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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.
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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.
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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.
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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.
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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.
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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.”
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Global development financing must achieve local benefits (SAnews)
With improved funding for South Africa’s Just Energy Transition, the country will be able to invest significantly in bolstering the electricity grid and new renewable energy generation.
In his weekly newsletter to the nation on Monday, President Cyril Ramaphosa said this will significantly help to end load shedding. The President’s newsletter comes after his participation at the New Global Financing Pact Summit in Paris last week, where several world leaders gathered.
“With improved funding for our Just Energy Transition, we will be able to invest substantially in strengthening our electricity grid and new renewable energy generation. “This will make a significant contribution to ending load shedding and securing a reliable and affordable supply of electricity. This will, in turn, promote economic growth, make our exports more competitive and create employment,” he said.
Reflecting on the summit, President Ramaphosa reiterated that global development financing, if properly directed and provided on a significant scale, can make a huge difference to the lives of people living in countries like South Africa.
“The industrialisation and economic development of the Global North was achieved at the expense of the Global South. Wealthier countries therefore have both an obligation and an interest in supporting development and climate action in poorer countries. “As South Africa, we argued for a fundamental overhaul of the international financial institutions that are responsible for supporting development across the world,” he said.
Namibia’s cosmetics and essential oils sector flourishes (The Namibian)
Industrialisation and trade minister Lucia Iipumbu says Namibia’s cosmetics and essential oils sector has grown in domestic production, enhancing possibilities for active participation in the regional value chain.
“For example, our exportable firms increased from five in 2016 to more than 35 by 2022 through concerted efforts by the private sector, the Namibian government and development partners,” Iipumbu said.
At SADC level, Namibia has prioritised sectors for value chain development, namely agro processing (leather processing), pharmaceutical, automobile, mineral beneficiation and tourism, she said.
Speaking at the same event, sport deputy minister Emma Kantema-Gaomas said women and youth traders are less likely to be equipped with appropriate skills in technology and resources to fully reap the fruits of the trade area agreement. “Moreover, it’s important to note that the youth could play a critical role with the success of this trade area, also noting that Africa is one of the youngest populations, where we have 60% of our inhabitants under the age of 25,” Kantema-Gaomas said.
Kenya: African Development Bank Group Board okays funds to support women and youth in agribusiness (AfDB)
The Board of Directors of the African Development Bank Group has approved an equity investment of €18 million in the Africa Guarantee Fund (AGF) and another €1.2 million to support youth and women entrepreneurs engaged in agricultural value chains in Kenya.
Mrs. Nnenna Nwabufo, the Bank Group’s Director General for East Africa, noted the approval as “another milestone in the implementation of the partnership with the EU, which also signals the importance given to the role of women and youth in the agricultural sector in Kenya.”
The demand for Micro, Small, and Medium Enterprises (MSME) financing remains unmet in Kenya and has been aggravated by the disruptions of the Covid-19 pandemic. The International Finance Corporation (IFC) estimates an SME finance gap of US$19.38 billion, representing 30 percent of the country’s GDP.
The World Bank’s Covid-19 Business Pulse Survey (BPS) shows that many potentially viable firms are still struggling. The agriculture sector employs the largest share of the population, especially in rural areas, and accounts for 60 percent of Kenya’s export.
FG okays re-opening of Seme border for vehicle importation (Vanguard)
Director of Road Transport in the Ministry of Transportation, Ibrahim Musa, yesterday, disclosed that the Federal Government has approved the re-opening of the Seme border for the importation of vehicles. Speaking at the Economic Community of West African States, ECOWAS, meeting, organised between officials of Nigeria and Benin, Musa said the development followed complaints by freight forwarders operating at the Seme border.
The director, who spoke at the ECOWAS Monitoring Team’s visit to the Seme-Krake Joint Border Post, said: “I was here with the former Minister of State for Transportation when the Freight Forwarders pleaded that the border should be reactivated for the free movement of goods and services.
“The former minister made us prepare a memo to that effect. It was considered and sent to the government.”
SON Tasks Auto Stakeholders to Embrace Standards for Global Competitiveness (This Day)
The Standards Organisation of Nigeria (SON) has tasked stakeholders in the auto industry to take advantage of standards to remain competitive and relevant especially as the Africa Free Trade Agreement (AfCFTA) is on the cards.
The Director General, SON, Mallam Farouk Salim, at a sensitisation programme for Auto Spare Parts and Machineries Dealers Association (ASPAMDA) in Badagry area of Lagos, said the operationalisation of AfCFTA would turn Nigeria and indeed the entire African continent to one huge market, he said AfCFTA would provide for Nigeria the competitive edge in trading with other neighboring countries’ auto and machineries dealers.
“We all must ensure that only products that comply with laid down Nigeria Industrial Standards are available for sale in this market. SON frowns at the practice of cloning successful brands by unscrupulous businessmen to make quick gains, depriving the trade mark owners of their benefits.” According to him, the SON Act 2015 empowers the agency to arrest and prosecute offenders, stressing that it would step up its ante to make it impossible for fakers to thrive.
NEPZA: Economic Zones Attracted $364.6m FDIs in 4 Years (This Day)
The Managing Director/Chief Executive, Nigeria Export Processing Zones Authority (NEPZA), Prof. Adesoji Adesugba, has disclosed that the country attracted $364.6 million in Foreign Direct Investments (FDIs) between 2020 and the first quarter of the year (Q1 2023).
Speaking at an interactive session with journalists, he said if given the necessary support, the scheme could transform the investment landscape within a short time, adding that the foreign capital inflows had led to the creation of over 30,741 jobs in the economy.
He said about $102.93 million was recorded from international exports, while N1.14 trillion came from the domestic market.
The NEPZA boss said the zone would help enhance the competitiveness of locally manufactured products as well as put an end to dumping in the country and boost employment generation.
He, however, stressed that although successes had been recorded, more work needed to be done to ensure the free zones are made attractive to investors.
Benin Can Boost Economic Transformation by Modernizing Road Networks and Economic Corridors (World Bank)
A renewed effort and increased investment in developing and modernizing the roads and ports network in Benin could help transform the country’s economy and the lives of its people, says the World Bank’s first-ever Benin Economic Update.
Titled “Taking Advantage of Benin’s Strategic Position by Investing in Economic Corridors”, the first part of the report analyzes the latest economic developments and provides a mid-term outlook for Benin. Annual growth is expected to hover around 6% over the medium term. While the macroeconomic outlook remains robust, there are vulnerabilities related to tighter access to international finance and uncertainty in aggregate demand, underscoring the importance of a credible fiscal consolidation path to ensure medium-term stability.
The second part of the report focuses on the potential for developing Benin’s transportation sector and economic corridors. It notes that Benin is strategically located in west Africa and serves as a gateway to landlocked neighboring countries, such as Niger and Burkina Faso. The country’s port of Cotonou is also the closest and fastest transshipment point to the port of Lagos in Nigeria, the largest economy in western Africa.
Trade seen growing as Afreximbank, Ghana develop railway corridor (Businessday Nigeria)
The cost of transportation is expected to reduce by 30 percent as African Export-Import Bank (Afreximbank) and Ghana Railway Company, the national railway operator of Ghana, on Friday signed a project preparation facility Head of Terms agreement and Pre-Mandate Letter to finance the development and implementation of an integrated 299-kilometer (“km”) standard gauge railway network that connects Ghana’s western corridor to the Port of Takoradi and provides an essential link to external markets.
The Bank will avail early-stage project preparatory funding to finance the preparation of bankable feasibility studies. The Pre-Mandate Letter appoints Afreximbank to perform certain tasks in advance of the project attaining bankability aimed at raising the debt facility amount, currently estimated at US$ 2.1 billion.
The Bank believes that pursuing railway investments along the continent’s trade corridors would expand existing capacities and create new routes, links and pathways for value-added goods to be transported from manufacturing and processing areas to regional and global markets, thereby promoting intra-African trade within the AfCFTA context. This is evidenced by new mining projects and expansion of existing mining projects being planned in the country that stand to benefit from the project through more efficient and competitive transportation of imports and exports thereby boosting trade, regional integration and overall economic development.
Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, said, “The Western Railway Corridor project is a vital transport network for Ghana, and Afreximbank’s support is in line with our commitment to help member countries address key trade-enabling infrastructure bottlenecks through private sector-led investments that will unlock significant pent-up demand for Ghanaian mineral and agricultural commodities in regional and international markets.
Infrastructure investment critical for success of AfCFTA (SAnews)
Deputy President Paul Mashatile says the success of the African Continental Free Trade Agreement (AfCFTA) depends on the investment in infrastructure in the areas of electricity generation, transportation, as well as freight and logistics distribution.
“This is because Africa’s trade integration has been hampered for decades by the ageing infrastructure and too many regulations which require reforms,” Mashatile said.
Addressing the All Africa Business Leaders Awards on Friday, the Deputy President said investing in infrastructure is crucial to unlocking the potential for Africa to experience growth at faster rates but more importantly, to ensure inclusive diversification.
“We must surely invest in infrastructure because it is a critical driver of success across Africa. It makes a substantial contribution to human development and poverty alleviation,” he said.
UBA partners with AfCFTA to invest $6bn to finance SMEs in Africa (The Ghana Report)
United Bank for Africa (UBA) Plc on Monday, June 19, signed an agreement with the Africa Continental Free Trade Area (AfCFTA) Secretariat to invest $6 billion as funding for African Small and Medium Enterprises (SMEs) within the next three years.
A breakdown of the $6 billion investment shows that a total of $1.2 billion has been budgeted for the year 2023; $1.9 billion for 2024 and $2.88 billion for 2025.
By this agreement, UBA to boost intra-Africa trade, will provide financial services in four main areas which are agro-processing, automotive, pharmaceuticals, and transport and logistics, to small and medium enterprises (SMEs) in all the 20 African countries where UBA operates.
UBA Group’s Deputy Managing Director, Muyiwa Akinyemi said, “We entered into this partnership because we see the future of intra-African payments developed by AfCFTA, which will ease payment constraints across 54 countries in Africa (with about 40 different currencies) powered by the Pan-African Payment and Settlement System (PAPSS).” Continuing, Akinyemi said, “However, we need to develop these businesses before we can talk about helping them trade, which is the strength of UBA, as we are vital in supporting SMEs, and with our presence in 20 African countries, we say your small business is big business.”
Ecobank, PAPSS partner on cross-border payments (IT-Online)
Ecobank Group and The Pan African Payment and Settlement System (PAPSS) have signed a Memorandum of Understanding (MoU) to facilitate settlement of Ecobank’s cross-border transactions, including the transactions of all its subsidiaries, through PAPSS.
Established by the African Export-Import Bank (Afreximbank) and the Africa Continental Free Trade Area (AfCFTA) Secretariat, PAPSS is a financial market infrastructure that provides a secure and efficient channel for processing cross-border payments, ensuring speed, affordable cost, and reliability in order to facilitate intra-African trade.
During the MoU signing ceremony T the 30th Afreximbank Annual Meeting (AAM), PAPSS also introduced the Commercial Bank Settlement Model, a new settlement model which offers the commercial banks a window to open and fund their own settlement accounts at Afreximbank and manage their own liquidity according to their banking needs.
By leveraging the capabilities of PAPSS, Ecobank affiliates in 33 countries with over 32-million customers, will streamline and expedite the transfer of funds while ensuring transparency and compliance under the Regulators supervision.
Manufacturers call out states for using EAC CET loopholes for cheap imports (The East African)
Manufacturers are worried about East African Community partner states’ frequent applications of stay of the EAC Common External Tariff on goods and foodstuff, saying it will lead to price distortion.
The EAC allows CET on certain products to enable the partner states to apply higher or lower import duty rates to protect local industries from competition arising from cheap imports or reduce the cost of inputs required by certain industries. But the application of stay by the partner states on a wide range of products has raised concerns among industrialists.
“When you apply for stay of CET on products that are readily available within the EAC, you are either creating a trade distortion, or protecting an inefficient producer vis-a-vis the region’s producers,” said John Kalisa, CEO of the East African Business Council.”For a stay of application to be justified you must demonstrate that there is a shortage of those products within the region.”
Kenya’s Treasury Cabinet Secretary Prof Njuguna Ndung’u said the stay Nairobi has applied for one year is for rice, imported iron and steel products, vegetable products (sic), baby diapers, leather and footwear products, paper and paper products, all which attract a 35 percent CET.
EAC urged to speed up sanctions against Partner States not paying contributions (The New Times)
With very limited contributions from Partner States to the East African Community (EAC), which are even in some cases delayed or not remitted, the realisation of deeper and wider regional integration is questionable, Members of the East African Legislative Assembly (EALA) have said.
To tackle the issue, they urged the region to expedite sanctions against Partner States who do not honour their contributions to the bloc.
While presenting the report on an analysis of EAC budget for the 2023/2024 fiscal year during an EALA plenary session in Tanzania on June 22, MP Kennedy Ayason Mukulia, Chairperson of EALA’s Committee on General Purpose, said the Committee noted that no effort has been made to sanction the non-compliant Partner States in terms of paying contributions to the bloc’s initiatives.
The United Nations Economic Commission for Africa Sub regional Office for Southern Africa (ECA SRO-SA) in collaboration with the SADC Business Council held a three-day Regional Meeting on Technology and Innovation for Micro, Small and Medium Enterprises (MSMEs) in Southern Africa, preceded by the presentation of TechniAfrica, a Technology and Innovation Platform for MSMEs for Southern Africa which remains to be operationalized.
The objectives of the two consecutive events were to stimulate discussions among key stakeholders on the role of technology and innovation for MSMEs, assess the major gaps in relation to innovation eco-systems, reflect on main policy reforms and promote networking and exchanges of experiences and best practices among MSMEs, the public and private sectors in Southern Africa.
To attain the above objectives, the meeting deliberated on draft study reports and survey results funded under two United Nations Development Account 13th tranche projects titled “Innovative approaches for MSME competitiveness to promote trade and inclusive industrialization in Southern Africa in the Post-COVID context” and “Global MSME Surge”.
Ministers responsible for Environment, Natural Resources and Tourism from the Southern African Development Community (SADC) have called for prioritisation of policies, projects, and activities on environment, natural resources and tourism in the region.
The call was made during the virtual meeting of the Ministers responsible for Environment, Natural Resources and Tourism which was held on 22 June 2023 to review progress on activities and projects supporting the implementation of SADC Protocols and strategies to support environment, natural resources and tourism sectors.
Ambassador Joseph Nourrice, the SADC Deputy Executive Secretary responsible for Corporate Affairs reiterated the urgent need for the SADC region to address challenges such as environmental degradation, climate change impacts, illegal harvesting of natural resources, and under-development of tourism, which are recurrent, pervasive and significantly affecting agriculture, infrastructure, human health, terrestrial and marine ecosystems as well as water resources.
African Union Private Sector Forum (AU)
The African Union Commission, has throughout the years worked closely with the private sector to define the significant role and great contribution by the Private sector in driving the economic development Agenda of the continent. The efforts are a demonstration of the African Union’s commitment towards enhancing the private sector capacity to contribute towards the realization of Agenda 2063 and be part of the global value-chain, for inclusive and sustainable growth in Africa.
The AU Commission is organizing the 14th African Private Sector Forum under the theme “Strengthening Public-Private Partnerships to accelerate trade and investments in Africa” focusing on how to enhance Public - Private Sector engagement for inclusive growth and sustainable development, relatedly, deepening regional and continental trade and investment towards the implementation of the African Continental Free Trade Area (AfCFTA).
India plans to revive trade deal with SACU (Mint)
Amid declining merchandise exports due to demand slowdown in the west, India is placing renewed focus on striking a trade deal with a union of five countries of Southern Africa that could give a leg up to exports of pharmaceutical products and automobiles, two people aware of the development said.
The resource rich Southern African Customs Union (SACU), a customs union among five countries of Southern Africa: Botswana, Eswatini, Lesotho, Namibia, and South Africa, is one of the largest suppliers of raw primary or semi-processed commodities. According to the ministry of commerce, five rounds of negotiations regarding a potential India-SACU preferential trade agreement have been held thus far. The first round of discussions took place in 2007 and talks stalled in 2010. However, reports indicated that both sides had agreed to revive the talks in 2020. According to persons aware of the matter, talks between both sides have made progress.
This comes as trade experts have pointed out that diversification of exports is crucial as 40% of India’s export orders come from just seven countries and hence are more susceptible to external shocks. Currently, US and Europe form nearly one-third of India’s merchandise exports and have driven outbound shipments in the last decade.
“SACU is a developing country union so it won’t have non-trade issues in the deal such as labor, gender and environment. So it will be relatively easier to complete negotiations. We can sign a FTA with them. There is a lot of complementarity between India and South Africa. We are importing coal, diamonds, gold, and iron ore,” first person aware of the development said.
The consequences of the Russia-Ukraine war on Cemac countries in 2022 (Beac’s review) (Business in Cameroon)
The Bank of Central African States (Beac) has presented its view on how the ongoing war between Russia and Ukraine has impacted the Cemac economies in 2022. In a recent economic and statistical bulletin, the institution observed a V-shaped impact resulting from the conflict.
On a good note, “the economic growth went from 1.8% in 2021 to 2.9% in 2022 thanks to a good impetus in the oil and gas sector in the region, despite a slight decline in the non-oil sector”. However, before the war started, Beac was expecting a 3.2% growth, meaning the war caused a loss of 0.3pts.
Although there has been an improvement in the prices of crude oil and natural gas on the international market, with positive financial repercussions for Cemac countries, demand was less vigorous. Beac points out that gross domestic demand has made a smaller contribution to Cemac growth in 2022, even though it remains the main driver of real growth in the region (2.1 points in 2022, against 7.4 points in 2021), with a slight decline in the contribution of private consumption (3.5pts in 2022, against 4.0pts in 2021) and that of public consumption and gross investment (- 1.1 points and - 0.4 points respectively).
Beac found, is an improvement in the public finances of Cemac countries as a result of “the upward trend in the prices of exported products (...), particularly crude oil”. Overall, the budget balance, including grants, reached 2.5% of GDP in 2022, compared with -1.2% of GDP in 2021. Before the start of the crisis, it was forecast at 0.5% of GDP, an increase of 2.0 percentage points.
Commodities at a glance: Special issue on phosphate (UNCTAD)
Phosphorus, like nitrogen and potassium, is an essential nutrient for plant growth, contributing to root development and maturation.
Phosphate fertilisers, which provide plants with phosphorus when it is lacking in the soil, therefore play an essential role in plant life. They help maintain a high level of agricultural productivity. Along with irrigation, high-productivity seeds and plant protection products, they are an essential component of food security.
However, phosphate fertilisers remain difficult to access in many developing countries. Costly to produce and transport, they are also complex to use, requiring precise agronomic knowledge of soils and plants.
These difficulties are particularly detrimental to the least developed countries, which do not always have the necessary resources in terms of investment and human capital to ensure wider access to these inputs.
Renewables growth did not dent fossil fuel dominance in 2022, report says (Engineering News)
Global energy demand rose 1% last year and record renewables growth did nothing to shift the dominance of fossil fuels, which still accounted for 82% of supply, the industry’s Statistical Review of World Energy report said on Monday.
Last year was marked by turmoil in the energy markets after Russia’s invasion of Ukraine, which helped to boost gas and coal prices to record levels in Europe and Asia.
The stubborn lead of oil, gas and coal products in covering most energy demand cemented itself in 2022 despite the largest ever increase in renewables capacity at a combined 266 gigawatts, with solar leading wind power growth, the report said.
France commits EUR 1 million to WTO Fisheries Funding Mechanism (WTO)
The government of France is contributing EUR 1 million (approximately CHF 969,957) to the WTO Fisheries Funding Mechanism to help developing members and least-developed country (LDC) members implement the landmark Agreement on Fisheries Subsidies adopted at the 12th Ministerial Conference in June 2022.
The funding mechanism for targeted technical assistance and capacity-building seeks to help developing and LDC members implement the Agreement on Fisheries Subsidies, as the new rules would involve adjustments to members’ legislative and administrative frameworks, transparency and notification requirements, and the enhancement of their fisheries management policies and practices. The mechanism is provided for in Article 7 of the Agreement.
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Government committed to supporting SEZs (SAnews)
Trade, Industry and Competition Deputy Minister Fikile Majola on Thursday reiterated his department’s commitment to enhancing support to Special Economic Zones (SEZs) which are important instruments for growing the economy.
Addressing the Special Economic Zones Chief Executive Officers’ Forum in Kempton Park on Thursday, he emphasised that the commitment of provincial governments was crucial in ensuring that the SEZs succeed in achieving the economic objectives that national government has set for them.
“There are currently around 15 projects that are at different stages of development across the different SEZs. Significantly, these are mostly expected to be operationalised before the close of the 2023/24 financial year, thus adding to the 190 that are already operational in the 10 designated SEZs.
“These SEZs are pillars of our economy and those that are not optimally operating are a disservice to our people,” Majola said.
Digitisation, sustainability pivotal to bolstering food & beverage industry (Engineering News)
There are various trends that are currently impacting the food and beverage (F&B) industry and digital automation and energy management company Schneider Electric has solutions that can assist to navigate this, with digital technology and sustainability highlighted as key to driving this industry forward.
This was noted during Schneider Electric’s Food and Beverage Innovation Day, held in Johannesburg, on June 21.
The first trend is around commodity prices, with these fluctuating depending on elements such as location, geopolitical tensions, where materials are sourced and inflation, besides others.
A second trend being observed is that with a new, younger generation entering the workforce, the culture of manufacturing is changing, and further, knowledge is being lost as the older generation leaves with this having not been institutionalised.
Zambia Wins More Time to Pay Its Debts (Bloomberg)
Zambia has won debt relief from its bilateral creditors, a huge breakthrough in an almost three-year saga since it became the first African country to default during the Covid-19 pandemic.
It also gives hope to other indebted nations from Ghana and Ethiopia to Sri Lanka and Pakistan.
The agreement, announced at a summit in Paris that aims to overhaul the global financial architecture to make it fairer to emerging nations, is the first major concession won by a developing country under the Group of 20 nations’ Common Framework.
Kenya’s sugar imports bill hits Sh24bn on low output (Nation)
The value of Kenya’s sugar imports hit Sh23.92 billion last year, a newly published document by the Agriculture Ministry shows, a pointer to the lucrative production investment opportunities in the domestic market. The country remains a net importer of sugar, mainly from the Common Market for Eastern and Southern Africa (Comesa), despite having the potential to produce and meet her domestic consumption and surplus for export.
“The country continues to rely on imports to bridge the deficit. For instance, in 2022, sugar valued at Sh 23.923 billion was imported. This is a drain to the country’s foreign exchange” the Agriculture Ministry said in the newly published policy document which doesn’t provide the comparative value of imports in previous years.
The industry has the potential of producing over 1.47 million tonnes of sugar which would meet the domestic demand and provide a sustained surplus for export to the Comesa region which is generally a net importing region.
“Due to industry inefficiencies, this capacity is currently underutilized,” the Agriculture ministry said.
Mozambique: Economy growing less than available natural resources – president (Macau Business)
Mozambique’s President Filipe Nyusi acknowledged on Thursday in Maputo that the country’s economy has grown below the natural resources available to it, advocating a focus on industrialisation to diversify the production base.
“We can grow more, and we should grow more,” Nyusi said, speaking at the opening speech of the 18th Annual Private Sector Conference (CASP), which brings together businesspeople, members of the government and representatives of national and international financial institutions.
The productive fabric and economic growth should reflect the quantity and quality of resources available to Mozambique, he added. In that sense, he continued, the country must focus on industrialisation, taking advantage of its agricultural, energy and water potential, as well as the logistics platform provided by its ports and road corridors.
“Mozambique today should be seen as a hub and logistics platform, not only as the gateway to the six landlocked countries of the SADC – Southern African Development Community SADC but also as the African Continental Free Trade Area, a market with around 1.3 million consumers,” he said.
Nyusi stressed that the Mozambican economy was following a path of notable growth, although far from its potential, with a Gross Domestic Product (GDP) of 4.1% by 2022.
What EAC plan to ditch dollar means for Kenya (The East African)
The East African Community (EAC) has stepped up the push for member states to adopt local currencies in trading with one another, in the latest push to drop the bullish US dollar that is hurting economies in the region.
David Ole Sankok, a Kenyan member of the East African Legislative Assembly (Eala), has tabled a resolution recommending the EAC use local currencies to boost cross-border trade.
Dr Kennedy Manyala, an economist who has worked at the EAC, says that the dollar has only been used where it can be obtained with ease.
The legislator’s recommendation to the EAC’s council of ministers and partner states adds to the push by emerging and frontier economies to dump the use of dollars in settling cross-border trade, in what is known as de-dollarisation.
Mr Sankok’s proposal echoes recent remarks by President William Ruto in address to the Djibouti Parliament urging African countries to consider settling cross-border transactions in their respective currencies instead of the dollar.
“Why is it necessary for us to buy things from Djibouti and pay in dollars? Why? There is no reason. And we are not against the US dollar, we just want to trade much more freely. Let us pay in US dollars what we are buying from the US,” said Dr Ruto.
EAC countries challenged on meeting agric targets (The New Times)
With only two years remaining until the deadline set by the East African Community (EAC) Member States to end hunger in line with the continental agricultural development plan, hunger and malnutrition are on the rise, Members of the East African Legislative Assembly (EALA) have said.
During a plenary session held in Arusha on June 21, the lawmakers expressed concern about this situation, and urged the EAC Member States to take firm action to address it.
To this end, EALA adopted the motion urging the EAC Council of Ministers and the Partner States to fast-track the implementation of the 2014 Malabo Declaration on Accelerated Agriculture Growth and Transformation of Shared Prosperity and Improved Livelihoods.
It was moved by MP Woda Jeremiah from South Sudan, who said it would help EAC “to attain food security and rational agricultural development.”
Political will needed to implement Africa free trade area (The Chronicle)
AFRICA needs the political will to collectively remove cross-border barriers and successfully implement the African Continental Free Trade Area (AfCFTA).
Implementation of the AfCFTA is the main focus of the 9th edition of the Africa Public Service Day commemorations underway in Victoria Falls under the theme: “The African Continental Free Trade Area (AfCFTA) requires a fit for purpose African Public Administration to succeed.”
Addressing delegates, the chairman of Public Service Commission in Zimbabwe Dr Vincent Hungwe said the opening up of borders and increasing mobility will assist in the cross-pollination of ideas, skills transfer and innovation which are critical to the Africa Agenda and reversing colonial educational and economic system.
He said public administration and management is going to be the foundation for creating inclusive and sustainable product and service value and supply chains that will underpin meaningful trade within the AfCFTA.
Accelerate Infrastructure Development To Promote Intra-Continental Trade, Says PMI (This Day Live)
Project Management Institute (PMI), has encouraged the African Union (AU) to accelerate infrastructure development that would promote intra-continental trade among the member states. The appeal was contained in a statement made available to the media in Lagos recently.
Highlighting the importance of infrastructure development in continental trade the Managing Director, Sub-Saharan Africa, PMI, George Asamani, stated that infrastructure is among the key elements essential to making the African Continental Free Trade Area (AfCFTA) work effectively.
Asamani said, “Developing and improving power, transport, and communications infrastructure and establishing efficient road, air, port, and rail networks are crucial for enabling seamless trade facilitation and promoting economic integration,”.
African nations call on G7 to form joint working committee to stem billions of illicit outflows (Engineering News)
African countries have called for the formation of a joint working committee with the G7, central banks and civil society to stop large sums of money being lost by the continent each year to illicit capital outflows.
The call was made on Friday at the two-day Summit for a New Global Financing Pact held in Paris, France, which started on Thursday.
It comes almost a decade after former South African President Thabo Mbeki sounded the alarm on the shocking scale at which Africa was losing-billions each year to illicit capital outflows.
Akufo-Addo said that stopping this illicit flow and bringing the money into play in the most impoverished continent could drastically reduce poverty and accelerate climate change goals. As a result, he said, African countries had called for the establishment of a committee to look into this illicit money flow.
Akufo-Addo said: We have proposed that the G7 establish a joint working committee to track and seek ways of stemming the flow of this money laundering while finding ways of ensuring that this money is reintroduced to the African fiscus.
Importance of empowering women and youth in trade highlighted at regional workshop (Namibian Economist)
The African Continental Free Trade Area – Southern Africa Development Community (AfCFTA-SADC) regional consultation workshop was recently held in Windhoek to address the challenges faced by women and youth in cross-border trade and explore opportunities in the digital economy.
During the opening of the workshop, Minister of Industrialisation and Trade, Lucia Iipumbu emphasized the importance of empowering women and youth to actively participate in trade and benefit from the African Continental Free Trade Area Agreement (AfCFTA).
“Women and youth face various challenges in trading across borders and are confronted by many barriers to trade, such as complex export procedures, intimidation, extortions, and harassment at borders, particularly in Africa. I believe the Protocol on Women and Youth in Trade should address the persistent challenges faced by women in trade and provide solutions in terms of better border governance and trade facilitation,” she said.
Experts convene to review upcoming African Women’s Report on costing SDG 5 (UNECA)
The United Nations Economic Commission for Africa (ECA) hosted an expert group meeting in Addis Ababa this week, bringing together policy specialists and academics to review its upcoming African Women’s Report on costing the Sustainable Development Goal (SDG) 5 for achieving gender equality and women’s empowerment. In 2015, countries adopted the 2030 Agenda for Sustainable Development along with its 17 goals, including SDG 5, which is considered fundamental to the overall progress on the agenda. However, the evidence presented at the meeting indicates that no country in Africa is currently on track to meet any of the goals by 2030. In addition, estimates from the African Centre for Statistics reveal that, at the current pace, gender equality and women’s empowerment in Africa will only be achieved by 2094.
Speaking at the meeting, Ms. Sweta Saxena, Chief of Staff and acting Director of the Gender, Poverty and Social Policy Division at ECA, said
that implementing measures to achieve gender equality commitments by 2030 requires countries to first understand the additional investments required and subsequently mobilise the necessary resources to finance such actions. Ms. Saxena continued: “In this report, ECA has endeavoured to demonstrate in a practical way and with examples and case studies, how to estimate the investments needed for interventions towards achieving gender equality and the empowerment of women and girls.”
The Government of Senegal, through the Ministry of the Economy, Planning and Cooperation, launched, on Thursday in Dakar, the work of the Regional Forum of West African Intergovernmental Organizations on “Promoting Regional Value chains and food security for strengthening regional integration and sustainable development in West Africa”.
The Director of the ECA/SRO-WA, Mr. Ngone Diop, stated that “the warning sign triggered in April by the Food Crisis Prevention Network (FCPN), with nearly 42.5 million people concerned by the food and nutrition crisis in the Sahel and West Africa during the hunger gap (June-August 2023), is a call out for us to take both immediate and medium- to long-term actions”.
To achieve it, continued the Director of the ECA/SRO-WA, “the ECA is recommending new financial resources mobilization and value chains development”.
According to the Resident Coordinator of the United Nations in Senegal, Mrs. Aminata Maiga, “By providing appropriate responses to these two issues, namely the promotion of value chains and food security, we will be helping to speed up the implementation of the 2030 and 2063 agendas, particularly by reducing poverty, achieving food security, promoting decent work and sustainable growth, inclusive and sustainable industrialization, and sustainable production and consumption”.
On the sidelines of the Summit for a New Global Financing Pact in Paris, African leaders, investors and development partners, including the African Development Bank Group, have highlighted their steadfast support for the Alliance for Green Infrastructure in Africa as it advances toward a first close of $500 million for green infrastructure projects in Africa.
“The Alliance will mobilize $100 million in grants for project preparation, $400 million in blended financing through grants, concessional resources, and commercial investments for project development,” Adesina said, explaining how the initiative will work.
Kenyan President William Ruto said Africa’s already low share of global energy investments had fallen sharply over the last five years. Africa’s cost of borrowing, which is eight times higher than other regions, was another challenge. “Let us have a different conversation,” Ruto said. Let us not have a conversation about us versus them, north versus south. Let us have a conversation of win-win.”
