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Joint Efforts Are Critical in Pulling SA Out of Its Economic Challenges (the dtic)
“As much as government and big business industry players have a role to play in contributing to the creation of jobs and growth of the economy, ordinary South Africans can make a serious mark if they utilise their drive and skills to grow successful businesses. The government is interested in seeing not only the emergence of more business operators, but ensuring that they grow in leaps and bounds to greater heights. Job creation can only be realised through the growth of SMMEs, as government we are duty bound to pay particular attention in providing necessary support, both financial and non-financial,” pledged Gina.
The Deputy Minister of Trade, Industry and Competition, Ms Nomalungelo Gina says government needs all key players, including ordinary South Africans to deal with challenges of unemployment, poverty and inequality. She was addressing small business operators who attended the business imbizo at the Sisizakele Special School at Bhambanana in Jozini, KwaZulu-Natal.
Uganda in dilemma on scrapping 10pc duty on sugar imports (The East African)
Uganda’s government finds itself in a dilemma over whether to scrap the 10 percent duty remission on imported industrial sugar.
Patrick Ocailap, deputy secretary to Uganda’s Treasury and Deputy Permanent Secretary in the country’s ministry of finance, told The EastAfrican that withdrawal of the privilege can be compensated through local production of industrial sugar which plays into the push for import substitution, creation of jobs and industrial linkages.
So far, the Uganda Sugar Manufactures Association (USMA) says it had negotiated for a delay in the withdrawal at least until the next fiscal year, according to USMA Secretary-General Wilberforce Mubiru.
Soft drinks manufacturers are the key users of industrial sugar. They complain that the price for locally produced industrial sugar ($1,015 per tonne) is already a disadvantage compared with that of imported sugar at $900 per tonne.
New taxes: Government has no intention to kill businesses - Deputy Trade Minister (MyJoyOnline.com)
Deputy Minister for Trade and Industry Michael Okyere says government will continue to engage businesses over their grievances relating to the new tax measures introduced by the government.
The Ghana Union of Trader’s Association (GUTA) and the Ghana National Chamber of Commerce and Industry (GNCCI) argue that the revenue measures are counterproductive hence the need for government to reverse them.
Speaking to Joy News’ Blessed Sogah on the sidelines of the African Continental Free Trade Area (AfCTA) Business Forum in Cape Town – South Africa, Michael Okyere Baafi says the intention of government is not to kill any businesses.
“The intention of government is not to cripple or sabotage businesses. That’s not what government has in mind. Government’s interest is to encourage people to do business and also when they do businesses and when they grow, those businesses are supposed to pay more taxes to government so that we can be able to undertake projects like very good infrastructural projects like roads, other things that will benefit car users and users of social services in the country,” he said while announcing that a series of dialogues will continue in order to find common grounds with private sector.
High food prices pressure Morocco export-led agricultural model (The East African)
Soaring inflation in Morocco is driving up living costs and stirring public anger, and as food prices increase the country’s export-led agricultural model is coming under fire.
Official figures from February put year-on-year inflation in the North African country at just over 10 percent, a figure that also included a 20 percent jump in food prices. The price of fresh produce in Morocco is almost as high as in some Western European supermarkets, but the minimum wage for Moroccans is just $300 (275 euros) a month.
Faced with growing criticism, Morocco’s Agriculture Minister Mohamed Sadiki attributed high food prices to ‘external and cyclical factors’ such as the rising cost of raw materials and a cold snap that delayed the picking of tomatoes.
In an attempt to stem the price rises, Rabat suspended exports of some products in early February including tomatoes, to ensure supplies for the local market. But that move drew protests from professional bodies who urged Moroccan Prime Minister Aziz Akhannouch reconsider the measure.
Trade in local currency may boost Egypt’s economic recovery (ZAWYA)
Egypt has started trading with other countries using their own currencies instead of the USD dollar. This comes as the country has agreed to import products from Russia and India using the Russian ruble and the Indian rupee. Accordingly, Egypt will no longer need to secure USD in order to import goods from both countries. Since 2018, the local currency settlement (LCS) mechanism has been implemented and embraced by a number of countries, including Malaysia, Japan, Thailand, and China. This helped maintain a positive LCS growth trend within the financial markets, recording $868 million in the first quarter (Q1) of 2022, according to the Bank of Indonesia. Experts believe that adopting this LCS mechanism in international trade will help Egypt’s economic recovery.
In September 2022, Russian Ambassador to Cairo Georgy Borisenko said that his country adopts a settlement mechanism using the local currency in trade exchange between Egypt and Russia, which includes a mutual acceptance of payments in the Egyptian pound or the Russian ruble in the two countries trade.
Moreover, India adopted a new foreign trade policy to trade in rupees with countries facing a shortage of dollars in order to “disaster-proof” them and to boost its exports, Sunil Barthwal, Commerce Secretary, said in a news conference in New Delhi late March 2023.
To import using the local currency of the exporting country, Egypt needs to reach an agreement with the central banks of these countries to obtain their currencies for trade or to allow the payment in EGP for them. While the North African country mainly imports its wheat from Russia, its wheat imports from Russia decreased by 6.7% in 2022; however, Russia’s share of Egyptian wheat imports increased to 57% from 50% in 2021, according to Reuters. Moreover, Egypt’s rice imports from India were worth $87.19 million in 2022, according to the United Nations COMTRADE database on international trade. Egypt plans to purchase at least 150,000 tons of rice from India; therefore, getting into a deal with both India and Russia is beneficial for Egypt, which has just resolved an issue of goods piling up at ports due to the USD shortage.
EAC to digitise tariffs for imported goods (The Citizen)
The East African Community (EAC) secretariat has commenced the process of digitising its Common External Tariffs (CET). The programme, being implemented with the support of the World Customs Organisation (WCO), is geared to enhance the private sector’s participation in international trade. Through the digitisation of the CETs, the business community—exporters and importers—will have access to trade information from the private sector in international trade.
The platform, which is currently under development in partnership with Global Trade Solution (GTS), will enable seamless migration of the EAC CET during the transposition of the Harmonised System (HS).
The EAC currently implements a four-band CET with a minimum rate of 0 percent for raw materials and capital goods and 10 percent for intermediate goods not available in the region. The other is 25 percent for intermediate goods available in the region and 35 percent for imported finished products available in the region. There are, however, other products classified as ‘sensitive products, which attract a rate above 35 percent, listed in Schedule 2 of the CET.
In automating the EAC CET, the scale, scope and speed of engagement by the private sector are expected to increase as a result of enhanced access to trade information in a digitally connected environment.
Concern as alternative funding model for EAC not yet in sight (The Citizen)
The alternative funding mechanism for the East African Community (EAC) is not yet in sight, over 20 years after it was mooted. The regional body, which has expanded to seven nations from three in 2000, is still partly dependent on donor support to finance its activities.
Minimal progress has reportedly been made despite an earlier commitment to roll out the new funding model by 2018.
The report tabled before a recent sitting of the East African Legislative Assembly (Eala) in Bujumbura, Burundi, noted: “We need a self-sustaining community rather than a donor-dependent one.”
ECOWAS member states urged to open market to Spanish investors (Ghanian Times)
The Ghana’s Ambassador to Spain, Mr Mohammad Adam has urged the Economic Community of West Africa States (ECOWAS) to make its partnership open to Spanish investors.
He has stressed the need for ECOWAS to consider a business forum with the Spanish Chamber of Commerce and the Spanish Confederation of Business Organisations (CEOE) umbrella to enable business investors geton-board, share their experiences and investment projections with the community.
“This business world in Spain when given the opportunity could provide needful tools to support the ECOWAS region and its agencies by increasing investments, jobs, shelter, commerce, social amenities and providing more to the economic sustainability mechanisms for the millions of inhabitants in the community,” he added.
The Third Meeting of the ECOWAS Regional Trade Facilitation Committee (RTFC) was held on 27 – 29 March in Accra – Ghana, to review the implementation of regional trade facilitation reforms and consider innovative approaches to improve free movement of goods in the region. The meeting also provided the regional experts with a platform to consider the ECOWAS Non-Tariff Barrier (NTB) Elimination Policy and the Regional Trade and Transport Facilitation Strategy, which are expected to significantly reduce the challenges faced traders in the region and increase intra-ECOWAS trade.
Mr. DJALO, Secretary General at the Ministry of Trade of the Republic of Guinea Bissau, and Chair of the Meeting, noted that the region can greatly benefit from the opportunities presented by the continental free trade area. He also highlighted that the need to reduce barriers to intra-regional trade and facilitate free movement of goods as enshrined in the ECOWAS protocol. He noted that the meeting will provide an opportunity for participants to make proposals in order to address challenges associated with free movement of goods and urged participants come up with actionable recommendations during the meeting.
Africa needs to reduce structural and regulatory barriers to market entry - Paul Mashatile (IOL)
South African Deputy President Paul Mashatile has hailed the establishment of the African Continental Free Trade Area (AfCTA) adding that it will “become a game changer to the continent’s growth trajectory.”
According to Mashatile, “there exists continental-wide consensus on the need for Africa to reduce structural and regulatory barriers to market entry and to invest in the necessary infrastructure to facilitate intra-African and global trade – more so road and maritime infrastructure. At present, the quality of much of the continent’s maritime, road and railway infrastructure is less than satisfactory. There are few road links, general poor road infrastructure maintenance and limited regional road linkages throughout the continent’s five regions.”
African countries should engender innovation, not become dumping ground —AU official (Tribune Online)
Professor Olalekan Akinbo of the African Union Development Agency (AUDA-NEPAD) has said that African countries should create room for innovation in order to avoid becoming a dumping ground for other countries’ innovations. Prof. Akinbo stated that it was imperative for African governments to create the enabling policy and environment to support innovations.
The supervisor at the Centre of Excellence in STI added that countries unwilling to innovate would definitely be left behind. He urged governments in Africa to deploy innovation into agriculture and move from subsistence to commercial farming so as to guarantee food sufficiency with surplus for exports.
“We are in a global village and every country, every continent relates in the area of trade. Therefore, Africa needs to be competitive
Africa’s industrialisation drive - the role of AfCFTA & regional DFIs (Trade Finance Global)
Over the next two years, Africa’s economic growth is expected to average around 4% above the estimated growth for developed economies. Yet, the majority of its population remains below the poverty line.
The sustained economic growth is partially attributable to commodity trade in its raw form but does not translate into similar levels of economic development. Industrialisation is a critical component of economic development, with many benefits that include improved standard of living, economic stability, growth in agricultural production, the balance of payment surpluses and high employment rates.
While several African countries have unique policies as part of the import substitution drive to reap the benefits of industrialisation, the impact of these policies are yet to be realised. There is a need for governments to create an enabling environment to help industries succeed.
Illicit trade crackdown can help pull debt-ridden African governments back from the brink (Ventures Africa)
Amid significant global economic turbulence, all eyes last week were on the annual Spring Meetings of the World Bank and International Monetary Fund (IMF) held in Washington, D.C. between 10 and 16 April.
High on the agenda were the deteriorating debt and climate finance crises facing the developing world. New research from ActionAid published alongside the meetings highlights that 93% of the most climate-vulnerable countries in the Global South – including Somalia, Malawi, and Mozambique – are “drowning in debt.” Alarmingly, nearly two-thirds of these nations are drastically slashing public spending to repay loans, hindering progress in funding vital climate resilience and sustainable development efforts.
A silent menace is greatly exacerbating this budgetary disaster: the illicit trade, which robs governments of massive amounts of tax revenue every year while undermining medical, environmental and economic health. Robust action to tackle Africa’s thriving counterfeit markets – namely traceability and authentication systems paired with regional regulatory cooperation – thus has a crucial role to play in easing budgetary pressures and unlocking the continent’s potential.
U.S.-Africa duty free program has had mixed results - trade panel report (Reuters)
A major U.S. trade preference program for Sub-Saharan Africa has been successful for developing the region’s apparel sector in selected countries, but its benefits are not widespread throughout all countries and sectors, a new report to the U.S. Congress showed on Monday. The U.S. International Trade Commission (USITC) said its report on the African Growth and Opportunity Act (AGOA) trade benefits shows that they have helped reduce poverty and create jobs in certain countries, particularly for women.
The report highlighted apparel as the biggest success story for the program, with the industry having a positive impact on poverty reduction in major exporters Madagascar, Kenya, Lesotho, Mauritius and Ethiopia.
“AGOA benefits appear to be essential for Sub-Saharan Africa countries to maintain their apparel exports to the United States,” the USITC report said, noting that loss of AGOA benefits by failing to meet eligibility criteria results in significant declines in exports to the United States.
“While certain sectors and countries have benefited from the program, AGOA has not achieved all that we had hoped, and more work must be done to improve our economic relationships,” said U.S. Representative Richard Neal, the top Democrat on the Ways and Means Committee.
Global Africa Business Initiative introduced to South Africa (UN Global Compact)
The Global Africa Business Initiative (GABI) has been introduced to South Africa at the Africa Continental Free Trade Area Business Forum being held in Cape Town this week held under the leadership of Wamkele Mene, Secretary-General of AfCFTA.
During opening remarks at the AfCFTA Business Forum Sanda Ojiambo, Assistant Secretary-General and CEO, UN Global Compact noted the importance of GABI to AfCFTA’s work:
“By leveraging an extensive network of partners, including the African Union, GABI seeks to address challenges unique to Africa and catalyze long-term solutions. In alignment with the African Union’s 2023 priorities, GABI will foster collaboration on initiatives that support the implementation of AfCFTA. The African business community must utilize this Agreement to drive forward socioeconomic transformation.”
Untapped renewable resources in Africa should receive more attention – RES4Africa (Engineering News)
As the majority of the world embraces a shift in electricity generation away from fossil fuels towards greener, renewable sources of energy, Africa faces several challenges in attracting investment capital to undertake a significant energy transition, renewable energy support foundation Renewable Energy Solutions for Africa (RES4Africa) secretary general Roberto Vigotti stated on April 19.
Speaking during the first of RES4Africa’s Online Lab series, he said Africa’s energy sector was faced with five main decisions about its green energy trajectory, including its ambitions to achieve universal access to energy, meeting energy demand growth and building a reliable power system.
WTO Members Should Allow Digital Trade to Flourish, Not Constrain It (US Chamber of Commerce)
The World Trade Organization (WTO) recently released its latest global trade projections. The headline: sluggish global trade growth of 1.7% projected this year, well below the average of the past two decades.
That’s not good news for a global economy beset by crises. The value of world merchandise trade was $25.3 trillion last year, a record, though inflated by high global commodity prices. The value of world commercial services trade hit $6.8 trillion, of which digitally delivered services exports accounted for more than half, or $3.8 trillion.
This growth can be attributed to a number of factors, but unquestionably, the longstanding WTO moratorium on the application of tariffs on electronically transmitted digital products has played a catalytic role. This is exactly what it was intended to do, for countries across the development spectrum. It’s also why moves by countries such as Indonesia to end this moratorium are so deeply troubling.
Don’t let SDGs turn into ‘mirage of what might have been’: UN chief (UN News)
The Secretary-General pointed to reports showing that, since the pandemic, the richest one percent of people around the world have captured nearly twice as much new wealth as the rest of the world combined.
Inequalities within some countries, he said, are regressing towards early 20th Century levels, a time when women did not have the right to vote; and before widespread acceptance of the concept of social protection.
The UN’s SDG Stimulus Plan, explained the UN chief, aims to boost investments that will help to achieve the Sustainable Development Goals (SDGs), relieve the debt burden of developing countries, and improving access to funding.
Working group on food security discusses building resilience, financing challenges (WTO)
At a meeting of the WTO’s working group on food security held on 17 April, WTO members stressed the need to enhance agricultural production and productivity in least-developed countries (LDCs) and net food-importing developing countries (NFIDCs) to improve their resilience to the acute food security crisis. Members exchanged insights from the workshop on production resilience that took place on 12 April and continued their discussion on financing challenges. They also reviewed the most recent results from the needs assessment questionnaire.
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Competition Commission steel industry inquiry to look into loss of competitiveness (Engineering News)
The Competition Commission of South Africa has gazetted the draft terms of reference for a new market inquiry into the South African steel industry, which will examine whether or not there are any features or combination of features in its value chain that impede, distort or restrict competition in the domestic steel industry.
The commission highlights that, in 2014, the South African steel industry was ranked nineteenth in terms of global crude steel production and was the largest producer on the African continent, producing more than half of the continent’s steel output.
Ramaphosa says digital economic investments will propel SA into new era of innovation (Engineering News)
While all investments contribute to economic growth and job creation, investments in the digital economy particularly will propel the country into a new era of innovation and progress, said President Cyril Ramaphosa.
In his weekly letter to the nation, he said that not only was the digital economy important for growth, but it was also vital to the provision of key services such as education, social services and health care.
SON Rolls Out Additional Security Authentication to Stem Product Counterfeiting (This Day Live)
The Director General/Chief Executive, Standards Organisation of Nigeria (SON), Mallam Farouk Salim, has said arrangements have been finalised for the launch of its Product Authentication Mark (PAM) sticker to check the inflow of fake, sub-standard, and counterfeit goods imported into the country.
Speaking at a stakeholder’s sensitisation programme on PAM), he said over 20 security feature stickers have been created adding that when fully in use, these will address the prevailing challenges experienced as a result of dishonesty on the part of fraudulent importers and manufacturers of products.
He said, “SON introduce the SONCAP to ensure the quality of products in our market that we will be proud of as consumers while the merchants of fake products will continue to flood the market with substandard items. “We also introduced for the locally manufactured goods the MANCAP in order not to be seen by the International Community as creating a trade barrier so that imported goods cannot come into our country especially with Nigeria being a signatory to the African Continental Free Trade Area (AfCFTA). “With this imported product will be certified and given the Product Authentication Mark (PAM) and it will be in our market.”
Ethiopia Moves Towards Liberalization of Trade in Services (COMESA)
Trade in Services plays a key role in the economic growth and development of a country. Services directly support production but also value chains and create jobs and other economic and non-economic opportunities. For Ethiopia, there exist numerous strategic services namely transport (air transport where Ethiopia Airlines remains a leader when it comes to air connectivity), arts, sports & recreational services. Others are financial, tourism and energy-related services.
Ghana, Netherlands renegotiates 34 year BIT (BusinessGhana)
Ghana and the Netherlands have started renegotiating their 34-year-old Bilateral Investment Treaty (BIT) in order for the agreement to conform to current global economic dynamics.
The current BIT was signed on March 31, 1989 and operationalised on July 1, 1991, for the trading of agricultural products like cocoa beans, fresh fruits, and vegetables from Ghana, and machinery, agricultural inputs, chemicals, and electronic equipment from the Netherlands.
At a ceremony to begin exploratory talks in Accra last Wednesday, the Deputy Minister of Foreign Affairs and Regional Integration, KwakuApratwum-Sarpong, announced new proposed areas for the BIT, expected to be ready in approximately two years.
Comoros has huge untapped investment potential (Africa Renewal)
In February 2023, the Union of Comoros ratified the African Continental Free Trade Area (AfCFTA). Later that month, the country’s President Azali Assoumani took over as Chairperson of the African Union. In this interview with Africa Renewal’s Kingsley Ighobor, the UN Resident Coordinator in Comoros François Batalingaya explains the UN support for the country during the ratification process and highlights investment opportunities in the country.
Q: Comoros recently ratified the AfCFTA. What kind of support did the UN provide the national authorities in ensuring a successful ratification process?
A: As you know, President Azali Assoumani was one of the first African leaders to sign the African Continental Free Trade Agreement in Kigali in 2018. So, Comoros was always there with a high-level political will. However, there were some concerns about a potential loss of customs revenue, which represents between 40 per cent and 50 per cent of the total government revenue. Not all the Members of Parliament or senior government officials were convinced that the AfCFTA is a good idea.
Comoros’ main trading partners are in the Middle East, not the African mainland. For example, India and Pakistan. As well as China and Brazil. We import most of our chicken from Brazil.
Q: What are some made-in-Comoros products the country could potentially export to the larger African market?
A: These are essential oils like ylang-ylang of which Comoros is the number one producer in the world; we have spices that are beloved in places like India; we have vanilla and cloves. We need to create value chains around these products and export to countries like Kenya, Sudan, Somalia, Djibouti and others. Comoros needs to access these markets.
Africa’s private sector converge in Cape Town to accelerate AfCFTA (MyJoyOnline.com)
Africa’s private sector will descend upon Cape Town, South Africa to participate in the 2023 African Continental Free Trade Area (AfCFTA) Business Forum – the first one to be held in person.
A statement released by the AfCFTA secretariat notes the key objectives of the event are to create awareness of the current trade and investment opportunities in the area among Africa’s business community; connect businesses to funding opportunities for AfCFTA value chains; establish a private sector engagement platform for continued consultations on private sector needs in the implementation of the AfCFTA; and to promote a private sector-friendly environment, especially for Small, Micro and Medium Enterprises (SMMEs) led by Women and Youth, to unlock more accessible and affordable trade finance opportunities.
The AfCFTA Secretary-General His Excellency Wamkele Mene has called on Africa’s business community to partner with the Secretariat in order to ensure a successful implementation of the Agreement.
He said “creating an integrated One African Market hinges upon effective private sector participation in the implementation of the AfCFTA. It is therefore critical that Africa’s private sector, as one of the key drivers, takes a keen and active interest, supports and fully participates in AfCFTA’s programmes”.
Intra-Africa trade key to mitigate support from IMF other financial institutions – AfCFTA boss (GhanaWeb)
Secretary-General of the African Continental Free Trade Area (AfCFTA), Wamkele Mene, has noted that intra-Africa trade is the only way to help African economies build robust and more resilient economies to absorb any shock – internally or externally. This, he said, will help managers of African economies to stop running to the International Monetary Fund (IMF) and other financial institutions for monetary support whenever there is an economic meltdown.
Speaking at the AfCFTA Business Forum in Cape Town, South Africa, Mr Mene disclosed that the Bretton Woods institution has diverted global capital targeted at helping ailing economies bounce back on track to the advocacy of climate change.
He stressed that intra-Africa trade on the continent will mitigate the risk of reduced support for development finance as there would be a boost in trade which would in turn reflect in the GDP of every African economy.
Afreximbank gives fresh impetus to intra-African trade (Business Times)
The African Export-Import Bank (Afreximbank) says the share of intra-African trade in the bank’s portfolio has jumped on the back of a US$20bn disbursements meant to drive trade within the continent.
The Cairo-headquartered bank is on drive to boost intra-African trade, which at 18% in 2021 is low below Europe (68%) and Asia at 59%, according to latest data. Afreximbank president Benedict Oramah said the pan African bank has made intra-African trade finance the cornerstone of its interventions and have shown that it is not as “risky as historically portrayed”.
He said the bank has created the African Trade Facilitation Programme through which it is forging strong partnerships with African commercial banks to help them finance intra-African trade.
Standard Bank Gets Behind AfCFTA To Drive Cross-border Growth In Africa (Africa.com)
The African Continental Free Trade Area (AfCFTA) is a key opportunity for Africa to alleviate poverty, drive economic activity and achieve prosperity for her people, says Standard Bank, a key sponsor of this week’s African Continental Free Trade Area (AfCFTA) Business Forum in Cape Town.
“As Africa’s largest bank by assets, Standard Bank is committed to driving her growth and unlocking opportunities across the 20 markets we serve. In this regard, we support solutions that are Africa-centric and where the private sector plays a greater role in the health of local and regional economies. However, trade barriers and other protective internal policies remain stumbling blocks” says Philip Myburgh, Head of Trade for Business and Commercial Banking at Standard Bank.
Recent global supply chain disruptions illustrate the urgent need of building domestic value chains integrated into regional and global supply ecosystems. Standard Bank is optimistic about the benefits of a single market and wants to harness its broad networks and expertise on-the-ground to play a key role in helping AfCFTA take off.
“Standard Bank is building the finance and trade solutions to help address the tariff and non-tariff barriers required to realise the continent’s ambitions to create an effective single market,” says Myburgh.
Visa Foundation to invest US$5m in Africa (The Namibian)
The Visa Foundation plans to contribute US$5 million in grants and impact investments in Africa that would support women’s participation in the digital economy.
This follows Visa’s recent pledge to invest US$1 billion in Africa to advance resilient, innovative and inclusive economies in connection with US vice president Kamala Harris’s trip to Africa and the creation of a new Women in the Digital Economy Fund.
Aida Diarra, the senior vice president and head of sub-Saharan Africa at Visa, said expanding access to digital financial services lay at the core of Visa’s purpose, and the company and Visa Foundation were committed to helping address gender disparity and connecting more people to the global economy.
Visa Foundation’s support would focus on increasing access to financial solutions and other services for women entrepreneurs in sub-Saharan Africa, to drive equitable digital financial access as countries continue to digitise.
Steps Towards a Regional Customs Single Window (COMESA)
Over 50 delegates comprising of IT and legal experts from the COMESA Member States, and cooperating partners begun a four-day meeting of the Technical Working Group on the Implementation of a regional Single Window.
A Single Window as a trade facilitative measure in Customs administration that allows parties involved in trade and transport to lodge standardized information and documents with a single-entry point to fulfill all import, export, and transit related-related regulatory requirements.
With a membership of 21 countries, trade within the region can be complex involving extensive documentation and coordination amongst multiple agencies stakeholders. To overcome this challenge, COMESA has been working with member States to promote the establishment of an Electronic Single Window (ESW) to have a harmonized and standard data connectivity platform among other government agencies and private stakeholders who are active players across the trade supply chain.
Why East Africa could become continent’s next economic giant (The Citizen)
East Africa could soon become Africa’s economic powerhouse if ongoing plans to expand the East African Community are implemented successfully. Latest figures from the International Monetary Fund (IMF) forecast the seven-member bloc’s gross domestic product (GDP) to hit $346.17 billion this year, thanks to notable growth in a number of countries, with Tanzania being the region’s fastest growing economy.
According to the IMF, Tanzania’s economy is projected to grow by about $17 billion from 2021 to 2023 to reach $85.42 billion. Kenya’s economy is projected to reach $118.1 billion this year. This will be a growth of about $8 billion compared to the 2021 level.
According to the East African Community (EAC) secretary-general Peter Mathuki, the bloc’s leaders are at an advanced stage of bringing Somalia on board, to be possibly followed by Ethiopia. The entry of Somalia, with a projected GDP of $8.74 billion, and Ethiopia, whose GDP is set to be $156.1 billion, would lift the EAC’s GDP to $511.01 billion.
IMF’s Sub-Saharan Africa Regional Economic Outlook The Big Funding Squeeze
Growth in sub-Saharan Africa (SSA) is expected to slow to 3.6 percent as a “big funding squeeze”, tied to the drying up of aid and access to private finance, hits the region. This is the second consecutive year of an aggregate decline in SSA growth.
If no measures are taken, this shortage of funding may force countries to reduce fiscal resources for critical development like health, education, and infrastructure, holding the region back from developing its true potential.
Sub-Saharan Africa is far from powerless. Four policies can help navigate the current turmoil: i) consolidating public finances and strengthening public financial management, ii) containing inflation, iii) allowing exchange rates to adjust, while mitigating the adverse effects on the economy, and iv) ensuring important efforts to tackle climate change do not crowd out financing for basic needs like health and education.
“The Group reiterated the need to address rising debt vulnerabilities and continue strengthening the international debt resolution architecture, including by improving the Common Framework for debt treatments. The IMF continues to explore ways to make debt resolution more efficient. To this end, the IMF, together with the World Bank and the India G20 Presidency, have launched a Global Sovereign Debt Roundtable.
