared ecosystems and also to ensure that the states achieve integrated benefits and contain any negative transboundary effects.
We can build a thriving Africa with our resources (The Star)
President William Ruto has said it is possible to build a more integrated, prosperous, and stable Africa using the continent’s resources. He said this will be done by first reforming the African Union to empower it and enable its performance to align with its goals. “We must free the AU from constraints so that it can pursue urgent and critical interventions in the continent using internally generated resources,” he said.
He spoke during the 5th Mid-Year Coordination Meeting of the African Union, the Regional Economic Communities, the Regional Mechanisms, and the African Union Member States at the UN Complex in Gigiri, Nairobi. Ruto regretted that over five decades after independence, the continent still relies on external funding to drive its agenda. He frowned upon the financing of over 60 per cent of AU programmes by overseas partners.
“The chronic dependence on well-meaning partners is inconsistent with this aspiration,” he added. The President said African integration will open doors for unprecedented transformation, adding that the African Continental Free Trade Area (ACFTA) will be the world’s largest free-trade area, bringing together 54 countries.
AU: Tinubu rejects fresh scramble for Africa, pledges to strengthen ECOWAS (Tribune Online)
President Bola Tinubu on Sunday in Nairobi, Kenya strongly rejected the notion of a new scramble for Africa as various countries including China, United States, Russia, France and Iran, are establishing new blocs between them and the continent.
Speaking at the Fifth Mid-Year Coordination Meeting (5th MYCM), he called for good governance to ensure a prosperous future for Africa, free from the exploitations of the past. “As Africans, we forge ahead no matter the barriers thrust before us. The world we inhabit is often unkind and uncertain. Past history and current global difficulties argue against our future success. “Lessons of the past few years teach us that the world economy can be disrupted in ways that halt progress and invite downturn. Our nations can suddenly find themselves in dire situations if we choose to be passive observers of our fate.
“We sit here in meaningful discussion of vital economic matters. Yet, it will be impossible to bring full meaning to what we attempt unless we give due consideration to the instability and conflict that now scar many of our nations. “The fullness of the integration we seek will elude us as long as several of our nations stand in the midst of violence and war. “The trade and commerce we talk of today refers to valued goods and services that improve life. The trade and commerce these nations suffer is of destruction and disorder that takes lives and steals opportunity.
Africa urged to strike a balance between green hydrogen exports, developing local industries (Engineering News)
Africa has the potential to become a major player in the global green hydrogen economy, with the potential to generate more than 1 000 GW of renewable energy and could produce up to 5 000 megatonnes of green hydrogen a year at less than $2/kg, says business advisory company Frost and Sullivan Africa energy consultant Patrick Prestele.
The growth potential of green hydrogen presents significant opportunities for Africa. With abundant renewable energy resources, such as solar, wind and hydropower, the continent can produce vast amounts of cost-competitive green hydrogen for various offtaker markets and industries. “This presents a tremendous growth opportunity for the continent, as green hydrogen is expected to play a crucial role in the global energy transition going forward,” Presele says.
Africa's strategic geographic location favours its position as a hub for green hydrogen exports to global markets. However, there are concerns about Africa becoming a "battery" for the rest of the world. “If the continent heavily relies on exporting green hydrogen alone, it could miss out on the benefits of local value addition and industrialisation. Therefore, African countries must strike a key balance between exporting hydrogen and developing local industries that can benefit from this renewable energy source in the long-term,” he emphasises.
Africa’s green growth market size is at $2.97 trillion (Nairametrics)
The African Development Bank (AfDB) has said that Africa’s green growth market size is at $2.97 trillion. Kevin Chika Urama, AfDB’s Chief Economist and Vice President of Economic Governance and Knowledge Management said this during his presentation at the Mobilizing Private Sector Financing for Climate and Green Growth in Africa to the South Korean Institute for Economic Policy (KEIP) in South Korea. Urama highlighted the fact that green growth positively correlates with real gross domestic product (GDP) growth, climate resilience, and readiness.
While addressing Africa’s lack of green investments, particularly from the private sector, Urama said that the continent needs up to $2.7 trillion cumulatively (that is $242.4 billion annually), over 2020–30 to implement its updated nationally determined contributions (NDCs). He also said that out of the cumulative green bonds’ issuance estimated at $2.2 trillion globally between 2006 and 2022, Africa accounted for only about 0.2% (or $4.7 billion), which is the lowest among world regions.
Africa should harness investment and tapping vast green energy resources to drive sustainable industrialization and trade across the continent, the Economic Commission for Africa (ECA), Acting Executive Secretary, Antonio Pedro, has said.
Addressing the 43rd Ordinary Session of the African Union Executive Council in Nairobi, Kenya Mr. Pedro noted that the African continent had significant resources to power a green and sustainable industrialization and make the African Continental Free Trade Area (AfCFTA) work, but these investments must be prioritized. Mr. Pedro stressed that enabling infrastructure, strong productive capabilities, expanding exports and intra-African trade through the AfCFTA must be accompanied by effective industrialization and trade policies to stimulate private sector investments.
Why domestic solar manufacturing could turbocharge Africa’s energy transition (Energy Monitor)
In May, the International Energy Agency (IEA) released a special report: The State of Clean Technology Manufacturing – An Energy Technology Perspectives Special Briefing. The report offers an “update on recent progress in clean energy technology manufacturing in key regions”, says the IEA, with the aim of “keep[ing] decision makers informed of investment trends and the impact that recent industrial strategies are having in these highly dynamic sectors”.
For decades, experts have made the case that challenges around establishing industrial bases in Africa are too profound for it to be worthwhile. According to Amir Bahr, programme manager at UN Energy, the challenges include: “Limited access to finance, lack of supportive policy and regulatory environment, infrastructure constraints, limited local supply chains, and a lack of skilled workforce and technical expertise.”
Olumide Abimbola, from the Africa Policy Research Institute (APRI), agrees that “production factors, supply chain concerns, a lack of incentives, regulations, complex business environments” has made establishing renewable energy manufacturing capabilities complicated in many African nations. However, despite a complicated investment environment, manufacturing on the continent is growing fast. Manufacturing in sub-Saharan Africa has increased in value fourfold since the turn of the century – much faster than the rest of the world.
When it comes to solar manufacturing specifically, a recent report from the UN-backed international organisation Sustainable Energy for All finds that solar module manufacturing in some African countries is already cost competitive with equivalent manufacturing in China.
African Leaders At Business Summit Call For Extension Of Trade Deal With US (iAfrica)
Leaders at the U.S.-Africa Business Summit in Botswana have urged renewal of the long-standing Africa Growth Opportunities Act (AGOA).The trade deal gives some African countries preferential or even tax-free access for their exports to the U.S. market. The agreement is due to expire in 2025, and African delegates at the summit want the deal renewed.
“It is also our earnest hope that in consonance with the letter and spirit of the U.S.-Africa Leaders Summit, the Biden administration will renew the African Growth and Opportunity Act initiative, which expires in 2025,” he said. “The AGOA renewal now, with expanded mandates, will give a strong signal and confidence to the markets and serve as a catalyst for Africa’s industrialization and inclusion into the global value chains.”
Florie Liser, chief executive and president of the Corporate Council on Africa, which organizes the U.S.-Africa Business Summit, said there is a need to examine AGOA in light of an agreement known as the African Continental Free Trade Area.”A lot has changed” in Africa and beyond since AGOA came into being, she said. “The advent of the African Continental Free Trade Area is fostering much closer economic and commercial integration on the continent, which will spur the creation of regional and continental value chains and increase value added across key sectors. In many ways, the question is how best we can support this development.”
United States AGOA and Private Sector Collaboration as Backbone for Strengthening Relations with Africa (Modern Diplomacy)
With over 1300 delegates at the US-African Business Summit held mid-July in Gaborone, Botswana, the main focus was on mapping out strategies to strengthen trade and economic relations between the United States and Africa. Majority of the speakers emphasized reviewing and widening collaboration between governments, while others underlined the importance of the private sector as the key driver in achieving robust economic growth in African countries.
African leaders together with corporate business executives and majority of the participants called for extension of the Africa Growth Opportunities Act (AGOA) which grants African countries the freedom to export products tax free into American market. It is the traditional market from where most of them earn revenues for their national budget.
Chairman of the Board of Directors for the US Corporate Council on Africa (CCA), Dr. Jeffrey L. Sturchio, underlined the importance of collaboration between governments and private sectors, describing partnerships as vital ingredient for achieving robust trade and economic targets during the previous years.
BRICS Business Council aims to better balance SA’s trade patterns (IOL)
The BRICS Business Council would like to even out some of the uneven trade patterns that exist, according to Stavros Nicolaou, the head of the council. Nicolaou said South Africa exported more raw materials and imported more finished manufactured goods.
“That is even with the BRICS countries. We would like to see more of our finished products being exported and less of the finished products being imported. We need to even out the trade imbalances that exist,” he said in an interview. “In the period 2017 to 2021, there has been a 44% growth in trade across the five BRICS countries,” he said.
The council’s mandate is to promote and enhance economic growth across the five BRICS countries and to improve trade and investment between the five countries. Nicolaou said the theme of the conference was Africa and BRICS: promoting multilateralism.
UN chief regrets Russia’s decision to withdraw from grain deal (UN News)
Following weeks of negotiations, the UN-brokered accord that facilitated the export of more than 30 million tonnes of Ukrainian grain to global markets via three Black Sea ports expired on 17 July. “Today’s decision by the Russian Federation will strike a blow to people in need everywhere,” said Mr. Guterres, speaking to journalists at UN Headquarters in New York.
The Black Sea initiative was agreed by Russia, Ukraine, Türkiye and the UN in Istanbul last July along with a parallel accord between the UN and Russia on grain and fertilizer exports from that country. By its decision, Russia has also withdrawn security guarantees for ships navigating in the northwestern part of the Black Sea.
The grain initiative and the Memorandum of Understanding with Russia were “a lifeline for global food security and a beacon of hope in a troubled world,” he said. “At a time when the production and availability of food is being disrupted by conflict, climate change, energy prices and more, these agreements have helped to reduce food prices by over 23 per cent since March last year,” he added.
Statement by WTO Director-General
“The abrupt termination of the implementation of the Black Sea Grain Initiative is a matter of grave concern. I share UN Secretary-General Antonio Guterres’s deep regret and disappointment. Global food security should not become a casualty of war. Ukraine and the Russian Federation are important suppliers of food, feed, and fertilizer to international markets. People in poor countries struggling with food and energy price inflation stand to be hit hardest by the termination of the initiative: prices for future delivery of wheat and corn are already rising. Therefore, I urge all parties to make every effort to come back to the negotiating table.”
Related News
tralac Daily News
Transnet container terminals remain optimistic of strong citrus season finish (Engineering News)
Average year-on-year comparisons of citrus handling volumes show a 9.2% volume increase in the Eastern Cape region and, despite heavy rains across the country, the Eastern Cape Container Terminals are handling higher citrus volumes than the previous three years mid-season, said State-owned Transnet Port Terminals (TPT).
“With exception of the Eastern Cape, we have noted a slow start to the citrus season in general. There are a number of factors at play, including lower crop yields owing to weather, as well as the European Union’s cold treatment legislation, which have reduced export opportunities,” said TPT commercial and planning GM Michelle van Buren Schele.
However, Transnet remained optimistic of a strong, albeit later, finish with three months before end of season, she added. “Volumes are starting to pick up in Durban after delayed production of valencia and mandarin fruits. This will also contribute to peak export flows,” she said. The citrus season is one of South Africa’s biggest, as the country ranks among the top suppliers of citrus fruits in the world. During this season, TPT handles vessels destined for over 100 markets.
Regional Collaboration Consolidates Angola’s Position as an Oil and Gas Hub (ZAWYA)
One of Africa’s major oil and gas producers, Angola is demonstrating commendable efforts in prioritizing regional collaboration to ensure energy security and stimulate growth across the regional energy sector. By leveraging its position, resources and experience, Angola is forging strategic partnerships with neighboring countries, signing significant agreements, and initiating cross-border collaborations. These endeavors serve as an inspiring example for other African nations to enhance cooperation and foster sustainable development.
In a notable development, Angola’s signing of a Memorandum of Understanding (MoU) with the Democratic Republic of the Congo (DRC) on July 13 for the joint development of offshore Block 14 marks a significant milestone in the country’s pursuit of energy security. Angola, for its part, has demonstrated its commitment to strengthening cooperation and promoting sustainable development and growth within the energy sector. This strategic alliance will not only boost the energy sectors of both countries but also promote economic growth and stability across the continent.
IMF Staff Completes 2023 Article IV Mission to Botswana (IMF)
“Following a strong recovery of almost 12 percent growth in 2021, Botswana’s economy grew by 5.8 percent in 2022, significantly above the long-run average of 4 percent. The recovery from the pandemic primarily reflects elevated mining production, but also robust manufacturing and construction.
“Going forward, growth is projected to slow to 3.8 percent in 2023. The expected slowdown reflects a decline in diamond production and prices this year, with weaker global growth likely to depress other exports. This will be partly offset by growth in the non-mining sector, with a fiscal relaxation supporting household consumption and public investment. Growth is forecast to rebound gradually in 2024 and 2025, to above 4 percent, due to higher prices and quantities of diamonds produced.
Namibia is open for business says Mbumba at 2023 U.S.-Africa Business Summit (Namibia Economist)
The Vice President Dr Nangolo Mbumba reiterated that Namibia is open for business and that it welcomes investors interested in exploring potential prospects for shared economic growth. Mbumba emphasized the government’s unwavering commitment to creating a conducive environment for business, noting that “we are doing this by removing legal or administrative impediments, and ensuring that our trade and investment landscape remains fit for purpose.” Mbumba made these remarks at the U.S.-Africa Business Summit in Botswana on Thursday, where he led the Namibian delegation.
“Namibia is a land of vast potential that offers trade and investment opportunities in multiple sectors beyond energy. From tourism, mining, agriculture and agro-processing, transport and logistics, amongst others, a key objective for Namibia is to leverage the existing capital-intensive industries to set the basis for productive diversification towards industries that can employ more people with higher capabilities and jump-start the economy,” he said.
Following the positive economic growth observed in 2022, Equatorial Guinea is projected to re-enter recession this year with an average real GDP growth of about -4% over the period 2023 to 2025.
While the country registered a fiscal and current account surplus in 2022 amid the recovery of the hydrocarbon sector, the projected gradual decrease in oil production and lower commodity prices are expected to deteriorate both the fiscal and external balances over the medium term. The medium-term outlook is subject to downside risks, including lower-than-expected oil production and prices, increases in international food prices, and a further tightening of global financial conditions.
Cameroon predicts nearly CFAF200bln YoY drop in oil revenues in 2024 (Business in Cameroon)
On July 13, 2023, the 2024 budget preparation workshop was officially opened, in Yaoundé, by Finance Minister Louis Paul Motaze (photo). During his opening address, he described national and international uncertainties that could lead to a significant drop in Cameroon’s oil revenues in 2024. “The uncertainties weighing on the global economy call for caution regarding the forecast of a substantial increase in domestic revenues in 2024, in a context of falling prices and a crumbling potential for the mobilization of oil revenues, which are projected - in the latest budgetary framework - to drop by more than CFAF195 billion compared to 2023,” Minister Motazé said.
The projections need to be taken with caution considering the uncontrolled fluctuations in the dollar exchange rate and even crude oil prices, which may evolve favorably in the coming months, as long as the war between Russia and Ukraine persists. Apart from oil revenues, budget support and funds raised are also expected to drop in 2024.
Cabo Verde’s Sustainable Growth relies on Economic Diversification and Resilience to External Shocks (World Bank)
In 2022, Cabo Verde witnessed strong economic growth, led by the sectors of tourism, transport, and commerce. This surge in economic activity boosted the country’s GDP and contributed to poverty reduction. However, the need for economic diversification and for resilience to external shocks, particularly climate related, posed significant threats to the sustainability of growth. These are the key issues tackled by the 2023 Country Economic Memorandum and the 2023 Economic Update, two new reports published by the World Bank.
Cabo Verde has achieved significant social and economic progress since its independence in 1975, despite its geographical challenges and limited resources. However, there are still challenges that need to be addressed to ensure sustainable and inclusive long-term economic growth. Three priorities discussed in the CEM are (i) the importance of increasing firm-level productivity to generate more and better jobs; (ii) the need to reduce economic fragmentation by reduction transportation costs among islands; and (iii) the significance of building economic resilience to climate shocks.
“By implementing the recommendations outlined in these reports, in line with the national development policy (PEDS II), Cabo Verde has the potential to gradually diversify its economy, improve firm-level productivity, and prepare better for the impacts of climate shocks. These efforts will foster sustainable and inclusive growth, reduce poverty, and promote shared prosperity for the country and its people”, said Eneida Fernandes, World Bank Resident Representative in Cabo Verde.
Seychelles signs SADC Charter for fisheries monitoring and control centre (Seychelles News Agency)
Seychelles is set to partake in more regional cooperation in its fight against illegal, unreported, and unregulated (IUU) fishing with the signing of the Charter for the SADC Fisheries Monitoring Control and Surveillance Coordination Centre (MCSCC).
The SADC Council of Ministers approved the Charter in August 2017 in Pretoria, South Africa, and entered into force on April 8, 2023. The Charter aims to provide a legal framework for establishing and operationalising an institution that will coordinate measures relating to fisheries monitoring control and surveillance (MCS) in the SADC region.
Through the years, Seychelles has made progress in monitoring, control and surveillance matters by improving the implementation of trade-related measures to prevent IUU fishing and reorganising the setup of the MCS department to allow the performance of crucial international obligations.
Digitalisation, manufacturing to take centre stage at 7th Africa Singapore Business Forum (Businessday NG)
Driving Africa’s growth through digitalization, manufacturing and sustainability will take the centre stage at the 7th Africa Singapore Business Forum (ASBF) orgainsed by Enterprise Singapore, the Singaporean agency championing enterprise development. This year’s edition themed ‘Driving Africa’s Growth through Digitalisation, Manufacturing and Sustainability’ is schedule to be held between the 29th to the 31st of August in Singapore.
According to the organisers, the theme is in line with the opportunities arising from Africa’s digital boom, sustainability development, and the boost in manufacturing brought about by the African Continental Free Trade Area agreement.
“Singapore companies are drawn by its potential and are eager to explore new opportunities for collaboration in areas such as manufacturing and digital solutions. “Singapore companies can also share knowledge and innovative solutions with Africa, contributing to the continent’s development and creating mutually beneficial partnerships. “We also welcome African companies to leverage our established business ecosystem and connectivity to set up their regional base in Singapore and expand into Asia,” Rahul Ghosh, director for Middle East and Africa, Enterprise Singapore said.
Ministerial meeting of the African Union Commits to More Continental Trade and Integration (AU)
The African Union 5th Mid-Year Coordination Meeting bringing together Regional Economic Communities (RECs), Regional Mechanism (RMs) and member states kicked off on the 13th of July 2023 with the Ministerial Meeting of the Executive Council.
H.E. Moussa Faki Mahamat, Chairperson of the African Union Commission, in a statement read on his behalf by his Deputy, Dr. Monique Nsanzabaganwa, lauded the satisfactory progress of the implementation of the African Continental Free Trade Area, evidenced by among others, the successful conclusion of negotiations on rules of origin, the strengthening of infrastructure through the corridor approach, and the involvement of the private sector.
H.E. Dhoihir Dhoulkamal, Minister of Foreign Affairs and International Cooperation of the Republic of Comoros and the Chairperson of the African Union’s Executive Council for 2023, noted that the Protocol to the Treaty Establishing the African Economic Community Relating to Free Movement of Persons is a catalyst to stimulate the potential of the AfCFTA to benefit millions of Africans.
Mr. Antonio Pedro, the Acting Executive Secretary of the United Nations Economic Commission for Africa stated that industrialization would accelerate Africa’s structural transformation with a potential to contribute an increased share of tradable goods in total exports, more productive and decent jobs, value addition, larger volumes of intra-African trade, greater product complementarity between African economies and the emergence of strong and well-linked regional value chains to break Africa’s dependence on the export of raw materials. He emphasized that industrialization backed with actionable trade policies would attract private sector investments for sustainable development.
NEPAD, AUDA partner to combat food insecurity (The Nation)
The African Union Development Agency (AUDA) and the New Partnership for Africa’s Development (NEPAD) have disclosed plans to establish strong partnerships to ensure that farmers adhere strictly to African Union Agenda 2063 goals. This, the agency said, is in conformity with the Federal Government Agricultural Revolution for Food Sufficiency in the country.
The National Coordinator (AUDA-NEPAD)/APRM, Gloria Akobundu disclosed this at a one day national workshop on mainstreaming of African Union Comprehensive African Agricultural Development Programme (CAAPM) held in Owerri, the Imo State capital.
Also, speaking, the state Coordinator of the Nigeria Export Promotion Council (NEPC)-Anthony Ajuruchi, argued that the non-oil export sector holds immense potential for driving economic growth, diversification and sustainable development in Africa.
Ajuruchi said that it had become crucial for the nation to shift focus to non-oil sectors such as agriculture, manufacturing, solid minerals and services, stressing that the transition had become vital to reduce dependency on oil, create employment opportunities and foster inclusive economic growth.
Infrastructure experts have reiterated the need for conducive policy and business environment in Africa, which they say, is a critical first step to attract the private sector in urgently needed renewable energy investments needed for economic and social development.
“We must address the critical challenge of our policy and regulatory environment that often inhibit scaled investment and effective private sector participation,” Mr. Lisinge said in opening an event on Advancing Regulatory Improvements to Accelerate Private Sector Investment to Meet SDG7 and Energy Transition Goals in Africa on the sidelines of the High-Level Political Forum on Sustainable Development in New York this week.
“We must close the energy access gap that has left more than 600 million people in Africa without access to electricity,” Mr. Lisinge stressed, noting that the climate goal of 1.5 0C warming calls for significant changes in how energy is produced and consumed globally and in Africa.
African Union’s inclusion in G20 could become a reality: Officials (Deccan Herald)
There has been no disagreement thus far among various G20 nations over the African Union’s inclusion into the global group, officials aware of the development said on the sidelines of the 3rd Sherpa Meeting being held in Hampi.
Bringing the AU to the table has been one of the main agendas India has been pushing for after Prime Minister Narendra Modi wrote to his counterparts proposing the union be given full membership of the grouping at its September summit in New Delhi.
The push for AU’s inclusion has received significant momentum after India hosted the ‘Voice of the Global South Summit’ earlier this year to ascertain the needs of developing nations that it could pitch to leading countries during its G20 presidency. Major economies including the US, France, Japan, and China, have also backed the proposal.
Members review how to boost developing economies’ participation in global trade (WTO)
WTO members discussed how to better integrate developing economies and least-developed countries (LDCs) into the global trading system at a meeting of the Committee on Trade and Development on 11 July.
Members continued discussions on “policy space” for developing economies to promote industrial development on the basis of submissions by the WTO’s African Group. A first submission, circulated earlier this year, makes a case for rebalancing trade rules to promote industrialization and to address emerging challenges, such as climate change, concentration of production and digital industrialization.
The WTO Secretariat presented the recently-launched Global trade data portal, a tool intended to complement customs data and enhance market transparency. The portal provides access to real-time data on trade, allowing users to monitor supply chain activities and providing advance warning of potential disruptions.
Why the shipping industry’s increased climate ambition spells the end for its fossil fuel use (The Conversation)
A revised strategy to reduce global shipping emissions has emerged from two weeks of intense talks in London. It marks a significant increase in the industry’s climate ambition. The revised strategy has been criticised for not being ambitious enough. However, the forecast growth in global trade and the world’s shipping fleet means the reductions required of individual ships are much greater than the overall greenhouse gas emission targets.
The revised strategy was negotiated at the London headquarters of the International Maritime Organization (IMO), the United Nations agency that regulates shipping. Backed by the Science-Based Targets initiative, several Pacific Island states, New Zealand, the US, the UK and Canada had proposed emission cuts of at least 37% by 2030, 96% by 2040 and to absolute zero by 2050. (An initial strategy adopted in 2018 aimed to reduce shipping emissions by at least 50% by 2050.)
Shipping volumes have grown by more than 50% since 2008, with further growth expected. Increasing numbers of ships mean average emission reductions per ship will need to be 54-60% by 2030 and 86-91% by 2040.
Before the revised strategy, IMO policy focused on improving the energy efficiency and carbon intensity of new and existing ships. These tools failed to rein in shipping emissions.
UN scrambles to save Black Sea grain deal, with EU help, ahead of Monday deadline (Reuters)
The European Commission is helping the United Nations and Turkey try to extend a deal allowing the Black Sea export of Ukraine grain and is open to “explore all solutions,” a European Union spokesperson said on Thursday, ahead of the deal’s possible expiration on Monday.
The U.N. and Turkey brokered the Black Sea Grain Initiative with Russia and Ukraine in July 2022 to help alleviate a global food crisis worsened by Moscow’s invasion and blockade of Ukrainian ports. Ukraine and Russia are among the world’s leading grain exporters.
U.N. Secretary-General Antonio Guterres proposed in a letter to Russian President Vladimir Putin on Tuesday that Moscow allow the Black Sea grain deal to continue for several months to give the EU time to connect a Rosselkhozbank subsidiary to SWIFT, two of those sources familiar with discussions told Reuters.
“Governments should rethink how they can allocate their existing public budgets to make them more cost-effective and efficient in reducing the cost of nutritious foods, and increasing the availability, accessibility and affordability of healthy diets,” FAO Director-General QU Dongyu said at a side event held on the margins of the United Nations High-Level Political Forum on Sustainable Development (10-19 July).
Higher prices have increased the global food import bill to an estimated all-time high, surpassing $1.94 trillion, further stressing the balance of payments and increasing debt burdens, especially for net-importers of food. The participants touched upon the need to provide the enhanced support to the most vulnerable countries whose resources and budgets are under serious constraints ensuring that they have financial tools and safety nets especially at times of shocks (climate, economic, conflict and other unexpected factors) that result in higher prices.
They also agreed that global agrifood systems needed to be urgently transformed through effective policies, targeted investments and strengthened institutions. These actions are crucial since they are key to creating the conditions for an inclusive and sustainable transformation of economies and societies, and to achieving the Sustainable Development Goals (SDGs) by 2030.
122 million more people pushed into hunger since 2019 due to multiple crises, reveals UN report (FAO)
Over 122 million more people are facing hunger in the world since 2019 due to the pandemic and repeated weather shocks and conflicts, including the war in Ukraine, according to the latest State of Food Security and Nutrition in the World (SOFI) report published today jointly by five United Nations specialized agencies. If trends remain as they are, the Sustainable Development Goal of ending hunger by 2030 will not be reached
The 2023 edition of the report reveals that between 691 and 783 million people faced hunger in 2022, with a mid-range of 735 million. This represents an increase of 122 million people compared to 2019, before the COVID-19 pandemic.
“There are rays of hope, some regions are on track to achieve some 2030 nutrition targets. But overall, we need an intense and immediate global effort to rescue the Sustainable Development Goals. We must build resilience against the crises and shocks that drive food insecurity-from conflict to climate, said UN Secretary-General António Guterres through a video message during the launch of the report at the UN Headquarters in New York.
Fisheries subsidies negotiations ramp up ahead of text-based discussions in the autumn (WTO)
WTO members demonstrated an increased sense of urgency in their discussions at the fourth of a series of “Fish Weeks” held on 10-14 July regarding the second wave of fisheries subsidies negotiations, the chair, Ambassador Einar Gunnarsson of Iceland, reported at the end of the week. Members’ submissions and discussions are helping pave the way for text-based negotiations in the autumn ahead of the 13th Ministerial Conference to be held in February 2024, the chair said.
“Members came to this week with deepened reflections on various ideas on the proposals and texts on the table. It was clear that members have devoted considerable attention to all the elements before them. This effort remains a real indication of the sense of urgency and seriousness with which we are approaching this process,” Ambassador Gunnarsson said at the 14 July meeting of the Negotiating Group on Rules, bringing to a close the fourth Fish Week before the August break.
Second update of information note on integrated health, trade, IP response to COVID-19 launched (WTO)
The second update traces developments up until 17 May 2023. It provides an overview of the challenges encountered during the COVID-19 pandemic as well as the responses and initiatives taken to deal with the pandemic. Topics covered include the impact of COVID-19 on health systems and responses at the global level, policy challenges, meeting the demand for health technologies and medical services, international trade, intellectual property aspects, international initiatives to support research and development and equitable access, regulatory responses, transparency and mapping the way forward.
Related News
tralac Daily News
UK-SA Tech Hub renews funding for South African startups group (Engineering News)
The UK-SA Tech Hub, an initiative of the British High Commission (Embassy) in South Africa, has announced that it will provide a second round of funding for South Africa’s Startup Act Movement (SUA). “Our role is to support South Africa’s high-growth startups – whether in the tech industry or by enabling SMEs [small and medium-sized enterprises] in rural and township communities to become tech-enabled businesses – to maximise the value and impact they have on the South African economy and job creation,” explains UK-SA Tech Hub director Milisa Mabinza.