World leaders attending this week’s Summit for a New Global Financing Pact praised the African Development Bank for finding a solution that would enable rich countries to reallocate part of their Special Drawing Rights (SDR) to low-income countries through multilateral development banks. The technical solution preserves the asset reserve status of the SDRs and would unlock hundreds of billions for Africa.
Speaking at the pre-summit forum’s opening on Thursday, United Nations Secretary-General António Guterres said: “The African Development Bank has launched an initiative to channel SDRs to multilateral development banks, which would increase their impact five-fold—this initiative should be a source of inspiration.”
The French President said: “First, no country should have to choose between fighting poverty and protecting the planet. Second, each country must follow its own path because there is no single model. Third, we need to take on a public funding shock. And fourth, we need more from the private sector to mobilize a lot of money.”
Paris Summit: Commonwealth and OIF stress need for Vulnerability Index (The Commonwealth)
The Commonwealth Secretariat and the Organisation Internationale de la Francophonie (OIF) joined forces this week to convene a high-level side event during the Paris Summit for a New Global Financial Pact on June 22. The side event focused on the measures required to: ‘Take account of multidimensional vulnerability in the allocation of new development funding’.
The Paris Summit serves as a vital platform to deliberate on how to reform development financing and deliver more effective assistance to nations.
During the discussion, the panellists emphasised the urgent need for a global effort to swiftly implement new financing mechanisms for sustainable development that prioritise countries with the greatest need. These mechanisms should consider the structural vulnerabilities beyond GNI per capita.
To achieve this goal, all participants deemed it necessary to adopt a universal index reflecting various dimensions of a country’s structural vulnerability and to utilise it in the allocation of funding.
E-commerce negotiators continue to seek “landing zones” on text proposals (WTO)
“Let’s keep the momentum up”, stressed the co-conveners of the e-commerce negotiations — Japan, Australia and Singapore — at their latest meeting with WTO members participating in the negotiations from 19 to 22 June 2023. They urged negotiators to consider carefully how the initiative can achieve the objective of securing substantial results by the end of the year, using the remaining four rounds of negotiations to find common ground on various issues.
Trade Perspectives, by Xiangchen Zhang, Deputy Director-General (WTO Blog)
International trade is key to unlocking the potential of least-developed countries (LDCs) and enabling them to achieve their socio-economic development ambitions. To achieve the goals of the Doha Programme of Action for the Least Developed Countries for the Decade 2022-2031, it is also essential that LDCs increase their participation in international trade.
However, if LDCs are to reap the maximum benefits from trade — and from their membership of the World Trade Organization (WTO) — they must be more fully integrated into the multilateral trading system.
To achieve this, new ways for LDCs to engage proactively in WTO activities must be identified, and LDCs’ international partners must collaborate on LDC priorities and provide them with targeted support. A new collection of essays, titled “LDCs and the multilateral trading system”, sheds light on the current challenges facing LDCs and makes practical proposals on how LDCs can seize the opportunities provided by trade.
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SA tyre manufacturers commit to carbon net-zero by 2050 (Engineering News)
All four of South Africa‘s local tyre manufacturers have committed to achieve carbon neutrality by 2050.
Bridgestone South Africa, Continental Tyre South Africa, Goodyear South Africa, and Sumitomo Rubber South Africa – all members of the South African Tyre Manufacturers Conference (SATMC) – say they are making a collective effort to mitigate climate change.
“Climate change impacts us all and we are all demanding real action from each other,” says SATMC managing executive Nduduzo Chala.
“We are proud that SATMC and its member companies have responded to this call to take action with a range of measures aimed at reducing emissions, using energy responsibly, and cementing a circular economy to reduce and eliminate waste.”
Export: NQC promotes global awareness for goods production (Tribune Online)
The National Quality Council (NQC) is promoting stakeholder awareness of the implementation and adherence to specified standards required for the production of goods globally. This initiative aims to reduce the high rate of rejections faced by Nigeria in the international market.
Aboloma mentioned that countries like America, Europe, Asia, and some African nations that have promoted harmonized quality infrastructure are reaping the benefits with a significant influx of foreign exchange from unhindered exports.
According to a statement by Bola Fashina, the Chairman stressed that the NQC would promote industry access to affordable and globally acceptable conformity assessment services. The goal is for Nigerian-made products to be marketed under the motto: “Tested once, certified once, and accepted everywhere.”
Tunisia: Food trade deficit shrinks in May (ZAWYA)
Tunisia’s food trade deficit fell to TND 487.4 million in late May against TND 838.1 million during the same period last year, data released by the National Observatory of Agriculture (French: ONAGRI) show. This is due to higher olive oil exports (+ 29%) against a drop in grain imports (-16.3%) despite a faster growth in the imports of bran (+23.8%) and sugar (+126%).
The coverage rate of imports by exports stands at 85.6% against 76% during the first five months of 2022, knowing that Tunisia posted an 8.8% rise in the value of food exports compared to a 3.4% decline in the value of imports 4%.
Grain imports account for 54.7% of all food imports until the end of May 2023, against 63.2% during the same period last year. Purchases mainly include wheat (TND 1076 million), that is 58.3% of grain imports.
Business booms in Uganda, Rwanda border towns after controls lifted (The East African)
The business community at Katuna and Cyanika border posts in Kabale and Kisoro districts, respectively, have expressed joy after Rwandan authorities lifted travel restrictions on their nationals crossing into Uganda. The chairperson of the business community at Katuna border post, Mr Franko Korinako, yesterday said cross-border trade is now booming since the Rwandans freely cross into Uganda.
Although the Rwandan borders with Uganda were reopened in March last year after being closed for three years, Rwandan nationals were not being allowed to cross into Uganda unless they had paid Rwf5,000 Rwandan (about Ush15,000 - $4.37) each for a Covid-19 PCR test, something that many ordinary citizens could not afford. The Rwandans had also been stopped from buying household and food items from Ugandan border markets.
“The revival of cross-border trade between Uganda and Rwanda will not only boost the trade but also strengthen the social interactions that had been banned,” LC3 chairperson for Chyanika border post, Mr Erasmus Sanyu said.
EALA passes motion to expedite EAC single currency (The New Times)
The East African Legislative Assembly (EALA) on Wednesday, June 21, passed, with amendments, the motion to urge the Council of Ministers and partner states to use local currencies in all transactions in the East African Community (EAC) so as to boost regional trade.
MP Odongo George Stephen (Uganda) argued that “by passing this motion, the Assembly will have helped the EAC to boost volumes of trade and services among EAC partner states, promote and give confidence to the local community to participate in inter-country trade, and save billions charged as exchange fee by third party.”
He added that it would be a precursor of the EAC single currency in line with the EAC Monetary Union.
SADC reviews progress on implementation of initiatives enhancing Financial Inclusion in the Region (SADC)
The Southern African Development Community (SADC) Financial Inclusion Subcommittee has reviewed progress on the implementation of Financial Inclusion initiatives in the Region, including the development of the new five-year SADC Strategy on Financial Inclusion and Small to Medium Enterprises (SMEs) Access to Finance at its ordinary meeting held in Johannesburg, South Africa, from 13th to 15th June 2023.
The Draft Strategy on Financial Inclusion and SMEs Access to Finance envisages an inclusive, stable and innovative SADC financial system that empowers individuals and businesses to access and use domestic and international capital and to contribute to industrialisation, inclusive growth and resilient, and sustainable economic well-being. This vision contributes to the overarching SADC Vision 2050 for a peaceful, inclusive, competitive middle to high income industrialised Region, where all citizens enjoy sustainable economic well-being, justice and freedom.
The meeting deliberated on the Draft Financial Inclusion Gender Action Plan which provides strategic direction to Member States in realising the objectives of the SADC Strategy for Financial Inclusion and SMEs Access to Finance.
Standard Bank and PAPSS Partner to Enhance Cross-Border Payment Across Africa (BusinessGhana)
Standard Bank of South Africa Limited and The Pan African Payment and Settlement System (PAPSS) have signed a Memorandum of Understanding (MoU) to facilitate settlement of cross-border transactions of the Group, including the transactions of all their subsidiaries through PAPSS. The MoU was signed on Monday, 19 June 2023 during the opening ceremony of the 30th Afreximbank Annual Meeting (AAM) held in Accra, Ghana
PAPSS is financial market infrastructure that provides a secure and efficient channel for processing cross-border payments, ensuring speed, affordable cost, and reliability in order to facilitate intra-African trade.
By leveraging the capabilities of PAPSS, Standard Bank affiliates in more than 20 countries, will streamline and expedite the transfer of funds while ensuring transparency and compliance under the Regulators supervision. Additionally, the partnership aligns with the African Union’s vision of promoting intra-African trade and economic integration through enhanced financial connectivity. By leveraging their combined expertise, Standard Bank of South Africa and PAPSS are poised to contribute to the growth and development of the African economy.
Africa energy forum opens in Kenya (New Era)
The 25th edition of the Africa energy forum opened in the Kenyan capital of Nairobi Tuesday with delegates renewing the call for greater uptake of clean sources of energy to secure a climate-resilient future for the continent. Kenyan president William Ruto opened the forum that has gathered senior policymakers, industry executives, investors, researchers and innovators to discuss energy security in Africa.
Ruto said securing a greener, prosperous and resilient future for Africa calls for the optimal harnessing of the continent’s vast renewable energy sources like hydropower, geothermal, solar and wind. He said that by investing in cross-border energy projects, African countries will bridge the access gap that has stifled industrialization, poverty alleviation and social cohesion.
The four-day forum, held under the theme, ‘Africa for Africa’, will focus on strategic themes including scaling-up renewables uptake, breaking down barriers to green energy transition and positioning Africa as a hydrogen powerhouse.
The African Union (AU) Commission, in collaboration with the Government of the Republic of Rwanda, is convening the Second Extraordinary Session of the Conference of States Parties (CoSP) to the African Medicines Agency (AMA) Treaty from 19-20 June 2023 in Kigali, Rwanda. The effective operationalisation of AMA is envisioned to enhance the capacity of State Parties and the African Union (AU) recognised Regional Economic Communities (RECs) to regulate medical products and technologies to improve access to quality, safe and efficacious medical products on the continent.
“A more robust, harmonised drug regulatory environment, including cooperative commercial authorisation of medicines developed by African pharmaceutical companies, as envisioned by the AMA, is an integral part of a well-functioning ecosystem for health vital to health security, universal health coverage, and healthy populations... The AMA can help grow Africa into a resilient manufacturing powerhouse bringing African solutions to impeding socioeconomic challenges, which will boost the Africa Continental Free Trade Area (AfCFTA), unifying AU Member States. I encourage collective effort from all AU Member States to operationalise AMA,” noted H.E. Amb. Minata Samate Cessouma, Commissioner for Health, Humanitarian Affairs and Social Development, African Union Commission.
Least developed countries striving to embrace Fourth Industrial Revolution (UNESCO)
Growth in least developed countries in scientific publishing on cross-cutting strategic technologies such as artificial intelligence & robotics, energy, bioinformatics and materials science outpaced that of more developed countries between 2011 and 2019, according to the UNESCO Science Report (2021).
Least developed countries are embarking on the same transition to ‘green’ and digital societies as more developed countries, in order to achieve their development goals, including poverty reduction and universal access to energy and Internet. This dual transition is a vital element of their industrialization strategies but LDCs face a major challenge in keeping up with the rapid pace of technological progress.
Carry-over effects of Covid-19 worsen Africa’s debt repayment, says head of AFDB (News24)
The president of the African Development Bank Group (AFDB), Dr Akinwumi Adesina, says Africa’s external debt will, by next year, have gone up by 2.65% due to the carry-over effects of the Covid-19 pandemic. He was speaking to The Paris Club, a group of officials from key creditor countries tasked with finding coordinated and long-term solutions to debtor countries’ payment challenges.
So far, Africa’s external debt is R20.163 trillion (US$1.1 trillion), and by next year, the projection by the AFDB is R20.71 trillion.
Over the past 10 years, the structure of Africa’s debt has changed dramatically. “While bilateral debt represented 52% of total debt in 2000, this declined to 25% by 2021; commercial debt’s share of total debt increased from 17% in 2000 to 43% in 2021. “This trend was spurred by the very low global interest rates, with investors looking for yields in emerging markets,” said Adesina.
Macron hosts Chad, Gabon leaders ahead of ‘Summit for a New Global Financing Pact’ (Africanews)
French President Emmanuel Macron received, Wednesday (June 21), his counterpart from Chad, Mahamat Idriss Deby Itno for talks, on the eve of the so-called summit for a New Global financial Pact. Restructuring debt and reducing poverty by getting the UN 2030 Sustainable Development Goals targets back on course will top the agenda.
Financial leaders will participate as well as activists from around the world. All, will seek ways to overhaul the world’s development banks like the International Monetary Fund (IMF) and the World Bank and help them operate in the face of the climate crisis which has further fragilized developing nations.
Experts are expected to announce Thursday that the pledge to provide poor nations with $100 billion in aid each year to tackle global change is estimated to be met for the first time this year. First made in 2009 and reaffirmed at the 2015 Paris climate summit, the promise had never been fulfilled.
Financial system must evolve in ‘giant leap towards global justice’: Guterres (UN News)
Speaking at the Paris Finance Summit, Mr. Guterres said many African States were spending more on debt repayments than on desperately needed healthcare, and that over 50 countries were either in default or “dangerously” close to it.
The UN chief called for a debt relief mechanism that supports payment suspensions, longer lending terms and lower rates to make borrowing more affordable for poorer nations, as well as increased access to liquidity for developing countries via the International Monetary Fund’s Special Drawing Rights. Mr. Guterres also repeated his urgent call to end fossil fuel subsidies and increase climate adaptation funding for vulnerable countries.
“Taken together, these steps would help to beat poverty and hunger, uplift developing and emerging economies, and support investments in health, education and climate action,” he said, stressing that the measures would enable a “giant leap” towards global justice.
UK announces climate partnerships with Africa and the Caribbean (GOV.UK)
Speaking at the Summit for a New Global Financing Pact in Paris today (22 June), UK Minister for Development and Africa Andrew Mitchell will announce that UKEF has started discussions with 12 partner countries in Africa and the Caribbean to add Climate Resilient Debt Clauses (CRDCs) to its new and existing loan agreements.
The clauses allow governments to delay their debt repayments and free up resources to fund disaster response and recovery, with the first UK-led CRDCs expected to go live in the coming months.
Minister for Development and Africa, Andrew Mitchell, said: Developing countries face painful trade-offs between rebuilding their communities and making debt repayments in the wake of climate shocks. The partnerships with Africa and the Caribbean I’m announcing today are a milestone towards reducing these pressures, with Climate Resilient Debt Clauses providing relief for those countries hit hardest by extreme weather events. Allowing for a temporary pause in debt repayment is important because it gives affected communities the breathing space they need to focus on the urgent task at hand: recovery.
IMF Managing Director Remarks at the Summit for a New Global Financing Pact (IMF)
The Food and Agriculture Organization of the United Nations (FAO) has welcomed the approval by UN member states of a landmark legally binding agreement, under the UN Convention on the Law of the Sea, for the conservation and sustainable use of marine biological diversity in international waters, covering nearly two-thirds of world’s ocean.
FAO is set to support its Members in implementing the accord, often referred to as the “High Seas Treaty”, on safeguarding Marine Biodiversity of Areas Beyond National Jurisdiction (BBNJ), which has been under discussion for nearly two decades and was approved at an intergovernmental conference in New York on 19 June after 5 negotiating sessions.
Annual Renewable Power Must Triple by 2030 (IRENA)
In the first volume of the World Energy Transitions Outlook (WETO) 2023 released today, the International Renewable Energy Agency (IRENA) identifies the way forward to immediately course correct the 1.5°C climate pathway. The report calls for raised global ambition in renewables deployment, enabled by physical infrastructure, policy, and regulations, and underlining institutional and workforce capabilities.
The WETO 2023: 1.5°C Pathway positions electrification and efficiency as key transition drivers, enabled by renewable energy, clean hydrogen, and sustainable biomass and tracks implementation across all energy sectors. According to the latest edition, some progress has been made, mainly in the power sector with record additions in global renewable capacity of 300 gigawatt (GW) in 2022. However, the gap between what has been achieved and what is required continues to grow.
More ambitious renewable energy targets are needed; the world must add an average of 1,000 GW of renewable power capacity annually by 2030, as well as significantly increase the direct use of renewables in end-use sectors. With the first Global Stocktake concluding at COP28 in the UAE, WETO provides much-needed clarity on priority actions in the coming years.
The State of Commodity Dependence 2023 (UNCTAD)
A country is dependent on the export of commodities (or “commodity-dependent”) when its merchandise exports are heavily concentrated on primary commodities. The source of commodity dependence can be linked to a country’s persistent or structural conditions, such as its resource endowment and factor composition, institutional framework, geographic situation, history among other factors.
It is important to monitor and analyse the evolution of commodity dependence, as this dependence has been found to have negative implications, in different ways, for a country’s welfare and development.
First members to formally accept Fisheries Subsidies Agreement urge others to follow suit (WTO)
“The Agreement is a tangible leap forward in the race to preserve our ocean and its precious living resources. However, the Agreement’s benefits will take hold only when WTO members implement its provisions,” Deputy Director-General Angela Ellard said in her opening remarks, noting that formal acceptances from two-thirds of all 164 WTO members need to be secured for the Agreement to enter into force.
“We are aiming to secure this agreement’s entry into force by the 13th Ministerial Conference next February in Abu Dhabi. This urgency is for the sake of ocean sustainability, which is an important matter for all WTO members. Indeed, all of our members depend on a sustainable source of fish and on a healthy ocean ecosystem, whether they boast a long coast or whether they are landlocked,” DDG Ellard said. “The good news is that we have received 10 instruments of acceptance and therefore are about one-third of the way there.”
DDG Zhang calls on least developed countries to “strategize on their trade priorities” (WTO)
“We are well aware that LDCs’ participation in global trade remains below 1 per cent,” the Chair of the Sub-Committee on LDCs Ambassador Erik Brøgger Rasmussen (Denmark) stressed. “It is our shared responsibility to map out what more the international community can achieve to support a greater integration of LDCs into the multilateral trading system. An evolving trading landscape opens new horizons, offers new trade opportunities and brings new hope for people living in LDCs and beyond,” he said.
DG Okonjo-Iweala to business leaders: We must push for re-globalization and reform (WTO)
Rising geopolitical tensions and the constant crises of recent years — the COVID-19 pandemic, the war in Ukraine, climate shocks and the resulting disruptions to trade — have sparked questions about whether the multilateral trading system still works, the Director-General told the gathered business leaders.
“My answer is: Yes, the system works. Yes, parts of it need to be fixed. We need to fix what needs fixing. We don’t need to throw the baby out with the bathwater,” she said. “The WTO has made things better for business,” the Director-General said, citing the Information Technology Agreement eliminating tariffs on almost USD 3 trillion worth of trade, the Government Procurement Agreement opening up more than USD 1.7 trillion in annual public contracts to competition from firms in participating members, and the Trade Facilitation Agreement cutting red tape and making it cheaper and faster to move goods across borders.
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R4.5 Billion Investment Represents a Change in Minerals Beneficiation (Department of Trade, Industry and Competition)
The Deputy Minister of Trade, Industry and Competition, Ms Nomalungelo Gina says the R4.5 billion investment by Nyanza Light Metals and East China Engineering Science and Technology represents an opportunity that South Africa and native Africans can change the resource curse that Africa has been known for, which is being the net exporter of raw materials from gold, diamond, platinum, iron ore and many miners endowment, including titanium.
According to Gina the minerals endowments the continent has, must be beneficiated in Africa and be exported as value added goods. She said Nyanza Light Metals represents that desirable direction of downstream beneficiation efforts.
Survey reveals alarming trends in the SME road freight sector (Engineering News)
Sixty-eight per cent of small and medium-sized road-freight companies have inadequate vehicle maintenance programmes. This neglect of proper maintenance increases the risk of mechanical failures, leading to accidents and disruptions in supply chains.
This was one of the findings of an online survey conducted by JC Auditors (JCA) within South Africa‘s small and medium-sized enterprise (SME) road-freight sector.
“It also has a significant economic impact, especially when considering that the last Road Traffic Management Corporation report indicated the cost of crashes to be R142-billion, or 3.4% of gross domestic product.”
MPs demand scrapping exemption on imported crude palm oil (Tanzania Daily News)
Minister for Finance and Planning, Dr Mwigulu Nchemba has dropped a hint on plans for East African Community Common External Tariff (EAC CET) on scrapping of imported crude palm oil tariff. He said in the National Assembly on Tuesday that the government has heard members of Parliament’s concerns over plans to exempt CET for imported crude palm oil.
Presenting government’s budget in the House last week, Minister Nchemba announced that the government planned to revert back to EAC CET rate of 0 per cent, instead of 25 per cent on Crude Palm Oil (CPO) to protect consumers’ welfare against skyrocketing prices henceforth enhance economic growth.
Members of Parliament expressed concerns over the plan, saying that will discourage sunflower farmers who had bumper harvest this year.
EAC still top destination for Uganda’s exports (Monitor)
The East African Community was top destination for Uganda’s exports in April 2023, accounting for 39.3 percent of the total market share.
In the performance of the economy report for May 2023, the Ministry of Finance noted Kenya, Congo and South Sudan were the top three destinations of Uganda’s exports to EAC, taking up 35.7 percent, 25 percent and 21.3 percent, respectively.
“Some of the top earning export commodities to Kenya during the month were animal products particularly day old chicks, milk, maize, fermented black tea and sugar,” the report said.
“Increase in exports of mineral products follows the resumption of gold exportation that was on a halt the previous financial year,” the report reads in part, noting, that merchandise export receipts, however, declined to $538.8m (Shs2 trillion) from $681m (Shs2.5 trillion) in March, representing a 20.9 percent decline due to lower receipts from exports of coffee, mineral products and maize.
Egypt’s trade deficit halved in March as wheat imports drop 42% (Ahram Online)
The trade deficit dropped to $1.9 billion in March 2023, compared to $3.8 billion in the same month a year earlier, according to data released by the Central Agency for Public Mobilisation and Statistics (CAPMAS).
CAPMAS said that the decline happened in spite of a 34.6 percent shrinkage in exports, which declined to $3.75 billion in March, down from $5.7 billion a year earlier. During March 2023, Egypt’s exports of natural gas, fertilizers and crude oil plummeted by 67.9 percent, 54 percent, and 50.5 percent on a yearly basis, respectively. Ready-made clothes exports decreased by 25.3 percent in the same period.
However, exports of fresh fruits inched up 0.7 percent annually in March, while exports of bakeries and prepared foods soared 23.2 percent.
Senegal’s economic growth slowed in 2022, against a backdrop of rising world commodity prices, says the World Bank in its 2023 Senegal Economic Update.A decline in private investment and exports, as well as a contraction in the agricultural sector and industrial production, are at the root of this slowdown. The result is a deceleration in real GDP growth in 2022 of 4.2%, after a strong recovery post COVID 19 in 2021 at 6.5%.
“The country’s growth remains resilient despite multiple crises, and the macroeconomic outlook is favorable. However, this growth needs to be more inclusive, given the inflation that has accentuated poverty in 2022”, said Keiko Miwa, World Bank Country Director for Cabo Verde, Gambia, Guinea-Bissau, Mauritania, and Senegal.
Eswatini to Host the 8th SACU Summit (SACU)
His Majesty King Mswati III of the Kingdom of Eswatini and Chairperson of the SACU Summit will be hosting the 8th SACU Summit of Heads of State or Government on the 29th June 2023, in Ezulwini, Eswatini.
The SACU Summit will be attended by the Heads of State or Government and representatives of SACU Member States being the Kingdom of Eswatini, the host; the Republic of Botswana; the Kingdom of Lesotho; the Republic of Namibia; and the Republic of South Africa.
The 8th Summit will consider progress being made on the implementation of the SACU Strategic Plan.
Professor Ricard Hauman Professor Ricardo Hausmann, Founder and Director of Harvard’s University Growth Lab will present to the Summit on the theme ”SACU Industrialisation Opportunities through Improving Economic Complexity.”
Regional MPs tell EAC leaders to lower flight costs (The New Times)
The cost of air travel within the East African Community (EAC) region is still very high, making flying more of a preserve for those who are relatively well-off, the regional parliament has concluded. It urged the EAC Member State leaders to lower these costs to make travel affordable for citizens.
The East African Legislative Assembly (EALA) made the recommendation on June 20, in Arusha, as it adopted the report of its Committee on Communication, Trade, and Investment on the assessment of the Civil Aviation Safety and Security Oversight Agency (CASSOA)’s performance.
How sub-Saharan Africa can scale trade finance amid hard currency challenges (Businessamlive)
Sub-Saharan economies have for a long time been plagued by foreign exchange shortages, especially against the US dollar, fanning inflationary pressures across the continent as import prices continue to surge. This has left many policymakers across the continent with difficult choices on how to overcome foreign currency liquidity challenges, promote trade finance, and foster sustainable economic growth in the region.
According to industry experts, currencies play a major impact on how trade is conducted across borders globally and Changes in currency exchange rates affect international trade by increasing or decreasing exports and imports.
Gerald Ndosi, head of trade coverage at Bank One, a Mauritius-based full service commercial bank, noted that commodity dependence can affect the volume of dollars available in African markets, as many countries in SSA heavily rely on commodity exports, such as crude oil, minerals, and agricultural products.
“Fluctuations in commodity prices, which are often denominated in US dollars, can lead to revenue volatility, and affect the availability of US dollars in the local markets,” he added.
Developing value chains in West Africa to take advantage of the AfCFTA (UNECA)
The Government of Senegal, through the Ministry of Trade, of Consumer and Small and Medium-Sized Enterprises, have launched the Expert work Group Meeting in Dakar on Tuesday for examining the Report of the Study on “The Opportunities of Regional Value Chains in West Africa in the context of the African Continental Free Trade Area (AfCFTA )”.
The Director of ECA/SRO-WA, Ngone Diop affirmed that the multifaceted crises such as the Covid19 pandemic, the war in Ukraine and the climate crisis have slowed down or even annihilated the development efforts of the countries in the West African sub-region as shown by the deceleration of economic growth estimated to an average of -2% in 2020, compared to 3.4% in 2019”.
“In response to these worrisome trends, the positioning of West African economies in value chains, through tariff and non-tariff disarmament, should be an integral part of a more comprehensive approach to the integration of production and trade sectors in the AfCFTA,” explained Ngone Diop.
However, continued the Director of BSR-WA/CEA, “It is necessary to identify and prioritize regional value chains capable of positioning the region as a production and a preferred trade center, competitive within the “single African market”.
Afreximbank champions more intra-African trade at 2023 Annual Meetings opening (Ghana News Agency)
The 2023 Annual General Meetings of the African Export-Import Bank (Afreximbank) opened in Accra on Sunday, with speakers urging Governments to increase efforts to boost intra-African trade and regional integration. That, the speakers said, would contribute to Africa’s recovery process, engender stable economic growth, create employment for its citizens, and reduce poverty on the continent.
Dr Ernest Yedu Addison, Governor of the Bank of Ghana told the gathering that the time had come to reflect on how the continent could meaningfully contribute to Africa’s recovery process after the pandemic. He stressed the need for economies to speed up intra-African trade and improve Africa’s trade performance in the global marketplace through the creation of a single market for goods and services. Dr Addison said Africa must also promote industrial development through diversification and regional value chain development and the Continent.
Mohamed Ahmed Maait, Minister of Finance of Egypt and Chairman of the Afreximbank Annual Meetings, who was represented by Gamal Negm, Deputy Governor of the Central Bank of Egypt, asked Africans to work collaboratively towards finding integrated solutions to the new challenges confronting the continent.
“If trade barriers were eliminated but there was no trade finance, all the efforts would come to nothing. At the same time, if trade finance was available but trade barriers persisted and prevented trade, then all the efforts would still have been wasted,” said Wamkele Mene, Secretary-General of the AfCFTA Secretariat.
Afreximbank launches Africa Trade Gateway, a single window for digital services (Afreximbank)
The African Export-Import Bank (Afreximbank) yesterday in Accra launched the Africa Trade Gateway (ATG), a suite of five digital platforms that have been designed as a single window to enable the Bank better deliver on its mandate by providing critical services to support and promote African trade and the implementation of the African Continental Free Trade Agreement (AfCFTA).
Launched by Mrs. Kanayo Awani, Executive Vice President, Intra-African Trade Bank, of Afreximbank on the sidelines of the ongoing 30th Afreximbank Annual Meetings (AAM2023), the gateway digital ecosystem comprises the MANSA due diligence platform, the Pan-African Payment and Settlement System (PAPSS), the TRADAR Club, the Africa Trade Exchange (ATEX) and ATG Connect.
Addressing guests at the launch, Mrs. Awani said that Afreximbank’s digital evolution was part of its deliberate strategic response to address Africa’s key challenges to accelerate the pace of development and foster economic prosperity for Africans using and applying digital technologies and business models.
Global development financiers attending this year’s Organisation of Petroleum Exporting Countries (OPEC) Fund’s forum in Vienna, Austria, have pledged a strong commitment to remodel their investments to support green projects at scale.
African Development Bank Group president Akinwumi Adesina called for new ways of project preparation and de-risking of projects to mobilise private sector investment at scale for sustainable development.
“We’ve got where the private sector is. We’ve got US$ 145 trillion of assets under management (and) by 2026 it’s going to be there… but the issue here is that we need new ways of aggregation to prepare the projects, to de-risk the projects and lower the transaction cost for those deploying capital,” Adesina reiterated.
“It [the Africa Investment Forum] has become today the premier investment platform to do anything on investment in Africa, and in the last four years, we have been able to leverage about US$ 142 billion of investment interest into energy, water and sanitation, infrastructure, and transport corridors,” Adesina said.
He added that the African Development Bank and its partners are also creating opportunities for the private sector to invest in agriculture through special agro-industrial processing zones, which are being established across the continent.
Annual clean energy investments in emerging and developing economies will need to more than triple from USD 770 billion in 2022 to as much as USD 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 a new report released today by the International Energy Agency (IEA) and International Finance Corporation (IFC).
The report, Scaling Up Private Finance for Clean Energy in Emerging and Developing Economies, shows that public investments alone would be insufficient to deliver universal access to energy and tackle climate change. Increased public funding can be used most effectively in partnership with private sector capital to reduce project risks – a concept known broadly as blended finance. According to the report, two-thirds of the finance for clean energy projects in emerging and developing economies (outside China) will need to come from the private sector. Today’s USD 135 billion in annual private financing for clean energy in these economies will need to rise to as much as USD 1.1 trillion a year within the next decade.
Climate Finance: Developed countries ready to fulfil $100 billion pledge by year end (Premium Times Nigeria)
As France prepares to host world leaders at a global financial summit seeking to reconfigure global financial systems, sources in the French government say developed countries will be able to, by year end, deliver on the $100 billion climate financing pledge of 2020.
The financial summit hosted by France seeks to establish a system that will be more responsive, just and inclusive. A system that will fight inequalities, finance the climate transition, biodiversity protection, and move closer to achieving the United Nations Sustainable Development Goals (SDGs).
The OECD in its most recent analysis (2022) put the figure mobilised by developed countries in 2020 at $83.3 billion for climate finance. This is realised from a range of sources including bilateral public, multilateral public, export credit and the private sector.
The president of the African Development Bank Group (AfDB), Akinwumi Adesina, in May, hinted that Africa will need $2.7 trillion to upscale climate change adaptation by 2030. Mr Adesina made this known at the AfDB annual meeting themed: “Mobilising private sector financing for climate and green growth in Africa,” held in Sharm El Sheikh, Egypt. “Africa is being shortchanged by climate finance. Africa is choking. Africa will need $2.7 trillion by 2030 to finance its climate change needs,” Mr Adesina said. Despite being the world’s lowest emitter of greenhouse gases, Africa is one of the worst hit by climate change in the world.
List of 32 African countries to benefit from the UK’s new trade scheme (Business Insider Africa)
According to the UK’s government official website, the scheme dubbed, The Developing Countries Trading Scheme (DCTS) entered into force on 19 June 2023 and replaced the UK’s Generalised Scheme of Preferences (GSP). The DCTS is a simpler and more generous preferential trading scheme that has been designed to boost trade with developing countries in order to support their development.