“The Group also agreed that strengthening social protection is critical. Social safety nets can promote higher and more inclusive growth by improving education and health outcomes, enhancing human capital and labor market productivity, and encouraging vulnerable households to invest in income-generating activities that also benefit local communities. Leveraging digital infrastructure, such as mobile phone platforms, can help to increase efficiency and ensure social support is well targeted to the most vulnerable.
The U.S. International Trade Commission (USITC) today released its report African Growth and Opportunity Act (AGOA): Program Usage, Trends, and Sectoral Highlights (Inv. No. 332-589). This investigation and report were requested by the U.S. House of Representatives Committee on Ways and Means in a letter received on January 19, 2022.
The report finds that the impact of the AGOA program on beneficiary countries can be substantial depending on the sector, especially apparel. Moreover, although the influence throughout SSA as a whole has been minimal, interviews by Commission staff, fieldwork, and some academic literature indicate that AGOA may have had a positive impact in key areas such as poverty reduction and job growth in some countries. The effect was found to be particularly important in the apparel sector and among underserved groups, such as women. Anecdotal evidence indicated that while meeting AGOA eligibility requirements created a positive impact on workers and poverty reduction, the loss of program eligibility due to failure to meet program requirements had a negative impact on beneficiary economies and regional integration.
Okonjo-Iweala: What COVID-19 taught us about job creation (TheCable)
Ngozi Okonjo-Iweala, director-general of the World Trade Organisation (WTO), says the COVID-19 pandemic taught the world how important global value chains have become for job creation and inclusion.
Speaking at the World Bank/IMF (International Monetary Fund) Spring meetings in Washington DC, the WTO DG, said the COVID-19 vaccine supply chain gave a lot of insight as to how the redistribution of the global supply chain can be structured for more inclusive jobs across the developing world.
“Global value chains are the backbone of trade. Global value chains make up to 45 to 55 percent of world trade. And there are forces for inclusion, they create jobs and help to increase incomes,” Okonjo-Iweala said. “Actually studies have shown that when you have global value chains spreading, per capita incomes go up.
“We are saying that at this time when global supply chains are trying to build resilience by not being concentrated in one country or the other, we need to see this as an opportunity to encourage them to spread to more developing countries as a force to bring even SMEs and women into the value chains,” she added.
DDG González: To make trade more inclusive, make it easier, faster and less costly (WTO)
“Making trade more inclusive is not just morally right, it is also in everyone’s economic self-interest,” DDG González said, adding that “WTO members already have a practical, pragmatic and powerful tool to make trade more diversified, markets less concentrated, and economies more resilient — it is called the Trade Facilitation Agreement.”
Secretary-General’s remarks at the Opening of the 2023 ECOSOC Forum on Financing for Development (UN)
The world is in crisis – a multidimensional crisis that is turbocharging inequalities, with a devastating impact on the poorest and most vulnerable. The 2030 Agenda and the Sustainable Development Goals are turning into a mirage of what might have been, as communities and governments struggle to meet immediate needs. The scars of the COVID-19 pandemic run deep in developing countries that suffered terrible losses in lives and livelihoods. The war in Ukraine is contributing to a global cost of living crisis. Climate disasters are becoming more frequent, deadly, and expensive. One in three countries is at high risk of a fiscal crisis. And more than 40 per cent of people in extreme poverty live in countries afflicted by severe debt problems. These trends are deeply damaging to the poorest people and communities – but not to the richest.
The 2023 Financing for Sustainable Development Report reveals a yawning finance divide that will quickly turn into a development deficit for many countries – and a crisis in global trust and solidarity.
This is the background to my proposal to G20 countries for an SDG Stimulus to scale up affordable long-term financing for all countries in need, by at least 500 billion dollars a year.
We need engagement and support from all corners of the world to renew the international financial architecture and make it able to face the challenges of today and tomorrow.
Funding a better future for all: 5 things to know about the Financing for Development Forum (UN News)
There are so many conflicts, humanitarian disasters, extreme weather events and economic upheavals taking place in the world, that a new word is being used to describe the current state of affairs: the “polycrisis”. The word appeared in 2022, a year that began with tentative hopes that the global economy would begin to recover from the huge disruption of the COVID-19 pandemic, but was soon dominated by the Russian invasion of Ukraine. Amidst all of these competing crises, many countries simply don’t have the resources to invest in recovery, climate action, and sustainable development.
This is the challenging environment in which the 2023 Financing for Development (FfD) Forum is taking place at UN Headquarters, between 17 and 20 April, aimed at pushing forward policies to address global developmental issues, from crippling debt, to under-development, and food insecurity.
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Closing remarks by President Cyril Ramaphosa at the 5th South Africa Investment Conference, Sandton Convention Centre, Johannesburg (The Presidency)
We have come to the end of the 5th South Africa Investment Conference.
We have honoured the undertaking we gave the South African people in 2018 that we would attract new investment to our shores, support the growth of local businesses and create more jobs.
Nor could any of us have imagined the lingering impact on investment, businesses, jobs, and livelihoods, even years after the existential health threat has passed. For us to have been able to meet our five-year target despite major challenges and disruptions, including the pandemic, is no mean feat.
Infrastructure development is one of the key areas of focus to drive economic growth and is the flywheel that drives economic growth.
When we talk about investment in the cause of development, infrastructure is at the center.
President sets R2 trillion investment target (SAnews)
Propelled by the success of the South Africa Investment Conference (SAIC) held annually in the country over the past five years, President Cyril Ramaphosa has set a R2 trillion target for South Africa to achieve over the next five years.
Attended by delegates from varying industries in South Africa and across the world at the Sandton Convention Centre in Johannesburg, the afternoon session of the conference saw investments announced in the digital economy, manufacturing sector and the Special Economic Zones (SEZs). These are expected to pave the way for job creation and economic growth.
SA “conducive for business” (SAnews)
Human Settlements Minister Mmamoloko Kubayi has lauded the functioning judicial system which makes South Africa fertile ground for investment. The Minister was speaking during a panel discussion on Investing in South Africa at the fifth South Africa Investment Conference on Thursday.
“In terms of the story around investing in South Africa, one of the things that I say is we as a society tend to focus on the negative, which we must pay attention to, but there are quite a number of things that make South Africa a good area for investment, which sometimes we don’t talk about.
Kubayi also lauded the tax regime in the country, which provides a sound framework for business to thrive.
Car importers feel heat of new registration policy (Business Daily)
A State requirement for used cars to be assigned registration number plates before clearance and not when selling them has led to a backlog of 6,000 used vehicles at various Container Freight Stations (CFS) in Mombasa.Car Importers Association of Kenya Chairman Peter Otieno says the rule has put importers at a disadvantage as their vehicles take several months before they can be sold in a market where buyers prefer cars with plates.
This, they said, has forced them to sell their cars at lower prices or offer discounts between Sh50,000-Sh200,000 per unit on those that may not be older but were imported earlier, and do not bear latest number plates.
“This system is not fair to our members due to the fact that customers do not buy the motor vehicles but the new number plates therefore the one month or more registered number plates are considered to be old vehicles,” said Mr Otieno in a recent letter to the Kenya Revenue Authority.
Kenya’s external debt balloons by $2.58b on weak shilling (The East African)
Kenya’s external debt has ballooned by a staggering KSh344.4 billion ($2.58 billion), giving dimension to the impact of a weakening shilling whose exchange rate against the greenback has tanked to a historic low of KSh133.55.
The Central Bank of Kenya (CBK) data shows that total external debt as of January stood at $37.63 billion (KSh4.7 trillion), where the mean exchange rate was 124.4 against the dollar.
Most of the Kenya’s foreign loans are owed to multilateral institutions such as the World Bank, the International Monetary Fund (IMF) and African Development Bank (AfDB), with a big chunk of the loans being concessional loans with preferential repayment terms.
With the tightening of the global market, the country has been forced to rely on cheap loans, especially from the World Bank and IMF.
Kenyan economy to overtake Angola as Ethiopia widens lead (Business Daily)
In its latest World Economic Outlook, the IMF says gross domestic product (GDP) of Angola, an oil producer, will shrink during the period allowing Kenya, whose economy is expected to grow by 5.3 percent, to overtake it, and perch itself at the fourth spot behind Ethiopia.
However, Ethiopia, which the IMF had projected in its October 2022 outlook would overtake Kenya to become Eastern Africa’s largest economy, is now expected to overtake both Angola and Kenya to become the third largest economy in sub-Saharan Africa.
This is after the IMF revised its earlier forecast on Ethiopia’s GDP in 2023 from Sh16.9 trillion ($126 billion) to Sh20.9 trillion ($156.1 billion), stretching its newfound lead over Kenya.
Tunisia drought threatens ‘catastrophic’ grain harvest (The East African)
A severe drought in North Africa has left Tunisian farmers bracing for a catastrophically poor harvest, imperilling food security in the cash-strapped country.
At a time when the global cereals market has been disrupted by the Ukraine war, Tunisia’s domestic grain production has also withered under a lack of rainfall that has killed off crops.
Even before the roasting summer months, the soil is dry and dusty in the small Mediterranean country, whose water resources are steadily depleting as climate change intensifies.
FG signs agreement to re-concession Lagos trade fair complex (Premium Times Nigeria)
The Bureau of Public Enterprises (BPE) has signed a tripartite agreement to commence the re-concession of the Lagos International Trade Fair Complex (LITFC). This is contained in a statement signed by BPE’s Head of Public Communications, Amina Tukur, in Abuja on Monday.
Director-General of BPE Alex Okoh said the standardisation of lease agreements would ultimately increase the earnings of the LITFC and the Federal Government in particular.
CAPS, new gas megaproject, aims to power Central Africa, but at what cost, critics ask (Mongabay Environmental News)
More than 60% of people in Central Africa have no access to electricity. An ambitious proposal aims to change that with a network of pipelines, refineries and gas-fired power plants stretching across 11 countries in the region. But critics say the proposed Central African Pipeline System is a mistake.
Nathalie Lum, chairwoman of the Central Africa Business Energy Forum (CABEF), an organization that hosts an annual conference of oil and gas corporations and regional energy ministers, told Mongabay that CAPS will help make the Central Africa region an “energy poverty-free zone” by 2030.
“Access to reliable, affordable energy can help reduce poverty, attract investments, and create jobs, while also providing an important source of revenue for governments.” she said.
Turkey-Egypt trade exchange can rise to $20bln within 10 years: Turkish Charge d’Affaires in Cairo (ZAWYA)
Over the past months, Egyptian-Turkish relations have been thawing at the state level following a decade-long rupture. In the latest round of the recent rapprochement between Türkiye and Egypt, Turkish Minister of Foreign Affairs Mevlüt Çavuşoğlu visited Cairo in March and held bilateral talks with his Egyptian counterpart Sameh Shoukry.
On the economic front, the two countries maintained strong ties despite the frosty diplomatic relations. Türkiye was the largest importer of Egyptian products in 2022 totalling $4bn. Also in February, a delegation of 14 representatives of Turkish companies visited Cairo and met with Egyptian Prime Minister Mostafa Madbouly, to discuss economic cooperation between the two countries.
AfCFTA agreement presents economic opportunities for investors (SAnews)
Investors should seize the economic and business opportunities to establish a commercial presence in South Africa, said Secretary General of the African Continental Free Trade Area (AfCFTA) Secretariat, Wamkele Mene.
Mene was addressing delegates from varying industries in South Africa and across the world at the fifth South Africa Investment Conference (SAIC) on Thursday.
“By 2050, the continent will be home to 2.5 billion people. The largest working force in the world by 2050 will be in Africa. At that point, estimates are that consumer spending and business spending in Africa will be in excess of $16 trillion.
“This is an opportunity that our continent and our investors should not miss. It is of course expected that there will be challenges but I encourage everyone to look at Africa with a long-term view of investing and to see your returns in your investments,” Mene said at the gathering held at the Sandton Convention Centre in Johannesburg.
The implementation of the agreement is also expected to contribute $450 million combined gross domestic product (GDP) to Africa’s GDP and increase wages by close to 9%.
“We project that the most immediate beneficiaries will be small, micro and medium enterprises (SMMEs) that are led by women, this is why this agreement is so important for the future of our continent,” he said.
“The long station ambition of the African Union (AU) is that one day our continent must be a common one. That is why we recently concluded protocols on investment protection with some ratifications to be done on international property rights and competition, which are so critical for the economic integration in Africa,” Mene said.
South Africa to Host African Critical Minerals Summit in 2023 (Energy Capital & Power)
The first ever African Critical Minerals Summit will take place on November 6-7, 2023, in Johannesburg, hosted by South Africa’s Department of Mineral Resources and Energy. H.E. President Cyril Ramaphosa will open the global gathering with over 2,000 delegates expected to participate. South Africa’s government will welcome delegations from around the world – including the United States, European Union, United Kingdom, BRICS and G20 countries.
The Africa Fertilizer Financing Mechanism’s (AFFM) Governing Council committed to to mobilize funds to implement the AFFM’s Strategic Plan 2022 - 2028 to support the increased availability and appropriate use of fertilizer on the continent.
The AFFM strategic plan 2022-2028 prioritizes broadening access to finance through capital investments and policy reforms. Technical assistance will also be provided to boost smallholder farmers’ access and appropriate fertilizer use.
Through the end of 2022, trade credit guarantees totaling $8.8 million provided 5.3 times leverage, enabling the provision of 112,268 tonnes of fertilizer to 690,896 smallholder farmers in the four countries. Under these projects, 97 small and medium enterprises gained access to finance, and 138 companies, including fertilizer suppliers, hub-agro dealers and aggregators, and 20,987 smallholder farmers, benefited from capacity building
To scale up its trade credit guarantee investments, the AFFM has developed a pipeline of projects for implementation in 2023. These will be rolled out in Mozambique, Zimbabwe, Uganda, Kenya and Tanzania.
Sub-Saharan African, South African growth to moderate in 2023 (Engineering News)
The gross domestic product (GDP) growth of countries in sub-Saharan Africa is expected to moderate throughout 2023, with the regional average falling to 3.5%, from 3.6% in 2022 and below the 2010 to 2019 average of 4.1%, credit risk and strategy decisions research company Fitch Solutions Country Risk and Industry Research country risk head Jane Morley said on April 13.
This is owing to global headwinds, including tightening financial conditions, lower commodity prices and the lagging impact of higher inflation following Russia’s invasion of Ukraine, while further tightening of global financial conditions will dampen economic activity in many sub-Saharan African markets, she noted.
Strengthening resilience in food security: Africa’s option to end malnutrition (Vanguard)
Africa, rich in human and natural resources has no business being poor or hungry, but large-scale development challenges have taken a toll on citizens, making them very vulnerable and unable to self-actualize.
From Morocco in the North, Zimbabwe in the South, Somalia in the East, Nigeria in the West to the Central African Republic (C.A.R) in Central Africa, citizens suffer the common fate of over-population, leadership deficits, inadequate plan implementation, wars, climate change, pestilence, deprivation, poverty, food scarcity, malnutrition and other factors, which threaten the prosperity of the continent.
To mitigate this challenge, the African Union, the continental body with the mandate to ensure prosperity, peace and unity across the continent, has devised means to address the menace, using Agenda 2063 which is the continental framework for transforming Africa into the global powerhouse of the future. It has other programmes like the African Continental Free Trade Area (AfCFTA) to boost intra-African agricultural trade and the Comprehensive Africa Agriculture Development Programme (CAADP).
African enterprises set to expand business engagements through continental trade agreement (UNECA)
40 women and youth-owned businesses attend a three-day masterclass series organized by ITC, AfCFTA Secretariat, ECA, OWIT and CLDP through AWYEG ahead of the AfCFTA Business Forum. The masterclass aims to equip these African entrepreneurs with the skills, information and networks needed to expand their business prospects across Africa by using the AfCFTA.
“Access to investment and trade finance is a critical lever for empowering women- and youth-led businesses to seize new opportunities in exports, business, and regional value chains created through the AfCFTA. ECA’s session on Investment Readiness Under the AfCFTA is, therefore, focused on enhancing the capacity of women- and youth-led businesses in designing compelling business cases for investment. This will enable them to scale and meet the standards of the African market, while also creating business linkages that facilitate their participation in continental supply and value chains,” said Mie Joergensen, Junior Professional Officer, ECA.
Afreximbank to hold 30th Annual Meetings in Accra, Ghana, from 18-21 June 2023 (Afreximbank)
The 30th Annual Meetings of African Export-Import Bank (Afreximbank) will take place in Accra, Ghana, from 18 to 21 June 2023. The event will mark the high point of the Bank’s year-long 30th anniversary celebrations, under the theme “Delivering the Vision. Building Prosperity for Africans”. The 30th Afreximbank Annual Meetings and 30th Anniversary celebrations will bring together on one platform thousands of people, including African and Caribbean leaders and senior government officials, African, Caribbean and other policymakers, corporate leaders, bankers, academia and other thought leaders. The meetings will include the Annual General Meeting of Shareholders and an extensive seminar programme, featuring plenaries and side events.
Econews Africa wants Kenya, USA trade deal halted for lack of consultations (Capital Business)
The not-for-profit organization Econews Africa (ENA) now wants trade negotiation between the Kenyan and American governments stopped to allow stakeholders to engage. ENA says that talks under the Strategic Trade and Investment Partnership (STIP) cannot go on until pertinent issues are addressed. STIP will act as the precursor to the African Growth and Opportunity Act (AGOA), whose expiration date is set for 2025.
While American stakeholders have submitted their views to the United States Trade Representative (USTR) for consideration, the country has yet to conduct one.
“We note with concern that American stakeholders have given extensive comments to the USTR, while the Kenyan negotiators have yet to make any attempt to consult widely before embarking on the negotiations.”
“There needs to be a comprehensive assessment of the effect of agricultural trade liberalization,” Odari stated.
The global economy is at another highly uncertain moment: tentative signs of stabilization earlier this year have receded, and the outlook is increasingly risky and uncertain. At the same time, divisions within and across countries are deepening, exacerbated by rising fragmentation. Strong policy action is needed together with pragmatic approaches to find areas of common ground to respond to shared challenges. The IMF is proactively engaging with our members to chart a clear course to a stronger and more sustainable path for the global economy.
Africa’s COP27 climate change funding target met by 64% as AFDB announces $2.4 billion mobilized (Garowe Online)
In 2022 during the COP27 summit, the African continent set a target of $1.4 billion for the initiative to build the resilience of vulnerable systems and promote sustainable development in the country. However, the target now has been surpassed by 64 percent according to the African Development Bank (AfDB).
AFDB has revealed that they have surpassed its mobilization target for The Just Green Transition (JGT) initiative after raising $2.3 billion which will be invested in tackling climate change-related challenges in Egypt.
Global Food Crisis Update: Recent Developments, Outlook, and IMF Engagement (IMF)
The global food crisis remains a major challenge. Food insecurity fueled by widely experienced increases in the cost of living has become a growing concern especially in low-income countries, even if price pressures on global food markets have softened somewhat since the onset of Russia’s war in Ukraine in February 2022. Targeted assistance to the most vulnerable households combined with policy measures to support trade and agriculture systems, including to better cope with climate shocks, can help countries withstand the fallout of the ongoing food crisis while building longer-term resilience. The IMF, working in close cooperation with other international organizations, has continued to contribute to international efforts to alleviate food insecurity by providing policy advice, capacity development, and financial support through Upper Credit Tranche Arrangements and the new Food Shock Window. New commitments to countries particularly affected by the global food crisis total $13.2 billion since February 2022, of which $3.7 billion has been disbursed as of March 2023.
Tackling gender inequalities in agrifood systems and empowering women reduces hunger, boosts the economy, and reinforces resilience to shocks like climate change and the COVID-19 pandemic, reveals a new report by the Food and Agriculture Organization of the United Nations (FAO).
The status of women in agrifood systems report, the first of its kind since 2010, goes beyond agriculture to provide a comprehensive picture of the status of women working across agrifood systems— from production to distribution and consumption.
The report highlights that globally, 36 per cent of working women are employed in agrifood systems, along with 38 per cent of working men. However, women’s roles tend to be marginalized and their working conditions are likely to be worse than men’s –irregular, informal, part-time, low-skilled, or labour-intensive.
“If we tackle the gender inequalities endemic in agrifood systems and empower women, the world will take a leap forward in addressing the goals of ending poverty and creating a world free from hunger”, says FAO Director-General QU Dongyu in the foreword of the report.
Indeed, the study explains that closing the gender gap in farm productivity and the wage gap in agricultural employment would increase global gross domestic product by nearly $1 trillion and reduce the number of food-insecure people by 45 million.
New report calls for G20 coordination to address causes of food insecurity (WTO)
The report, titled “Rising Global Food Insecurity: Assessing Policy Responses”, was produced at the request of G20 leaders in their G20 Bali Declaration of November 2022, where they asked the FAO and WBG to undertake a mapping exercise on the global response to rising food insecurity, identify any gaps in this response, and recommend further actions to eradicate hunger.
DDG Paugam: Ensuring safe agriculture trade crucial for a sustainable future (WTO)
“Global partnerships like STDF are crucial to help farmers, producers, traders and governments in developing countries address some of the main challenges the world is facing today,” said DDG Paugam. “Around us, we are still grappling with the impacts of the COVID-19 pandemic on our lives and our economies. Climate change is on the rise and has a clear impact on the occurrence of new pests and diseases, and on food safety.”
Brazil’s Lula calls for end to dollar trade dominance (Financial Times)
Brazil’s president Luiz Inácio Lula da Silva has called on developing countries to work towards replacing the US dollar with their own currencies in international trade, lending his voice to Beijing’s efforts to end the greenback’s dominance of global commerce. Kicking off his first state visit to China since taking office in January, Lula called for the countries of the so-called Brics group of nations — which in addition to Brazil and China includes Russia, India and South Africa — to come up with their own alternative currency for use in trade.
Development Committee: The Managing Director’s Written Statement April 2023 (IMF)
Tentative signs of stabilization of the global economy have receded with recent financial sector turmoil. Headline inflation is moderating on the back of retreating commodity prices, but sticky underlying price pressures are complicating disinflation efforts. While growth in low-income developing countries (LIDCs) has been higher than in the rest of the world, its level is insufficient to address momentous challenges that range from combatting poverty to coping with climate change. Moreover, elevated debt levels and higher borrowing costs due to tighter global financial conditions leave policymakers with little fiscal space. Containing inflation, safeguarding financial stability, and protecting the vulnerable remain immediate policy priorities. At the same time, countries need to preserve or—in some cases—restore debt sustainability, which often requires better targeting of fiscally costly support measures taken in response to the COVID and commodity price shocks. Multilateral cooperation is more important than ever as many challenges are global, but it is acutely under threat from fragmentation.
Guterres urges greater funding for countries in need (UN)
In a recent signed article, United Nations Secretary-General Antonio Guterres called on the G20 to approve an “SDG Stimulus” to scale up affordable long-term financing for countries in need by at least $500 billion a year.
“Sixty percent of low-income countries are currently at high risk of or in debt distress – double the number in 2015. Since 2020, African countries have spent more on debt service payments than on healthcare,” he noted.
The SDG Stimulus plan, by supporting the UN’s Sustainable Development Goals, “aims to boost long term investments in sustainable development, particularly where transformation is most urgent: renewable energy, sustainable food systems, and the digital revolution,” he said.
“Developing countries need financing and technology to go through these transitions with minimal social disruptions,” he added.
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President Ramaphosa meets business leaders ahead of Investment Conference (SAnews)
President Cyril Ramaphosa has met with business leaders from key sectors of the economy ahead of Thursday’s South African Investment Conference (SAIC). At a media briefing on Wednesday on the President’s upcoming engagements, Presidential spokesperson Vincent Magwenya said economic interventions, economic growth and job creation were the issues discussed at the meeting.
“The President has agreed with business that there is a need for acceleration towards the resolution of challenges impacting key economic enablers, namely energy, transport and logistics, and crime and corruption.
“On the eve of the fifth South African Investment Conference, President Ramaphosa is highly enthused by the collaborative spirit that continues to guide engagements between government and business and more importantly, the commitment shown by business to take collective responsibility in resolving some of the challenges that are facing our country and the economy,” said Magwenya.
SA must avoid agro trade fallout with neighbours (CAJ News Africa)
South Africa’s agricultural export expansion drive to Asia should not be at the expense of existing markets, mostly the Southern African Development Community (SADC) regional bloc. In addition, the country must ensure cordial trade relations with fellow African nations in this drive to broaden its export base. This is the view of locally-based agricultural expert, Wandile Sihlobo.
Sihlobo, chief economist at the Agricultural Business Chamber (Agbiz), maintained South Africa should expand its markets to Bangladesh, China, India, Saudi Arabia and South Korea but existing markets should not be disregarded.
“We should actively engage with existing markets to promote further growth of exports of South African agricultural products,” the economist stated.
Flour price to remain high as State fails to get cheap maize (Business Daily)
Kenyans will continue waiting for cheaper flour after it emerged that the government’s search for cheap maize was facing headwinds on limited supply of the grain on the international market. The Ministry of Agriculture has opened negotiations with traders aimed at reviewing the Sh4,200 per 90-kilo bag that the government had issued to maize importers as the landing price under a duty waiver.
Agriculture Principal Secretary Harsame Kello says it has become difficult for traders to find cheap maize owing to a tight competition with other African countries such as South Sudan, which is offering higher prices.
“Importers failed to match the price that the market is demanding out there because of a scarcity in the world market, we are now negotiating on a new price with the traders,” said Mr Kello.
The requirement to commit on landing price saw millers opt out of imports citing that it would be difficult to get maize at that price, given the shortage of non-genetically modified maize and a weakening shilling.
CS Kuria Lifts Ban on Exportation of Raw Macadamia (Capital News)
Trade and Investment Cabinet Secretary Moses Kuria has lifted the ban on the exportation of raw macadamia nuts for a period of one year in a bid to open up the global markets. Speaking in Kirinyaga, Kuria said that the current prices of Macadamia nuts had gone as low as Sh20 shillings per kilogram which he termed exploitative to farmers who toiled the land only for middlemen to reap the profits.
Kuria said that the lifting of the ban on the exportation of raw nuts will open up marketing outlets and attract across the world to allow competitiveness so that farmers can sell to the highest bidders.
Budget misalignment expected to hurt high-impact sectors – IPF (Capital Business)
Kenya’s economy is headed for a tougher run due to a growing burden of debt servicing, the government’s inability to implement austerity measures, and a worsening global economic slowdown. This is according to projections by the Institute of Public Finance (IPF), which noted that the government’s decision to reduce budget allocations to high-impact sectors like Agriculture and Social Protection that have the potential to support inclusive growth.
Speaking during the launch of the Financial Year 2023/2024 Annual National Shadow Budget, IPF CEO, James Muraguri pointed out that it is concerning that the budgetary allocation to the priority regions does not meet the government’s pledges.
“There seems to be a significant misalignment or less prioritization of critical sectors of high impact. The agriculture sector, which employs more than 40 percent of the total population and 70 percent of the rural population, does not seem to receive the attention that it deserves. This has a net effect of leading to food insecurity where it is estimated that by June 2023, 5.4 million Kenyans are projected to face elevated levels of acute food insecurity,” said Muraguri.
Egypt, South Korea to sign deal by April-end to facilitate trade movement (ZAWYA)
Minister of Finance Mohamed Maait has said that Egypt has become more attractive to foreign investments with its promising and attractive opportunities, advanced infrastructure capable of meeting all the needs of investment and production activities, a legislative environment, tax and customs incentives, and the incentive efforts taken by the government to empower the private sector, including the state ownership policy document and the golden licence.