Kenya to Abolish Visas for AU Member States (Foundation For Investigative Journalism)
By the end of the year, Kenya will open its borders to all African Union member states. Alfred Nganga Mutua, the cabinet secretary for Foreign & Diaspora Affairs of the Republic of Kenya, made this known in his welcome address at the 43rd ordinary session of the African Union Executive Council in Nairobi on Thursday.
“Kenya is committed to progressively, and we are moving very fast, to the end of this year, to abolish visas to citizens from African Union member states to make it easier to invest and do business in Kenya and across the continent,” Mutua said.
This, according to him, was Kenya’s contribution to the union’s free continental trade aspirations. “We are going to open the borders of Kenya. We do not fear our fellow Africans,” he said.
To roar again, Nigeria must unleash an industrial revolution, says African Development Bank chief (AfDB)
Nigeria urgently needs to revolutionise its industrial sector to become an economic giant. When it does, this will transform the lives of its people and Africa as a whole, the President of the African Development Bank, Dr. Akinwumi Adesina, said in Lagos on Thursday. Giving examples from some countries, he said this was doable.
Adesina said: “Malaysia and Vietnam have used aggressive horizontal and vertical diversification of industrial production to move from low-value to high-value market products. The result is reflected in the comparative wealth of the three countries. While the per capita export value is $7,100 for Malaysia and $3,600 for Vietnam, it is only $160 for Nigeria.”
Speaking on the theme ‘The Day the Lion Roared: making Nigeria a global industrial and economic giant,’ Adesina emphasised that Nigeria’s prosperous future could only be secured by strongly supporting the private sector to unlock wealth that would lift all its people.
Sierra Leone Taps Fast Payment Systems to Promote Fast Progress with Financial Inclusion (World Bank)
Earlier this month, Sierra Leone’s President Bio announced the launch of the National Payment Switch. This new financial infrastructure, which is part of a $12 million funding program from the World Bank, interconnects six commercial banks and enables payments interoperability among banks, microfinance institutions, mobile money operators and financial technology firms.
In the first phase of what President Bio defined as a “major step forward in this era of the fourth industrial revolution”, the new infrastructure will cover processing of card transactions carried out through point-of-sale and Automated Teller Machines managed by different financial institutions.
Walton Gilpin, managing director of Rokel Commercial Bank and chair of the Sierra Leone Association of Commercial Banks said the new payments infrastructure will advance financial inclusion and encourage a greater share of formal economic activity.
Thailand pursues FTA with East African community (Pattaya Mail)
Thailand has set its sights on establishing a free trade agreement (FTA) with the East African Community (EAC), in a bid to enhance trade and investment opportunities.
According to Department of Trade Negotiations Director-General Auramon Supthaweethum, discussions regarding an FTA recently took place between Thai officials and Kenyan Ambassador to Thailand, Kiptiness Lindsay Kimwole. The primary objective is to boost trade ties between Thailand and the seven-nation EAC bloc, which includes Burundi, the Democratic Republic of Congo, Kenya, Rwanda, South Sudan, Tanzania, and Uganda.
Recognizing the potential of the African market, Thailand’s Commerce Ministry has received requests from the private sector to pursue FTAs with African countries. Auramon expressed Thailand’s keen interest in an FTA with the EAC and outlined plans to convene a joint trade committee meeting with Kenya in the first quarter of next year. The meeting, to be hosted by Kenya, will serve as a platform to discuss trade and investment matters.
African Economic Outlook 2023: Opportunities abound for Asian investors in Africa, experts (African Business)
Africa offers vast investment opportunities for Asian countries with the appropriate incentives for their private sectors, Prof. Kevin Urama, Chief Economist and vice president of the African Development Bank Group has affirmed.
Urama made the call during a webinar to discuss the 2023 edition of the African Economic Outlook report. The African Development Bank organized the session jointly with the Korea Institute for International Economic Policy (KIEP) in Sejong-Si, Korea.
The report shows that Africa has remained broadly resilient despite experiencing significant shocks, particularly from the Covid-19 pandemic, climate change, and the Russian invasion of Ukraine. From an economic growth of 3.8% in 2022, the continent is set to climb to 4.1% in 2023 and 2024, exceeding the global average by 2.9% and the European average by 1.1%, according to the report, which estimates that growth in Asia would be higher, at 4.3%.
Urama said, “Africa must play a key role in the green transition, given that it is home to 60% of the world’s unexploited arable land and the minerals needed for green growth.” He said these resources could stimulate sustainable development and investments. “This is virgin land, which can be easily used to build low-carbon infrastructure without large-scale expenditure.”
Africa: U.S.-Africa Business Summit Looks to Enhance Africa’s Value in Global Chains (allAfrica)
Over 1,000 participants from the U.S. and across the African continent, including government officials, private sector executives, investors, and multilateral stakeholders, are meeting in Botswana’s capital city of Gaborone at the U.S.-Africa Business Summit to explore investment opportunities and strengthen business relationships between Africa and the U.S.
“The U.S. is focused on what we will do with African nations and with African people and not for African nations and people as we work to deepen and expand our partnerships, amplify African voices, and support the empowerment of Africans,” said Scott Nathan, Chief Executive Officer of the United States, International Development (DFC).
The 15th U.S.- Africa Business Summit, hosted by the Corporate Council on Africa (CCA) and the Government of Botswana in Gaborone, is under the theme Enhancing Africa’s Value Chains.
US agency sees Lobito rail corridor helping to diversify critical minerals supply chains (Engineering News)
US International Development Finance Corporation (DFC) CEO Scott Nathan has reiterated the American government’s interest in helping to finance the Lobito rail corridor, linking the copper and cobalt mining regions of the Democratic Republic of Congo (DRC) and Zambia to Angola’s Lobito port. Nathan, who is heading the US Delegation to the US-Africa Business Summit in Botswana this week, made specific reference to the corridor during a virtual media briefing hosted on the sidelines of the summit.
Responding to a question related to what progress had been made since the signing, in December, of a memorandum of understanding (MoU) signalling America’s support for the joint development by DRC and Zambia of a battery metals supply chain, Nathan made a direct link between the MoU and the Lobito corridor.
African trade ministers push for revamp of AGOA trade act (Semafor)
African trade ministers are urging the United States to overhaul the sweeping trade deal that has opened the US market to African products and renew it this year rather than waiting until the duty-free pact expires in 2025.
Renewing the African Growth and Opportunity Act AGOA immediately would remove uncertainty about the future of the pact and allow for suppliers and partners to better plan and maintain investments in African economies, ministers said during this week’s U.S.-Africa Business Summit in Botswana.
“We are speaking with the same voice that AGOA should be extended,” said Botswana’s trade minister Mmusi Kgafela at a summit panel on Wednesday. He said he and other African ministers want “an indefinite period” for the act. This would do away with the uncertainty involved around the current 10-year renewal cycle.
“There is a compelling case to reauthorize the AGOA now,” wrote Daniel F. Runde and Thomas Bryja for the Washington DC-based Center for Strategic and International Studies (CSIS) in a new paper on calling for AGOA to be renewed.
Atlantic Council fellow Frannie Léautier, who launched an AGOA report on Wednesday said the act “should be renewed by the US Congress for at least a ten-year period as soon as possible.”
There was also a call by ministers yesterday for the AGOA rules to be streamlined and made less cumbersome in order for more countries to be able to benefit more from the program.
Weak Global Economy, High Inflation, and Rising Fragmentation Demand Strong G20 Action (IMF Blog)
When the G20 finance ministers and central bank governors meet in Gandhinagar next week, the world will be looking for joint action to address rising economic fragmentation, slowing growth, and high inflation. Agile multilateral support is vital to tackle common challenges posed by debt vulnerabilities, climate change, and limited concessional financing—especially for countries hit by shocks not of their making.
In April, the IMF projected global growth at 2.8 percent in 2023, down from 3.4 percent in 2022. The bulk of it–over 70 percent – is expected to come from the Asia-Pacific region.
Yet, recent high frequency indicators paint a mixed picture: weakness in manufacturing contrasts with resilience in services across the G20 countries and strong labor markets in advanced economies. At the same time, financial fragilities uncovered by tight monetary policy require careful management—particularly as restoring price stability remains a priority.
The IMF forecast for global growth over the medium-term is around 3 percent—well below the historical average of 3.8 percent during 2000-19. Moreover, economic fragmentation will both undermine growth and make it harder to tackle pressing global challenges, from rising sovereign debt crises to the existential threat of climate change.
BRICS: South Africa’s weak transport network limits its trade opportunities (IOL)
South Africa has the potential to become a manufacturing hub for the continent if it fixes its infrastructure and refuses to be bullied by larger nations.
Praveer Tripathi, president of the Indian Business Forum, spoke candidly at the BRICS colloquium in Sandton on Thursday, where he called on BRICS countries to assist South Africa in resisting the “bullying”. Tripathi was part of a panel discussing ways in which trade and investment can be eased between BRICS countries in an era of trade partnerships.
One of the key elements in trade is logistics and South Africa has been brought under the spotlight for its failing rail, road and shipping infrastructure. Tripathi said with its impressive coastline, South Africa could easily become a manufacturing hub in the shipping industry, easily supplying BRICS countries.
South Africa courts Chinese investment ahead of BRICS summit (South China Morning Post)
South Africa is seeking more Chinese investments as it struggles with the impact of rolling blackouts and high unemployment.
Chinese President Xi Jinping is expected to lead a large business delegation to South Africa later next month when he attends the annual summit of the emerging markets group BRICS, which also includes Brazil, India and Russia, in Johannesburg.
On Tuesday, Fikile Majola, South Africa’s deputy minister of trade and industry, spoke to a business seminar in Beijing via video link, saying the country was looking to improve infrastructure.
“We are well aware that we must prioritise economic infrastructure, especially scaling up renewable energy capacity, roads and railways, ports, and airports, telecommunications and water infrastructure.”
UN Warns of Soaring Global Public Debt: a record $92 Trillion in 2022 (UNCTAD)
According to the report, 3.3 billion people now live in countries where debt interest payments are greater than expenditure on health or education. This five-fold surge in public debt levels since 2000, demands immediate action to tackle the escalating crisis affecting developing countries in particular.
The United Nations Secretary-General underlined: “On average, African countries pay four times more for borrowing than the United States and eight times more than the wealthiest European economies. A total of 52 countries – almost 40 percent of the developing world – are in serious debt trouble.”
Addressing the high cost of debt and the mounting risk of debt distress is of utmost importance. Establishing a debt workout mechanism is crucial to expedite progress under the G20 Common Framework for Debt Treatment, which has faced challenges due to creditor coordination issues and the absence of automatic debt service suspension clauses.
Members discuss possible TESSD outcomes for delivery at MC13 (WTO)
WTO members taking part in the Trade and Environmental Sustainability Structured Discussions (TESSD) on 11 July considered possible outcomes to promote opportunities for environmentally sustainable trade for delivery by the 13th Ministerial Conference (MC13) to be held in February 2024. Members also welcomed Barbados as the newest participant in TESSD, which now includes 75 WTO members as co-sponsors.
Related News
tralac Daily News
Exports surge to N$43 billion in five months (The Namibian)
During the first five months of 2023, Namibia experienced a remarkable surge in exports, reaching an impressive value of N$43 billion. This figure exceeded the N$36,3 billion reached during the same period the previous year. According to the most recent data released by the Namibia Statistics Agency, uranium, diamonds, and fish continued to play vital roles in the country’s export earnings.
Uranium emerged as the leading export commodity, accounting for a staggering 21,5% of total exports in May. Diamonds claimed the second spot on the list of top exports, constituting 21,1% of Namibia’s total exports. Fish, another crucial component of Namibia’s export portfolio, claimed the third position, contributing 12% to the nation’s total earnings.
The Southern African Customs Union (Sacu) emerged as the dominant destination for Namibia’s goods during the period under review, capturing a significant share of 36,8% of the country’s total exports. Following closely behind Sacu were the Organisation for Economic Cooperation and Development (OECD) and Brazil, Russia, India, and China (the Bric countries), claiming the second and third positions, respectively, with 26,4% and 18,3% shares of Namibia’s total exports.
“Exports to Sacu consisted mainly of diamonds, non-monetary gold and petroleum oils, whereas uranium, fish and copper were destined to the OECD. The export basket to the Bric countries was mainly made up of uranium and ores,” the statistics agency says.
Kenya to Exploit Ties with Iran to Expand Trade (ZAWYA)
Kenya will exploit the strong ties it enjoys with Iran to expand trade. President William Ruto said trade volumes between the two countries are still low but with potential to grow. He explained that Kenya and Iran will strike a formula that will facilitate higher exports of tea, coffee and meat. “This will bring about the much-desired trade balance that is in favour of Iran.”
President Ruto observed that Kenya will also use the West Asian country’s wealth in technology and innovation for its development.
He explained that Kenya and Iran are strategically located to be each other’s key points of entry into their respective regions. “We will seek to capitalise on this unique advantage for our prosperity.”
Rwanda Maintains Strong Growth Momentum in Early 2023 (World Bank)
Rwanda’s economy grew by 9.2% in the first quarter of 2023, following 8.2% growth in 2022. But recent floods, resulting in the loss of life and destruction of infrastructure, are expected to moderate this momentum to 5.8% in 2023 against a pre-disaster forecast of 6.2%.
The 21st edition of the World Bank’s Rwanda Economic Update (REU) highlights positive developments in the country’s economic landscape. Momentum in growth was supported by private consumption and the services sector, accompanied by improvements in the labor market.
As its special topic, this 21st Rwanda Economic Update examines the inclusiveness of Foreign Direct Investment (FDI). While FDI inflows slowed during the COVID-19 pandemic, the report says, at their peak in 2014 these were well above the Sub-Saharan and East African average. FDI inflows, supported by a favorable regulatory environment, have played a crucial role in generating higher-quality jobs and access to social security, compared to their domestic counterparts.
“To improve the inclusiveness of FDI, Rwanda needs policies that focus on institutional reforms and infrastructure investments that will stimulate FDI to create jobs for women and youth and expand investment into poorer districts,” said Rolande Pryce, World Bank Country Manager for Rwanda.
Despite AfCFTA, Nigeria’s intra-African trade down 12% (TheNiche)
Nigeria’s intra-African trade value dipped 11.95 per cent year-on-year (YoY) from N956.93 billion in the first quarter of 2022 (Q1 2022) to N842.6 billion in Q1 2023, despite operation of the African Continental Free Trade Area (AfCFTA) since 2021.
AfCFTA projects 52.3 per cent expansion in continental trade by 2025, according to the International Monetary Fund (IMF). However, more than two years after the commencement of AfCFTA Nigeria’s trade value with other African countries in relation to its total foreign trade remains low.
The National Bureau of Statistics (NBS) report on Foreign Trade in Goods Statistics for Q1 2023 shows that at N842.6 billion, Nigeria intra-African trade was 6.99 per cent of its total foreign trade (N12.047 trillion) in Q1 2023. This is against 7.4 per cent contribution to total foreign trade (N13.001 trillion) in Q1 2022. Nigeria’s trade with other African countries also declined 24.87 per cent from N1.122 trillion in Q4 2022 to N842.6 billion in Q1 2023.
But Nigeria exported more than it imported, with exports rising from N444.418 billion in Q1 2022 to N665.10 billion in Q1 2023 while imports slashed from N512.513 billion to N177.50 billion.
Senegal’s Growth Prospects are Strong (IMF)
After slowing to 4.7 percent in 2022, growth in Senegal is projected to rebound to over 5.3 percent this year, due in part to an emerging oil and gas industry. This makes Senegal one of the strongest growing economies in sub-Saharan Africa. The country is facing some challenges, however, including spillovers from the war in Ukraine, tighter financing conditions, and increased political instability in the region. A widening fiscal deficit and increasing government debt are two major concerns.
The country has strong prospects however, reinforced by the production of oil and gas, which will give the economy a boost for the next few years. Growth is projected to accelerate to 10.6 percent in 2024 and 7.4 percent in 2025, with non-hydrocarbon growth expected to reach around 6 percent, assuming prudent macroeconomic policies and steadfast structural reforms are implemented under the IMF-supported programs.
The additional revenues from oil and gas exports will be set aside, in line with the new fiscal rule adopted, to ensure public spending can be sustained in the future, as the country transitions to renewables.
Tunisia: Trade deficit narrows to $2.8bln, end-June 2023 (ZAWYA)
The trade deficit narrowed to TND -8,686.9 million at the end of June 2023, against TND -11,775.5 million during the first half of 2022. This deficit can be explained by the 10% rise in exports and the 0.6% fall in imports in H1 of 2023.
The results of Tunisia’s foreign trade at current prices in H1 of 2023 reveal that exports rose by 10% compared with a 24.6% increase in the same period in 2022. They reached TND 31,271 million compared with TND 28,432.4 million during the first half of 2022. Imports fell by 0.6% compared with an increase of 32.4% at the end of June 2022.
Improving debt management in Mauritania (UNCTAD)
A recently concluded UNCTAD project has helped Mauritania improve its public debt management. Implemented as part of UNCTAD’s Debt Management and Financial Analysis System (DMFAS) programme, the two-year project has helped improve the availability of the sub-Saharan African nation’s debt data.
It lead to the publication of the country’s debt statistics bulletin in line with international standards. The bulletin now provides more comprehensive information on Mauritania’s public debt in a timely manner, enhancing transparency to inform policymaking and debt restructuring negotiations.
While public debt can be vital for development, UN analysis highlights how it can become a heavy burden and divert government resources from essential services, such as education and health.
PAP delegation in Kenya to push continental freed trade area agenda (The Herald)
Pan African Parliament (PAP) president Chief Fortune Charumbira is heading a delegation of the continental legislative body that is in Kenya to attend the fifth mid-year coordination meeting of the African Union that seeks to accentuate the drive to create a continental free trade area.
The PAP delegation will join representatives of regional economic communities and AU member states at the meeting that will be convened under the AU 2023 theme,” Acceleration of African Free Trade Area(AfCFTA) Implementation.”
There has been a growing chorus for African countries to leverage their vast natural resources base, value add and get more returns to pivot the continent towards sustainable growth for the benefit of African people and achieve Agenda 2063 targets. Looming large at the meeting will be the discussion and presentation on the status of continental integration in Africa in accordance with the Abuja Treaty.
Eliminate Non-Tariff Barriers to boost intra-African food trade (EAC)
African Union Members States have been called upon to adopt policies to encourage intra-African trade in food production by among other things removing Non-tariff Barriers (NTBs) that currently make imports from outside the continent costly compared to locally produced food. AU Member States were further urged to invest in irrigation agriculture by moving away from the reliance on rain-fed agriculture.
African countries were called upon to adopt policies that motivate the youth to take part in agriculture to ensure increased production and reduce food insecurity. These were some of the resolutions by the 14th African Union High Level Private Sector Forum that was held at the Kenyatta International Convention Centre in Nairobi, Kenya from 10th – 12th July, 2023. The forum further encouraged AU Member States to build resilient food systems which are climate resilient by employing technologies which promote investments in technologies that also address post-harvest losses.
Top agri opportunities in EAC region revealed (Farm Kenya Initiative)
A study by East African Business Council (EABC) in partnership with Sequa GmbH under the Business Scouts Fund and GIZ Business Scouts for Development offers useful insights on investment opportunities in the region. The study aims to address the region’s low foreign direct investment in agriculture, its reliance on food imports and vulnerability to global shocks.
The study shows Foreign Direct Investment (FDI) into the EAC region increased marginally between 2015 and 2021, primarily driven by investments from China and India, but the majority of the money has been directed towards the manufacturing, construction, and services sectors, rather than the agricultural sector.
The study reveals significant potential for developing value chains in wheat, edible oil (soya beans, sesame, palm oil), fertilisers, tubers (potato and cassava) and leguminous plants within the EAC.
China’s participation key to AfCFTA implementation, development (Engineering New)
South African diplomat and ambassador of South Africa to Madagascar Gert Grobler has emphasised the importance of the African Continental Free Trade Area (AfCFTA) in advancing Africa’s integrated cooperation and development, as well as the vital role that China can play in advancing progress with the AfCFTA through cooperation and development.
“Despite headwinds, trade between Africa and China jumped to a record of $260-billion in 2022 and continues to grow. This is owing to Beijing’s recent push to boost imports from Africa, with 11% year-on-year growth,” Grobler noted during a webinar, titled ‘The Future of Africa-China Trade and How to Get There’, hosted by the South African Institute of International Affairs (SAIIA) on July 12.
Grober added that, in supporting Africa to advance integrated cooperation, China had agreed to actively participate in the development of the AfCFTA, and provide continued support to the secretariat of the AfCFTA towards the full integration of this trade initiative.
AU mid-year meeting in Nairobi to focus on continental integration and financing (Ahram Online)
The meeting brings together Regional Economic Communities (RECs), Regional Mechanism (RMs) and member states to review the progress of the continental integration agenda.
The meeting will explore ways to enhance integration, including promoting free movement and the African passport, as well as connecting infrastructure and financial markets. It will also explore establishing a common African market to accelerate trade, agriculture, establishment of businesses, and transfer of skills in Africa.
To accelerate these efforts, the meeting will discuss the division of labour between the AU, RECs, RMs, and member states, anchored on the principles of subsidiarity, complementary, and competitive advantage.
The division of labour is centred around six pillars: policy planning and formulation; policy adoption; policy implementation; monitoring, evaluation and reporting; resource mobilization; and partnerships.
Also on the agenda will be the financing of Agenda 2063, focusing on Africa’s economic recovery and the implementation of initiatives to address challenges in agriculture, infrastructure, debt, climate change, security, energy, and health. This year’s meeting will be preceded by the meeting of the AU’s Executive Council on 13-14 July.
The ministerial meeting will discuss the implementation of the African Continental Free Trade Area.
Africa needs an extra $194bln per year to 2030 to achieve SDGs (ZAWYA)
Africa needs an extra $1.6 trillion by 2030 - $194 billion annually - to achieve its Sustainable Development Goals (SDGs). To attract more and better investment and fill that gap, African governments and their partners should improve information to investors, increase the capacity of African development finance institutions, and boost regional projects, according to the 2023 edition of Africa’s Development Dynamics.
Africa’s real GDP growth is expected to reach 3.7% in 2023, a return to pre-Covid-19 levels. In addition to these positive economic perspectives, the continent boasts unique human and natural assets to attract investors: half of the African population is 19 years old or younger
As for natural capital, which accounts for 19% of Africa’s total wealth, it offers large opportunities for investing in sustainable development: for example, African forests increased the global carbon stock by 11.6 million kilotonnes of CO2-equivalent net emissions from 2011 to 2020, as the Congo Basin became the world’s largest carbon sink.
Despite that potential, global crises have been affecting investment in Africa more negatively than in the rest of the world. For instance, Africa’s share of global greenfield foreign direct investment has dropped to 6% in 2020-21 (the lowest share in 17 years), while high-income countries elsewhere have recorded their highest share ever (61%), compared to 17% for developing Asia and 10% for Latin America and the Caribbean. The cost of capital in Africa has also risen above the levels in other parts of the world, pricing some African governments out of bond markets while thwarting investments in transformational sectors such as renewable energy.
US to Adopt Instant Payments System (Business Post Nigeria)
The United States will join the likes of Nigeria, India, and Thailand, among others, with a banking system that supports instant payments following plans by the US Federal Reserve to roll out its FedNow Service.
The US is the largest economy in the world but it has one of the most rigid banking systems in the world as banking services are mostly conducted within business hours. This means that even if a transaction is done within seconds, it may take hours or several hours for the receiver to get the funds.
Money-moving apps like Venmo, Zelle, and CashApp have sprung up to cover this gap in recent years, but regardless, the problem persists since these transfers are operated on networks that work during working hours.
The US central bank with FedNow will offer banks a way to make instant payments available in the country, a feature that Nigerian customers have enjoyed for almost 10 years.
Gabon formally accepts Agreement on Fisheries Subsidies (WTO)
DG Okonjo-Iweala said: “I am grateful to Gabon for its formal acceptance of the WTO Agreement on Fisheries Subsidies. Illegal, unreported and unregulated (IUU) fishing costs Africa over $2.3 billion in economic losses every year, according to estimates from the African Union Commission, so I am particularly pleased to see another acceptance from the continent. This is the latest sign of Gabon’s commitment to building a truly sustainable ocean environment and economy: the country has created one of the largest marine reserves in Africa, and its Gabon Bleu programme includes measures to fight IUU fishing. Fish consumption in Gabon is above the global average, and food security in the country stands to gain from the agreement’s rapid entry into force. I hope this serves as an inspiration to other WTO members.”
Related News
tralac Daily News
South Africa: SARS’s Authorised Economic Operators Programme (Global Compliance News)
Today’s global economy demands that businesses expand beyond borders, but they face hurdles from customs, as well as regulatory barriers in different countries and regions that make this expansion challenging. The South African Revenue Service Authorised Economic Operators (AEO) programme offers numerous benefits for businesses trading within the regional market of the Southern African Custom Union and internationally.
In May this year, Botswana, Eswatini, Lesotho, Namibia and South Africa, the Member States of the Southern African Customs Union (SACU), signed the Mutual Recognition Arrangement to recognise SACU importers and exporters that have been granted AEO status. The SACU Revenue Administration is also committed to facilitating cross-regional trade and being alert to all its risks to reduce poverty, inequality, and unemployment.
For South African businesses involved in trade within the regional market of the SACU and internationally, there is an opportunity to achieve AEO status. AEO status is available to businesses such as manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses, distributors and freight forwarders. In addition, Small, Medium, and Micro Enterprises (SMMEs) within the same trade zone are eligible for the AEO programme. However, SARS Customs approval is necessary before AEO status can be achieved. The AEO programme is divided into different accreditation levels, as explained below.
Manufacturing production increased by 2.5% y/y in May (Engineering News)
Statistics South Africa has reported that manufacturing production increased by 2.5% in May this year compared with May last year. The largest contributions were made by the motor vehicles, parts and accessories and other transport equipment (15.1% and contributing 1.4 percentage points) and the basic iron and steel, non-ferrous metal products, metal products and machinery (5.8% and contributing 1.2 percentage points) sectors.
South African Business Groups Concerned as US Reviews Trade Program (VOA)
South African business groups are pushing the government to make strong diplomatic efforts to ensure the country is not stripped of its duty-free access to the U.S. market.
A group of U.S. senators recently questioned South Africa’s status under the African Growth and Opportunity Act, citing Pretoria’s ties with Moscow. South Africa has invited Russia President Vladimir Putin to an August summit despite his invasion of Ukraine and his being wanted by the International Criminal Court.
Relations between Pretoria and Washington have so deteriorated in recent months that South African business groups are now scrambling to try and make sure the country isn’t kicked out of an important U.S. tariff-free program.
The U.S. Congress is beginning to review the renewal of the African Growth and Opportunity Act, known as AGOA, with a decision expected by the end of the year. Some U.S. senators recently wrote a letter saying South Africa should no longer host an AGOA forum set for later this year. They also raised the prospect that the country could lose access to its trade benefits entirely.
Busisiwe Mavuso, CEO of Business Leadership South Africa, an independent association of some of South Africa’s largest businesses, said she was preparing a submission urging the U.S. to renew South Africa’s participation in AGOA.
Mavuso said South Africa is the largest single beneficiary country under AGOA, with 25% of the country’s exports going to the U.S. and nearly a billion dollars’ worth of exports to the U.S. in the first three months of this year alone.
How Kenya and the EU can close the loop on textiles (ECDPM)
The costs of green technologies are going down, which creates opportunities for green industrialisation in Kenya and beyond. European foreign direct investment can contribute to such a journey, in line with the EU’s ambition to promote European private sector engagement for sustainable development worldwide, as outlined in its Global Gateway strategy. The Kenyan government could seek closer collaboration with the EU and its member states, including their private sector.
Traders shift from Northern Corridor to rail on high fuel costs (The East African)
Increasing cost of fuel in Kenya after enactment of the Finance Act 2023 will increase transport cost along the Northern Corridor by more than 30 percent, with some traders already opting to use rail to ferry cargo from the Port of Mombasa to the hinterland.
The Shippers Council of Eastern Africa (SCEA) has already shown more interest in using railway to cut cost of transportation as rail charges remain unchanged since the standard gauge railway freight train was introduced five years ago.
In March last year, long distance transporters increased transportation charges by five percent and the announcement to increase charges further will make the corridor one of the most expensive routes in the region.
According to latest traffic cargo report, Naivasha ICD recorded a sharp increase in usage by conventional cargo compared to containerised, with grain and fertiliser boosting throughput – an indication of a shift resulting from high cost of transporting cargo using trucks.