Nigel Huddleston, UK’s Minister of International Trade, unveiled the program during a trip to Bole Lemi, Ethiopia’s largest industrial business park.
“It will create opportunities for businesses around the world, supporting livelihoods, creating jobs, and diversifying local and international supply chains. It will also benefit UK businesses and consumers by lowering import costs on a whole range of products,” Huddleston said.
The DCTS applies to 65 countries that fall under one of the following categories, least-developed countries (LDCs) as defined by the United Nations low-income and lower-middle-income countries as defined by the World Bank. Below are the African countries set to benefit from this scheme:
Brexit boost for UK after court refuses attempt to wreck Morocco trade deal (Express.co.uk)
Former cabinet minister Ranil Jayawardena has hailed an Appeal Court ruling which has confirmed that UK trade deals can no longer be interfered with by international organisations post Brexit. The challenge had been brought because of an attempt by separatists to breakaway from Morocco and the ruling in effect also confirmed the integrity of the north African nation’s borders.
The court ruling last month, dismissed a challenge by an international NGO, The Western Sahara Campaign (WSCUK) to the invalidate the Association Agreement between Morocco and the United Kingdom which has boosted trade between the two countries by 50 percent since 2021.
However, importantly, it confirmed that trade deals are a matter between two sovereign states and cannot be interfered with by international organisations post Brexit.
Global trade growth returns but outlook for 2023 is poor (UNCTAD)
During the first quarter of 2023, trade growth was positive for both goods and services, according to UNCTAD’s latest Global Trade Update published on 21 June. After the downturn in the second half of 2022, world merchandise trade rebounded in both volume and value.
Over the first three months of 2023, trade in goods went up by 1.9% from the last quarter of 2022, adding about $100 billion. Global services trade also increased by about $50 billion, up by about 2.8% compared to the previous quarter.
For the second quarter of 2023, the UNCTAD nowcast suggests a slowdown in global trade growth, pointing to recently downgraded world economic forecasts and factors such as persistent inflation, financial vulnerabilities, the war in Ukraine and geopolitical tensions.
“Overall, the outlook for global trade in the second half of 2023 is pessimistic, as negative factors dominate the positive,” the report says.
Trade and Development Board, seventieth session: High-level segment (UNCTAD)
Statement by Rebeca Grynspan, Secretary-General of UNCTAD
Around 3 billion people, or 40 per cent of our global population, reside near coastlines. Our oceans are treasure troves of assets such as fisheries, shipping lanes, tourism that are estimated to be worth at least $24 trillion. According to UNCTAD, the value of global exports in ocean-based goods and services was $1.3 trillion in 2020, which represents about 6 per cent of global trade that year. The blue economy is therefore an important part of any development strategy.
But, as we convene today, we must recognize the plight that climate change poses to the blue economy, affecting food production, increasing natural disasters, decreasing fisheries productivity, and causing ocean acidification, among other challenges. The brunt of these effects is borne by countries and communities that have historically contributed minimally to greenhouse emissions and are under-equipped for adaptation. This is where climate justice takes center stage.
But we must be in this together. We must act with speed to make the blue economy resilient to climate change, but we must be aware of the unforeseen and differentiated impacts that our policies can have on the most vulnerable countries. We need to ensure the most vulnerable have access to the right technologies, resources, and capacities, not doing so will endanger the livelihood of 150 million people who depend on the ocean for sustenance, but also millions more engaged in carbon-intensive export sectors who might suffer from market-access obstacles.
This is why trade is so important. Trade can bolster technology transfer and provide access to environmental goods and services, which are essential to the low carbon transition.
last April, UNCTAD launched the Trade and Environment Review 2023, calling for a “Blue Deal” to increase investment in sustainable ocean-based goods and services, and to ensure that action is global, fair, and multilateral.
we also see immense potential in South-South Trade initiatives such as the Global System of Trade Preferences among developing countries (GSTP) for creating low-carbon markets and building resilient value chains.
Ukraine war: Guterres calls for continuation of ‘vital’ food and fertilizer agreement (UN News)
Russia confirmed that for 60 days it would continue to be a part of the Initiative and the complementary Memorandum of Understanding on food and fertilizer exports from Moscow, in late May – but the deal in effect expires on 17 July.
UN chief António Guterres said in a statement issued by his Spokesperson that food exports via the Black Sea have fallen from a peak of 4.2 million metric tonnes in October last year to just 1.3 million tonnes last month, the lowest volume since it came into operation. Mr. Guterres called on the parties to “accelerate operations and urges them to do their utmost to ensure the continuation of this vital agreement”.
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Mpumalanga Businesspeople Confident African Continental Free Trade Agreement will Improve Ease of Doing Business (Department of Trade, Industry and Competition)
The Mpumalanga businesspeople who attended the African Continental Free Trade Agreement (AfCFTA) awareness workshop in Mbombela last Thursday are confident that the agreement will provide them with export opportunities across the continent and improve the ease of doing business to address the challenges in order to enable them to trade effectively.
According to the President of National African Farmers Union in Mpumalanga, Mr Jabu Mahlangu, one of the biggest challenges that farmers are faced with is at the Lebombo border post where there is an estimated 1 500 trucks per day crossing to and from South Africa. He said there is a system blockage at the border.
“Some of our members export fresh produce that cannot be kept in trucks at the border for the whole day. The cost of keeping the machinery operational at the border gate is extremely high. We are therefore urging the South African officials to urgently deal with the border post challenges. We also recommend that there should be clearance away from the border post for bigger trucks that are clogging the system. This can fast-track crossing the border. We are confident that the workshop today did not only share opportunities but will look into the challenges we are facing. We want effortless and seamless movement of goods and people between South Africa and Mozambique so that our produce can find their way to the hotels and restaurants there on time and in good condition,” said Mahlangu.
Agriculture Master Plan still doable but needs adjusting (Engineering News)
Agricultural Business Chamber of South Africa chief economist Wandile Sihlobo has asserted that the implementation of the Agriculture and Agroprocessing Master Plan (AAMP) is still doable. However, it needs to be adjusted and treated as a recovery plan.
Speaking during a webinar on June 20, he noted that many of the issues addressed in the AAMP had become much more complex over the last year and that South Africa would need to adapt it to the current context.
During the webinar – which is part of a series called ‘Think Big’, hosted by financial investment consulting firm PSG and facilitated by journalist Alishia Seckam, which examines some of the most pressing issues impacting South Africa‘s economic development – Sihlobo reflected on whether the master plan was still fit for purpose given the heightened level of local and global challenges in the operating environment.
India is our second largest BRICS trading partner - South Africa (IOL)
INDIA is South Africa’s second largest trading partner within the BRICS (Brazil, Russia, India, China and South Africa) grouping.
In 2022, China accounted for 9.4% of South Africa’s exports, while India had less than half that at 4.5%, according to the South African Revenue Service (Sars). China dominated South Africa’s imports with a 20.2% share while India’s share was around a third of that at 7.2%.
In rand terms, exports to China totalled R188.4 billion, while exports to India were R90.1bn. South Africa imported R367.4bn from China and R130.6bn from India, resulting in a trade surplus in favour of China worth R179bn and in favour of India of R40.5bn.
In 2010, South Africa still enjoyed a trade surplus with India of R1.4bn as trade with India was only starting to expand. In 2010, South Africa only exported R22.1bn to India resulting in a 3.3% share, while imports from India were R20.8bn for a 3.4% share.
What has changed is that imports from India have seen a switch to higher value added vehicle imports.
Eswatini: a new Eco-green City planned with the support of the African Development Bank’s UMDF (AfDB)
The African Development Bank’s Urban and Municipal Development Fund is partnering with the Eswatini Water and Agriculture Development Enterprise on a new urban planning project, closely linked with the development of a transformative agro-industrial hub which will boost economic activities and to attract tens of thousands of workers.
The Fund approved a grant of $400,000 to the “Eswatini New Eco-Green City Masterplan” on 8 June this year. The grant will support the planning of a new urban area in the Shiselweni region of the country, where population and economic activities are expected to grow quickly over the next few years.
The project includes the setting up of a special agro-processing zone, to be undertaken by the Eswatini Water and Agriculture Development Enterprise (ESWADE), as a public-private partnership. The project will generate approximately 100, 000 jobs for workers, creating the need for housing, health and education services for workers and their families.
One hurdle will be to accommodate the influx of workers stimulated by the growth of the agro-industrial complex. A well-planned new eco-city is expected to provide high quality services for the population, stimulate economic diversification, create sustainable employment and reduce poverty in the area, while safeguarding the environment.
“Climate adaptation and mitigation approaches and solutions will be at the center of the urban planning, solutions and sector investment development,” Stated Marcus Mayr, UMDF coordinator, who presented the project during the Oversight Committee.
Over the course of 2022, Gabon’s economy has benefited from high oil prices. However, the rise in global energy prices has also led to high fiscal cost which is affecting social spending for the most vulnerable and impacting the environment. Released today, the latest edition of Gabon Economic Update highlights the importance of implementing adequate reforms to limit the economic, environmental, and social costs of fuel subsidies, while strengthening social protection programs to support the most vulnerable and improving fiscal sustainability.
Gabon’s economic recovery picked up, reaching 3.1% in 2022. The country’s trade balance and its public finances have benefited from high commodity prices and a good performance of commodity exports such as oil, timber and manganese. As a result, Gabon recorded its strongest budgetary surplus in 2022 since the 2014 oil price shocks.
However, combined with the impact of the Russian invasion of Ukraine, the prolonged effects of the COVID-19 pandemic on global supply chains have pushed up global food and energy prices. As the Gabonese population, particularly the most vulnerable, was increasingly affected by inflationary pressures, the Government increased spending on fuel and food subsidies to contain the rising cost of living.
African Trade Report 2023: Export Manufacturing and Regional Value Chains in Africa under a New World Order (Afreximbank)
The African Export-Import Bank’s 2023 edition of the African Trade Report (2023ATR) examines trade and economic developments in Africa and other parts of the world during 2022, a period during which the world economy witnessed a sharp synchronised global deceleration on account of a confluence of overlapping global crises including the lingering effects of COVID-19, particularly in China, where the country’s “Zero COVID” policy led to a sharp reduction in output; heightening geopolitical tensions stoked by Ukraine crisis; increasing risk of fragmentation exacerbated by geopolitical tensions; and the persistence of trade wars among others. Global GDP expanded by a mere 3.4 percent – down from 6.3 percent posted in 2021. Additionally, disruption in global supply chains has been exacerbated by the ongoing Ukraine crisis, while record high inflation and tightening global financial conditions have increased the risk of debt crises, especially in low income and developing market economies that have limited options for refinancing – these fallouts amplify the challenges of globalization where trade is dominated by manufactured products.
Southern Africa youth consultative workshop on AfCFTA set for Windhoek (Namibia Economist)
The Ministry of Industrialisation and Trade (MIT) in collaboration with the Ministry of Sport, Youth and National Service and the National Youth Council will host a two-day Southern Africa Youth Consultative Workshop on the Africa Continental Free Trade Area Agreement (AfCFTA) Protocol on Women and Youth in Trade, from 22 to 23 June.
In partnership with the AfCFTA Continental Secretariat, Youth for Tax Justice Network Africa, and with the support of the United Nations Development Programme and European Union Delegation to Namibia, the Consultative Meeting will bring together young people and women in business, Government officials, and youth leaders across the SADC region to, among others, galvanise action and mainstream youth voices towards a common voice on the AfCFTA Protocol on Women and Youth in Trade and foster a deeper awareness of challenges faced by young entrepreneurs, producers, and traders across the region.
The outcome and recommendations derived from the workshop will culminate into a Report containing strong policy and programme recommendations that will inform the design of national policies and complementary measures to address and remove systematic barriers so that women and youth share in the gains of the AfCFTA Agreement.
Disruptions push Africa to the back of the queue (fDi Intelligence)
The African Continental Free Trade Area (AfCFTA) has long been celebrated for its potential to create the world’s most populated economic bloc.
Secretary-general Wamkele Mene believes the recent disruption in global value chains has once again pushed Africa to “the back of the queue”, strengthening the case for the development of more intertwined and resilient African value chains.
Q: How does the AfCFTA fit the global push for nearshoring? A: The events that unfolded from the Covid-19 pandemic are good examples of the urgency facing the AfCFTA. During the pandemic, global supply chains were disrupted. Individual countries imposed export restrictions on the critical tools that were required to fight the pandemic, at least in the first six to nine months. That pushed Africa to the back of the queue for things like vaccines, antiseptics and masks, because we are so reliant on these global supply chains and Africa’s productive capacities are very low.
Then the war in Ukraine happened. Last year, I visited an African company that manufactures car seats, and they told me they had to suspend production for months because they couldn’t get the wiring harness produced in Ukraine that they required. But that wiring harness is produced with copper that comes from Zambia, and then gets sent back to Lesotho for the production of the cast. These are clear examples that when global supply chains are disrupted, Africa suffers. People lost jobs in Lesotho because for three to four months there was no production.
What this reinforces is that SEZs are absolutely essential for Africa to be able to establish an alternative and more resilient supply chain without disengaging completely from global supply chains. Otherwise, we will be forever at the mercy of global supply chains. And when there’s disruption, we will forever be at the back of the queue.We have to develop self-sufficiency and the productive capacity in priority areas. SEZs are an essential part of creating that local productive capacity.
The 46th Ordinary Session of the Permanent Representatives’ Committee (PRC) begins (African Union)
The 46th Ordinary Session of the Permanent Representatives’ Committee (PRC) kicked off on 19 June 2023, in preparation for the 43rd Ordinary Session of the Executive Council and the 5th Mid-Year Coordination Meeting between the African Union, The Regional Economic Communities and the Regional Mechanisms to be held from the 13-16 July 2023.
Speaking on activities carried out under the theme of the year 2023, the Deputy Chairperson underscored the need to enrich the report submitted to the consideration of the PRC. “The report on the activities carried out under the theme of the year 2023 will certainly be a source of inspiration to appreciate and enrich the policy brief and the roadmap for the theme of the year 2024 devoted to education,” emphasized Dr. Monique Nsanzabaganwa.
The Deputy Chairperson of the AU Commission, concluded her statement by encouraging the members of PRC to conduct a critical reflection in order to improving the operational performance of the continental organization. “The African Continental Free Trade Area confirms and strengthens its first steps in the deployment of its action plan. The report concerning it, submitted for your consideration, I am sure, will provoke your desire to see it grow at an accelerated rate to achieve the objectives assigned to it in the well-understood interest of the affirmation of the commercial presence of the Africa on the international stage,” said Dr. Monique Nsanzabaganwa.
EAC coffee, avocado exports grow amid Covid-19 hiccups (Tanzania Daily News)
Export of coffee and avocados from the East African Community (EAC) to the Europe Union (EU) have grown by 35 percent and 7 percent respectively from 2018 and 2022. A report provided by the EU-EAC Market Access Upgrade Programme (MARKUP), a development initiative started to grow EAC’s agri-export trade, indicates that export of the two commodities also blossomed within the region in the four years of the program.
“The (EAC) region was not spared the far-reaching effects of the COVID- 19 pandemic. Despite these challenges, great milestones on exports of agri-based products, including MARKUP priority value chains, were recorded,” the report reads in part.
MARKUP is a regional development initiative of the EAC and the EU that provides support to small and medium-sized enterprises (SMEs) in the EAC.
Speaking during the launch, EAC Acting Director of Trade Flavia Busingye, said MARKUP had created numerous trade opportunities for agri-SMEs in the region. “The campaign “MARKUP: Growing agri export markets” aims to raise awareness of the opportunities in agricultural trade, and to demonstrate that international markets are within reach of East African exporters,” she explained. The EAC official noted that since its inception in 2018, MARKUP has generated useful resources for growth of agri-exports in the five EAC countries.
DP World in Talks to Expand East African Coverage to Tanzania (BNN Bloomberg)
Container terminal giant DP World Ltd. is in talks with Tanzania to manage seven berths at the East African nation’s main port of Dar es Salaam. If successful, the negotiations will expand the the Dubai-based company’s reach on the east African coast, where it already has interests in nations including in Somalia, Eritrea, Djibouti and Mozambique.
Tanzania wants to improve efficiency at the port and upgrade its transport infrastructure in a bid to become a regional trade and logistics hub, Works and Transport Minister Makame Mbarawa told reporters in Dar es Salaam.
Its main rival is Kenya’s Mombasa port to the north and they compete for business from African states such as Democratic Republic of the Congo, Rwanda, Uganda and Burundi. Dar es Salaam also serves as a gateway for Zambia, Malawi and Zimbabwe.
Fresh investment from DP World will help reduce congestion and slash the average stay for a vessel to 24 hours from five days, and speed up clearing times to 60 minutes from 12 hours, Mbarawa said.
National Sensitization Programmes on the Single African Air Transport Market Underway (COMESA)
COMESA has kicked-off a series of workshops to create awareness about the Single African Air Transport Market (SAATM), which provides for the full liberalisation of intra-African air transport services in terms of market access, traffic rights for scheduled and freight air services by eligible airlines thereby improving air services connectivity and air carrier efficiencies.
The first workshop took place in Mogadishu, Somalia, 18 – 19 June 202, organized by COMESA under the programme on Support to Air Transport Sector Development (SATSD) in Eastern Africa, Southern Africa and the Indian Ocean Region (EA-SA-IO). Malawi, Seychelles and Burundi are next.
In her statement, COMESA Secretary General Chileshe Mpundu Kapwepwe observed that while many air transport markets outside of Africa have been liberalized to a significant extent, most intra-African air transport markets remain largely closed.
“This has affected air connectivity within Africa as air travel costs remain prohibitive and continued to limit the potential for economic growth and development in our region,’’ she noted in a statement presented by Mr. Francis Okome, Air Transport Policy & Regulatory Expert under the SATSD project.
Inside African Union drive to manufacture vaccines (The Independent Uganda)
Ramping up its vaccine and pharmaceutical manufacturing is probably one of the most audacious goals set by the African Union recently and players in the sector say manufacturing can move from the current 1% of local production to about 60% by 2040 In fact, the African Union has a new public health order which also seeks to increase the manufacturing of therapeutics and diagnostics as one of the continent’s pillars to ensure health security for its 1.4 billion people.
“Our ambition is to progressively increase the share of vaccines manufactured within the continent from 1% to 60% by 2040,” Yared Yiegezu Zegiorgis, a Senior Research Data Analyst at the Addis Ababa-based Africa Centres for Disease Control and Prevention (Africa CDC) recently told delegates who met in Uganda to discuss the state of vaccine and pharmaceutical production in Africa.
The AU has already set up and mandated the Partnerships for African Vaccine Manufacturing (PAVM) to develop a framework for action to execute this plan.
According to Zegiorgis, the PAVM framework, which was launched in 2021, is on a multi-stage journey to realize the AU’s new public health order with the current focus being “strategy implementation.”
In an effort to enhance foreign investments, tourism and provide easier access to abundant opportunities within the ECOWAS region, the Authority of ECOWAS Head of State and Government adopted in 2011 the introduction of ECOVISA, a single visa system similar to the Schengen model. The ECOWAS Commission has been tasked with working towards the realization of this visa for Migrants of third countries.
On May 25, 2023, the Directorate of Free Movement of Persons and Migration of the ECOWAS Commission organized the Seventh Heads of Immigration Meeting in Accra, Ghana. The purpose of this meeting was to discuss the implementation of ECOVISA, its related cost, design as recommended by Experts in charge of visa issuance and control drawn from Member States and determine the way forward.
During the Accra meeting, it was recommended that a comprehensive comparative analysis of visa regimes in other continents be conducted to ensure the implementation of ECOVISA aligns with global best practices. Additionally, the Heads of Immigration recognized the need for regular engagement to discuss modalities and assess the progress of ECOVISA implementation at different stages.
ECOWAS has been dedicated to a harmonized approach in implementing the Protocol of Free Movement of Persons since its adoption. Member States prioritize creating a secure environment for migrants and removing barriers to facilitate mobility, particularly for community citizens. This requires a collective effort from all stakeholders and key actors involved in migration management within their respective countries.
Experts pitch for Kenya to join BRICS (China Daily)
As more countries are considering joining BRICS, the bloc of emerging economies, experts in Kenya are now urging the new administration to follow suit for economic and trade benefits.
The 15th summit of BRICS, comprising Brazil, Russia, India, China and South Africa, will be held in Johannesburg, South Africa, in August. The five countries account for over 40 percent of the world’s total population and a quarter of the global GDP. Some 19 countries reportedly have expressed willingness to join the group.
X.N. Iraki, an economist at the University of Nairobi, said Kenya, as a major economy in East Africa, should consider joining BRICS for trade and economic prosperity. Kenya should follow its peers like Algeria and Egypt in Africa in applying for BRICS membership, he said. “This will enable us to create better markets for our agricultural products.” Iraki also suggested that for Africa to grow its economy, there is a need to use local currency to promote intra-Africa trade.
In Comoros, leaders outline a common vision to harness Africa’s maritime potential (UNECA)
A historic ministerial meeting took place on 14 June in Moroni, the capital city of the Comoros, where blue economy experts and government officials from across Africa gathered around President Azali Assoumani to discuss how to leverage the potential of the oceans, seas and rivers for sustainable development.
The meeting resulted in the adoption of a strategy known as the Moroni declaration, which outlines a common vision and commitment to promoting the blue economy as a key driver of growth, innovation and resilience in Africa.
The blue economy refers to the sustainable use of oceans, rivers and lakes resources for economic and social benefits while preserving the health and diversity of marine ecosystems.
Africa has a unique position in the global blue economy, with 38 coastal states, 90% of its imports and exports conducted by sea, and an estimated value added of $100 billion generated by coastal tourism by 2030. The continent also has 49 million jobs currently generated in the blue economy sectors, and a projected value of $405 billion by 2030.
The participants agreed on a set of priority actions to implement the Moroni declaration, such as deepening trade relationships between Island States and other States throughout the AfCFTA, expanding the regional maritime security architecture for the Western Indian Ocean and advocating for increased public and private investment in; sustainable coastal and marine value chains, promoting, among others, responsible and sustainable fisheries, green infrastructures, ecotourism, renewable energies, and blue innovation.
The Moroni declaration will serve as a basis for engaging with other regions and stakeholders in advancing the blue economy agenda at the global level.
UNCTAD launches new index for countries to better measure economic potential (UNCTAD)
UNCTAD launched on 20 June a new generation Productive Capacities Index (PCI) to help countries make more accurate diagnostics and measurements of their economic performance.
In turn, this can shape more effective policies and their implementation. The PCI measures countries’ abilities to produce goods and deliver services, which are critical for international trade and global production value chains.
The PCI is available through a dedicated online portal with publications, manuals, resources and tools. It maps the productive capacities of 194 economies and provides a better measure of development than other traditional benchmarks such as gross domestic product (GDP). It’s multidimensional and measures economic inputs and potential as opposed to outputs.
UNCTAD Secretary-General Rebeca Grynspan said: “No nation has ever developed without building the required productive capacities, which are key to enabling countries to achieve sustained economic growth with accelerated poverty reduction, economic diversification and job creation.” UNCTAD defines productive capacities as “the productive resources, entrepreneurial capabilities and production linkages that together determine the capacity of a country to produce goods and services and enable it to grow and develop.”
Members to meet external stakeholders to advance discussion on extending TRIPS Decision (WTO)
The Chair of the TRIPS Council, Ambassador Pimchanok Pitfield of Thailand, said that since the last TRIPS Council meeting in March, she had met with members in various configurations to try and find common ground on the TRIPS Decision extension. The Chair recognized that no significant progress was made as some domestic consultations were ongoing but stressed her intention to keep working to bridge the existing differences.
Members examine deliberative functions, institutional matters on WTO reform agenda (WTO)
The informal meeting “is a further important opportunity for confidence and trust-building which can enable us to continue working on a good footing on these issues and overall on WTO reform,” she told members.
Director-General Ngozi Okonjo-Iweala said the discussions were part of better harnessing the potential of all WTO bodies to address pressing global trade matters and concerns and deliver meaningful results for the benefit of people around the world.
Members hold robust discussions on implementing Trade Facilitation Agreement (WTO)
The Committee meeting featured a dedicated session on the particular challenges faced by landlocked developing countries (LLDCs) in the transit of goods.
Concrete solutions were developed at the workshop to address challenges relating to customs formalities, transit guarantees, container seals and tracking, transit corridors and improving support to WTO members in TFA implementation relevant to transit activities.
How Digital Trade Can Drive Africa’s Economic Growth (U.S. Chamber of Commerce)
Digitization has shaped the way millions across Africa shop, bank, and communicate. It has also changed the prospects of the continent’s trade landscape and has the potential to unlock new pathways for economic growth. The next step in Africa’s digital future will be regional, fulfilling the vision outlined in the African Union’s Digital Transformation Strategy for Africa through strong frameworks and policies offered by the African Continental Free Trade Area (AfCFTA) that can help the continent get there.
How the digital economy and regional integration through the AfCFTA can transform African trade, lift economic growth, and support livelihoods across the continent dominated discussion at the latest Kenya International Investment Conference (KIICO.)
At the invitation of the Cabinet Secretary for Trade of Kenya Moses Kuria and the Kenya Investment Authority (KenInvest)’s Managing Director June Chepkemei, the U.S. Chamber’s U.S.-Africa Business Center (USAfBC) was the strategic partner of this year’s conference, “Unlocking Africa’s Gateway.” The conference took place May 29 – 31 in Nairobi, Kenya, on the periphery of negotiations held by the AfCFTA Council of Ministers
The AfCFTA Digital Trade Policy Dialogue was but one of several events organized with the input of the USAfBC, as part of fulfilling its partnership under the historic MOU signed in late 2022 between the AfCFTA Secretariat and the U.S. Chamber—the only private sector organization to sign such an MOU in the world.
Both the AfCFTA and digital trade are poised to be engines of African growth. An interconnected Africa, made possible through the AfCFTA and a single digital African market, will lower barriers to business, trade, the internet, online communication, banking, health care – and much more. Connections throughout the continent are key to bridging digital divides, sparking economic growth, creating jobs, and moving all of Africa into the digital age. The U.S. Chamber stands ready to be a trusted partner and engaged advocate.
UK withdraws duty benefit scheme; to hit Indian exports (The Tribune India)
The UK’s decision to withdraw duty benefit scheme GSP may impact Indian exporters from certain labour-intensive sectors such as leather and textiles as they were the major beneficiaries, according to experts and traders.
The UK is replacing the Generalised Scheme of Preferences (GSP) with a new Developing Countries Trading Scheme (DCTS) from June 19. Labour-intensive sectors, including certain textile items, leather goods, carpets, iron & steel goods and chemicals may get impacted due to this.
“As the UK has come out of the EU, it has designed its own GSP scheme. Each country sets a product-wise threshold limit, if a country’s exports cross the limit, the GSP concessions stop. The UK withdrawing GSP concessions on labour-intensive products was expected as the two countries are negotiating a free trade agreement,” GTRI co-founder Ajay Srivastava said.
Understanding rules of origin under the Developing Countries Trading Scheme (GOV.UK)
The changes include simpler product specific rules (PSRs) and more generous cumulation options for exporters in Least Developed Countries ( LDCs ). For example, leather shoes under Chapter 42 have alternative PSRs. LDCs could either meet a Change of Tariff Heading or satisfy the 75% non-originating material maximum rule.
After the pandemic storms, digital trade offers LDCs rays of sunshine (Trade for Development News)
The dark storm of the coronavirus pandemic came with a silver lining: new ways of providing services and doing business by leveraging e-commerce and other digital opportunities. Video conferencing apps enabled lessons or work to be accessed remotely; mobile apps delivered food, groceries, and medicines at the click of a button.
But silver linings don’t shine bright for all. Gaps in technology, infrastructure and skills, especially in Least Developed Countries (LDCs), highlighted the need to help entrepreneurs grasp the possibilities of digital transformation.
With funding from the Enhanced Integrated Framework (EIF), the United Nations Conference on Trade and Development’s (UNCTAD) E-commerce and Digital Economy Program has conducted many rapid e-trade readiness assessments to identify policies that need to be adjusted to boost e-commerce.
As a result, several countries are investing in infrastructure, such as building e-commerce platforms in Cambodia and Senegal, while also developing skills and payment solutions. Such initiatives require partnerships with key agencies and institutions, and need financial resources to be mobilised through public-private partnerships.
Related News
EU and Kenya conclude negotiations for an ambitious Economic Partnership Agreement with strong sustainability provisions
The EU and Kenya have announced today the political conclusion of the negotiations for an Economic Partnership Agreement (EPA). The Agreement will boost trade in goods and create new economic opportunities, with targeted cooperation to enhance Kenya’s economic development. It is the most ambitious EU trade deal with a developing country when it comes to sustainability provisions such as climate and environmental protection and labour rights.
The negotiations were concluded during an official ceremony in Nairobi by European Commission Executive Vice-President and Commissioner for Trade Valdis Dombrovskis and Cabinet Secretary of Kenya’s Ministry of Investments, Trade and Industry, Hon. Moses Kuria, in the presence of Kenyan President Dr. William Samoei Ruto.
The EU is Kenya’s first export destination and second largest trading partner, totalling €3.3 billion of trade in 2022 – an increase of 27% compared to 2018. The EPA will create even more opportunities for Kenyan businesses and exporters, as it will at once fully open the EU market for Kenyan products, and it will incentivise EU investment to Kenya thanks to increased legal certainty and stability.
Kenya has a pioneering role in sustainability efforts on the African continent and is a reliable ally in the fight against climate change. It co-leads the Coalition of Trade Ministers on Climate initiative launched earlier this year, together with the EU, Ecuador and New Zealand. The EU-Kenya EPA builds on this strong track record and is the first agreement with a developing country in which the EU’s new approach to trade and sustainable development is reflected. The deal contains strong trade and sustainability commitments, including binding provisions on labour matters, gender equality, environment and the fight against climate change.
This is a balanced agreement, taking into account Kenya’s development needs by allowing it a longer period to gradually open its market, safeguards for agriculture, and protection of its developing industry. A dedicated chapter has been included on economic and development cooperation, aimed at enhancing the competitiveness of the Kenyan economy. Together with EU development assistance, this will help build capacity and assist Kenya in implementing the EPA smoothly, while supporting local farmers in meeting EU standards and in reaping the opportunities this agreement provides.
Background
The Economic Partnership Agreement between the EU and Kenya aims at implementing the provisions the EU-East African Community (EAC) EPA, and it will be open for other EAC countries to join in the future.
The EPA and its ambitious commitments represent a crucial deliverable of the EU’s 2021 Trade Policy Review and its trade policy with Africa, helping the EU to deepen and expand its current trade agreements with African countries and enhance their sustainability objectives.
Key elements of the EU-Kenya Economic Partnership Agreement
The EU and Kenya have concluded today the negotiations on an ambitious trade agreement through which they will implement bilaterally the regional Economic Partnership Agreement (EPA) between the EU and the Eastern African Community (EAC).
The agreement, which will bring about an important boost for trade in goods, contains substantial development and cooperation elements and is the first and most ambitious trade deal with a developing country to contain strong commitments on sustainability.
The EU is Kenya’s second largest trading partner, and Kenya’s most important export market. Total trade between the EU and Kenya reached €3.3 billion in 2022, with an increase of 27% compared to 2018.
EU’s imports from Kenya are €1.2 billion and are mainly vegetables, fruits, and flowers. EU exports to Kenya amount to €2.02 billion and are mainly mineral products, chemical products, and machinery. The EU is the first export destination for Kenya, with 16% of its total exports in 2022, followed by Uganda (12%) and USA (8%).
The EPA between the EU and Kenya is a significant milestone as it will be the first trade agreement with an East African Community country to enter into force. A regional EPA was negotiated in 2014, signed in by Kenya, Rwanda and the EU in 2016, but could not be applied as it required signature and ratification by all the EAC countries. This EU-Kenya agreement implements bilaterally the provisions of the Economic Partnership Agreement between the EU and the EAC Partner States. It follows a decision by the East African Community Heads of State Summit on 27 February 2021. The EU-Kenya Agreement will be open to accession of the EAC Partner States.