He added that a memorandum of understanding (MoU) will be signed between the Egyptian and South Korean customs authorities at the end of this month to enhance customs cooperation and facilitate trade movement.
Maait affirmed, during his meeting with the South Korean ambassador in Cairo today, Egypt’s aspiration to increase the investments of Korean companies, in a way that contributes to maximizing Egyptian production and export capabilities, and strengthening the partnership between the two countries, as the investments of Korean companies are a leading model in the electronics industry in the Egyptian market, and play a pivotal role in deepening the national industry, increasing the proportions of the technological component in the industry, and providing new job opportunities.
Prolonged border closure hurting revenue generation at Seme border — Customs (Vanguard)
The Nigerian Customs Service, NCS Seme Area Command has lamented the severe impact of prolonged border closure on revenue generation at the Seme border.
Customs Area Controller Seme Command, Comptroller Dera Nnadi, gave the figures during a media briefing of the First Quarter, Q1 performance of the Command and the handing over of fake $6 million to the Economic and Financial Crime Commission, EFCC as well as handing over of other seized items to partner government agencies at Seme, Badagry.
He said: “The major source of revenue of the Command (import/export) have not been enhanced since the opening of the land Borders as directed by the Federal Government of Nigeria as the traders are still bracing with the challenges of having been out of business for over two years.”
‘Incoming govt must deepen reforms on economic, export diversification’ (The Nation)
Civil Society Legislative Advocacy Centre/ Transparency International Nigeria (CISLAC/TI-Nigeria) has urged the incoming government to deepen economic and export diversification, focus on production, improve business climate and macroeconomic stability. The organisation reiterated the need to strengthen ease of doing business and block leakages for corruption.
Executive Director, Ibrahim Musa (Rafsanjani), spoke yesterday at an interactive session in the spring meeting of World Bank and International Monetary Fund (IMF) in Washington DC, United States.
Rafsanjani, in a statement, noted the incoming government should sustain policies with potential of driving growth and development. Deliberate efforts, he said, must be made to avert placement of priorities, reverse policies, sustain and implement new ones.
Nigeria’s debt to World Bank grows to nearly $14b (TheNiche)
Nigeria’s debt to the World Bank alone jumped to $13.9 billion in December 2022, an increase of $1.5 billion from 2021 – apart from the latest $800 million loan granted by the bank to cushion the effects of anticipated fuel subsidy removal.
Reliance on the World Bank by Nigeria has increased in the past three years, particularly after the Covid-19 lockdown.
Total debt owed the World Bank was $10.1 billion in 2019, which rose to $12.5 billion in 2020. Between 2019 and 2022, Nigeria’s debt to the World Bank increased by $3.8 billion.
Nigeria probes sale to China of stolen 48m barrels of crude oil (The East African)
Nigerian lawmakers have begun a probe into the sale of stolen 48 million barrels of crude oil to China.
“It is quite alarming that illegal deals with China cost Nigeria $2.4 billion revenue loss from the sale of stolen 48 million barrels,” Nigeria’s Speaker of the House of Representatives Femi Gbajabiamila said in Abuja on Tuesday, at the opening of the ad hoc committee set up to probe the deals.
He said Nigeria loses $700 million monthly to oil theft, a menace that impacts negatively on the country’s national budget.
He noted that the oil and gas sector remained the main contributors of Nigeria’s economy as it accounted for its 95 percent of foreign exchange earnings and 80 percent of annual budgeted revenue.
ECOWAS to fast-track regional ID card project to boost financial inclusion, integration (Biometric Update)
The World Bank-supported West Africa Unique Identification for Regional Integration and Inclusion (WURI) programme is set to enjoy new impetus after members of the steering committee met in Nigeria’s commercial capital Lagos last week to okay the overall program development objectives.
Already, the first phase of the $395 million project, which is meant to provide unique proof of identity for easy access to public services, has been piloted by Cote d’Ivoire and Guinea and is in the process of being implemented by Benin, Burkina Faso, Niger and Togo, according to the ECOWAS Commission, which is spearheading the project.
The project, which is in two phases, will be expanded by all the other member states of ECOWAS as a way of providing legal and acceptable identity for all citizens of the regional economic and political bloc, writes Premium Times. About 196 million people within ECOWAS are said not to have any form of legal identity, despite the high level of regional mobility within the bloc.
Kenya only economy in East Africa with an upward economic growth review (Business Daily)
Kenya is the only economy in East Africa whose projected economic growth for 2023 has been revised upwards by the International Monetary Fund (IMF) in its latest review, giving Nairobi a major confidence boost as it fights an economic crisis.
In the just-released World Economic Outlook, IMF now projects that Kenya will grow at a rate of 5.3 percent in 2023 from 5.1 percent forecasted in October 2022.The IMF has revised projections for Rwanda, Uganda, Burundi and the Democratic Republic of Congo (DRC) downwards.
This upward revision of projected growth implies that Kenya is poised to generate Sh25.5 billion more in economic output in 2023 than had been earlier projected by the IMF. The fund also expects Kenya’s economy to grow faster than had been earlier projected with the fund projecting moderate acceleration in the economy’s growth momentum to 5.4 percent in 2024.
The circular economy: A critical player in unlocking African economic growth and prosperity (Engineering News)
Africa is on a trajectory of explosive population growth with immense economic, environmental and social challenges if we continue business as usual.
By the late 2060s, sub-Saharan Africa will be the most populous of the eight geographic regions, ballooning to 3.44 billion inhabitants by the end of the century. Ever-depleting resources will risk biodiversity collapse and entrench the continent in an increasingly desperate situation of poverty, with sub-Saharan Africa projected to have 86 percent of the world’s extreme poor by 2050.
To lift people out of the poverty cycle we need locally-driven economies that promote economic growth, generate wealth and create those 7.3 million jobs per year. If this growth is driven with the current waste creating linear business model, this would generate a massive ecological footprint. The negative effects of which could wipe out the benefits of those gains.
Circular business models design out waste, keeping products in use for longer and re-using raw materials to eliminate waste, water, energy, materials and pollutants at source, and reduce total waste to landfill. They create the competitive advantage of a more efficient business model, present opportunities for bottom-up innovation, stem the onslaught of biodiversity loss and address climate change.
Piling debt in Africa to feature in IMF, World Bank meeting in US (The East African)
IMF and World Bank chiefs may be meeting thousands of kilometres from Africa, but the upcoming annual gathering in Washington is eliciting new calls to have piling debt addressed.
The two global lenders are key in funding budgetary deficits in most of East Africa. But this year’s annual meetings often known as Spring Meetings in Washington DC, are also coming amid the clamour for climate change funding and a need for cushioning efforts for the poor.
Across East Africa, economists are already warning that the growing debt levels could push regional economies into financial distress.
“It is alarming, as past funding trends show, that the bulk of climate finance is channelled through loans, further increasing already high debt levels,” said Prof James Gathii of Afronomicslaw.org.
“Without adequate interventions on the loss and damage as well as adaptation fronts, African countries are likely to borrow approximately $1 trillion over the decade for their climate response,” Gathii said.
Africa needs to bridge infrastructural gaps, provide political stability to drive growth - Aidoo (Businessday Nigeria)
Joseph Aidoo Jr, executive director at Devtraco Group in Ghana has implored African governments to improve infrastructure, promote political stability, and enhance the business environment to drive growth and realise the continent’s full potential.
“Embracing technology, nurturing entrepreneurship, and promoting investment in critical infrastructure can create a business-friendly environment that supports sustainable economic growth and development across the continent,” he said.
He emphasised that addressing critical challenges, such as poor infrastructure, political stability, and poor business environment, will do Africa well. Nevertheless, he expressed his optimism about the future of Africa, citing significant progress in economic growth, infrastructure development, and technological advancements across the continent in recent years.
Will France be able to continue exporting its wheat to Africa? (Africanews)
Will France still be able to export cereals to Africa on April 25? The government wants to be reassuring, while producers and traders fear that they will no longer be able to use an insecticide (phosphine) in direct contact with the grains, which would close the door to their historical customers.
“There is nothing to worry about for our exports,” French Foreign Trade Minister Olivier Becht said on Tuesday, while his Agriculture counterpart, Marc Fesneau, underlined the major role that France would continue. to stand for global “food security”.
The government was questioned by several deputies on the consequences of a decision by the French Health Security Agency (Anses), dating from October 2022, which does not authorize, from April 25, the use of PH3 insecticide (or phosphine ) in the fumigation of the holds of ships only on condition that it is not “in direct contact with cereals”.
“If no decision is taken, on April 25, we will no longer be able to export to countries such as Togo, Cameroon, Algeria, or Egypt, which require in their specifications fumigation in direct contact with grains,” Eric Thirouin, president of the Association of French Grain Producers (AGPB), told AFP.
IMF review seeks better central bank governance (Business Daily)
The International Monetary Fund (IMF) has reviewed the governance policies of central banks around the world to minimise risks of misuse of loans and default on payments.
The Washington DC headquartered institution recently published a safeguards assessment policy report following the review by an external expert panel that was chaired by Central Bank of Kenya (CBK) chairperson Mohammed Nyaoga.
The Nyaoga team made several key recommendations to the IMF that have been adopted, marking another milestone in tightening the operations of central banks.
G7 to discuss digital currency standards, crypto regulation (Reuters)
Group of Seven (G7) advanced economies will consider how best to help developing countries introduce central bank digital currencies (CBDC) consistent with appropriate international standards, Japan’s top currency diplomat Masato Kanda said on Tuesday. The move will be among key themes of G7 discussions that Japan chairs this year, as part of efforts to address challenges the global community face from fast-moving digital technology, he said.
“As a priority of this year, the G7 will consider how best to help developing countries introduce CBDC consistent with appropriate standards, including the G7 public policy principle for retail CBDC,” he said.
UNCTAD in its latest Trade and Development Report Update released on 12 April warns that developing countries are facing years of difficulty as the global economy slows down amid heightened financial turbulence.
Annual growth across large parts of the global economy will fall below the performance registered before the pandemic and well below the decade of strong growth before the global financial crisis.
The UN trade and development body estimates that interest rates hikes will cost developing countries more than $800 billion in foregone income over the coming years. UNCTAD expects global growth in 2023 to drop to 2.1%, compared to the 2.2% projected in September 2022, assuming the financial fallout from higher interest rates is contained to the bank runs and bailouts of the first quarter.
Trade and Development Chart: The Rise of China (World Bank Blog)
Since China entered the World Trade Organization on December 11, 2001, it has become the most important trading partner to the world. This chart shows the number of countries for which either China or the United States is the top trading partner in merchandise goods. China gained prominence in sub-Saharan Africa, while the US remains the most important partner for Latin America and the Caribbean.
United States formally accepts Agreement on Fisheries Subsidies (WTO)
DG Okonjo-Iweala said: “I am delighted and grateful to receive the United States’ formal acceptance of the WTO’s Agreement on Fisheries Subsidies. This strong show of support by the United States for the WTO’s work toward ocean sustainability marks a pivotal increase in momentum among the membership to ensure this landmark agreement enters into force. US leadership is vital to the WTO and to multilateralism. I look forward to continuing to work with the United States to ensure that the WTO responds to the needs of people and the planet.”
United States Trade Representative Katherine Tai said: “The United States has been a leader in protecting our shared environment from harmful and unsustainable practices, including our oceans and marine resources — and those whose livelihoods depend on them.”
“We are proud to be among the first WTO members to accept this agreement, which is the first ever multilateral trade agreement with environmental sustainability at its core. It will help improve the lives of fishers and workers here in the United States and elsewhere”.
Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development: Communiqué (IMF)
Extract: Rising trade protectionism amid economic uncertainties and slow progress in global trading system reforms are key concerns. Global trade is important for sustainable inclusive growth and poverty reduction, but many EMDEs experience unequal distribution of the benefits of trade, limited market access and unfair trade practices, especially the agriculture sector, which is often the main source of livelihood for the poor. Some recent policies meant to resuscitate domestic production or meet net-zero targets have the potential to increase the relative costs of some tradable commodities, which deviates from the principle of comparative advantage, distorts trade and investment decisions and further affects developing countries. We call on the IMF and WBG to analyze the costs and benefits of free trade and globalization, including the threats to economic security during crisis such as the pandemic when concentration risks and supply chain risks upended the global markets. We urge World Trade Organization support in the design of a robust multilateral trade system, so that agreement on basic principles, including on nontariff barriers and services could be reached at the multilateral level. In this regard, we welcome the IMF review of the Role of Trade to help guide policy advice on increasing supply-chain resilience while avoiding distortive protectionist measures. We urge that measures taken to combat climate change should not constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on international trade.
Climate change is one of the most critical macroeconomic and financial policy challenges that IMF members face in coming decades. Capital is among the most important enablers of climate action, but not enough is getting to the people and places that need it most.
As massive global investments to reduce emissions and boost resilience are required—we need a major shift to harness public and, especially, private financing. That includes substantially more concessional finance that can lower risk and drive private sector finance more efficiently to emerging and developing countries. It also requires that both the public and private sectors finance all components of the energy transition, including both the scaling of clean energy and the managed phaseout of fossil fuels on an accelerated time frame.
To achieve this objective, all countries need robust climate policies that accelerate the green transition, and stronger mechanisms to promote cooperation and risk-sharing among stakeholders.
ICYMI: World Bank Group President David Malpass: Spring Meetings 2023 Positioning Speech (World Bank)
“Developing countries have suffered the most from this onslaught of crises. The [COVID-19] pandemic increased the global extreme poverty rate from 8.4 to 9.3 percent, the first recorded increase since we started keeping count…. Now, a growing number of developing countries are facing the prospect of major domestic crises, with economic growth slowing, poverty and hunger on the rise, public debts reaching unsustainable levels amid rising interest rates, ineffective mechanisms for resolving external debt distress, underinvestment, and growing populations.”
“Confronted by these developments, we have the responsibility to forcefully reassert core economic principles for development in every country. I will highlight four:
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First, achieving macroeconomic stability is critical – not least because fiscal recklessness compromises essential services and inflation penalizes the poor the most.
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Second, sound policies to promote private investment should always remain a top priority – because without them there would be no economic growth.
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Third, free and fair international trade must be nurtured – because it promotes efficiency and creates enormous opportunities for growth and convergence.
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Finally, the international community’s mechanisms to finance the provision of global public goods must be strengthened – because climate costs, conflict, and pandemics will set back human progress everywhere unless the effectiveness of global efforts improve.”
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Empowering Farmers: Enhancing Zambia’s Horticultural Exports (Trade for Development News)
Zambia’s horticultural sector has faced significant challenges in recent years, making it difficult for local farmers to export their produce to the global food market. From time-consuming border processing to inadequate resources and legislation, the sector has been facing a myriad of obstacles that have hindered its growth and competitiveness.
Farming is a demanding sector, particularly for those seeking to compete in the global market. Many farmers in Zambia are unable to meet international standards and other requirements in importing countries that can help them implement good agricultural practices and stand out on the world stage. However, despite the challenges, there are some beacons of success.
SA eyes investment commitments at the 5th SAIC (SAnews)
President Cyril Ramaphosa will address the South Africa Investment Conference (SAIC) on Thursday. The SAIC will be attended by delegates from varying industries in South Africa and across the world at the Sandton Convention Centre in Johannesburg.
In its 5th year since inception, President Ramaphosa convened the South Africa Investment Conference with an objective of achieving R1.2 trillion in investments targets. Investors heeding the call have over the last four conferences declared R1.14 trillion in investment commitments.
The Presidency said the new investments also significantly contribute to South Africa’s national goals of socio-economic development to create sustainable jobs, reduce poverty and drive back inequality. These investments have also contributed to a substantial increase in local production and encouraged efforts to buy local.
Govt communication must improve if more investment is to be garnered – BLSA (Engineering News)
Of all the factors impacting on investor confidence in the country, Business Leadership South Africa (BLSA) CEO Busi Mavuso says government’s communication to the market is one that requires extensive work.
She cites in her latest weekly newsletter the example of the debacle around the exemption given, and then withdrawn, to State-owned power utility Eskom to allow it to not report fruitless and wasteful expenditure in its yearly financial statements.
Foreign Trade: Nigeria’s outbound cargo volume remains weak (Vanguard)
Nigeria’s hope of witnessing export-driven economic growth through air cargo remains a far cry, as the sector’s share of total trade volume appears abysmal. This is coming against the backdrop of the country’s inability to facilitate more export by air despite the availability of goods in the country.
For instance, Nigeria was only able to process goods for exports valued at N34 billion in the fourth quarter of 2022, Q4’22, an increase of nine per cent when compared to N31 billion recorded in Q3’22.
According to the National Bureau of Statistics, NBS, Foreign Trade in Goods Statistic for Q4’22, the country also witnessed a significant decline of 11 per cent in inbound cargo at N245 billion recorded in Q4’22 from N271 billion in Q3’22.
Nigeria Caught In Anti-export Bias – Trade DG (Leadership)
Director-general of the Nigerian Office for Trade Negotiation (NOTN), Yonov Agah, has expressed concern over Nigeria’s disadvantaged position in foreign trade, saying the largest African economy is held up in anti-trade bias engineered by bad government policies.
Agah who is Nigeria’s chief trade negotiator said there is need for national conversations on how the nation can get rid of the anti-export challenges.
When government policies are not government oriented, they create rents. And businesses like rents because it’s cheap money.”
Kenya-China trade gap grows despite diplomatic charm (Business Daily)
The Trade deficit between Kenya and China has widened for the second year in a row despite aggressive efforts by Nairobi to push Beijing to open up its markets in refreshed export strategy in 2018.
Official trade statistics show the deficit — the difference between exports and imports — grew to the highest levels since 2017 before Kenya made China the top target destination under Integrated National Exports Development and Promotion Strategy in July 2018.
The deficit rose to $3.62 billion (Sh485.08 billion under the prevailing exchange rate) in 2022 from $3.51 billion (Sh470.34 billion) in the prior year, according to data collated by the Central Bank of Kenya. That was the highest goods trade deficit between the pair since $3.68 billion in 2017, the data says.
New port can boost Senegal economy, but connections must improve (The Loadstar)
The new port of Ndayane may be DP World’s “largest” investment in Africa, but any hope of it helping unlock the continent’s economies depends on increasing intra-regional connectivity.
Construction of the £1.2bn deepwater port has recommenced after a year-long delay, after president Macky Sall said securing the government’s share of the financing had been resolved. Now there are surging expectations of what the port will do for Senegal’s economy, at least.
“The port of Ndayane and the associated economic zone will reinforce Senegal’s position as a major trade hub and gateway in West Africa,” a DP World spokesperson told The Loadstar.
Textiles in tough times as EAC proposes top taxes (Business Daily)
Kenya’s textile industry will be hit hard following a proposal by the East African Sectoral Council on trade to move tax paid on imported apparel to the highest band in order to spur local production.
The council, which is an apex organ for investment and trade in the region, wants the duty levied on textiles under the Common External Tariff (CET) to be moved to 35 percent –the highest tax band under the EAC.
The council says the move is aimed at promoting production of cotton within the region and cutting overreliance on imports, which has hindered development of the sector in the regional.
Revised East African single currency schedule upsets lawmakers (The Citizen)
Members of the East African Legislative Assembly (Eala) have criticised revised dates for the single currency economy in the region. They said frequent changes in time lines and delays were not only counterproductive but had also put the commitment of some regional leaders in question.
Abdullah Hasnu Makame, an MP from Tanzania, wondered why dates for attaining full monetary union kept on changing without justifiable reasons.
“That the monetary union would be up and running by 2024... Then the Council (of Ministers) came and said we are going to extend the delivery time,” he told the just-ended House sitting in Bujumbura.
The East African Community (EAC) Monetary Union Protocol, which was signed on November 30, 2013, aims to converge the currencies of the partner states into a single currency. The convergence of the currencies of all seven EAC partner states into a single currency was to take 10 years, which means the regional bloc was to have a common currency by 2024. In the run-up to achieving a single currency, the member countries have to harmonise their monetary and fiscal policies, as well as their financial, payment, and settlement systems.
East Africa’s cross-border electric trains set to speed up intra-African trade (The Independent Uganda)
Tanzania and Burundi have floated a tender for designing and constructing an electrified railway that will initially connect the two countries and pass through the Democratic Republic of Congo (DRC), as the countries look to tap AfCFTA, the world’s largest single market, and create the continent’s second multinational electrified railway.
About 282 Kilometer of an electrified Standard Gauge Railway (SGR) line will be built from Uvinza in Tanzania (off the Tabora – Kigoma SGR line), across the international border along Malagarasi river to Musongati and onwards to Gitega, both in Burundi.
“The two Governments of Tanzania and Burundi have entered into a bilateral agreement to implement this multinational project as a single project within Tanzania and Burundi territories,” according to the tender document. The project will be implemented for a period of five years.
Upon completion, it is set to become Africa’s second cross-border electrified rail after Ethiopia and Djibouti launched the continent’s first fully electric multinational railway line, in 2016.
The Board of Directors of the African Development Fund has approved $8 million in funding toward the establishment of a digitally interoperable unique bank identification system and harmonised customer identification framework for The Gambia, Guinea, Liberia and Sierra Leone.
Implementation of the project will commence in July 2023, led by the West African Monetary Institute (WAMI), working with central banks of the participating countries and in close collaboration with banking and non-banking financial service providers.
The project is expected to enhance financial sector efficiency within the participating countries, leading to increased access to finance and further regional integration efforts. Approval of funding from the Bank’s concessional lending window was made on 29th March. The new bank identification system will link banking accounts of individuals across different financial service providers.
AfCFTA: Tackling Counterfeits Substandard Products Through PAM (Leadership News)
Experts said the questions begging for answers are how much of this projected sum of $3.4 trillion will be accrued to the country? How will much of an impact will this pact have on Nigerian businesses? Needless to state that the country’s over 200 million population is a huge market that is very vital to the success of the trade agreement.
Based on a recent survey of 1,804 Nigerian manufacturing enterprises, six out of 10 businesses expect the AfCFTA to lead to a reduction in material and labour costs, increase production capacity, expand the market and consumer size, and reduce prices.
Overall, Nigeria’s small and medium-sized businesses are optimistic about the opportunities created by AfCFTA, although with mixed feelings grounded in concerns about rising foreign competition and dumping of substandard goods.
The Manufacturers Association of Nigeria (MAN) also re-echoed the same concern. It reemphasised that dumping is a huge challenge that may hinder manufacturers, even as it stressed the need to ensure that all participating countries obey the Rule of Origin policy that is expected to govern the trade.
Pan-African Private Sector Trade and Investment Committee (PAFTRAC) Survey looks to assess the impact of external shocks on Africa’s private sector (The Guardian Nigeria | APO)
The Pan-African Private Sector Trade and Investment Committee (PAFTRAC) Africa CEO Trade Survey has officially launched today, offering a unique opportunity for CEOs and business leaders to share their insights and experiences of trading in Africa.
The survey aims to capture the opinions and views of CEOs and senior executives from across the continent, providing valuable insights into the challenges and opportunities facing African businesses.
This year’s theme will be “Realising the AfCFTA in an era of disruption”. The implementation of the Africa Continental Free Trade Agreement, AfCFTA, has been disrupted by various challenges, including the COVID-19 pandemic, the Russia-Ukraine war, and other external shocks. These challenges have highlighted the need for African countries to adapt to the changing global environment and seize the opportunities presented by the AfCFTA to transform their economies and societies. The Africa CEO Trade Survey will look to capture the sentiment of Africa’s private sector to inform policy-makers in the implementation of trade policies to fulfil the potential of the AfCFTA.
Stakeholders commit to strengthen collaboration to promote intra Africa trade (UNDP)
Stakeholders from across the public and private sectors pledged to strengthen collaboration with Governments to address infrastructure deficit, ineffective trade facilitation processes, and invest in innovation and technology to promote trade across borders in Africa, to accelerate sustainable development.
This commitment was made at the maiden Africa Sustainable Supply Chain Summit hosted by the International Chamber of Commerce (ICC) in Ghana, in partnership with the United Nations Development Programme (UNDP), and the Africa Investment Group in Accra on 29-30 March 2023.
“Growing competitive African businesses for the One Africa market requires better supply chain governance and more investment by multiple actors including diaspora investors. It requires collaborative approaches to attract innovative and new forms of financing for MSMEs”, said Angela Lusigi, UNDP Resident Representative in Ghana.
Egyptian leader lauds African Development Bank for supporting continent through tough times (AfDB)
The President of the Arab Republic of Egypt Abdel Fattah El-Sisi has commended the work of the African Development Bank Group in helping the continent to deal with the impact of global economic challenges.
The Egyptian leader on Tuesday received the President of the African Development Bank Group Dr. Akinwumi Adesina in the capital Cairo.
Adesina was in Egypt to familiarize himself with preparations ahead of the Bank Group’s 2023 Annual Meetings scheduled for 22-26 May in the resort city of Sharm El Sheikh. Up to 13 heads of state and government are expected to join the Bank’s Governors, executive directors, development partners and management at the meetings to discuss Mobilizing Private Sector Financing for Climate and Green Growth in Africa.
Launched: New $1.5m AfDB-funded Project to Improve Electricity Regulation in COMESA (COMESA)
The African Development Bank (AfDB) and the Common Market for Eastern and Southern Africa (COMESA) have launched a new regional initiative to enhance the sustainability of the electricity sector in Eastern and Southern Africa through harmonized regulatory frameworks.
The initiative, named “Regional Harmonization of Regulatory Frameworks and Tools for Improved Electricity Regulation in COMESA,” aims at effective, transparent, uniform, and enforceable regulatory frameworks in the region. The ultimate objective is to stimulate cross-border electricity trade and improve energy access in the COMESA region
The project comprises three key components, including: (i) the Elaboration and Adoption of Regional Electricity Regulatory Principles, and Regulatory and Utility Key Performance Indicators based on the AfDB’s flagship Electricity Regulatory Index for Africa for the COMESA region; (ii) Harmonised Comparison of Electricity Tariffs and Cost Reflectivity Assessment Framework Tool; and (iii) the development of an Information and Database Management System.
Liberia, the Only Country in Africa Yet to Ratify the Africa Continental Free Trade Area (FrontPageAfrica)
Liberia, an ECOWAS member state where importers mostly experience high tariffs on goods, which lead to inflation of prices on the local market, is yet to ratify the Africa Continental Free Trade Area (AfCFTA).
The agreement has been signed by 54 of the 55 African Union member states, with 44 countries depositing their instruments of ratification. However, Liberia, which signed the AfCFTA document on March 21, 2018, is yet to ratify.
“If Liberia does not ratify the AfCFTA, it means Liberia is no longer a state party. Therefore, Liberia will not benefit from preferences negotiated within the agreement,” said Dr. Olu Alaba, an expert on trade.
“Ratification will legally give Liberia the leverage to export to ECOWAS countries tariff-free and have other countries export to it as well under similar privileges. But if Liberia does not ratify, it means the country has not formally consented to the agreement and would not benefit from cross-border trades,” he said.
Cameroon seeks to rejoin AGOA amid slowing export revenues (Africanews)
Cameroon is looking to rejoin the US’s trade initiative for Africa, as the country works to boost export revenues amid falling foreign exchange earnings. Cameroon’s economy minister Alamine Ousmane Mey said his country has started talks with Washington for admission back into Africa Growth and Opportunities Act (AGOA), which grants African countries tariff-free access to the U.S. market.
The International Monetary Fund (IMF) forecasts that Cameroon, a Central African oil producer, will record 4.3% economic growth this year. The Fund has classified Cameroon as being at high risk of debt distress. But, the Fund added, that Yaounde’s debt could still be sustainable with with sound fiscal reforms and management.