FG moves to scale up production of electric vehicles (Businessday NG)
Nigeria’s post-fuel subsidy era appears to be heading the way of electric as the federal government, through the National Automotive Design and Development Council (NADDC), has acquired locally-assembled electric vehicles with their charging infrastructure from Nigerian mobility technology company, Jet Motors, a move that may signal the future of mainstream mobility in the country.
Jelani Aliyu, director general of the NADDC, informed that government is set to put a policy in place to scale up the production of Electric Vehicles working in partnership with local automotive companies and other relevant stakeholders.
He informed that the NADDC will in the next two weeks, ratify Electric Vehicle Development Plan, which is a set of fiscal and non fiscal incentives and other programmes such as training of mechanics to support local production of electric vehicles.
Vibrant private sector crucial to economic growth in Africa (EAC)
Kenya’s Cabinet Secretary for East African Community and Arid and Semi-arid Lands, Hon. Rebecca Miano, has underscored the importance of a vibrant private sector in promoting economic growth at the national, regional and continental levels in Africa. Hon. Miano said that the Private Sector accounts for 80 per cent of Africa’s total production, two-thirds of investment and three-quarters of credit in addition to employing 90 per cent of the continent’s working-age population.
Ms. Miano said that a robust private sector was indispensable to the realisation of Africa’s sustainable and economic transformation. “The success of Africa’s economic integration is premised on the role of the private sector in achieving growth objectives of Africa’s economies, and by extension, creating greater wealth and expanding employment opportunities,” said the CS.
“Regional value chains are essential for promoting intra-African trade, economic integration, and industrial development. They offer opportunities for countries to leverage their comparative advantages, enhance productivity, create jobs, and increase their share of value-added activities within the global economy,” said Ms. Miano.
The CS was giving the keynote address during the opening session of the 14th African Union High Level Private Sector Forum at the Kenyatta International Convention Centre in Nairobi, Kenya.
EAC unveils an online Tool to measure performance of One Stop Border Posts (EAC)
The East African Community (EAC) has unveiled an online tool to measure the performance of the 22 One Stop Border Posts (OSBPs) across the region. The EAC Secretary General in charge of Customs, Trade and Monetary Affairs, Ms. Annette Ssemuwumba, unveiled the One Stop Border Post Performance Measurement Tool on behalf of the EAC Secretary General, Hon. (Dr.) Peter Mathuki, during the opening session of the 14th African Union High Level Private Sector Forum that is taking place in Nairobi, Kenya this week.
Ms. Ssemuwemba announced that the tool is now ready for use and that Partner States and stakeholders will embark on data collection, sensitisation on use and full roll out.
Customs administrators in the EAC region will use the data generated by the measurement tool to assess OSBP performance and institute improvement strategies. Specifically, the tool has been developed to provide the necessary mechanism to measure the performance of OSBPs on six fronts, namely: Time, Cost, Volume/ Throughput, Infrastructure, Inter-Agency Coordination and User Satisfaction.
Seychelles considers joining Single African Air Transport Market (Seychelles News Agency)
Seychelles is still evaluating whether or not to sign an agreement to be part of the Single African Air Transport Market (SAATM), an initiative of the African Union (AU), said a top government official on Tuesday.
The Single African Air Transport Market seeks to promote connectivity, boost intra-African trade and tourism, and enhance economic integration among African countries. “One of the reservations we have is that we are protecting our aviation industry, including Air Seychelles. We want to ensure that when we do sign this agreement, we will protect Air Seychelles, and at the same time we will do all that is necessary to expand as a regional airline,” said the Minister for Transport, Anthony Derjacques, at the opening of a two-day workshop.
AfDB, WAMI Advocate Capital Markets Integration To Boost Cross Border Investment (Leadership)
The African Development Bank(AfDB) and West African Monetary Institute (WAMI), have called for capital markets integration to boost cross border investment in the West African region. This will be done through West African Monetary Institute Capacity Building/Sensitisation Programme on West African Capital Markets Integration (WACMI) Phase II Project holding on July 11 to 12, 2023 in Lagos.
The director-general of WAMI, Dr. Olorunsola Olowofeso said, integrated capital markets will foster cross border investment, stimulate and deepen the regional financial markets through a series of activities aimed at harmonising capital market operational rules, while providing aggregated financial markets information.
Olowofeso stated that, “the project emphasises knowledge transfer and capacity building through workshops and technical training sessions to build the capacity of market operators, regulators, asset managers, financial infrastructure providers and other capital market participants on a range of financial market issues including regulations, supervision, innovative financing, cross-border investments and settlements.”
US-Africa Business Summit kicks off (Mmegi Online)
The US Africa Business Summit took off today in Gaborone, with over 1,200 delegates registered and the promise of deals being made across various economic sectors.
The summits, organised by the Corporate Council on Africa – a trade association focusing on strengthening commercial relationships between the United States and Africa – are the premier platforms for bringing together African heads of state and other senior US and African government officials with top African and American senior business executives.
On Monday, Botswana Investment and Trade Centre CEO, Keletsositse Olebile told media that the organisation is ready to capture the attention of an array of institutional investors seeking to channel capital investments into Botswana.
“Our value proposition is simple as we engage investors, pick Botswana as a landing pad for investments, and position Botswana as an investment hub for your capital,” he said.
“The recently ratified AfCFTA agreement strengthens our communication and should excite investors to come to the mainland so that they can launch into the rest of Africa from a stable jurisdiction,” he said.
Inside EU battle for resource-rich eastern Africa (The East African)
The European Union’s battle for influence in East Africa is taking shape with increasing private investment and funding across the region. This follows a €150 billion ($170 billion) pledge for investment pledge made in February last year at the EU-Africa Summit in Brussels, Belgium.
While Europe maintains that it is not in competition with China for influence on the continent, its priority sectors now include building infrastructure, including rapid bus transit systems, which have been dominated by China. It also targets health, education, and climate change adaptation.
The EU’s Global Gateway strategy, which has largely been seen as an answer to China’s Belt and Road Initiative, plans to mobilise up to €300 billion ($331 billion) in public and private investments by 2027, with half of it designated for African countries.
Leaders push for new global financing model that fits Africa (The East African)
Rising interest rates, inflation and commodity shocks have raised the likelihood of an overlap of debt crises in Africa. The International Monetary Fund estimates that 30 percent of emerging markets and 60 percent of low-income countries could face difficulty paying their debts.
Additionally, there has been a marked change in the global credit landscape over the past decade, with China and private bondholders -- who are the main creditors for the low-income economies – making the traditional structures less effective for present-day debt challenges.
At the Shareholders General Meeting of infrastructure lender Africa50 early this week in Lome, Togo, African financial and political leaders looked at different ways of enhancing financial and credit access and all agreed that a fundamental shift is required. The leaders have taken up the push for a re-engineering of the global financial architecture, seeking a model that works for the continent.
“It is failing the world,” said Dr Akinwumi Adesina president of the African Development Bank (AfDB). “It is not able to mobilise the capital that the world needs to meet all of its development needs.” “It is also failing developing countries because you can see that even after Covid, Africa still needs about $250 billion to recover. We need $277 billion a year to deal with climate change, plus you still have to deal with Africa’s debt: today countries have to pay a lot in terms of repayment and service of debt,” he added.
India ups lending to Africa in bid to counter China’s dominance (The North Africa Post)
Africa has become the second-largest recipient of credit from India while over the past decade 18 of the 25 new Indian embassies or consulates were opened in the continent, as the South Asian powerhouse tries to catch up with China’s massive sway in the resource-rich continent.
Many African nations received about $12 billion or 38% of all credit extended by India in the past decade, just a few percentage points below its neighbors, according to Harsha Bangari, Managing Director of India’s Export Import Bank. The bank is an instrument of India’s “economic diplomacy,” Bangari said, adding that the South Asian nation has also opened up 195 project-based lines of credit across Africa, three times the number it has in its own region in the last decade. These credit lines have been utilized for crucial projects in healthcare, infrastructure, agriculture, and irrigation, driving a steady increase in demand from Africa.
Despite these impressive figures, India has lagged behind its bigger and wealthier neighbor in making inroads in Africa. While China’s loans to Africa have dipped since 2016, overall between 2010-2020, it pledged $134.6 billion, or more than 11 times more than which India has offered, to African nations, according to data from Boston University’s Global Development Policy Center. China has also made an early move to tap mineral resources in Africa, including new centers of lithium supply, helping it navigate a tight market for a key metal for electric vehicles.
Cross-border e-commerce brings more opportunities for China-Africa trade cooperation (Global Times)
The traditional model for trade, which often involves manual placement of orders, is now unable to satisfy the growing trade demand between China and Africa, with cross-border e-commerce becoming another driving force for bilateral trade, which is facilitating booming growth in economic ties.
Mouhamadou Bassirou Pouye, a Senegalese businessman who is engaged in cross border e-commerce has witnessed a rising volume of business over recent years. With the help of e-commerce platforms, he brought popular agricultural products in his country, including peanuts and coffee, to China, while also shipping goods from Yiwu, the world’s largest commodities hub located in East China’s Zhejiang Province, to his country.
DRC will take advantage of China’s export limits on rare metals amid global supply concerns (The North Africa Post)
Invoking national security concerns, Beijing on Monday (4 July) announced export limits on select gallium and germanium components, raising concerns about global supply chain disruptions for semiconductor and defense industries. With China’s dominance in the production of the two obscure yet crucial metals, other countries like Australia, Europe, and the United States are exploring opportunities to develop their own projects in order to reduce their reliance on Chinese supply. Experts warn that China’s move is only the latest stage of an escalating trade war on technology with the US and Europe.
Africa: Boosting energy transition – initiatives, funding and investment (Global Compliance News)
In Africa, 43% of the population does not have access to electricity, mostly in sub-Saharan Africa, according to a recent report by the International Energy Agency. Increasing access to a clean, decarbonized, and decentralized energy supply is therefore critical for the continent.
The growing focus on the energy transition can benefit Africa in numerous ways, including that the continent is already in the process of harnessing its vast supply of renewable energy to generate power and is also gearing up to increase trade in its large store of critical minerals, needed for the global energy transition.
To enable this transition, countries across Africa are implementing policies that take into account the energy crisis, the need for a renewable energy supply that addresses climate change and the commitments made under the Paris Agreement. In addition, many countries in Africa and other jurisdictions are launching initiatives and providing funding, investments and grants for African renewable energy projects.
What does Climate Risk really mean for African economies? (OECD Development Matters)
Discussions on green and climate finance in Africa often dwell on two issues. The first is why it’s so difficult to scale-up this type of financing on the continent. The second is the issue of layered risk: some are not keen to layer ‘ESG’ risk on top of ‘Africa’ risk in investments.
The first concern on scaling green and climate finance in Africa is understandable. From a demand perspective, the Africa Development Bank estimates that the continent will require an average of USD 1.4 trillion between 2020-30, yet in terms of supply, climate finance committed and mobilised for Africa is falling short. As it stands, there will be an estimated annual climate financing gap of USD 99.9–127.2 billion between 2020–30. It follows that meeting climate financing commitments already made is likely to be a challenge.
Compounding this dilemma, is the continent’s seeming inability to absorb green and climate investors already interested in Africa. For climate financiers, risks associated with informality and the dominance of SMEs on the continent mean that investments originate and are implemented in an environment dominated by small ticket sizes, data holes, information asymmetry, lack of standardisation, limited line of sight to impact, and concerns about verification and compliance.
The market for minerals that help power electric vehicles, wind turbines, solar panels and other technologies key to the clean energy transition has doubled in size over the past five years, according to a new report by the International Energy Agency.
The first annual IEA Critical Minerals Market Review, released today along with a new online data explorer, shows that record deployment of clean energy technologies is propelling huge demand for minerals such as lithium, cobalt, nickel and copper. From 2017 to 2022, the energy sector was the main factor behind a tripling in overall demand for lithium, a 70% jump in demand for cobalt, and a 40% rise in demand for nickel. The market for energy transition minerals reached USD 320 billion in 2022 and is set for continued rapid growth, moving it increasingly to centre stage for the global mining industry.
In response, investment in critical mineral development rose 30% last year, following a 20% increase in 2021. Among the different minerals, lithium saw the sharpest increase in investment, a jump of 50%, followed by copper and nickel. The strong growth in spending by companies on developing mineral supplies supports the affordability and speed of clean energy transitions, which will be heavily influenced by the availability of critical minerals.
Rapid poverty reduction in some countries, data missing in many others (UN News)
According to the updated global Multidimensional Poverty Index, revealed on Tuesday by the UN Development Programme (UNDP) and the Poverty and Human Development Initiative at the University of Oxford, progress was seen in India, where 415 million people exited poverty in just 15 years, as well as in China (69 million) and Indonesia (8 million).
“As we reach the mid-point of the 2030 Agenda for Sustainable Development, we can clearly see that there was steady progress in multidimensional poverty reduction before the pandemic,” Pedro Conceição, Director of the Human Development Report Office, said.
But the lack of data for most of 110 countries covered by the index restricts the understanding of just how deeply the pandemic has impoverished millions, highlighting the urgent need to strengthen data collection.
One year of the Black Sea Initiative: Key facts and figures (UN News)
Nearly one year into the agreement, more than 32 million tonnes of food commodities have been exported from three Ukrainian Black Sea ports to 45 countries across three continents. The partial resumption of Ukrainian sea exports enabled by the Initiative has unblocked vital food commodities and has helped reverse spiking global food prices, which reached record highs shortly before the agreement was signed.
Although global food commodity prices have generally fallen, many factors influence food affordability and domestic food inflation, including exchange rates. The Initiative has helped reconnect foodstuffs from Ukraine to global supply chains, contributing to lower prices on world markets.
Before the conflict, Ukraine was one of the leading grain exporters and the leading global exporter of sunflower oil. Its produce must continue to flow unhindered to supply markets and help to contain prices. A lack of food supplies produces knock-on effects for the lives of millions of people, particularly the poorest, hitting them hard in the areas of health, education, and social cohesion. The Initiative has allowed the partial resumption of vital food supplies into the market. It has given Ukrainian farmers some level of predictability in production and harvest and has revived key shipping lanes.
Twin transition for global value chains: Green and digital (UNCTAD)
The green and digital transitions have developed in parallel to date, especially in latecomer countries, but green and digital technologies are increasingly becoming intertwined. Future policies should focus on aligning green and digital strategies, developing digital competencies and strengthening financial support and international partnerships.
Related News
tralac Daily News
The African Continental Free Trade Area (Afcfta) Unveils Remarkable Benefits for South Africa (the dtic)
The African Continental Free Trade Area (AfCFTA) has emerged as a game-changer, presenting South Africa with unparalleled benefits and opportunities. This was said by the Director of Africa Bilateral Economic Trade at the Department of Trade, Industry and Competition (the dtic), Mr Calvin Phume, during the AfCFTA awareness workshop which took place in Cape Town.
“This unparalleled market reach will catalyse a surge in trade, enabling local businesses to tap into new market opportunities, expand their operations, attract investments and bolster their revenue streams,” he said. He emphasised the transformative power of the AfCFTA and the benefits and opportunities that it will bring to South Africa are truly remarkable.
“We are poised to witness a surge in trade activities, fueling economic growth and fostering cross-border collaboration. With the AfCFTA now in full swing, South Africa stands at the forefront of a momentous trade revolution that will shape the future of the continent encouraging innovation and promoting the development of value-chains, thereby spurring industrialization and job creation across sectors. As businesses gear up to leverage the vast consumer base offered by AfCFTA, the stage is set for unprecedented growth and prosperity,” he said.
Transport sector has role to play in sustainable economies – Chikunga (Engineering News)
The transport sector is not untouched by climate change and also has considerably high negative externalities, and this necessitates innovative thinking around the opportunities to renavigate transport systems towards greater resilience and becoming a true enabler of sustainable economies.
This was emphasised by Minister of Transport Sindisiwe Lydia Chikunga, delivering the keynote address on the first day of the forty-first South African Transport Conference, being held in Pretoria this week.
Chikunga said that, as the stakeholders in the industry look to rethink transportation, they must first identify and respond to the current existing modalities, which makes building resilient transport systems difficult to achieve.
This, she said, includes glaring extensive vulnerabilities, which include a lack of harmonisation of policy, regulation and automated planning across the region.
SA rallies Nigerian businesses for BRICS’ multi-sectoral investments (Businessday NG)
The South African Consulate in Lagos has urged Nigerian businesses to take advantage of South Africa’s hosting of the regional economic group, BRICS, an acronym for Brazil, Russia, India, China, and South Africa, this August.
Bobby Moroe, consul-general of the Lagos Consulate made the call at a roundtable with the Nigerian business community with the theme, “Promoting Regional and Continental Trade through African Continental Free Trade Area (AfCFTA) and BRICS” in Lagos.
According to him, while South Africa is currently the only African member of the BRICS, it is hosting on behalf of the entire continent. Moroe said Nigeria as well as other African countries will also benefit immensely from participating in the meeting as countries on the continent share similar challenges, which require similar solutions.
While emphasising the importance of collaboration of all countries in the Southern part of the globe, Moroe said: “In the post-COVID-19 world order, South-South cooperation has become very important. The socio-economic and political challenges faced by South Africa are no different from the challenges that are facing the entire continent. So, whatever it is that we advance at the level of BRICS formation, we advance not only on behalf of South Africa, but on behalf of the rest of the continent.
We Want Nigeria, US Trade Volume Grow Up, Says President Biden’s Advisor (Leadership)
The US government has expressed its continued commitment to supporting and developing Nigeria and other African countries’ economy and trade. It also charged Nigeria to develop its agricultural potentials particularly cocoa production to boost the economy and stressed the need for the country to take advantage of the American law on the African Growth and Opportunities Act.
This came as the Cocoa Farmers Association of Nigeria (CFAN) called for the semi-deregulation of the Cocoa economy and establishment of the Cocoa Commission.
A member, Advisory Council to the American President, Joe Biden, Mr Franklin Olakunle Amoo spoke in Ado Ekiti, the Ekiti state capital at the inauguration of the CFAN 12-member 2nd National Working Committee.
Delivering a keynote address on the ease of doing business in Africa, during the event with the theme: “Renewed Hope: Rejuvenating Nigeria’s Cocoa Culture”, Amoo said, “The US government is very interested in seeing more private sector environment from US companies to engage with the Nigeria economy in particular.
AfDB urges diversification of Nigeria’s export, revenue bases (Newsdiaryonline)
The African Development Bank (AfDB) has urged the diversification of Nigeria’s export, revenue bases and trade facilitation capacity to boost revenue generation potential. The AfDB President, Dr Akinwumi Adesina, said this at the second edition of the Nigeria Employers’ Summit on Monday in Abuja. The summit has as its theme, “Trade and Non-Oil: Changing the Narratives for Rapid National Development.
Adesina, represented by Mr Lamin Barrow, the Director-General, Nigeria Country Department of AfDB, said the measures would address some major risk faced by the country. According to him, Nigeria like many other oil-exporting countries, faces several challenges related to global commodity price volatilities. He said that the key challenge was the fiscal risks associated with overdependence on oil exports for fiscal revenues.
“Nigeria’s economy is one of the most diversified in Africa, with the oil sector accounting for less than 10 per cent of the Gross Domestic Product (GDP) with the non-oil sectors accounting for more than 90 per cent. “The key challenge is revenue concentration.
Chad: Targeted policy reforms can boost resilience to climate change and flooding (World Bank)
Unplanned and rapid urbanization interacts with environmental degradation and climate change to amplify flood risk in the country
The 2023 Chad’s Economic Update shows that floods cause significant spillover effects that disrupt economic activity, negatively impact on the well-being of the most vulnerable and exacerbate issues linked to internal displacement and conflict. As Chad is one of the most vulnerable countries to climate change, in the absence of urgent measures to effectively reduce risks and strengthen climate adaptation, the consequences of floods could further worsen, and hamper long-term growth and development prospects.
As for the country’s macroeconomic outlook, the report indicates that Chad experienced a modest GDP growth in 2022, with the expected recovery dampened by floods and a volatile security environment. After contracting by 1.2% in 2021 (-4.3% per capita), the Chadian economy was expected to recover in 2022 thanks to high oil prices, an increased oil production and the depreciation of the FCFA/USD exchange rate. However, the recovery was dampened by floods and a volatile security environment, with GDP growth estimated at 2.2% (-0.9% per capita), and non-oil GDP growth at 1.3%, from 0.4% in 2021. Industry, mainly the oil sector, was the main contributor to growth (4.1 percentage points), followed by agriculture with a contribution of 0.6 percentage points, due to inadequate rainfall distribution and severe floods.
Liberia: Russia Blamed for Wheat Surge in Africa (Liberian Observer)
A German-based agricultural economist at the Institute of International and Security Affairs in Berlin said the impact of the Russia and Ukraine war on food supply to Africa is based on complicated characteristics of vulnerability for different countries.
For Dr. Bettina Rudloff, the impacts are composed of import quality and prices, own stocks, and food aid. “The wheat prices have currently relaxed to the pre-war level,” she said. “But these prices are still much higher than the average of the last few years. And the war’s effects came on top of anyhow problematic situations as well as concerns about global hunger.”
One of the immediate effects of the crisis has been the disruption of trade flows. Russia and Ukraine were important exporters of agricultural commodities such as wheat, corn, and sunflower oil. However, the conflict has led to trade restrictions and disruptions, making it difficult for these countries to export their products. This has resulted in a reduction in the global supply of these commodities and subsequently, an increase in their prices.
Countries like Liberia depend on exports from these countries, the war is a setback to them. The loss of grain and food imports means that it will be more difficult for Africans to obtain these goods and, above all, pay for them.
Afreximbank launches the African Trade Report 2023 (Afreximbank)
The African Export-Import Bank’s (Afreximbank), 2023 edition of the African Trade Report (ATR2023) was launched at the Bank’s Annual Meeting – AAM2023 and 30th Anniversary celebrations in Accra, Ghana.
Launching the ATR2023 along with HE Ambassador Albert Muchanga, the African Union Commissioner for Economic Development, Trade, Industry and Mining, Professor Benedict Oramah, the President and Chairman of the Board of Directors of Afreximbank, said that Africa showed growth resilience amid a synchronised global deceleration under the confluence of overlapping crises, including lingering effects of the Covid-19 pandemic, record-high inflation, heightening geopolitical tensions and intensification of trade wars.
Indeed, amid these global headwinds Africa remained on a growth trajectory, with its GDP growth increasing by 3.9% and its merchandise trade expanding by 20.9% in 2022, above the world’s average of 12%, according to the report.
Economists call for EAC trade tribunal (93.3 KFM)
Players in the small and medium enterprise sector are calling for the establishment of an East African Community (EAC) trade tribunal to address regional trade bottlenecks such as the recent stand-off at Elegu border. This follows the release by the government of South Sudan, of the first 26 of the 92 trucks that have been impounded for more than a month over allegations of high levels of aflatoxins in the grain cargo.
the Executive Director of the Federation of Small and Medium Enterprises (FSME), John Walugembe says having a trade tribunal will help address such unjustified non-tariff barriers in the future, and will foster smooth and full regional economic integration.
EAC plan to raise revenue from fourth tax band faces headwinds (The East African)
East Africa’s plan to generate an additional $18.9 million worth of intra-regional trade from the revised Common External Tariffs (CET) is facing headwinds as partner states seek preferential tax treatment, putting implementation of the four-band tariff structure in jeopardy.
Last year, the EAC Secretariat underscored the enforcement of the 35 percent duty on finished products imported into the region, under a new tariff structure that took effect on July 1, 2022.
The secretariat through a report dated January 2022 analysing the potential benefits of the fourth band argued that the maximum tariff of 35 percent will eliminate frequent use of stay of applications (SOAs) by partner states by adoption of mixed customs tariff structure and help promote intra-regional trade, investments and employment creation.
However, a review of an EAC gazette notice dated June 30, 2023 shows how virtually all EAC member states have sought preferential tax treatment through stays of applications and exemptions on several finished and sensitive items.
Mitumba Supports 3.4 Million Jobs And Contributes $419 USD In Income Duties And Taxes To The EAC (Soko Directory)
A new report commissioned by the Mitumba Consortium Association of Kenya on the Second-Hand Clothing Industry in the East Africa Community has warned that countries must avoid protectionism against the import of second-hand clothing. This report comes as trade ministers converge in Kenya this week for the 54th All-Africa Trade Ministers meeting of the African Continental Free Trade Area (AfCFTA), where the origin of textiles is set to be discussed.
The report, launched on the 10th of July in Kenya and written by Professor Patrick Diamond of Queen Mary University, London, states that any restrictions would violate trade agreements, particularly with the WTO and United States.
The report also shows that a policy approach in which governments focus on proactively expanding state of the art sorting-facilities while boosting skills and entrepreneurship is far more likely to deliver growth and jobs in the future.
Of particular interest to the EAC, the paper argues that the new domestic textile production industry and the second-hand clothes (SHC) industry can and should work together, for the mutual benefit and growth of both sectors.
The contribution of the used clothing and footwear industry to the economic growth and employment performance of the EAC is vast. We estimate that the SHC industry supports up to 3.4 million jobs throughout the supply chain in East Africa.
Moreover, the sector delivered government revenues estimated at US$419 million in 2021 across East Africa through taxing consumption and incomes associated with SHC. Moreover, SHC generates competition that helps to incentivize technological innovation throughout the textile production sector.
Ruto woos Comoros to join EAC in quest for expanded bloc (The East African)
Kenya’s President William Ruto is making his vision of a future East African Community clear with the latest offer to the Comoros to join the bloc.
On an official trip to Moroni on Thursday, where he attended the country’s 48th independence anniversary, President Ruto said Nairobi supports closer collaboration with the Comoros, an island nation east of the Mozambican channel.
“Kenya and Comoros stand as partners in progress, committed to deepening their collaboration for the benefit of its citizens,” President Ruto told his host Azali Assoumani, also the current Chairperson of the African Union.
Nairobi and Moroni signed a General Co-operation Agreement; an omnibus pact providing guidelines on supporting one another on key global issues such as trade, climate change and blue economy.
It will offer a “framework which the two countries will establish structured co-operation in areas such as Trade and Investment, Transport, Education, Tourism, Agriculture, Blue Economy and Maritime Security to meet the aspired social — economic growth and Africa Union’s Agenda 2063,” said a joint communique.
Initiative to Assist MS Develop NTBs Elimination Strategies is Underway (COMESA)
About 29% of Non-Tariff barriers reported through the tripartite online reporting, monitoring, and eliminating mechanism are in the intra-COMESA trade. Majority of them, 82% emanate from operational issues including on Rules of Origin while the remaining 18% are policies/measures that result in NTBs.
Currently the tripartite NTBs system, which is a joint initiative of the regional economic blocs, COMESA, the EAC and SADC is used to maintain vigilance on the NTBs as they pose the greatest hindrance to intra-regional trade.
Hence, COMESA Member States are under obligation to establish recommended institutional and regulatory frameworks by strengthening the NTB implementation framework at national level, including setting timelines for their elimination as they occur. Notwithstanding, some member States lack the capacities to report, monitor and resolve such trading disputes, according to COMESA Director of Trade and Customs, Dr Christopher Onyango: “Besides, multiple memberships to various RECs also pose a challenge to harmonizing the various mechanisms for resolving trade disputes across regional and international markets,” Dr Onyango said.
African countries generated €1.7bn in additional revenues from tackling tax evasion, illicit financial flows (Engineering News)
African countries have realised additional revenues totalling €1.69-billion owing to voluntary disclosures, the implementation of information exchange mechanisms, and rigorous offshore investigations, the ‘2023 Tax Transparency in Africa‘ progress report, published by the Africa Initiative, shows.
From 2009 to 2022, these measures have effectively boosted tax revenue, interest and penalties, underscoring a substantial progress in tax transparency across the continent, development finance institution the African Development Bank (AfDB) reports.
The release of the report comes as African governments continue to step up efforts to bolster domestic resource mobilisation in the face of economic headwinds that include global inflation and mounting debt levels. Developed economies bloc the Organisation for Economic Cooperation and Development (OECD) estimates that Africa loses as much as $60-billion each year in illicit financial flows.
SEFA elevates hydropower modernisation as an accelerator of Africa’s Energy Transition (AfDB)
The African Development Bank-managed Sustainable Energy Fund for Africa (SEFA) has showcased hydropower as a key element of meeting the accelerating demand for renewable energy at the Africa Energy Forum held in the Kenyan capital. The Africa Energy Forum took place in Nairobi from 20-23 June, organised by Energy Net with support from the Government of Kenya, the African Development Bank, IFC and other partners.
A session titled ‘Hydropower Modernisation to Accelerate Africa’s Energy Transition’ posited that renovating existing hydropower infrastructure represents a compelling opportunity. This is because greenfield hydropower projects have high upfront costs, and significant environmental and social impacts, leading to long lead times before they come onstream.