1. Trade and investment, opportunities for business in the EU and Kenya
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The agreement will provide free access to the EU market by removing tariffs and quotas on all Kenyan exports of goods (except arms).
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Trade liberalisation will be asymmetrical: Kenya will open its market partially and very gradually to imports from the EU, taking account of the different levels of development. So, Kenya will benefit from transitional periods and exclusion of sensitive products from liberalisation.
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The agreement allows dealing with unfair trade. It references and incorporates WTO law, which for example deals with dumping products at unreasonable low prices in the other party’s market. The inclusion of safeguards will also allow the EU and Kenya to reintroduce duties if a surge in imports from the other side disturb or threaten to disturb their economies. Special safeguard conditions are envisaged to protect Kenyan infant industries (those that Kenya seeks to develop). Unjustified or discriminatory restrictions on imports and exports will also be banned.
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Rules of Origin will define the products eligible for trade preferences under the EPA, as set out in the EU Market Access Regulation. This regulation provides duty-free and quota-free access to the EU market for products originating in African, Caribbean and Pacific countries which do not benefit from the EU’s Everything But Arms (EBA) scheme or have concluded, but not yet ratified, an EPA with the EU. It is envisaged that a new protocol on rules of origin will be negotiated as soon as possible, but at latest within the first five years of the implementation of the EPA.
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The EU and Kenya share the objective of providing efficient custom procedures to traders, in particular to smaller entities. Customs-related provisions will aim at facilitating trade, promoting better customs legislation and procedures, close cooperation between Kenya’s and the EU’s customs institutions and providing support to the Kenyan customs administration.
2. Agriculture, industrial development and diversification of trade
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Provisions on agriculture will aim at sustainable agricultural development, including food and nutrition security, rural development, including the sustainable use and management of natural and cultural resources, and income and job creation in the agricultural sector in Kenya. These measures will guarantee that the EU will not apply export subsidies for agriculture products, even in times of market crisis.
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Provisions on animal and plant health and hygiene (sanitary and phytosanitary – SPS) measures will allow, among others, to address animal and plant health-related trade issues, promote the harmonisation of intra-regional standards in accordance with international standards, and enhance the capacity of Kenya to implement and monitor these measures. Nothing in the agreement changes the way the EU adopts and enforces its food safety rules for imports, which are the same for domestically produced and imported products.
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The EU and Kenya will reinforce joint work on SPS matters and engage in a policy dialogue on agriculture and food security, which will include transparency on their respective domestic policies.
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EU development assistance, through trade capacity-building measures, will support farming and rural employment, and farmers’ capacity to comply with agricultural standards. This alignment of standards will make it easier to comply with the requirements necessary to bring those products into the EU and open trading opportunities in the agricultural sector.
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The agreement will put in place an effective mechanism to solve disputes that may arise regarding the interpretation and application of its provisions. Among other things it will include independent panellists and due process and transparency involving open hearings, the publication of decisions, and the opportunity for interested parties to submit views in writing.
3. Trade and sustainable development
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The agreement includes a dedicated chapter on Trade and Sustainable Development that covers labour, gender equality, as well as environmental and climate matters.
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This includes the respect and promotion of the International Labour Organization fundamental rights, and the implementation of UN standards and obligations to prevent gender discrimination and support women’s empowerment.
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It also commits the parties to the implementation of multilateral environmental agreements (e.g. the Paris agreement on climate change), and contains obligations to combat illegal wildlife trade, illegal logging, and illegal, unreported and unregulated fishing.
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The EU approach for the joint implementation around these commitments is fundamentally centred on cooperation and engagement. Change is best facilitated with continuous and positive engagement, supported by regulatory dialogue, technical assistance and capacity building.
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The Trade and Sustainable Development commitments are binding and enforceable. In case one of the two parties violates these commitments, the agreement envisages the possibility to trigger a specific dispute settlement mechanism. The dispute settlement mechanism also includes a so-called compliance stage, which means that the party found in violation of its TSD commitments will have to promptly inform how it will implement the panel report and carry this out within a certain period of time. This will be subject to panel review.
4. Implementation and monitoring
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The agreement will have an institutional chapter that envisages to set up ministerial, senior official and technical bodies to steer, support and oversee its implementation.
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A chapter on economic and development cooperation will aim at enhancing the competitiveness of the Kenyan economy by building supply capacity and assisting Kenya in implementing the EPA smoothly.
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The agreement will offer the possibility of adding new areas once Kenya is ready to take up such commitments. For instance, provisions on trade in services, , competition policy, investment and private sector development, intellectual property rights, transparency in public procurement could be envisaged to be added within five years following the entry into force of the deal.
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The agreement will give civil society representatives (business associations, trade unions, non-governmental associations) a role in its implementation, including on the provisions on trade and sustainable development. Domestic advisory groups will be set up with independent civil society representatives that will advise both sides on the implementation of the Agreement, as well as a Consultative Committee were representatives of civil society from the EU and Kenya will meet regularly.
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The agreement includes a commitment to initiate a review process of the TSD aspects of the agreement, as soon as the trade agreement comes into force.
Next steps
The EPA will have to go through legal revision (“legal scrubbing”) and then be translated before the European Commission submits it for signature and conclusion to the Council. Once adopted by the Council, the EU and Kenya can sign the agreement. Following the signature, the text will be transmitted to the European Parliament for consent. After the consent by the Parliament, the parties may decide to provisionally apply parts of the agreement. Once Kenya and the EU Member States ratify it, the agreement enters into force.
Related News
tralac Daily News
EU and Kenya conclude negotiations for an ambitious Economic Partnership Agreement with strong sustainability provisions (European Commission)
(European Commission)
The EU and Kenya have announced today the political conclusion of the negotiations for an Economic Partnership Agreement (EPA). The Agreement will boost trade in goods and create new economic opportunities, with targeted cooperation to enhance Kenya’s economic development. It is the most ambitious EU trade deal with a developing country when it comes to sustainability provisions such as climate and environmental protection and labour rights.
The EU is Kenya’s first export destination and second largest trading partner, totalling €3.3 billion of trade in 2022 – an increase of 27% compared to 2018. The EPA will create even more opportunities for Kenyan businesses and exporters, as it will at once fully open the EU market for Kenyan products, and it will incentivise EU investment to Kenya thanks to increased legal certainty and stability.
This is a balanced agreement, taking into account Kenya’s development needs by allowing it a longer period to gradually open its market, safeguards for agriculture, and protection of its developing industry. A dedicated chapter has been included on economic and development cooperation, aimed at enhancing the competitiveness of the Kenyan economy. Together with EU development assistance, this will help build capacity and assist Kenya in implementing the EPA smoothly, while supporting local farmers in meeting EU standards and in reaping the opportunities this agreement provides.
Liquid’s new subsea cable enhances connectivity between Mauritius and South Africa (Engineering News)
The successful deployment of the Mauritius Telecom T3 subsea cable is set to enhance connectivity between Mauritius and South Africa.
The subsea cable, deployed at pan-African technology group Liquid Intelligent Technologies’ landing facility in Amanzimtoti, in Durban, South Africa, comprises four 13.5 Tb/s fibre pairs, with a design capacity of 54 Tb/s for the whole system.
It is expected to bolster the stability and redundancy around the connectivity that exists between the two countries, said Liquid Intelligent Technologies South Africa CEO Deon Geyser.
“Liquid South Africa is bringing a critical increase in the availability of high-speed and reliable Internet connectivity for economies in the Indian Ocean islands to South Africa, leveraging on Liquid’s 110 000 km of fibre backbone in Africa.”
Driven By Minerals, Metals, Nigeria’s Exports To Surge To $127bn By 2030 (Leadership News)
Driven largely by expected growth in the metal and minerals sector of the economy, the value of Nigeria’s export to other countries is predicted to hit $127 billion by 2030, a new report has projected. The report titled ‘future of trade’ by Standard Chartered, a global bank, said the country’s exports will grow annually by an average rate of 9.5 per cent between 2021 and 2030.
“This growth will be driven by activities in agriculture (4 per cent), metals and minerals (94 per cent), especially with the advent of the African Continental Free Trade Agreement, adding that by 2030, exports will constitute 20 per cent of the country’s Gross Domestic Product (GDP),” it said.
It said inclusion in the free trade area helps to facilitate trade in sectors ranging from fishery and textiles to automotives and electricals.
“Following this agreement, Nigerian exports to African markets outside of West Africa are expected to increase significantly, and reach markets such as Botswana, Egypt and Kenya,” it added. Last year, the country recorded a trade surplus of N1.2 trillion compared to a deficit of N1.94 trillion in 2021 as the cost of exporting commodities exceeded the value of its import. Data from the National Bureau of Statistics revealed that total trade was N52.4 trillion in 2022, 31.8 percent up from N39.8 trillion in 2021, of which total imports amounted to N25.6 trillion, while total exports were recorded at N26.8 trillion.
Zambia Receives Rapid Test Kits to Facilitate Transit Trade (COMESA)
Secretary at the Ministry, Mrs Lillian Bwalya received the equipment which will be used by the Ministry of Health. They will be used at the borders as one of the solutions to eliminate impediments to trade at Chirundu, Mwami and Nakonde One Stop Border Posts (OSBP) under the Zambia Border Post Upgrading project.
The equipment were procured under the COMESA Trade Facilitation Programme (TFP), with funding from the 11th European Development Fund. The TFP is a EUR 53,000,000 programme with COMESA, under which a EUR 6,880,000 sub-delegation agreement was signed with Zambia in November 2020.
Mrs Bwalya said that testing of products in Zambia has been highly centralised and is usually done from the provincial centres. Hence the procurement and placement of the kits at the designated borders will enable testing of products without having to send samples to the provincial centres. This will allow for more effective surveillance and result in more effective planning.
Niger: Strong Agricultural Season Boosts Economic Rebound in 2022 (World Bank)
Niger’s economy recovered strongly in 2022 after two years of weak growth. This is primarily due to a good agricultural season, thanks to favorable rainfall and an expansion of irrigated land. However, there are uncertainties and risks that could affect future growth, such as the security situation and climatic shocks. These are the findings of the World Bank’s latest economic update for Niger published today.
The report titled “Strengthening Financial Resilience of Pastoralists to Drought” (french) provides an overview of Niger’s economic situation and poverty levels in 2022 as well as the outlook for the next three years. The report also analyzes the potential of using disaster risk financing and insurance instruments for pastoralists to mitigate the adverse socio-economic impacts of climate shocks.
“Niger’s economy depends to a large extent on the livestock sector, which contributes almost 15% of the national GDP. However, this sector is significantly affected by climate shocks,” says Han Fraeters, World Bank Country Manager for Niger. “Disaster risk financing and insurance can play a crucial role in mitigating the adverse impacts of climate shocks on pastoralists, who constitute one of the poorest and most vulnerable populations. These communities face high levels of exposure to such shocks and encounter difficulties in managing and recovering from them.”
East African budgets update
EAC $103m budget focuses on infrastructure growth (The East African)
The East African Community is prioritising infrastructure development in the next fiscal year, signalling a break from a three-year lull blamed on the Covid-19 pandemic. The EAC on Tuesday tabled before the East African Legislative Assembly (Eala) budget estimates totalling $103,842,880 for 2023/2024, out of which 43 percent ($44 million), funded by development partners, will be used on infrastructure projects to spur intra-EAC trade, which increased by 13.4 percent to $74.03 billion in 2022 from $65.268 billion in 2021.
The earmarked infrastructure projects are meant to spur intra-EAC trade, which increased by 13.4 percent to $74.03 billion in 2022 from $65.268 billion in 2021.
“In 2022, EAC total exports to the rest of the world were valued at $20.139 billion, while total imports from the rest of the world into the EAC amounted to $53.891 billion,” said Dr Nibigira. Further, total Intra-EAC trade grew by 11.2 percent to $10.910 billion in 2022 from $9.810 billion in 2021.
East African nations to bolster their economies with bigger budgets (Moneyweb)
Kenya, Tanzania, Uganda, Rwanda and Burundi are all set to release their annual budgets on Thursday, providing details of their spending priorities and how they expect to fund them.
Most of the East African nations have already signaled that they will increase expenditure to shore up their economies against the fallout of Russia’s invasion of Ukraine and the continued aftermath of the coronavirus pandemic.
“Finance ministries in East Africa have little choice but to raise their spending as inflation means costs have continued to climb,” said Ben Hunter, an Africa analyst at risk advisory firm Verisk Maplecroft. “East African states sorely need more assistance from the global financial institutions now that access to capital markets has been curtailed for many. An expansion of concessionary lending will be crucial for achieving sustainable growth over the coming decade.”
Budgets: Will intra-regional trade spur nations growth? (The Citizen)
After the devastating Covid-19 and the impact of other global dynamics, will increased intra-regional trade boost growth in East Africa this time around? Four members of the East African Community (EAC) tabled their annual budgets for 2023/24 financial year on Thursday with optimism about recovery.
The finance ministers of Tanzania, Uganda, Kenya, and Rwanda presented their budgets in Parliament on Thursday with varying priorities.
A quick glance, however, saw infrastructure given much emphasis; as a key factor driving the economies.
According to the EAC Treaty, the Finance Ministers of the partner states are required to read their budgets simultaneously under a common theme. However, this has not yet worked perfectly with countries that joined the bloc recently, like the DR Congo.
Others, like Burundi and South Sudan, still subscribe to the old order of reading their budgets in tandem with the calendar year. As has been the case for many years, Kenya topped the six other EAC partner states in the size of its budget, being the largest economy.
Kenyan investors urged to take advantage of expansive EAC market to do business - KBC (KBC)
Kenyan investors and traders have been encouraged to seize the immense market opportunities presented by the East African Community (EAC) region to expand their businesses.
East African Legislative Assembly (EALA) MP Maina Karobia is in particular appealing to manufacturers to target the 300 million population of the EAC member countries in marketing their wares.
Speaking during the opening of the new Grand Maria Industrial Park in Thika, Kiambu County, the legislator said the regional assembly has enacted laws that make it easy for member states to do business.
The EAC, consisting of Kenya, Tanzania, Uganda, Rwanda, Burundi, and South Sudan, offers a sizable consumer base and a framework for regional economic integration, making it an attractive market for Kenyan businesses.
EAC budget insufficient, say lawmakers (The Citizen)
The budget estimates for the East African Community (EAC) tabled at the regional assembly last week may not achieve the desired targets. The $103 million would not suffice implementation of projects and operations of the regional body for 2023/24 despite a marginal increase compared to recent years.
“The absolute rise was not significant,” said Ms Fatuma Ndangiza, a member of the East African Legislative Assembly (Eala) from Rwanda. She told the House, currently holding a sitting here, that the budget increase this time around was partly due to admission of DRC Congo into the bloc. She argued that the regional organization needed “a higher budget allocation to meet its integration targets”.
Increased funding will not only cover routine operations of the EAC but finance an increasing number of projects being executed across the region. These include, among others, fast-tracking the single currency economy project (monetary union), infrastructure development and peace building.
Uganda’s ‘Optimistic’ Budget (The Independent Uganda)
Finance Minister, Matia Kasaija, on June 15 hit several optimistic notes for next Financial Year when announcing a Shs52.7 trillion budget. That is a 10% jump from the Shs48 trillion last financial year and the biggest rise in projected government expenditure since COVID struck in 2020.
Kasaija appeared determined to signal a return to pre-COVID-19 positivity by reeling off measure after measure to boost the economy and said the economy is projected to grow at a rate of 6% next FY and at an average of 6.5-7% per year over the next five years.
And many budget followers and experts appear to have bought into the government’s optimism. In post-budget reading interviews with The Independent, many said Kasaija’s planned revenue and expenditures are good.
“It is a good budget. Priority areas are very strategic and important for our country,” said Pamela Natamba, a partner at the PWC.
Martin Kyeyune, Chief Corporate Affairs Officer at Roofings Group said it is time for citizens to appreciate the role of paying taxes to help government deliver services. “Good investments in agriculture, industry, and service sectors would increase the basket in which URA has to pick taxes,” he said.
Imported smart cards for NIDA granted duty exemption (Daily News)
IMPORTED smart cards for the National Identification Authority (NIDA) are set to be cheaper after the government waived Common External Tariff (CET) to facilitate issuance of the national identity cards.
Presenting government budget estimates for 2023/24 financial year in Parliament on Thursday, the Minister for Finance and Planning, Mwigulu Nchemba said EAC member states had agreed to grant stay of application of EAC Common External. Tariff (CET) rate of 25 per cent apply a duty rate of zero per cent on imported smart cards by the National Identification Authority for one year in order to facilitate issuance of National Identification Cards.
He said the same applies to the rest of the East African Community (EAC) region as it is included in a list of goods for common tariff by member states in a pre-budget meeting held in May in Arusha.
New AfDB sponsored digital platform launched in Kenya to help farmers (Farmers Review Africa)
In a bid to save farmers from heavy losses as a result of erratic weather patterns due to climate change, a new digital platform has been launched to help Kenyan farmers access timely weather updates for proper decision making thanks to a Ksh114 million aid by African Development Bank (AfDB).
The Transformation Centres Digital Platform (KRTCDP) created by the Co-operative University of Kenya (CUK) aims at putting farmers at the centre of a single electronic “ecosystem” and connecting them with all the sectors in the agricultural value chain.
“The platform will help farmers in decision-making through access to agribusiness services and information such as the broadcast of agricultural-cycle information on weather forecasts, wholesale and retail commodity prices,” said Mr. Josphat Muhunyu, the Agricultural Secretary, State Department of Crop Development.
EAC rolls out campaign to grow agri-export trade (EAC)
The East African Community (EAC) has launched a campaign aimed at creating awareness on the agri-export trade opportunities that have been created through the EU-EAC Market Access Upgrade Programme (MARKUP). Through the campaign, small and medium-sized enterprises (SMEs) in the agricultural value chain, co-operatives and farmers, as well as government entities in the EAC will access information and tools on agri-export trade.
Speaking at the 14th June, 2023 launch of the campaign, Ms. Flavia Busingye, the Acting Director of Customs at the EAC Secretariat, said that MARKUP had created numerous trade opportunities for agri-SMEs in the region.
“The campaign ‘MARKUP: Growing agri-export markets’ aims to raise awareness of the opportunities in agricultural trade, and to demonstrate that international markets are within reach of East African exporters,” said Ms. Busingye.
Why East Africa farmer groups are opposing new seeds plan (The Citizen)
Farmer groups in East Africa say they will not relent in their opposition to a proposed seed and plant varieties bill. The draft East African Community (EAC) Seed and Plant Varieties Bill is being finalized at the EAC secretariat amid stiff opposition.
Although the EAC says if passed, it would improve access of farmers to improved seeds, non-state seed stakeholders maintain it would marginalise smallholder farmers. “It is more leaning towards stringent commercial seed and plant variety protection (PVP) laws,” said Emmanuel Justine, a programme manager with Eastern and Southern Africa Small Scale Farmers Forum (Esaff). This, he went on, will have massive impacts on smallholder farmers and their systems “including threats to agricultural biodiversity.”
The Joint Meeting of the Southern African Development Community (SADC) Committee of Ministers responsible for Transport, ICT, Information and Meteorology and Infrastructure met virtually on 16th June 2023 to discuss strategic policies and activities aimed at accelerating implementation of projects and programmes for regional Transport, ICT, Information and Meteorology Infrastructure.
In his remarks, Honourable Augustin Kibasa Maliba, Minister of Postal Services, Telecommunications, and New Information and Communication Services of the Democratic Republic of the Congo and Chairperson of the Joint Meeting of Committee of Ministers responsible for Transport, ICT, Information, and Meteorology and Infrastructure, emphasised the importance of consolidating their efforts to thoughtfully consider and review policies, strategies, programmes, and projects.
The Minister urged SADC Member States to address the challenges across all sectorial disciplines emanating from unstable universal socio-economic and political conditions, especially the Russia-Ukraine conflict, declining global economic growth, high rates of inflation, tight monetary and financial conditions, as well as the continued threats posed by the COVID-19 pandemic.
Ambassador Joseph Nourrice, the SADC Deputy Executive Secretary responsible for Corporate Affairs, representing the Executive Secretary of SADC, His Excellency Mr Elias Magosi emphasised that as infrastructure has intertwined linkages with other sectors, such as health, food security, and the environment, SADC Member States must be proactive in ensuring that these sectors develop in a complementary approach.
Ambassador Nourrice called for the development of climate-resilient infrastructure projects and urged Member States to develop innovative solutions and implement best practises that demonstrate resilience to combat adversaries.
Globalising African Voices on Illicit Financial Flows, Asset Recovery (The Gazelle News)
For over two decades, the issue of Illicit Financial Flows (IFFs) has been a major concern for the Africa as assets and funds running into billions of dollars continue to find its way out of the continent as a result of corrupt public servants and multinational corporations. Their destination is the Western and European countries.
Though stakeholders including the African Union Member-States have played significant roles in the international efforts to combat these opaque and destabilizing transfers of capital, such efforts have not yielded the desired goal.
Tackling corruption, particularly IFFs, has become a matter of survival for Africa’s development and must be treated with urgency. There is broad consensus that the funds being bled out of Africa, could be channeled towards the continent’s development if successfully retained. Former President of South Africa and the Chairman of the African Union High Level Panel on IFFs, Thabo Mbeki, has stated that the African Continent suffered an annual loss of over $50 billion as at 2015 through IFFs, which has grown to $80 billion yearly.
He had also called for the establishment of a globally inclusive intergovernmental tax body to strengthen global efforts against IFFs.
As part of measures towards addressing the IFFs in the Extractive Industries, the African Union (AU) High-Level Panel on Illicit Financial Flows (AU HLP on IFF) and the Working Group on the Common African Position on Asset Recovery (CAPAR) in collaboration with the African Union Advisory Board Against Corruption, Coalition for Dialogue on Africa (CoDA), Forum Civil, the Pan-African Lawyers Union (PALU) and TrustAfrica, held a conference in Dakar, Senegal.
The Conference, which has as theme “Addressing Illicit Financial Flows and Asset Recovery in the Extractive Industries”, was attended by policymakers, regulators, civil society organizations, industry stakeholders and the media. It was held on the margins of the 2023 Global Conference of the Extractive Industries Transparency Initiative (EITI) in Dakar, Senegal, which is the first ever EITI global conference to be held in Africa despite African countries being the majority among the EITI’s fifty-seven member states.
In an exclusive interview to ThePrint, the South African High Commissioner to India spoke out against the “domination” of the US Dollar (USD) in the world economy. He was not the first to question the USD being used as the world’s reserve currency for global trade.
According to media reports earlier this month, the President of Kenya, William Ruto, has called for African leaders to move away from using the USD for intra-Africa trade, and to support the pan-African payments and settlement system, launched in 2022. The reason for the movement gaining recent steam is the economic sanctions enforced by the US-European Union (EU), due to Russia’s operations in Ukraine.
Not just Africa, other global leaders from developing countries have also joined the call for the ‘de-dollarisation’ of trade — which means trade to be carried out between two countries in currencies other than the USD.
Afreximbank Pushes Ahead with Continental Payment System as Several Countries Join (Arise News)
A pan-African payment system that would allow African nations to trade among themselves, using their own currencies, is gaining momentum. The African Export-Import Bank expects 15 to 20 countries to have joined the Pan-African Payment and Settlement System (PAPSS) by the end of the year, Afreximbank President Benedict Oramah said in an interview ahead of the lender’s annual meetings in Accra, Ghana’s capital, that runs Sunday through June 21.The platform has started commercial operations with nine countries signed up so far, he told Bloomberg.
The system, known as PAPSS, is using dollar exchange rates for now, said Oramah, whose bank funds the system. “But we are working with central banks to develop an exchange-rate mechanism that would allow Africa’s 42 currencies to be convertible among themselves. What we are doing is to domesticate intra-African payments,” he said.
The vast majority of Africa’s intra-regional trade is done through conversions to the dollar. Initiatives like PAPSS and the African Continental Free Trade Agreement, which would create the world’s largest free trade zone by area, seek to boost internal trade by reducing barriers, including the need for intermediaries such as the US dollar.
The European Bank for Reconstruction and Development and the European Union representations in Morocco and the ECA Office for North Africa will hold on Friday 16 June in Rabat (Morocco) the first of a series of five training workshops for women-led businesses in various parts of Morocco.
These workshops are being organised as part of the EBRD-led “Women in Business” program financed by the EU and benefit from the support of multiple partners including the Moroccan Association of Women Entrepreneurs (AFEM) and the Association of Moroccan Exporters (ASMEX). They are also being organised as part of a series of actions undertaken by the ECA Office in North Africa aimed at the development of programs and policies in support to female entrepreneurship in North Africa and the implementation of an environment conducive to job creation for women and young people in North Africa.
The five workshops will focus on enhancing export capacity and building up the digital skills of about 200 women owners of small and medium-sized enterprises (SMEs). Besides supporting women in the Morocco labour market and their livelihoods, the project’s main objective is to strengthen Morocco’s trade with the African continent and support the country’s structural transformation.
Each workshop will address four key themes, namely access to finance, product development, market development strategies and the digitalization of SME export activities. Participants will learn about financing options available to SMEs, how to identify export opportunities, where are the potential markets in Africa, what are the qualification of exportable products as well as the latest digital platforms and tools that may boost exports.
North Africa to boost public-private partnerships to support economic development (AfDB)
“Diversifying the sources of funding for public infrastructure projects means seeking innovative approaches that integrate public-private partnerships in particular,” the Tunisian Prime Minister, Ms Najla Bouden, told participants of a seminar titled Public-Private Partnerships in North Africa for sustainable and inclusive growth that was held on 15-16 June in Tunis.
“North Africa has immense potential in terms of infrastructure development, which is essential for sustainable economic growth,” said Mohamed El Azizi, African Development Bank Managing Director for North Africa. “Given the investment and maintenance needs of infrastructure, PPPs offer a suitable approach to meeting the challenges facing African countries. However, we must recognize that PPPs are not without their shortcomings and pitfalls. Higher costs, complex contractual processes and potential monopolies are just some of the challenges we need to address diligently,” he warned.
The Generalized System of Preferences: How much does it matter for developing countries? (UNCTAD)
The Generalized System of Preferences (GSP) scheme is a voluntary trade measure implemented by developed countries that provide an advantageous, or “preferential”, tariff treatment to imports from developing countries.
Different national GSP schemes were introduced following a resolution adopted at the second session of the United Nations Conference on Trade and Development (UNCTAD) in 1968. The scheme is expected to contribute to developing countries’ export growth particularly in the manufacturing sector.
Five decades since its inception, the GSP stands at a crossroads. The effectiveness of tariff incentives as a tool to foster exports has eroded over time as trade liberalization processes proceed at multilateral, regional and unilateral levels, and as the relevance of tariffs to overall trade costs declines. The question arises as to whether the relevance and effectiveness of tariff preferences remain valid today.
Our Discussions at today’s panel were exceptionally constructive, as our main objective with this high-level event is to bring this very important discussion on CBDCs to Africa.
We agreed on the need to continue dialogue on CBDCs and to gather and share knowledge and information for the benefit of our member countries in Africa, the Middle East, and beyond. We also highlighted the value of enhancing our coordination efforts on the links between digitization, fintech and economic reform.
Harnessing the digital transition is also a key theme of our 2023 Annual Meetings.
In my remarks, I stressed that CBDCs could help to increase inclusion by giving more people access to financial services, and at a lower cost, strengthen the resilience and efficiency of payment systems, and make cross-border payments and remittances cheaper and quicker. However, if poorly designed, CBDCs could also lead to financial stability risks, data privacy and legal challenges, financial integrity and cyber risks, and central bank operational risks.
India’s Modi seeks African Union’s full membership in G20 (Reuters)
Indian Prime Minister Narendra Modi has written to the leaders of the G20 nations proposing the African Union be given full, permanent membership of the diplomatic group at its upcoming summit in India, an official source said.
Modi’s proposal to grant the African Union full membership in the G20 demonstrates India’s commitment to strengthening Africa’s representation and partnership in shaping global affairs, the source said. The G20 or Group of 20 is an intergovernmental forum of the world’s major developed and developing economies. The members represent around 85% of global GDP, over 75% of global trade, and about two-thirds of the world population.
“This will be a right step towards a just, fair, more inclusive and representative global architecture and governance,” the source said of the African Union proposal. “(The) prime minister is a strong believer in having a greater Voice of the Global South countries on international platforms, particularly of African countries.”
BRICS Expansion Can Wait, Strengthen the Core First (The Wire)
BRICS (Brazil, Russia, India, China and South Africa) is a relatively young organisation, established in 2009 merely on the economic prospects of constituents in the evolving and shifting global economic order. Its primary focus has been on economic cooperation, development and multilateralism. It is now seen as an alternative to the Bretton Woods model and other emerging economies are interested in joining it. The list of aspirants now stretches to eight ― Algeria, Argentina, Bahrain, Egypt, Indonesia, Iran, Saudi Arabia and the UAE. While some of these countries indeed have significant economic influence and regional importance, it is important to consider various factors before expanding BRICS.
The BRICS grouping is yet evolving as an organisation and needs time to develop its institutions and governance structure. Its constituents are evolving nationally, establishing robust governance and developmental institutions and exploring associated socioeconomic convergences. BRICS countries differ significantly in terms of economic development. China, with the sheer size of its economy, is challenging existing governance models and institutions while South Africa is still coping with structural economic challenges. India and Brazil remain attractive economically but Russia is cut off, financially and economically.
Recognising this diversity, BRICS members need to engage with each other to build frameworks for cooperation, explore areas of mutual interest and foster collaboration. Accordingly, BRICS countries should prioritise the strengthening of its New Development Bank (NDB) to promote financial and economic inclusion on a global scale. The NDB can play a crucial role in providing funding for infrastructure projects, sustainable development initiatives and other priority areas within BRICS countries and beyond. By enhancing its capacity, expanding its lending capabilities and ensuring efficient governance, BRICS can contribute to reducing the development gap and fostering inclusive growth.
Additionally, the idea of a BRICS currency for trade and internal payment settlements is worth exploring. A shared currency could facilitate trade and investment, reduce transaction costs and enhance economic cooperation within the bloc. However, implementing a common currency would require addressing issues such as exchange rate stability, monetary policy coordination and the establishment of appropriate financial infrastructure. It would also necessitate extensive dialogue and consensus-building among member states, especially on the basis of the intrinsic value of the currency. A currency-commodity basket would be a great idea, reflecting the intrinsic strengths of this currency for global acceptance, beyond internal settlement.
Agrifood systems must be part of the solution to the loss of biodiversity and the climate crisis facing our planet, the Director-General of the Food and Agriculture Organization of the United Nations (FAO), QU Dongyu, today told a meeting of G20 Agriculture Ministers.
“Despite progress, today we are facing alarming rates of biodiversity loss, jeopardising food security and nutrition, poverty eradication, prevention of natural disasters and climate change mitigation and adaptation,” Qu said in his address to a High-Level Ministerial Meeting on Sustaining Biodiversity and Ecosystem Services for Food Security, which took place in the Indian city of Hyderabad.
The FAO Director-General emphasized that we need genetic diversity to adapt agrifood systems to climate change, emerging pests, pathogens and changing ecological conditions; we need species diversity for diverse foods; and we need healthy ecosystems to provide water, regulate the climate and provide resilience against disasters.And yet, many drivers of biodiversity loss can be found in inappropriate agricultural practices.”My message is clear: agrifood systems must be part of the solution to the biodiversity and climate crises,” Qu said.
This means promoting improved practices that can help address trade-offs, maintain ecosystems, improve land and soil quality, reduce input use, and strengthen the resilience and adaptation capacity of farming systems to extreme weather events linked to climate change, Qu said.
Second Global Parliamentary Summit reaches historic pact against hunger and malnutrition (FAO)
The Second Global Parliamentary Summit against Hunger and Malnutrition closed on Friday in Chile with a new Global Parliamentary Pact to work towards the transformation of agrifood systems and to promote the right to adequate food for all.