In 2019, the US kicked Cameroon out of the AGOA program for rights violations by security forces in the restive southwest and northwest regions.
The global powers in new scramble to win over Africa (The East African)
Three global powers are in a race to win over Africa, the continent’s market of more than a billion people and tap its natural resources. Russia, China and the US are engaged in spirited charm offensives centred around political, military, economic and cultural initiatives.
Competing with both China and Russia is Washington’s ‘African reset’ initiative, in which the US sent Treasury Secretary Janet Yellen on a tour to Senegal, Zambia and South Africa, along with similar outings to Africa by Secretary of State Anthony Blinken.
World economic outlook, April 2023: A rocky recovery (IMF)
The outlook is uncertain again amid financial sector turmoil, high inflation, ongoing effects of Russia’s invasion of Ukraine, and three years of COVID.
The baseline forecast is for growth to fall from 3.4 percent in 2022 to 2.8 percent in 2023, before settling at 3.0 percent in 2024. Advanced economies are expected to see an especially pronounced growth slowdown, from 2.7 percent in 2022 to 1.3 percent in 2023. In a plausible alternative scenario with further financial sector stress, global growth declines to about 2.5 percent in 2023 with advanced economy growth falling below 1 percent. Global headline inflation in the baseline is set to fall from 8.7 percent in 2022 to 7.0 percent in 2023 on the back of lower commodity prices but underlying (core) inflation is likely to decline more slowly. Inflation’s return to target is unlikely before 2025 in most cases.
Global Economic Recovery Endures but the Road Is Getting Rocky
Inflation is slowly falling, but economic growth remains historically low and financial risks have risen
Interest Rates Likely to Return Toward Pre-Pandemic Levels When Inflation is Tamed
How close will depend on the persistence of public debt, on how climate policies are financed and on the extent of deglobalization
How to Tackle Soaring Public Debt
Timely and appropriate fiscal policy adjustments can reduce debt, but countries in distress will need a more comprehensive approach
Fragmenting Foreign Direct Investment Hits Emerging Economies Hardest
Long-term losses of 2 percent of global output due to shifting foreign direct investments underscore why global integration needs robust defense
Action Needed on Debt Crisis (World Bank Blog)
At the World Bank Group-IMF Spring Meetings this week, I will be advocating strongly for sound development solutions for the mounting challenges facing developing countries. Resolving the impasse in debt restructurings, especially for the world’s poorest countries, is going to be at the center of discussions.
As we bring together the Global Sovereign Debt Roundtable, I see two fundamental challenges: the debt restructuring process is not moving much, and there hasn’t been enough discussion yet on ways to take action toward debt sustainability. Creditors are spending vital months discussing issues that should be agreed on beforehand –the steps in the restructuring process, the process and timeline to reconcile debts, and how to handle cut-off dates. The most important topic – how to measure and apply comparability of debt treatment (fair burden sharing among creditors during a debt restructuring) – is still up in the air. All these points are part of every restructuring and need to be discussed and agreed. This Roundtable meeting could at least start the discussion. There needs to be consensus on these to get to the next step that really matters for countries with unsustainable debt – how to restructure the debt in a way that achieves sustainability.
It is urgent that we make progress: countries need to achieve transparent, sustainable debt burdens in order to restart investment, which has slowed to a standstill.
India wants WTO to be more progressive, more listening to other countries: FM Sitharaman (Times of India)
India wants the World Trade Organization to be more progressive and listening to other countries, Union Finance Minister Nirmala Sitharaman said Monday asserting that the WTO needs to give more space to the countries which have something different to say and not just hear.
“India’s attempt to talk to the WTO, talk in WTO have all faced with just no moment. The other classic example, which is in the minds of many of the emerging market countries is the electronics transmission related wall. Isn’t that since 1998, all of us are sitting and watching that you can’t do anything on the customs route for so much that is happening in the electronics business. It’s hitting the kind countries very differently,” she said.
“Since 1998, there has never been a need for reviewing it. All that I’m asking is that. And why wouldn’t every ministerial conference, which happens, ever, ever, ever take up this for discussion. It doesn’t take. The moratorium continues. So, it shouldn’t be difficult for you to appreciate. So when countries will have to speak at the WTO, it has to be on very many issues on which decision has not happened for over decades,” Sitharaman said.
DDG Ellard urges prompt acceptance of Fisheries Subsidies Agreement, completion of talks (WTO)
Let me start with the ways in which this new binding, multilateral WTO Agreement is highly significant and meaningful.
First, by prohibiting certain forms of fisheries subsidies that contribute to the most harmful fishing practices, the Agreement delivers on UN Sustainable Development Goal Target 14.6, after more than 21 years of negotiations — the first SDG target addressed through a new multilateral agreement. This outcome is a result of leadership, pragmatism, and commitment to both multilateralism and environmental sustainability by all WTO Members.
Second, the Agreement marks only the second time since the WTO’s creation that our Members have added a new multilateral agreement to our rulebook.
Third, the Agreement on Fisheries Subsidies is the first WTO Agreement with a broad environmental sustainability objective. The operation of the new disciplines will make fishing — and the ocean ecosystem — more sustainable by prohibiting subsidies to illegal, unreported, and unregulated fishing — or IUU fishing — as well as subsidies to fishing overfished stocks, and subsidies to fishing on the unregulated high seas.
Energy Transition Spending Surpasses Fossil Fuel Investments: 2023 FSDR (IISD)
The UN has published the 2023 report on financing for sustainable development, which calls for “massive” investments in sustainable transformations in electricity, industry, farming, transportation, and buildings, to close the widening development gap between countries, meet climate goals, and achieve the SDGs.
The Financing for Sustainable Development Report (FSDR) 2023 themed, ‘Financing Sustainable Transformations,’ highlights some positive findings on financing for sustainable development.
While the energy crisis, triggered by the war in Ukraine spurred global spending on the energy transition, which in 2022 rose to USD 1.1 trillion, surpassing fossil fuel investments for the first time, most of this spending was concentrated in developed countries and China. The green economy became the fifth largest industrial sector by market value, estimated at USD 7.2 trillion in 2021. Between 2021 and 2022, the world added 338 million regular internet users, representing an increase of just shy of 1 million additional people per day.
Supply of critical raw materials risks jeopardising the green transition (OECD)
A significant scaling up of both production and international trade of critical raw materials is needed to meet projected demand for the green transition and achieve global net zero CO2 emissions targets.
A new policy paper on Raw Materials for the Green Transition: Production, International Trade and Export Restrictions, shows the price of many materials – including aluminum and copper – have reached record highs, driven by the repercussions of the COVID-19 pandemic, trade tensions and the continuing consequences of Russia’s invasion of Ukraine.
While the production and trade of most critical raw materials has expanded rapidly over the last ten years, growth is not keeping pace with projected demand for the metals and minerals needed to transform the global economy from one dominated by fossil fuels to one led by renewable energy technologies.
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Ramaphosa proposes committee for logistics crisis of ‘catastrophic proportions’ (Engineering News)
During a meeting with key exporters on Wednesday night, President Cyril Ramaphosa proposed the establishment of a national logistics crisis committee to urgently address the ailing performance of South Africa’s ports and rail.
Ramaphosa hosted the virtual meeting with executives from key exporting economic sectors such as mining and minerals, the agricultural and forestry sectors and as well as the automotive and freight forwarding industry. The sectors represent South Africa’s largest exporters who are reliant on the country’s road, rail and port infrastructure.
Several meeting participants confirmed to News24 that the president said the logistics crisis is of “catastrophic proportions” and committed to rapid solutions through a new national logistics crisis committee. The committee structure is expected to be detailed at the fifth South Africa Investment Conference in Sandton next week.
Cameroon: The UK signals a boost in investment and trade and urges an end to conflict (GOV.UK)
The UK Minister for Development and Africa, Rt. Hon. Andrew Mitchell MP, has reaffirmed UK support to Cameroonian trade and infrastructure and discussed the devastating impacts of Cameroon’s conflicts, including the human rights situation, during a two-day visit.
The Minister saw the impacts of British investment in Cameroon, visiting a major road in the commercial capital, Douala, which is receiving £113 million in funding from UK Export Finance to support its expansion. Due to this important UK support, the critical transportation corridor between Douala and Yaounde, and on into central Africa, is being greatly improved, bringing more and quicker trade to more people.
The UK is committed to deepening its partnership with Cameroon to enhance economic prosperity, with leaders from the country invited to attend the UK-African Investment Summit to be held in London in April 2024.
Black citrus farmers held back by EU protectionism, Ramaphosa tells Belgian king (FreshPlaza)
South Africa’s citrus trade with the EU is currently held back by “protectionism”, President Cyril Ramaphosa told a recent bilateral trade forum between South Africa and Belgium, and with it, the aspirations of black citrus farmers whose forebears had been denied economic participation during apartheid.
“As we parcel out land to black people, they begin to get into sectors such as citrus. We have a growing number of black people who are now in citrus cultivation and production, and those people have seen opportunities to start trading with other countries, like Europe,” the South African president said.
Since last season South African oranges are required to be shipped at significantly lower temperatures than before, to assuage the risk of false codling moth entering Europe. South Africa contests both the scientific basis of the ruling as well as its trade fairness and prompted the country to lodge its very first trade dispute at the World Trade Organisation.
Pres Ramaphosa continued: “As they seek to export to your part of the world, there are barriers they have to deal with. Some of them [are] completely new barriers and that keeps them back as they seek to participate in the transformation of the South African economy.”
OP-ED: South African agribusiness must keep a close eye on export markets and opportunities in the rest of Africa (Daily Maverick)
While South Africa (SA) should expand its agricultural export markets to new frontiers such as India, China, Bangladesh, Saudi Arabia and South Korea, among others, this export drive should not be at the expense of our existing markets. We should actively engage with existing markets to promote further export growth of South African agricultural products. The engagement needs not only focus on the EU and Asia – both crucial regions for our export growth – but also on the rest of the African continent.
The African continent remains the largest export market for South Africa’s agriculture. In record agricultural exports of $12.8-billion in 2022, the continent accounted for 37%. Importantly, this was not an anomaly. It has accounted, on average, for 38% of SA’s agricultural exports by value per annum over the past five years.
The leading markets were Botswana, Namibia, Mozambique, Zimbabwe, Lesotho, Eswatini, Zambia, Angola, Nigeria and Mauritius. Except for Nigeria, these markets are within the Southern African Development Community’s (SADC) Free Trade Area, which has benefited South Africa greatly. Moreover, these markets’ infrastructure and proximity advantage contributes to the concentration of South African agricultural exports to this region.
As we advance this trade relationship with SADC and the rest of the African continent, various industry and government engagements will be needed to keep warm relations.
Cameroon, Gabon, Equatorial Guinea Traders Say Marburg Travel Restrictions Suffocate Trade (VOA)
Hundreds of merchants gathered Friday in Kye Ossi, a Cameroonian town on the border with Gabon and Equatorial Guinea, to protest travel restrictions imposed since an outbreak of the deadly Marburg virus. They say the restrictions are suffocating trade and violate a Central African regional agreement on the free movement of people and goods.
“Business people who leave Cameroon to meet their partners coming from Equatorial Guinea or from Gabon, they would definitely not come, so it affects the economic activities of Kye Ossi,” Cameroonian merchant Kema Godlove said Friday on Cameroon state broadcaster CRTV. “Actually, when borders are locked up, people relocate to different areas while waiting for the borders to be reopened, because when the borders are not open, businesses, everything is almost paralyzed.”
The merchants say by restricting the movement of people, Cameroon, Gabon and Equatorial Guinea are disrespecting a regional agreement among countries of the Central African Economic and Monetary Community, CEMAC.
Ghana: Stakeholders commit to strengthen collaboration to promote intra Africa trade (The Patriotic Vanguard)
Stakeholders from across the public and private sectors pledged to strengthen collaboration with Governments to address infrastructure deficit, ineffective trade facilitation processes, and invest in innovation and technology to promote trade across borders in Africa, to accelerate sustainable development.
This commitment was made at the maiden Africa Sustainable Supply Chain Summit hosted by the International Chamber of Commerce (ICC) in Ghana, in partnership with the United Nations Development Programme (UNDP), and the Africa Investment Group in Accra on 29-30 March 2023.
“Growing competitive African businesses for the One Africa market requires better supply chain governance and more investment by multiple actors including diaspora investors. It requires collaborative approaches to attract innovative and new forms of financing for MSMEs”, said Angela Lusigi, UNDP Resident Representative in Ghana.
Ms. Lusigi called for new partnerships to ensure that supply chains are sustainable and work to facilitate made in Africa, supplied by Africa, and moved by Africa.
Growth across Sub-Saharan Africa remains sluggish, dragged down by uncertainty in the global economy, the underperformance of the continent’s largest economies, high inflation, and a sharp deceleration of investment growth, a World Bank report said Wednesday. In the face of dampened growth prospects and rising debt levels, African governments must sharpen their focus on macroeconomic stability, domestic revenue mobilization, debt reduction, and productive investments to reduce extreme poverty and boost shared prosperity in the medium to long term.
Economic growth in Sub-Saharan Africa is set to slow from 3.6% in 2022 to 3.1% in 2023, according to the latest Africa’s Pulse, the World Bank’s April 2023 economic update for Sub-Saharan Africa. Economic activity in South Africa is set to weaken further in 2023 (0.5% annual growth) as the energy crisis deepens, while the growth recovery in Nigeria for 2023 (2.8%) is still fragile as oil production remains subdued. The real gross domestic product (GDP) growth of the Western and Central Africa subregion is estimated to decline to 3.4% in 2023 from 3.7% in 2022, while that of Eastern and Southern Africa declines to 3.0% in 2023 from 3.5% in 2022.
Boost for intra-African trade as Prudential Bank completes first live PAPSS transaction to Nigeria (Ghanaian Times)
Prudential Bank Limited (PBL), an indigenous financial institution, has successfully completed its first live Pan-African Payment and Settlement System (PAPSS) transaction to Nigeria. The transaction was initiated in Ghana Cedis on behalf of an individual customer of the bank, which was instantly received by the beneficiary in Nigeria in Naira.
The PAPSS platform serves as an enabler of the African Continental Free Trade Area (AfCFTA) by providing African businesses and individuals with the opportunity to initiate payments in their respective local currencies, with recipients also receiving funds in their local currencies. PAPSS eliminates the over-reliance on foreign currencies with its attendant economic woes.
African countries should innovate, not become dumping ground — AU Official (National Accord Newspaper)
Prof. Olalekan Akinbo of the African Union Development Agency (AUDA-NEPAD) says African countries should create room for innovation in order to avoid becoming a dumping ground for other countries’ innovations. Akinbo told the News Agency of Nigeria (NAN) on Wednesday that it was imperative for African governments to create the enabling policy and environment to support innovations. He urged governments in Africa to deploy innovation into agriculture and move from subsistence to commercial farming, so as to guarantee food sufficiency with surplus for exports.
OP-ED: Reducing cross-border trade costs will increase Africa’s competitiveness and revamp growth (Daily Maverick)
African economies are in danger of falling further behind their global competitors. Unless ways are found to radically improve trade between nations on the continent and with the world at large, they risk creating the foundations for a destabilising socioeconomic fabric and global crisis. While alarming, we have every reason to be hopeful about the economic prospects of African countries, but only if the right choices are made now.
As the continent prepares for a pending population boom and a rapidly changing global economy, governments and leaders must abandon the old “business-as-usual” approach and embrace different strategies that will yield desirable and prosperous outcomes.
Africa, especially under the auspices of the free trade area objectives, will require a well-defined trade strategy that is symbiotic and functions both domestically and regionally, and one that makes it competitive with its outputs.
The “Falling Long-Term Growth Prospects: Trends, Expectations, and Policies” report recently published by the World Bank offered thought-provoking discussions on the long-term potential output of global growth rates since the Covid-19 pandemic and the Russian invasion of Ukraine.
Growth Slows for Most MENA Economies Amid Double-Digit Food Inflation (World Bank)
Economies in the Middle East and North Africa (MENA) are expected to grow at a slower pace in 2023, as double-digit food inflation adds pressure on poorer households and the impact of food insecurity can span generations, according to the World Bank’s latest economic update.
Titled “Altered Destinies: The Long-Term Effects of Rising Prices and Food Insecurity in the Middle East and North Africa,” the report forecasts MENA’s GDP will slow to 3.0% in 2023, from 5.8% in 2022. Oil exporters, who benefited from a windfall in 2022, will experience slower growth, but a large gap remains between high-income countries and the rest of the region. Real GDP per capita growth, a better proxy for living standards, is expected to slow down to 1.6% in 2023 from 4.4% in 2022.
Projected financing needs to address severe food insecurity run into billions of dollars annually, but the report makes clear that money alone is not enough. The report suggests policy tools that could help to alleviate food insecurity before it escalates into a full-blown crisis, including targeted cash and in-kind transfers that could be introduced immediately to stem acute food insecurity.
Members take concrete steps towards WTO reform implementation at Goods Council (WTO)
Members took concrete steps towards WTO reform by agreeing on a series of actions to increase transparency and efficiency of the Council for Trade in Goods (CTG) and its subsidiary bodies and to improve the way it functions. At the meeting of the Council on 3-4 April, members translated intensive consultations over the past few months into specific results as a follow-up to the reform mandate agreed at the 12th Ministerial Conference (MC12) in June 2022.
Investment facilitation talks resolve remaining issues in Annex to Draft Agreement (WTO)
WTO members participating in the negotiations on investment facilitation for development (IFD) agreed to remove the Annex to the Draft Agreement containing pending issues after resolving all of these points. This major achievement towards the objective of finalizing the negotiation text by mid-2023 was announced at a plenary meeting on 5 April, following a two-day negotiating round. Participants also held a dedicated session on needs assessments, which aim at helping developing and least-developed countries (LDCs) self-assess their technical-assistance and capacity-building needs to implement the future IFD Agreement.
WTO members discuss bolstering developing countries’ participation in global trade (WTO)
Members discussed the Committee’s contribution to implementing the Ministerial Declaration adopted at the 12th Ministerial Conference (MC12) on the WTO response to the COVID-19 pandemic and preparedness for future pandemics.
Members discussed a proposal by the WTO’s African Group on providing developing countries and LDCs with flexibility to pursue policies that promote industrial and digital development and address emerging challenges, such as climate change. Examples include policies that protect infant industries and those that diversify production.
Members expressed their commitment to helping developing countries and LDCs integrate more fully into the global trading system. Some warned against duplicating work undertaken in other WTO forums.
Trade growth to slow to 1.7% in 2023 following 2.7% expansion in 2022 (WTO)
The WTO’s trade projections, set out in the new “Global Trade Outlook and Statistics” report, estimate real global GDP growth at market exchange rates of 2.4% for 2023. Projections for both trade and output growth are below the averages for the past 12 years of 2.6% and 2.7% respectively (see chart).
WTO Director-General Ngozi Okonjo-Iweala said: “Trade continues to be a force for resilience in the global economy, but it will remain under pressure from external factors in 2023.This makes it even more important for governments to avoid trade fragmentation and refrain from introducing obstacles to trade.
BRICS Investment Report (UNCTAD)
Brazil, the Russian Federation, India, China and South Africa (BRICS) now form one of the world’s most important economic blocs, representing more than one quarter of global GDP, and 42 per cent of the world’s population. Significantly, the BRICS have seen their economic influence increase over the past decades, as drivers of global growth, trade and investment.
Foreign investment has played an important role in the growth of BRICS economies since 2001, with annual FDI inflows to the bloc more than quadrupling from 2001 to 2021 and contributing significantly to gross fixed capital formation. The growth in FDI inflows to the BRICS was very strong in the first decade, but has remained relatively flat since 2011, against a global backdrop of negative growth of FDI flows over the decade.
To deal with the challenging global investment environment, and also in response to the need to leverage foreign investment for sustainable development, the BRICS economies continued moving in the general direction of a more open and supportive investment policy environment.
Air Cargo Shows Signs of Improvement in February (IATA)
The International Air Transport Association (IATA) released data for February 2023 global air cargo markets showing that air cargo demand rose above pre-pandemic levels.
The global new export orders component of the manufacturing PMI, a leading indicator of cargo demand, continued to increase in February. China’s PMI level surpassed the critical 50-mark indicating that demand for manufactured goods from the world’s largest export economy is growing.
Global goods trade decreased by 1.5% in January; this was a slower rate of decline than the previous month of -3.3%.
African airlines saw cargo volumes decrease by 3.4% in February 2023 compared to February 2022. This was an improvement in performance compared to the previous month (-9.5%). Notably, the Africa to Asia route area experienced significant cargo demand growth in February, up 39.5% year-on-year. Capacity was 4.7% above February 2022 levels.
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10% hike in SA trade exports, stats show (Bizcommunity)
South Africa recorded a trade surplus of R16.1bn in February 2023 compared to a deficit of R22.7bn in January 2023, and higher than the market forecast of a R14.3 bn shortfall.
This was the largest trade surplus over the last six months and came on the back of a 10.7% month-on-month increase in exports and a substantial decrease of 14.8% in imports. In line with expectations, the cumulative trade balance for the first two months of 2023 narrowed to a deficit of R6.6bn compared to a R17.1bn surplus over the same period in 2022.
South Africa once again recorded trade deficits with most of its regional trade partners, except Africa. With a substantial decline in imports from Africa for the period, the trade surplus with the continent rose to R30.5bn. This surplus is greatly beneficial to South Africa in that it increases the rand flow to the country, but also, the composition of the trade with the continent supports economic development in the country.
Other than oil and coal, most of the exports to Africa consist of higher value products, such as machinery, vehicles, and iron and steel. On the import side, products sourced from the continent are mostly lower value-added mining and mineral products such as oil, gold, and diamonds.
South African aeroplane company credits Brics with helping it win export orders (Engineering News)
South African light sports aircraft manufacturer Bat Hawk Aircraft has credited South Africa‘s membership of the Brics group as helping it win a major export order. Brics is the acronym for Brazil, Russia, India, China, and South Africa. The company is based in Nelspruit in Mpumalanga province.
“While our biggest aircraft importer in the continent is the Democratic Republic of Congo, followed by Botswana and Mozambique, we do export outside the continent as well,” explained Bat Hawk MD Terry Pappas. “We have footprints in the US and Australia. But our major breakthrough in the past five years has been with the Brics.”
Developing cybersecurity skills pipeline critical to fighting cybercrime (Engineering News)
Cybersecurity is one of the most significant risks facing South African companies and the government, as well as the world, with the World Economic Forum placing it among the top ten biggest threats faced by the world today.
However, the ability of the private and public sectors to respond adequately to the threat hinges on developing a cybersecurity skills pipeline, Council for Scientific and Industrial Research (CSIR) cybersecurity systems research group leader Billy Petzer said on April 4 at a cybersecurity media briefing in Pretoria.
An outlook of Tanzania’s Energy Demand, Supply and Cost by 2030 (AfDB)
The UN SDGs highlight the importance of energy indicators in achieving sustainable development. The supply side of energy in Tanzania has received a significant boost and there are optimistic targets to suggest further improvements in this area. However, past experiences have shown that the problems of financial constraints and the lack of technical capacities required could either delay or lead to the total abolishment of some projects. In the short- to medium-term, emphasising demand-side management (DSM) could prove crucial in ensuring a sustainable energy system in Tanzania but the evidence is sparse.
This study reviews the trends and underlying drivers of energy demand, supply, and cost in Tanzania. Total primary energy and electricity consumption exhibit a rising trend, and challenges on the supply side suggest energy deficit is a looming challenge in the future. Thus, without a significant boost in supply and probably DSM, unserved energy demand could worsen in the future. Key drivers include economic growth, price, electrification rate, population growth, industrialisation, changes in economic structure, and energy efficiency. Forecasted peak demand in the medium (2020-2025) and long term (2025-2030) would average annually 1274.74 MW and 1490.33 MW, respectively. Recent electricity tariffs in Tanzania are ranked among the highest in the sub-region, and the key drivers are own generation and transmission, and power purchase. The current tariff structure favours commercial consumers more than domestic consumers and this might impose significant affordability challenges on women who mostly do not operate in formal businesses. We discuss the implications of the findings.
Local manufacturers hail suspension of proposed excise duty hike (The Guardian Nigeria)
The inability of many Nigerians to access cash for daily activities is beginning to impact livelihoods and productivity in the real sector negatively, while pushing many businesses in the informal sector to the edge.
Factories are also experiencing a reduction in number of shifts and utilisation due to fewer workers and poor product sales at the retail end, while stakeholders in the informal sector have witnessed a decline in activities in the last few weeks.
CPPE chief executive officer, Dr. Muda Yusuf, noted that Nigerians continue to groan in the adversity inflicted by the acute cash shortage amid rejection of old currency notes by market operators, refusal by banks to accept old notes, silence by the Presidency on the Supreme Court judgment and absence of official pronouncement by CBN on the issue. He added that retail transactions across sectors have become nerve-wracking and distressing as payment system challenges persist. Yusuf, therefore, called on President Buhari to immediately intervene to put an end to the hardship caused by the currency redesign policy, adding that the cash scarcity has not only crippled economic activities in the country but has now become a major risk to the livelihoods of Nigerians.
The economy is gradually grinding to a halt because of the collapse of payment systems across all platforms. Digital platforms are performing sub-optimally because of congestion; physical cash is unavailable because the CBN has sucked away over 70 per cent of cash in the economy and the expected relief from the supreme court judgment has not materialised,” CPPE said.
President Ruto roots for carbon pricing to promote climate justice (Capital News)
President William Ruto has called for sustained efforts to enrich jurisprudence on environmental law in a bid to curtail further climate-related crises in Africa. Ruto who spoke on Monday while officially opening the 3rd Symposium on Greening Judiciaries in Africa challenged courts to widen their scope beyond human rights and constitutional affairs in a bid to secure climate justice.
“Greening our judiciaries will be inevitably multi-sectoral and inter-disciplinary. Beyond local and international human rights, constitutional, environmental, trade and economic law, our judiciaries must be exposed to diverse fields such as ecology, economics, agriculture, food systems, trade and finance, carbon markets, energy and infrastructure,” he told delegates at the conference.
Ruto termed pollution-dominated industrialization as unsustainable hence calling for concerted efforts to promote sustainable alternatives.
Meeting global EV targets will be ‘extremely challenging’ owing to raw material shortages (Engineering News)
Chemicals company BASF global precious metal services senior VP Timothy Ingle told delegates attending the Platinum Group Metals Day, in Johannesburg, earlier this week, that it would be extremely challenging from a raw materials perspective to meet the expected global uptake of ten-million electric vehicles (EVs) this year and the goal of reaching 40-million EVs on the road by 2030.
Ingle pointed to challenges faced globally with securing base metal supply and, in particular, lithium and class one nickel.
Concern over East Africa manufacturing slide (The Citizen)
Queries are being raised over the falling manufacturing value addition (MVA) in the East African Community (EAC) bloc. The trend fell short of the annual growth rate envisaged under the region’s industrialisation drive.
“We are not doing well in meeting the aspirations of the regional industrial policy targets,” said Mr Jean Baptiste Havugimana, the EAC director of productive sectors. According to him, MVA growth has slowed down in recent years. The growth rate fell from 5.3 percent between 2005 and 2010 to 4.6 percent between 2010 and 2021. The fall, he further said, was short of the 10 percent annual growth rate envisaged in the EAC Industrialisation Policy (2008-2032).