African Development Bank Director for Renewable Energy and Energy Efficiency, Dr, Daniel Schroth, who moderated the session, said: “Modernising existing hydropower assets are accelerator for Africa’s energy transition and it increases the availability of dispatchable renewable energy in a relatively short period of time while providing opportunities for integrating variable renewable energy sources, such as floating solar.”
The Arab-Africa Trade Bridges Program Launches AATB Food Security Program (Afreximbank)
The Executive Committee of The Arab-Africa Trade Bridges (AATB) Program, a multi-donor, Inter-regional program, launched a US$1.5 billion Food Security Program to address the issues of food insecurity in the Arab and African regions amidst the ongoing global food security crisis. The crisis is a critical challenge facing the world today and continues to be a top priority on the international development agenda.
By emphasizing its special interest in the food sector, AATB aims to leverage its expertise, resources, and partnerships to implement targeted engagements that address the specific challenges faced by member countries. The Food Security Program is developed around the four pillars of the AATB Program, namely Trade, Investment, Insurance, and Infrastructure. In addition, the program incorporates a fifth element, which is capacity development and technical assistance, serving as a cross-cutting theme and an enabling factor. As part of the program, funded and unfunded financial transactions related to food security will be provided, alongside capacity development and technical assistance services.
South African bank highlights importance of US-Africa business summit (Engineering News)
South Africa‘s Standard Bank (not to be confused with the now-unrelated UK-based Standard Chartered Bank) has highlighted the importance of the US-Africa Business Summit, which will run from Tuesday (July 11) to Friday this week. The summit will take place in Botswana, and is expected to involve some 1 000 participants from across Africa and the US, including representatives of the public and private sectors, including senior government officials, Cabinet Ministers (including from the US) and African Heads of State.
“There is immense potential for stronger ties and greater mutual benefit between the world’s biggest economy and Africa,” stresses Standard Bank Group CEO Sim Tshabalala. “Achieving this will require greater levels of collaboration, access and participation, which is precisely why this summit will be so valuable.”
G20 nations raked in $50bn in debt repayments from poor countries since Covid, report finds (Yahoo News)
Debt-stricken nations that are also highly vulnerable to the climate crisis have paid a staggering $50bn (£39bn) to G20 creditors since the onset of the Covid-19 pandemic, according to a new report.
The analysis, conducted by the International Institute for Environment and Development (IIED), sheds light on the financial burden faced by the world’s poorest and most climate-vulnerable countries, as they grapple with repaying debts to the 20 richest nations of the world. The report, based on the latest data from the World Bank, comes ahead of the upcoming meeting of G20 finance ministers and central bank governors in Gandhinagar, India.
The analysis reveals that the payments made by 58 Least Developed Countries (LDCs) and Small Island Developing States (SIDS) reached $21bn (£16bn) in 2022, marking an increase from $14bn (£11bn) in 2021 and $13bn (£10.3bn) in 2020.The rising debt repayments mean that the world’s poorest countries, which also face the biggest risks from the worsening climate disasters, are trapped in an ongoing cycle of financial burden.
How to narrow the investment gap for global goals (UNCTAD)
To shore up funding for the UN Sustainable Development Goals (SDGs), countries need more proactive and tailored services for investors. An estimated $4 trillion is required in developing countries annually to achieve the SDGs.
A new UNCTAD publication entitled “Facilitating investment in the Sustainable Development Goals” outlines how investment promotion agencies (IPAs) can be a game changer, as they are the focal point for government-wide efforts to facilitate foreign investment. UNCTAD recommends ways for IPAs to help bolster SDG implementation through investment facilitation.
“They (IPAs) can do this by ensuring that investment facilitation services are inclusive and address the specific needs and opportunities of SDG-related sectors as well as of specific investor groups that have a high SDG impact, such as social entrepreneurs and women, youth and rural investors,” the publication says.
Goods Council reviews work on MC12 follow-up (WTO)
At a meeting of the Council for Trade in Goods on 6-7 July, WTO members discussed how the Council should move forward in implementing some of the outcomes of the 12th Ministerial Conference (MC12) related to improving the functioning of the Council and its subsidiary bodies. The Goods Council also continued discussions on the Least-Developed Countries (LDC) Group’s proposal concerning countries graduating from LDC status and revisited 37 trade concerns raised in previous meetings.
Fisheries subsidies chair opens fourth “Fish Week” to help distil elements for negotiation (WTO)
The chair of the fisheries subsidies negotiations, Ambassador Einar Gunnarsson of Iceland, on 10 July opened the fourth of a series of “Fish Weeks” with the aim of seeking WTO members’ views on what elements from the various documents before members, including new proposals, would form the best basis for text-based discussions in the fall. Deputy Director-General Angela Ellard acknowledged the progress made but also affirmed the need to deepen discussions at this last Fish Week before the WTO’s August break.
Related News
tralac Daily News
South Africa’s agricultural sector recorded significant decline in the first quarter (Engineering News)
The Bureau for Food and Agricultural Policy (BFAP) has highlighted, in a brief report, that, while the total South African economy avoided a technical recession during the first quarter of this year, with national gross domestic product (GDP) rising by 0.4%, the same could not be said for the agriculture, forestry and fisheries sector. This sector experienced a year-on-year decline of 5.4% and, quarter-on-quarter, dropped 12.3%.
Of the sub-sectors of agriculture, the one that made the biggest contribution to total agricultural revenues was animal products, accounting for 56%. Quarter-on-quarter, animal products’ GVP grew by 9.4%. The components of the sub-sector which recorded the highest growth rates were pork (27%), milk (20%) and poultry (19%). In all three cases, this was due to higher prices for these products. On the other hand, the sub-sector components which saw the biggest declines were sheep, wool, and beef, which contracted by 11%, 9% and 3%, respectively. “Relative increases in all livestock inputs have been higher than that of livestock output prices, which implies that revenue gains did not translate into GDP gains,” cautioned the BFAP.
Africa needs to rapidly expand, diversify its industrial capacity – President Ramaphosa (SAnews)
President Cyril Ramaphosa has challenged African leaders to shift their focus from being producers of raw materials processed elsewhere. The President further called on the continent to be manufacturers of their own goods and to rebuild their industrial capacity to serve the growing young population. The President was speaking on Thursday in the Democratic Republic of the Congo (DRC) where he kicked off his working visit at the invitation of President Félix Tshisekedi.
“We need to shift away from simply being producers of raw materials that are processed elsewhere in the world. Africa’s appetite for industrialisation has been whetted.” He believes that the new investment in factories and logistics systems can power higher levels of growth and jobs.
“South Africa and the DRC can be leaders in this important project of ensuring African raw materials are processed on the African continent. “We can combine our raw materials and skills, our technology and capital, our young people, and universities into a powerful drive to industrialise.”
The Senior Officials from the Southern African Customs Union Member States (Botswana, Eswatini, Lesotho, Namibia and South Africa) and Mozambique (SACUM), and the United Kingdom of Great Britain and Northern Ireland (UK) held the Second Meeting of the Trade and Development Committee (TDC) under the SACUM-UK Economic Partnership Agreement (SACUM-UK EPA), virtually on the 5th April 2023.
The TDC took stock of actions resulting from its first meeting, in pursuance with its obligations to facilitate and supervise the implementation of the Agreement. This included consideration of the multilateral safeguard’s exemption, development of the Rules of Procedure for the institutions established under the Agreement, the selection of arbitrators, as well as other work undertaken in progressing the Built-in-Agenda (Article 117) and the Transitional Implementation Arrangements (Article 118).
Under the Built-in Agenda, the Parties noted that links to updated tariff schedules had been exchanged and work was continuing on exchanging information on the Tariff Rate Quota (TRQ) utilisation data. The Parties further noted SACUM had submitted proposals on export taxes, and the scope and volume under the automatic derogation for tuna. Consolidated information had also been shared by the SACU Member States on Sanitary and Phytosanitary (SPS) and Technical Barriers to Trade (TBT) Regimes, and capacity building needs respectively.
Kenya’s first quarter food import bill rises 58.4pc to $569m (The East African)
Kenya’s food import bill in the first quarter of the year rose 58.4 percent to hit Ksh80.2 billion ($569.4 million), nearly matching what was fetched from exporting food. The latest data from the Kenya National Bureau of Statistics (KNBS) shows the imports rose from Ksh50.6 billion ($359.25 million) in a similar period last year as the country shipped in more volumes of commodities such as rice, wheat and processed food.
The rise came in the period food imports increased by 10.4 percent to Ksh87.5 billion ($621.23 million), leaving the gap between exports and imports at Ksh7.3 billion ($51.83 million)—one of the narrowest in the recent past. Kenya’s spending on food imports in the first three months of 2021 was about 64 percent of the money received from food exports, with the difference between the two at Ksh28.6 billion ($203 million). However, food imports have been growing at a faster pace than that food exports to cut the difference to Ksh7.3 billion in the three months ended March 2023.
Setting the Stage for Implementation of the Financing Model for MSMEs for the Kingdom of Eswatini (UNECA)
An inclusive financing model for MSMEs was developed with technical assistance from the Economic Commission for Africa to alleviate a key constraint for Micro, Small and Medium Enterprises (MSMEs): that of access to finance. Although it is estimated that MSMEs in Eswatini have the potential to provide employment opportunities to more than 65 percent of the workforce and contribute over 50 percent of GDP; this potential remains unfulfilled.
MSME Director in the Ministry of Commerce, Industry and Trade, Mr. Mluleki Dlamini, indicated that an inclusive financing model for MSMEs was launched during the height of the COVID-19 pandemic on 1st September 2021 with the goal of expanding access to funding, supporting MSMEs’ growth and solving the issues in the MSME financing ecosystem.
In her opening remarks, Ms. Olayinka Bandele, Chief, Inclusive Industrialization Section, ECA, Sub-regional Office for Southern Africa highlighted that “MSMEs are cornerstones of inclusive and sustainable development, with the potential to significantly accelerate industrialization and support high-value-addition activities. They have an immense potential to promote domestic-led growth in nascent and established industries, to strengthen the resilience of the economy in a challenging environment, and to contribute considerably more to employment and poverty reduction.”
SADC launches Success Stories for Lesotho (SADC)
The Southern African Development Community (SADC) on 5 July, 2023 launched the SADC Success Stories publication for the Kingdom of Lesotho which contains stories on the programmes and benefits derived from the implementation of the SADC Regional Integration agenda.
Hon. Dr. Matlanyane added that the Lesotho SADC Success Stories will assist in building SADC visibility, which in turn, will engender collaboration and partnership in the implementation of the SADC regional integration agenda.
The Minister encouraged members of the media fraternity in Lesotho to continue reporting stories on SADC regional integration, drawing from examples of the stories contained in the Lesotho SADC Success Stories. On this point, the Minister took the opportunity to sensitise and encourage journalists in Lesotho to participate in the SADC Media Awards by focusing on positive stories that promote and deepen SADC regional integration and development.
Among other stories, the publication highlights the implementation of improved efficiency due to fast-track declaration of goods and travel, and better traffic control following the implementation of a coordinated border management project, among others. It also highlights the implementation of Cross Border Money Transfer Project between Lesotho and South Africa which has been hailed as one of the cheapest cross-border products in the world. On shared watercourses, the publication highlights the implementation of initiatives to preserve Lesotho’s most valuable resource, water, referred to as Lesotho’s ‘white Gold’.
EAC Common External Tariff changes released (The Citizen)
Tanzania has identified imported goods that will be taxed under the East African Community (EAC) Common External Tariff (CET) in the current fiscal year. These include sugar, cooking oil, clothes and footwear, and buses for transportation. The country’s tariff rates will slightly differ from those that will be applied by fellow partner states in the seven-nation bloc.
The new import duty rates are among those approved by the EAC secretariat and were expected to be applicable from July 1st this year to June 30th, 2024.
Tanzania will grant stay of application of the EAC CET rate of 100 percent or $460/MT, whichever is higher, and apply a duty rate of 35 percent for one year on cane sugar imported under a permit issued by Tanzania Sugar Board. Rwanda is granting stay of application for EAC CET of 100 per-cent, or $460 per tonne, for the same commodity. It will instead apply a duty rate of 25 percent. Uganda is also charging a rate of 25 percent on sugar (for industrial use), while Burundi will exempt the same from tax.
Mixed reactions as EAC govts roll out budgets (The New Times)
East African governments in June presented their most ambitious budgets yet, which are expected to take effect this month, seeking to strengthen their economies, finance key government operations and repay existing debts.
However, despite a notable increase, economists are warning the region’s citizens to brace for tough times as the fiscal measures proposed in the 2023/24 budgets show little to no signs of further lowering the cost of living and some measures causing investor flight in the region’s biggest economies.
Alex Mapaunda, Tax Advisor at Deloitte based in Tanzania pointed out, the budgets have also highlighted the pursuit of supporting economic recovery in respective countries.
“We have been seeing growth rates of three percent and four percent but now countries are shooting for six percent to seven percent, for this year.”
Strengthening African Aviation: African Development Bank Collaborates with Airbus and ATR (Airspace Africa)
Air travel in Africa has faced significant challenges due to the impact of the Covid-19 pandemic, limited access to credit, and high operating costs. In a bid to address these issues and boost the continent’s aviation industry, the African Development Bank (AfDB) recently held workshops with aircraft manufacturers Airbus and ATR. The workshops focused on exploring avenues to strengthen access to finance for African airlines and developing financing instruments tailored to Africa’s aviation needs.
Air travel in Africa remains unaffordable for many due to high operating costs and limited passenger traffic. To increase profitability, carriers have been forced to raise fares, leading to intra-Africa flight prices that are 2-3 times higher compared to other regions. Furthermore, a significant portion of air traffic is concentrated in a few airports, such as Cairo, Johannesburg, Casablanca, and Addis Ababa, leaving many routes underserved. This situation highlights the need to enhance connectivity and expand air transportation across the continent.
Despite the challenges, Africa’s economies are projected to recover from the pandemic, presenting opportunities for growth in the aviation industry.
According to the 2023 Tax Transparency in Africa progress report unveiled at the 13th Meeting of the Africa Initiative in Cape Town today, African countries have realised additional revenues totalling €1.69 billion thanks to voluntary disclosures, the implementation of information exchange mechanisms, and rigorous offshore investigations.
From 2009 through 2022, these measures have effectively boosted tax revenue, interest, and penalties, underscoring a substantial progress in tax transparency across the continent. The report—co-produced by the Global Forum on Transparency and Exchange of Information for Tax Purposes, the African Union Commission and the African Tax Administration Forum, with support from the African Development Bank—presents the progress of 38 African countries in tackling tax evasion and other illicit financial flows (IFFs) through transparency and exchange of information. Five non-member countries participated in the study.
South Africa’s Minister of Finance Enoch Godongwana commended the Africa Initiative in his opening remarks. “During the past eight years, the Africa Initiative has changed the tax transparency landscape in Africa and aided the mobilisation of more than €300 million in domestic resources,” he said. Stressing the importance of political will in efforts to increase tax transparency, Godongwana said, however, that more could be done. He called for the Africa Initiative to strengthen African countries’ capacity to leverage exchange of information standards and protocols.
India is not ‘extractive economy’ and is not pursuing ‘narrow economic activities’ in Africa: Jaishankar (The Hindu)
In a veiled attack on China, External Affairs Minister S. Jaishankar has said that, unlike some other countries, India is not “an extractive economy” and it was not pursuing “narrow economic activities” in the resource-rich African continent.
“Today we want to see Africa grow. We want to see African economies grow. And our approach to Africa today is to trade more with Africa, invest in Africa, work with Africa, to create capacities in Africa, so that the rise of Africa also takes place as countries like India are rising in Asia.”
“We are not here as an extractive economy. We are not here in the manner in which a lot of other countries are there for very narrow economic objectives. For us, this is a broader, deeper partnership,” Jaishankar said, in an apparent reference to China’s forays, including those of its military, into Africa.
On trade, Jaishankar said that “Our trade with Africa is $95 billion... I can predict very confidently that.. will grow very rapidly in the community and they will grow rapidly in the coming decade for three reasons. One, the Indian economy, Indian businesses are going up more and more.”
“That’s one reason for demand in Africa. Now, it is up to us to meet that Africa will have a demand. We have to compete, you know, maybe they’ll go to China, Europe or Turkey. But if Indian business is more and more competitive if people are willing to go out more and more, I think a large part of the demand will be met,” he said.
Indo East Africa expo to unveil new trade opportunities (The Star)
The highly anticipated Indo East Africa Trade Expo 2023 kicked off today at the Tsavo Ballroom, KICC in Nairobi, Kenya. Running from 5th July 2023 to 7th July 2023, this prestigious event brings together a diverse range of Indian businesses and offers a unique platform to explore and leverage the latest trade opportunities between India and East Africa.
The Indo-East Africa Trade Expo serves as a gateway for fostering strong trade partnerships, encouraging collaboration, and promoting economic growth between India and East Africa.
“This Expo serves as a vital platform for participants to meet, network, and forge strategic alliances, ultimately boosting bilateral trade between India and East Africa,” said Dr Sonveer Singh, Founder Chairman Rajasthan Association of Kenya the spokesperson for the event
Russia-Africa Summit: One More Opportunity for Raising Trade Collaboration (Business Post Nigeria)
Russia holds an African leaders’ gathering this late July 27-28 in St. Petersburg, the second largest city in the Russian Federation. The summit is the highest historical profile and the largest-scale diplomatic landmark event in Russia’s bilateral relations with Africa. In our assessment of the emerging multipolar world, the majority of African states are swiftly aligning their policy orientation toward China and Russia.
Russian Ambassador-at-Large and Director of the Secretariat of the Russia-Africa Partnership Forum Oleg Ozerov, in an interview with Kommersant daily newspaper, explicitly explained that the summit is “envisioned by the Russian authorities, are intended to boost Moscow’s relations with African countries, contacts with which are currently deemed one of the most important aspects of Russia’s foreign policy.”
In the views of many policy experts, both local and foreign, African leaders, trade organizations and corporate business executives have an extraordinary opportunity to design a well-timed strategy to take advantage of the growing market and to boost trade as a way to reverse considerably trade imbalance that has existed from Soviet days between Russia and Africa.
Within the global changes, there are equally good business perspectives for Russia and Africa, for instance, with trade facilitation and support for business enterprises, either small or medium, to seek cooperation in areas of new trade opportunities both in Africa and in the Russian Federation.
UN-brokered grain and fertilizer deals ‘indispensable’ to global food security (UN News)
In a statement issued by his Deputy Spokesperson, António Guterres reiterated “the importance of full and continued implementation” of the agreements signed last July in Istanbul, known as the Black Sea Initiative – allowing Ukrainian grain and foodstuffs safe passage to world markets – and the Memorandum of Understanding with Moscow over fertilizer exports.
Russia is still weighing up if it will continue to be a part of the deal, agreed with Ukraine and administered along with the UN and Türkiye, past a deadline of 17 July. Last May, Russia had agreed to a 60-day extension, and the UN has been leading negotiations to ensure its continuation.
The UN chief’s statement said it was vital to ensure that food and fertilizers from Ukraine and Russia can keep on heading to countries in need, “smoothly, efficiently and at scale”. “These agreements are an all-too-rare demonstration of what the world can do when it puts its mind to the great challenges of our time,” he said. “Together, the agreements are contributing to sustained reductions in global food prices, which are now more than 23 per cent below the record highs reached in March last year.”
IMO adopts new net-zero plan for “close to 2050” (Ship Technology)
The International Maritime Organization (IMO) has adopted a new plan to reduce greenhouse gas (GHG) emissions from the global shipping trade. The 2023 IMO Strategy on Reduction of GHG Emissions from Ships includes the “common ambition to reach net zero… close to 2050”.
There are several interim targets along the way to 2050, including a 20% GHG cut by 2030 and at least 80% by 2040. All the targets are made in comparison to the 2008 GHG figures. In setting its targets for the global industry, the IMO said its targets provide “a needed incentive while contributing to a level playing field and a just and equitable transition.”
The IMO said a goal-based marine fuel standard regulation and a maritime GHG emissions pricing mechanism would be developed and finalised by IMO members, but only an agreement to install future regulation was signed at this week’s Marine Environment Protection Committee (MEPC 80).
STDF Annual Report: Adapting and learning to facilitate safe trade in food (WTO)
In response to the changing global landscape, the STDF has actively collaborated with government institutions, international organizations and development partners across agriculture, health, environment, and trade and development sectors to enhance compliance with international food safety, animal and plant health standards and facilitate safe trade in food.
“The STDF is working to create a world where food traded is safe and secure for all, and also to facilitate the compliance of relevant standards by developing countries’ exports” said WTO Deputy Director-General, Jean-Marie Paugam.
“Compliance with SPS requirements is already a major challenge for many developing countries. Climate change is making this even more difficult. Strengthening developing countries’ SPS systems, including capacities to monitor and control new pests and diseases, is more important than ever and will contribute to increased food production and food security,” said Melvin Spreij, Head of the STDF.
Investment facilitation negotiators announce deal on Agreement’s text (WTO)
WTO Director-General Ngozi Okonjo-Iweala welcomed this major achievement towards concluding an IFD Agreement, which aims at attracting and retaining more and higher quality investment, taking into account the respective development priorities of members.
“This represents a momentous achievement,” said DG Okonjo-Iweala, highlighting that the text is the product of discussions among more than 110 participating members, including 80 developing economies, 20 of them least-developed countries (LDCs). In addition, out of the roughly 70 text-based proposals, two-thirds came from, or were co-sponsored by, developing or LDC members, noted the Director-General.
“The proposed IFD Agreement would not just help WTO members attract and retain more investment, but also higher-quality investment,” added DG Okonjo-Iweala. “By enhancing transparency, accountability and good governance in investment procedures, the Agreement fosters a business climate more conducive to sustainable development. The text also contains provisions addressing “Responsible Business Conduct” and “Measures Against Corruption” — again breaking new ground within the WTO.”
Co-convenors of e-commerce negotiations review progress, reflect on way forward (WTO)
DG Okonjo-Iweala added: “These negotiations are breaking new ground worldwide in that they are the first initiative to bring so many members to the negotiating table on such a comprehensive list of e-commerce-related issues. But I do want to sound a warning: you don’t have too much time. The developments in the digital area are going so fast.”
The prospects for international investment looked extremely gloomy last year, with rising inflation, fears of recession and turbulence in the financial markets causing investor uncertainty around the world, putting many investment plans on hold at the beginning of 2022. However, In the end, international investment flows suffered but proved more resilient than expected.
The major disparities in global investment patterns remained. The growth of investment in developing countries is concentrated in a small number of large emerging economies. Foreign direct investment flows to many smaller developing countries are stagnant, while flows to the least developed countries fell by 16 percent from an already low base.
Developing countries only attracted foreign direct investment in clean energy worth only $544 billion in 2022. Developing countries face an investment gap of $2.2 trillion annually for the energy transition, out of a $4 trillion annual funding gap for the Sustainable Development Goals. So we are making a strong call for massive investment in renewable energy so developing countries can make the energy transition they need.
Related News
tralac Daily News
Inaugural EU-Rwanda Business Forum attracts over 600 participants during two days of exploring trade and investment opportunities (European Union)
Over 100 business leaders from the European Union (EU) participated in the first ever EU-Rwanda Business Forum to engage the Rwandan private sector and explore trade and investment opportunities in the country.
The Right Honourable Prime Minister of Rwanda, Dr. Édouard Ngirente officially opened the forum noting: ”Over the years, we have seen investments, with the EU as the largest source, yield tangible results in Rwanda. Between 2018 and 2022, investments worth over US$ 870 million were registered in Rwanda. These investments are transforming the lives of our people through job creation and empowering the private sector, which is a key driver of economic growth.”
On his part, Koen Doens, EU Director General for International Partnerships noted that Africa plays a key role in addressing global challenges through private sector investments. “The global supply chain is reliant on a limited number of countries, which makes it very fragile when challenges happen. This is why we are looking at diversification and see Africa presenting huge opportunities to address these challenges. Rwanda has put in place the right regulatory environment and is attracting investments. The Government has positioned itself on a number of critical issues as a regional hub and do hope that this forum creates the right dynamic to move forward as soon as possible,” he explained.
The Department of Trade, Industry and Competition (the dtic) is pleased to announce the upcoming African Growth and Opportunity Act (AGOA) Provincial Consultative Dialogue, themed “Understanding the Benefit of AGOA to SA Exporters.” These consultative dialogues aim to engage with AGOA beneficiary export companies and identify the challenges faced by exporters, fostering productive dialogue and collaboration. In the first phase, the consulative dialogues will be rolled out across five provinces: Gauteng, KwaZulu-Natal, Eastern Cape, Limpopo, and Western Cape.
AGOA, which is a piece of legislation that was passed by the United States (U.S.) Congress in May 2000. It provides eligible sub-Saharan African countries with duty-free access to the U.S market for over 1,800 products, in addition to the more than 5,000 products that are eligible for duty-free access under the Generalised System of Preferences program. The dialogues will provide a platform for exporters to gain a deeper understanding of AGOA and its immense potential to drive trade and investment in the region.
The symposium will focus on the following key areas: Enhancing knowledge and understanding of AGOA regulations and requirements. Identifying barriers and challenges faced by exporters Providing guidance on accessing support services, incentives, and resources available to exporters.
Kenya’s imports from Tanzania at 3-year low on fresh trade fights (Nation)
Kenya’s imports from Tanzania dipped to the lowest level in three years between January and March partly on renewed trade tensions between the two neighbours, bucking a trend of gains under truce deals by retired President Uhuru Kenyatta and his Tanzania counterpart Samia Suluhu.
The value of goods ordered from Tanzania dropped for the second quarter in a row to Sh7.89 billion in the first quarter of 2023, which is the lowest since the second quarter of 2020 when the imports were reduced to just Sh5.21 billion due to Covid-19 restrictions.
Tanzania is the third largest exporter of goods to Kenya in Africa only behind her East African Community (EAC) fellow Uganda and South Africa which is now the leading exporter of goods to the country on the continent.
Zim, Bots moot export corridor (The Standard)
The Agricultural Marketing Authority (AMA) is negotiating with its Botswana counterpart to establish an export corridor that will see local horticultural players exporting their products to the neighbouring country.
Speaking after meeting a Botswana Agricultural Marketing Board (BAMB) delegation in Harare last week, AMA chief executive officer Clever Isaya said modalities were already in place for local farmers to export their produce to Botswana. “We should take advantage of the fact that demand for local horticultural products is high in Botswana. Our objective is to grow trade between Botswana and Zimbabwe, and by engaging BAMB we have the right partner to achieve that,” he said.
Head of the Botswana delegation only identified as T Baitshoki said even though local horticultural products, especially fruits and vegetables, were already in Botswana, there was room for expansion. “I have no doubt that Zimbabwe has the capacity to supply the Botswana market. What is now required is for Zimbabwean farmers to take advantage of existing bilateral relations between the two countries to cement trade relations,” Baitshoki said.
Rwempasha border ‘will boost trade, help curb illegal crossings’ (The New Times)
Residents in Rwempasha sector, Nyagatare District, can now enjoy the convenience of shorter travel distances to and from Uganda with the reopening of Rwempasha border post. The border post, which officially opened on Wednesday, July 5 aims to encourage cross-border trade and reduce illicit movements between residents of Rwempasha, Musheri, and their Ugandan neighbours.
Angelique Mukamana, a resident of Rwempasha, expressed her excitement as one of the first individuals to cross the reopened border. She highlighted the opportunities for cross-border business that have emerged with the reopening.
“I now have easy access to buy lotion at a nearby location in Nyagatare. It’s beneficial for all of us. Business in our area will flourish since most traders previously hesitated due to high transportation costs to Kagitumba or Buziba from Rwempasha.”
Ex-minister urges Nigerian shipowners to concentrate on tanker trade (ZAWYA)
Chairman of Integrated Oil and Gas Company, Captain Emmanuel Iheanacho, says it will be beneficial if Nigerian shipowners operating in the oil and gas sub-sector concentrate more on the tanker trade than operating liner services.
Speaking on shipping services and the better options, Iheanacho said “From my experience, one area we should have just mastered easily, arising from the activities involved is the tanker trade, because the tanker trade is so easy, you carry only one cargo, one Bill of Lading.
if you were operating a liner service, which requires you to carry thousands of containers and in each container you have more thousands of small goods; you have the administrative requirement to sort all of those things out and also be at the port promptly to the owners of the cargo. “There is really a lot that we could have done to harvest and to develop our shipping potentials, which can still be done.”
AfCFTA: South Africa seeks seamless intra-Africa trade (Peoples Gazette)
South Africa’s Business Council of the BRICS has called on African governments to ensure the seamless movement of goods and services across the continent to improve trade and investments. “To improve trade and investments in Africa, enabling easier mobility between business communities is important,” stated the council chairman, Busi Mabuza. She made the call at a business roundtable and dialogue session organised by the South African consulate general in Lagos and Brand South Africa.