“This event has demonstrated that the first meeting of parliamentarians in 2018 in Spain was not a coincidence. A process has begun today in Chile that will continue in other continents. The Food and Agriculture Organization of the United Nations (FAO) will continue to provide technical support to legislative actions that contribute to guaranteeing the right to adequate food”, said Mario Lubetkin, FAO’s Assistant Director-General and Regional Representative for Latin America and the Caribbean, welcoming the Pact at the Summit’s closing ceremony.
In the text, over 200 parliamentarians, 15 presidents and vice-presidents of national and regional parliaments and parliamentary bodies from 64 countries agree to commit themselves to work for a transition towards agrifood systems that are sustainable, inclusive, equitable, resilient and conducive to the realization of the right to adequate food for all.
Explainer: What is Russia’s problem with the Black Sea grain deal? (Reuters)
President Vladimir Putin said this month that Russia was considering withdrawing from the Black Sea grain deal as he accused the West of cheating Moscow because it still faced obstacles getting its own agricultural goods to world markets. Putin said he would discuss the future of the grain deal with visiting African leaders on Saturday.
The United Nations and Turkey brokered the Black Sea Grain Initiative last July to help tackle a global food crisis worsened by Moscow’s invasion of Ukraine and blockade of its Black Sea ports. It allows food and fertilizer to be exported from three Ukrainian ports - Chornomorsk, Odesa and Pivdennyi (Yuzhny). The deal has been extended three times, most recently until July 17.
The poorest in the world were hit worst by the rising global food prices. The U.N. World Food Programme (WFP) warned in March last year that its ability to feed some 125 million people was under threat because 50% of its grain came from Ukraine. Between 2018–2020, Africa imported $3.7 billion in wheat (32% of total African wheat imports) from Russia and another $1.4 billion from Ukraine (12% of total African wheat imports), according to the United Nations. The United Nations said last year that 36 countries count on Russia and Ukraine for more than half of their wheat imports, including some of the poorest and most vulnerable, including Lebanon, Syria, Yemen, Somalia and Democratic Republic of Congo. Under the Black Sea grain deal, more than 625,000 tonnes of grain has so far been shipped by the WFP for aid operations in Afghanistan, Ethiopia, Kenya, Somalia and Yemen. In 2022, WFP procured more than half its global wheat grain from Ukraine.
Guterres calls for phasing out fossil fuels to avoid climate ‘catastrophe’ (UN News)
“We are hurtling towards disaster, eyes wide open”, he said. “It’s time to wake up and step up.” Mr. Guterres was speaking to journalists at UN Headquarters following a meeting with civil society climate leaders from across the world.
He said limiting global temperature rise to 1.5 degrees Celsius is still possible but will require a 45 per cent reduction in carbon emissions by 2030. However, current policies will lead to a 2.8°C temperature rise by the end of the century, which “spells catastrophe”.
He called for immediate global action toward net-zero emissions, which “must start with the polluted heart of the climate crisis: the fossil fuel industry.”
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South Africa extends ban on scrap-metal exports by six months as it seeks to curb theft (Engineering News)
South Africa extended a ban on scrap-metal exports by six months as the government tries to combat theft and vandalism of public infrastructure.
Trade and Industry Minister Ebrahim Patel also ordered the International Trade and Administration Commission of South Africa to not accept or process any applications for export permits for ferrous and non-ferrous waste and scrap metal, according to a notice published in the Government Gazette on Thursday.
The theft and export of copper cables has had a severe impact on the economy and been a major contributor to power cuts and disruptions on rail lines. The ban was first proposed in August to combat illicit trade in these materials and was approved by cabinet in November.
Trade portal to bridge information gap among exporters (Monitor)
Information gap in the market has been listed as one of the challenges frustrating Ugandan exporters, according to the Ministry of Trade, Industry and Cooperatives.
Addressing exporters of fresh fruits and vegetables in Kampala on Wednesday, Ms Mary Amumpaire, the ICT officer at the Ministry, however, said a trade portal developed by the ministry can be used to relieve the exporters such frustration.
“The trade information portal ensures access to information needed to streamline the export process and fill the information gap,” she said. The portal, she argues “Is a platform providing access to fully transparent practical step-by-step guides to license, pre-clearance permits and clearance formalities for the most traded goods in and out of Uganda.”
South Sudan releases Ugandan maize, trucks one month later (Monitor)
The State Minister for Foreign Affairs, Mr Henry Okello Oryem, has said the South Sudanese authorities have released maize and trucks from Uganda, a month after they were blocked at the border.
Mr Oryem yesterday told Daily Monitor: “Our embassy continued to engage them [South Sudan government] and our lorries have all been released and they have come back to Uganda since Wednesday. They were forced to come back with the maize and their consignment, but we wonder why because UNBS [Uganda Bureau of Standards] has got higher standards than theirs.”
The South Sudan National Bureau of Standards (SSNBS) impounded 62 trucks loaded with maize grains, maize flour, and wheat on May 15 on allegations of failing to pass the test for contamination with aflatoxin. Ugandan traders and officials protested the move.
Tunisia sees huge potential for enhancing trade, investment ties with China (Xinhua)
Tunisian trade officials and business leaders on Thursday highlighted the huge potential for enhancing the North Africa country’s trade and investment relations with China.
“This would be possible and achievable given the potential in the fields of green technology, renewable energy, pharmaceuticals, construction and infrastructure, health, tourism and technological and digital innovation,” Salma Elloumi, first vice-president of Confederation of Citizen Enterprises of Tunisia (CONECT International), told a Tunisia-China economic and commercial meeting held in the Tunisian capital of Tunis.
“We should also explore the possibilities of increasing professional exchange between Tunisian and Chinese companies,” Elloumi said.
Statistics presented during the meeting showed that the trade volume between Tunisia and China reached about 763 million U.S. dollars in the January-April period in 2023, an increase of 12.5 percent from the same period last year.
Jalel Tebib, director general of the Foreign Investment Promotion Agency (FIPA), noted that China is Tunisia’s 4th largest commercial partner in the world and its largest partner in Asia. In 2022, China was Tunisia’s second largest supplier, he added.
São Tomé and Príncipe Accedes to the Establishment Agreement for Afreximbank’s Fund for Export Development in Africa (FEDA) (Afreximbank)
The Fund for Export Development in Africa (FEDA), the development impact-focused subsidiary of the African Export-Import Bank (Afreximbank), has announced that Democratic Republic of São Tomé and Príncipe has become the latest country to sign the FEDA Establishment Agreement.
The accession to the agreement, achieved under the guidance of Prime Minister Patrice Trovoada of São Tomé and Príncipe, demonstrates the country’s support for Afreximbank’s efforts to broaden FEDA’s effectiveness by mobilizing its Member States to sign and ratify the FEDA Establishment Agreement and to support the organization’s impact investing objectives.
New memberships broaden the scope of FEDA’s interventions and underpin the Fund’s dedication to its mission of delivering long-term capital to African economies with a focus on industrialization, intra-African trade and value-added exports.
4 more countries sign up for $25bn Nigeria-Morocco pipeline project (Vanguard)
Four more countries have signed up for the 5,000Km Nigeria-Morocco gas pipelines project estimated to cost about $25 billion to construct.
The project which is an extension of the West African Gas pipeline now has 13 countries on board. The new countries which signed a memorandum of understanding at the ECOWAS Secretariat on Friday are Republic of Benin, Guinea, Liberia and Ivory Coast.
They join Nigeria, Morocco, Ghana, Senegal, Gambia, Guinea Bissau, Sierra Leone, Togo and Mauritania for the multi-billion dollar pan-African project expected to deliver about four billion cubic feet of gas daily when fully operational.
AfCFTA provides opportunity for companies to export to all of Africa-Manake (News Invasion)
The Assistant Minister of Trade and Industry, Beauty Manake, says the African Continental Free Trade Area (AfCFTA) is an opportunity for local companies to export and expand their market within the African continent following the agreement to eliminate trade barriers in order to boost intra-Africa trade.
Manake said this while paying a courtesy call to the management of Chloride Exide Botswana (CEB) in Phakalane yesterday.
For her part, the Acting Director of the Department of Trade Development, Johanna Segotlong, said Botswana Investment and Trade Centre (BITC) and Financial Assistant Policy had contributed tremendously to the success of CEB locally by securing work permits for the Company’s skilled battery manufacturing, engineering and financial personnel.
She added that more importantly, through the export promotion of CEB’s products into the SADC market, the policy will enable the Company to become a predominately export based company over a short period.
India’s economic focus in Kenya pivots, as Asia eyes the market potential of East Africa’s 312 million people (Business Insider Africa)
Asian countries are expected to boost their investment in Kenya during the next years, according to the United Asian Network, the organization that unites all Asian nations. India would target the bigger EAC region, which has an estimated market of 312 million people, with its increasing investments.
Speaking on the sidelines of the week-long conference commemorating 75 years of India’s independence, UAN Chairman Bimal Kantaria said they will assess the contribution from a variety of angles. As a result, Asian countries will be able to plan their investments in a way that will have the biggest impact.
“Over the next five to ten years IT is going to be very important, service industry, agriculture, millet, and some of these big investments that we are talking about are going to be the future of India’s investment into the country,” said Kantaria.
India has become Kenya’s third-largest trading partner, according to the Economic Survey 2023. According to the report, India is the third-largest source of imports, although the value of items sent to Kenya fell to Sh230.9 billion last year from Sh250 billion the year before. The majority of the trade volumes sent to Kenya throughout the year were valued at 69.1% of their value from the Asian continent.
East African budgets for 2023/24
EAC finance ministers table 2023/24 Budgets (The East African)
East African Community (EAC) countries expect overall national government spending to rise in the upcoming financial year (July 1 to June 30).Kenya, Tanzania, Uganda, and Rwanda are to present their 2023/2024 budgets before their respective parliaments on Thursday. According to the EAC Treaty, finance ministers of the partner states read their budgets simultaneously, under a common theme.
The exemptions are Burundi, South Sudan and latest entrant the Democratic Republic of Congo.
Kenya’s National Treasury and Planning Cabinet Secretary, Njuguna Ndung’u, a former central bank governor, will present his maiden Ksh3.6 trillion ($25.75 billion) budget for 2023/24, a 6.5 percent increase from the Ksh3.38 trillion ($24.18 billion) the previous year.
In Tanzania, the Minister of Finance and Planning, Dr Mwigulu Nchemba, will read his third budget of $19.23 billion (Tsh44.38 trillion), up seven percent from Tsh41.48 trillion ($18 billion).
Uganda’s $13.9 billion (Ush52.74 trillion) budget is being presented by Finance minister Matia Kasaija who has held the post since March 2015. The government has increased its spending plan by Ush4.606 trillion ($1.2 billion) from Ush48.13 trillion ($13 billion) in 2022/2023.
Dr Uzziel Ndagijimana Rwanda’s Minister of Finance and Economic Planning, appointed in 2018, is presenting a Rwf5.03 trillion ($4.4 billion) budget. Kigali has increased its spending plan by 5.6 percent from Rwf4.67 trillion ($4.1 billion) the previous fiscal year.
Manufacturers handed mixed bag in ‘Hustlers’ budget (People Daily)
Treasury Cabinet Secretary Prof Njuguna Ndung’u budget offered a mixed bag of goodies for local manufacturers and investors eyeing Kenya with a raft of proposals that will cushion some but hit others hard.
The CS proposed an extension of the exemption to locally purchased machinery for used by pharmaceutical companies to be exempt from VAT on importation. He however proposed the introduction of excise duty on imported sugar at the rate of Sh5 per kilo excluding the sugar imported or purchased locally by registered pharmaceutical manufacturers for use in the manufacture of pharmaceutical products.
State slashes tax on imported rice, wheat to increase supply (Nation)
The East African Community (EAC) has allowed Kenya to reduce import duty levied on rice and wheat to rates below the bloc’s common external tariff to help address the high food prices in the country.
Rice imported from countries outside the region will now be subject to a custom duty of only 35 per cent, instead of the 75 per cent charged under the EAC common tariff, while wheat from outside the region will be taxed at 10 per cent, instead of EAC’s rate of 35 per cent.
National Treasury Cabinet Secretary Njuguna Ndung’u said the move will help meet the domestic demand of rice and wheat in efforts to bring down the high food prices Kenyans are currently grappling with.
IMF, World Bank fingerprints on Kenya’s $26bn Budget (The East African)
Treasury Cabinet Secretary Njuguna Ndung’u on Thursday read his first Budget speech that had fingerprints of the International Monetary Fund (IMF) and the World Bank, a signal that President William Ruto is keen to implement the stringent conditions that came with loans from the Bretton Woods institutions. The 129-page Budget speech sought to explain the motivation behind the far-reaching revenue
Agro-industrialisation budget boosted (Monitor)
Uganda’s agro-industrialisation programme has received a boost with government increasing allocations from the Shs1.449 trillion last year to Shs1.787 trillion in the 2023/24 budget read yesterday by Finance minister Matia Kasaija.
The increase means the sector will account for 3.37 percent of the total Shs52.7 budget.
Following government’s shift to programme-based-budgeting in 2021, agriculture was allocated a cumulative total of Shs3.1 trillion; Shs1.67 trillion in 2021/22 and Shs1.453 trillion in 2022/23. In 2021/22, attention was focused on projects aimed at increasing commercialisation and competitiveness in agricultural production and agro-processing. These included; developing commodity value chains between farmers and the market; building regional warehouse storage capacities; providing affordable long-term agricultural financing and insurance and development of infrastructure to enable the private sector take advantage of export market opportunities.
The government plans to transform Uganda’s agriculture through agro-industrialisation, one of the programmes in 2021/25 NDP III. The objective is to increase total export value of processed agricultural commodities from; $935 million in 2020 to $2.7 billion; increase the agricultural sector growth rate from 3.8 to 6.0 percent, among others.
Ms Kirabo said the planned focus on agro-industrialisation should ensure access to credible inputs like seeds, acaricides and pesticides. “Let us stop looking at the increased figure. We should dig deep. Each year the population grows at 3.2 percent, meaning those are more mouths to feed. Does the increment cater for that?... Countries like our neighbour in Kenya know their staple food is maize flour and in their budget they already know what amount of grain they will import which is not the case with our budget,” she said.
Museveni roots for value addition in agriculture (Monitor)
President Museveni looked the picture of health as he appeared on Zoom yesterday to rally Ugandans behind the push for value addition which will make Uganda’s exports more competitive on the world market. This policy shift will help the country claw back billions lost to trading in unprocessed goods, he enthused.
Speaking after Finance minister Matia Kasaija had read the 2023/2024 national budget, Museveni states: “The Import substitution value of these industrial products is about $3.6 billion and they are bringing into the country as export earnings $1.6 billion,” he said to the audience gathered at Kololo Ceremonial Grounds.
Mr Museveni said desired levels of growth will be achieved through collective action, with lawmakers and other leaders getting behind wealth creation initiatives like Emyooga and the Parish Development Model.
Rwanda abolishes customs tax on imported electric, hybrid vehicles (Xnihua)
Rwanda has abolished import taxes on electric vehicles, as well as vehicles that utilize both electricity and petroleum products (hybrids), including electric motorcycles, to encourage the adoption of electric vehicles and contribute to a cleaner and greener future, Minister of Finance and Economic Planning Uzziel Ndagijimana has said.
“To expedite the adoption of electric vehicles and mitigate emissions associated with petroleum-based transportation, imported electric cars, hybrid cars, and even imported electric motorcycles will be exempt from customs taxes,” the minister said Thursday while presenting the 2023-2024 fiscal year budget to the Rwandan parliament.
In a related development, Ndagijimana announced that the government has decided to charge lower customs duties compared to those imposed at the East African Community (EAC) level on a wide range of imported commodities such as rice, sugar, cooking oil, and fish, to make these important and essential goods more affordable for Rwandans.
Regional MPs call for action as EAC faces high trade deficit (The New Times)
The East African Community (EAC) is grappling with a significant trade deficit, with its import bill far surpassing its export revenues, according to data from the bloc.
This concerning situation highlights the urgent need for increased efforts to boost economic output and improve the livelihoods of its citizens, as emphasized by members of the East African Legislative Assembly (EALA).
During the EALA plenary on June 13, the Chairperson of the Council of Ministers, Ezéchiel Nibigira, presented the budget estimates for the EAC’s financial year 2023/2024. He disclosed that the total trade within the EAC had increased by 13.4 percent, reaching $74 billion in 2022 compared to $65.2 billion in 2021.
However, Nibigira further revealed that the region’s total exports to the rest of the world amounted to $20.1 billion in 2022, while its imports from the rest of the world exceeded $53.8 billion. These figures indicate that the EAC is predominantly a net importer, resulting in a high trade deficit.
Exploiting natural gas can be a win-win for both Africa and Asia – Experts (AfDB)
Against the backdrop of the Russia-Ukraine conflict and its impacts on food and fuel prices worldwide, representatives of the private and development sectors attending an online conference organized by the African Development Bank expressed consensus that exploiting Africa’s natural gas resources offered benefits for both African and Asian countries.
The African Development Bank’s Asia External Representation Office and its African Natural Resources Management and Investment Centre jointly organized the event, titled “A New Vision for Africa: Asia-Africa Cooperation on Natural Gas.
It aimed to spur exploration of the challenges facing global natural gas markets, including inadequate long-term investments, climate change risks and energy security concerns.
Nosizwe Nokwe-Macamo, Executive Chairman and Founder of Raise Africa Investments Pty Ltd, raised the issue of energy poverty in Africa. She said: “we have challenges on the supply side, and we’ve got huge challenges as well on the demand side.” She emphasized the urgent need for reliable and affordable energy sources.
Dr. Vanessa Ushie, Acting Director of the African Development Bank’s African Natural Resources Investment and Management Centre, called for a balancing of short to medium term opportunities for Africa to meet rising energy demand from Asia, against longer term climate change and energy transition risks. “Africa needs to move on the value chain. This is our strategic approach for all commodities, including natural gas.” She also underscored the importance of exploring inclusive and sustainable long-term solutions that are of benefit to both regions.
Food and fertilizer trade to Africa may be hampered, depending on the decision Putin makes (Business Insider Africa)
A team of African leaders is set to visit Ukraine and Russia starting this week to bring Russia’s 16-month-long war to a conclusion, and Putin has stated that he intends to discuss the Black Sea grain agreement. According to a draft framework paper seen and reported by the American news agency, Reuters on Thursday, African leaders may potentially propose to Putin an “unconditional grain and fertilizer deal.”
The Russian president, on Tuesday, noted that Russia was considering withdrawing from the Black Sea grain effort, which the United Nations and Turkey negotiated in July of last year because its grain and fertilizer supplies are being hampered. The agreement might expire on July 17.
According to Vincent Magwenya, spokesperson of South African President Cyril Ramaphosa, Putin and Ukrainian President Volodymyr Zelenskiy agree on the “importance of grain deliveries to Africa for the alleviation of food insecurity.”
In remarks to reporters on Thursday, U.N. Secretary-General Antonio Guterres expressed his hope that the discussions between Russian President Vladimir Putin and the leaders of Africa would result in “a positive outcome with regard to the Black Sea initiative, as well as with regard to the efforts that we are making for the exports of Russian food and fertilizer.
Although Russia’s food and fertilizer exports are not subject to the harsh sanctions the West has placed on it because of the war, Moscow claims that limits on payments, logistics, and insurance present obstacles.
Africa endowed with productive marine ecosystems to spur Blue Economy (KBC)
Experts now say Africa’s ecosystems, teeming with a robust biodiversity, are well placed to ensure realization of the aspirations of growth in the continent’s Blue Economy industry especially as envisaged in the African Union Agenda 2063.
The acting Director of the African Union – InterAfrican Bureau for Animal Resources (AU-IBAR) Dr. Nick Nwankpa says that the African continent is well endowed with productive ecosystems to provide resources for sustainable livelihoods, food security and wealth.
Speaking at the Knowledge Fair organised by the ECOFISH Programme in partnership with the African Union InterAfrica Bureau for Animal Resources (AU-IBAR) and the Inter-Governmental Authority on Development (IGAD), AU-IBAR official noted that despite the crucial role that ecosystems play in socio-cultural and economic development, Aquatic biodiversity and ecosystems are highly threatened by unsustainable exploitation and “other practices that risk continued supply of ecosystem services.”
With the blue economy concept coming in to promote the sustainable use of aquatic resources for economic growth, improved livelihoods and jobs, and the enhancement of aquatic ecosystem health, AU-IBAR says that the African continent has instituted various efforts towards developing the various sectors of the blue economy with the Africa Blue Economy Strategy (ABES) as one of the measures aimed at realizing the envisaged goals.
The strategy themed “Developing a sustainable blue economy; increasing momentum for Africa’s Blue Growth”, has the objective of guiding the development of an inclusive and sustainable blue economy that becomes a significant contributor to continental transformation and growth through: “advancing knowledge on marine and aquatic biotechnology; environmental sustainability; the growth of Africa-wide shipping industry; the development of sea, river and lake transport; the management of fishing activities on these aquatic spaces; and the exploitation and beneficiation of deep-sea minerals and other resources.”
Barbados to host first global supply chain forum in May 2024 (UNCTAD)
UNCTAD and the Government of Barbados will hold the first Global Supply Chain Forum in the country’s capital, Bridgetown, from 21 to 24 May 2024.
Government officials, business leaders and experts will explore how to promote development through sustainable and resilient transport and logistics, improved connectivity and trade facilitation.
“To help resolve the current cascade of global crises and prepare for the future, we need shipping and supply chains to be more efficient, more resilient and far greener,” UNCTAD Secretary-General Rebeca Grynspan said. “Strong, resilient and predictable supply chains will be critical to help developing countries manage the ongoing impact of the poly-crisis,” said Matthew Wilson, ambassador of Barbados to the United Nations in Geneva.
He said the forum will offer countries a platform to create solutions that support climate change adaptation, food security and economic growth.
Trillions Wasted on Subsidies Could Help Address Climate Change | World Bank Report
Trillions of dollars are wasted on subsidies for agriculture, fishing and fossil fuels that could be used to help address climate change instead of harming people and the planet, a World Bank report says.
The report, Detox Development: Repurposing Environmentally Harmful Subsidies, says global direct government expenditures in the three sectors are $1.25 trillion a year—around the size of a big economy such as Mexico. To subsidize fossil fuel consumption, countries spend about six times what they pledged to mobilize annually under the Paris Agreement for renewable energies and low-carbon development.
The report notes that government subsidies of $577 billion in 2021 to artificially lower the price of polluting fuels, such as oil, gas, and coal, exacerbate climate change, and cause toxic air pollution, inequality, inefficiency, and mounting debt burdens. Redirecting these subsidies could unlock at least half a trillion dollars towards more productive and sustainable uses.
Pricing emissions from shipping: Where should the money go? (World Bank Blog)
The backbone of worldwide trade, international shipping moves more than 80 percent of global trade by volume. As a result, international shipping accounts about three percent of global greenhouse gas emissions. Unless shipping moves to zero-carbon fuels and innovative technologies to green its energy footprint, the latest estimates suggest that carbon emissions will grow by 90-130 percent by 2050, as compared to 2008 levels.
The International Maritime Organization (IMO), a UN agency, aims to cut those emissions as soon as possible, with a goal of halving them (as compared to 2008 levels) by 2050. Member states are currently revising shipping’s climate ambition to set a course consistent with the temperature goals of the Paris Agreement.
To do that, the IMO is focusing on energy efficiency, new zero-carbon fuels and technologies, and ways to make these changes cost effective and equitable for countries. Putting a price on carbon emissions is one way to do that. A carbon tax sets a price on carbon and can help reduce GHG emissions and generate revenue. Estimates show that, in shipping alone, putting a price on carbon could raise $40 to $60 billion dollars each year between 2025 and 2050.
A climate finance goal that works for developing countries (UNCTAD)
After years of failing to meet climate finance commitments, the new climate finance goal under discussion this week in Bonn is critical, but without supporting reforms of the global financial architecture we risk repeating past mistakes.
This goal will replace the climate finance commitment set in 2009, which aimed to mobilize $100 billion per year for developing countries by 2020. The $100 billion commitment, which in any case has not been met, will expire in 2025.
It’s commonly understood that the $100 billion goal is a fraction of what is needed to support developing countries to achieve climate goals in accordance with the Paris Agreement.
In the United Nations Framework Convention on Climate Change’s recent analysis of financing needs, developing countries require at least $6 trillion by 2030 to meet less than half of their existing Nationally Determined Contributions.
UNCTAD outlined four priorities at an event entitled “Options for Scaling Climate Finance” co-hosted with the German development agency GIZ and The Energy and Resources Institute at the Bonn Conference on 6 June.
Top MDBs collaborate to accelerate the circular economy (The Manila Times)
THE world’s leading Multilateral Development Banks (MDBs) are stepping up their cooperation to promote the circular economy. The banks announced their combined effort at the World Circular Economy Forum (WCEF2023) in Helsinki.
“Until now, financing for circular economy projects has remained marginal. Now we want to change that. Developing the capacity and tools for the proper assessment of circular economy investment will require collaboration between financial institutions. The financing of innovation is particularly important to support the emergence of circular economy solutions,” said Ambroise Fayolle, vice president of the European Investment Bank (EIB).
It is difficult for a single company to gain financing because, in the circular economy, value is created in value chains made up of several companies. Companies may also use new business models or technologies that investors consider risky.
The MDBs that agreed during WCEF2023 to tighten their cooperation aim to increase the share of impactful circular economy projects in their financing. Banks see the potential of the circular economy in achieving economic success in their target countries and in improving the ability of economies to respond to unexpected challenges and changing circumstances.
Members address financial inclusion, transport and logistics during services week (WTO)
WTO members discussed transport and logistics services, as well as financial inclusion, at two events organized on 13 and 14 June under the aegis of the Council for Trade in Services and the Committee on Trade in Financial Services respectively. They reviewed exemptions to the WTO’s most favoured nation (MFN) principle at a dedicated Council meeting on 12 June as well as other issues. A webinar organized on 13 June as part of the “Simply Services” series looked at the impact of decarbonization on transport services.
In the Services Council, members also addressed implementation issues from the 12th Ministerial Conference (MC12) related to WTO reform and pandemic response, the Least-Developed Country (LDC) Services Waiver — which seeks to boost the participation of LDCs in services trade — and the E-commerce Work Programme. Also under consideration were various concerns reiterated by members regarding measures affecting trade in services.
High-level panel urges action on triple planetary crisis at Trade and Environment Week (WTO)
Trade policy must be urgently and collectively wielded to address the triad of environmental problems posed by climate change, pollution, and biodiversity loss, a high-level panel of speakers said at the fourth edition of Trade and Environment Week held on 12-16 June at WTO headquarters in Geneva. The week featured 18 sessions centred around the theme of collective approaches in addition to a meeting of the WTO’s Committee on Trade and Environment (CTE).
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Nigeria Finance Act 2023: Increased taxes and import levy aim to boost revenue (Nairametrics)
The Finance Bill 2023 which was signed into law on 28 May 2023 by former President, Muhammadu Buhari imposes an 0.5% levy on goods imported into Nigeria from outside Africa. This is in addition to current custom duties and other approved charges.
Beyond the additional import levy of 0.5%, the bill has amendments to the following tax laws, among others: Customs, Excise Tariff, Etc (Consolidation) Act, Petroleum Profits Tax Act (PPTA), Value Added Tax Act (VATA), and Public Procurement Act. The Act seeks to provide support for the funding of the 2023 budget through an improvement in the tax administration.
The country’s fiscal position remains constrained due to poor revenue generation capacity, especially oil revenue. Non-oil revenue projections for 2023 will likely be surpassed in our view especially with the provisions of the finance act.
Despite the growing concerns about the multiplicity of taxes, the new Finance Act 2023 introduces new taxes while increasing some of the existing tax rates. The penalty for various infractions and tax offences for companies operating within the downstream petroleum sector was also increased.
Bridging gender data gaps for inclusive development in Mozambique (UNECA)
Mozambique is making significant progress towards achieving the Sustainable Development Goals (SDGs) by prioritizing gender data collection. The government recently hosted a series of workshops and meetings aimed at strengthening gender statistics in the country.
The primary objective of the CB-GenSMS project is to improve the availability of reliable data, which is crucial for designing evidence-based policies that promote gender equality and women’s empowerment across Africa.
Recognizing the importance of comprehensive data for policymaking, the Mozambican government has taken proactive measures to ensure its availability. This includes the publication of the report "Men and Women in Mozambique" and the upcoming release of the Demographic and Health Survey (DHS).
To assess progress, identify challenges, and inform policy formulation, Mozambique produces periodic reports aligned with important frameworks such as the Beijing Platform for Action and the United Nations Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW).
Despite these advancements, the country still faces gender data gaps in crucial development areas, requiring targeted policies and focused attention.
AfFCTA cannot prosper without vibrant Zim: AfDB (The Herald)
African Development Bank (AfDB) president Dr Akinwumi Adesina believes development partners need to “walk with” Zimbabwe at the time the country is reeling under the heavy burden of illegal economic sanctions.
Dr Adesina revealed this at a meeting to discuss Zimbabwe’s arrears clearance and debt resolution held during the AfDB’s annual meetings in Sharm El Sheikh, Egypt.
During the session, Zimbabwe’s Government, led by President Dr Emmerson Mnangagwa, briefed the bank group’s governors on the ongoing Structured Dialogue Platform with the country’s s creditors and development partners.
Why digitalisation is crucial to Nigeria, Africa’s supply chains (The Guardian Nigeria)
To meet increasing demands for goods and services in Nigeria and other African cities, Regional Head of Integration and Business Growth, Maersk, Mr. Darryl Judd, has charged the Nigerian government and leaders across the continent to improve investment in modern digital solutions to tackle emerging inefficiencies in supply chains.
Judd, who spoke, yesterday, on ‘Logistics 4.0: Accelerating Africa’s Digital Revolution’, on the sidelines of the Africa CEO Forum in Abidjan, explained that with COVID-19 disruption of the market in Nigeria and others, there was need to build resilience through integration of digital solutions to help supply chains function.
Africa contributes about $2.7 trillion to the global economy from 54 countries that are part of the African Continental Free Trade Area (AfCFTA).
However, intra-African trade only corresponds to 14 per cent of the total trade, owing to high tariff and non-tariff trade costs. For instance, agriculture contributes to 15 per cent of Africa’s Gross Domestic Product (GDP) and 60 per cent of Africa’s employment. The use of mobile apps, digital payments and an increase in e-commerce are levers that could improve intra-African trade from agricultural produce and substitute imports.
Findings show that it is more expensive to ship goods from South Africa to Nigeria due to supply chain complexities. A major challenge in Nigeria and the continent’s logistical sector is delay, due to various customs regulations, poor road networks, slow processing and clearance of goods, and inadequate storage. But Judd said these could be eliminated through improved digital technology.
He said digital solutions, like block chain initiatives, trade lane, artificial intelligence and others would provide needed visibility of the market.
With Delivery of Free Fertilizer to Nigeria, Moscow Recalibrating its African Strategy (Modern Diplomacy)
Moscow has embarked on soliciting full-fledged support for its ‘special military operation’ in neighbouring Ukraine by offering ‘no-cost delivery’ of grains and fertilizers promised by Russian President Vladimir Putin. Putin has reiterated that deliveries to ear-deafening applause during the last inter-parliamentary conference Russia-Africa held in March.
Foreign Minister Sergey Lavrov made this one of the core content of his speech during his last trip to South Africa through Kenya to Burundi and Mozambique in southern Africa. Malawi and Kenya have recieved their consignments. Moscow intends to deliver a shipment of Russian fertilizers to Nigeria free of charge in the near future, Foreign Minister Lavrov said at a press briefing in Burundi.
“Last September, President Vladimir Putin announced that we were ready to deliver 300,000 tons of our fertilizers, illegally seized in EU ports, to African countries free of charge. Fully in line with colonial practices and habits, the EU leadership blocked this initiative. It took us 6 months to get, at least, the first shipment of 20,000 tons to Malawi, and just recently another shipment of a similar amount of fertilizer was delivered to Kenya. The same shipment is scheduled to go to Nigeria soon,” he stressed in his speech in Bujumbura, capital of Burundi.