“This is nowhere near the double-digit growth envisioned,” Mr Havugimana told a meeting of the EAC sectoral council on trade, industry, finance and investment. He said that due to the slow pace of MVA growth, relative to Gross Domestic Product (GDP), the share of manufacturing in GDP has been contracting. Previously manufacturing contributed more than ten percent of the region’s GDP but has now dropped to less than eight percent.
“This is raising doubts about structural transformation through industrialisation,” Mr Havugimana said at the meeting held in Moshi.
Lesu and kanga to get new EAC textiles boost (The Independent Uganda)
The East African Community-EAC is now pushing for traditional wear and garments made from local materials in a bit to revive the region’s textile industry. A policy organ says if the lesu and kanga are encouraged as wear or inputs for clothes, it will go a long way in supporting cotton farmers, boosting industrialization, and saving foreign exchange. For close to ten years now, the East African Community has sought to jointly revive and grow the local textile industry but efforts are yet to bear fruit.
Now the Sectoral Council on Trade, Industry, Finance and Investment (SCTIFI) called on EAC the Partner States to adopt the use of traditional or folklore wear as official Government dresses for official events, as part of the “Buy East Africa, Build East Africa” strategy.
The council, at its just-ended 38th Extraordinary meeting, also encouraged the countries to establish digital platforms to support the exchange of information on the harvesting of cotton and trade of cotton lint in order to increase the intra-EAC trade on the products.
The ministers also proposed that textile and textile articles be moved to the maximum band (of goods protected by high tariffs on imports) to stimulate local production.
EAC members urged to remove bottlenecks obstructing industrial development (Capital Business)
Seven member states of the East African Community (EAC) have been urged to remove restrictions and bottlenecks that obstruct industrial development in the region. A statement by the EAC headquarters in Tanzania’s northern city of Arusha said the appeal was made during the 38th Extra Ordinary Meeting of the Sectoral Council on Trade, Industry, Finance and Investment dedicated to industrialization held in Tanzania.
According to the statement, the chairperson of the meeting, Burundian Minister of Finance, Budget and Economic Planning Audace Niyonzima, said industrialization, trade, finance, and investment are important pillars of integration, and their development will help to deepen integration as the region moves toward the next milestone of financial integration.
Niyonzima called on EAC member states not only to put in place clear industrial policies and strategies but also to implement them on the ground to support economic development and employment for EAC citizens.
The rapid rate of competition law developments across Africa (ZAWYA)
Baker McKenzie’s latest Africa Competition Report 2022 provides a detailed analysis and overview of recent developments in competition law enforcement and competition policy in 32 African jurisdictions and regional bodies. The Report outlines how, over the past two years, African competition regulators have actively engaged in efforts to address pandemic-related challenges, but there has also been a general upward trend in competition policy enforcement across the continent. This trend is highlighted by a number of significant recent developments in competition law regulation across the continent. Countries and regions with recent competition law developments include the Common Market for Eastern and Southern Africa (COMESA), Egypt, Ethiopia, Ghana, Kenya, Mauritius, Mozambique, Namibia, Nigeria and South Africa.
AfDB supports Africa fintech hub project with $525,000 grant (News Agency Nigeria)
The African Development Bank (AfDB), have signed a 525,000 dollar agreement to support Africa Fintech Network’s (AFN)’s Hub project. Mr Lamin Barrow, the Director-General, AfDB, Nigeria Country Department, during the signing in Abuja on Tuesday, said the project would boost the fintech industry on the continent.
This grant of 525,000 dollars, will support the operationalisation of an on-line digital hub to serve as a repository of knowledge for fintech entities across the continent, and globally. “ The Digital Hub, which is to be delivered through a strategic partnership between the Africa Fintech Network and Cenfri, will help to strengthen the fintech ecosystem across Africa, and boost the industry’s competitiveness.
The grant is funded by the Africa Digital Financial Inclusion Facility (ADFI).
As China opens up to African farms, long road still ahead for ‘green lanes’ (South China Morning Post)
A variety of raisins from South Africa are now reaching Chinese consumers, as doors open wider to African food products under President Xi Jinping’s “green lanes” promise.
“High quality fruit from Africa is gaining more and more recognition in the Chinese market,” Wu Peng, director general of the Chinese foreign ministry’s African affairs department, tweeted recently. This comes as China imports more farm produce from Africa, including avocados, cashews, sesame seeds and chilli peppers, as agriculture becomes the new focus of its engagement with the continent.
Can Russia Increase Trade With Africa Beyond Rhetoric (Business Post Nigeria)
Russian President Vladimir Putin spoke at the International Parliamentary Conference Russia – Africa in a Multipolar World held in Moscow under the auspices of the State Duma of the Russian Federal Assembly on March 20.
The partnership between Russia and African countries has gained additional momentum and is reaching a whole new level, he noted in his speech, and along the line, adding that additional opportunities are opening up by the process of establishing the African Continental Free Trade Area (AfCFTA), which began in 2021, which in the future will become a continental market which favours developing ties both through the Eurasian Economic Union and bilaterally.
“Mutual trade is growing every year, which reached almost $18 billion last year. It is unlikely that such a figure can fully suit us, but we know that this is far from the limit. The development of counter-commodity exchanges will undoubtedly be facilitated by a more energetic transition in financial settlements to national currencies and the establishment of new transport and logistics chains,” he added.
Trade tracker: EU trade deals (UK in a changing Europe)
The EU has signed two economic partnership agreements (EPAs), one with West Africa and the other with the East African Community (EAC). They have yet to come into force. Upon ratification, the deals will reflect one of the first major trade divergences between the EU and the UK from the EU side.
The West Africa EPA involves 16 West African states that did not previously have trade deals with the EU. For the EPA to be fully ratified, all 16 states must sign the deal and then adopt it in their respective legislatures.
More flexible rules of origin will allow products being exported from West African countries to have inputs from other countries and still be eligible for tariff-free trade with the EU, giving goods from West Africa more ability to utilise global supply chains.
In terms of sectors, West Africa’s exports to the EU consist mainly of oil and gas (58.7%) and food products (28.9%). West Africa’s imports from the EU consist of fuels (27%), food products (20.6%), machinery (23.2%), and chemicals and pharmaceutical products (10%).
The EAC EPA involves six countries, Burundi, Kenya, Rwanda, Tanzania, South Sudan, and Uganda. Kenya and Rwanda are the only countries to have signed the EPA so far, both signing it in 2016 and Kenya ratifying it in the same year. Kenya is the only country to have ratified it to date. Similar to the West Africa EPA, the EU has signed a stepping stone EPA with Kenya while they await full ratification from all six countries. The UK rolled over that deal with Kenya when it left the EU. This deal is not as far along as that of West Africa. While the deal is finalised, the process of ratification by each country’s legislative body is still in the works, therefore, its benefits will not be realised for some time.
The deal will help EAC exports of coffee, cut flowers, tea, tobacco, fish, and vegetables while it will help EU exports to West Africa, which are primarily dominated by machinery, vehicles, and pharmaceuticals.
WMO calls for more investment in integrated weather and climate services (UN News)
A recent publication contains guidelines and best examples of integrated weather and climate services from across the globe. It “provides well-timed support for this crucial decade of energy transition to net zero,” said WMO Secretary-General Petteri Taalas “By enabling WMO Members and their National Meteorological and Hydrological Services, as well as energy sector companies and practitioners, to deliver and use integrated weather and climate services, national strategies on clean and sustainable energy for all can be achieved in a timely and effective manner,” he added.
investment is critical, including to ensure that energy infrastructure is resilient to climate-related shocks, and to harness the power of energy generated from sources such as the sun and wind, the UN agency said.
Members briefed on informal dispute settlement reform talks (WTO)
Marco Molina, Deputy Permanent Representative of Guatemala to the WTO, reported in his personal capacity on informal meetings he was asked to convene by a group of WTO members on the issue of dispute settlement reform. The objective of these meetings was to have substance-based discussion to find practical solutions to the concerns identified by members, with the aim of fulfilling the June 2022 ministerial mandate of having a fully and well-functioning dispute settlement system accessible to all members by 2024.
Mr Molina said that between 6 and 14 February he had over 40 bilateral meetings with delegates and regional coordinators representing more than 130 WTO members, which was followed by an informal meeting on 17 February open to all WTO members. An online template was created for the submission of proposals, of which 70 have been received from members to date. Informal discussions were also started in small groups and open to all members for talks on the proposals put forward; so far 45 delegates have participated in the small group meetings.
Members welcome Timor-Leste’s request to join Information Technology Agreement (WTO)
Participants in the WTO’s Information Technology Agreement (ITA) welcomed at a meeting on 29 March a request by Timor-Leste to join the ITA and the ITA Expansion Agreement. Members also discussed ITA trade concerns and heard a WTO Secretariat report on latest trends in global trade in information and communication technology (ICT) products.
The Secretariat provided an update on latest trends in world trade in ITA products. The presentation noted that world exports of ITA products have more than quadrupled since 1996, reaching USD 2.5 trillion in 2021. The export of products under the ITA’s Expansion Agreement is estimated at about USD 2.1 trillion of exports in 2021, accounting for around 12 per cent of world merchandise exports. The Secretariat noted that products covered under the ITA and its expansion are among the most traded product groups in the world.
The report also noted that the ITA contributes to the reduction of import prices of IT products. These prices were around 70 per cent lower in 2021 than when the ITA entered into force in 1996. Asia’s leading role in the production and integration of ITA products was also noted, with Viet Nam becoming the world’s seventh-largest ITA product exporter.
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TFR achieves record volumes on manganese export line (Engineering News)
Transnet Freight Rail’s (TFR’s) Cape Corridor has achieved a ten-year record on its Manganese Hotazel–Port Elizabeth export line, achieving 9.8-million tonnes in the 2022/23 financial year. The entity has more than doubled the corridor’s total capacity, increasing progressively from 4.9-million tonnes in 2012 to 9.7-million tonnes in 2023, it says.
The investment in the capacity expansion enabled TFR to gradually increase its manganese volumes performance through capital expenditure projects; an increase in slot capacity; investments in rolling stock capacity; and an increase in the number of employees.
Bill seeks refunds, repairs for defective goods (Business Daily)
Kenyan consumers will have the right to reject goods and obtain refunds, or compel manufacturers to repair or replace faulty and poor-quality products if Parliament approves changes to the law aimed at protecting buyers from substandard products.
The proposed law seeks to empower consumers to return goods within a week of delivery if they are defective, unsafe, not of merchantable quality, or were not examined by the suppliers before delivery. The Bill further seeks to shift the burden of proof to a supplier of goods.
West Africa Crude Oil Exports Dropped Again in 2022 (Hellenic Shipping News)
West Africa crude oil exports kept falling during 2022, continuing the downward trend of the past few years. In its latest weekly report, shipbroker Banchero Costa said that “2022 turned out to be a very positive year for crude oil trade, despite the surging oil prices and risks of economic recession. In the full 12 months of 2022, global crude oil loadings went up +8.7% yo-y to 2,050.1 mln tonnes, excluding all cabotage trade, according to vessels tracking data from Refinitiv. This was well above the 1,886.3 mln tonnes in Jan-Dec 2021, but slightly below the 2,110.5 mln tonnes in the same period of 2019”.
“West Africa as a region is the third largest exporter of crude oil in the world, after the Arabian Gulf and Russia. It accounts for 8.3% of global seaborne crude oil exports. Total crude oil loadings from West Africa in the 12 months of 2022 declined by -2.2% y-o-y to 170.7 million tonnes, according to revised vessels tracking data from Refinitiv. This extends a negative trend now seen for a number of years. In 2021, exports from West Africa declined by a sharp -14.0% y-o-y to 174.6 mln tonnes. In 2020, volumes had also declined by -9.2% y-o-y to 202.9 mln tonnes, from the recent peak of 223.4 mln tonnes in 2019. In terms of individual countries, the biggest exporters in the region are Nigeria and Angola. Nigeria exported 65.5 mln t in 2022, down -9.2% y-o-y. Volumes from Nigeria have been dramatically declining in recent years from the 72.2 mln t in 2021, the 86.7 mln t in 2020 and the 97.9 mln t in 2019. Angola exported 58.4 mln t in 2022, up +5.6% y-o-y from 55.3 mln tin 2021. Volumes however were still well below the 61.6 mln t in 2020 and the 67.1 mln t in 2019”, Banchero Costa said.
How new Rwanda-Australia trade, investment body will boost ties (The New Times)
The Australia-Rwanda Trade and Investment Council (ARTIC), a new body formed during the Australian leadership retreat in Brisbane from March 24 to 25, aims to strengthen relations between Australia and Rwanda by building mutually beneficial links in business, education, and culture. The council which is composed of business and community leaders, plans to use Rwanda as a conduit to broader opportunities throughout Africa.
The Australia-Rwanda Trade and Investment Council will continue to foster mutual opportunities in business, education, and culture, and provide learning opportunities to address the current challenges facing the world.
Climate-Smart Agriculture Key for Nigeria’s Resilient Economy — AfDB (Tribune Online)
The African Development Bank (AfDB) has said that Nigeria can build a climate-resilient economy by adopting climate-smart agricultural practices and low-cost but effective technologies.
The technologies include water harvesting and small-scale irrigation techniques, land and water conservation and management strategies, and minimum or zero tillage agriculture with high net returns to farmers.
This is contained in the Bank’s “Country Focus Report 2022 Nigeria: Supporting climate resilience and a just energy transition “, a copy of which was obtained by the Nigerian Tribune in Abuja.
According to the report, “The African Economic Outlook 2022 estimates of the Climate Resilience Index (CRI) show that in 2010–2019, Africa was the least climate-resilient region in the world, with both the lowest median (28.6) and mean (34.6) CRI scores, well behind Europe and Central Asia, the regions most resilient to climate shocks.
“During the same period, Nigeria was moderately resilient as compared to other African countries, with a CRI score of 26.8. Although Nigeria suffers from multiple climate change effects, manifested through rising temperatures and periodic droughts and flooding, with implications for agricultural productivity, food security and electricity generation, the country has made some progress in reducing its vulnerability.
Ghana, Kenya takes advantage of AfCFTA to boost trade (Graphic)
Ghana has declared intentions to maximise gains from the African Continental Free Trade Agreement (AfCFTA) through strengthening of commercial ties with Kenya. As a result, it is planning to establish an Export Trade House (ETH) next month in Kenya as part of measures to promote trade relations between the two countries. It will be positioned at a central location where Made-in-Ghana products can be shipped, displayed and distributed in Kenya and other countries in East Africa.
The EU-WCO RoO Africa Programme supports SADC in updating its Rules of Origin to HS 2022 (WCO)
The World Customs Organization (WCO), under EU-WCO Origin Africa Programme funded by the European Union (EU), and in partnership with the Southern African Development Community (SADC), conducted a validation workshop on the alignment of the SADC Rules of Origin to the 2022 edition of the Harmonized System (HS).
The workshop, which took place from 20 to 23 March 2023, in Johannesburg, South Africa, follows a request by SADC to align its rules of origin. The EU-WCO RoO Africa Programme has provided two preceding technical assistance workshops to update the SADC rules of Origin from the 2002 to the 2022 version of the HS. This process is considered a significant and important step towards the implementation of the SADC Protocol on Trade.
In his opening remarks, Mr. Alcides Monteiro, Senior Programme Officer, Customs, and Task Manager of the EU-SADC Trade Facilitation Programme at the SADC Secretariat, highlighted the importance of the SADC Protocol on Trade and informed that the non-alignment of SADC list of rules to the latest HS version has caused implementation problems for economic operators and customs authorities. Goods had to be classified twice for purposes of customs clearance, collection of import duties, and origin determination. The technical support from the WCO through the EU-WCO Rules of Origin Africa Programme was of high relevance and required to align the rules of origin to the HS 2022 edition.
Southern African Customs Union holds first trade facilitation, logistics engagement in Namibia (New Ghana)
The Southern African Customs Union (SACU) on Thursday held its first engagement with government agencies and private sector representatives in Namibia as part of a series of activities aimed to promote trade facilitation and logistics across the region.
The event was organized by the Namibia Revenue Agency (NamRA), with a particular focus on the implementation of the Authorized Economic Operator (AEO) Program.
Speaking at the event in Windhoek, the capital of Namibia, SACU Executive Secretary Thabo Khasipe explained that the AEO program aims to provide private sector companies with benefits such as faster goods clearance, supply chain optimization, lower costs of cross-border trade, prioritized treatment at the border, and mutual recognition arrangements.
“Trade facilitation and logistics have been prioritized as a key component of our strategic plan, with a focus on industrialization as the overarching objective,” Khasipe said, adding that the AEO Program has two components: compliance and safety and security where the SACU has been implementing the compliance component in phases, with the initial phase focused on developing the tools and frameworks required for an AEO Compliance Program.
He stated that as of March 23, all SACU member states have established and are implementing their respective AEO Compliance Programs using the minimum standards and criteria and procedure manuals developed at the regional level. The AEO program will be implemented across the SACU region.
E-waste rise in EA worries tech providers, linked to public health issues (The East African)
Tech stakeholders and authorities in the region are worried that rising e-waste could bring the unintended health problems to people as items are disposed of in local dumping sites.
At a regional workshop on sustainable management for e-waste, stakeholders in the information communication and technology (ICT) sector heard that there are insufficient facilities to ensure safe disposal of obsolete electronic gadgets, making them a serious environmental concern.
“There are a few e-waste collectors or companies engaged in collecting the used components in local communities in EAC member states with Tanzania and Kenya taking the lead,” said East African Communication Organisation (EACO) Chairperson Juma Osoro, an autonomous entity of the regional bloc that brings together national ICT regulators, operators and services providers.
DR Congo ripe for business, say East African captains of industry (The East African)
Business leaders from East Africa say that the Democratic Republic of Congo is ripe for business following commitments by Kinshasa that it is reviewing regulations to ease doing business in the country.
Executives who spoke at the inaugural Nation Media Group East African Business Conference and Trade Fair in Kinshasa at the end of the week expressed optimism with the reforms that the Felix Tshisekedi administration has instituted to facilitate investment in the country that has suffered decades of political uncertainty.
In his keynote address at the event, Congolese Government Spokesman Patrick Muyaya assured investors of the changing investment climate in the country, noting that the time had come for Congo to be defined by other issues than violence.
WHO warns global economy to slump if SSA doesn’t cut trade costs (The East African)
Sub-Saharan Africa (SSA) will need to cut trade costs by at least half to reinvigorate global trade which has been in decline since mid-last year, the World Bank has warned.
The lender said world economy growth rate is set to slump to a three-decade low if nothing is done urgently to boost productivity, labour supply, ramp up investment and trade, and harness the services sector.
In a report assessing the long-term implications of the Covid-19 pandemic and Russian invasion of Ukraine on the global economic growth rate, the World Bank said cutting trade costs in regions where they are highest could boost international trade and bolster the globe’s economic growth.
The Sectoral Council noted the focus of the next five years Implementation Action Plan of the Strategy as strengthening the competitiveness of priority regional value chains to boost intra-EAC trade and Leveraging the African Continental Free Trade Area (AfCFTA) and Global Value Chains (GVCs) for export growth and rapid Industrial Sector Transformation; utilization of local sourcing/procurement; supporting the private sector and SMEs resilience for accelerated growth and recovery.
The 38th Extra Ordinary Meeting of the Sectoral Council on Trade, Industry, Finance and Investment (Ex-SCTIFI) dedicated to Industrialization concluded over the weekend in Kilimanjaro, United Republic of Tanzania. The five-day meeting from 28th March to 1st April, 2023 considered the progress of the reports of the implementation of the directives in the sector, Cotton, Textiles and Apparel (CTA) Strategy; Leather & Leather Products Strategy and Automotive Industry Action Plan.
Furthermore, shifting to Green Industrialization Pathways and anchoring sustainability to achieve SDGs and green growth; Improving Policy Coordination and Building Capacity for Industrial Policy Management; Optimizing Infrastructure & Logistics Networks for Spatial Industrial growth and Agglomeration; and Strengthening collaboration in R&D, Technology Tranfer and adotion of Fourth Industrial Revolution (4IR) technologies among others.
African Free Trade Area can herald $12 billion growth for the continent’s automotive industry (WEF)
Transformative change is underway in the African automotive industry as trade begins under the African Continental Free Trade Area (AfCFTA).
The continent’s auto industry, valued at $30.44 billion in 2021, is expected to grow to $42.06 billion by 2027 — a nearly 40% increase in value. According to a new report by the World Economic Forum, AfCFTA: A New Era for Global Business and Investment in Africa, much of this growth can be serviced by local companies within the newly established free trade area.
International companies have found success in the automotive industry by partnering with African countries, signaling that the automotive sector is ripe for new and increased investment strengthened by the AfCFTA.
Across the continent, there is an average annual demand for 2.4 million motor cars and 300,000 commercial vehicles. This domestic demand — which is rising due to the continent-wide increase in disposable income, strong growth of the middle class and rapid urbanisation — is currently being met primarily by imported used vehicles.
The Women and Youth Financial & Economic Inclusion Initiative, a catalyst for inclusive development (AU)
Africa’s vision for its people is that of a continent where girls and boys reach their full potential and men and women contribute equally to the development of their societies. Aspiration 6 of Agenda 2063 envisions an Africa whose development is people-driven, especially relying on the potential of its women and youth. Promoting gender and youth mainstreaming on the continent is essential for an inclusive Africa where the voices and concerns of 75% of the population that constitutes of women and youth, are heard and welcomed at decision-making tables.
However, for decades, African women and youth have been trapped in cycles of poverty due to several underlying factors including unequal access to education, factors of production, restricted market access; underpaid or unpaid labour; harmful cultural practices; violence against women and girls and limited legal protection from gender inequality practices entrenched in the society amongst others.
Trade levels still low despite deepening Intra-ECOWAS trade (The Voice)
As the meeting of experts and industry Ministers from ECOWAS member States for the validation of Regional Standards, Technical Regulations for lead in paint ECOSHAM wrapped up on Thursday, 30th March 2023 in Banjul, the Gambia Hon Minister of Trade, Industry, Regional Integration, and Employment has disclosed that despite the major strides made toward deepening Intra-ECOWAS trade, trade levels are still very low.
Hon Baboucarr Ousmaila Joof, delivering his opening statement at the forum said the reasons for this are multifaceted but have their root cause in the energy sector, and “they range from inadequate infrastructure, low levels of industrialization and productive capacity, poor implementation record of protocols and existing agreements, high cost of doing business, lack of access to trade and market information, high levels of informal trade – particularly, informal cross-border trade, among others.”
He noted that the technical meeting of experts thoroughly examined and validated several documents for the development of standards for off-grid solar products and PV mini-grid and revision of ECOSHAM document as well as regional harmonization of Standards on THC 01 Agro-products, THC 02 Food Products, THC O3 Chemical Products and THC 09 Informational, Communication Technology.
FAO, ECOWAS, EU partner to boost fishery production (The Nation)
The Food and Agriculture Organisation of the United Nations (FAO), Economic of West African States (ECOWAS) and the European Union have collaborated to boost fishery production. This was made known during a meeting with experts to discuss and draw a road map for the utilisation of the results to adopt a sustainable management of the fisheries resources of the ECOWAS maritime domain.
FAO Representative in Nigeria and ECOWAS, Fred Kafeero, who was represented by the Head of FAO Nigeria, Northeast Office, Mr Al Hassan Cisse, said the state of fisheries in the ECOWAS region is complex and varies depending on the country and the sub-region. He noted that fish which a source of income for millions of people faces enormous pressure and threats of overexploitation; illegal, unreported and unregulated (IUU) fishing; poor management practices that cripples the progress towards sustainable fisheries; especially the Small-scale fisheries sector, the back-bone of fishing communities.
Member states urged to institute debt management strategies to boost economic growth (UNECA)
African countries should institute effective debt management strategies to boost economic growth and avoid falling into the debt trap, the Economic Commission for Africa (ECA) Director for Macroeconomics and Governance Division, Adam Elhiraika, has urged.
Opening a peer learning workshop on debt management strategies for member states being held in Lusaka, Zambia from April 3- 6 2023, Mr. Elhiraika said debt management was a challenge for African countries as debt becomes a significant source of funding for their economic growth and development.
“However, this provides an opportunity to effectively enact budgetary protection for various events more apparent in the foreseeable future,” Mr. Elhiraika said, adding that, “Efficient and effective debt management will allow debtor countries to take action to avoid the legacy of ‘too little, too late’ sovereign debt management and restructuring.”
Mr. Elhiraika said in the past six decades, every global recession has led to a rise in global government debt and over the past decade, many countries in Africa have increased their public debt levels. Most of the current public debt was accrued during the fiscal years of 2020 and 2021, when countries took on debt to deal with the effects of the Covid-19 pandemic.
Regulatory reforms will help attract private sector investment in Africa’s energy market (UNECA)
A timely regulatory overhaul of Africa’s fledgling electricity sector will attract private sector investment and ensure energy security on the continent, stakeholders meeting at an electricity dialogue, have agreed.
More than 600 million Africans have no access to electricity and Africa generates only 4% of the global energy. Despite vast opportunities in the development of the electricity sector in Africa, there is low private sector investment in energy infrastructure and service delivery, participants at the recent High-Level Public-Private Dialogue on Private Sector Investment in Electricity and Infrastructure Development in Africa, heard.
“Advancing electricity market regulatory improvement and reform is a significant part of the solution towards de-risking investment in Africa’s energy infrastructure,” Mr. Hailu, an energy policy expert at ECA Private Sector Development and Finance Division, said, emphasizing that credible regulatory framework and policy remained key instruments for member countries striving to crowd-in private capital in their electricity markets via generation, transmission, distribution, and off-grid system development.
Unity eludes Southern Africa over Russia’s war (GIS Reports)
It has been almost 14 months since Russia launched its full-scale invasion of Ukraine on February 24, 2022. Kremlin expectations of a quick victory in its “special military operation’’ proved wrong, yet the world is no closer to finding a way to end this conflict and persuading Russian President Vladimir Putin to withdraw his troops. Unfortunately, Southern African states with 380 million of the continent’s 1.4 billion people are among those that consider themselves powerless to stop the bloodshed. They cannot even unify around a single position.
The war has created divisions in the Southern African Development Community (SADC), a trade and economic union of 16 countries. The initial position adopted by SADC member states has been nonalignment, with some countries mildly condemning Russia while calling for an end to the conflict through negotiations between Moscow and Kyiv.
IATA launches new Africa-focused initiative (Engineering News)
The global representative body for the airline industry, the International Air Transport Association (IATA), on Monday afternoon launched its Focus Africa initiative, to help the continent’s commercial aviation industry achieve its potential. Currently, Africa is home to 18% of the world’s population, but African airlines account for only 2.1% of global air passengers. Further, during this century, Africa will lead the world in terms of growth in working age populations. By 2100, Africa‘s working age population is projected (by the United Nations) to reach just over 2.5-billion, which will not be far behind that of Asia.
Africa Travel Market optimistic over new growth prospects (Africanews)
Africa’s travel market is open and booming. This is a sentiment expressed by an estimated 600 exhibitors at this year’s World Travel Market Africa in Cape Town, South Africa. This after the industry sustained serious damage due to Covid-19. The meeting saw a 35% increase compared to last year, said Carol Weaving, Director of Reed Exhibition Africa.
Africa’s travel market is open and booming. This is a sentiment expressed by an estimated 600 exhibitors at this year’s World Travel Market Africa in Cape Town, South Africa. This after the industry sustained serious damage due to Covid-19.
One of the hot topics on Africa’s growth is intra-Africa trade. For travel and tourism, destinations like Seychelles believes that it will act a catalyst to wider growth for expanding the country’s popularity.