Ms Mabuza said peculiar visa regimes of each African country should be reviewed to encourage Africans to travel across the continent unimpeded. She stressed that Africans must realise that trade could improve only when there were interactions.
Ms Mabuza identified lack of finance as the major challenge the organisation had been confronted with. She noted that trade between South Africa and other member nations of the BRICS had almost doubled over the past five years. Ms Mabuza assured South Africa would explore trade opportunities in agriculture, tourism and aviation.
“The components of trade are not in our favour yet because we still export raw materials, but we want to improve on value addition so as to close the trade gap in the next 10 years,” she said.
South Africa, Nigeria eye mutual benefits from AfCFTA, strengthened trade relations (SABC News)
The African Continental Free Trade Area (AfCFTA) presents significant opportunities for South Africa and Nigeria, according to Evelyn Ngige, the Nigerian Permanent Secretary for Industry, Trade, and Investment. Ngige’s remarks came during her visit to South Africa, where the West African nation seeks to enhance trade relations with its southern counterpart. The Nigerian High Commission hosted the meeting to foster partnership between the two continental giants.
With a focus on strengthening trade ties, South Africa and Nigeria, recognised as the two largest economies in sub-Saharan Africa, are placing their hopes on the AfCFTA to rejuvenate their economies. Ngige emphasised the numerous benefits of AfCFTA, including increased intra-Africa trade, skills transfer, cross-border expansion, socio-economic development, comprehensive border management approaches, and the boost to trade and tourism in both countries and the wider continent.
Lekki deep sea port promotes AFCFTA gains, but local communities seek environmental protection (Premium Times Nigeria)
The Lekki Deep Sea Port seeks to position Nigeria for the big gains of the African Continental Free Trade Area (AFCFTA), competitive transhipment, and status upgrade as the maritime hub of West Africa, but neighbouring local communities also want a share of this prosperity and protection against adverse sustainability and human rights issues.
The Lekki Port LFTZ Enterprise Limited was the Special Purpose Vehicle awarded the concession to develop the deep sea port in 2011, according to Dinesh Rathi, the MD of Lagos Free Trade Zone. It took five years to get all required registration permits and documentation before the commencement of the 27 months of construction and completion of phase 1 of the Lekki Deep Sea Port, located 65km east of the Lagos Free Trade Zone.
Prior to the operationalisation of the port, which recently acquired the status of a transhipment hub, the African continent lacked a regional trading hub aside from South Africa, which may be described as the trading hub for Southern Africa. The emergence of the deep seaport in Nigeria positions it on the path to acquiring the status of West Africa’s trading hub.
Before its operation, significant revenue had been lost due to bottlenecks in Nigeria’s maritime sector as neighbouring countries had become the preferred berthing and transhipment points. As a result, landlocked nations like Chad and the Republic of Niger, which previously used Nigeria’s ports as transit hubs for their shipments, switched to neighbouring Ghana, Togo, Benin Republic, Côte d’Ivoire, and Cameroon.
With an estimated return on investment of 230 times the cost of the project, the creation of about 170,000 jobs when in full operation, and revenue to federal and state agencies of $201 billion, the country will be more competitive under the AFCFTA, but neighbouring communities around the deep seaport do not want to be left out of these gains and protection against sustainability issues and human rights issues.
PM points path for TZ to exploit AfCFTA opportunities (Tanzania Daily News)
Prime Minister Kassim Majaliwa has issued several directives to improve the business environment and encourage traders to take advantage of the opportunities presented by the African Continental Free Trade Area (AfCFTA) to expand their businesses.
He said the government continues to address various challenges aimed at improving the environment of doing business in the country, by reviewing several laws, policies and regulations.
He added, “For those who have products that meet the standards and criteria are encouraged to start registering through the Ministry of Investment, Industry and Trade in order to benefit from this market. It is important to make a sincere effort to reach these markets”.
African Integration Day 2023 (African Union)
The African Union led by the Department of Economic Development, Tourism, Trade, Industry, Mining (ETTIM) will commemorate the African Integration Day 2023 under the theme ”Accelerating Job Creation, Digital and Financial Inclusion in the AfCFTA market”
A historic milestone for regional integration in Africa was recorded on 1 January 2021 with the start of trading under the African Continental Free Trade Area (AfCFTA). The remarkable speed of negotiations, signature, ratifications and entry into force of the AfCFTA Agreement took place between June 2015 and May 2019 and is unprecedented in the treaty making history of the African Union just behind the Constitutive Act of the Union. Despite the adoption and implementation of the AfCFTA, the results in attaining the objectives of the Abuja Treaty remain rather mixed with the RECs at different stages of implementation of the Treaty. In addition, more effort is needed to make the ordinary African Citizens understand and own the regional integration process.
The overall objective of the commemoration is to deliberate on how to use integration including the AfCFTA as a tool for the continent’s economic recovery due to the multiple crises and shocks due to the COVID-19 pandemic, the Russian-Ukraine crisis and its impact on the global economy as well as the challenges due to climate change inter alia. The African continent faces a more immediate threat, and this is due to the rising unemployment, especially for the 18 million youth that enter the job market every year who are unable to find jobs. It is therefore imperative for the AfCFTA implementation to specifically focus on the creation of jobs in order to drive shared prosperity across the continent.
There is a growing community of businesses, women and youth led that are keen to participate in the AfCFTA process. The Guided Trade Initiative has demonstrated that Africans are ready to trade under the AfCFTA rules and they need more support to be able to do so in large numbers. This is why enabling tools and mechanisms are critical to the acceleration of intra-African trade, which is why it is necessary to become concrete and provide specific tools that can be used to participate meaningfully in the AfCFTA.
The AUC, OECD and the AeTrade Group will also officially unveil products and services under the Smart Finance and Digital Banking Initiative endorsed by the Assembly of Heads of State and Government in February 2022. This commemoration will provide a platform that ensure broad participation of all actors at the national, regional and continental levels, including Member States, RECs, the African Diaspora, Development Partners, Academia, Private Sector, Civil Society, Women and Youth to put a spotlight on the AU Theme of the Year on accelerating the implementation of the AfCFTA.
Africa’s timber industry revival takes center stage at forest forum (Xinhua)
The urgency to revive the timber industry in Africa amid growing local demand and competition from imports was reinforced by policymakers, forestry experts and industry leaders attending a continental forum held Wednesday in Nairobi, the Kenyan capital. The status of the timber industry in Africa was one of the key themes discussed by more than 70 delegates from 26 African countries attending a week-long conference ending Friday.
Home to 16 percent of the world’s forests, translating into more than 636,000 million hectares, Africa has the potential to become a global leader in wood processing to help meet the growing demand for furniture, pulp, paper and construction materials, said the experts attending the forum organized by Nairobi-based African Forest Forum (AFF).
Suzana Augustino, a Tanzanian forestry and climate change expert, stressed that Africa’s timber industry can regain the vitality of yesteryears, subject to policy reforms and investments in new sawmilling technologies. Augustino said that strengthening institutional capacity, empowering artisanal saw millers and investing in value addition will boost the competitiveness of Africa’s timber in the international market.
SADC urgently needs to enter data agricultural revolution - says Parly speaker Mudenda (NewZimbabwe)
Southern African Development Committee (SADC) urgently needs to enter the data agricultural revolution, Parliament speaker Jacob Mudenda has said.
Addressing delegates at the 53rd SADC Parliamentary Forum Assembly in Tanzania, Mudenda said even though the region was boasting 60% of arable land, its agricultural sector had remained poor, lacking new modern mechanization techniques.
“Despite the continent boasting of 60% of arable land, its agricultural sector remains dwarfed. Why? Our agricultural sector lacks modernization and mechanization in Africa in general and in the SADC region in particular. “It is imperative, therefore, that the SADC region speedily embraces the smart agriculture ecosystem. The region should urgently enter the data agricultural revolution,” he said.
The forum assembly was running under the theme, Modernising Agriculture to address Food Insecurity and Youth Unemployment in the SADC Region: The Role of Parliaments. Mudenda told delegates that SADC needed this technological shift more than ever. “These smart agricultural technologies would ensure that the small holder farmers who comprise 60% of the farming population access them.
Africa aviation set for major transformation (The Chronicle)
Africa’s commercial aviation is set for major transformation after the African Development Bank (AfDB) held discussion workshops with aircraft manufacturers — Airbus and ATR — to explore ways of strengthening access to finance for African airlines. The Pan African bank is studying the feasibility of setting up an aircraft leasing platform. Operating leases account for more than 45 percent of operational fleets worldwide.
The Covid-19 pandemic had a negative blow on the continent’s air travel. Before its onset, African aviation represented a roughly three percent share of the global market, although the continent has 17 percent of the world’s population, said the bank. However, Africa’s economies are expected to rebound to growth from the pandemic.
AfDB said owing to a difficult operating environment that includes constrained access to credit, only a few African airlines are profitable.
International tax standards critical to combating illicit financial flows (SAnews)
Finance Minister Enoch Godongwana says tax administration tools are imperative to countering illicit financial flows and ensuring that governments can continue to collect revenue and serve society. He was addressing the 13th Africa Initiative Meeting held by Tax Transparency in Cape Town on Thursday.
The Minister highlighted that in Africa, illicit financial flows are costing governments between €48 billion and €77 billion – valuable resources needed for functioning governments.
The Minister reflected on the efficiency of international tax standards and how these have become an “effective tool” in curbing tax evasion and other illicit financial flows. “During the past eight years, the Africa Initiative has changed the tax transparency landscape in Africa, enabling the mobilisation of more than €310 million in domestic resources. However, continuous action is needed to ensure a long-lasting positive impact.
Can Africa pursue economic development without relying on fossil fuels? (Africanews)
While many African countries heavily depend on oil and gas exports, the continent experiences the harshest impacts of climate change despite contributing only 3% of global CO2 emissions.
The need for decarbonization is evident, with South Africa leading the way after securing $8 billion in loans for its energy transition at COP26. However, power cuts have posed challenges to the country’s industrialized economy.
According to NJ Ayuk JD, Director General of the African Chamber of Energies, an effective energy transition requires considering natural gas. African voices must be heard in climate conferences, and African leaders must take action to change the situation. The African Energy Chamber aims to play a pivotal role in fostering an African energy pact.
‘Solar is the oil of 21st century’ (The East African)
Solar is the “oil of the 21st century,” and the most powerful economies will be those that have the cheapest energy, says renowned African banker and entrepreneur Tidjane Thiam. “If we don’t participate in that (solar) revolution, America is going to have the cheapest and the cleanest energy in the world.
He was speaking at the 2023 shareholders AGM of the African infrastructure lender Africa50 in Lome, Togo, on July 3. He compared the energy revolution with the internet one, noting that production has become decentralised and hence more accessible and much cheaper.
Dr Ajay Mathur, director-general of International Solar Alliance (ISA)
noted that Africa has the best solar potential in the world, with a practical potential of 4.5 kilowatt-hour peak per day, making solar a viable alternative to meet the continent’s power needs. But they noted that investment in the sector is still negligible.
“Last year, even though globally $250 billion was invested in solar, only two percent of it came to Africa. Why? While the risk premium on Africa was relatively high, this is quite at variance with the reality: the default rates are less than two percent!”
Germany provides €10 million to NEPAD Infrastructure Project Preparation Facility (NEPAD-IPPF) to boost infrastructure development in Africa (Africa Newsroom)
The African Development Bank and KfW, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), on 5 July announced the replenishment of the NEPAD – Infrastructure Project Preparation Facility (NEPAD-IPPF) Special Fund, which aims to boost regional infrastructure in Africa. The German Government will provide €10 million to replenish the Special Fund.
Germany’s support will bolster NEPAD-IPPF’s efforts towards priority areas such as green, climate-smart infrastructure and a stronger focus on the second Priority Action Plan of the Programme for Infrastructure Development in Africa for the period 2021-2030 (PIDA-PAP 2). It will also support Africa’s transformation under the Africa Continental Free Trade Area by boosting intra- and extra-African trade.
“The partnership aims to support infrastructure development with a focus on areas such as climate change, gender, Agenda 2063, and a stronger focus on attaining the Sustainable Development Goals,” said KfW Director, Christoph Tiskens.
“As economies in Africa navigate new challenges in the face of overlapping global crises, the support of partners such as Germany will enable the African Development Bank to deliver on its important development mission,” AfDB Vice-President and Chief Financial Officer, Hassatou N’Sele noted. “With the replenishment of NEPAD-IPPF Special Fund, we are determined to further support our clients while helping them realize their economic potential through increased infrastructure investments, contributing to green growth, inclusion, and job creation,” she said.
African and global institutional investors sign on to new $500m infrastructure fund (AfDB)
Prominent African and global institutional investors have signed on to the new $500 million Africa50 Infrastructure Acceleration Fund - a move described as an unprecedented milestone for Africa. The fund is the first private vehicle infrastructure platform launched by Africa50.
The fund will catalyse further investment flows to the development of critical infrastructure across the African continent, including energy, transportation, telecommunications, and water, among other areas.
Speaking at the signing event, African Development Bank president, and chair of the Africa50 board, Dr Akinwumi Adesina said: “This is impressive and a first for Africa. It is remarkable and unprecedented to have 17 African institutions participating in such a transforming initiative to invest in an African infrastructure fund. With the Fund, we are positioning the Africa50 Group to play a lead role in helping to tap into the more than $98 trillion of global assets under management.”
UN 2023 Global Survey: The rise of digital trade facilitation (Trade Finance Global)
Persisting ramifications of the COVID-19 pandemic, escalating geopolitical uncertainties, and soaring inflation continue to plague international commerce. Yet, in the face of these worldwide disruptions, nations are making significant strides towards a streamlined, efficient trade environment through the simplification and digitalisation of international trade protocols.
The latest report by the United Nations, the Fifth Global Survey on Digital and Sustainable Trade Facilitation, provides insightful data from 161 countries. It indicates that the implementation rate of both general and digital trade facilitation measures has increased by over six percentage points from 2021 to 2023, with the global average now standing at a promising 68.7%.
WTO issues new edition of World Tariff Profiles (WTO)
The WTO issued today (6 July) the 2023 edition of “World Tariff Profiles”, an annual publication providing comprehensive information on tariffs imposed on imports by over 170 countries and customs territories. The report — jointly prepared with the International Trade Centre and the United Nations Conference on Trade and Development (UNCTAD) — also provides data on non-tariff measures, such as anti-dumping actions, countervailing duties and safeguard measures.
UN urges ‘massive’ clean energy investment in developing world (Kuwait Times)
The United Nations called Wednesday for massive investment in clean energy in developing countries, saying there was otherwise little hope of achieving any climate goals by 2030. Developing countries need renewable energy investments of about $1.7 trillion annually but attracted foreign direct investment in clean energy worth only $544 billion in 2022, the UN’s trade and development agency UNCTAD said. “We cannot fulfill the world’s energy needs and safeguard our planet and our future without massive private sector investment in renewables in developing countries,” said UN chief Antonio Guterres.
“We are at least a decade late in our efforts to combat global warming. Investment in renewable energy in developing countries is therefore essential and often the most economical way to bridge the energy gap. “But while the transition to renewable energy is a global priority, investments in energy infrastructure and efficiency still fall far short of what is needed.” International investment in renewable energy has nearly tripled since the Paris climate accord was struck in 2015, UNCTAD noted in its annual World Investment Report.
OECD-FAO Agricultural Outlook 2023-32 maps key output, consumption and trade trends (FAO)
Global agricultural and food production are projected to continue to increase over the next ten years, but at a slower pace of growth than the previous decade due to demographic trends, according to a report released today by the Food and Agriculture Organization of the United Nations (FAO) and the Organisation for Economic Co-operation and Development (OECD).
The OECD-FAO Agricultural Outlook 2023-2032 is the key global reference for medium-term prospects for agricultural commodity markets. While uncertainty has risen due to geopolitical tensions, adverse climate trends, animal and plant diseases and increased price volatility for key agricultural inputs, global production of crops, livestock products and fish are projected to grow at an average annual rate of 1.1 percent during the period, half the pace recorded in the decade ending in 2015.
Related News
tralac Daily News
Court reaffirms non-compliant imported goods not allowed to enter SA (SAnews)
The National Consumer Commission (NCC) has welcomed the decision by the Gauteng High Court, Pretoria, reiterating that non-compliant imported Clothing, Textile, Footwear, and Leather (CTFL) goods cannot enter the Republic.
The NCC said the proliferation of non-compliant clothing, textiles, footwear and leather imported goods destroys the South African textile industry. During the last financial year, the Commission issued more than 50 non-compliance notices to importers of CTFL goods. Non-compliant goods to a value of just above R18 million were either returned to the country of origin or destroyed.
The High Court also confirmed that the Commission is within its mandate to exercise its power bestowed to it by the Consumer Protection Act (CPA) by issuing a Compliance Notice where an investigation by the NCC revealed that the consignment does not comply with the provisions of the Act.
“I want to remind importers that it is their responsibility to ensure that their goods do comply with the CPA. Where the goods are non-compliant, we will not hesitate to issue non-compliances instructing Importers to either return non-compliant goods to the country of origin or destroy them,” Mabuza said.
Namibia’s economic outlook: Managing global change and taking advantage of new opportunities (Namibia Economist)
Like many other countries, Namibia is faced with a challenging economic environment created by global macro changes. The immediate financial outlook for Namibia is examined in this article. Additionally, the potential that green hydrogen as an emerging business provides, as well as the current changes in the oil industry.
The Southern African Customs Union (SACU) and increased domestic revenue have been the main drivers of Namibia’s public financing’s spectacular rebound. As a result of the increased revenue, the government can spend more money and no longer faces contractionary pressure. The budgetary outlook is becoming more stable as deficits gradually decline. The prospect for increased exports, mining output, and oil exploration are boosting inbound investment.
Tanzania secures $195m budget support from EU (The East African)
Tanzania has signed three grant agreements valued at 179.35 million euros ($195 million) with the European Union to support budget operations. President Samia Suluhu, who witnessed the signing ceremony in Dodoma on Tuesday, said the grants would accelerate the implementation of development programmes in the country.
“The money will be used to promote policy changes and industry growth in the blue economy, finance for growth, gender equity, green energy, and smart cities, as well as the renovation of rural roads in the southern highlands region,” she said.
The money, he said, is expected to contribute to the implementation of the Global Gateway, the new EU strategy to boost smart, clean, and secure links in the digital, energy, and transport sectors and to strengthen health, education, and research systems worldwide.
Kenya on the move again as economy reverses 7-straight falls (The East African)
Kenya’s economy has reversed seven straight back-to-back quarterly growth declines after pulling out of a prolonged electioneering period and a season of jobless growth defined by elevated inflation. The latest official numbers show that the economy in the three months to March posted the fastest growth in the last four quarters, defying the high cost of living driven by a prolonged drought.
The quarter to March was the first time the economy has put brakes on seven straight declines from a high of 10.3 percent in 2021 to 3.7 percent in December, pointing to glimmers of recovery from post-pandemic global supply disruptions.
The Kenya National Bureau of Statistics (KNBS) reported on Tuesday that the country’s gross domestic product expanded by 5.3 percent in the first quarter of the year, a faster pace than 3.7 percent in the previous period ending December 2022.
Egypt: 23.8% increase in trade deficit during April 2023 (ZAWYA)
Egypt’s trade deficit increased by 23.8% to $2.33bn during April 2023, compared to $1.89bn in the same month of previous year, according to the Central Agency for Public Mobilization and Statistics.
Egypt’s exports decreased by 44.9% to $3.03bn during April 2023, versus $5.50bn in the same month of previous year, due to a decreased value of some commodities such as natural gas by 75.6%, fruits by 58.8%, crude oil by 48.2%, and ready-made clothes by 34.1%. Imports value decreased by 27.4% as it reached 5.36 billion dollars during April 2023, versus 7.38 billion dollars for the same month of previous year, due to a decreased value of some commodities such as wheat by 1.4%, chemicals by 2.1%, plastics in their primary forms by 33.6%, and raw materials of iron and steel by 52.4%.
Deadline on Africa’s contested borders nears (The East African)
African countries have only four years from now to resolve their disputed borderlines. The deadline set for the demarcation or re-fixing of the territorial boundaries that have been disputed by nations is 2027.
“This is a complex and expensive matter,” said Ngoga on Sunday. “The AU is keen to ensure this is done, even though only a few countries have ratified a convention to its effect,” Frederic Gateretse Ngoga, a representative of the African Union (AU), said.
According to him, currently, there are over 100 border disputes among nations in Africa that can trigger serious conflicts if not resolved. “Unresolved border issues have the potential to escalate into violence and threaten peace and security,” he observed. Such crises can also undermine regional integration efforts by “creating insecurity in border communities and the movement of people, goods and services”.
Kenya calls for inclusion of women entrepreneurs within EAC (Kenya Broadcasting Corporation)
Kenya has called for the involvement of women entrepreneurs in trade and investment in the East African Community (EAC). According to the East African Community and Regional Development Cabinet Secretary Rebecca Miano, she considers focus on women a confirmation that the spirit of gender complementarity has slowly but surely demolished myths that hitherto held certain chores as a preserve of one gender and a no-go zone for the other. She was speaking during the inaugural East African Women’s Business and Investment Forum London.
While stressing the importance of empowering women, she noted that the 2030 Agenda for Sustainable Development prioritises women’s empowerment captured in Sustainable Development Goal Number 5 advocates for gender equality and empowerment among all women and girls.
Adding that, a 2021 treatise jointly authored by four gender experts and titled “Women’s empowerment in East Africa: Development of a cross-country comparable measure” and published in the well-respected monthly journal “World Development” contains useful insights for purposes of this forum’s discourse.
How EAC partner states plan to tax ‘10 major products’ (The New Times)
The East African Community (EAC) secretariat has issued the approved measures on import duty rates in the EAC Common External Tariff (EAC CET), which indicate different rates for given products, based on the priorities of each Partner State. They were published in the EAC Gazette on June 30, and are expected to be applicable for the current fiscal year which runs from July 1 to June 30, 2024.
According to a legal notice in the Gazette, the measures on customs duty rates on the items in question were approved by the EAC Council of Ministers in exercise of the powers conferred upon the Council under relevant provisions of the Protocol on the Establishment of the East African Community Customs Union.
Don tasks AU, ECOWAS on capacity building for Africans to embrace BRICS (Freedom Online)
The Nigerian Institute of International Affairs (NIIA) on Tuesday called on the African Union(AU) and other regional organizations to invest in capacity building for Africans ahead of their move to embrace BRICS. The News Agency of Nigeria reports that BRICS, originally named BRIC (Brazil, Russia, India, China), is an acronym for the regional economies of Brazil, Russia, India and China which in 2010 had included the letter S for South Africa.
Prof. Eghosa Osaghae, NIIA’s Director-General, made the call during a business roundtable and dialogue session organized by the South African Consulate General in Lagos and Brand South Africa. The theme for the program was “Promoting Regional and Continental Trade Through the AFCFTA and BRICS in Africa”.
Osaghae said that in view of the fact that Africans lacked the needed knowledge to leverage on the opportunities BRICS would have to offer, capacity building was highly needed.
“I challenge the AU, the Economic Community of West African States (ECOWAS) and other regional organizations to help Africans in the area of capacity building. “Nigeria is ripe to also partner with BRICS but before then, we must prepare and be well equipped with the right knowledge to harness the opportunities in the system,” he said.
Twenty five African countries facing debt risks, warns AfDB (Kenya Broadcasting Corporation)
African Development Bank (AfDB) Group President, Akinwumi Adesina has said that the rise in cost of debt servicing has led to 25 countries in Africa being at risk of either high –debt distress or in-debt distress. Adesina said African markets have had to bear the brunt from the strict monetary policies in the US and Europe.
The tough economic times has impacted interest rates and led to rising costs of debt serving. African Development Bank has warned that Africa external debt could rise from $1.1 trillion to $1.13 trillion. “As a result, the external debt service payments due for 16 African countries will rise from $21.2 billion (Ksh 3 trillion) in 2022 to $22.3c billion (Ksh 3 .1 trillion) in 2023,” said Akinwumi. Kenya ranks third among African countries in terms of government debt to gross domestic products (GDP).
The growth of continental loan obligations has been blamed on the adversities of COVID-19 pandemic and tightening their spending culture has caused these countries to downgrade. The rising costs of energy and food prices from the Russian-Ukraine war and the rising costs of adapting to climate change compounded these challenges.
Kganyago plays down common African currency (Engineering News)
South Africa’s central bank chief said adopting a region-wide common currency was a political project, and then spelled out exactly why it would probably never happen.
“What do you need to have an African currency? You need to have macroeconomic convergence,” South African Reserve Bank Governor Lesetja Kganyago said Tuesday during a wide-ranging interview with Metro FM radio.
That means getting inflation and debt levels among nations on the continent to be at similar levels, as well as consistent fiscal policies and banking rules. “Absent those, it’s impossible,” he said during an event hosted at the Soweto Theatre in southern Johannesburg.
Corruption increased in 36 African countries in 2022 - Afrobarometer (Citinewsroom)
Corruption increased drastically in 36 African countries between 2021/2022, according to a survey conducted by Afrobarometer. In these 36 countries, Afrobarometer in its report disclosed that corruption increased a lot by 46%, and increased somewhat by 12%, but stayed the same at about 20%.
“Almost six in 10 Africans (58%) say that corruption in their countries increased over the past year. The situation has worsened significantly in 12 of the 30 countries surveyed in both 2014/2015 and 2021/2022, most dramatically in Senegal (where perceptions of increasing corruption have risen by 39 percentage points), Burkina Faso (+29 points), Gabon (+24 points), Cameroon (+23 points), and Côte d’Ivoire (+22 points). On the other hand, there has been a drastic improvement in Benin, where the proportion who report that corruption increased dropped by -61 percentage points,” Afrobarometer said in its report.
Africa is key player in unilateral digital roadmap (ITWeb)
The Global Digital Compact represents a golden opportunity for Africa to shape the digital future. This was the word from Fayaz King, special advisor: office of the UN secretary-general’s envoy on technology, speaking via video link from New York, US. King addressed the UN Economic Commission for Africa’s (UNECA’s) regional review meeting on the continent’s contribution towards the Global Digital Compact.
Steered by the office of the UN secretary-general’s envoy on technology, the compact is a proposed roadmap for collective action by UN member states, which include African nations, to address the global challenges and opportunities arising from the digital revolution. It looks to establish global standardisation on the principles and guidelines for an open, free, secure and human-centred digital environment.
King said despite its challenges, Africa has had a number of successes within the digital realm, most notably mobile money. For example, the Sub-Saharan Africa region boasts 760 million accounts, which represent nearly half of the global users, he stated. As a result, the African continent is in a unique position to significantly contribute and benefit from the proposed compact, he commented. “Africa has already demonstrated innovation prowess and can lead from the front in this compact.
UN survey shows trade facilitation progress amid polycrisis (Dhaka Tribune)
Despite persisting effects of the Covid-19 pandemic, geopolitical turbulence, and high inflation that continue to challenge international trade, countries are persistently moving towards a seamless and efficient trading environment by simplifying and digitalizing formalities in international trading, a new United Nations survey reveals.
According to the fifth United Nations Global Survey on Digital and Sustainable Trade Facilitation covering 161 countries, progress has been observed in more efficient trade facilitation with the overall implementation rate of general and digital trade facilitation measures increasing by more than 6% points between 2021 and 2023, reads a press release issued on Wednesday.
The global average implementation rate currently stands at 68.7%. Crucial to the progress made globally were regional and subregional initiatives such as the Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific (CPTA), the expansion of the Asean Single Window Agreement, and the African Continental Free Trade Area (AfCFTA) Agreement.
These initiatives could further support countries in gradually moving to less paper and then to paperless and cross-border paperless trade by providing a dedicated, inclusive and capacity-building intergovernmental platform.
Conversely, the 2023 survey also highlighted the insufficient adoption of sustainable trade facilitation measures and inadequate support for vulnerable groups, including the agricultural sector, small to medium-sized enterprises (SMEs) and women traders.
As Black Sea grain expiry looms, Russia rejects bank compromise (Daily Sabah)
Russia on Tuesday restated a demand for its state agricultural bank to be reconnected to the global SWIFT payments system to avert the collapse of the Black Sea grain deal, and said it would not accept a reported compromise proposal.
With 13 days remaining until the expiry of the deal, which has allowed Ukraine to export grain from its Black Sea ports despite Russia’s invasion, Moscow said there had been no progress on any of its key demands, including the banking issue.
The Kremlin said on Wednesday that it has not made a final decision about whether to extend the initiative, brokered by Türkiye and the United Nations last July.
The Financial Times reported on Monday that the European Union was considering a proposal to allow Russia’s Rosselkhozbank to set up a subsidiary that could connect to SWIFT. But Russian Foreign Ministry spokesperson Maria Zakharova dismissed the idea as “deliberately unworkable,” saying it would take many months to set up such a unit and another three months to connect to SWIFT.