Russia, Algeria To Agree “Expanded Strategic Partnership” (Russia Briefing News)
Abdelmadjid Tebboune, the Algerian President is currently on a state visit to Russia, that is expected to culminate in the signing of an “Expanded Strategic Partnership” between the two countries. Algiers has been showing an interest in working more closely with Moscow and other leading non-Western players, and has confirmed its readiness to join the BRICS group later this year. Algeria could become Russia’s outpost in North Africa and a partner in the global gas market.
In terms of market size, Algeria has the tenth-largest proven natural gas reserves globally, is the world’s fourth-largest gas exporter, and has the world’s third-largest untapped shale gas resources. It also ranks sixteenth in proven oil reserves and exports about 60% of its total energy production.
Stanislav Mitrakhovich, of Russia’s Financial University and the National Energy Security Fund, said that “Algeria is one of the largest gas suppliers to the EU, and European politicians have been trying to convince it to increase gas supplies. However, domestic consumption in Algeria is also growing and increased production demands large-scale investments. Algeria will increase LNG [liquified natural gas] supplies but the situation is more complicated with pipeline exports:
Mitrakhovich added that “Under current conditions, Russia could offer Algeria, if not complete market sharing, at least assistance in coordinating issues concerning priority export destinations and counteracting attempts by Western countries to introduce gas price limit mechanisms, as well as in handling discrimination by European politicians against gas as an energy resource. Russia also has proposals for Algeria on nuclear energy and agriculture.”
Current Russia-Algeria bilateral trade is worth about US$1.65 billion with the vast majority of that being Russian exports to Algeria, although that, in light of enhanced energy cooperation, may change.
Fresh sugar tax locked to imports in revised budget (Nation)
Consumers and industrialists may get relief if Parliament approves a proposal to shelve a new excise tax charge on sugar and confectionery.
The Treasury, in its Finance Bill 2023, has proposed to charge a Sh5 excise tax per kilogramme of sugar and Sh42.1 per kilogramme of locally manufactured confectionery, which could increase the consumer prices of the sweetener.
The Finance and Planning Committee of the National Assembly, however, proposes that the excise taxes would only apply to imported sugar and confectionery, shielding consumers from higher prices of the commodity and safeguarding the competitiveness of millers and manufacturers of sugar-based products.
"The proposal to impose excise duty (Sh42.1 per kilo) on locally-manufactured confectionery will drive several local companies out of business as it will make them uncompetitive and their products unaffordable. This move will eliminate the competitiveness of the local confectionary industry against imports as the retail prices will increase due to the excise duty cost that will be passed on to the consumers," said the KAM in reaction to the Finance Bill 2023.
"It will also erode the competitiveness of locally produced confectionery products in regional export markets such as Tanzania and Uganda, where similar proposals to make local confectionary excisable were rejected after lawmakers assessed the negative impact on the industry."
EAC launches campaign to promote agricultural exports (The Standard)
The East African Community (EAC) has unveiled a new campaign aimed at raising awareness about trade opportunities in agricultural exports through the EU-EAC Market Access Upgrade Programme (MARKUP).
The campaign, titled MARKUP: Growing Agri Export Markets, will provide valuable information and resources to small and medium-sized enterprises (SMEs) in the agricultural value chain, co-operatives, farmers, and government entities across the region.
Speaking at the campaign launch, the acting director of trade at the EAC Flavia Busingye highlighted the significant trade prospects for agri-SMEs. She emphasised the campaign’s objective of showcasing that international markets are within reach for East African exporters.
Ms Busingye acknowledged the challenges faced by SMEs in the agriculture sector, including limited access to market information, cumbersome customs procedures, and poor connectivity, particularly when it comes to accessing markets outside the EAC.
The Economic Community of West African States (ECOWAS), in collaboration with the United Nations Development Programme (UNDP) and the International Trade Centre (ITC), organized a regional capacity building workshop for Master Trainers from Business Associations on the African Continental Free Trade Area (AfCFTA) from 6 – 8 June 2023 in Abuja – Nigeria.
In her remarks, Madame Massandjé TOURE-LITSE, the ECOWAS Commissioner for Economic Affairs and Agriculture, highlighted the need for West African businesses to take advantage of the opportunities provided by the African continental market. She reiterated the commitment of the ECOWAS Commission to support the Private Sector to unlock investment, boost production and promote business linkages. Finally, she urged network of Trainers to accompany Micro, Small and Medium Enterprises (MSMEs), especially women and youth entrepreneurs, to start trading under the AfCFTA.
During the 3-day workshop, participants from Business Associations were trained on key elements of export readiness, including export market research, export strategy, as well as operational tools of the AfCFTA. The Masters Trainers were empowered to sensitize businesses on the benefit of the AfCFTA and help them start trading in the continental market.
Africa unbanked population threatens eco-stability (Tanzania Daily News)
Over 350 million adults in Africa are unbanked and primarily excluded from the formal economy, relying heavily on cash or informal providers for their financial needs, which is costly, risky and leaves them vulnerable to economic instability. This is according to AfricaNenda annual report, an African-led institution that is working to unlock the potential of inclusive digital financial services on the continent.
The institution’s interventions aim at reducing vulnerability to economic shocks by those excluded from the financial system, particularly women in rural areas.
AfricaNenda Chief Executive Officer (CEO), Dr Robert Ochola, said the need for a more inclusive society is becoming increasingly urgent. “…One of the fastest ways to achieve this is by putting in place systems that expand access to financial services and leave no one behind. Instant and inclusive payment systems can play a pivotal role in creating universal access to financial services for all Africans,” he said.
AfricaNenda launched the first State of Instant and Inclusive Payment Systems in Africa (SIIPS) report last year. The report offered a comprehensive view of Africa’s current instant payment systems landscape, revealing that more intentional and dedicated focus is needed to build the inclusivity of instant payment systems in Africa.
Maximizing green hydrogen production, export in Africa urgent: Mohieldin (Ahram Online)
UN Climate Change High-Level Champion for Egypt Mahmoud Mohieldin speaks during a session on positioning Africa as a global hub for green hydrogen held at the Africa CEO Forum in Abidjan on Wednesday.
Mohieldin, who is also the UN special envoy on financing the 2030 Sustainable Development Agenda, made the remarks on Wednesday during a session on positioning Africa as a global hub for green hydrogen held at the Africa CEO Forum in Abidjan, Ivory Coast.
The climate champion noted that African countries have promising national and regional initiatives in the field of green hydrogen, but regulatory frameworks and working principles are needed to overcome related challenges.
Mohieldin emphasized the importance of increasing demand for African green hydrogen from neighbouring countries and regions, particularly Europe. He added that Africa must also enhance the quality of green hydrogen production infrastructure, increase storage capacity and support supply chains.
Critical-mineral deals made up 66% of top 40 M&A in 2022 – PwC report (Bizcommunity)
The findings of this year’s report capture major themes and developments impacting the industry, especially the impact of the energy transition, which will shape the industry over the coming two decades. Miners will have to navigate the increasing role governments — and new players like automobile companies — are playing in the sector, while simultaneously ensuring they are well-positioned for the clean energy transition — which requires access to resources.
“Mining is playing a fundamental role in underpinning the global transition to clean energy, but the path ahead is rocky," says Paul Bendall, global mining leader, Mining & Metals, PwC Australia.
Critical minerals dominated deal activity in 2022 as miners raced to capitalise on the global transition towards clean energy, driven by two forces. First, the role many of these minerals play in the clean energy transition technologies, such as batteries, electric vehicles, and solar and wind generation. Second, the role of critical minerals in national defence, technologies and weaponry.
Africa’s minerals and energy potential: A modern-day ‘gold rush’ (ZAWYA)
When we examine the energy and resources sector on the African continent, there are two fascinating dynamics unfolding. If they both come to fruition, it will have a massive multiplier effect for the prosperity of the continent.
The first is the rise of battery metals or green minerals that include the likes of lithium, nickel, cobalt, copper, manganese and graphite, inter alia - all of which are abundant on the continent. Mozambique, South Africa, Tanzania, Zimbabwe, and the DRC are rich in these minerals and potentially provide a significant windfall for local miners and governments.
For context, South Africa holds 80% of the worlds manganese deposits, was the second largest producer of world palladium (at 80MT) in 2022, to date SA has supplied over 75% of the world’s platinum, and to date has supplied over 40% of the world’s gold, amongst other minerals. Zimbabwe is estimated to have the world’s seventh largest lithium deposits, while Mozambique, Madagascar, and Tanzania are all in the top 102 global reserves for graphite.
Importantly, discussions have recently moved beyond extracting for short-term profits to beneficiation for longer-term benefits. This includes employment, skills development, local shareholding, and support of corporate and social investment initiatives that uplift surrounding communities and shared value.
If one considers that the United Nations Economic Commission for Africa (UNECA) recently highlighted that nearly 70% of Africa’s exports are unprocessed commodities, it is a non-negotiable that there is a focus on creating an enabling environment to encourage mineral beneficiation and processing.
Visa launches new programme to accelerate Africa’s digitization (Ahram Online)
The announcement was made by Visa Executive Chairman Alfred F. Kelly Jr. at the event organized by Bloomberg New Economy Gateway Africa in Marrakech, Morocco.
The Visa Africa Fintech Accelerator will enable up to 40 startups per year to accelerate and grow through a three-month intensive learning program focused on business growth and mentoring. The launch of the Africa Fintech Accelerator program follows Visa’s recent pledge to invest $1 billion in Africa’s digital transformation and its long-term commitment to advancing Africa’s economies and driving inclusive growth.
Fintech startups across Africa can become part of the programme through an annual application process, beginning July 2023, that involves two phases.
“Africa has one of the most exciting and admired fintech ecosystems in the world, bringing outstanding entrepreneurial talent to a young digital-first population that is growing fast”, Kelly noted
Tunisia takes part in Third China-Africa Economic and Trade Expo (ZAWYA)
Some twenty Tunisian companies operating in the trade and industry sectors will be taking part in the third China-Africa economic and trade expo, to be held from June 29 to July 2 in Changsha, in central China.
African and Chinese businesspersons, experts and representatives of international financial institutions and chambers of commerce will be taking part in this event, which aims to strengthen Chinese-African cooperation, the Ministry of Commerce and Export Promotion said on Wednesday.
A China-Africa trade index will be published for the first time during this third expo. It will serve as a barometer for companies engaged in business and trade cooperation with their African partners.
How the Mena region is reshaping trade for the future (Global Trade Review)
The Middle East and North Africa (Mena) is undergoing a transformation, reclaiming its historical position at the heart of global commerce while simultaneously embracing the digital, sustainable and inclusive future. As corporates seek support from their banking partners to navigate this changing landscape, cutting-edge solutions are emerging to cater to their evolving needs.
Trade in Mena has long been synonymous with hydrocarbons, with the region’s vast natural resources underpinning its rapid economic growth for decades. However, recent years have seen a significant shift in the trade landscape, as governments embark on ambitious economic diversification initiatives to spur the development of new industries, such as technology, manufacturing, and renewable energy.
This transformation is driving a wave of innovation and entrepreneurship, as businesses across the region look to capitalise on emerging opportunities and adapt to the changing demands of global markets.
India-Africa Trade Needs To Realise Its Full Potential, Says Union Minister Piyush Goyal (Outlook India)
Union Minister of Commerce and Industry Piyush Goyal, while addressing the 18th CII-EXIM Bank Conclave on India-Africa growth partnership today in Delhi, said that India never works with any country with an expansionist approach. Instead, he said that India treats countries like a brother. Speaking at the event, Goyal said, "India is the 5th largest investor in Africa and we don’t intend to take over your ports, railways, etc. We don’t follow expansionist approach.”
He also highlighted the strong India-Africa trade which stands at around $100 billion. "India-Africa trade is growing at a healthy 9-10 per cent rate," Goyal said. Moreover, the commerce minister stressed on the need to ensure that trade between India and Africa is able to reach its true potential.
Highlighting the goal of taking India-Africa trade to $200 billion, Goyal said that Indian companies are looking for many more opportunities in Africa. "We will be delighted to partner with our African friends in helping develop your economies and create more jobs," Goyal said.
The EU’s landmark carbon tool presents major catch-22 for Africa (African Arguments)
To turn the tide on climate change, it is essential that high-emitting regions of the world take urgent action. However, not all climate action is made equal. Poorly designed policies can end up doing more harm than good.
We recently conducted a study into the European Union’s Carbon Border Adjustment Mechanism (CBAM), which will enter into force in its transitional phase in October 2023. The aim of the regulation is to reduce the risk of so-called “carbon leakage” whereby EU-based companies relocate their emissions-intensive operations to countries with weaker climate policies.
This is one of the EU’s landmark climate policies. Yet a study by the UN’s trade and development body UNCTAD that modelled the effects of CBAM found that the policy would reduce global emissions by a mere 0.1% (at a carbon price of $44/tonne) to 0.16% (at a carbon price of $88/tonne).
Our study found that CBAM’s economic repercussions will be far-reaching – and most strongly felt in Africa. Based on a carbon price of €87 ($94) per tonne (at the time of writing, the EU price of carbon was €88 per tonne), our modelling forecasts that the CBAM could reduce the continent’s GDP by 0.91%. This is equivalent to a fall of $25 billion at 2021 levels of GDP. Some of Africa’s least developed countries – including The Gambia, Mauritania, and Mozambique – will be especially hard-hit according to our projections.
Related tralac infographic: The European Union’s Carbon Border Adjustment Mechanism
How developing countries can measure exposure to the EU’s carbon border adjustment mechanism (World Bank Blog)
In less than three years, the European Union will require importers of certain carbon-intensive goods to pay for their products’ embodied carbon emissions. The policy, known as the Carbon Border Adjustment Mechanism (CBAM), could have a significant impact on the competitiveness of countries that export these goods to the EU – developing countries in particular. To help them prepare, the World Bank developed the CBAM Exposure Index.
When it takes full effect in January 2026, the CBAM will cover a limited number of the most carbon-intensive goods – including aluminum, cement, electricity, and iron and steel. Some developing countries export large quantities of these goods to the EU. Zimbabwe, for example, is a major exporter of iron and steel to the EU, and Ukraine sells large quantities of fertilizer to the bloc. In later years, the CBAM will likely be expanded to cover additional carbon-intensive goods.
DG welcomes the Head of Government of Togo, Victoire Tomegah Dogbe, to the WTO (WTO)
Director-General Ngozi Okonjo-Iweala welcomed the Prime Minister of Togo, H.E. Ms. Victoire Tomegah Dogbé, to the WTO on 15 June. They discussed the ongoing work of the WTO, Togo’s economic diversification, and how trade can deliver for the African continent, especially in the context of the Africa Continental Free Trade Area (AfCFTA).
The Director-General also urged the Prime Minister and her Government to quickly deposit Togo’s instrument of acceptance of the Fisheries Subsidies Agreement, noting that Africa is a victim of the illegal, unreported and unregulated fishing. The benefits of the new Agreement include, amongst other things, the combatting of illegal, unreported and unregulated (IUU) fishing and fishing of overfished stocks whilst at the same time safeguarding the livelihood of artisanal fisherfolk. Those subsidies would be prohibited once two-thirds of the WTO’s membership has accepted the Agreement.
New tariff scheme for imports from developing countries to go live on Monday – and other updates (Institute of Export and International Trade)
A new set of tariffs for imports from developing countries into the UK will enter force on Monday (19 June).
The Developing Countries Trading Scheme (DCTS) replaces the UK Generalised System of Preferences – the continuity system that was put in place following the country’s departure from the EU.
The government has issued an FAQ document to support traders prepare for the requirements that will be introduced as part of the new scheme, including those relating to the documentary evidence that needs to be provided to claim lower duty rates on imports under the scheme.
The Hidden Wealth of Nations: Groundwater’s Critical Role in a Changing Climate (World Bank)
Groundwater is vital to economic activity and growth, food security, socioeconomic development, and adapting to the impacts of climate change. But the sustainability of this critical resource is at risk in many regions, partly because it is not valued appropriately and is taken for granted. In the context of global pressures on food systems and water supply, policymakers need to act now to ensure groundwater is managed responsibly across sectors depending on this resource.
Groundwater is our most important freshwater resource—particularly in times of drought. As climate change advances, policymakers need to understand better and manage this critical asset. A new World Bank report considers the economic value of groundwater, the costs of misusing it, and the opportunities to leverage it more effectively.
The report, titled The Hidden Wealth of Nations: The Economics of Groundwater in Times of Climate Change, demonstrates how groundwater can safeguard food security while boosting economic growth and job creation. However in most cases, this resource has been undervalued and overexploited, with insufficient regard for its long-term sustainability.
the new report offers fresh data and evidence that with the right policies in place, we can maximize the benefits of groundwater harvesting—both now and long into the future.
Members address LDC concerns, transparency at Rules of Origin Committee meeting (WTO)
At its meeting on 6 June, the Committee on Rules of Origin (CRO) considered initiatives to address the concerns of least developed countries (LDCs) regarding the use of preferential rules of origin, transparency in the use of non-preferential rules of origin, and improvements to the functioning of the committee.
Members considered a submission from the LDC Group setting out a proposed report that the committee would submit to the General Council ahead of the WTO’s 13th Ministerial Conference, due to take place in February 2024, describing the work of the CRO.
As drafted, the report could describe progress, lessons learned and best practices on use of preferential rules of origin from the point of view of LDCs, and possibly note areas of divergence with preference-giving members. The report would cover the different paragraphs of the 2015 Nairobi Ministerial Decision on Preferential Rules of Origin for Least Developed Countries by drawing and distilling from the previous and future LDC submissions.
The world food import bill is forecast to reach a new record this year, though it is predicted to grow at a much slower pace compared to last year, as rising world prices, driven by higher quotations for fruits, vegetables, sugar and dairy products, dampen demand, especially in the most economically vulnerable countries, according to a report released today by the Food and Agriculture Organization of the United Nations (FAO).
FAO’s Food Outlook estimates that the global food bill will rise to $1.98 trillion in 2023, up 1.5 percent from 2022. It rose by 11 percent in 2022 and 18 percent in 2021.
While food imports by advanced economies continue to expand, the import bill for the group of Least Developed Countries (LDCs) is predicted to decline by 1.5 percent this year and that for net food-importing developing countries (NFIDCs) to decline by 4.9 percent, according to FAO.
“The decline in food import volumes is a concerning development in both groups, suggesting a decline in purchasing capacity,” the biannual report from FAO’s Markets and Trade Division warns. “These concerns are amplified by the fact that lower international prices for a number of primary food items have not, or at least not fully, translated into lower prices at the domestic retail level, suggesting that cost-of-living pressures could persist in 2023.”
In case you missed it
Report on the State of Integration of the Common Market for Eastern and Southern Africa (COMESA)
This report highlights developments and status of the regional integration process in COMESA since the 21st Summit held in November 2021, Cairo, Egypt. The report covers key achievements, challenges & constraints and proposed way forward.
It notes that under trade liberalization, membership to the COMESA Free Trade Area remained at 16 states with the four countries the DR Congo, Eritrea, Eswatini and Somalia at different stages of full liberalisation.
The value of COMESA’s total exports to the world significantly increased by 56% from US$ 100 billion in 2020 to US$ 156 billion in 2021. The sectors that contributed to this increase were manufactures, fuels, ores and metals and food,” she said.
The value of Intra-COMESA total exports increased by 28% from US$ 10 billion in 2020 to US$ 13 billion in 2021. Key exports include palm oil, cement, copper ores and concentrates, beet/cane sugar, live animals and petroleum oils.
BUSA/TRACIT calls for improved measures to combat illicit trade in South Africa (Busa)
A new study by the Transnational Alliance to Combat Illicit Trade (TRACIT) shows that illicit trade is one of the biggest threats to stability and economic growth in South Africa. While the country has taken steps under President Ramaphosa to root out illegal trade and associated activities like corruption and money laundering, the scope and depth of the illicit economy poses a significant threat to the health and wellbeing of South African citizens and a persistent drain on the overall economy.
It is critical that the South African Government prioritizes efforts to combat illicit trade and the underlying conditions that facilitate it,” said TRACIT Director of Programs Esteban Giudici. “Left unaddressed, illicit trade and its associated criminal activities will continue to rob the government of essential tax revenue and deter investments in the country.”
To encourage an effective policy response to illicit trade, the TRACIT report Organized Crime, Corruption and Illicit Trade: Spotlight on South Africa calls for strengthening interagency and inter-departmental cooperation between South African law enforcement agencies; strengthening criminal penalties; appointing an Interagency Anti-Illicit Trade Coordinator; ramping up implementation of enforcement measures; and increasing transparency and cooperation between the public and private sector to improve enforcement actions.
Report: Organized Crime, Corruption and Illicit Trade: Spotlight on South Africa
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Rising global demand for South African vegetables (FreshPlaza)
The National Agricultural Marketing Council hosted a workshop on South Africa’s fresh produce chain today in which economist Thabile Nkunjana provided an overview of recent broad trends in international trade and its impact on South African fresh produce. The fresh produce sector has been at the mercy of international turbulence and climate-related problems, made more complex by recent trade restrictions.
“As of March 13, 2023, at least 22 countries have implemented 26 export bans on certain food, ten countries had implemented 14 export limitation measures, affecting specifically onions, potatoes, fruit, and other processed food,” he noted.
Africa remains the largest buyer of South Africa’s vegetable exports, taking almost two-thirds (64%) of vegetables – dominated by onions and potatoes – in 2022.Asia and the Middle East accounted for 10% of South Africa’s vegetable exports, while the share of the European Union is a significant 22%.
“The interesting thing is that from the European Union, because of high energy prices affecting greenhouse production and their vegetable supplies, we’re seeing opportunities there, at least in the short-term, for South African fresh produce.”
The European Union’s Green Deal will have an increasing impact on its trading partners (and it remains South Africa’s largest market for fruit).
UK competes with Europe for South African citrus (Fresh Plaza)
The early citrus season has been characterized by a strong pull from Europe. “Everyone believes EU prices will be better than prices in the UK this season – even though it’s easier to export to the UK – so we’re all trying to maximise our EU volumes,” comments a Western Cape packhouse manager who asks not to be named.
“We’re just hoping that prices on soft citrus remain strong. There are guys who have in the past sent a ‘rough’ class 2 and might be tempted to pack that 5% less strict this year because the European market is empty,” he adds. “There is the temptation to maximise exports now that the market is empty, and after the difficult few years we have behind us.”
In his latest newsletter the Citrus Growers Association CEO Justin Chadwick noted that last year South Africa had overall supplied 7% of Europe’s oranges, with the bulk (87%) from its own orchards in Spain, Italy and Greece.
“If South African fruit was not available over that time, EU consumers would have little oranges available, forcing the consumer to shift to alternative fruit categories.”
Western Cape moves to woo the US as trade tensions rise (BusinessTech)
The Western Cape Government (WCG) has prioritised protecting the Africa Growth and Opportunity Act (AGOA) shared between South Africa and the United States as tension and talk of punishing South Africa’s Russian ties reaches a fever point.
On 13 June, the New York Times reported that a group of influential congressmen had written to US national security and foreign relations officials calling for South Africa to no longer be the host country for the AGOA conference as well as raising questions regarding South Africa’s position in the Act.
As a result of the possible economic headwinds this could bring to the surface, Western Cape premier Alan Winde is leading a delegation of the WCG to the US intending to further promote trade and investment with the province.
Kenya’s restrictions leave Uganda stuck with 24m litres of milk (The East African)
Uganda says Kenya’s restrictions on importing dairy products has left Ugandan processors stuck with 24 million litres of milk.
The Dairy Development Authority (DDA) said that while Nairobi has not imposed a ban, it is limiting the issuance of permits needed to access its market. “It is not like Kenya has issued a formal ban, but this is through a refusal of import permits, which is a requirement for access to the market,” said Dr Samson Akankiza Mpiira, the acting Executive Director of DDA.
Agriculture Permanent Secretary Maj-Gen David Kasura Kyomukama said besides promoting local consumption through school milk-feeding programme, the government will export to other countries due to Kenya’s restrictions.
“Those who are slow in clearing imports from Uganda are playing with fire. They buy maize from our gardens,” he added.
Kenyan tea exports take 26pc hit from Sudan war (The East African)
Kenya’s tea export dropped 26 percent in the first quarter of the year, taking a hit from the civil unrest in Sudan. Sudan, which is among the top five export destinations for Kenyan tea, has already seen the volumes shipped to the destination decline by 59 percent with traders projecting less imports by Khartoum in the coming months should the civil strife continue.
The Tea Board of Kenya says the total volumes exported in the review period was 99.8 million kilogrammes, a drop from the 135 million kilos recorded in the corresponding period last year. “Lower export volumes were due to less imports by Pakistan, Egypt and Sudan owing to challenges of forex reserves affecting these markets,” said the directorate.
Traders have lamented that it is becoming difficult for tea to access the Sudan market because of the challenges caused by war, which has cut demand for the beverage and posed a logistical nightmare for shippers.
New rice sorting technology to boost quality, productivity (The Citizen)
Rice processing in the country has received a boost following the introduction of a new processing technology known as Colour Sorter. The Colour Sorter machines have the ability to sort out unwanted solid materials using higher-resolution sensors, leaving the rice grains clear and of high quality.
The technology is an initiative of a Japanese company called Satake, which has entered into an agreement with local processors for supply and maintenance. Processors say they are optimistic that the rice sorting technology will open more export markets to Tanzania-produced rice, whose quality has been the stumbling block.
The Director of Mechanization and Irrigation in the Ministry of Agriculture, Ms Anna Mwangamilo, encouraged farmers to grow more rice to help the government achieve the 2019–2030 National Rice Development Strategy (NRDS) phase II.
“The aims of NRDS are to sustain rice self-sufficiency, contribute to regional self-sufficiency, be a rice market leader, and be well positioned to become competitive through improvement of quality, quantity, and value of the produced rice,” she said yesterday. In recent years, rice yield has risen, but quality has remained a challenge. The main goal of NRDS II is to make Tanzania sufficient and a major exporter of rice to the East Africa Community (EAC) and the Middle East.
Ngozi Okonjo-Iweala, Director-General, World Trade Organisation: Interview – Nigeria Economy (Oxford Business Group)
Nigeria has forged closer trade ties with other countries since 2000, particularly with China and India. After the Covid-19 pandemic, trade levels rose substantially. However, Nigeria is still dependent on the export of raw materials and should diversify its economy to integrate further in global value chains.
Nevertheless, Nigeria has the will and the power to diversify and profit from the opportunities that trade offers, particularly in the region. The African Continental Free Trade Area (AfCFTA) is key in this respect, but it will require further liberalisation and trade facilitation to increase productivity and investment. Free trade zones (FTZs) are equally critical, as they provide support to trade through increased competition, economies of scale, investment incentives and better resource utilisation. FTZs, however, must be properly equipped with infrastructure and allowed to function as intended. Another critical tool is special economic zones to spur exports, thereby promoting economic growth by incentivising specified sectors and industries.
To ensure that Nigeria and the rest of Africa reap the benefits of AfCFTA, it will be important to have a strategy that addresses both tariff and non-tariff barriers, and cuts trade costs, which for African countries are the equivalent of a 304% tariff on average. Africa should aim to double its share of world trade within the next decade by adding more value to its products and becoming part of global value chains.
The World Trade Organisation’s responsibility is threefold: to keep markets transparent, open and equitable. By reducing trade barriers, countries like Nigeria can benefit from predictable access to other markets, and the protection and guarantees that a rules-based, multilateral trading system offers.
Gov’t eyes 50% increase in green investments during FY2024/2025: Planning min. (EgyptToday)
As part of its Vision for 2030, the Egyptian State believes in the vital role of green investments for promoting inclusive growth, creating more jobs, and ensuring environmental sustainability, Minister of Planning and Economic Development Hala El-Said said.
Under the Fiscal Year 2024/2025 investment plan, the State targets a 50 percent increase in the share of green investments, added the minister in a speech delivered on her behalf by Heba Shaheen, Executive Director of the Egyptian Initiative for Business Climate Reform “Irada,” during a conference on empowering businesses for green economic development.
As part of a structural reform program, the government took several important steps to create an environment conducive to green investments by rolling out more incentives for the private sector, she said.
Caribbean Export signs three MoUs to support increased trade between Caribbean and Ghana (CNW Network)
Last Tuesday, June 6, 2023, there was a significant gathering of government officials, business leaders, and trade experts at the first leg of the Caribbean-West Africa Trade mission to Ghana.
Hosted by the Caribbean Export Development Agency (Caribbean Export), the mission aimed to foster collaboration and explore emerging areas for trade and investment opportunities between Ghana and the Caribbean.
Benjamin Dzoboku, Managing Director of Republic Bank Ghana PLC, and Mr. Gerald Nsomba, Specialist Trade, and Corporate Finance with Afreximbank, also shared their perspectives on the significance of the Ghana-Caribbean partnership and their efforts to support SME development along with trade and business opportunities between the regions.
The signing of Memoranda of Understanding (MoUs) took place between Caribbean Export and prominent Ghanaian organizations, including the Private Enterprise Federation, Ghana Union of Traders Association, and Ghana National Chamber of Commerce and Industry (GNCCI). These MoUs aim to foster closer collaboration and enhance trade relations between the Caribbean and Ghana, exploring potential partnerships for joint activities and facilitate businesses in key sectors such as renewable energy, agriculture technology and ICT.
Việt Nam, Côte d’Ivoire to promote agriculture, trade cooperation (Việt Nam News)
Việt Nam and Côte d’Ivoire will strengthen cooperation in agriculture, and facilitate each other to promote the trade of cashew, cotton and cocoa, among others.
The statement was made during talks between National Assembly Chairman Vương Đình Huệ and President of Côte d’Ivoire’s National Assembly Adama Bictogo held yesterday during the latter’s visit to the country.
Emphasising Việt Nam’s increasing position in the international arena, President of Côte d’Ivoire’s National Assembly Adama Bictogo said Việt Nam is a model of success, resilience, an example and an inspiration for many countries in the fight against poverty and underdevelopment.
The two sides agreed that economic-trade cooperation is one of the pillars of cooperation between the two countries, on the basis of cooperation for mutual benefit and development.
The two sides agreed to create maximum convenience for the products that are strengths of each country to penetrate each other’s markets.
China expands Africa investment to boost trade cooperation (Global Times)
China will expand investment in Africa with various measures in a bid to strengthen economic and trade cooperation between the two sides, Chinese officials said on Tuesday. The remarks were made at a press conference held by the Ministry of Commerce and the Hunan provincial department of commerce. The Central China province is to hold the third China-Africa Economic and Trade Expo from June 29 to July 2 in Changsha, capital of Hunan.
Representatives from 50 African countries and eight international organizations have registered to attend the expo. China is willing to sign or update investment promotion and protection agreements and elimination of double taxation agreements with these countries to improve the level of liberalization and the facilitation of trade and investment cooperation, said Deputy Commerce Minister Li Fei at the press conference.
China will continue to encourage domestic firms to strengthen cooperation in China-Africa industry and supply chains by relying on trade cooperation zones in Africa, and China will also organize various exhibition platforms to further tap the potential of the two sides, Li added.
How instant payments in Africa boost development (New Business Ethiopia)
Over 350 million adults in Africa are unbanked and primarily excluded from the formal economy, relying heavily on cash or informal providers for their financial needs, which is costly, risky and leaves them vulnerable to economic instability.
This is according to AfricaNenda, an African-led institution that is working to unlock the potential of inclusive digital financial services on the continent. The institution’s interventions aim at reducing vulnerability to economic shocks by those excluded from the financial system, particularly women in rural areas.
In its inaugural annual report, AfricaNenda highlights its work and achievements to accelerate implementation of more inclusive payment systems across Africa by removing barriers to instant and inclusive payments, accelerating access to digital payments and mobilizing the continent’s digital financial ecosystem for inclusive growth.
The CEO of AfricaNenda, Dr. Robert Ochola said: “Today, the need for a more inclusive society is becoming increasingly urgent. One of the fastest ways to achieve this is by putting in place systems that expand access to financial services and leave no one behind. Instant and inclusive payment systems can play a pivotal role in creating universal access to financial services for all Africans.”