Egypt, Afreximbank discuss preparations for IATF in November (ZAWYA)
Egypt’s Minister of Trade and Industry Ahmed Samir has held an extensive meeting with a delegation from the African Export-Import Bank, headed by Executive Vice-President Kanayo Awani, to discuss the bank’s current and future projects and initiatives in the Egyptian market.
The minister said that coordination is currently underway with the bank to host Cairo for the third edition of Intra-African Trade Fair (IATF) 2023 next November, added that the ministry is keen to provide all possible support to come up with this important event in a manner that befits Egypt’s position in the heart of the African continent.
Samir explained that the exhibition aims to enhance intra-trade between various African countries and highlight investment opportunities available in the continent.
Ditching the Dollar: Will a new BRICS currency replace the US dollar for trade? (Firstpost)
The US dollar has been the official currency for international trade for years now. However, in recent times there has been talk of creating a new currency in an attempt to dump the dollar and push back against American hegemony.
This de-dollarisation has received a boost in recent times, especially after the Russia-Ukraine war began last February. And last week, this movement received further impetus when Alexander Babakov, the deputy chairman of the State Duma, was quoted as saying that the BRICS nations are in the process of creating a new medium for payments — established on a strategy that “does not defend the dollar or euro”.
Taking this forward, the BRICS collective — made up of Brazil, Russia, India, China and South Africa — are also mulling creating a new currency to facilitate trade. It is reported that the new financial agreement could be seen as soon as in August when the countries meet for their annual summit in South Africa.
If the BRICS nations do go ahead with their plan and come up with a new currency, it could help stabilise their economies. For an investor in BRICS countries, it would mean increased consumer confidence. This would lead to an uptick in spending and economic growth.
Trade capacity-building activities launched in Tanzania under Chairs Programme (WTO)
The Eastern and Southern Africa Management Institute (ESAMI) is a pan-African management development institute owned by ten member governments. The Chair in Tanzania will seek to help the East African Community overcome impediments to trade growth and development.
This year’s activities at the Training Centre will focus on issues of relevance to least-developed countries in Africa, including utilization of trade preference and their impact on the development of regional value chains; e-commerce; and trade remedies.
“As a continent, we appreciate the value of using evidence-based research in synthesising strategies and policies to mitigate the unique challenges that our region and countries face,” Tanzania’s Deputy Minister for Investment, Industry and Trade, Mr Exaud Silaoneka Kigahe
UNCTAD set to support countries under new landmark treaty on high seas (UNCTAD)
After 15 years of negotiations, UN member states agreed on landmark new treaty on 4 March to protect marine biodiversity on the high seas. The treaty will be formally adopted soon.
When it enters into force, the Biodiversity Beyond National Jurisdiction (BBNJ) agreement will address biodiversity loss and ecosystems degradation due to climate change impacts, pollution and unsustainable use. It must be ratified by 60 member states to enter into force.
The treaty will particularly benefit developing countries, which had initiated the negotiations to regulate, among other things, the fair and equitable sharing of benefits arising from activities with respect to marine genetic resources. These have a significant potential for research and development in the biotechnological, pharmaceutical, foods and cosmetic fields.
DDG Zhang: Women’s perspectives are crucial to achieve sustainable peace through trade (WTO)
Taking account of women’s perspectives is crucial not only to raise awareness of the challenges they face in terms of gender equality but also to achieve sustainable peace through trade in fragile and conflict-affected states (FCAs), said Deputy Director-General Xiangchen Zhang on 31 March. Delivering opening remarks at a webinar titled “A trade for peace perspective on women’s empowerment in FCAs”, DDG Zhang stressed that the WTO’s Trade for Peace Programme can offer a platform to discuss concrete actions in support of women entrepreneurs and businesses in these countries.
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Coming Soon: Online Platform for Trade in Services (COMESA)
COMESA will soon launch an Online Platform for Trade in Services that will be used to facilitate speedy and efficient negotiations and provide digital communication, thanks to the African Export Import Bank (Afreximbank) which has helped develop the platform.
Since Wednesday this week, officials from the 21 COMESA Member States, who deal with trade in services matters have been attending a training in Lusaka, Zambia (and online), on how to use the platform.
The forum also presented an opportunity to validate two studies that have been conducted to assess the status of trade in business services and construction services in the region, to facilitate negotiations in those two sub-sectors. Also participating in the training were COMESA Secretariat staff that handle trade matters and information, communication technology.
Harsh cold treatments remain a threat to citrus sector: Absa Agribusiness (Moneyweb)
In its report tracking trends in South Africa’s agricultural sector, Absa Agribusiness has raised concern that the sector increasingly runs the risk of losing access to lucrative export markets, boding badly for the citrus industry’s R30 billion export revenue.
“Over the last year, we’ve seen markets being affected by increased protocols, hampering oranges and export revenue … we have similar concerns about citrus black spot (disease),” Marlene Louw, senior agricultural economist at Absa said.
She added that with fertiliser and chemical costs having risen significantly over the past year, farmers’ spraying programmes may be compromised, increasing the likelihood of a higher prevalence of citrus black spot, which will affect long-term access to the European market.
The industry suffered a blow last year, when the EU’s Standing Committee on Plants, Animals, Food and Feed voted in a new requirement which forces southern African countries, including South Africa, to implement extreme cold treatment to tackle false codling moth (FCM).
If EU authorities continue to enforce the cold-treatment laws, South Africa’s citrus industry looks to incur hundreds of millions of rand in additional costs.
Nigeria Loses $1bn Annually to Non-certification of Agri-produce for Export (THISDAY)
Nigeria has failed to benefit from multibillion-dollar agricultural items exported from West Africa due to non-certification of its farm produce such as yam, mangoes, shrimps, garlic, ginger and others.
Industry stakeholder and Director, Operations, Cargolux Airlines, Kingsley Nwokoma, told THISDAY that because Nigeria does not have the certifications for farm produce it is losing huge revenue in foreign exchange projected to be over $1 billion per annum.
“Most of the superstores in Europe have started selling most African farm produce and before they will buy your produce the must make sure you meet their safety conditions. We have what they call traceability. They follow you to your farm and make sure you abide by the stringent conditions to ensure that what you produce meet their health standard. This is because if anyone comes to their stores and buys those produce and get killed they will be sued and they pay huge compensations. So the food is traced to the farms. The superstores know the fertilizer you must use and they will follow you up to harvest. Unfortunately, we lack this process,” Nwokoma who is also the President of the Association of Foreign Airlines and Representatives in Nigeria (AFRAN), said.
Nigeria: Pantami inaugurates Digital Economy Community of Practice (Daily Post Nigeria)
Minister of Communication, Isa Ali Pantami on Thursday inaugurated a Digital Economy Community of Practice, DECoP.
The inauguration was done in conjunction with the Policy Innovation Centre (PIC) of the Nigerian Economic Summit Group (NESG) in Abuja.
Speaking at the event, the minister said that the digital economy centre has been doing well building and consolidating Nigeria’s economy.
He also used the opportunity to point out that the rejection of the 5% excise duty was necessary to avoid jeopardising the growth and development the sector has recorded.
Uganda: Govt turns to commercial representatives to boost trade (Monitor)
Trade representatives nominated by government in different parts of the world must get involved in gathering market intelligence to support exporters, Uganda National Bureau of Standards has said.
Speaking during the Trade Representatives’ Forum in Kampala yesterday, Mr David Livingstone Ebiru, the Uganda National Bureau of Standards (UNBS) executive director, said for a long time Ugandan exporters have been trading blindly without having in-depth knowledge of markets they trade in, which makes many of them fail to meet standards and specifications of consumers.
Therefore, he said: “Going forward our trade representatives must be able to participate in doing market research, so that they give us information”, especially in the area of standards and other requirements for Ugandans to trade comfortably.
Morocco among attractive countries for diversification of value chains, WTO DG (Hespress English)
Director-General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, said Wednesday that she considers Morocco among the attractive countries for the diversification of value chains.
Speaking at the Annual Conference on Economic Policy of the National Association for Business Economists, she recommended the use of diversified supply chains, instead of focusing on the relocation of industries.
“World Trade Organization members should diversify their supply chains to business-friendly developing countries that have not fully enjoyed the benefits of global trade,” she stressed, noting that this would help improve global public perception of trade and reduce the need for countries to use subsidies to encourage relocation.
The geographic location of Mozambique is attractive for international movement of people and goods but exerts pressure on all entities operating at borders. This therefore calls for effective and efficient coordination between public bodies and the private sector at the borders to improve fiscal control, public security, as well as facilitating trade and migratory transit.
This was said by Mr. Fernando Alage, Deputy Director General of Customs, Mozambique Revenue Authority, when he opened a workshop on the country’s Coordinated Border Management (CBM) National Strategy held in Maputo from 27th March to 30th March 2023. The workshop was aimed to enhance coordination and cooperation among Government ministries, departments and agencies, as well as representatives of private sector organisations that have a role in facilitating cross-border trade and the clearance of travelers.
At the end of the workshop, the Southern African Development Community (SADC) Secretariat handed over the CBM National Strategy document to Mozambique, which became the first SADC Member State to develop the strategy which is supported by the European Union (EU)-funded Trade Facilitation Programme (TFP) and is implemented by the Secretariat. The TFP seeks to ensure that trade flows within SADC Region and with the outside world are increased along the North-South Corridor NSC, supports the implementation of the World Trade Organisation Trade Facilitation Agreement and the SADC CBM Guidelines on selected border posts along the corridor.
US promises more support for Tanzania’s development (The Citizen)
Dar es Salaam. Impressed by widening democratic space in Tanzania, the US yesterday pledged to support long-term economic development in the country.
US Vice President Kamala Harris said in Dar es Salaam that Washington was looking forward to fostering bilateral relations with Tanzania in key areas such as economic growth, good governance and democracy, mitigation of the impact of climate change, as well as regional and global integration.
In support of bilateral engagement between the two countries, the US intends to provide $560 million (sh1.3 trillion) in assistance in the 2023/24 financial year.
Free movement deemed essential to trade (China Daily)
African countries have been called upon to promote the free movement of people across their borders to boost intra-African trade, especially at this critical moment in the implementation of the Africa Continental Free Trade Area.
While concluding a two-day review of a report by the African Union Commission on Wednesday in Kenya's capital Nairobi, experts asked African countries to ratify the Free Movement of Persons Protocol adopted by AU member states in 2018.
While giving his comments on the AU's Policy Report, titled "The Free Movement of Persons for Trade: Towards an Accelerated Ratification of the AU Free Movement of Persons Protocol in Support of the implementation of the AfCFTA", Stephen Karingi, a director at the UN Economic Commission for Africa, said the slow ratification of the protocol can be attributed to a lack of appreciation of the benefits of free movement of persons, lack of awareness of the protocol and lack of political will.
Africa striving for local currency usage in continental trade (China.org)
The African Continental Free Trade Area (AfCFTA) is striving for the usage of local currencies in trade among countries in the continent, an official said Thursday.
Cross-border trading among countries in the Economic Community of West African States is already happening through the use of local currencies instead of the use of U.S. dollars, said Wamkele Mene, secretary general of the AfCFTA Secretariat, on the sidelines of a trade forum in the Kenyan capital of Nairobi.
"We now want to expand to other regional blocs including the East African Community which is in talks with the African Export-Import Bank," Mene said.
Russia – South Africa Bilateral Trade Up 16.4% In 2022 (Russia Briefing)
Bilateral trade between Russia and South Africa, both BRICS nations, was up 16.4% in 2022 compared to the previous year and reached US$ 1.3 billion, Russian Natural Resources Minister Alexander Kozlov said during a meeting of the Russia-South Africa Intergovernmental Commission.
The potential for cooperation between the countries is much greater and there are underlying conditions for boosting trade volumes, Kozlov said.
“Undoubtedly, the unprecedented sanctions against Russia have a negative impact on opportunities for trade growth. Under these conditions, it is necessary to come up with new forms of cooperation in the financial sector. I expect that in the very near future we will be able to carry out practical work in this direction and build an effective system of settlements,” the minister said. The BRICS has been working on developing a BRICS currency trade basket made up of their own currencies.
India unveils 'dynamic' foreign trade policy, eyes USD 2 trillion exports by 2030 (VarthaBharati)
New Delhi (PTI): India on Friday came out with a 'dynamic and responsive' foreign trade policy with the objective of raising the country's outward shipments to USD 2 trillion by 2030, making Indian Rupee a global currency and incentivising e-commerce exports.
The approach of Foreign Trade Policy (FTP) 2023 is to move from 'incentive to remission' based regime; encourage collaboration between exporters, states, districts and Indian Missions; reduce transaction cost; and develop more export hubs.
India is likely to cross USD 765 billion merchandise and services exports in financial year 2022-23 which ends on Friday. The total exports were USD 676 billion in previous fiscal year.
Unlike the practice of 5-year FTPs, this time the government has come out with a dynamic and responsive trade policy without any end date, and will be updated as per the emerging global scenario.
Public Forum 2023 to examine how trade can contribute to a greener, more sustainable future (World Trade Organization)
The WTO’s annual Public Forum, to be held from 12 to 15 September 2023, will focus this year on how trade can contribute to a greener, more sustainable future. The Forum will examine in particular how the services sector, digitalisation and inclusive trade policies can support global environmental goals and help combat the climate crisis.
Titled “It is Time for Action”, the Public Forum will cover three main topics: “The role of the services sector in sustainable trade,” “Inclusive policies for the advancement of green trade,” and “Digitalisation as a tool for the greening of supply chains.”
Sessions at the Public Forum are organised by representatives from civil society, academia, business, government and international organisations. A call for proposals and registration are due to open in early May 2023.
UK strikes biggest trade deal since Brexit to join major free trade bloc in Indo-Pacific (Gov.uk)
The UK will join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a vast free trade area of 11 countries spanning the Indo-Pacific, the Prime Minister has announced today [Friday 31March].
The historic agreement follows two years of intense negotiations by the Department for Business and Trade and puts the UK at the heart of a dynamic group of economies, as the first European member and first new member since CPTPP was created. We would not have been able to join as a member of the EU, demonstrating how the UK is seizing the opportunities of our new post-Brexit trade freedoms to drive jobs and growth across the country.
The bloc is home to more 500 million people and will be worth 15% of global GDP once the UK joins. It is estimated that joining will boost the UK economy by £1.8 billion in the long run, with wages also forecast to rise by £800 million compared to 2019 levels.
Piyush Goyal asks G20 members to find common solutions to gaps in global trade (The Hindu)
Union Commerce & Industry Minister Piyush Goyal on Thursday urged G20 member countries to find common solutions to address gaps in the global trading system. He was speaking at the closing of the three-day 1st G20 Trade and Investment Working Group (TIWG) meeting which was held in Mumbai.
“TIWG has an important role in formulating concrete outcomes for inclusive growth that drive trade and investment across [the] Global South, and not among G20 member countries only,” Mr Goyal said.
Advocating for equitable distribution of the benefits of global trade by and among all countries, including developing and least-developed countries (LDCs), he said there must be progress towards a new world that is driven by collaboration, sustainable growth and a solutions-oriented mindset.
EU reaffirms commitment to supporting Bangladesh after LDC graduation (Dhaka Tribune)
Bangladesh highlighted how it has rightly utilized the EU's EBA trade facility, which has directly contributed to socioeconomic development and transformed the lives of millions
The European Union (EU) has reiterated its commitment to supporting Bangladesh for a sustainable and smooth transition in its graduation from the least-developed country (LDC) status.
Expressing the view during meetings held in Brussels on Wednesday, the members of the European Parliament and senior officials of the European Commission commended Bangladesh on its development trajectory and reiterated the EU's commitment to supporting Bangladesh for a sustainable and smooth transition in its LDC graduation, reads a press release issued Thursday.
ADB says ASEAN must act if strengthen position in global value chains (Khmer Times)
Association of Southeast Asian Nations (ASEAN) economies must strengthen their positions in global value chains to bolster resilience against new challenges, including future pandemics, geopolitical instability, and climate change, says an Asian Development Bank (ADB) report released on Thursday.
The report ASEAN and Global Value Chains: Locking in Resilience and Sustainability surveys the challenges and opportunities facing global value chains in Southeast
Asia as countries seek to build greater resilience and promote sustainability and green development, according to Xinhua “As ASEAN countries continue their recovery from COVID-19, we must ensure that economic revitalisation happens in a greener and more sustainable way,” ADB.
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Technology Commercialisation is Capable of Driving Economic Transformation (the dtic)
The use of technology commercialisation can contribute to economic transformation through the introduction of diverse new products and services in the market. This can ultimately result in the creation of new products, as well as the establishment of new businesses and industries which can serve as a base for a full-scale localisation and industrialisation.
This was said by the Deputy Minister of Trade, Industry and Competition at the Fourth Intellectual Property and Technology Commercialisation Colloquium
held at the North-West University, Mahikeng campus from 28-29 March 2023, under the theme Advancing Innovation through IP Commercialisation for Full-scale Industrialisation.
According to Deputy Minister Majola, a well-designed and well-performing intellectual property regime can improve the innovative capacity and competitiveness of the economy. Importantly, he said South Africa needs to embrace the Fourth Industrial Revolution as part of the ongoing economic recovery plan and to advance the industrialisation agenda.
Furniture Master Plan Will Deepen Localisation, Boost Competitiveness - DDG Zalk (the dtic)
The Acting Deputy Director-General of Industrial Competitiveness and Growth at the Department of Trade, Industry and Competition (the dtic), Dr Nimrod Zalk says the furniture industry master plan will go a long way in strengthening localisation and enhancing the competitiveness of the industry. Zalk was speaking at the prize-giving ceremony of the National Furniture Design Competition at the Buy Local Summit in Sandton.
“The furniture sector is amongst those that are prioritised by business, labour and government as being able to contribute significantly to employment growth, in particular. Collectively we have been working on a furniture industry master plan that will strengthen and deepen localisation of furniture production in the short term, and lead to greater international competitiveness in the medium term,” said Zalk.
Energy Action Plan makes progress (SAnews)
Mineral Resources and Energy Minister, Gwede Mantashe, says the Energy Action Plan (EAP) that government has implemented to address the electricity crisis is beginning to make progress. Mantashe was addressing the North West Mining and Energy Investment Conference on Thursday.
Mantashe said government is committed to resolving the country’s energy challenges guided by the optimal energy mix envisioned in the Integrated Resources Plan (IRP) 2019 and - as envisioned in the EAP - to improve the performance of existing Eskom power stations.
Mineral Resources and Energy Minister, Gwede Mantashe, says the Energy Action Plan (EAP) that government has implemented to address the electricity crisis is beginning to make progress.
Cabinet approves Bill to open power market (Engineering News)
Cabinet approved a Bill on electricity regulation designed to clear the path for private generation projects and power trading.
State-owned Eskom Holding has provided more than 90% of electricity used by the most industrialized nation on the continent for a century. The Electricity Regulation Amendment Bill outlines an entity to buy power as a step toward establishing a competitive market.
The bill will strengthen the role of the National Energy Regulator of South Africa and allow measures to create a transmission system operator that includes the “provision of an electricity trading platform on a multi-market basis, and provide access to the transmission network on a non-discriminatory basis,” Ntshavheni said in a statement.
South Africa’s overall trade with its BRICS partners has increased since 2017 (IOL)
Professor Anil Sooklal, Ambassador-at-Large for Asia and BRICS during an online engagement with business during the BRICS economic indaba on Thursday, said the purpose of the gathering was to solicit the support of, and galvanise, South African business behind the BRICS Programme of Work.
South Africa took over as chair of BRICS on January 1 under the theme “BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development and Inclusive Multilateralism”, in what was described as a difficult national and global economic environment.
“It is crucial to inspire and cement the participation of all sectors of business behind our 2023 Agenda. SA BRICS chairship provides business with the unique and valuable opportunity to sustainably advance the economic and developmental needs of both our economy and that of the rest of the African continent,” Sooklal said.
Kenyan agricultural firms get $5m grants from US agencies (The East African)
Seven budding Kenyan companies operating in the agricultural sector have received a $5.1 million grant from the United States to expand their business activities while working towards addressing the country’s food insecurity challenges.
The United States Agency for International Development (USAID), in partnership with the US government’s trade promoter, Prosper Africa, and Feed the Future Initiative announced the grants on the side-lines of the American Chamber of Commerce (AmCham) business summit in Nairobi Wednesday.
The agencies said the grants to the private companies will “support access to agricultural inputs and production technologies while expanding Kenyan value-added processing and the export of products like macadamia nuts and dried fruit”, as well as boost incomes for over 1 million Kenyan farmers.
“This comes at a time when many of these farmers are faced with recurrent drought and significant price increases especially in essential commodities that has been driven by Russia’s invasion of Ukraine,” said USAID’s mission director for Kenya David Gosney.
Kenya’s special economic zones get own power rate (Business Daily)
Investors domiciled in the 15 special economic zones will from this Saturday start paying a special tariff of Sh10 per kilowatt hour as the energy regulator moves to harmonise rates and entice more firms to set up in the tax-free regions. These are part of the new electricity tariffs that the Energy and Petroleum Regulatory Authority (Epra) approved last week.
Epra says apart from investors at Naivasha’s Kedong SEZ, which are currently enjoying Sh5 per unit tariff, all the other special economic zones will now have a uniform tariff from this weekend.
Parliament passes Local Content Bill, gives priority to EAC goods (New Vision)
Parliament has passed the Local Content Bill 2022 into law, giving priority to goods and services produced in the East African Community (EAC) as opposed to only goods produced in Uganda.
The bill, which was first introduced in the 9th Parliament, has been returned to the House for reconsideration by President Yoweri Museveni over its contradiction with various EAC trade protocols, such as the Common Market Protocol, which provides for the elimination of trade barriers.
Museveni returned the bill to Parliament for a second time and raised concern over sections that he deemed to conflict with the spirit of the East African Community Protocol on the free movement of goods and services.
Chaired by Speaker Among, the House on Wednesday passed the Bill after adopting most of the recommendations as advised by the President.
TZ-US TRADE: Envoy touts mutual benefits (Daily News)
NEWLY appointed American Ambassador to Tanzania, Mr Michael Battle, has listed his top priorities for promoting trade and investment between the two countries during his tenure in office.
According to him, all US ambassadors are responsible for maintaining close ties between Tanzania and the US government, including strengthening good relations that have existed since the era of Mwalimu Julius Nyerere in 1960s.
For a long time, the envoy said the US relationship with Africa has been a relationship of donor and giving aid. “We are still the largest private donor to Tanzania in terms of the amount of money we spend in healthcare and development and we think that is important,” he said.
Dr Battle said there was also a shift that began with President Barack Obama who said the US relationship with Africa must be one of strategic partnership where there is mutual growth and development. “So, then the notion of trade and investment began to be more prominent, ‘Prosper Africa’ was part of that notion that in order for Africa to take off with its own industrial revolution it has to have the electrical grid to make it possible,” he explained.
He says that the Biden administration has reverted to the idea that trade and investments are the defining characteristics.
Rwanda’s exports revenue grows, trade deficit widens (The New Times)
Rwanda’s export value increased by 33.2 percent in 2022, mainly driven by commodity prices and strong domestic manufacturing activities exported in the region.
The overall export receipt amounted to $1,555.6 million, up from $1,167.8 million in 2021.
This was announced on March 29, during the presentation of the Monetary Policy and Financial Stability Statement by the Central Bank that assessed the economic performance in 2022 and prospects for 2023.
John Rwangombwa, Central Bank Governor, said the growth is attributed to the increase in manufactured goods exported in the region and generally good commodity prices on international markets.
Traditional exports such as minerals, coffee and tea registered a 27.7 percent growth while non-traditional exports (manufactured products and horticulture) increased by 26.8 percent and re-exports by 39.3 percent.
The Prime Minister of the Republic of Mauritius, Honourable Pravind Kumar Jugnauth, has called for the implementation of more joint projects to ease connectivity and enhance intra-regional trade among Member States of the Southern African Development Community (SADC).
The Prime Minister made the call when he received a courtesy from the Executive Secretary of SADC, His Excellency Mr. Elias M Magosi, at the New Treasury Building in Port Louis, Mauritius, on 27th March 2023.
Hon. Jugnauth said there was a huge potential and opportunities for economic growth and industrialisation in SADC, because the community has abundant natural resources and raw materials. He added that, what the region needed was more collaboration and joint projects to make connectivity easy, facilitate intra-regional trade, and reduce the cost of doing business.
H.E. Magosi sighted the SADC Regional Development Fund (RDF), which was proposed nearly a decade ago, as a self-financing and revolving mechanism intended to end reliance on external support, as well as leverage private sector funding to drive the region’s development agenda as a key instrument that needed signatures. The agreement to operationalise the fund has been signed by only nine Member States, and none of them, has deposited instruments of ratification with the SADC Secretariat. With the RDF in place, the region will be able to determine the type and scale of tangible projects and programmes to make positive impact on the lives of the citizens of the SADC region.
Banks to set up 20m capital to boost innovative market (Vanguard)
The President, Chartered Institute of Bankers of Nigeria, CIBN, Mr. Ken Opara, said the banking industry is setting up a $20 million human capital fund to groom and nurture financial innovation in the industry.
Speaking yesterday at the CIBN 2023 annual lecture themed: ‘Unlocking the constraints to Africa’s economic transformation: Insights into the power of capital’ held in Lagos, Opara said: “The banking industry is setting up a $20 million human capital fund for the purpose of grooming and nurturing a pool of financial innovative market ready workforce for the Nigerian Banking Industry.
Indian delegation explores investment opportunities in S Africa, Botswana (Business Standard)
A multi-product Indian business delegation on a five-day visit to South Africa and neighbouring Botswana has been well-received by potential partners for trade and investment in both countries, the delegation leader said on Wednesday.
Under the theme Balancing and Nurturing Trade Relations and Developing Promising Bilateral Trade, day-long seminars including local speakers were co-hosted by FIEO and the Indian missions in Johannesburg and Gaborone, followed by Business-Business meetings and interactions with government ministers and officials.
The African region has always been a very attractive market due to the huge market potential, so the delegation was aimed at exploring the opportunities from this very lucrative continent, Khan said.
African free trade area lets youth to take control of their destiny, Secretary General says (World Bank Blog)
A fragmented internal market has long hampered trade among African nations. That has prevented the continent from fully sharing in the economic benefits of international trade, which has helped raised more than a billion people worldwide out of poverty in recent decades. But the African Continental Free Trade Area (AfCFTA) promises to be a game changer. It would create a single market that unites 54 countries with a combined population of 1.3 billion and GDP of $3.4 trillion. It promises to boost intra-African trade and investment by reducing tariffs and other barriers and harmonizing regulations in areas such as e-commerce and intellectual property rights. African business leaders are scheduled to gather in Cape Town April 16-19 to discuss the benefits of the agreement for the private sector. In advance of that meeting, we are publishing this edited transcript of a conversation with Wamkele Mene, secretary general of the AfCFTA, who visited the World Bank late last year:
Q: What can be done to ensure that inequality among countries in Africa doesn’t widen as a consequence of the agreement? A: We have countries in the AfCFTA with GDP per capita of $110, and then at the other extreme, GDP per capital of $25,000. We have countries that are relatively industrialized, and we have countries that import everything, including basic agricultural products. There are countries who are going to benefit immediately, because they have the export capacity. So how do we get those countries who today may not have industrial capacity to believe that they will benefit, too, and to see the results? Otherwise politically it will become unsustainable for them to remain in a free trade area where only the largest economies are benefiting. That’s why we have gone to [the African Export Import] Bank, and we have said, “There is this problem that some countries are overly reliant on tariffs as revenue generation tools, how do we mitigate their condition? ” So, Afreximbank has made available a facility which will be up to $10 billion. Thus far, there is about $1.2 billion that has been mobilized to assist countries to mitigate the cost of adjusting to the AfCFTA.