Russian oil product flows to Africa jump following Western sanctions (Accelerating Progress)
Sanction-hit Russia’s refined product exports to Africa have skyrocketed since the invasion of Ukraine, increasing 14-fold in just over a year, following a diplomatic onslaught on the continent by Russian officials. Prior to the war, Russia exported 33,000 b/d of refined products to Africa, much of it gasoline. By March 2023, that had soared to 420,000 b/d.
The embargo followed independent decisions from many Western countries to halt imports of Russian oil. These sanctions have forced Russia to redirect significant oil export volumes to alternative markets, including Africa. India, China, and Turkey are also becoming increasingly important export markets.
Experts say a new “scramble for Africa” has gathered pace since the invasion began early last year, with Russia, China, the US, Turkey, Gulf states, and former colonial powers Britain and France all vying for influence on the world’s fastest-growing continent.
In the first quarter of 2022, Tunisia imported just 2,700 b/d of Russian products, but that rose to 66,300 b/d in Q1 of this year, according to S&P Global Commodities at Sea data, while Nigeria—Africa’s biggest oil producer and most populous nation—saw imports rise almost five-fold year on year to 57,400 b/d in Q1 2023.
Morocco, Libya, and Egypt have also recorded huge rises in Russian imports. “[Lavrov’s] flurry of diplomatic activity makes it abundantly clear. These steps are about Russia seeking alternative routes for their commodity exports,” Kulakhmetov added. “Therefore, North African states are playing a significant role for Russia in mitigating implications of oil and oil product ban.”
Investment flows to Africa dropped to $45 billion in 2022 (UNCTAD)
UNCTAD’s World Investment Report 2023 published on 5 July shows that foreign direct investment (FDI) flows to Africa declined to $45 billion in 2022 from the record $80 billion set in 2021. They accounted for 3.5% of global FDI.
The number of greenfield project announcements rose by 39% to 766. Six of the top 15 greenfield investment megaprojects (those worth more than $10 billion) announced in 2022 were in Africa.
In Southern Africa, flows returned to prior levels after the anomalous peak in 2021 caused by a large corporate reconfiguration in South Africa. FDI in South Africa was $9 billion – well below the 2021 level but double the average of the last decade. Cross-border M&A sales in the country reached $4.8 billion from $280 million in 2021. In Zambia, after two years of negative values, FDI rose to $116 million.
Over the past five years, FDI inflows have risen in four of the regional economic groupings on the continent. FDI in the Common Market for Eastern and Southern Africa grew by 14% to $22 billion. Flows rose also in the Southern African Development Community (quadrupling, to $10 billion), the West African Economic and Monetary Union (doubling, to $5.2 billion) and the East African Community (up 9%, to $3.8 billion).
The United Nations Conference on Trade and Development (UNCTAD) today called for urgent support to developing countries to enable them to attract significantly more investment for their transition to clean energy. UNCTAD’s World Investment Report 2023 published on 5 July shows that much of the growth in international investment in renewable energy, which has nearly tripled since the adoption of the Paris Agreement in 2015, has been concentrated in developed countries.
Developing countries need renewable energy investments of about $1.7 trillion annually but attracted foreign direct investment in clean energy worth only $544 billion in 2022, according to the report.
Related News
tralac Daily News
TNPA publishes Port Development Framework Plans outlining R13bn of investments (Engineering News)
The Transnet National Ports Authority (TNPA) has published Port Development Framework Plans that stipulate how R13-billion will be invested in South Africa‘s commercial seaports over the next five years.
With these investments, the TNPA aims to create capacity at the ports, as well as ensure the long-term sustainability of the port system.
The framework plans followed a robust public participation process and will be used to guide port infrastructure development in the short and long term. The plans will be continuously reviewed to ensure they remain relevant and in line with international best practice.
New import rules put pressure on Kenyan car buyers (Pulselive Kenya)
In response to Kenya’s application to raise the duty under the common external tariff, the EAC Council of Ministers has given the green light, exacerbating the challenges faced by the automotive sector due to a depreciating currency.
This move, which marks an increase from the current 25 percent duty, will lead to double-digit price hikes for various imported vehicles, including those used for transportation, racing cars, station wagons, and vehicles designed for ten or more passengers.
Consequently, cars imported into Kenya will now come with a higher price tag compared to regional counterparts such as Uganda and Rwanda. The raised customs duty, once implemented, is expected to translate into approximately a 14 percent overall increase in the cost of importing vehicles.
Edible oil manufacturers fault move to reduce tariffs on imports (Nation)
Edible oil manufacturers have faulted a move to reduce tariff on finished oils coming from outside East Africa from 35 per cent to 25 per cent, saying it will create an unlevel playing field for businesses that have invested heavily in the sector.
Kenya Association of Manufacturers (KAM) edible oils sub-sector says the tariff should have been retained at 35 per cent, as opposed to the new rate set by the East African Community’s (EAC) Common External Tariff (CET), which is low by 10 percentage points.
“We thank the government for continuing the stay of application of the tariff on ready-made refined imported oils from outside EAC and Comesa at 25 per cent or USD500/MT whichever is higher in the EAC CET. The ideal would have been to retain this at 35 per cent as this is under the category of finished goods,” the sub-sector stated yesterday.
Lowering of the tariff comes barely weeks after the Ministry of Trade and Industrialization wrote to Treasury asking for the rate to be lowered to 10 per cent.
Govt finalises plan to regulate tea industry (Nile Post)
Government has developed a policy to regulate the tea industry and to address challenges affecting the tea sub sector in the country.
The ministries of agriculture and their trade counterparts developed the National Tea Policy to guide tea production, processing and to support diversification of products of tea being produced.
The policy that awaits to be submitted to the Cabinet focuses on improving access to quality agro-inputs including tea seedlings, fertilizers and herbicides, enhancing the use of modern technologies informed by research and extension services.
It also seeks to institute measures to improve harvesting, post-harvest handling and value addition, strengthening the infrastructure for the tea industry including establishing factories and other requisite machinery, improving access to affordable power supply, financial and insurance services, enhancing market access, advocacy, education, information and communication services among others.
Once approved, the tea policy will be developed as a commercial enterprise and an instrument to fight poverty through gainful agricultural employment where more investments shall be made at the lower stages of the value chain and majority of the tea stakeholders are engaged to ensure they are employed gainfully in ways that elevate household incomes and alleviate poverty.
Nigeria’s wheat production seen rising 42% (Businessday NG)
Nigeria will see a 42 percent rise in wheat production between July 2023 and 2024 owing to a competitive guaranteed price agreed between farmers and millers, a recent United States Department of Agriculture (USDA) grain report said.
The report stated that the Flour Millers Association of Nigeria (FMAN) signed a memorandum of understanding with the Wheat Farmers Association of Nigeria (WFAN) to purchase wheat at a competitive price.
Meanwhile, the Federal Ministry of Agriculture considers intercropping an effective system for increasing wheat production. As a result, farmers are increasingly adopting the rice-wheat intercrop system in northern Nigeria as traditional dry-season rice farmers switch to cultivating wheat and rice on the same plot of land.
Port deal exposes Dar inefficiencies as Dubai takes over ports (The East African)
Inefficiencies and lack of capacity to manage port facilities amid growing business has forced Kenya and Tanzania to seek the help of DP World, the Emirati logistics major which has a firm grip on the African market.
The Dubai-based company is seeking the greenlight to manage seven berths in the Dar es Salaam port and at the same time run the Mombasa Special Economic Zone, deals that would give it massive presence in Eastern Africa.
In Tanzania, the deal has brought to the fore the inefficiencies at the port of Dar – which the government acknowledged – with officials hoping that DP World could help it triple revenues from the facility to $11.2 billion over the next decade and double cargo traffic to more than 47.57 million tonnes by 2032.
Ethiopia to enact law normalizing informal cross-border trade along Djibouti, South Sudan borders (Addis Standard)
The Ethiopian government is taking strides to acknowledge and regulate the longstanding informal cross-border trade occurring along the Djibouti border. The Ministry of Trade and Regional Integration is currently introducing a law with the goal of formalizing the informal trade activities that have been existing along the border between these countries.
Kasahun Gofe, state minister of Trade and Regional Integration said on Tuesday that the ministry is currently engaging representatives of regional trade bureaus to collect inputs before the soon enaction of the law. According to him, the law will have irreplaceable role in making basic consumables accessible for the community living along border areas.
The development comes eight years after the signing of the Ethio-Djibouti border trade protocol in 2015. In January 2023, a delegation from Ethiopia, led by Kasahun Gofe, visited Djibouti to discuss the primary export items that would be allowed under the border trade agreement.
The China-Africa Trade Biennale bears fruitful results (Africanews)
The third China-Africa economic and trade expo on the theme of common development for a shared future concluded on Sunday in Changsha city, with 10.3 billion U.S. dollars’ worth of projects signed.
“The economic and trade cooperation between China and Africa has been expanding from traditional trade and engineering construction to digital, green and financial fields. In particular, the import of agricultural products from Africa shows great cooperation potential. All of these have strongly promoted the high-quality development of economic and trade cooperation between the two sides,” shared Wang Dong, deputy head, Department of Western Asian and African Affairs, Chinese Ministry of Commerce.
The four-day event has attracted over 100 000 visitors and resulted in 74 cooperative projects, a first in the expo’s five-year history, according to statistics from the organizing committee.
China is Africa’s largest trading partner and its fourth-biggest source of investment. Official data show that bilateral trade between China and Africa totaled 282 billion U.S. dollars in 2022.
“Free trade area could counteract Zim sanctions” (The Sunday Mail)
Unity, innovation and deepening intra-African trade has the potential to counteract the impact of Western sanctions on Zimbabwe, Ethiopia Civil Service Commission chairperson Dr Mekuria Haile has said.
“We no longer need to focus on the economic sanctions imposed on countries like Zimbabwe.
“Zimbabwe is doing great in food production, wheat and cattle. The import substitution on wheat is due to good interventions by the Government,” said Dr Haile.
“Once you are successful in increasing and improving agricultural productivity, and achieving food self-sufficiency, those issues from foreign influences can be managed.”
The continent, Dr Haile said, has immense potential to engage Western countries as equal partners. “We should focus on what benefits us, utilising our natural resources — water and good climate. We need to encourage young people to be in the public service, engaging in high-value production. “Once we reach that level of competitiveness, using our comparative advantages of land and other natural resources, they will negotiate with us,” he said.
Kagame urges sense of urgency in implementation of AfCFTA (The New Times)
President Paul Kagame has requested African leaders to move with a sense of urgency in the implementation of the African Continental Free Trade Area (AfCFTA) to boost economic value on the continent.
He was speaking during a televised conversation dubbed ‘Ask the President’ on the national broadcaster, on Tuesday, July 4, where he got to answer some of the national key concerns across different sectors.
With the operationalization to establish a unified market of 1.3 billion people and a GDP of around $3.4 trillion in 2021, the AfCFTA is poised to become the world’s largest free trade area with 55 member states. However, some of the important protocols of rules of origin have not yet taken shape while about 47 countries have ratified their instruments of AfCFTA agreement.
There was more good news for the successful implementation of the African Continental Free Trade Area (AfCFTA) agreement in December 2022, when a Memorandum of Understanding (MoU) was signed between the United States (US) Trade Representative and the AfCFTA Secretariat at the US-Africa Leaders’ Summit (Summit) in Washington DC. The MoU covers expanded engagement between the two regions and intends to “promote equitable, sustainable, and inclusive trade; boost competitiveness; and attract investment to the continent.”
It was also announced at the Summit that US intended to invest USD 55 billion in Africa over the next three years, and that USD 15 billion would be deployed in “two-way trade and investment commitments, deals, and partnerships that advance key priorities, including sustainable energy, health systems, agribusiness, digital connectivity, infrastructure, and finance.”
Trade between the two regions is steadily rising. At the Summit, the Biden Administration noted that since 2021, the US has assisted in closing more than 800 two-way trade and investment deals worth around USD 18 billion across 47 African countries. In addition, the value of private investment deals from the US into Africa since 2021 is valued at USD 8.6 billion. The US focus on increased engagement and continued, trade and investment in Africa has clearly already led to an increase in trade and investment opportunities in both regions.
Towards a UN Global Digital Compact: ECA to gather insights for an open, inclusive, and secure digital future (allAfrica.com)
As part of the efforts to ensure inclusive global digital development, a regional review meeting on Africa’s Contributions towards the Global Digital Compact will take place from 4-5 July 2023 in Cape Town, South Africa. Organized by the Economic Commission for Africa (ECA)’s Digital Centre of Excellence, the meeting aims to provide a platform to propose and review Africa’s contributions to the Global Digital Compact by bring together representatives from government institutions, policymakers, private sector entities, and civil society organizations.
The United Nations recognizes the immense potential of digital technologies in transforming societies worldwide while acknowledging the need for international cooperation to effectively harness their benefits and mitigate their risks.
The UN Secretary-General’s proposal to establish the Global Digital Compact outlines the principles of fostering an open, free, and secure digital environment. To lead the intergovernmental process on this Compact, Rwanda and Sweden have been appointed as Co-facilitators. As part of the consultative process, the UN seeks input from individuals, organizations, and entities worldwide, aiming to gather diverse perspectives and shape a comprehensive agreement.
This review meeting presents an opportunity for Africa to actively participate in shaping a more inclusive and equitable digital future. By collaborating with diverse stakeholders and incorporating African perspectives, the continent is expected to contribute significantly to the development of the UN Global Digital Compact.
Africa50 invests in infrastructure worth over $6.6 billion in six years (AfDB)
In just six years of operation, Africa50 has invested in critical infrastructure with a total value of more than $6.6 billion, African Development Bank Group President Dr. Akinwumi Adesina said on Monday during the Africa50 Infra Forum and General Shareholders Meeting in Togo’s capital Lomé.
Prominent African and global institutional investors attending the meeting signed subscription agreements and letters of intent to commit funds to the $500 million African Infrastructure Acceleration Fund—the first private vehicle infrastructure platform launched by Africa50.
President Gnassingbé said: “There is a huge need for infrastructure across the continent, and this is indeed a condition for development. Without roads, bridges, airports, hospitals, schools, power, communication networks, and water supply, there is indeed no possible development in Africa.”
Africa focuses on trade investment risks (The Nation Online)
African finance ministers, institutional investors, multilateral agencies, financiers, insurers and experts are expected to explore trade and investment risks in the continent and proffer ways to mitigate risks and stimulate the economy.
At an Investor Roundtable scheduled for Rwanda, public and private sectors experts will discuss Africa’s trade and investment risks under the theme: Re-thinking Risk. Enabling Finance. This is coming against the backdrop of the continent’s economic fallout stemming from the COVID-19 scourge, the negative consequences of Russia – Ukraine war, and climate change.
The roundtable is part of the annual general meeting of African Trade Insurance Agency (ATI) holding in Kigali, Rwanda, between Wednesday and Friday.
Chief Executive Officer, African Trade Insurance Agency (ATI), Manuel Moses, said several countries have emerged from the global headwinds with a huge debt load, putting them at a risk of debt distress.
Reforming the Global Debt Architecture (UNECA)
One in five people globally live in countries that are in debt distress or at risk of it. Two-thirds of low-income countries – most of them in Africa – fall into this category, while eight of the nine countries currently in debt distress are on the continent.
A confluence of factors has created this mounting debt crisis. With booming populations and massive infrastructure needs, coupled with the declining availability of official development assistance and concessional financing, African governments took advantage of historically low interest rates in the 2010s and borrowed heavily from international capital markets and China. Consequently, debt stocks more than doubled between 2010 and 2020.
In 2024, African countries will spend around $74 billion on debt service, up from $17 billion in 2010. Two states – Ghana and Zambia – have already defaulted, while Chad and Ethiopia are in restructuring talks.
Efforts to remedy this situation have been made more challenging by the increased complexity of the creditor landscape. The G20’s Debt Service Suspension Initiative (DSSI), which paused debt payments for eligible countries between May 2020 and December 2021, provided some temporary relief. The G20 Common Framework for Debt Treatments, a process through which low-income countries can request debt restructuring, was then established in November 2020 to complement the DSSI. While Chad, Zambia, and Ethiopia requested relief under the Common Framework in early 2021, Ethiopia still has not had its debt restructured. Chad concluded a tentative arrangement at the end of 2022, and Zambia reached a debt restructuring deal only last month. Given these delays, the Common Framework has not lived up to expectations. As one policymaker put it, “It is neither common nor a framework.”
DBSA celebrates 40 years of development impact, regional integration (Engineering News)
Development finance institution (DFI) the Development Bank of Southern Africa is celebrating 40 years of delivering progress through critical infrastructure that transforms livelihoods, while sustaining and growing emerging economies.
“Over the years, the bank has extended its presence in the infrastructure value chain, building its capability to not only prepare and finance projects, but to also deliver them. From 2002 to 2022, the DBSA, through its infrastructure build process, has built and refurbished 726 schools, completed 404 health facilities and 456 social houses.
Currently, the DBSA is working on an infrastructure project pipeline worth more than R155-billion across its various divisions. “We recognise the changing dynamics and emerging challenges facing Africa. We are committed to embracing innovation and technology to drive digital transformation, enhance project delivery, and improve the efficiency of our operations.
“Additionally, sustainability will remain at the core of our investments, ensuring that our projects contribute to a greener, more inclusive future,” DBSA CEO Boitumelo Mosako highlighted.
UN Regional Commissions’ webinar on measuring illicit financial flows, 27 June 2023 (UNECA)
More than 100 participants from across the globe met virtually today to share their experiences in measuring and Curbing Illicit Financial Flows (IFFs). Africa, being at the fore front of the efforts of curbing IFFs building from the legacy of the AU-ECA High Level Panel on IFFs, was well represented in the webinar
The United Nations has set aside funds to support the estimation of IFFs and to advance appropriate policies to be put in place by governments to deal with these flows under a new Development Account project (DA 15) “Measuring and Curbing Illicit Financial Flows”. Key deliverables of this project are the production of estimates of illicit financial flows and evidence- based policy responses to effectively curb them. This project will be implemented by regional commissions and the IFFs measurement custodian agencies, UNCTAD and UNODC.
The African Union Commission on International Law (AUCIL) has been tasked with preparing a draft AU statement on the application of international law in cyberspace, vide Communiqué PSC/PR/COMM.1120.1 (2022) adopted by the Peace and Security Council of the African Union (PSC) on 9 November 2022.
The African Union (AU) recognizes the ever-changing nature of the digital realm and its impact on peace, security, and development. As a result, the AU emphasizes the need for Africa to actively participate in the process of defining the rules of international law in order increase Africa’s voice, influence in shaping global norms and frameworks governing cyberspace and safeguard its interests.
The AU Member States have initiated a cooperative endeavor to formulate a Common African Position (CAP) on the topic at hand. In this regard, the CAP is still going through consultations among Member States and experts and will be at a later stage considered by the PSC and the AU Policy Organs. This noteworthy accomplishment will serve as a testament to Africa’s commitment to addressing the difficulties and possibilities presented by cyberspace, as well as its dedication to upholding international law in this quickly evolving domain.
53rd SADC PLENARY ASSEMBLY SESSION: Samia roots for food security (Tanzania Daily News)
President Samia Suluhu Hassan on Monday offered the Southern African Development Community (SADC) member states tips of becoming food secure.
Dr Samia, who speaking shortly before opening the 53rd Plenary Assembly Session of the SADC Parliamentary Forum further underscored the importance of African Continental Free Trade Area (AfCFTA), blue economy and conservation agriculture with a view of building resilience and making the regional economic bloc food secure.
“We have come up with a raft of measures, yet we fall short of implementing them, it is high time we get back to the drawing board and put them to good use for food production,” urged the president.
FAO Director-General calls for seizing opportunities to transform agrifood systems (FAO)
In his speech to the Conference, QU Dongyu highlighted that global agrifood systems are continuously facing shocks from different dimensions, and emphasized that FAO and its Members should not only focus on the challenges, but also “find opportunities and take action to move forward.”
Transformative actions and robust solutions are needed “so we can move forward into a world of better production, better nutrition, a better environment, and a better life, leaving no one behind,” the Director-General said, citing the Four Betters that he has embedded in various reforms, initiatives and programmes implemented since first taking FAO’s helm in 2019.
Report shows many G20 export restrictions remain in place, including on food and fertilizers (WTO)
“The trade disruptions caused by the shocks of the past three years have pushed economic security to the forefront of policy discussions. Yet what we have seen over this period is that open global trade, anchored in the multilateral trading system, is a powerful force for economic security, enabling WTO members to better produce and access food, medical supplies, and other essentials,” said WTO Director-General Dr Ngozi Okonjo-Iweala.
“It is welcome that G20 economies have been taking more steps to facilitate imports, underscoring how trade is a tool to push back against inflationary pressures. I call on them to show leadership by continuing to reduce the number and trade coverage of export restrictions, particularly on food, feed and fertilizers, to help dampen the price volatility that makes life harder for people around the world.”
New report looks into boosting developing countries’ participation in services trade (WTO)
In her opening remarks, DG Okonjo-Iweala said: “The future of trade is services, digital and green — and it must be inclusive. This new publication translates that conviction into a call for action. It documents how services trade has become a key ingredient in our members’ growth and development strategies … including by helping countries diversify and expand their export baskets, making them more resilient to external shocks.”
While heavily affected by the COVID-19 pandemic, services trade remains the most dynamic component of world trade. Digitally delivered services have grown at the fastest pace, well ahead of the growth of trade in goods. Services also generate more than two-thirds of GDP globally and represent 50 per cent of the world’s workforce in 2021. In value added terms, services account for 50 per cent of world trade.
The publication — entitled “Trade in Services for Development” — looks at how developing economies can fully share in the benefits that services trade brings to their economies and step up their development prospects.
World Economic Situation and Prospects: June 2023 Briefing, No. 172 (UN)
While economic prospects remain subdued, the global growth slowdown in 2023 will likely be less severe than previously anticipated, mainly due to improved household spending in the United States and the European Union, the recovery in China, and no reversals to the earlier forecast for India. Global growth is now projected to slow from 3.1 per cent in 2022 to 2.3 per cent in 2023 (up from 1.9 per cent forecast in January)
The slightly improved global growth outlook for 2023 primarily reflects upward revisions in the major developed countries and China
Global trade is expected to remain under pressure in the forecast period. The baseline scenario projects that the volume of global trade in goods and services will grow by 2.3 per cent in 2023, slightly higher than the previous forecast of near zero growth. This upward revision reflects improved GDP growth projections for the world’s largest economies. However, the lingering effects of COVID-19, rising geopolitical tensions, and monetary tightening will continue to hold back global trade, although supply chain constraints and high shipping costs have eased. Trade in services experienced faster growth than trade in goods, supported by further recovery in travel and tourism sectors. International tourism is set to consolidate its recovery in 2023, backed by pent-up demand, particularly from Asia and the Pacific as destinations and markets open up. The World Tourism Organization (UNWTO) estimates that international tourism arrivals could reach 80 to 95 per cent of pre-pandemic levels in 2023.
Leaders Call for Innovation, Entrepreneurship and Global Cooperation to Revitalize Growth (World Economic Forum)
More than 1,500 leaders from around the world came together at this important juncture for the global economy to signal their shared interests in advancing dialogue, innovation and collaboration to revitalize growth.
The world faces low growth, high costs of living, increasing geopolitical fragmentation, widening inequality and the growing effects of the climate and nature crises, as well as the continuing repercussions of the pandemic on industry, society and trust. These converging crises have created heightened levels of uncertainty and raised questions about how to build an economy that works for all. Leaders called for a new approach to “re-globalization” and urgency in reviving cooperation for shared challenges.
“This is the big opportunity to look at those areas, those regions, those countries that were left out of the first wave of globalization,” said Ngozi Okonjo-Iweala, Director-General, World Trade Organization. “Let us look at those areas that are friendly to investment and see if we cannot decentralize and diversify supply chains so that we bring these areas into world trade … to spur global growth.”
Emerging technologies, entrepreneurship and innovation offer hope to overcome threats, drive economic growth and raise living standards.
6 ways to boost consumer trust in online platforms (UNCTAD)
UNCTAD estimated in April 2022 that 60% of internet users shopped online following the start of COVID-19, compared to 53% in 2019. Top consumer-focused e-commerce platforms increased their sales value by 63% from 2019 to 2021. But consumer trust in the digital market remains fragile. A joint survey by UNCTAD and its partners found prevalent user distrust of the internet. Digital platforms have increasingly contributed to the distrust, pushing some consumers to reduce online purchases, financial transactions and social media use.
”Online platforms have become central to online consumption. However, consumers are concerned about false or incomplete information and misleading advertising, unsafe online products, data protection and inadequate dispute resolution,” said Teresa Moreira, head of competition and consumer policies at UNCTAD.
Related News
tralac Daily News
Decarbonisation gives rise to new opportunities (SAnews)
President Cyril Ramaphosa says it is critical that South Africa remains on par with other countries that have taken steps to incentivise manufacturers to invest in the production of electric vehicles in the country. This after global auto manufacturer BMW announced that it will be investing some R4.2 billion to equip its Rosslyn Plant in Tshwane to build the next generation BMW X3 hybrid plug in vehicle. This will be the first locally produced electric vehicle to be produced on South African soil.
President Ramaphosa emphasised that government, civil society, business and labour must work together to ramp up production of these vehicles to secure the future of the auto manufacturing in the country in the face of decarbonisation. “Among other things, this means that auto manufacturers need to be supported to expand their investment in the production of new energy vehicles in South Africa. We currently have a range of measures to support automotive manufacturers, such as the Special Economic Zone incentives, the Automotive Investment Scheme and others.
“We will soon be finalising a strategy to support the transition to electric vehicle manufacturing that is affordable and effective. It is key that South Africa keeps up with other countries, including on the continent, that are incentivising the manufacture and uptake of electric vehicles as the world moves towards decarbonisation,” the President said on Monday in his weekly newsletter.
Africa gains ground in South Africa’s apparel imports, APAC share dips (Fibre2Fashion)
For the first time in the last five years, the Asia-Pacific (APAC) region’s share of South Africa’s apparel imports has fallen below 70 per cent. Remarkably, Africa’s share crossed the 25 per cent threshold in the trade during the first four months of this year.
Despite the fact that the Africa region is emerging as a global textile hub, South Africa still relies heavily on the Asia-Pacific region, specifically China, for its imports. Between January and April 2023, South Africa imported apparel worth $595.730 million. Of the total inbound shipment, the Asia-Pacific region accounted for 68.67 per cent, or $409.074 million. This is the first time in five years that the Asia-Pacific region’s share has dipped below 70 per cent. Meanwhile, the Africa region’s share rose to 25.89 per cent, breaching the quarter mark for the first time, with imports valued at $154.238 million
African countries’ efforts to tap into South Africa’s apparel imports have progressed slowly. The continent managed to increase its share by less than four percentage points over the last five years. In the period of January-April 2019, South Africa’s apparel imports were valued at $616.405 million, with the Asia-Pacific region accounting for 73.95 per cent and Africa for 21.70 per cent.
Over the course of 2022, South Africa imported apparel worth $1,838.027 million. The Asia-Pacific region’s supply was valued at $1,229.300 million (66.88 per cent) and Africa’s at $517.242 million (28.14 per cent) of the total trade. Consequently, Africa’s share has already surpassed a quarter in the full year trade.
Tanzanian farmers bear the brunt of maize export restrictions as prices drop (The East African)
Tanzania’s restrictions on cereal exports to Kenya and Uganda have seen prices of maize dip in the country, prompting farmers to petition their Members of Parliament to press the government to liberalise the trade. Low prices have been recorded in most growing areas in the southern highlands.
Tanzania is the major exporter of maize and rice to Kenya and other East and countries, including eastern DR Congo, Burundi and South Sudan.
According to the new guidelines, exporters are required to open and register a local office in Dar es Salaam, which will deal with their exports, and obtaining export licences, which farmers say has introduced barriers to trade and impacted prices.
“The government needs to allow price competition in the market, as farmers are getting little from their efforts despite incurring huge expenses in production,” Deus Sangu, MP for Kwela in Rukwa region, said.
Togo: Parliament Allows Government to Ratify Cooperation Agreement on ECO currency (Togo First)
The Togolese Assembly allowed the government to ratify the cooperation agreement between the West African Monetary Union (UMOA) member states, countries that share the CFA franc, and France. The Assembly unanimously approved the move last Thursday, June 29, during its sixth ordinary plenary session of the year. Sani Yaya, Togo’s Minister of Economy and Finance, was present.
The new monetary cooperation agreement was signed on December 21, 2019, in Abidjan, Côte d’Ivoire. It is a “significant revision” of the agreement in effect since December 4, 1973, according to the Assembly.
The updated version, indeed, prepares the Union’s states for the introduction of the ECO and ”promotes Togo’s growth and attractiveness.” By ratifying the document, Togo tells other WAMU States that it has completed the internal procedure necessary for the agreement to come into effect.