New white paper focuses on the cross-border payments dilemma in the SADC (ZAWYA)
With a population spanning almost 400 million people across 16 countries, the Southern African Development Community has the widest-reaching regional bloc in Africa, holding massive appeal for trade exchanges to strengthen economies and benefit communities. However, unlocking this potential to enable a seamless and regulated flow of money across borders has been one persisting challenge that requires solving.
A new white paper, ‘SADC Regional Payments Interoperability – exploring the value of mutual digital infrastructure to drive more formalised, accessible and inclusive payments in the region’, by BankservAfrica together with Cenfri, explores the region’s cross-border payments landscape.
“With exciting innovations and new product launches, payments is an exciting space in the region. However, these fall short of the one critical need: broad-based and all-to-all interoperability. The ability for money to flow from wallets to bank accounts inexpensively enhances inclusivity, reduces pain points and can encourage the move from cash and informal money send. Achieving this is key to solving the cross-border payments dilemma in the SADC,” explains Ruhling Herbst, Executive Head: Africa Business Development at BankservAfrica.
The biannual meeting of the Southern African Development Community (SADC) Development Finance Institutions (DFI) Subcommittee was held on 9th June 2023 at the Swakopmund Hotel and Entertainment Centre in Swakopmund, Namibia to review progress on the implementation of Annex 9 of the SADC Protocol on Finance and Investment.
In her opening remarks, Honourable Mrs. Hinda-Mbuende Deputy Minister of Finance and Public Enterprises of the Republic of Namibia pointed out the economic downturn and challenges, recent global COVID-19 Pandemic and international geo-politics that have negatively impacted the SADC integrated development agenda which created and continues to create challenges for respective Member States, in terms of providing critical support to DFIs.
Hon. Hinda-Mbuende appealed for a greater consideration and action required by DFIs in terms of innovative, agile and strategic alignment amongst others with the likes of other development partners, financial technology (Fintech) and green climate finance mechanisms, to strengthen the balancing act while executing the development mandate.
EAC tables US$103,842,880 Budget Estimates before EALA for the 2023/2024 Financial Year (EAC)
The East African Community (EAC) has tabled before the East African Legislative Assembly (EALA) the budget estimates for the 2023/2024 Financial Year totaling US$103,842,880 for the 2023/2024 Financial Year.
Hon. Amb. Dr. Ezéchiel Nibigira, said that the budget estimates for the Financial Year 2023/2024 were being presented at a time when the EAC economies were experiencing global shocks arising from the on-going Russia-Ukraine war, tight global financial conditions, lingering effects of Covid-19 and the impact of climate change.
“Despite these challenges, economic growth in the region improved to 4.8 percent in 2022 from 3.5 percent in 2021. The strong growth in the region was supported by the good performance of the industry, services, construction, mining and manufacturing sectors,” said Dr. Nibigira.
Hon. Nibigira projected a positive outlook for EAC economies, largely driven by the strong performance of the services sector, prudent government policies and increased public and private investment.
Hon. Nibigira disclosed that the EAC total trade increased by 13.4 percent to US$74.03 billion in 2022 from US$65.268 billion in 2021. “In 2022, EAC total exports to the rest of the world were valued at US$20.139 billion, while total imports from the rest of the world into the EAC amounted to US$53.891 billion. Further, total intra-EAC trade grew by 11.2 percent to US$10.910 billion in 2022 from US$9.810 billion in 2021,” said the Minister.
“The major Intra-EAC traded products are cereals, cement, iron and steel, live animals, petroleum products, sugar, foods and beverages, which signify that our economies are agro-based with good signs of moving to industry-based.”
On priorities for the 2023/2024 FY, Hon. Nibigira said that the Community would focus on nine (9) priority areas, including harmonisation of trade related policies, laws and regulations, and streamlining of customs and trade facilitation systems for increased trade and investment
2022 Africa Sustainable Development Report (AfDB)
Building Back Better from the Coronavirus Disease (COVID-19) while Advancing the Full Implementation of the 2030 Agenda for Sustainable Development
The Africa Sustainable Development Report (ASDR) for the year 2022 comes at the midway of the implementation of the 2030 Agenda for Sustainable Development to which world leaders, including African leaders, made commitments in 2015, to end extreme poverty, inequality and climate change by 2030. In addition, the ten-year implementation plan of the African Union’s Agenda 2063, titled, “the Africa We Want,” that was initiated in 2013, ends in 2023. This report is also paramount because it covers the period when the Covid-19 pandemic and the Ukraine-Russia crisis emerged with significant bearing on the implementation of both agendas.
It tracks the performance of all African countries using latest data and highlights critical areas that require urgent policy interventions. The report also provides a benchmark with which to assess the scale of the impacts of both shocks on the SDGs. Overall, African countries need to invest in building and strengthening the capacities of national statistical offices for better and timely collection of highly disaggregated data that tracks the implementation of the SDGs and Agenda 2063.
New partnerships and sources of development financing are required to meet the rising needs of future development in Africa. Both regional development banks, as well as the Bretton-Woods institutions, need to urgently step up their efforts to boost their financial support to African countries. African governments should aim to strengthen domestic resource mobilization through accelerating digitalization, improving tax policy and administration, curbing illicit financial flows, and creating the enabling governance, legal and judicial frameworks for enhanced accountability, transparency, and participation.
ICYMI: African Food Systems Can Produce $1trn In Value – AfDB (The Tide News Online)
African Development Bank (AfDB) President, Dr. Akinwumi Adesina, has said African food systems have the potential to produce $1 trillion in value over the next seven years.
Addressing the ongoing Eighth Africa Agribusiness and Science Week (AASW) in Durban, South Africa, Adesina said, “Working with development partners from around the world and the AUC, the private sector companies, and global and national agricultural research centers, we developed Food and Agricultural Delivery Compacts for 41 countries”.
According to him, partners to the summit have built on its success, mobilising $72 billion so far, to support the national compacts.
pdf Keynote by Dr Akinwumi Adesina (10.76 MB)
FARA’s Chairperson, Alioune Fall, spoke about the interlocking relationship between climate change and agricultural production. “Climate change and its effect on the continent require new ways of doing things in almost all facets of our society”, he said, adding: “Africa’s young farmers would not adopt nature-based approaches unless they are well packaged, affordable and technology-serviced”.
US still committed to keeping Africa trade ties – US-Africa Leaders Summit rep (Eyewitness News)
The special presidential representative for the United States (US)-Africa Leaders Summit, Johnnie Carson, said the global superpower remained committed to maintaining strong trade ties with the African continent.
The reassurance from the US special presidential representative came after the summit that intended to tighten programmes on shared priorities, something the Biden Administration believed faltered with Trump’s presidency.
Carson spoke at a media briefing arranged by the US Department of State’s Bureau of African Affairs on Tuesday. “The United States has been the continent’s strongest partner in the most important areas of development over the last three or four decades, and a lot of the very great and outstanding work that we do across the continent is not seen as visibly as some other things.”He added that work was being done to address the continent’s energy crisis.
AfCFTA: A Driving Force For Transport And Logistics In Africa (iAfrica)
Improved transport and logistics in Africa have immense potential to realise the vision of the African Continental Free Trade Agreement (AfCFTA). The AfCFTA envisions a borderless Africa, removing barriers to trade and investment by eliminating tariffs on most goods and harmonising customs procedures, while encouraging entrepreneurship and foreign investment, and promoting the free movement of people and capital.
During a recent online panel discussion, various challenges and opportunities were placed on the agenda to be unpacked at the shows later this year.
Beatrice Chaytor, Head of Division – Trade in Services of the AfCFTA Secretariat in Ghana believes once the AfCFTA is fully implemented, traffic routes across air, ports, rail and road travel will improve. “There are significant opportunities for investors in vital infrastructure like airports, warehousing, cold storage and more, and with tourism on the continent back to 88% of pre-pandemic levels for the first quarter of the year, ensuring a robust and reliable transport and logistics system across the continent makes good business sense.”
African Medicines Agency set to start work in Rwanda (Modern Diplomacy)
The African Medicines Agency (AMA), a newly launched continental regulatory body for medical products, is set to start its work, with its headquarters in Rwanda. Rwanda was selected to be the host of the agency during a 2022 AU Executive Council meeting in Lusaka, Zambia.
AMA is a specialised agency of the African Union (AU) intended to facilitate the harmonization of medical products regulation throughout the AU in order to improve access to quality, safe and efficacious medical products on the continent.
Many AU member states including Rwanda ratified the treaty establishing the continental agency and deposited the legal instrument of ratification to the AU Commission. On June 10, Rwanda and the AU signed the host country agreement, an important step in getting the work of AMA started.
The AU Commissioner for Health, Humanitarian Affairs and Social Development, Minata Samate Cessouma, said AMA will hugely contribute to the production of medicine on the continent, and allow it to move across the continent.
How Financing Can Boost Low-Income Countries’ Resilience to Shocks (IMF Blog)
Low-income countries face multiple economic challenges—including rapid inflation, food insecurity, costly borrowing, and mounting debt—heightened by shocks from the pandemic and Russia’s war in Ukraine.
As a result, the IMF has revised down its growth projections for low-income countries, where per capita income growth is falling further behind the rates needed to catch up with advanced economies. This threatens to reverse a decades-long trend of steadily converging living standards.
To boost economic growth and put them back on a path to income convergence with advanced economies, we estimate that low-income countries need an additional $440 billion of financing through 2026 from all available sources. As part of this, IMF concessional financing offered at low or zero interest rates will play a key role in helping these countries cushion the impact on growth from ongoing shocks and future crises.
IMF Managing Director’s Introductory Remarks to the G20 DGI Global Conference (IMF)
The Data Gaps Initiative was launched in 2009 by the G20 Finance Ministers and Central Bank Governors to close data gaps that were identified in the wake of the global financial crisis. Fast forward to 2021 and – in the midst of the pandemic – the G20 initiated a new phase, covering climate change, household distributional information, data access, fintech and financial inclusion.
Policy advice must be based on hard data. Data sharpens how we understand the economic and financial implications of the world around us—and is particularly important for tackling new and emerging issues like climate change, financial innovation and changes to wealth and income distributions.
But there are still gaps in our data. This impedes our ability to develop and monitor policies—from measures to incentivize cuts in emissions, to regulation that mitigates the risks of rapid financial innovation or helps boost financial inclusion.
Remittances Remain Resilient but Likely to Slow (World Bank)
Officially recorded remittance flows to low- and middle-income countries (LMICs) are estimated to grow by 1.4% to $656 billion in 2023 as economic activity in remittance source countries is set to soften, limiting employment and wage gains for migrants, according to the World Bank’s latest Migration and Development Brief released today.
This edition of the Brief also revises upwards 2022’s growth in remittance flows to 8%, reaching $647 billion. In the post-COVID period of slower economic growth and falling foreign direct investments, remittance inflows have become more important to countries and households, given their resilience as a source of external financing, particularly for LMICs with high external debt.
G20 GDP growth accelerates to 0.9% in the first quarter of 2023 (OECD)
Gross domestic product (GDP) in the G20 area grew by 0.9% quarter-on-quarter in the first quarter of 2023 according to provisional estimates, up from 0.4% in the previous quarter.
This acceleration in the G20 area in Q1 2023 mainly reflected the reopening of the economy in China, where GDP growth picked up to 2.2% compared with 0.6% in the fourth quarter of 2022. The acceleration was also driven by higher growth in India, 1 where GDP rose by 1.9% in Q1 2023, up from 1.0% in Q4 2022. In Mexico, GDP growth reached 1.0% in Q1 (compared with 0.6% in Q4) and in Japan it reached 0.7% (compared with 0.1%). Several economies returned to growth after contracting in the fourth quarter of 2022: in Brazil GDP rose by 1.9% in Q1 after contracting by 0.1% in Q4, while in South Africa and Korea, GDP grew by 0.4% and 0.3% respectively after contracting by 1.1% and 0.4%.
DDG Ellard urges acceptance of Fisheries Subsidies Agreement, progress on new disciplines (WTO)
One of the biggest achievements of MC12 was the conclusion of the binding Agreement on Fisheries Subsidies, the first WTO Agreement with environmental sustainability at its core. This accomplishment has greatly energized our Members and has given them great confidence in multilateralism. And it has encouraged them to do more.
But the adoption of the Agreement did not bring an end to the WTO’s work on fisheries. To the contrary, now that the Agreement is concluded, WTO Members are engaged in three parallel processes to carry the work forward.
First is accepting the new Agreement. To deliver its benefits for the ocean, the Agreement must enter into force, which requires two-thirds of WTO Members to deposit their instruments of acceptance with the WTO.
The second effort underway relates to how the WTO will assist developing and least developed Members in implementing the new disciplines.
The final of the three strands of ongoing work on fisheries is continuing negotiations to resolve the outstanding issues that could not be agreed at MC12, which include disciplining subsidies that contribute to overcapacity and overfishing, along with appropriate and effective special and differential treatment for developing and least-developed Members.
Seven Takeaways From Tracking SDG7: The Energy Progress Report 2023 (Sustainable Energy for All )
Despite a recent slowdown in the global pace of electrification, the number of people without electricity almost halved over the past decade, from 1.1 billion in 2010 down to 675 million in 2021.
The annual Tracking SDG7 report is produced to monitor global progress toward Sustainable Development Goal 7 (SDG7) and to offer a clear picture of how far we still need to go to ensure affordable and clean energy for all by 2030.
The report tracks global, regional, and country progress on energy access, energy efficiency, renewable energy, clean cooking, and international cooperation to advance SDG7. It presents updated statistics for each of the indicators and provides policy insights on priority areas and actions needed to spur further progress on SDG7, as well as related SDGs.
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Namibia takes control of its resources as it bans the export of unprocessed vital mineral (Business Insider Africa)
The country’s Ministry of Information also disclosed that only trace amounts of the listed minerals would be allowed to be exported with the mines minister’s agreement.
Namibia is a major supplier of uranium and gem-quality diamonds, but as the globe switches to renewable energy sources, interest in its battery metals is rising. In line with the EU’s desire to lessen its reliance on China for essential minerals, Namibia and the EU reached a deal last year to provide rare earth minerals to the latter.
Zimbabwe, a different producer of lithium in Africa, barred the export of lithium ore in December and only permitted the shipment of concentrates. Zimbabwe has stated that it wants the nation’s lithium miners to strive toward producing battery-grade lithium locally and that it may eventually levy a tax on lithium concentrate exports.
African Continental Free Trade Area Awareness Workshop Goes to Mpumalanga (The Department of Trade, Industry and Competition)
Buisnesspeopole in Mpumalanga will get an opportunity to learn more about the export opportunities that are presented by the African Continental Free Trade Area (AfCFTA). This will happen during the Mpumalanga leg of the awareness workshops on the implementation of the AfCFTA Agreement. The workshop will be hosted by the Department of Trade, Industry and Competition (the dtic), in partnership with the Mpumalanga Growth Development Agency (Mega) at the Capital Hotel, in Mbombela on Thursday, 15 June 2023 from 09:00.
This will be the fourth in a series of workshops that the department is rolling out throughout the country from May-July 2023. The inaugural workshop took place in KwaZulu-Natal on 25 May 2023. Another was held in Gauteng on Monday last week, while the Limpopo leg took place in Polokwane yesterday. All the workshops received positive reviews from businesspeople who attended the sessions. They welcomed the progress and benefits that the AfCFTA will afford the private sector once implemented.
US lawmakers call for S.Africa to lose summit over Russia ties (Reuters)
A group of U.S. lawmakers is calling for a U.S.-Africa trade summit planned for later this year to be moved from South Africa in response to what they said was the country’s “deepening military relationship” with Russia.
In a letter to U.S. Secretary of State Anthony Blinken and other senior officials, they also suggested South Africa is in danger of losing its benefits under the African Growth and Opportunity Act (AGOA) - Washington’s flagship trade programme. South Africa is due to host the AGOA Forum in Johannesburg, a meeting of African leaders and U.S. officials to discuss the future of the programme, which is slated to expire in 2025.
South Africa’s exports to the U.S. under AGOA reached nearly $1 billion in the first three months of this year, making it the second biggest beneficiary of the programme after Nigeria.African nations are seeking to extend AGOA, which grants qualifying countries’ exports preferential access to the U.S.
National Logistics Crisis Committee to tackle transport emergencies in parallel to reform agenda (Engineering News)
The National Logistics Crisis Committee (NLCC) will adopt a two-pronged approach to addressing the rail, port and road crises currently undermining growth and job creation in South Africa, whereby several urgent interventions will be pursued in parallel to a reform agenda with longer-term implications, including the opening of rail and port networks to private operators.
The Presidency’s project management office head Rudi Dicks tells Engineering News that government and business have already agreed to jointly support the workstreams that will be formed under the NLCC, the final terms of reference for which are likely to be signed off later this week.
South Africa’s transport network holding economic growth back (Engineering News)
South Africa‘s transport modalities – all of them – are currently unable to support greater economic growth in the country. So warned South African Association of Freight Forwarders CEO Juanita Maree, addressing the forty-fifth Annual SAPICS Conference in Cape Town on Monday.
“Supply chain is more about problem solving” than anything else, she pointed out in her introductory remarks. It was “not one [transport] modality above another modality”. All were equal. But, currently, in South Africa, the roads were overused.
“There’s too many trucks on the road,” she stated. For just one example, there were 1 800 trucks driving on the N4 route from Gauteng province to Mozambique’s capital and port city of Maputo every day. But the road was not designed for such a level of heavy traffic.
This heavy dependence on road transport is the result of the severe deterioration of the country’s railway network. And South Africa’s own ports being extremely inefficient.
Uganda sets 25% tariff on imported refined sugar (Monitor)
Local sugar manufacturers can now breathe a sigh of relief after the government set a 25 percent tariff on refined sugar imports. Uganda Revenue Authority (URA) Assistant Commissioner for Trade Irene Muliika announced the new tariff in a June 7 letter to Uganda Manufacturers Association (UMA).
According to Ms Muliika, the import tariff is as per the East African Community (EAC) raw material duty remission scheme for 2023/2024. URA said this represents a compromise position that protects local producers of industrial refined sugar while also leaving the door open to imports for any user that requires it for technical reasons.
This is against the total ban on imports that had been proposed earlier. The 25 percent duty is in line with most other finished products produced in Uganda.
Museveni banks on oil, exports in bullish economic growth forecast (The East African)
Uganda President Yoweri Museveni has given his most optimistic view of the economy yet, projecting it to grow at an average of 6.5 percent to seven percent per annum in the next five years, banking on manufacturing, increased oil and gas activities, and exports growth — all pegged to the recovering regional and international markets, low inflation, and support to small scale enterprises.
This will push the country’s GDP to $55.2 billion by the end of the 2023/24 financial year — up from the current $49.4 billion — which translates into $156.76 billion in purchasing power parity terms, and take the country’s GDP per capita to $1,186, from $1,096 in the current financial year.
Despite slow recovery of some key sectors like tourism from the Covid-19 effect, the World Bank said in December last year that Uganda is returning to its pre-pandemic path to growth, with economic recovery boosted by the strong performance of the services and industrial sectors, buoyant private consumption, and an uptick in private investment.
the Ugandan leader took issue with the slow pace of infrastructure growth in the key sectors of the economy, particularly energy and which are supposed to power the country’s industrialisation agenda with lower tariff for manufacturers.
GRA clarifies upfront payment policy for VAT at Ports (The Business & Financial Times)
The Ghana Revenue Authority (GRA), recently announced the introduction of an upfront payment of 12.5% on the customs values of VAT registerable imports at the various entry ports of the country.
However, the Ghana Revenue Authority has clarified that this is not a new tax, but a tool to ensure VAT compliance among importers of goods.
Speaking with Kennedy Mornah on the Eye on Port TV program, officials of the Ghana Revenue Authority indicated that the primary goal of this measure is to ensure that importers of VAT-taxable goods register.
An Assistant Commissioner and the Office manager at the Nima Taxpayer Service Centre, Mr. Joseph Fiadzo said, “the policy is aimed at roping in more taxable persons, in that, the taxpayer who is faced with the situation of upfront payment at the port, once he has registered, we will be able to know his channel of distribution and get others into the tax net.”
“We have some groups who have registered for VAT and charging VAT. Other importers will bring goods into country and will not charge VAT. If we go to the market, buying the same category of goods from these separate traders, they will cost differently,” a Senior Revenue Officer at the Spintex Taxpayer Service Center, Felicia Omotayo Owusu added.
Rwanda, AUC Sign Agreement To Establish African Medicines Agency (Heritage Times)
The Rwandan government and the African Union Commission (AUC) have concluded plans to establish first ever African Medicines Agency with headquarters in Kigali, Rwanda. On 10th June, Rwanda signed an agreement with the African Union to host the headquarters of the African Medicines Agency in Kigali.
The signing comes just a few days after the Rwandan authorities officially agreed to host the AMA’s headquarters on their territory.
According to the AUC, creation of the African Medicines Agency is part of the African Union’s strategy to reduce the continent’s dependence on pharmaceutical products supplied by foreign countries. Africa imports 97% of the pharmaceutical products it needs.
Part of its duties will be to regulate and harmonize this market on the continent, encourage production in Africa and counter the traffic in counterfeit medicines.
Gold output up 32% as country returns to top spot (The Business & Financial Times)
Domestic gold production went up 32 percent from 2.8 million ounces in 2021 to 3.7 million ounces in 2022, propelling the country to the summit as Africa’s largest producer of the precious yellow metal.
The increase, the Ghana Chamber of Mines (GCM) explains, is attributed to a combination of fresh output and expansion of production at existing large-scale mines.
Production from the large-scale sector rose from 2.7 million ounces in 2021 to 3.1 million ounces in 2022, representing an increment of 13 percent – the highest in history, with the small-scale sector accounting for the remainder.
Meanwhile, the recent upturn in export of diamonds persisted in 2022 with an expansion in the volumes from 54,174 carats in 2021 to 82,252 carats in 2022. On a year-on-year basis, the volume of diamond exports improved by 52 percent.
Cocoa prices surge as El Niño threatens production amid Ivory Coast supply concerns (The Business & Financial Times)
Cocoa prices experienced a further rally last week, due to growing concerns about the potential impact of an El Niño weather event on global cocoa production.
Last Friday, cocoa prices reached their highest level in a month for nearest-futures contracts, building on the gains observed on Thursday due to worries about the El Niño weather event. It is worth noting that cocoa prices soared to a 12-year high in 2016 when a previous El Niño event caused a drought that severely affected global cocoa production.
This is particularly significant as the Ivory Coast, the world’s leading cocoa producer, is already facing a decline in supply.
Reduced supply from the Ivory Coast is another factor supporting cocoa prices, as reported by Barchart – a platform that monitors the Cocoa Futures Market.
Liberia: Executive Order 119 should produce fruits (The New Dawn Liberia)
President George Manneh Weah issued Executive Order 119 last week Thursday, June 8, imposing surcharge on a few imported goods or raw materials to protect domestic manufacturers and stimulate economic growth. The Executive Mansion in Monrovia says Executive Order 119, which takes immediate effect, seeks to solidify gains realized under Executive Order 103 and stimulate growth in the Liberian economy.
Government says this is her way of recognizing the need to provide incentives for domestic job creation as envisaged under Pillar 2 (Economy and Job) of the Pro-Poor Agenda for Prosperity and Development (PAPD) by protecting local businesses from unfair competition and international brands of locally manufactured goods.
ICC prioritises support for SMEs within AfCFTA (The Business & Financial Times)
The International Chamber of Commerce (ICC) is prioritising support for small and medium enterprises (SMEs) on the continent to take full advantage of the African Continental Free Trade Area (AfCFTA), its Secretary-General, John Denton, has said.
Mr Denton, speaking to the B&FT in Accra during an official working visit to Ghana and sub-Saharan Africa, said the Chamber is working with its ICC Regional Centres of Entrepreneurship (CoEs) on the continent to prioritise and prepare SMEs to harness greater participation in the AfCFTA with emphasis on promoting cross-border trade.
Already, the ICC has built capacity for several women-led businesses in Africa with recent programmes, partnering UPS, Tralac and West Blue Consulting. The Chamber also hosted an open innovation for several startups in Nigeria, Kenya and the World Food Programme innovation accelerator in East Africa.
Well-built cities, services could rekindle African economies (The East African)
African governments will need to ramp up investments in urban infrastructure and the service industry to help revive the economic growth needed to eradicate absolute poverty.
As Africa’s population continues to grow fastest in the world, a new report by the McKinsey Global Institute (MGI) shows that, despite positive signs at the start of this century, Africa’s economies took a different turn in the second decade and might get into a deeper plunge if nothing is done now.
Compared to other emerging economies like India and China, Africa’s GDP grew at a relatively slower pace between 2000 and 2019 and even slower over the last decade.
“Gaps in infrastructure and skills, along with relatively high hurdles to conducting business, low levels of intracontinental trade, and dependence on natural resources, were obstacles to Africa’s growth,” said the report. Due to these hurdles, Africa’s GDP in 2019 was $400 billion less than what it could have been had the economy continued to grow at the same pace it did in the 2000 – 2010 period.
To reignite growth, MGI argues Africa needs to focus on improving the productivity of the service industry, which is emerging to be the largest employer not only in emerging markets, but across the globe.
Private sector pushes harmonised taxation to ease cost of business (The East African)
The private sector in East Africa has added its voice to the debate on the un-harmonised proposed tax increments in partner states ahead of the reading of the financial year 2023/24 budgets. Most of the taxes have not been harmonised across the region thereby likely to lead to a high cost of doing business.
Of those proposed in the Kenya, Uganda, Tanzania and Rwanda budgets, the only one that has been harmonised is the income tax, at 30 percent. The rest, including value added tax (VAT), vary in their application, a factor that impacts cross-border business.
Eritrea rejoins east Africa trade and security bloc IGAD after 16 years (Africanews)
Eritrea says it is ready to work toward “peace, stability and regional integration after it rejoined the East African bloc, the Inter-Governmental Authority on Development (IGAD) on Monday. It comes nearly 16 years after the politically isolated state pulled out of the bloc.
The east African nation led by 77 year old Isaias Afwerki who has ruled for three decades, had suspended its IGAD membership in 2007 after a string of disagreements. One of them was the bloc’s decision to ask Kenya to oversee the resolution of a border dispute between Ethiopia and Eritrea.
Powering up southern Africa (African Review)
With southern Africa experiencing a serious power deficit which is taking its toll on economic productivity, multiple initiatives are underway to alleviate the crisis
The Democratic Republic of Congo (DRC) is seen as a country with massive hydroelectric power potential to mitigate the crisis currently experienced in multiple countries in southern Africa. The Zambian-based Copperbelt Energy Corporation (CEC) has significantly invested in the construction of a second power interconnector line to DRC that will increase transmission capacity from 260MW to 550MW to address electricity challenges in Zambia and the sub region.
African countries should go into partnerships whenever undertaking power projects in order to adopt sustainable solutions and speed up implementation processes. Zambia is on the right path as it has already embraced the concept of integration as evidenced by the estimated US$5bn Batoka hydro power project, which is being undertaken in conjunction with Zimbabwe, while other projects in the North of the country are being considered in partnership with DRC.
African business leaders chafe at obstacles to trade (eNCA)
More than four years ago, African countries gave the ceremonial push to a deal to scrap internal trade barriers -- a historic scheme that would create a continent-wide single market worth trillions of dollars. But African business leaders say cross-border trade remains entangled in customs duties, administrative hurdles and varying national regulations.
Costs and delays are hampering African corporations fighting to compete with low-cost rivals, they say.
Its secretary-general, South African trade expert Wamkele Mene, told the Africa CEO Forum that “fragmentation” in the continent’s market had worsened in the past decades. “Every African activity has been negatively impacted by this fragmentation,” he said.
The problems are having an impact on African companies competing with developing-country counterparts facing lower or even zero hurdles.
Brazil’s Lula eyes trips to Africa to boost trade, diplomacy (Engineering News)
Brazil is seeking to mend ties with Africa, largely ignored by the Bolsonaro administration, as the government prepares for two rounds of official trips to the continent.
Besides repairing diplomatic relations, Brazil wants to widen its economic footprint in Africa as it sees trade and business potential in the region, in line with the Brazilian government’s South-South integration agenda.
G20 Development Ministers’ Meeting (UNCTAD)
The 2030 Agenda, with its 17 Sustainable Development Goals, is not just a set of targets. It is a promise we made to ourselves and to future generations. It is the last collective roadmap in a world that is more polarized than ever, a world in desperate need of solidarity and multilateralism.
If we do not save SDGs today, there will be nothing left to save us tomorrow. And yet, we will fail to save them, if we don’t quickly take action. We cannot act as if failure is an acceptable option. The SDGs are simply too big to fail.
Cascading crises have set us back. A cost-of-living crisis has disproportionally hit developing countries and the most vulnerable. By nearly every measure, we are moving backwards. Backwards on ending poverty. Backwards on hunger. Backwards on women’s rights. And backwards on development, with only 12 per cent of the Sustainable Development Goals on track.
The UN SDG Stimulus plan calls for three things to widen countries’ fiscal space for development and foster sustainable investments: first, massive lending increases from multilateral development banks, leveraging private resources; second, a multilateral answer to growing debt distress, so that no country is forced to either service their debt or serve their people; and third, strengthening the global financial safety net.
Security in digital economy a global challenge: Union minister Rajeev Chandrasekhar (Deccan Herald)
Union minister Rajeev Chandrasekhar on Monday said that security in the digital economy is a global challenge and a partnership approach is needed to tackle it. He was addressing G20 delegates at the Global Digital Public Infrastructure (DPI) summit at the third Digital Economy Working Group (DEWG) meeting here in Maharashtra.
“The digital economy security is neither a domestic issue nor a domain in which selective cooperation is enough,” said the Minister of State for Electronics and Information Technology. He asserted that a common understanding must be devised to improve the domestic, legal, technical, and economic aspects of security in the digital economy.
“With the rise of health tech, fintech, e-commerce, artificial intelligence, and Internet of Things companies, businesses now hold large data sets that hold sensitive and personal data of consumers. Sectorally, most cyber crimes are reported in the financial services sector, followed by the healthcare sector.
UK exports in last decade worse than any G7 country except Japan (The Guardian)
Britain has endured the worst exports record of any member of the G7 besides Japan over the last decade, according to a new analysis that will raise pressure on the government to reconsider its post-Brexit trade deal with the EU.
As most of the world’s other major seven economies have rebounded from the pandemic, export growth has remained sluggish in the UK at a time when businesses trading with the EU faced extra red tape and costs as a result of the country leaving the bloc.
Figures from the United Nations Conference on Trade and Development (UNCTAD) show that the UK’s goods and services exports had a value of £813bn in 2012 and rose by just 6% to £862.6bn by 2021.
That compares with the double-digit increases enjoyed by Canada (10.2%), France (16.1%), Germany (22.7%), Italy (15.9%) and the US (13.8%). The EU’s 27 member states as a whole enjoyed a 29.1% increase in the value of their exports in the same period.
From rule-taker to rule-maker: Africa in the changing world order (ECFR)
African countries have long been discontent with the existing multilateral system, which they joined as rule-takers from a vast colonial territory under the domination of various European powers. There is much in the history and contemporary experiences of African partnerships with the West that the countries of the continent are right to be uncomfortable and even outraged about, including perceived Western political, economic, and cultural imposition, double standards, and conditional support. Today, Africa boasts 55 member states of the United Nations, vast natural resource endowments, an overwhelmingly youthful population, and strong prospects of becoming the next pole of global economic growth, making it well placed to be a joint rule-maker.
Many African leaders are looking east to China, India, Russia, Turkey, and other (re-)emerging powers, large and medium, for partnership. Zimbabwe was the first to officially espouse a “Look East Policy”, which it adopted in 2003 when the United States and the European Union imposed sanctions against the government’s alleged assault on human rights and the rule of law, and began to work closely with China as a strategic, economic, military, and political partner. However, Harare is far from alone in its resolve to consciously diversify relations away from the West by cultivating them with countries of the east, especially China. China is now Africa’s biggest trading partner, with $117.51 billion worth of imports from the continent and $164.49 billion of exports to it in 2022.