Africa’s 2030 Universal Electricity Access Goal: “Clock running out,” says Adesina in Berlin (AfDB)
African Development Bank Group President Dr Akinwumi Adesina has told a high-level international conference in Berlin that urgent action is needed to reduce the world’s dependence on fossil fuels and harness Africa’s renewable energy sources.
Making his remarks at the Berlin Energy Transition Dialogue, hosted by the German federal government, Adesina called on Germany to invest in a cleaner, brighter, and more prosperous future for Africa. While underscoring Africa’s success enormous potential to become a global leader in sustainable development, Adesina highlighted the significant energy challenges millions of Africans still face. In 2022, at least 600 million people did not have access to electricity, and 970 million lacked access to clean energy for cooking.
Adesina said in order to achieve the United Nations Sustainable Development Goal 7 of affordable, reliable, sustainable and modern energy for all, the continent must connect 90 million people annually to electricity by 2030 and shift 130 million people from dirty cooking fuels each year. He acknowledged the scale of the challenge, noting that Africa’s energy transition would require an estimated $100 billion annually between 2020 and 2040.
Adesina said Africa’s significant reserves of cobalt, manganese, and platinum could be utilised to build a robust manufacturing sector rather than being merely exported as raw materials.
Kenya, Congo and Chad Accede to Afreximbank’s Fund for Export Development in Africa (FEDA) Establishment Agreement (Afreximbank)
The Republics of Kenya, Congo and Chad are the latest signatories to the Establishment Agreement of the Fund for Export Development in Africa (FEDA), the development impact-oriented subsidiary of African Export-Import Bank (Afreximbank).
These successive accessions provide positive momentum for FEDA and demonstrate a shared commitment from Afreximbank Member Countries to support the organization’s impact investing objectives. It creates a powerful catalyst to increase equity and equity-like funding for African companies that promote industrialization, Intra-Africa trade and value-added export development.
Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank and FEDA, said: “The accession to the FEDA Establishment Agreement by the Republic of Kenya, the Republic of Congo and the Republic of Chad are important steps that are expected to catalyse more investment by FEDA towards these countries’ industrialization and value-add export development. We are delighted to onboard these new Member Countries and we look forward to mobilizing other Afreximbank Member States in due time to support FEDA’s pan-African expansion.”
Speech by David Malpass, President of the World Bank Group Delivered in Niamey on March 30, 2023 (World Bank)
Over the last few years, the world has faced an unprecedented series of crises.
The COVID-19 pandemic cost millions of lives, caused massive job losses, and disrupted supply chains. It led to the loss of more than one full year of education for one billion children around the world, which underscores the urgency of a strong recovery in education. The pandemic also triggered extraordinary policy responses, with macroeconomic consequences still being felt. Inflation soared with governments providing massive fiscal and monetary support to counter the pandemic, especially in the advanced economies. The war in Ukraine triggered outright shortages of fuel, food, and fertilizer. Natural disasters struck hard too – from earthquakes in Türkiye and Syria to floods across South Asia and catastrophic drought in East Africa.
Developing countries have suffered the most from this onslaught of crises. The pandemic increased the global extreme poverty rate from 8.4 to 9.3 percent, the first recorded increase since we started keeping count. The true death toll remains unknown in many parts of the world. Now, a growing number of developing countries are facing the prospect of major domestic crises, with economic growth slowing, poverty and hunger on the rise, public debts reaching unsustainable levels amid rising interest rates, ineffective mechanisms for resolving external debt distress, underinvestment, and growing populations.
Confronted by these developments, we have the responsibility to forcefully reassert core economic principles for development in every country.
AfCFTA to increase the volume of Intra African trade to over 40% by 2045 (New Vision)
The implementation of the African Continental Free Trade Area (AfCFTA) is likely to increase the volume of intra-African trade to over 40% by 2045. This was revealed by Hermogene Nsegimana, the Secretary General of the African Regional Standards Organization (ARSO), during the training of African Experts Responsible for Standards Development and Harmonization Required to Facilitate Intra-Africa Trade Under the Africa Continental Free Trade Area.
David Livingstone Ebiru, the UNBS Executive Director said, the capacity building of experts is aimed at responding to the increasing demand for African Countries to increase the volume of trade among themselves, which is currently standing at 16%.
Odrek Rwabwogo, the Senior Presidential Advisor of Exports and Industrial Development urged the standards’ experts to preserve African heritage and culture by prioritizing indigenous standards for African Organic Products.
Single air transport market could add impetus to lagging recovery of African carriers (Engineering News)
The post-Covid-19-pandemic recovery of the African airline industry is lagging behind that of other regions of the world, but it is recovering, International Air Transport Association (IATA) External Affairs & Sustainability: Africa & Middle East regional business development manager Sandile Chipunza pointed out at the recent Board of Airline Representatives of South Africa (BARSA) conference, in Cape Town.
African airlines’ annual traffic last year was up 89% on that for 2021, and reached 86% of the levels recorded before the pandemic, he reported. The continent’s airlines registered total losses of $638- million last year, which were forecast to decline by 66% this year, resulting in total losses of $213-million for 2023.
However, IATA forecasts that, globally, the airline industry will make a profit of $4.7-billion this year, from total revenues of $779-billion. Last year, worldwide, the sector recorded a loss of $6.9-billion. Over the period of the pandemic, airlines globally suffered total losses of $42-billion.
Returning to Africa, the continent’s airlines last year also registered a 51% increase in capacity, compared with 2021. Their average load factor rose to 71.7%, but this was the lowest figure for any of IATA’s regions. “[W]e know each [African] sub- region moves at its own pace, reflecting its unique advantages and obstacles,” he cautioned. “Some have seen demand return faster than others.”
South Africa to use Brics chair in 2023 to advance Africa’s trade, development (Engineering News)
South Africa will use its position as the 2023 chair of the Brazil, Russia, India, China and South Africa (Brics) multilateral bloc to advance the interests of African States, under the theme of ‘Brics and Africa partnership for mutually accelerated growth, sustainable development and multilateralism’.
Trade, Industry and Competition Minister Ebrahim Patel, during a South Africa Brics Business Council working groups briefing on March 30, said South Africa exported a significant quantity of goods to other African countries and this was where its largest potential for growth lay.
The volumes and value of trade between South Africa and other Brics countries were significant. However, much of the exports were simply to supply raw materials, particularly minerals, to these economies, he highlighted.
In addition to precious metals, the primary products exported are coal, iron-ore, manganese and chromium, as well as some semi-manufactured goods. Mining products dominate the export basket to South Africa‘s Brics partners.
China’s Investment In Africa Has Cut Need For Loans From World Bank, IMF—Osinbajo (Business Post Nigeria)
The Vice President of Nigeria, Mr Yemi Osinbajo, has lauded China’s investment in Africa, saying it has reduced dependency on loans from Bretton Woods, which consists of the World Bank and the International Monetary Fund (IMF).
In a statement seen by Business Post, the VP, at an event at King’s College London on March 27, 2023, stated that “China shows up where and when the West will not and or are reluctant.”
He said this was evident in the investment of the Asian giant in Africa, which he said stood at $254 billion in 2021, about four times the volume of US-Africa trade.
He also noted that, “China is the largest provider of foreign direct investment, supporting hundreds of thousands of African jobs. This is roughly double the level of U.S. foreign direct investment, adding that, “China remains by far the largest lender to African countries.”
Developing countries cannot afford to miss out on the green tech revolution (UNCTAD)
One of the main takeaways of UNCTAD’s Technology and Innovation Report 2023 is that national governments and the international community must act now to avoid leaving developing countries out of the green technological revolution that is quickly unfolding. Green technologies are those related to the production of goods and services with lower carbon footprints.
The markets of green technologies have been expanding at unequal rates throughout the world, with disadvantages for developing countries. One example is the exports of green technologies related to renewables and electric vehicles. Between 2018 and 2021, developing countries’ exports grew by about 32% only, from $57 billion to $75 billion, while those of developed economies more than doubled, $60 billion to $156 billion.
Worryingly, developing countries lag in more than trade. They hardly feature in the list of top suppliers of frontier technologies and sources of patents and publications. Except China.
Gender equality and women’s empowerment in Botswana has progressed over the past 20 years with Botswana having made significant strides toward equal treatment of women under the law, reveals the latest edition of the 2023 Women, Business and the Law (WBL) report. These findings and the report were discussed in a workshop this week convened by the World Bank in collaboration with the Government of Botswana, through the Ministry of Youth, Gender, Sport and Culture to commemorate International Women’s Day.
“Since the early 2000s, the average Women, Business and the Law score for Botswana has improved by more than 25 points, rising from 38.1 to 63.8,” says Marie Francoise Marie-Nelly, World Bank Country Director for Eswatini, Botswana, Lesotho, Namibia, and South Africa. “Despite this progress, the latest edition of the report shows that the pace of legal reforms toward gender equality has slowed down in recent years, constituting a potential impediment to economic growth. More needs to be done to increase legal equality of opportunity for women around the world and in Botswana.”
Least-developed countries share experiences on trade in essential goods to fight COVID-19 (WTO)
Bangladesh, Cambodia, Lao People’s Democratic Republic, Lesotho, Myanmar, Niger, Togo and Zambia shared their practices and experiences on trade in COVID-19 related goods. Other speakers from developing and least-developed countries also took the floor. They noted that the pandemic severely impacted LDCs, particularly as a result of disruptions in global supply chains of essential goods and their heavy dependency on imports of food and health-related items.
The pandemic affected LDCs’ trade not only by slowing down trade across borders and changing patterns in trade in services but also by disrupting administrative processes and access to finance.
LDC representatives highlighted the need to enhance global dialogue and cooperation when it comes to emergencies and in areas of relevance to digitalization, development and access to finance. Regarding imposing trade restrictions at times of crisis, they reinforced the message that such measures should be targeted, proportionate and temporary, and that special consideration and flexibility should be extended to LDCs not only to help them deal with the crisis but also recover from the crisis.
Members consider five trade agreements, discuss how to improve functioning of Committee (WTO)
The Committee also considered the Economic Partnership Agreement (EPA) between the ESA States and the UK, Goods. The Agreement entered into force on 1 January 2021 for the UK, Mauritius, Seychelles and Zimbabwe. Madagascar and Comoros have also signed the Agreement but have not yet put it into force under their domestic legislation. In a joint statement, the four current parties to the Agreement said the EPA provides continuity and certainty for ESA and British businesses following the UK’s withdrawal from the European Union. Overall trade was worth GBP 1.1 billion pounds in 2022 and all parties are keen to see further growth.
The Agreement is development orientated with asymmetrical tariff liberalization commitments, providing duty-free, quota-free market access for goods originating in ESA States in the UK market. The Agreement also provides for generous rules of origin to allow more ESA products to qualify for preferential tariffs. On the other hand, ESA States will progressively and gradually liberalise their tariffs over a number of decades for goods originating from the UK.
The EPA also allows ESA States to maintain regional preferences to other African countries and regions without having them extended to the UK. The UK is also required to extend to ESA States any more favorable treatment resulting from a future trade agreement with a third party.
Volatile commodity prices reduce growth and amplify swings in inflation (IMF)
Food and energy prices surged to near historic highs in recent years amid the pandemic and the war in Ukraine, which prompted major supply disruptions. This was accompanied by a sharp rise in the volatility of commodity prices as well.
Worryingly, the up-and-down swings in commodity prices will likely pose economic challenges in coming years. We explore the effects of volatile commodity prices in a new report on food and energy insecurity that was prepared for the Group of Twenty.
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Buying local critical to economic growth - DP Mashatile (SAnews)
Deputy President Paul Mashatile says buying locally made products and supporting the small businesses which produce them can lead to much needed boost in local economies and stimulate national economic growth.
The Deputy President was addressing the Localisation Gala Dinner of Proudly South African’s Buy Local Summit and Expo held in Sandton on Tuesday.
“This is because every local transaction has a ripple effect that extends beyond our comprehension. By purchasing locally produced food and other goods, consumers support their local economy, families, communities, and promote the culture of entrepreneurship.
“Moreover, supporting local businesses can stimulate the local economy, since it redirects funds back into the community rather than into the coffers of ambiguous national chains and corporations,” he said.
“We cannot have economic growth without localisation. [A] study commissioned by Proudly SA and done by Dr Iraj Abedian’s PAIRS outfit, confirms the link between localisation and economic growth and the different steps that the private and public sectors need to take in this area.
“Some of the most important things in the report are the positive effects of domestic manufacturing investment on the GDP, fiscal revenue, real wages, and consumer inflation. Moreover, the report showed that the SA economy could benefit from an increase of just 10 percent in investment spending in the manufacturing sector,” he said.
Report highlights costs of South Africa’s ‘opaque and lethargic’ tariff investigations (Engineering News)
A new report into ongoing tariff investigations in South Africa indicates that it is taking an average of 22 months to finalise decisions on whether to either increase or remove an import duty, weakening the effectiveness of trade policy to either protect domestic producers or lower costs for consumers.
Compiled by XA Global Trade Advisors, the report states that 90% of the 39 cases that had been lodged with the International Trade Administration Commission of South Africa (Itac) by December 31 last year were overdue when measured against the six-month timeframe recommended by the Department of Trade, Industry and Competition (DTIC) for the resolution of such probes.
CEO Donald MacKay notes that 22 of those cases, representing 56% of all open cases, were overdue by more than 19 months, with two cases more than 43 months overdue.
“It is impossible to manage trade in such a lethargic system. What applied in 2019 is very different to the real-world scenario in 2023 and trade decisions need to be based on the now, not the past,” MacKay asserts.
Kenya re-opens its doors for return of Uganda’s Lato milk (The East African)
Kenya has allowed Uganda’s Lato milk to invest in local dairy factories as the state ramps up competition in the dairy sector which government officials have constantly complained is dominated by one player.
Trade and Investments Cabinet Secretary Moses Kuria Tuesday held bilateral talks with Uganda’s Treasury Permanent Secretary Ramadan Ggoobi where the two countries promised to work together to boost their respective dairy sectors.
The ministry said that Lato, a leading milk processor in Uganda which had significantly penetrated the Kenyan market, has signed a deal with the state-owned financier Kenya Development Corporation (KDC) to invest jointly in dairy ventures.
“The meeting focused on mutual economic and investment objectives by the two countries as a follow-up to the various bilateral meetings between to facilitate regional co-investment opportunities in strategic sectors,” said Mr Kuria.
He said Lato will invest in Kenyan milk factories that are currently struggling in a bid to revive them in what will see the Ugandan firm take the fight for control of the lucrative milk sector to the doorstep of some well-known local dairy brands.
Kenya’s trade surplus with Africa up fastest in 6 years (Business Daily)
Kenya’s trade surplus with Africa has risen at the fastest pace in six years, boosting the government’s renewed push for the integration of trading blocs on the continent. The gap between exports and imports widened to Sh88.3 billion last year from Sh80.49 billion the year before, marking the highest value since 2016 when it hit Sh94.41 billion.
Provisional data by the Central Bank of Kenya shows that traders earned Sh355.43 billion from exports to African countries in 2022 against an expenditure of Sh267.13 billion.
This has come at a time President William Ruto has directed Trade Cabinet Secretary Moses Kuria to take a proactive role in lobbying countries in eastern, central and southern Africa to sign and ratify a proposed tripartite agreement.
Steps to establish Ghana’s Integrated Aluminium Industry on course – Lands Minister (MyJoyOnline.com)
The Minister for Lands and Natural Resources, Samuel A. Jinapor, says Government’s quest to build an integrated aluminium industry in the country is on course and progressing steadily.
He said this is in line with the Ghana Integrated Aluminium Development Corporation Act, 2018 (Act 976), which establishes the Ghana Integrated Aluminium Development Corporation (GIADEC) to promote and develop an integrated aluminium industry in the country.
The Minister said this on Wednesday, 29th March, 2023, when he opened a two-day Workshop on the downstream aluminium industry in Akosombo in the Eastern Region.
The workshop brought together stakeholders in the aluminium industry to deliberate on policy options and implementation plan for the downstream aluminium industry. This follows an extensive research, data collection and technical analysis of best practices across the world carried out by GIADEC and ODI.
Delivering the keynote address at the workshop, Mr. Jinapor emphasised the need to add value to Ghana’s mineral resources to ensure optimal benefit from these resources.He said Government has since 2017 been pursuing this path for all our mineral resources including gold, bauxite, iron ore, lithium and other green minerals.
174 MSMEs Benefit From EU’s PPEs Production Project (Leadership News)
174 Nigerian Micro Small and Medium Enterprises (MSMEs) have been empowered after three years of implementing the European Union funded facility to produce high quality Personal Protective Equipment (PPEs) and health-care related products.
The empowerment programme which was birthed in response to Covid-19 containment measures, aimed to strengthen the capacity of selected local MSMEs/manufacturers across the six geo-political zones to upgrade production processes and adopt World Health Organisation (WHO) standards and technical regulations to meet local demand and export to ECOWAS sub region.
Implemented by four United Nations agencies of Industrial Development Organisation (UNIDO), International Labour Organisation (ILO), UN Women, the WHO, the beneficiaries were assisted and trained in intervention areas of quality management and SOPs, business linkage, production and equipment management, strategic marketing and business planning.
Egypt secures $2.6 bln in development finances for private sector in 2022 (Ahram Online)
The Ministry of International Cooperation noted that the ministry is working on updating and developing strategies for international cooperation and development financing with many development partners for the next three to five years.
The report shows that The OPEC Fund for International Development was the top institution that provided this amount, with a value of $1.21 billion.
The European Bank of Reconstruction and Development (EBRD) followed with $558 million, while the International Finance Corporation (IFC) provided $233 million.
Egypt is currently adopting the State Ownership Policy that charts a map of increasing the private sector share in the local economic activity to 65 percent, up from 30 percent.
Moreover, Egypt has made a clear commitment – under its $3 billion loan deal with the International Monetary Fund – to unlock the potential of the private sector through expanding in state-owned assets sales whether under the government’s IPO programme or through offering them to strategic investors.
Tripartite Council of Ministers Adopt Legal Instruments to Implement the Tripartite Free Trade Area (COMESA)
The Council of Ministers of the Common Market for Eastern and Southern Africa (COMESA), East African Community (EAC) and the Southern African Development Community (SADC) have adopted legal instruments to implement the Tripartite Free Trade Agreement (TFTA) once it enters into force.
In its 5th meeting conducted virtually today, the Ministers adopted six instruments relating to trade and customs, namely the tripartite agreement on movement of businesspersons, annexes on elimination of import duties, trade remedies, rules of origin, dispute settlement mechanism and the TFTA protocol on competition policy.
Further the Council adopted the guidelines, manuals and working procedures developed on rules of origin and technical barriers to trade, which comprise of sanitary and phytosanitary matters and non-tariff barriers.
With the adoption of these trade and transport facilitation instruments, focus now is on the ratification of the TFTA, which is currently short of three Member/Partner States signatures to achieve the 14 threshold to enable it enter into force.
Currently, 22 Tripartite Member/Partner States have signed the Agreement out of which, 11, including, Egypt, Uganda, Kenya, South Africa, Rwanda, Burundi, Botswana, Namibia, Eswatini, Zambia and Zimbabwe have ratified it.
Burundi President officially opens the 3rd Meeting of the 1st Session of the 5th EALA in Bujumbura (EAC)
The Heads of the East African Community (EAC) Organs and Institutions must work hard to address factors that limit or constrain the construction of a larger EAC internal market in order to increase its share in global trade and economy.
This was said by His Excellency Evariste Ndayishimiye, the President of the Republic of Burundi and Chairperson, EAC Heads of Summit, while presiding over the official opening of the 3rd Meeting of the 1st Session of the 5th East African Legislative Assembly (EALA) at the National Assembly Buildings in Bujumbura, Burundi.
While taking note of the low rated visibility of the EAC in the region, the Head of State tasked Members of the EALA to take time to sensitize East Africans, members of the private sector and the civil society regarding the achievements that have so far been made towards achieving the pillars of integration which are the Customs Union, Common Market, the Monetary Union and other steps that will be undertaken to attain political federation.
Powering trade through AfCFTA: A People-driven wholesome development agenda (The East African)
By eliminating barriers to trade in Africa, the African Continental Free Trade Area (AfCFTA) will lift 30 million people from extreme poverty and another 68 million people from moderate poverty.
The successful implementation of the AfCFTA will lead to the creation of more decent jobs, improved welfare and better quality of life for all citizenry, and sustainable development. Beyond the policy transformation and reforms, the AfCFTA seeks to ensure inclusivity of women and youth, including youth in the rural areas, development of small and medium enterprises (SMEs) and overall industrialisation of the Continent.
As at February 2022, eight countries representing the five regions of the continent - Cameroon, Egypt, Ghana, Kenya, Mauritius, Rwanda, Tanzania and Tunisia – participated in the AfCFTA’s Guided Trade Initiative, which seeks to facilitate trade among interested AfCFTA state parties that have met the minimum requirements for trade, under the Agreement. This initiative supports matchmaking businesses and products for export and import between State Parties. The products earmarked to trade under the Initiative include: ceramic tiles; batteries, tea, coffee, processed meat products, corn starch, sugar, pasta, glucose syrup, dried fruits, and sisal fibre, amongst others, in line with the AfCFTA focus on value chain development.
In the year 2023, the AfCFTA Guided Trade shall also focus on Trade in Services in the five priority areas, i.e. Tourism, transport, Business Services; Communication Services, Financial Services, Transport Services, and Tourism and Travel-related Services. The ultimate objective is to ensure that AfCFTA is truly operational and the gains from the initiative are improved implementation in order to achieve increased inter-regional and intra-Africa trade that would yield economic development for the betterment of the continent at large.
The adoption by the African Union of the theme of the Year 2023 as the “Year of AfCFTA: Acceleration of the African Continental Free Trade Area Implementation”, is expected to generate greater political commitment and accelerate the effective implementation of the AfCFTA to fully benefit the African citizenry and achieve the Aspirations and goals of Agenda 2063.
Uganda has lowest share of commercial debt in EAC (Monitor)
Uganda holds the least share of commercial debt in East Africa, according to the Ministry of Finance Status of Uganda’s Debt report.
The report, which highlights different aspects of Uganda’s financing, including sustainability, stock and source of public debt indicates that whereas the share of Uganda’s commercial debt as opposed to bilateral and multilateral debt has been growing, it remains lower compared to other East African member states.
According to the report, during the period ended September 2022, out of $20.33b (Shs76.5 trillion) total stock of public debt, the share of commercial debt stood at 10.4 percent, which was lower than any other East African member state.
Tanzania holds the largest share of commercial debt at 31.8 percent, followed by Kenya, which holds 26.6 percent of its public debt in commercial loans. Rwanda, at 13 percent, is comparably lower than the two countries but higher than Uganda.
However, data indicates that all East African member states have been reducing their share of credit from multilateral and bilateral lenders while increasingly drawing more loans from expensive credit sources such as commercial banks.
Free movement of people, a catalyst for trade (UNECA)
African countries should promote the free movement of people across their borders to boost intra-African trade, says the Economic Commission for Africa (ECA), Director of Regional Integration and Trade Division, Stephen Karingi, calling for the speedy ratification of the Protocol on free movement of people.
The African Union, recognizing the importance of human resource skills to the continent’s development, adopted the Free Movement of Persons Protocol in 2018, which has been signed by 33 Member States. However, only four countries have ratified the Protocol to date.
“The state of ratification is disheartening, to say the least, given that the Protocol is aimed at facilitating regional integration in general, and the implementation of the African Continental Free Trade Area (AfCFTA), in particular,” Mr. Karingi said in Nairobi, Kenya during the Experts’ Group Meeting to Review the Policy Report on the theme; “The Free Movement of Persons for Trade: Towards an Accelerated Ratification of the AU Free Movement of Persons Protocol in Support of the implementation of the AfCFTA”.
The slow ratification of the Protocol has been attributed to a lack of knowledge and appreciation of the benefits of free movement of persons, lack of awareness of the Protocol, lack of political will, security and health concerns. Furthermore, the study recommended spirited advocacy and sensitization campaigns targeting member states and civil society to initiate domestic processes for ratifying the Protocol.
In the framework of support from the Italian Ministry of Foreign Affairs and International Cooperation to Advancing the electricity reform agenda by enhancing public-private dialogue, the United Nations Economic Commission for Africa (ECA) and the RES4Africa Foundation hosted the High-Level Public-Private Dialogue on Private Sector Investment in Electricity and Infrastructure Development in Africa.
The event brought together stakeholders from the public and private sectors, including policymakers, international organizations, and decision-makers working in energy and infrastructure. The participants discussed the changes needed in policy and regulatory frameworks to ensure adequate openness, attractiveness, and readiness of African markets to private investments.
Acting ECA Executive Secretary Antonio Pedro, stressed that the policy and regulatory challenges will require putting in place the kind of infrastructure that can support growth and prosperity. “Investments in energy and infrastructure will help leverage the opportunities for economic diversification through increased intra-African trade and regional economic integration and provide economic opportunities for the growing African youth and its vibrant population,” he said. “These investments will help us close the existing energy access gap. Currently, more than 600 million of our people do not have access to electricity and we generate only 4% of the global energy - this has to change,” he added.
Fact Sheet: Vice President Harris Launches Global Initiatives on the Economic Empowerment of Women, Totaling over $1 Billion (The White House)
Promoting gender equity and equality is a cornerstone of U.S. foreign policy in Africa and around the world. Advancing the economic status of women and girls is not only a matter of human rights, justice, and fairness—it is also a strategic imperative that reduces poverty and promotes sustainable economic growth, increases access to education, improves health outcomes, advances political stability, and fosters democracy.
In particular, the digital gender gap undermines women’s full participation in the 21st century economy. Globally, approximately 260 million more men than women were using the internet in 2022—and this gap has increased by 20 million in the last three years. The gap is especially acute across Africa, where International Telecommunication Union data show that sixty-six percent of women do not use the internet.
To address this disparity, the Biden-Harris Administration will continue to work with other governments, private sector, foundations, and multilateral organizations to help close the digital divide, improve meaningful access to equitable digital finance and other online services, and address social norms that prevent women from participating fully in the digital economy. More broadly, the Biden-Harris Administration will continue to promote the economic empowerment of women.
Hunger and malnutrition have reached critical levels in the Arab region as access to basic foods has been affected by the COVID-19 pandemic and the war in Ukraine, according to a United Nations report released today.
Produced by the Food and Agriculture Organization of the United Nations (FAO), the International Fund for Agriculture Development (IFAD),the World Food Programme (WFP), the World Health Organizations (WHO), the United Nations Children’s Fund (UNICEF), and the United Nations Economic and Social Commission for Western Asia (ESCWA), the 2022 Near East and North Africa Regional Overview of Food Security and Nutrition: Trade as an Enabler for Food Security and Nutrition, examines the state of regional food security, providing analysis and recommendations on how to mitigate the situation.
The report reveals that an estimated 53.9 million people suffered from severe food insecurity in the Arab region in 2021, accounting for a 55 percent increase since 2010. This is also an increase of 5 million people from the previous year. Moderate or severe food insecurity has also continued its upward trend, affecting an estimated 154.3 million people in 2021, an increase of 11.6 million people over the previous year, the report also warned.
While the Arab region was already off-track from achieving zero hunger and nutrition-related Sustainable Development Goal (SDG) targets, the pandemic and the war in Ukraine have exacerbated the situation by creating disruptions in supply chains and inflating the prices of grains, fertilizers and energy. Since the region depends heavily on imported food to meet its food security requirements, these crises have affected Arab countries disproportionately and aggravated food insecurity and malnutrition in the region.