Both for Togo, and the region concerned, the recent announcement is one of the latest developments in a process that started in 2019, following many debates about the future of the CFA franc, which some people view as a colonial relic that should be replaced.
Ethiopia’s ambassador upbeat about ties with Uganda, urges further trade cooperation (Nile Post)
Ethiopia’s Ambassador to Uganda, Etsegenet Bezabih Yimenu has hailed the ‘ever-growing’ bilateral ties between the two countries.
Yimenu says the trade relations between Uganda and Ethiopia are improving but points out that there is still a “job to be done” for the two countries to reach their trade volume potential.
Yimenu highlighted that whereas Uganda and Ethiopia have geographical location and economic zone to their advantage, the two countries have not done enough to promote trade between them,
something she says her Mission is keenly interested in addressing.
“We haven’t done much to promote trade between our two countries. In the next years, we need to first of all promote business between us. It can be through connecting institutions,” Yimenu said.
China pledges to strengthen trade ties with EAC (Tanzania Daily News)
CHINA has pledged to strengthen cooperation with the East African Community (EAC) in capacity building, trade, infrastructure development and other fields. The Chinese Ambassador to Tanzania and the EAC, Chen Mingjian, said at the EAC Headquarters here last week that China as the world’s largest developing country was highly optimistic about promoting economic growth not just in the EAC but on the entire African continent.
“China highly appreciates the significant contribution made by EAC in maintaining regional peace and stability, improving regional infrastructure, jointly fighting against the Covid-19, promoting regional economic integration and economic recovery of countries in the region,” said Ambassador Mingjian when she handed over eight vehicles – three buses and five double cabin pick-ups – to the EAC.
Breaking down borders: How single currency policies can empower African family businesses (Billionaires.Africa)
Kenyan President William Ruto, in early June 2023, called for the introduction of a single African currency to ease trade on the continent during the 22nd Common Market for Eastern and Southern Africa (COMESA) Heads of State and Government Summit in Lusaka, Zambia. Ruto emphasized that regional integration would be enhanced if citizens did not have to worry about which currency to use for trade. Malawi’s President Lazarus Chakwera also stressed the urgency of achieving regional integration and highlighted the enormous potential for intra-COMESA trade.
Meanwhile, COMESA Chairman Abdel Fattah al-Sisi urged member states to collaborate in building infrastructure that would facilitate the movement of goods and people in the region, promoting integration. These developments are crucial for African family businesses, which stand to benefit significantly from single currency policies that break down borders and enable cross-border trade.
A single currency policy focused primarily on trade can help family businesses doing business in Africa in a number of ways, even if it is restricted to trade.
A single currency policy can help promote greater regional integration, which can lead to increased collaboration and innovation among family businesses in Africa. This can help create new opportunities for growth and expansion and help family businesses to remain competitive in an increasingly globalized economy.
Energy sector seeks financing solutions tailored to Africa’s needs (The East African)
Players in Africa’s energy sector are asking private investors and development finance institutions to tailor their financing solutions to the continent’s needs to help in the provision of affordable electricity to low-income households. Speaking at the 25th edition of the Africa Energy Forum, Uganda’s Minister for Energy and Mineral Development Ruth Nankabirwa pushed for loans with a repayment holiday of up to 30 years.
“With the pressure to repay the loans within a short period of time reduced, energy producers will be able to supply power to the end user at an affordable rate, ensuring more Africans are connected to the power grid,” she said. “When the cost of capital or the pressure to pay back is high, then the power tariffs will also be high.
She said that though Africa is home to abundant natural resources, funding barriers have for a long time affected the production and transmission of electricity in the continent, with more than 600 million Africans not having access to clean energy.
Compared with other parts of the continent such as Central Africa, the situation is not as dire in East and Southern Africa. However, challenges of reliability and regular power shortages continue to persist, with electricity prices remaining high.
EAC legislators want regional air travel localised to cut costs (The Citizen)
Questions abound as to whether the East African Community (EAC) countries will unanimously agree to domesticate their air travel. An advice by the regional MPs to convert EAC air transport charges from international to domestic category is not likely to get an easy nod from governments. The lawmakers believe the mechanism would significantly lower passenger airfares, lower tariffs on aircraft and cargo movements.
“In the spirit of Common Market, the air traffic movements within the EAC region should be converted from international to domestic category,” EALA members maintain in their oversight report on the aviation industry within EA. Members of the East African Legislative Assembly (Eala) maintained that the high cost of air travel was still a drawback in the EAC. These include taxes paid by passengers on international departure in airports within the region such as passenger service charges and security and safety fees.
Ethiopia Applies To Join BRICS (Silk Road Briefing)
Ethiopia has made an official application to join the BRICS grouping and hopes for a positive decision on its application to join the BRICS member states, Ethiopian Foreign Ministry Spokesman Meles Alem has stated, saying “We expect BRICS will give us a positive response to the request we have made.”
Ethiopia has one of the fastest-growing economies in the world and is Africa’s second most populous country.
Other recent requests to join BRICS has been filed by Algeria, Argentina, Bangladesh, Indonesia, Iran, Saudi Arabia, Turkiye and the UAE, while Egypt has recently joined. The BRICS already unites Brazil, Russia, India, China, and South Africa.
EU reaffirms support for G20 seat for African counterpart (News24)
Most major world powers, in principle, has agreed to support Africa’s bid to join the G20, a forum comprising 19 countries and the European Union (EU).The latest to show support was the EU on Friday.
A statement issued at one of the EU Council body of advisors meetings, underway until 16 July, reads “in line with commitments on multilateralism made at the EU-AU Summit … the European Council supports the African Union’s [AU] reinforced presence in international forums, notably in the G20”.
The US also supported the move to include the AU in the G20 during the US-Africa Leaders Summit in December last year. “Africa belongs to the table in every room - in every room - where global challenges are being discussed and in every institution where discussions are taking place,” US President Joe Biden said.”It’s been a long time in coming, but it’s going to come.”
Global shipping poised to get new emissions-fighting strategy (UN News)
“Humanity is in dangerous waters on climate,” UN Secretary-General António Guterres said in a video message at the start of MPEC’s latest session. “Science tells us it is still possible to limit global temperature rise to 1.5 °C, but it requires an immense and immediate global effort, and shipping, which accounts for almost three per cent of global emissions, will be vital.”
Gathering from 3 to 7 July to review ongoing efforts, the Committee is expected to adopt a greenhouse gas emissions strategy in response to climate change and threats to biodiversity, following meetings with IMO.
The revised strategy is expected to set out the way forward for possible technical and economic measures to be further developed by IMO.
Scaling Up Private Finance for Clean Energy in Emerging and Developing Economies (IFC)
Annual clean energy investments in emerging and developing economies will need to more than triple from $770 billion in 2022 to as much as $2.8 trillion by the early 2030s to meet rising energy needs and align with the climate goals set out in the Paris Agreement.
According to the report prepared by the International Energy Agency (IEA) and the International Finance Corporation (IFC), public investments alone would be insufficient to deliver universal access to energy and tackle climate change and can be used most effectively for blended finance. In turn, two-thirds of the finance for clean energy projects in emerging and developing economies (outside China) will need to come from the private sector, rising from today’s $135 billion to as much as $1.1 trillion a year within the next decade.
Lifting barriers will help emerging and developing economies benefit more fully from the opportunities of the new global energy economy and expand opportunities for private investors.
Related News
tralac Daily News
Summit to share practical advice to start and grow road freight SMEs (Engineering News)
Industry body the Road Freight Association and industry collaboration platform the Transport Forum of South Africa have announced that the first small and medium-sized enterprise (SME) Road Freight Summit will be held on October 24 and 25.
The summit will provide practical advice and see industry experts, regulators and academics share best practices with road freight entrepreneurs and SMEs to assist in building and growing their businesses. The summit's theme is resilience and sustainability, business consultancy RSH founder and MD, and summit convenor Florence Musundwa said in a June 30 webinar.
Logistics and transport consultancy Gecko Group economist Sheina Gokool reminded attendees of the central role SMEs play in providing employment, highlighting that SMEs employ more than 80% of the population of sub-Saharan Africa and that they will be central to growth and creating more jobs.
She also highlighted that digitalisation is helping SMEs to scale-up much faster and leading to more startups. Technology-driven advancements and plug-and-play design are at the forefront of the agenda, she said.
EAC still tight-lipped on Kenya’s trade deal with European Union (The Citizen)
The East African Community (EAC) has maintained silence on a recent trade deal by Kenya and the European Union. Officials of the Secretariat could not comment on the agreement inked this week in Nairobi and witnessed by President William Ruto. The deal means Kenya has bypassed the fellow EAC member states in implementing the stalled Economic Partnership Agreement (EPA) between the two sides.
An agreement on the same reached by the EAC and the EU in 2014 after years of negotiations was subject to approval by all countries. It later stalled as other EAC member states declined to endorse it even as Kenya – then the only middle income country – signed and ratified it.
During the inking of the agreement on Monday, Kenya said that it was not bypassing its fellow member states in the bloc this time around.
A Tanzanian scholar based in the US, Prof Richard Mshomba, said the “go-it-alone” measure taken by Kenya was enough sign of the existing cracks in the EAC. “It has revealed, very clearly, that the EAC is not a genuine customs union,” he said, noting that Kenya has also reached a bilateral EPA agreement with the UK. “These bilateral arrangements would not be possible in a real customs union,” said the economics don teaching at La Salle University in the US.
A wealth of opportunities unveiled in Tanzania’s mining sector (African Mining Market)
About a month ago, the Tanzania government signed contracts worth approximately $1 billion (USD$667 million) with three Australian companies to mine graphite and rare earths. The deal, which was signed with Evolution Energy Minerals, Ecograf and Peak Rare Earths, constitute a part of Tanzania’s endeavours to progress negotiations on mining and energy projects that have experienced significant delays.
On her visit to Tanzania, Vice President Kamala Harris, announced plans to enhance trade and investment with Tanzania, with the goal of strengthening connections with a continent where China and Russia exert growing influence.
The strengthening of ties with Australia, as well as efforts to enhance trade and investment with the United States, showcases Tanzania’s commitment to attracting global investors and expanding economic opportunities.
Supported by abundant resources, adherence to international mining standards, and participation in regional trade agreements, Tanzania is well-positioned to achieve its aspirations and foster sustainable growth in the mining sector.
Nigeria’s Intra-African Trade Drops by 12% to N842.6bn in Q1 (Economic Confidential)
Nigeria’s intra-African trade has continued to underperform expectations despite the commencement of the African Continental Free Trade Area (AfCFTA) as the trade value fell Year-on-Year (YoY) to N842.6 billion in the first quarter of 2023 (Q1’23) 11.95 percent down from N956.93 billion in Q1’22.
However, more than three years after the AfCFTA kick-off, Nigeria’s trade value with other African countries in relation to its total foreign trade remain low.
The National Bureau of Statistics (NBS) report on the Foreign Trade in Goods Statistics for Q1’23, showed that at N842.6 billion, Nigeria intra-African trade represented just 6.99 percent of its total foreign trade (N12.047 trillion) in Q1’23. This is against the 7.4 percent contribution to its total foreign trade (N13.001trillion) in Q1’22.
On a Quarter-on-Quarter basis, Nigeria’s trade value with other African countries also declined by 24.87 percent to N842.6 billion in Q1’23 from N1.122 trillion in Q4’22.
Ethiopia applies to join BRICS bloc of emerging economies (The East African)
Ethiopia has made an official request to join the BRICS bloc of emerging economies, the Ministry of Foreign Affairs said.
“We have applied for membership and we expect BRICS to give us a positive response to the request we have made,” Foreign ministry’s spokesperson Meles Alem said on Thursday. He added that Ethiopia would continue to work with international institutions that can protect its interests.
“As a country that has been a founding member of global institutions like the AU and the UN, and as we seek to guarantee our national interests, it is important to join blocs like BRICS,” he said. Ethiopia, with the second highest population in Africa, is one of the continent’s fastest-growing economies, according to the International Monetary Fund.
Ramaphosa calls on customs union to improve integration, trade ties (IOL)
President Cyril Ramaphosa has called for the five member states of Southern Africa Customs Union (Sacu) to discuss the diversification of their economies to increase intra-Africa trade and deepen integration.
Speaking at a Sacu summit in Swaziland yesterday, Ramaphosa said the states were positioned to use their collective revenues to support industrial capacity and infrastructure development within the union.
“We cannot be content that Africa’s share in global trade is a mere 3%. This customs union should contribute to substantially increasing the African trade in goods and services.
“We will achieve this if we have clearly articulated programmes, sufficient resources, a robust governance framework and a commitment to executing the strategic plan,” he said.
pdf Communiqué of the 8th Summit of the SACU Heads of State or Government - 29 June 2023 (165 KB)
TIACA Regional Event Africa highlights African air cargo market potential, challenges (Africa Aviation News)
The International Air Cargo Association (TIACA) recently concluded its third regional event, the TIACA Event Africa which was held on June 19-21st with delegates declaring the event was successful in its aim to bring the local air cargo community and international delegates together to discuss the intricacies of doing business to/from and within Africa. The event was held in Nairobi and was hosted by Kenya Airports Authority.
TIACAs first regional event in Africa, held in Nairobi, brought together 200 delegates from across the industry to discuss issues that affect the African air cargo market and gave insight into how to do business within Africa.
“We were pleased to have such great support from the Kenyan government, African Airlines Association (AFRAA), our host Kenyan Airports Authority and our many sponsors, as well as the membership, the industry, and its leaders. The event’s success is vital to uniting the air cargo industry by bringing the international community together to discuss, debate, and network in regions throughout the world,” Steven Polmans, Chair, TIACA said.
African banking groups embrace PAPSS (IT-Online)
PAPSS, the Pan-African Payment and Settlement System, has announced the signing of Memorandums of Understanding (MOUs) with five African multinational commercial banking groups: Access Bank Group, Ecobank Group, KCB Group, Standard Bank Group, and UBA Group.
These significant partnerships aim to revolutionise the settlement of cross-border transactions across Africa, leveraging on the vast network of subsidiaries and representative offices across major economic centres across Africa.
The signature of these MOUs signifies a big step forward in the pursuit of seamless cross-border trade payments throughout the almost 40 countries covered by the banks. The broad collaboration between PAPSS and African commercial banks will pave the way for enhanced efficiency, transparency, and reliability in intra-African settlement.
African companies told to expand intra-regional trade in manufactured goods (Ghana Business News)
Dr Nkosazana Dlamini-Zuma, a former Commissioner of the African Union Commission, has charged businesses in Africa to grow intra-continental trade in finished goods.
“We need to trade in our own goods… so that in 50 years [when Agenda 2063 is due], we will be able to celebrate free trade and say, I can drive from Cape Town to Cairo and from Djibouti to Senegal.”
Dr Dlamini-Zuma was speaking at a ceremony held by the Secretariat of the (AfCFTA) in Accra in her honour to championing the AU Agenda 2063 and gender equality.
“Trade is not about raw materials; our colonisers did that and they continue to want to buy raw materials from us. That’s ill, and should stop. It’s something we must work at and fast,” she said. “Ninety per cent of our goods are transported across the Mediterranean. Who is in control of these processes?” she quizzed, adding that “this is something we must look at.”
“When we export raw materials, by the time it’s turned into a finished good, it’s probably 10 times or more expensive than the raw materials, and sometimes when they come back, most of us can’t afford them,” Dlamini-Zuma said.
She, therefore, urged businesses to shore up efforts to change such a situation, while encouraging governments on the continent to create the enabling environment for the success of AfCFTA.
Transforming Africa’s Food Systems: the challenges and opportunities (Africa Renewal)
The role of special envoys of the AU is primarily to tackle a critical issue for which the AU needs support. This is the first time the AU is designating a Special Envoy specifically dedicated to food systems.
We could enter a post-Ukraine war era that will be characterised by a crisis in food systems. Leaders must not only establish the food systems but should also ensure their effectiveness in achieving desired outcomes The market has witnessed an unfavourable evolution, and African countries are suffering the consequences of that war. We have observed shortages of vital resources such as fertilisers, seeds, wheat, etc. The crisis and our response to it have revealed a lack of co-ordinated efforts.
The first reason for appointing a Special Envoy is to ensure preparedness for such a crisis, even as we anticipate more crises in the future. The second reason relates to the many initiatives addressing food systems issues in Africa. We have some complexity in terms of initiatives, and this complexity necessitates better management and coherence. Without proper co-ordination, Member States and their stakeholders may struggle to comprehend the direction we are heading in. The third reason, closely linked to the previous two, pertains to resource mobilisation.
US DFC to lead delegation to US-Africa Business Summit (Engineering News)
US International Development Finance Corporation (DFC) CEO Scott Nathan will lead a high-level US delegation to the US-Africa Business Summit, to be held in Gaborone, Botswana, from July 11 to 14.
The event is hosted by the Corporate Council on Africa and the government of Botswana and is indicated to build on the momentum of the successful 2022 US-Africa Leaders Summit.
To mark the six-month milestone after the conclusion of the summit held in December 2022, the delegation will draw attention to how the US is delivering on high-profile government and private sector commitments, including the Digital Transformation with Africa (DTA), a signature initiative of the Biden-Harris administration.
Japan underscores Africa trade ambitions with stake in ATI (Global Trade Review)
Nippon Export and Investment Insurance (Nexi), the Japanese export credit agency (ECA), has made a US$14.8mn equity investment into the African Trade Insurance Agency (ATI), as the Asian country aims to strengthen its presence in the continent.
ATI is a pan-African institution that provides political risk insurance to companies, investors and lenders interested in doing business in the region. Among its shareholders are 21 member countries, and institutional backers including global insurer Chubb, India’s Export Credit Guarantee Corporation and UK Export Finance. With the investment, Nexi becomes the multilateral credit insurer’s 13th institutional shareholder.
ATI says it now expects to support “many more” Japanese manufacturers, traders, exporters and financial institutions seeking market access across Africa in the coming years.
“We are confident that as Japan expands its FDI and footprint into Africa, its membership in ATI will not only improve our institution’s capacity to support trade and investment across the continent, but will also attract more Japanese investment seeking business opportunities in Africa’s 1.2 billion-strong single market under the African Continental Free Trade Area,” says ATI chief executive Manuel Moses.
Ahead of the 43rd session of its biennial Ministerial Conference (1 – 7 July), the Food and Agriculture Organization of the United Nations (FAO) today hosted a High-Level Ministerial Event called Transforming agrifood systems to increase resilience and achieve the 2030 Agenda - Harnessing the potential of Small Island Developing States, Least Developed Countries and Landlocked Developing Countries.
The meeting proposed the establishment of a Ministerial network for Small Island Developing States, Least Developed Countries and Landlocked Developing Countries (SIDS, LDCs and LLDCs) with technical support from FAO. This would share experiences, knowledge and collectively build resilience to climate change and disasters, resilience to food insecurity, the Blue Transformation roadmap and secure investments and access to finance in order to scale-up transformation of agrifood systems – especially in the face of the impacts of the climate crisis.
The FAO Director-General made it clear that FAO is ready to further strengthen its support to SIDS, LDCs and LLDCs. To address the climate crisis, for example, Qu stressed the need to “prioritize climate-resilient agricultural practices,” which includes using resilient crop varieties; increasing productivity while reducing greenhouse gas emissions; implementing sustainable and adapted soil, water and land management systems; and developing science-based tools for evidence based decision-making.
Members conclude tariff quota review, discuss food security, farm policies, transparency (WTO)
Participants also took the opportunity to seek further information on individual notifications submitted by members concerning tariff quota administration, special agricultural safeguards, domestic support and export subsidy notifications as well as notifications in the context of the NFIDC Decision . Members heard updated analyses on food markets and the prospect for global food security from the World Food Programme (WFP, G/AG/GEN/221 ), the UN Food and Agriculture Organization(FAO), the International Monetary Fund(IMF) and the World Bank Group.
UN agencies head up new $115 million push for cleaner, healthier oceans (UN News)
FAO will co-lead the Clean and Healthy Oceans initiative together with the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD) and the Development Bank of Latin America (CAF), in a strategic partnership with the Intergovernmental Oceanographic Commission of the UN educational, science and cultural agency UNESCO.
“Together, we can turn the tide on pollution for better production, better nutrition, a better environment, and a better life,” said FAO Director-General, QU Dongyu.
Related News
tralac Daily News
Inadequate and ageing infrastructure remains a significant obstacle towards Africa achieving its full economic growth potential. According to the Infrastructure Consortium of Africa (ICA), poor road, rail and harbour infrastructure adds 30-40 percent to the costs of goods, which is borne by consumers and is a significant factor in the inflation-driven cost of living crisis. For South Africa, there are particularly acute challenges in this regard. A recent study by the World Bank showed the poor state of infrastructure reduced national economic growth by two percentage points every year and cut business productivity by as much as 40 percent.
Once hailed as the gateway to the rest of Africa, South Africa’s port infrastructure is in dire straits, with inefficiencies due to ageing infrastructure, poorly maintained equipment, and a misallocation of human resources. The country’s ability to supply essential goods to the rest of Africa has suffered and a significant turnaround needs to restore its reputation, as the country has lost competitive ground against other rapidly emerging African markets, such as Maputo, Dar es Salaam, and Walvis Bay.
DUCAT is however optimistic about the opportunities presented in the logistics sector in South Africa. The group is committed to supporting the South African industrial value chain by applying targeted capital investments of up to R300 million in physical dry bulk and cross-dock infrastructure with technical know-how to existing underutilised assets. By doing so, it aims to deliver immediate practical solutions to its customer base.
“Trade flows rely on logistics arteries, and we are committed to developing new capacity while also repurposing and upgrading existing capacity in the dry, wet, and dirty goods sector. Last year, DUCAT successfully acquired Senzomix, a warehousing operator based within the Port of Cape Town. This strategic acquisition allowed the company to establish a physical footprint in Southern Africa and strengthen its position in the warehousing and bulk logistics industry,” says Rory Clark, Managing Director of DUCAT Senzomix.
Potential Agoa expulsion would add to South Africa’s growing chicken price problems (Engineering News)
Food importer Hume International logistics and operations director Roy Thomas stresses that the looming threat of South Africa‘s expulsion from the African Growth and Opportunity Act (Agoa) trade agreement with the US threatens to push the industry over the edge, risking meteoric rises in local chicken prices.
This comes in addition to the fact that South Africa‘s chicken supply and its crucial import industry are already in a tenuous position as a result of the global bird flu outbreak.
But US lawmakers’ recent request to move the upcoming Agoa Summit out of South Africa hints at the country potentially being excluded from the Agoa agreement before it reaches its next renewal date in 2025. This is an event which could prove catastrophic, warn experts.
Govt developing critical minerals strategy to support green industrialisation – Mantashe (Engineering News)
Mineral Resources and Energy Minister Gwede Mantashe reports that government is in the process of developing a critical minerals strategy for South Africa, which will seek to support green-economy value chains domestically and abroad.
Speaking at the Northern Cape Mining and Energy Investment Conference, Mantashe reported that government was monitoring global developments around critical minerals, which he termed a “new theatre of global economic struggle” to ensure that the strategy supported South Africa‘s industrialisation aspirations.
“It is no secret that our country is well endowed with these critical minerals and can use them not only for beneficiation but also to position our country to be a strategic partner,” Mantashe said.
Minister Naledi Pandor: Eleventh Meeting of the South Africa-Germany Bi-National Commission (South African Government)
Our relationship with Germany is one of the most important and most strategic that we have with any country and our Bi-National Commission one of the most substantive that we have. It is not difficult to see why that is so. South Africa is Germany’s largest trading partner in Africa. At the same time, Germany is the third largest export market for South African products, most of which are value-added. The German economy is export-focused and yet we have a healthy trade surplus. Your country is a major investor in South Africa and an important development partner.
Mozambique: African Development Bank adopts new Country Strategy Paper covering 2023-2028 (AfDB)
The Board of Directors of the African Development Bank Group has endorsed the Bank’s 2023-2028 Country Strategy Paper for Mozambique on 13 June 2023. The new strategy aims to promote the country’s structural transformation by improving fiscal stability, creating decent jobs and generating inclusive growth. The strategy has two priority areas: fostering improved economic governance and the business environment to facilitate private sector investment and mobilize resources and transforming agricultural value chains by strengthening infrastructure sustainably.
This strategy is the culmination of efforts by the government, development partners, civil society, the private sector and technical experts on the country’s most critical economic reforms to implement in the coming years.
Implementation of the strategy is expected to lead to (i) greater private sector involvement to boost international trade; (ii) improved investment flows, and (iii) job creation—especially for women and young people. This is expected to have a knock-on effect of raising foreign direct investment to 30% of GDP from 22.7%.
With support from the Bank, Mozambique will stimulate the green economy and transform agriculture to increase the number of competitive industries capable of creating jobs and reducing poverty and inequality. The Bank’s engagement will also help improve livelihoods through investments in the agricultural sector based on a holistic, cross-sectoral approach and the development and modernization of Mozambique’s energy system.
The 2023-2028 Country Strategy Paper for Mozambique envisages establishment of a productive special agro-industrial processing zone by 2028 through the creation of 50 new companies and 200 new cooperatives or groups of external producers. It also projects that new investments will total $100 million. Mozambique’s electricity exports to southern Africa are expected to equal over five gigawatt-hours.
Nigeria: LNG facility to boost gas-based processing economy (ESI-Africa)
Nigeria’s first indigenously owned floating LNG facility with a nameplate production capacity of 1.2 million metric tons per year is to be built in Akwa Ibom State. The African Export-Import Bank (Afreximbank) and UTM Offshore Limited recently signed a project preparation facility agreement to develop, design and construct the facility.
Under the agreement, Afreximbank is to part-finance project preparatory activities that will de-risk the project and advance it to bankability “in a timely manner.” The Bank said it is leveraging its diverse product suite to provide end-to-end solutions to the project.
“Through its financial advisory mandate, Afreximbank has been playing an instrumental role in structuring the transaction to ensure optimal returns and debt sizing, as well as identifying equity investors to invest in the project on favourable terms. “Moreover, this project has economically transformative potential – establishing trade-enabling infrastructure which will allow Nigeria to pivot from a crude oil export-based economy to a gas-based processing industrial economy.” This, in turn, will unlock significant development impacts, it said. The project will also contribute to the reduction of flaring of natural gas.
Uganda, Mauritius reach new deal on double taxation (The East African)
Uganda and Mauritius have agreed on changes to their 2015 bilateral double taxation agreement (DTA) after months of talks. Among the changes are exclusive taxing rights for all hydrocarbon-based transactions in favour of Uganda, according to Uganda’s Finance Ministry. “The changes are awaiting ratification by the partner states,” said Moses Kaggwa, Director for Economic Affairs at the Ministry of Finance, Planning and Economic Development.
However, talks over a double taxation treaty with the Netherlands failed over technical services with the latter suggesting five percent withholding tax while Kampala insists on 10 percent.
The 2006 DTA between the two does not provide for taxation of technical services, accounting, property valuation, engineering and information and communications technology consultancy. Sources cite the country’s $10 billion commercial oil production programme and establishment of offshore subsidiaries by players involved in the oil and gas industry, as the rationale for taxing technical services.
Traders protest as Tanzania blocks 200 Uganda-bound rice, maize trucks (The East African)
The Government of Tanzania through its ministry of agriculture has temporarily suspended issuance of permits to Ugandan traders who export rice and maize flour from the country. As a result, about 200 heavy trucks loaded with rice and maize seeds have been barred from crossing to Uganda through Mutukula one-stop border post. The ban, according to a circular from the ministry, took effect on June 13.
Currently, the Tanzania Ministry of Agriculture in conjunction with the Tropical Pesticides Research Institute and Tanzania Fertilizer Regulatory Authority are conducting an assessment exercise on seasons, the availability of corn foods and manufacturing conditions of foods in their country for 2023/2024 financial year.
‘‘Permits for exportation for corn, corn flour and rice have been temporarily suspended until the government completes the assessment exercise, availability of crop seasons, shipping of corn foods and manufacturing conditions,’’ the circular reads in part.
The government of Tanzania has also reminded all traders dealing in cereal seeds to acquire all documents required to do the business.
‘‘The action by Tanzanian authorities is a non-tariff barrier aimed at pushing Ugandan traders out of business, yet Tanzania continues to import products from here [Uganda] ,” he said.
Northern Corridor truckers warn of fee increase on VAT doubling (The East African)
Kenyan long-distance transporters have said transport costs will increase starting July 1, after parliament voted to double value added tax (VAT) on petroleum products to 16 percent on June 21.With the uncertainty in the transport sector in the coming days, some transporters have announced plans to downsize staff to reduce the cost of operations to remain in business.
Transporters say increasing costs and non-tariff barriers on the Northern Corridor will increase the cost of doing business and, if not checked, it will benefit the Central Corridor, where the Tanzanian government is working to cut transport costs and improve infrastructure.