Some commentators argue that Africa is already suffering the consequences of engaging in a more competitive multipolar world without clarity of vision and purpose. Various centres of power, from the EU and the US, to India, Turkey, Russia, and the United Arab Emirates, are competing for the continent’s natural resources, markets, and military bases. As they seek avenues to plug African countries into their global geopolitical schemes, the region is becoming fragmented, undermining its capacity for coordinated collective action.
However, despite the slow pace so far, it is not too late for the continent to play a robust and autonomous role in defining the rules of a new world order.
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COMESA SG Outlines Key Achievements on Regional Integration
The 22nd COMESA Summit presented an opportunity for the COMESA Secretariat to brief the Heads of State on the state of integration and the milestones that have been covered this far.
In a state of integration report, Secretary General Chileshe Kapwepwe detailed the key developments and achievements in the past year focusing on the market integration and physical integration pillars.
Under trade liberalization, she noted that the membership to the COMESA Free Trade Area has remained at 16 States with the four countries the DR Congo, Eritrea, Eswatini and Somalia at different stages of full liberalisation.
“There was significant increase in COMESA’s trade globally and within the region above the pre-COVID-19 pandemic levels,” the SG said. “The value of COMESA’s total exports to the world significantly increased by 56% from US$ 100 billion in 2020 to US$ 156 billion in 2021. The sectors that contributed to this increase were manufactures, fuels, ores and metals and food.”
The value of Intra-COMESA total exports increased by 28% from US$ 10 billion in 2020 to US$ 13 billion in 2021. Key exports include palm oil, cement, copper ores and concentrates, beet/cane sugar, live animals and petroleum oils.
Among the largest exporting countries in the COMESA region, are Egypt, DR Congo, Tunisia, Seychelles, Uganda, Zimbabwe, Kenya and Zambia. They registered a combined increase of 41% in exported manufactured products in 2021 compared to 2020.
On the liberalization of Trade in Services, she highlighted the Secretariat’s continued support the negotiations in six priority areas in business, financial, transport, communications, tourism construction and energy services.
On trade facilitation, implementation of trade facilitation instruments to overcome barriers and accelerate intra-regional trade and investments has been strengthened with financial support from European Union, World Bank, African Development Bank, Afrexim Bank, and others.
On the Tripartite Free Trade Area, she engagement with countries that have not ratified it has been ongoing. The goal is to get three more signatures to attain the required threshold of 14 countries to enable the agreement to enter in force. Currently a total of 26 signatures and 11 ratifications have been received.
In the efforts to strengthen democratic governance, inclusivity and promote peace and stability, she underlined COMESA’s continued support towards entrenching good governance which is the foundation of peace and security. Activities under this initiative included mounting election observer missions to Member States that have been conducting elections.
The report also highlighted some of the key challenges and constraints that have been experienced in the implementation of programmes. They include slow and delayed domestication of agreed protocols, proliferation of non-tariff barriers, low levels of value addition, slow harmonization/weak coordination of multiple integration arrangements, restrictions to free movement of persons, labour and services and technical and financial constraints.
Going forward, the Secretary General urged Member States to eradicate barriers to trade, free movement of people, strengthen connectivity and invest in clean technologies to achieve the desired intra-regional trade and sustainable economic development.
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China is SA’s largest BRICS trading partner (IOL)
China is South Africa’s largest trading partner, both overall and within the BRICS (Brazil, Russia, India, China and South Africa) grouping.
In 2022, China accounted for 9.4% of South Africa’s exports and 20.2% of South Africa’s imports, according to the South African Revenue Service (Sars). In rand terms, exports to China totalled R188.4 billion, while South Africa imported R367.4bn, resulting in a trade surplus in favour of China worth R179bn.
South Africa’s exports to China are dominated by two categories, namely mineral products, as well as products of iron and steel. Mineral products are raw materials. In the case of exports to China, this is dominated by iron ore, but also includes coal, manganese and chrome ores, as China is the world’s largest producer of steel, accounting for 57.4% of global steel production in April 2023, according to the World Steel Association.
EU-Rwanda business forum to boost trade, investments (The New Times)
Hundreds of business operators from Europe and Rwanda will gather in Kigali, from June 26-27, 2023 for the EU-Rwanda Business Forum to explore investment and trade opportunities, as well as partnerships with businesses in the country, according to the Rwanda Development Board (RDB).
This first-ever forum is organised by the delegation of the European Union to Rwanda and the Government of Rwanda through RDB.
Held under the theme: “Rwanda-your gateway to Africa,” the two-day interactive event, open for all companies to attend, will feature plenary sessions on Rwanda’s business environment and investment opportunities with a focus on sectors with outstanding growth potential including agribusiness, mining, health and pharmaceuticals, financial and digital services, green and sustainable economy.
Burkina Faso: Recent Trends and Outlook for the Economy and Poverty – Building financial resilience to climate risks (World Bank)
According to the latest Burkina Faso Economic Update, economic growth slowed to 2.5% in 2022, with the country posting the highest inflation rate in the West African Economic and Monetary Union (WAEMU), thereby exacerbating food insecurity.
Following a robust recovery of 6.9% in 2021, GDP growth slowed in 2022 to 2.5% (corresponding to a contraction in GDP per capita of 0.1%), owing primarily to a 13.7% decline in mining activity as a result of mine closures. Average inflation reached 14.1% while food prices increased on average by 23.4% over the year.
“Burkina Faso continues to demonstrate resilience, despite the security and humanitarian crises plaguing the country. These various crises are compounded by the country’s vulnerability to climate change,” says Maimouna Mbow Fam, World Bank Country Manager for Burkina Faso. “In light of these overlapping vulnerabilities, Burkina Faso’s medium-term outlook will depend largely on whether it can improve its financial resilience to all kinds of shocks, including climate change.”
Kenya, Djibouti agree on visa-free travel in a move to enhance trade (Capital News)
Kenya and Djibouti have endorsed the reciprocal abolishing of visa requirements for their citizens. Ruto said Sunday during a joint press conference with his Djibouti counterpart Ismail Guelleh, that the move is aimed at fostering people-to-people interactions, trade, and investment.
He reiterated his administration’s commitment to eliminating the barriers imposed by visa requirements for Djiboutian citizens traveling to Kenya.
To improve coordination on labor migration and ensure predictability, President Ruto said that both governments had agreed to accelerate the negotiation and finalization of a comprehensive labor agreement between the two states. Ruto stated that to facilitate the process of harnessing Kenya’s skilled workforce, both governments had established a Joint Technical Committee dedicated to these efforts.
NPA expects trans-shipment cargoes at Lekki Port June ending (Tribune Online)
The Nigerian Ports Authority (NPA) has said that it expects to receive the first set of trans-shipment cargoes at Lekki Port in three weeks time (June ending).
Speaking over the weekend during the commissioning for Lekki Port operations, two 80-Ton Bollard Pull Tug-boats christened M.T MAIKOKO and M.T DA-OPUKURO, the Managing Director of the NPA, Mohammed Bello-Koko revealed that the agency recently had a meeting with officials from Chad, Niger and Cameroon over movement of their trans-shipment cargoes from Lekki Ports.
According to the NPA Managing Director, “By acquiring this Tug boats, which are the largest in Africa, we will be able to bring in vessels of all sizes. What this means is that there would be less waiting time and it will eventually lead to reduction in cargo dwell time.
Ghana to intensify trade business and investment across Africa, rest of the world (Ghanaweb)
Small and medium-sized enterprises (SMEs), investors and business executives in Ghana and around the world have been assured of a robust economic gains by the Global-Africa Trade Advisory Chamber, (GATAC), through the Africa Continental Free Trade Agreement (AfCFTA). This was revealed by the president of GATAC, Mr Dominic Oduro Antwi at the second edition of the Global Africa Business dialogue held in Dubai.
Following a successful launch of the Global Africa Trade Advisory chamber in Accra on the 10th of December 2021 and the maiden edition of the Global Africa Business dialogue in Accra, the second edition has been held in Dubai with the focus of revamping Africa’s economy by increasing trade investment through the Africa Continental Free Trade Agreement (AfCFTA).
Speaking at the event Dr. Arshi Ayub Zaveri, a special advisor to the Royal Family in Abu Dhabi acknowledged the chamber’s role in line with the government’s vision to promote trade and make Ghana the hub of investment and business in Africa.
After a Decade-Long Hiatus, IMF Surveillance Resumes in Libya (IMF)
Libya has been mired in conflict and political uncertainty since the fall of the Ghaddafi regime in 2011. Until recently, the country’s fragmentation hampered policymaking and the collection of key economic data. However, the country has made significant efforts to move forward and overcome the economic challenges brought by political conflict.
As Libya paves the way for its economic recovery, it has made recent improvements in data collection, sharing, and transparency that have enabled the IMF to resume its surveillance after a decade-long hiatus.
The Joint Meeting of Committee of Ministers responsible for Transport, ICT, Information and Meteorology and Infrastructure from the Southern African Development Community (SADC) will meet virtually on June 16, 2023, to assess the status of implementation of decisions and progress made since the sectorial meeting held in July 2021 as well as the status of implementation of SADC Summit of Heads of State and SADC Council of Ministers decisions. The meeting will further receive progress reports on programmes and activities in line with the SADC Regional Indicative Strategic Development Plan (RISDP 2020-2030), as well as the SADC Regional Infrastructure Development Master Plan (RIDMP 2012-2027).
In support of the SADC Industrialisation Strategy and Roadmap 2015-2063, the Ministers will consider the status of implementation of regional infrastructure programmes that support the industrialisation agenda while promoting regional integration and economic growth in line with the SADC Vision 2050 and RISDP 2020-2030.
Building foundations for a safe, green and inclusive built environment in Sub-Saharan Africa (World Bank)
Building regulatory frameworks, which comprise a set of laws, regulations and implementation mechanisms that reference the planning, design, construction, and control mechanisms, have proven to be the most effective tools to protect health and safety in the built environment and reduce disaster risk. This is especially true in Sub-Saharan Africa where population growth and a rapid transition from rural to urban development is expected to lead to a demand for hundreds of millions of new buildings over the next few decades.
This study, Building Regulations in Sub-Saharan Africa: A Status Review of Sub-Saharan Africa’s Building Regulatory Environment, supported by the Global Facility for Disaster Reduction and Recovery (GFDRR), provides the first comprehensive snapshot of the building regulatory environment in the region. Data was gathered through a desktop review of regulatory documents from all 48 countries in the region, with additional information provided by survey data and interviews from public and private sector experts on the ground.
Manufacturers, free trade can help to overcome Africa’s energy crisis (Engineering News)
African manufacturers have a significant role to play in helping to remedy the continent’s energy crises by developing innovative solutions for energy storage and access. By creating products tailored to the needs of the African context, manufacturers can help reduce energy poverty, increase energy efficiency and spur economic growth.
However, this depends on whether the right environment is created to help manufacturers expand operations and pursue cross-border investment opportunities, electromechanical equipment manufacturer Actom Group CEO and Manufacturing Circle chairperson Mervyn Naidoo says.
Reducing energy poverty and spurring economic growth can only be accomplished once manufacturers achieve economies of scale. However, there is currently very little economic growth across many parts of the continent owing to a lack of investment in manufacturing capacity expansion.
Middle East, North Africa Vulnerable to Rising Fiscal Risks (IMF)
In an uncertain world, budget revenue and spending often end up far away from government plans. Volatile growth, high universal subsidies, and loss-making state-owned enterprises expose many low- and middle-income economies in the Middle East, North Africa, and Pakistan to such fiscal risks. These factors combine with adverse external developments such as recent interest-rate rises and food and fuel price surges to put public finances under pressure in many countries.
As we explain in a new paper, the “MENAPEG” region—a group that includes economies in the Middle East, North Africa and Pakistan but excludes high-income Gulf countries—is especially vulnerable to fiscal risks. In fact, small fiscal risks occur in countries every year. Importantly, larger shocks that cause debt to increase by an average of 12 percent of gross domestic product occur, on average, once every eight years.
Unleashing the Potential: India-Africa Business Engagement in the Global South (Financial Express)
The growing cooperation between India and Africa is poised to witness a boost, leveraging the emerging scenario of Global South collaboration. With a trade target of US$200 billion by 2030, a significant surge from the current US$90 billion level, and a goal to double Indian investments in Africa to $150 billion, the stage is set for a transformative partnership.
The 18th edition of the CII-EXIM Bank Conclave on India Africa Growth Partnership, themed ‘Creating Shared Future,’ is slated to take place in New Delhi from June 14-16, 2023.
The realization of the Africa Continental Free Trade Agreement (AfCFTA) goals presents fresh avenues for Indian investments in Africa, with the potential to double cumulative Indian foreign investments in the region to US$ 150 billion in the years to come.
Africa needs deeper linkages employing its opportunity to champion in trade and investment of the global market, Trade and Regional Integration State Minister Endalew Mekonen said. Addressing the Africa trade and investment summit held in Addis Ababa today, State Minister of Trade and Regional Integration Endalew Mekonen said “Africa can be an opportunity of champion related to trade and investment in a global market.”
He added it is important that Africa goes to deeper and deeper particularly into continental market linkage among African countries such as AfCFTA.
State Minister of Industry Hassan Mohammed for his part mentioned the reform agenda which has been key in easing doing business in Ethiopia. ‘Let Ethiopia Produce’ movement is also one of the recent initiatives which is being undertaken by the government to promote the ample investment opportunities in the country, he indicated. Invest in Ethiopia’s manufacturing, mining, agriculture and other emerging sectors and opportunities and economic challenges shaping Africa’s future were among the points of discussion at the one-day summit.
African leaders to advance the blue economy and climate action in Moroni (UNECA)
A three-day ministerial conference on “The Blue Economy and Climate Action in Africa: Island and Coastal States at the Forefront” with a focus on the Great Blue Wall initiative will be held from 12 to 14 June 2023 in Moroni, the capital of the Union of the Comoros.
The conference will bring together ministers, experts, civil society representatives, and development partners to discuss the challenges and opportunities of the blue economy in Africa, as well as the best practices and policies to address the impacts of climate change on coastal and marine ecosystems. This meeting is expected to adopt a declaration and a roadmap for advancing the blue economy agenda in Africa, as well as a framework for cooperation and partnership among stakeholders.
Nigeria formally accepts the Agreement on Fisheries Subsidies (WTO)
DG Okonjo-Iweala said: “I am profoundly grateful to Nigeria for formally accepting the WTO Agreement on Fisheries Subsidies. I am proud to see the country’s continued commitment to sustainable development and its vote of confidence in the work of the WTO. Nigeria’s acceptance adds to our growing tally of members that have accepted the Agreement — we have received about one-third of the total that we need for the Agreement to enter into force. I hope that Nigeria’s action serves as an inspiration to other governments in Africa and the rest of the world to move swiftly to implement the Agreement and foster global cooperation for the benefit of our shared future.”
Working group on food security intensifies discussions, eyes first report in July (WTO)
Trade and Environment Week 2023 to spotlight collective trade solutions for sustainability (WTO)
DG Okonjo-Iweala: Faced with risk of fragmentation, WTO members must stick together (WTO)
“This is a very uncertain time in the world,” said the Director-General. “The world economy is growing slowly. There are very serious geopolitical tensions. We have problems of the global commons like climate change, and we have the war in Ukraine. So there are a number of uncertainties that are facing the global trading system.”
The Director-General expressed concern about the existing geopolitical tensions between major traders, which are leading to an increasing narrative of decoupling into two separate economic blocs, deglobalization and the risk of fragmentation of the global trading system. She noted that this situation arises from the serious vulnerabilities in global supply chains and the trading system as a result of the COVID-19 pandemic and the war in Ukraine. She said there is a need to be very cautious as having a world trading system divided into two or more blocs could be very costly for the entire global economy.
Intermediate goods exports fall in fourth quarter of 2022 amid supply chain disruptions (WTO)
World exports of intermediate goods (IGs) fell by 10 per cent year-on-year in the fourth quarter of 2022 to US$ 2.3 trillion, reflecting the disruptions global supply chains faced in the closing months of the year due to the geopolitical context, commodity shortages, high energy prices and weak consumption. The decrease affected practically all regions.
The decrease in global IG exports can be partly traced to the product categories “parts and accessories (excluding transport equipment)” and “other industrial supplies,” which declined by 13 per cent and 14 per cent respectively year-on-year in the fourth quarter of 2022. World exports of ores and precious stones, meanwhile, decreased by 3 per cent, reflecting the downward demand worldwide and a decrease in prices, especially for iron ores. Food supply chains, in contrast, remained resilient with IG exports in the “food and beverage” product category rising by 7 per cent.
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SA’s logistics chain in ‘desperate’ need of PPPs – SAAFF (Engineering New)
Port and rail parastatal Transnet and government cannot “go it alone” to repair South Africa’s strained logistics network, says South African Association of Freight Forwarders (SAAFF) CEO Dr Juanita Maree.
“Our current ports and rail model is, at best, archaic compared to international standards, while it also fails the country’s socio-economic growth and development goals.”
Maree says South Africa “desperately needs” a public-private partnership (PPP) model that will create jobs and attract “much-needed” investment in the logistics sector and the economy.
SA’s strong exports surprisingly narrowed current account deficit (The Citizen)
South Africa’s strong exports narrowed the country’s current account deficit in the first quarter of 2023, declining to a seasonally adjusted and annualised deficit of R66.2 billion or 1% of GDP. The narrowing surprised economists as it follows the steep deficit of R155 billion (2.3% of GDP) in the fourth quarter of 2022.
According to data released by the Reserve Bank (Sarb) today, South Africa’s trade surplus widened from R34.2 billion in the fourth quarter to R103 billion in the first quarter as the value of goods exports increased more than that of merchandise imports.
The shortfall on the services, income and current transfer account narrowed for a third consecutive quarter to R169 billion from R190 billion in the fourth quarter. The Sarb says the smaller deficit emanated from a smaller deficit on the services account, while the deficits on the primary and secondary income accounts increased.
Namibia exported goods worth N$218m to Kenya in five years (Windhoek Observer)
Namibia exported goods to a value of N$218.7 million during the period 2015 to 2022 to Kenya, Namibia Statistics Agency has revealed. Statistician General, Alex Shimuafeni said on the demand side, Namibia imported goods amounting to N$89.2 million from Kenya over the same period. The statistics on Kenya was part of the NSA’s comment on the intra-Africa trade that looked at Namibia’s trade with Kenya.
The NSA commented that the African Continental Free Trade Area (AfCFTA) is one of the flagship projects of Agenda 2063: The Africa We Want. It is a high ambition trade agreement, with a comprehensive scope that includes critical areas of Africa’s economy, such as digital trade and investment protection, amongst other areas.
The NSA further said during April 2023, Namibia imported goods amounting to N$ 4.3 billion from the rest of Africa with goods valued at N$0.1 million being sourced from Kenya, whereas, on the supply side, the country supplied Africa with goods worth N$ 4.2 billion during the month under review with N$1.9 million of goods destined to Kenya. The export basket to Kenya mainly comprised of alcoholic beverages.
AfCFTA holds promise for SA exports, but implementation roadblocks remain (Engineering News)
While the African Continental Free Trade Area (AfCFTA) Agreement presents a significant opportunity to access a larger market for South Africa‘s exports and the local manufacturing sector, industry organisation Manufacturing Circle executive director Philippa Rodseth highlights the need for extensive work in terms of implementation.
Speaking during Creamer Media’s local manufacturing-focused webinar, she mentioned ongoing discussions and negotiations relating to trade bloc and tariff agreements as some of the challenges that needed to be addressed.
“From an industry perspective, manufacturers need to be more proactive and well informed about the agreements and opportunities within the regional value chain,” Rodseth noted, stressing the need to understand South Africa‘s trade interests, both in terms of exporting products and defending against imports.
To do this, she suggested that South Africa‘s manufacturing industry “work towards providing valuable insights to South African trade negotiators and find ways to address nontariff barriers”.
Sinimbo embraces African free trade e-commerce (New Era)
The inclusion of a digital trade protocol within the African Continental Free Trade Area (AfCFTA) should minimise many already existing challenges across the continent. This can significantly contribute to poverty reduction through the employment as well as e-commerce training and capacity building.This is according to deputy trade and minister Verna Sinimbo who shared these sentiments in London this week during a two-day Commonwealth trade ministers meeting.
“The e-commerce will decrease transportation costs for trade deliveries by removing tariff barriers and will upgrade digital infrastructure by establishing more reliable payment solutions and improving internet access across the continent,” Sinimbo explained.
She added that due to the complexity of e-commerce, it overlaps with many areas of trade and law, such as consumer protection, data protection, intellectual property rights, competition policy, tax-related issues as well as regulation on online dispute settlement.
Angola committed to AfCFTA accession process (Angop)
Angola remains committed to the process of accession to the African Continental Free Trade Area (AfCFTA), ANGOP learnt on Thursday. The country’s engagement was announced by the director of the Legal Office for Exchange of the Ministry for Trade and Industry, Anatólio Domingos.
Speaking to journalists on the sidelines of AfCFTA Secretariat’s visit to the Trade and Industry Ministry, Anatólio Domingos said the country needs to reach 90 percent of liberalisation of certain products to achieve this goal.
“After the completion of the work, he said, the proposal will be submitted to AfCFTA secretariat division for verification. After a positive response, it will be forwarded to the minister before being submitted to the Cabinet Council for approval,” he explained.
In terms of products and services to be exempted from the customs tariff, Domingos said there are 5,417 tariff lines. For immediate liberalisation, the agreement requires 90 percent of the lines.
Final Communiqué of the 22nd Summit of the COMESA Authority of Heads of State & Government (COMESA)
The Twenty Second Summit of the COMESA Authority of Heads of State & Government was hosted in physical format at Mulungushi International Conference Centre, Lusaka, Zambia on 8 June 2023, under the theme: “Economic Integration for a Thriving COMESA Anchored on Green Investment, Value Addition and Tourism”. The Authority reached agreement in the following trade-related areas, among others: the COMESA Free Trade Area; COMESA-EAC-SADC Tripartite Arrangement; Promotion of Movement of Persons, Labour, and Services; Infrastructure Development; and Agriculture, Industry and Private Sector Development.
COMESA SG Outlines Key Achievements on Regional Integration (COMESA)
Secretary General Chileshe Mpundu Kapwepwe presented detailed report on key developments and achievements recorded in the past year in the COMESA region under the market integration and physical integration pillars.
Presenting her State of Integration Report to the 22nd COMESA Heads of State and Governments Summit, the SG revealed that under trade liberalization, membership to the COMESA Free Trade Area remained at 16 states with the four countries the DR Congo, Eritrea, Eswatini and Somalia at different stages of full liberalisation.
“There was significant increase in COMESA’s trade globally and within the region above the pre-COVID-19 pandemic levels. The value of COMESA’s total exports to the world significantly increased by 56% from US$ 100 billion in 2020 to US$ 156 billion in 2021. The sectors that contributed to this increase were manufactures, fuels, ores and metals and food,” she said.
Report on the State of Integration of the Common Market for Eastern and Southern Africa (COMESA)
This report highlights developments and status of the regional integration process in COMESA since the 21st Summit held in November 2021, Cairo, Egypt. The report covers key achievements, challenges & constraints and proposed way forward.
Within the period, the COVID-19 pandemic dealt a considerable blow to economies in the region. Food insecurity increased, export revenues shrank, tourism sectors collapsed, while healthcare & social protection requirements ballooned, even as the pandemic eased. In addition, the conflict in Europe exacerbated budgetary pressures on prices of food, fuel and fertilizer with increase in debt burdens.
However, COMESA continued implementation of various programmes under the 2021-2025 Medium Term Strategic Plan whose key pillars include: Market Integration, Physical Integration/Connectivity, Productive Integration, and Gender and Social Integration.
Building investment partnerships in ECOWAS and COMESA regions (News Ghana)
The International Trade Centre (ITC), in collaboration with the COMESA Business Council and the COMESA Regional Investment Authority, are promoting trade and investment between the Economic Community of West African States (ECOWAS) and the Common Market for Eastern and Southern Africa (COMESA) regions.
As part of the West Africa Competitiveness Programme (WACOMP) implemented by ITC, a joint networking event manifested investment opportunities in targeted sectors and value chains, while fostering stronger partnerships between the two regions.
‘In the face of increased competition to attract international businesses, West African countries arguably have a strong card to play. To the extent that investors are well aware of all of these positive developments, international businesses ready to settle in the region will undoubtedly enjoy great returns, while being part of a collective journey towards greater economic and social vibrancy and the emergence of a dominant economic player in Africa and beyond.’ Akadiri Aminou, CEO, Federation of West Africa Chambers of Commerce and Industry (FEWACCI)
Ruto says AU member states will benefit more from stronger union (The Standard)
President William Ruto has called for reforms at the African Union (AU) to unite the continent. Ruto said he had discussed this with legislators of the Pan African Parliament and emphasised the need to adapt the AU to present realities.
“To ensure that the African Union performs at the level of its aspirations, it will be necessary to make sure that it empowers itself with sufficient capacity. Otherwise, African Solutions, Agenda 2063, the Africa Continental Free Trade Area, and the Young, Clean Green Continent of the Future will never be a reality,” he said.
“Member states must consider donating power to AU in trade, regional and global security matters as well as other areas that Africa can benefit from engaging together rather than individually,” he said.
African Union Retreat on Institutional Reforms and the second decade of Agenda 2063 kicks off (AU)
The African Union Retreat on Institutional Reforms and the preparations of the second decade of Agenda 2063 is currently underway in Kigali, Rwanda.
the retreat will discuss the second ten-year plan of Agenda 2063 that spans from 2024 to 2033. The Agenda 2063, adopted in January 2015, embodies the aspirations of the African people and is operationalized through 5 ten-year implementation plans, with the first plan spanning from 2014 to 2023. The implementation of the second decade of Agenda 2063 will be focused on acceleration, building on the first decade that focused on convergence. Valuable lessons learned from the first decade of Agenda 2063 have been captured in the biennial progress reports and the evaluation of the First Ten-Year Implementation Plan, among other documents, which in turn informed the design of the successor ten-year plan. Key among the revelations was the perception widely held by African citizens that Agenda 2063 is as relevant to the Continent’s development discourses as it was in 2013.
Financing the reforms and Agenda 2063 remains a top priority. Prof. Manasseh Nshuti, Rwanda’s Minister of State in the Ministry of Foreign Affairs and International Cooperation in Charge of East African Community, underscored the urgency for the African Union to realize its vision for reliable and predictable financing mechanism stating, “the Union’s reliance on external partner funding demands sincere discussions to achieve operational autonomy progressively. Since the Kigali Summit of 2016, AU Member States fully fund the organization’s operating budget. However, the continued dependence on external partners for program budget and peacekeeping operations defeats the Johannesburg decision to achieve 75%, and 25% Member States funding. These shortcomings raise questions about our commitment to peacekeeping operations and conflict prevention.”
Continent livestock project seeks to grow production and trade (The Standard)
Africa’s lifeblood is largely dependent on livestock farming, providing livelihoods, food security, and income opportunities for its populace. At the heart of recognising this immense potential was the African Union’s Inter-African Bureau for Animal Resources (AU-IBAR) that since 2017, embarked on a journey with the Sustainable Development of Livestock for Livelihoods in Africa (Live2Africa) project. This transformative initiative was poised to revolutionise the livestock sector, fostering sustainable development and empowering communities across the continent.
Live2Africa focused on addressing the key challenges faced by livestock farmers, improving productivity, enhancing market access, and promoting environmentally friendly practices. Now coming to its end the project that was majorly funded by AU member states and the European Union, focussed its activities aligned with the African Union’s Agenda 2063 development goals. According to Dr Nick Nwankpa, the acting Director of AU-IBAR, leveraging partnerships with governments, research institutions, and local communities, the project was a success.
India is open to negotiate trade agreement with Africa: Goyal (The New Indian Express)
India has expressed interest in negotiating a free trade agreement (FTA) with Africa with an aim to boost economic ties between the two regions. This was stated by commerce and industry Minister Piyush Goyal during his interaction with fifteen ambassadors from several countries of the African region here on Thursday.
“India is open to FTA negotiations bilaterally or individually with African countries or Africa as a whole,” he said. India would act as a trusted partner to expand trade, commerce, business, investment and opportunities with Africa, he said. In such agreements, two or more trading partners either significantly reduce or eliminate customs duties on the maximum number of goods traded between them.
IATA joins forces to strengthen Focus Africa (Airlines)
Focus Africa will strengthen aviation’s contribution to Africa’s economic and social development and improve connectivity, safety and reliability for passengers and shippers. It will see private and public stakeholders deliver measurable progress in six critical areas: safety, infrastructure, connectivity, finance and distribution, sustainability and skills development.
“Focus Africa is all about establishing a coalition of partners committing to pool their resources and delivering a set of African air transport solutions that let the continent, its people and economies play a greater, more meaningful and representative role in the global economy. The combined contributions of AFCAC and AASA will be critical to Focus Africa’s success. Africa accounts for 18% of the global population but less than 3% of global GDP and just 2.1% of air passenger and cargo transport activity. With the right interventions those gaps will be closed, and Africa will benefit from the connectivity, jobs and growth that aviation enables,” said Willie Walsh, IATA’s Director General.
Financing Climate-Resilient Infrastructure in Africa (ThinkTwenty (T20) India 2023)
Amidst rapidly escalating climate crises, there is an urgent need to enable African countries to remodel existing financial infrastructure with the aim of strengthening climate resilience and developing green infrastructure. As the world scrambles towards decarbonisation, the G20 nations, which represent the largest source of wealth, with 85 percent of global GDP, are well equipped to support vulnerable countries.
This Policy Brief proposes three mechanisms whereby the G20 can support African countries: providing grant funding and technical assistance to the Programme for Infrastructure Development for Africa (PIDA) to increase the number of high-quality bankable projects and mobilise financiers; strengthening the coordination of climate financing from the G20 countries to the continent; and unlocking financial technology and entrepreneurship to mobilise financing for bankable projects. This Brief further recommends that the G20 should use its technical capacity, financial muscle, and convening power to put African countries on the path towards climate resilience.
On World Oceans Day, DG Okonjo-Iweala welcomes EU acceptance of fishing subsidies agreement (WTO)
The European Union this week deposited its instrument of acceptance of the WTO Agreement on Fisheries Subsidies, marking a major development towards the Agreement’s entry into force. The EU’s instrument of acceptance was presented to Director-General Ngozi Okonjo-Iweala in Paris on the side lines of the Organisation for Economic Co-operation and Development’s (OECD) Ministerial Council Meeting by Minister for International Development Cooperation and Foreign Trade Johan Forssell of Sweden, which currently holds the Presidency of the Council of the EU; European Commission Executive Vice-President and Commissioner for Trade Valdis Dombrovskis; and European Commissioner for Environment, Oceans and Fisheries Virginijus Sinkevičius.
“On this day when the international community comes together to celebrate and protect our ocean, I urge more WTO members to ratify the Agreement on Fisheries Subsidies so it can enter into force, and start delivering sustainable benefits for marine fisheries, as soon as possible. I also call on all WTO members to continue and deepen their engagement in the second wave of fisheries subsidies negotiations, so that a successful conclusion can be reached at our 13th WTO Ministerial Conference next February in Abu Dhabi.”
Strong and effective WTO a vital tool for building economic resilience — DG Okonjo-Iweala (WTO)
Speaking to a ministerial gathering at the Organisation for Economic Cooperation and Development in Paris on 7 June, Director-General Ngozi Okonjo-Iweala said a strong and effective WTO is a vital tool for building resilience in an increasingly shock-prone global economy. She called for a strategy of “re-globalization” which would build greater resilience by bringing more marginalized countries and communities into the global economic mainstream.
In her address, the Director-General noted that “shortages and bottlenecks of the past three years have exposed genuine vulnerabilities in the way supply chains are organized.”
“A better path to resilience lies in deeper, deconcentrated and more diversified global chains, achieved by bringing more countries and communities from the margins of the global economy to the mainstream,” she told ministers. “At the WTO, we are calling this ‘re-globalization’.”