With the passing of the Finance Bill 2023, the current cost of transporting goods will increase from the current minimum of $2.35 per kilometre for transit goods and $2.25 for local cargo. High costs, increasing road tolls, multiple border charges, and bad road conditions have already been identified as factors that cause cost escalations for transporters on the Northern Corridor, which Dar is taking advantage to have a slice of Mombasa’s cargo throughput share.
Reopening Seme Border: An End To Economic Strangulation (iBrandTV)
President Bola Tinubu’s decision to fully reopen the Seme land border has resonated well with many who have applauded him for making economic policies geared towards improving the lives of many Nigerians.
At a time like this when the nations’ economy is at it’s lowest, reopening Seme border has been considered as a good strategy because it would allow businesses to access more markets.
With this, a major end has come to economic strangulation that has relegated the manufacturing industry in Nigeria. Manufacturers can now begin to source for raw materials from neighbouring countries easily while exploring options for expansion.
An open border enables the free movement of people and goods between jurisdictions with no restrictions on movement.
The manufacturing sector in Nigeria is at the brink of a collapse occasioned by the rising cost of production. Lack of infrastructure, FX shortage, huge tax burdens, Naira devaluation, and the Naira redesign policy of the Central Bank of Nigeria, among other issues add to the manufacturers woes.
AfDB to throw weight on SGR projects (Tanzania Daily News)
THE African Development Bank (AfDB) has expressed interest to finance the implementation of Standard Gauge Railway (SGR) project in Tanzania.
Recently, the governments of Tanzania and Burundi applied for financing from the AfDB toward the cost of the construction of the Tanzania/Burundi (Uvinza – Musongati – Gitega) SGR section. In May this year, the government announced an invitation for the initial selection work of the same.
This will be the phase one of the Tanzania – Burundi – DR Congo SGR project and intends to apply part of the proceeds from the loans to make payments under the contract for works for construction of SGR under Design and Build Arrangement.
In the meeting yesterday, Dr Mwigulu also noted that the AfDB has also expressed its intention to cooperate with the government in increasing capital to Tanzania Agricultural Development Bank Limited (TADB), which is the catalyst for the implementation of agricultural projects in terms of irrigation and value increment.
SACU Summit Communiqué, 29 June 2023
The 8th Summit of the Southern African Customs Union (SACU) Heads of State or Government took place on the 29th June 2023, in Mandvulo, Kingdom of Eswatini.
In the area of the Trade Facilitation and Logistics Programme, which includes customs cooperation, border coordination, behind-the-border measures, transport and logistics, support for trade agreements, and cross-cutting policy imperatives, the Summit noted the completion of an Operational Plan to guide its implementation.
The Summit noted with appreciation that all SACU Member States have ratified the Agreement establishing the African Continental Free Trade Area (AfCFTA). The SACU Provisional Schedule of Tariff Concession (PSTC) to the AfCFTA, which includes products with a full tariff reduction (90 percent) over a ten-year period, was adopted on the 31st May 2023. Additionally, all Revenue Administrations in SACU have completed the necessary documentation for the implementation of the AfCFTA.
Zambia creditors agree to restructure debt (The East African)
Zambia’s lenders, including major creditor China, have agreed to restructure the country’s public debt, officials said Thursday, providing financial relief to the first African nation to default after the Covid pandemic.
The agreement on $6.3 billion of Zambia’s debt was confirmed by a French official on condition of anonymity, on the sidelines of a summit aimed at revamping the international financial system to better tackle climate change and poverty. Zambia, Africa’s biggest copper producer, with a population of nearly 20 million people, defaulted on its $18.6 billion external debt in 2020 but negotiations had stumbled over differences between China and Western creditors. The United States had accused China of delaying the debt agreement.
DRC gets $203m IMF loan to boost dwindling forex reserves (The East African)
The Democratic Republic of Congo has received a $203.3 million loan from the International Monetary Fund (IMF) to boost the country’s foreign exchange reserves which have fallen to $4.5 billion, covering only two months of imports. The loan is part of the extended credit facility (ECF) arrangement with the multilateral lender reached in July 2021, which will see DRC get a total of 1.066 special drawing rights (SDRs) or about $1.52 billion by 2024.
The disbursement brings the total amount received under the arrangement to $1.02 billion.
“The current account deficit deteriorated to 5.3 percent of GDP, as higher export growth only partially compensated for higher imports and a more deteriorated service account,” IMF said in a statement on Wednesday. Kinshasa continues to grapple with a high trade deficit, currently at 5.3 percent of GDP, which has contributed to the continued drop in forex reserves, compounded by other internal and international economic shocks.
Ghana agrees restructuring deal with banks on some domestic debt (Reuters)
Ghana has reached an agreement with banks to restructure 15 billion Ghana cedi ($1.36 billion) of locally issued U.S. dollar bonds and cocoa bills, three sources close to the negotiations have told Reuters. The West African nation is seeking new terms for the restructuring of its domestic debt by the end of June to be able to meet an International Monetary Fund (IMF) deadline, and focus attention on negotiations with external creditors.
Ghana concluded the first phase of its domestic debt exchange in February, with 85% of eligible bondholders participating, but needs new terms for another 123 billion Ghana cedi ($11.18 billion) to qualify for the next tranche of a $3 billion IMF loan to address its worst economic crisis in a generation.
The gold-, cocoa- and oil-exporting country, which defaulted on most external debt in December, aims to reduce its external debt interest repayments by $10.5 billion over the next three years under an IMF bailout secured in May.
Evolution Of Debt Landscape Over The Past 10 Years In Africa (Africa.com)
Keynote Speech by Dr. Akinwumi A. Adesina, President, African Development Bank Group, Delivered at the Paris Club on June 20, 2023
The total external debt of Africa was estimated at $1.1 trillion in 2022. This is expected to rise to $1.13 trillion by 2023. This is due to several factors: the carry-over effects of the Covid-19 pandemic on economies and their fiscal space which led to downgrades of several countries; the rising costs of energy and food prices from the Russian-Ukraine war; and the rising costs of adapting to climate change.
The structure of Africa’s debt has changed dramatically in the past decade or more, accentuating a trend that started in the mid-2000s. I would like to discuss five trends.
The United States Agency for International Development (USAID), through the Power Africa Presidential Initiative, and the African Development Bank, have signed an extension and expansion of their existing Regional Development Objectives Agreement (RDOAG) on the margins of the Africa Energy Forum in Nairobi.
The move deepens the strategic partnership and expands the basis for cooperation in developing innovative and sustainable solutions to combat energy poverty, climate change, and strengthen energy systems in sub-Saharan Africa. Specifically, the agreement, targets ending energy poverty by 2030; accelerating the Just Energy Transition in Africa; and strengthening the enabling environment for clean energy.
The United States Agency for International Development (USAID), through the Power Africa Presidential Initiative, and the African Development Bank, have signed an extension and expansion of their existing Regional Development Objectives Agreement (RDOAG) on the margins of the Africa Energy Forum in Nairobi.
The five-year extension, running through September 2028, paves the way for up to $500 million in future contributions from the United States to further RDOAG’s objectives. To date, about $388 million has been channeled through the RDOAG, including direct support for the African Development Bank-managed Sustainable Energy Fund for Africa (SEFA) and the Bank’s Desert to Power initiative.
China-Africa trade index debuts, indicating strong growth (Xinhua)
The China-Africa Trade Index, based on trade-indicator data between China and African countries, was released for the first time at the opening of the third China-Africa Economic and Trade Expo on Thursday in Changsha, capital of central China’s Hunan Province. The index, which was released by the General Administration of Customs, shows strong growth in trade over the past two decades and indicates that trade between China and Africa has become increasingly close, with trade potential continuing to grow, said Lyu Daliang, director of the statistics and analysis department of the administration.
In the first five months of 2023, China’s total import and export volume with Africa reached 822.32 billion yuan (113.5 billion U.S. dollars), up 16.4 percent year on year, according to the administration’s data.
Trade facilitation cooperation to bring more African agricultural, food products to China (Xinhua)
China and African countries on Thursday proposed the establishment of a liaison mechanism for sanitary and phytosanitary (SPS) cooperation to strengthen the docking of inspection and quarantine standards and rules, which is key to facilitating African exports of agricultural and food products to China.
The China-Africa SPS cooperation information website was also launched at the event. Wang Lingjun, deputy director of China’s General Administration of Customs, signed agricultural and food product market access agreements with representatives from Madagascar and Zimbabwe at the meeting.
Strengthening SMEs and entrepreneurs key to a strong, resilient economy (OECD)
SMEs remain under pressure due to the combined effects of economic uncertainty stemming from Russia’s continuing war of aggression against Ukraine, the lingering effects of the COVID-19 pandemic and other geopolitical tensions that have weighed heavily on SMEs and entrepreneurs, which account for a critical 99% of all firms and employ two-thirds of private-sector workers. Large-scale, temporary government support played a critical role in protecting the livelihoods of entrepreneurs and SME workers. However, as monetary conditions tighten and fiscal support unwinds, firm bankruptcies are rising, and SMEs again find themselves at risk.
The new OECD SME and Entrepreneurship Outlook 2023 shows that many SMEs are struggling to recruit in a tight labour market and must also cope with higher levels of debt following the pandemic. The struggle to access finance for much-needed investment could have critical implications for the green and digital recovery, underlining the importance of the new OECD Recommendation on Financing SMEs in unlocking alternative forms of finance – including venture capital, crowd funding and other sources of investment capital.
Related News
tralac Daily News
South African citrus growers say EU pest rules putting squeeze on exports (Reuters)
New European Union pest control rules will cut South Africa’s orange exports to Europe by 20% this year, threatening thousands of jobs, the Citrus Growers Association (CGA) has said. The new measures imposed by the EU last June require enhanced cold treatment for citrus exports due to concerns over False Codling Moth, a pest commonly found in sub-Saharan Africa, and Citrus Black Spot.
“Current estimates are that around 20% of oranges produced for Europe will not be shipped this year because of the new regulations,” CGA president Justin Chadwick said in a statement. “This means that approximately 80,000 tons of oranges might not make it to European supermarket shelves,” he said.
South Africa is the world’s second largest citrus exporter after Spain and sold 32% of its oranges into the European market last year, according to the country’s Perishable Products Export Control Board. The CGA wants South Africa to discuss the new pest regulations at a joint meeting of African Union and EU agriculture ministers to be held in Rome on June 30.
South Africa, Germany to establish a task force to drive green hydrogen production, trade (Engineering News)
Electricity Minister Dr Kgosientsho Ramokgopa has, on behalf of the South African government, signed a joint declaration for the planned establishment of a South African-German Hydrogen Task Force that will help to drive the commercial viability of green hydrogen projects, industry and infrastructure in both countries.
German Vice Chancellor and Minister of Economic Affairs and Climate Action Robert Habeck signed the declaration on behalf of the Federal Republic of Germany during a bi-national commission held in South Africa this week.
Central Bank set to be sole regulator of all payment systems (Namibia Economist)
To address uncertainty and inefficiencies in the national payment system regulations, the Minister of Finance and Public Enterprises, Hon Iipumbu Shiimi introduced the Payment Systems Management Bill in parliament this week to repeal the Payment Systems Management Act (Act 18 of 2003) as amended.
He added that as a result, the Central Bank began its legislative review of the Payment Systems Management Act in 2017, which included efforts like consulting payment legislation from other jurisdictions, engaging the national payment system industry, and consulting both the World Bank and the Financial Action Task Force (FATF) during 2020 and 2021 for input and guidance regarding the Bill.
In addition, the finance and public enterprises minister acknowledged that the national payment system was mainly characterized by bank institutions, albeit noting that ‘non-banks’ known as ‘fintechs’ are “increasingly” providing digital and electronic payment in the national payment system, Shiimi said in the National Assembly this week when tabling the Bill.
“Given this dynamism, the need to introduce enabling, flexible and robust legislation was apparent to embrace innovation, promote competition and manage risk in the ecosystem. In addition to this, several significant gaps and shortcomings were identified in the existing legislation, which is salient in enabling the Bank to effectively regulate and oversee the national payment system,” Shiimi affirmed, adding that the proposed legislation will put the Bank in a position to promote regional and continental payment system integration and harmonize SADC payment system laws.
Regional NGOs warn Kenya on EU trade deal (The Independent Uganda)
Eastern and Southern African trade promotion organisations are pushing for the rescinding by Kenya of the recent agreement with the European Union to implement the Economic Partnership Agreement (EPA) between them. They say the deal pauses “imminent danger” to the integration of East Africa and the continent as a whole, as well as the ongoing trade initiatives like African Continental Free Trade Area.
The Southern and Eastern Africa Trade Information and Negotiations Institute, SEATINI, Uganda, SEATINI Southern Africa and Akina Mama Wa Afrika say Kenya’s move to implement the deal will have far-reaching impacts on the region and continent. SEATINI Uganda Executive Director, Jane Nalunga says Kenya should have first pushed EAC governments to put in place measures that would respond to the outstanding issues.
PM Ngirente, EU delegation discuss trade partnership (The New Times)
Prime Minister Edouard Ngirente held a meeting with the European Union (EU) delegation, at his office on June 27 and discussed various areas of partnership to boost trade and investments.
Speaking to the media, Doens pointed out that the meeting with Prime Minister was the opportunity to take stock to make a joint assessment of what happened over the past two days in the EU- business forum held in Rwanda for the first time.
Rwanda has a strong health agenda and aims to attract EU investors interested in value addition. This is largely due to the government’s clear agenda, knowledge of its strengths, and strong implementation capacity. The one-stop center further facilitates doing business in Rwanda, making it a favorable investment destination for EU investors, he added.
Customs: Seychelles adopts REX for exports to EU from July 1 (Seychelles News Agency)
A new self-certification system called the Registered Exporter System (REX) will go live in Seychelles as of July 1 for goods originating from the island nation to the European Union countries. According to the manager of classification, valuation and rules of origin in the Customs Division, Gerda Cesar, this is a system that will replace the EUR.1 which is currently being used.
“This means that all exporters who send their products to European countries such as Belgium and France and were using the EUR.1 certificate to benefit from the reduced taxations except for those sending products to the UK, will also use this as proof that their products originate from Seychelles,” explained Cesar.
President Ruto to ban imported shoes in 2 years (Capital Business)
President William Ruto will ban imported shoes in two years to support the local leather industry that has been facing cheap products from abroad. Instead, the Head of State said that the country will use its own skins to make the products.
He said that the country’s leathers were being given to dogs while the country was buying alternatives from abroad at exorbitant prices between Sh20,000 and Sh40,000.
To support the industry, the Government has allocated nearly Sh2 billion for the treatment of cowhide to improve the local supply chain. This, he said, will increase earnings for farmers who sell their hides at throw-away prices.
Fuel Subsidy Reform Offers a Path to a Resilient, Sustainable Economy in Central African Republic: World Bank Report (World Bank)
The economy of the Central African Republic is projected to return to growth this year after stalling in 2022. Heavy flooding and severe shortages of fuel took a heavy toll last year on the economy and people, who experienced high levels of acute food insecurity, says the latest edition of the World Bank’s Central African Republic (CAR) Economic Update.
Economic activity in CAR may see a modest rebound over the medium term, with growth projected at 3.6% in 2024 and 2025, provided that fuel supply in the domestic market improves and the security gains continue. This outlook is driven by anticipated higher international prices of timber, CAR’s main export, owing to a rebound of global demand, particularly from China.
The report focuses on much-needed reforms on fuel subsidies, which have surged globally as international oil prices began rising in late 2020, reaching new heights in 2022 amid the war in Ukraine. In CAR, fuel subsidies represented about 0.5% of GDP and accounted for nearly 6% of domestic revenues and 6.3% of tax revenues in 2022.
“A well-designed fuel subsidy reform should include a robust mitigation package that offers targeted support to the most vulnerable segments of society,” explains Pierre Mandon, co-author of the report.
Nigeria Can Seize the Opportunity to Realize Its Growth Potential (World Bank)
The new administration has initiated critical reforms to address macroeconomic imbalances. This window of opportunity could have a transformative impact on the lives of millions of Nigerians and establish a solid foundation for sustainable and inclusive growth.
The removal of the petrol subsidy and foreign exchange (FX) management reforms are crucial measures to begin to rebuild fiscal space and restore macroeconomic stability, and the opportunity should be seized to take further, necessary policy reform steps, says the latest Nigeria Development Update (NDU). The June 2023 edition of the NDU, titled “Seizing the Opportunity”, adds that it is critical to implement a comprehensive reform package that encompasses a range of complementary measures, including a new social compact to protect the poor and most vulnerable, to maximize the collective impact on growth, job creation, and poverty reduction.
Egypt’s foreign trade hit $58.5bln in H1 FY 2022/23: CBE (ZAWYA)
The volume of Egypt’s foreign trade hit $58.559bn in the first half of the fiscal year (1H FY) 2022/23, according to the Central Bank of Egypt (CBE). Imports accounted for $37.054bn, while exports totaled $21.505bn.
The CBE’s monthly report said that trade exchange between Egypt and its top 14 trading partners, which accounted for 62.9% of the total volume of trade exchange, amounted to $36.821bn. Of this, $22.211bn were exports and $14.61bn were imports.
The UAE ranked first as Egypt’s top trading partner, with a volume of trade exchange of $4.873bn. China was second with $4.114bn, followed by the US with $4.040bn. Saudi Arabia was fourth with $3.550bn, and Turkey was fifth with $2.686bn.
Tunisia: Balance of trade in fishery products posts surplus (ZAWYA)
The trade balance in fisheries products recorded a surplus of TND 83.2 million in the first four months of 2023, down 19.4% compared with the same period in 2022, according to data from the National Observatory for Agriculture (ONAGRI) published on Monday. The value of exports of fishery products fell slightly by 3.7% in quantity to 10.3 thousand tonnes and by 3.6% in value to TND 200.5 million at the end of April 2023, compared with the same period last year.
The most commonly exported species are fish, crustaceans, preserves and semi-preserves. Tunisian exports of fishery products are spread over 37 destinations, including Italy, the leading importer (accounting for 35.5% of total exports), followed by Libya (19.4%), the United Arab Emirates (13.7%) and Spain (9.7%).
China to strengthen cooperation with EAC in capacity building and trade (EAC)
The People’s Republic of China has pledged to strengthen cooperation with the East African Community (EAC) in capacity building, trade, infrastructure development and other fields.
The Chinese Ambassador to Tanzania and the EAC, H.E. Chen Mingjian, said that China as the world’s largest developing country was highly optimistic about promoting economic growth not just in the EAC but on the entire African continent.
Amb. Mingjian said that China would remain a staunch and strong supporter of EAC on development matters, and reaffirmed her country’s desire to strengthen collaboration and solidarity with the Community for the mutual benefit of both parties.
How scramble for food is affecting regional trade (The Citizen)
Cereal traders in eastern, central and southern Africa are finding it increasingly difficult to conduct business as countries employ new tactics to restrict exports and protect their citizens against looming hunger. There were complaints from Ugandan traders last week after they learnt that Tanzanian authorities, through the Agriculture ministry, had temporarily suspended the issuance of rice and maize export permits.
The suspension is in line with a government circular that took effect on June 13, 2023. The circular seeks to enable the government to take stock of the availability of cereals and food processing during the 2023/24 financial year. Tanzania has also issued new directives aimed at formalising trade in food crops for the benefit of the government, farmers and foreign traders.
Agriculture minister Hussen Bashe said recently that the directives, which include the issuance of maize export permits, do not target any neighbouring country and that the government expected traders to comply.
MOWCA, Afreximbank begin talks on ship financing (The Guardian Nigeria)
The Maritime Organisation of West and Central Africa (MOWCA) has commenced talks with Afreximbank on ship financing and procurement of other maritime assets for African investors and maritime stakeholders. After a virtual bilateral meeting between MOWCA and Afreximbank, both organisations agreed on the need to expand maritime business opportunities and strengthen the planned Africa-wide cabotage regime to boost investments and generate jobs.
According to Secretary-General, MOWCA, Dr. Paul Adalikwu, seaborne trade is dominated by the giant shipping lines from Europe and Asia, noting that the only profit Africa makes is the registration fees of the vessels in some member states and port fees when they call to discharge cargoes leading to capital flight. He said for the objectives of AfCTA to be realised, there must be African-owned vessels plying the continent.
He further indicated that shipping needs modernisation of African ports with intermodal connectivity, such as rail, road, pipeline and inland waterways, as well as the development of dry ports to solve the problem of likely congestion.
Bright outlook for Africa-Asia cargo, amid concern over Sudan conflict (The Loadstar)
The Africa to Asia trade route has experienced a significant boost in cargo demand recently, but concerns have arisen over potential logistical problems caused by conflict in Sudan.
“Our monthly statistics show there is sufficient capacity to support the increasing air cargo demand in recent months,” said Bojan Wang, an IATA economist in the industry analysis unit.
A source at Ethiopian Airlines (ET) told The Loadstar: “We have enough capacity to connect and serve Africa and Asia via air and sea-air modality logistics services. However, in the future, partnership options [potentially with Chinese operators] will be reviewed in line with the prospect business growth and the change in the overall macro-economic environment.”
But even with demand between Asia and Africa showing positive trends, there are concerns about political instability in places like Sudan, that might create logistical problems.
“Sudan’s air space is closed and supply chains have been disrupted in the region,” said Mr Wang. “Sudan is among the largest producers of grain harvests in Africa, and the conflict might undermine efforts to boost wheat production there. As observed in Ukraine, the conflict in Sudan will likely force air cargo carriers to suspend or modify operations, causing knock-on effects to supply chains.”
Looking ahead, the most important challenge, and opportunity, is to significantly increase Africa’s share in global trade and air cargo activities, including balancing inbound and outbound cargo. This was a hot topic at the TIACA regional summit in Kenya last week.
Transition Support Facility: Focusing on MSMEs for post-Covid reconstruction in Africa (AfDB)
To face the unprecedented new global challenges brought about by the COVID-19 pandemic, the spotlight has turned to the importance of the private sector in building resilience in transition states and in particular, the crucial role of supporting micro, small and medium-sized enterprises (MSMEs).
Indeed, the latter have seen their already pre-existing fragility aggravated by the consequences of the health crisis. It is now clear that promoting an enabling environment for MSMEs is crucial for economic recovery, poverty reduction and long-term stability. Efforts are now being made to empower SMEs, especially those owned or created by women and/or young people, in order to harness their potential for job creation, stimulate innovation and strengthen local economies, and thereby pave the way for a more resilient post-pandemic era on the African continent.
Between 2020 and 2022, the Transition Support Facility (TSF), a disbursement mechanism designed to help countries consolidate peace, build resilient institutions, stabilize their economies and lay the foundations for inclusive growth, funded projects addressing the imperative of building resilience in more than 10 African states in transition, countries where the main development challenge is fragility
How to make small businesses in developing countries more competitive (UNCTAD)
Sitshengisiwe Ndlovu found her calling in supporting women small traders during her previous work as a customs officer in her native Zimbabwe. She met many women who made a living out of small-scale cross-border trade and came to understand their challenges first-hand. For example, they often lack knowledge in trade procedures and applicable duties and taxes, exposing them to fines and confiscation of goods. Such barriers, if left unaddressed, risk the survival of these micro, small and medium-sized enterprises (MSMEs).
The annual MSME Day marked on 27 June spotlights the contributions of small businesses to achieve the 2030 Agenda and the UN’s Sustainable Development Goals. According to the World Bank, these enterprises represent about 90% of businesses globally and create 70% of formal jobs in emerging economies. This year, the focus is on galvanizing MSMEs worldwide by supporting women and youth entrepreneurship and resilient supply chains.
Developing country leaders rallied in Paris, highlighting the urgency for reform of the global financial architecture to counteract economic, environmental and social adversities, and to rescue the Sustainable Development Goals.
“Predictable, affordable and sustainable financing is critical to allowing African countries to get back on track to achieve the Sustainable Development Goals,” Economic Commission for Africa (ECA) Acting Executive Secretary, Antonio Pedro, said at the Sustainable Debt Coalition event organized on the margins of the Summit for a New Global Financing Pact in Paris.
The Sustainable Debt Coalition, launched by the Government of Egypt at COP27, aims to address critical financing challenges faced by emerging markets and developing economies, particularly the debilitating impacts these have on climate action and development. It introduces a fresh consultation pathway that intersects debt, climate, and developmental concerns, fostering dialogue for innovative solutions.
Gender Gap Report 2023: Challenges Remain in Economic Participation and Opportunity - Modern Diplomacy (Modern Diplomacy)
India has climbed eight places in the annual Gender Gap Report, 2023, and now is in the position of 127 out of 146 countries in terms of gender parity, which was 135 last year. The recently released 17th edition of this report by the world economic forum (WEF) evaluates gender parity On the basis of four key markers of the index – The Global Gender Gap (GGG) index measures and tracks the economic participation, educational attainment, health and survival, and political empowerment of a nation.
This year by crossing 64.3 percent of its overall gender gap, India opens its window of opportunities in the global sphere.
An analysis of the Initiatives that India has taken all through its journey to reduce gender gap in social, economic and political life could give an explicit picture of development master plans. The “Mahila Shakti Kendra” scheme aims to empower rural women by providing skill development opportunities and avenues for employment. However, the country is lagging behind in economic participation and opportunity, with only 36.7 percent parity.
UNCTAD measures progress on sustainable development goals, shows impact of global crises (UNCTAD)
UNCTAD released on 27 June the fifth edition of its annual SDG Pulse, a global reference for tracking progress towards achieving the Sustainable Development Goals (SDGs) by 2030.
This year, the report’s “In-Focus” section looks into the costs of achieving the SDGs to identify where financing is most needed and to help better target efforts.
The data shows that the COVID-19 pandemic, the war in Ukraine and the climate crises are having a devastating effect on progress towards the SDGs. “We’ve reached the halfway mark of the 2030 Agenda, and multiple global crises are battering our economies, societies and the planet,” said Anu Peltola, who leads UNCTAD’s statistics work. “It’s more important than ever for policymakers to have timely and reliable data and analysis to guide their decisions.”
New submissions revitalise agriculture talks ahead of ministerial conference (WTO)
Members presented three new submissions on domestic support to the agricultural sector — which is widely seen as a priority in the talks by WTO members because of its impact on the ability of producers to compete fairly in global markets.
The African Group reiterated its call for caps on domestic support that exceeds the “de minimis” threshold, which is defined as a share of the value of agricultural production and set at different levels for developed and developing economies. They also proposed limiting some types of support which is currently classified as “green box” — meaning it is allowed without limit so long as it does not cause more than minimal distortion to trade and production.
WTO webinar looks at how South-South, multi-party cooperation supports developing economies (WTO)
Citing 2022 data from the United Nations Conference on Trade and Development, DDG Zhang noted that the share of South-South trade in world trade has expanded from 17 per cent in 2005 to 28 per cent in 2021. Its value has increased by approximately 50 per cent since 2019. South Asia and East Asia have witnessed growth of over 65 per cent and Latin America of about 45 per cent.
Encouraging South-South and triangular cooperation partners to use the Aid-for-Trade platform to share their experiences, expertise and good practices, DDG Zhang called on members to seize “this opportunity to forge long-term collaboration, exchange best practices, and develop innovative solutions that will shape a brighter and more prosperous future for all.”
Members discuss cybersecurity, intangible digital products, raise over 60 trade concerns (WTO)
The new chair of the TBT Committee, Anna Vitie (Finland), drew attention to a new WTO brochure highlighting the work of the TBT Committee in 2022. “Technical Barriers to Trade Agreement: 10 key results from 2022”.
Members stressed that, with various regulations on such emerging digital technologies currently being developed at national or regional levels, it is important to consider the crucial role of international standards in addressing regulatory fragmentation. At the same time, given the nature of accompanying issues such as privacy, the limits of harmonization via international standards was also recognized.
Members highlighted the important role of the TBT Agreement and the TBT Committee in ensuring regulatory harmonisation via international standards or when this is not possible, in promoting coherence and avoiding unnecessary trade restrictions.
China formally accepts Agreement on Fisheries Subsidies (WTO)
China deposited its instrument of acceptance for the Agreement on Fisheries Subsidies on 27 June, affirming its support for the historic agreement for ocean sustainability as the world’s leading marine fishing producer. Director-General Ngozi Okonjo-Iweala received the instrument from Commerce Minister Wang Wentao in Tianjin, China ahead of the World Economic Forum’s 14th Annual Meeting of the New Champions.
DG Okonjo-Iweala said: “I am delighted to welcome China’s formal acceptance of the Agreement on Fisheries Subsidies. As the world leader in marine fish catch, China’s support for the implementation of this agreement is critical to multilateral efforts to safeguard oceans, food security, and livelihoods. By curbing harmful fishing subsidies worldwide, we can together forge a path towards a legacy of abundance and opportunity for generations to come.”