The Overview highlights that trade is an essential enabler to ensure all four dimensions of food security and nutrition (availability, access, utilization, and stability) by increasing the quantity and variety of food and decreasing its price for net-food importing countries. However, most of the countries in the region have not mainstreamed trade into food security policies; thus, relevant policies must be redesigned accordingly and agrifood systems in the area must be transformed to make them more efficient, inclusive, resilient and sustainable.
The long hangover of the ‘Ever Given’ global trade disruption (EL PAÍS)
The Ever Given is 1,300 feet (400 meters) long and 193 feet (59 meters) wide. New York’s Empire State Building is shorter at 1,250 feet (382 meters). Two years ago, photos of the Ever Given grounded for six days in the Suez Canal made all the TV news reports and front pages. The incident dispelled any notions about the infallibility of globalization after a single blockage of a major commercial artery was enough to cause worldwide supply problems. “It was like a beached whale,” said Peter Berdowski, CEO of Boskalis, the company that owns SMIT, the Dutch salvage company that played a crucial role in the effort to refloat the mega-ship.
Two years after its all-out effort to free the ship from the Egyptian mud, Boskalis is still in litigation in the London courts against Shoei Kisen Kaisha, the Japanese company that owns the Ever Given. Boskalis claims it’s owed more money and is not the only one. Danish shipping giant Maersk claims it’s owed $43 million (€40 million) for losses incurred while its container ships were stuck for days waiting to pass through the Suez Canal. At one point, 372 ships were anchored on both ends of a canal that handles more than 10% of global maritime trade.
Between 80-90% of the world’s goods are transported by sea. It’s probably one of the most unknown and underappreciated cogs in the global economy because it works in distant oceans, far from the thoughts and lives of ordinary people. But globalization would be very different without it. Maritime transport is far cheaper than air transport, so it helps maintain low prices for consumers. When the Ever Given blocked the massive flow of goods to and from Europe, the Middle East and Asia through the Suez Canal, everyone knew about it. The numbers were staggering – some said losses amounted to $400 million per hour, $10 billion daily.
Emilio de la Cruz, Maerk’s managing director for Western Europe and the Maghreb region, says that the pandemic and the Ever Given incident have driven changes in global trade. “Resilience and flexibility are being built into supply chains as reinforcement, even if that comes at a cost. It’s a ‘just in case’ approach rather than ‘just in time and as cheaply as possible.’ The trend is to reduce the number of logistics providers to achieve better and quicker responses to disruptions,” he said. The Suez Canal Authority has not been idle either. To avoid another Ever Given nightmare, it has been working for over 18 months on deepening the southern section of the waterway and lengthening the parallel canal built in 2014.
UN Releases Draft Programme for HLPF 2023 (IISD)
The UN Secretariat has released the draft programme for the July 2023 session of the UN High-level Political Forum on Sustainable Development (HLPF). The annual meeting is held under the auspices of the UN Economic and Social Council (ECOSOC). Its 2023 edition will serve as a key preparatory event for the SDG Summit in September and help “identify substantive priorities and generate political momentum” for the Summit.
The theme of HLPF 2023 is ‘Accelerating the recovery from the coronavirus disease (COVID-19) and the full implementation of the 2030 Agenda for Sustainable Development at all levels.’ It is scheduled to take place from 10-14 July and 17-19 July at UN Headquarters in New York, US, followed by the last day of the ECOSOC high-level segment on 20 July.
ECOSOC President Lachezara Stoeva notes that 2023 marks “the mid-point of the implementation of the 2030 Agenda for Sustainable Development.” She further notes that the second SDG Summit – the HLPF held under the auspices of the UN General Assembly (UNGA) every four years – will convene during the 2023 UNGA high-level week, bringing together Heads of State and Government. The Summit will “carry out a comprehensive review of the state of the SDGs, respond to the impact of the multiple and interlocking crises facing the world, and provide political guidance on transformative and accelerated actions to achieve the goals by 2030,” the ECOSOC President writes.
O’Neill urges Brics bloc to expand, challenge dollar’s dominance (Engineering News)
Jim O’Neill, the former Goldman Sachs Group chief economist who coined the acronym Bric, said the bloc of nations that later adopted the name should expand and work to counter the dollar’s dominance.
In a paper published in the Global Policy journal on March 26, O’Neill called on the group to apply strict criteria to ensure the addition of any new members to its ranks helps further its aims and urged it to focus on climate finance, improving healthcare and boosting trade.
Brazil, Russia, India and China established Bric in 2009 and the bloc became Brics a year later when South Africa was admitted. If it expands to include other “emerging nations with persistent surpluses,” a globally fairer, multi-currency global system could emerge, O’Neill said.
DDG Ellard: The future of globalization is services, digital technology (WTO)
What springs to your mind when you think about international trade? Is it the nuts and bolts of trade, such as large container ships at the port of Shanghai, Los Angeles, or Rotterdam? Or is it trade disputes, such as US – Steel and Aluminium, US – Washers, or the Large Civil Aircraft disputes, which all concern trade in goods? Or maybe it’s semiconductor chips, which preoccupy many policymakers these days?
Those are all good answers. But international trade today is increasingly more about intangibles – things that we cannot see or touch, but which represent a major share of GDP in many countries. For example, in 2021, almost 78% of the U.S. GDP was generated by services.
In 2021, global services exports were valued at US$6 trillion, representing just over one-fifth of total world trade in both goods and services, and we estimate that the share of services in world trade could reach one-third by 2040. And this is not even the full picture because it does not account for all the different ways in which services may be traded. For example, Mode 3, commercial presence, is not included in this estimate.
DDG González to business: “Rise to the moment to help strengthen rules-based trade” (WTO)
DDG González noted that global merchandise trade has been at record highs since early 2021, and that even with the war in Ukraine, trade has performed a lot better than expected. “But this overall positive picture of trade should not obscure the many forces tugging hard at the seams of the rules-based trading system, from the rise of geopolitical tensions and great power rivalry to the revival of trade-restrictive industrial policies and worrying subsidy races,” she said.
Members maintain focus on food security, discuss farm policies, transparency (WTO)
Members continued to review each other’s farm support and border policies to ensure conformity with WTO regulations. They also discussed the implementation of ministerial outcomes adopted at the ministerial conferences in Bali and Nairobi and the 12th Ministerial Conference (MC12) in Geneva in June 2022. Members agreed to defer the finalization of the first triennial review of the Bali Tariff Rate Quota (TRQ) Decision to the next committee meeting scheduled for 27-28 June 2023.
Global Gas Flaring Falls to Lowest Level Since 2010 (World Bank)
Progress in reducing gas flaring resumed in 2022, with gas flared worldwide falling by 5 billion cubic meters (bcm) to 139 bcm, its lowest level since 2010, according to new satellite data compiled by the World Bank’s Global Gas Flaring Reduction Partnership (GGFR).
“After a decade of stalled progress, global gas flaring volumes fell in 2022 by around three percent, which is a welcome drop, especially during a time of concern about energy security for many countries. We continue to encourage all oil producers to seize opportunities to end this polluting and wasteful practice,” said Guangzhe Chen, World Bank Vice President for Infrastructure.
Three countries, Nigeria, Mexico, and the United States, accounted for most of the decline in global gas flaring in 2022. Two other countries—Kazakhstan and Colombia— stand out for consistently reducing flaring volumes in the last seven years.
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Patel highlights challenges faced by South African manufacturers, notes govt efforts (Engineering News)
To boost productivity in South Africa, four key business factors need urgent and significant attention, namely increasing energy security, increasing government spending on infrastructure projects, ensuring compliance with local procurement policies and using South Africa‘s competitive advantage to the benefit of local businesses, Trade, Industry and Competition Minister Ebrahim Patel has said.
Speaking at the Proudly South Africa Buy Local Summit on March 27, he admitted that, although “energy has become now the central preoccupation of the country”, energy availability is critical to localisation and to drive industrialisation.
The second major obstacle in jobs creation and government contribution to gross domestic product was slow movement in getting major infrastructure projects off the ground – spending on which peaked in 2014.
In this regard, he said a big part of government’s localisation efforts had recently gone into increasing infrastructure spending, which stood to benefit labour-intensive industries such as the steel, construction, chemicals and machinery production companies.
Namibia applauds ECA for supporting the development of the country’s Draft National Trade Policy (UNECA)
The Namibian Government through the Ministry of Industrialization and Trade, in collaboration with the Economic Commission for Africa (ECA), the Africa Trade Policy Centre, and the United Nations System in Namibia, convened a meeting to validate Namibia’s National Trade Policy.
The Draft National Trade Policy outlines policy measures and strategies that will enable trade in both goods and services to prosper and anchor sustainable economic growth and development of Namibia. Trade in services has become the most dynamic part of global trade in recent years and an option for export diversification in developing countries, including Namibia. Services matter for Namibia’s development as an input into the production of goods, and an avenue for export diversification, and therefore a potent contributor to inclusive growth, employment creation and poverty reduction.
The meeting provided Namibian stakeholders with an opportunity to review and validate the draft national trade policy prepared with the technical support of ECA. The review focused on ensuring that the policy adequately addressed the aspirations of all Namibians in as far as both domestic and international trade in goods and services are concerned.
“The implementation of the Trade Policy is contributing towards the country’s achievement of Sustainable Development Goals including Goal No. 17 – to strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development,” Ms. Ndiitah Nghipondoka-Robiati, Deputy Executive Director, Namibia’s Ministry of Industrialisation and Trade emphasised.
Ms. Olayinka Bandele, Chief of Inclusive Industrialization in ECA Sub-Regional Office Southern Africa, underscored the importance of Namibia’s national Trade Policy which seeks among others to consolidate existing markets for Namibian products, while at the same time pushing for new and enhanced market access to take advantage of the benefits of trade as the engine for sustainable economic growth and development”.
She emphasised that “Trade policies are key in facilitating the flow of goods and services between a country and its trading partners as well as in the domestic market. Consequently, trade is a critical driver of economic growth and development, job creation and can drive improvement in the competitiveness of local industries”.
Kenya, Germany to eliminate non-tariff barriers to boost trade (Capital Business)
Kenya and Germany will prioritize the elimination of non-tariff barriers to boost trade. The move, the two countries said, will reduce the costs of business and ease the movement of goods and services. President William Ruto explained that the removal of the barriers will also enhance investments by German businesses in Kenya.
He made the remarks on Monday when he met President of Germany Dr Frank-Walter Steinmeier at Schloss Bellevue, Berlin.
The President noted that the Government is committed — under its Bottom-Up Economic Transformation Agenda — to supporting small enterprises to blossom. “That is why we have put more than Sh50 Billion in the Hustler Fund to provide affordable credit to millions of Kenyans who depend on the MSME sector for a living.”
The President argued that undergone huge transformation that promises businesses a return on their investment.
He added that Kenya is stable with a vibrant and friendly environment to trade and invest. “We have a robust environment with an open and business-friendly regulatory regime,” he said.
Kenya’s Lamu Port lagging in EA transhipments, KPA data shows (The East African)
When the Lamu Port was inaugurated on May 20, 2021, the idea was to tap business from Horn of Africa importers and relieve Mombasa of congestion in transshipment. Nearly two years later, that hasn’t happened. Official data from the Kenya Ports Authority (KPA) shows that Lamu is handling less than 2,000 twenty feet equivalent units (TEUS), with the Salalah port in Oman the main preferred transshipment port.
Lamu had come in with a suitable depth enabling it to accommodate big container ships, with smaller ships picking cargo from Lamu for onwards transshipment to other ports of the world, including feeding the Mombasa port.
Lamu was one of the flagship infrastructure projects under Kenya’s Vision 2030 and was promoted as part of a proposed transport corridor linking with Garissa, Isiolo, Maralal, Lodwar, Lokichogio and Moyale to form part of the Lamu Port South Sudan Ethiopia Transport (Lapsset) corridor.
A logistics advisory firm GBS Africa notes in its latest January report that foreign direct investment is driving expansion and rehabilitation of existing seaports as well as the rolling out of entirely new facilities. The report warns that ports that shun partnerships with experienced foreign investors will lose out as competition for market share intensifies.
“Lamu Port has potential to accommodate big container ship where small ships can call at the port for onward transshipment to other ports of the East Africa. That would be of beneficial to traders as containers move much faster thus many vessels might avoid the time to get to Salalah Port in Oman which will be of benefit to the new Kenyan second commercial port,” reads the report.
Zim-Ghana bullish AfCTA will boost trade (The Herald)
SIGNIFICANT potential exists for Zimbabwe and Ghana to substantially increase trade between them under the framework of the African Continental Free Trade Area (AfCTA), Zimbabwe’s Ambassador to Ghana Dr Kufa Edward Chinoza has said.
Ambassador Chinoza said this in his opening remarks at the Zimbabwe-Ghana Business Forum, which opened in Accra, Ghana, yesterday and runs until Wednesday.
Zimbabwe and Ghana have both signed and ratified the AfCTA agreement, which is a panacea to resolve some of the challenges faced when trading within the African continent. Despite the good political relations between Accra and Harare, trade has remained minuscule.
“It is my fervent hope that with initiatives such as the AfCTA trade agreement and business linkages through forums such as this, we will see a change in the current trajectory,” Ambassador Chinoza told delegates.
Statistics from the AfCTA show that trade between Zimbabwe and Ghana stood at just over US$3 million in 2022.
Intra-Africa trade remains at low levels, Ambassador Chinoza said, averaging below 18 percent. As policymakers, he said doors were open to further suggestions and recommendations on how “we can support you, the business people, to increase bilateral trade and Intra-Africa trade”.
Nigeria Gains N3.9trn From Port Concessions (Leadership News)
Nigeria’s economy through cargo importers has gained a whopping $8.5billion (N3.9trillion) in the last 17 years through stoppage of long vessels waiting time at the seaports, LEADERSHIP learnt.
Before port concessioning exercise embarked upon by the administration of Ex- president, Olusegun Obasanjo in 2006, LEADERSHIP gathered that foreign shipping firms have slammed congestion surcharge on Nigerian bound cargoes due to long vessel waiting time at Nigerian seaports.
“Nigeria’s port concession programme has been a monumental success. Many African countries send representatives here to understudy our port concession regime and how we were able to substantially increase investment and efficiency within a very short period of time. It shows the can-do spirit of Nigerians.
“The port concession programme reduced the waiting time of vessels coming into our ports from an average of 45 days before 2006 to less than three days at present. It has helped in eliminating the notorious congestion surcharge, hitherto, imposed on our ports by major shipping lines under the aegis of the Europe-West Africa Trade Agreement (EWATA).
“The elimination of the port congestion surcharge has resulted in saving Nigeria’s trading community over US$500 million per annum. If you multiply that by the 17 years of port concession, that amounts to a savings of US$8.5 billion to date. In naira terms, that is a savings of more than N3.9 trillion to the Nigerian economy,” Seaports Terminal Operators Association of Nigeria (STOAN), Princess Vicky Haastrup said.
Egypt’s foreign trade records $29bln in 1Q FY2023: CBE (ZAWYA)
The Central Bank of Egypt (CBE) has announced that the country’s foreign trade reached about $29.032bn during the first quarter (1Q) of fiscal year (FY) 2022/23, consisting of about $19.067bn in imports and about $9.965bn in exports.
According to the Central Bank’s monthly report, the volume of trade exchange between Egypt and its most important 14 trading partners, accounting for 64.6% of the total trade exchange, amounting to about $18.763bn, of which about $11.681bn were exports and about $7.081bn were imports.
Tripartite FTA Progress Under Review as COMESA, EAC, SADC Sectoral Ministers Meet (COMESA)
Ministers in charge of trade, customs, finance, economic matters and home/internal affairs from the three regional economic communities (RECs) met virtually today to review progress on the implementation of various activities under the Tripartite Free Trade Area Agreement (TFTA). This was the 9th meeting of the ministers who constitute the Tripartite Sectoral Ministerial Committee (TSMC) of the Common Market for Eastern and Southern Africa (COMESA), East African Community (EAC) and the Southern Africa Development Community (SADC).
The last meeting of the TSMC was in 2019, and since then, progress have been reported especially on the market integration pillar particularly on the exchange of tariff offers and on rules of origin. Negotiations have been concluded on the list Rules of Origin for 90% out of a total 5,387 tariff lines which are already contained in Annex IV of the Agreement and can be applied when the TFTA Agreement enters into force.
The Minister of Trade and Industry of Egypt, Hon. Ahmed Samir who chaired the meeting stressed the need to ensure the ratification of the TFTA was achieved. He said this will enable the agreement to enter into force and support the Member States to overcome the current challenges such as the impact of the COVID-19 and the global economic difficulties.
Currently, 22 Tripartite Member/Partner States have signed the Agreement out of which, 11 which include, Egypt, Uganda, Kenya, South Africa, Rwanda, Burundi, Botswana, Namibia, Eswatini, Zambia and Zimbabwe have ratified it. Only three more ratifications are required for the Agreement to enter into force.
Intra-African Trade Fair 2023: Producers, chocolate makers come to promote the brown gold of Côte d’Ivoire (Ecofin Agency)
From the 21st to the 27th of November 2023, Côte d’Ivoire will host the 3rd edition of the Intra-African Trade Fair (IATF). The major event is the continent’s premier business forum for private sector actors in Africa. This year is a great opportunity for businesses working in Africa’s cocoa sector as the host country, Côte d’Ivoire, is the largest producer of the commodity in the world.
Côte d’Ivoire produces more than 2 million tonnes of cocoa a year, around 45% of the global production. The expertise of the local chocolate industry will be on full display, making it a unique opportunity for businesses to learn from Ivorian chocolatiers as well as cocoa producers coming from all over the continent.
Commercial exchanges between cocoa producers from different African countries can help the continent increase its processing capacity and add value to its raw materials. Currently, around 80% of Côte d’Ivoire’s national cocoa production is exported to Europe as cocoa beans.
Côte d’Ivoire, which has implemented reforms around the production and exportation of cocoa, recently launched a traceability programme to ensure that the cocoa supply chain is sustainable. This initiative will help Côte d’Ivoire meet international environmental standards.
To increase cross-border trade, partnerships among African and Ivorian producers, governments, traders and chocolatiers will be a key focus of the IATF.
Firms in EAC pause layoffs amid economic optimism among CEOs (The East African)
East African Community (EAC) companies have suspended workforce restructuring, including possible cost cutting through sackings, to await signs of economic turnaround. For the next 12 months, firms are turning their attention to fresh hiring lifted by increased optimism over the economic and financial outlook for the region and businesses.
The revelations are contained in a new survey released last week by consultancy firm PricewaterhouseCoopers (PwC) that shows that some 138 company chiefs in the EAC states are positive about the economic outlook for the region and the general performance of their companies in the short-term and medium-term.
East Africa CEOs indicated they will prioritize upskilling of their workforce (78 percent) in the next 12 months as well as investing in automating processes and systems (75 percent) and deploying technology (64 percent).
“The CEOs will be allocating the bulk of the investments to reinventing their businesses for the future,” the survey said.
According to the Survey PwC, CEOs in East Africa are most concerned about their exposure to rising inflation, macroeconomic volatility, climate change and cyber risk in the next 12 months and five years. In the next 12 months, the majority of CEOs see climate risk impacting their cost profiles and supply chains more than their physical assets.
The CEOs ranked technological disruptors highest (68 percent) with the potential to disrupt the industry in which they operate, followed by changes in regulations (64 percent) and changing customer demands/ preferences (64 percent).
Cemac: Outbound money transfers tripled in 5 years, reaching CFA10,120bn in 2022 (Business in Cameroon)
Outgoing money transfers from Cemac countries to the rest of the world have increased from CFA2,816 billion in 2018 to CFA10,120 billion in 2022, the Central Bank Beac revealed in a recent report on money transfers in the region. This means that in 5 years, the money used in foreign currency by private and public economic agents operating in the CEMAC to purchase goods and services, settle debts, transfer dividends, or make endowments outside the region has more than tripled.
Three activity sectors stood out, accounting for 67% of all authorized outgoing transfers in 2022. These are finance and insurance (26.76%), trade (25.73%), and the oil industry (14.20%). Operators in these sectors mainly used the resources to pay debt compensations on e-money and rapid transfer operations; imports of food, manufactured items, and refined oil products.
While the amount has clearly increased over the years, CEMAC economic agents constantly accuse the new exchange regulations of tightening trade with the outside world, particularly outbound transfers. The regulation in question, adopted in December 2018 and entered into force in March 2019, defines the organization, as well as the conditions and modalities for carrying out exchanges with the outside. It was decided during the extraordinary summit of CEMAC heads of state held in December 2016 in Yaoundé to replenish the community’s forex buffers and ward off a devaluation of the local currency, CFA.
Notable progress made on financial inclusion in the SADC Region (SADC)
Around 48 million adults, 22 million of them women, in the Southern African Development Community (SADC) Region have been included in the formal financial system over the last decade, Mr Sadwick Mtonakutha, the Director Finance, Investment and Customs Directorate in SADC Secretariat, has said.
This includes the 50% reduction in the cost of outbound remittances from South Africa, with more than 4.4 million adults in the Region benefiting from lower remittance prices; and the introduction of a risk-based approach to anti-money laundering which has led to an increase in access to formal remittances and migrant financial inclusion, especially from South Africa to the rest of the SADC Region. In addition, the SADC mobile money guidelines were adopted by the Committee of Central Bank Governors (CCBG) and Ministers of Finance and Investment, with Malawi and Lesotho now paying interest on mobile money wallets.
Mr Mtonakutha said the Support to Improving the Investment and the Business Environment in the SADC Region (SIBE) Programme, which is supported by the European Union, has also played a huge role in supporting financial inclusion. Key milestones achieved through the SIBE Programme include the review of the SADC strategy on financial inclusion and small and medium enterprise (SME) access to finance for the period 2016 – 2021; identification of priorities and development of timelines for harmonisation of financial inclusion; and the development of policy frameworks and guidelines for consumer protection in line with international best practices.
Brexit has ‘boosted trade opportunities’ for East Africa (Fruitnet)
Brexit and inflation have increased opportunities for fruit and vegetable producers in East Africa, according to Kenyan export consultant Paul Kyalo.
Kyalo’s consultancy business Konza Tropicals supports producers and exporters across East Africa to access international markets, gain certifications, develop their branding, and arrange the necessary export documents.
Brexit has created new opportunities for African producers, according to Kyalo, because many UK importers and retailers are now keen to buy produce from outside Europe in order to keep down costs and avoid red tape.
With supply chain inflation continuing to shape the fresh produce sector, East African producers and suppliers stand to benefit from their “competitive” production and labour costs, Kyalo says. However, he emphasises that airfreight rates continue to be a major challenge and sometimes mean it is more economical for UK importers and retailers to source from closer to home.
U.S. Vice President Kamala Harris arrived in Ghana Sunday night to kick off a three-nation tour of Africa her first visit to the continent since taking office.
The vice president said she was “very excited” about the future of the continent, and “the impact of the future of Africa on the rest of the world, including the United States of America.” Harris held a bilateral meeting with President Nana Akufo Addo in Accra in her first high-profile encounter as she begins the nine-day tour of central African nations.
“The U.S. is strengthening our partnerships across the continent of Africa, and they are guided not by what we can do for Africa, but with Africa and our African partners on this continent,” Harris said at a news conference with the Ghanaian leader after their meeting, lauding his leadership for having made Ghana a “beacon of democracy.”
Harris announced $100 million in new support for Benin, Ghana, Guinea, Cote d’Ivoire, and Togo, to help the nations address security, governance, and development issues in the region. White House officials said Harris’ trip and meetings would focus on democracy, climate change, security, the economy and the impact of Russia’s invasion of Ukraine.
The flurry of official visits follows the U.S.-Africa leaders’ summit in December, where President Biden announced a $55 billion commitment to the continent over the next three years.
Africa’s low trade pattern worrisome (New Era)
A low intra-continental, as well as global trade pattern by African countries, has been attributed to, among others, a lack of adequate infrastructure, climate change, structural problems, and lack of sovereignty or control of production. This is according to CEO of Development Reimagined, Hannah Ryder, who last week noted the African continent accounts for about 6% to 8% of global fossil fuel production, but only 2% of renewable energy production, yet the continent has the world’s largest renewable potential.
“Development reimagined analysis in 2019 before Covid-19 found that on average, just 3% of all products imported by the G20 countries come from Africa. 29 African countries each export less than 1% of Africa’s total exports to the G20 and this includes countries that have significant industrial aspirations, such as Rwanda, Senegal, Sierra Leone and Lesotho across the continent,” Ryder highlighted while addressing delegates during a seminar on promoting the development of Africa’s Industrial Chain and enhancing the added value of Africa products.
Chitendza added: “Reports show that it takes long just to cross from one border in one country to another, but internally within our countries, it’s equally difficult. These are the things that are delaying access to the market and the development of our own local supply chains”. He feels the thinking and know-how of the Chinese should be used to propel partnerships to higher grounds.
In Africa’s free trade area, pharmaceutical investment means impact and profit (WEF)
The COVID-19 pandemic brushed away any doubt as to the importance of functioning and productive pharmaceutical industries.
Countries across Africa, a continent which struggled to gain equal access to vaccines and that imports the majority of its packaged medicines from abroad, know all too well the importance of a strong domestic pharmaceutical industry and trade.
Total demand for packaged medicines in Africa is worth around $18 billion annually, of which 61% is imported and 36% is locally produced and not traded. Just 3% of demand is met by intra-African trade.
Now, under the newly active African Continental Free Trade Area (AfCFTA) agreement, Africa’s pharmaceutical and medicine trade is about to receive a significant boost — one fueled by intra-African trade, alleviating some of African states’ reliance on outside economies.
Africa urgently needs concessional financing to build resilience against shocks, experts say (UNECA)
With financial, health and climate shocks threatening to reverse two decades of development progress in Africa, experts have called for urgent concessionary financing to help the continent build resilience and boost economic growth.
A mix of shocks including food and fuel impact of the Russia-Ukraine war, climate change impacts, conflict, and tighter global financial conditions have increased Africa’s development financing gap and debt vulnerability, experts concurred during a one-day virtual workshop on Catalysing Access to the IMF Resilience and Sustainability Trust (RST), organized by AfriCatalyst and the Economic Commission for Africa (ECA).
“Despite national and international efforts, an increasing number of countries on the continent continue to struggle with substantial debt burdens and servicing their debt, with some already in debt distress or at high risk of debt distress,” Mr. Elhiraika said, emphasizing that this was impeding resilience-building to future shocks, which is key for sustainable development.
Trade Facilitation Agreement has increased trade by over US$ 230 billion, new study finds (WTO)
Based on estimates for the years 2017-2019, WTO economists attribute to the TFA an average 5% increase in global agricultural trade, 1.5% in manufacturing trade and 1.17% in total trade. These increases are largely driven by the trade growth in LDCs, where agricultural exports rose by 17%, manufacturing exports by 3.1%, and total exports by 2.4% under the TFA. The estimates further point to a 16-22% increase in agricultural trade between developing members that have made TFA commitments.
These estimates are conservative, as large gains have already been realized, particularly in manufacturing, in anticipation of the Agreement’s entry into force and by developed members making full commitments since the start of the TFA’s entry into force, as noted in previous studies.
The TFA is the first WTO agreement in which developing members and LDC members can determine their own implementation schedules and seek to acquire implementation capacity through the provision of related assistance and support. Developed members were required to implement all provisions of the TFA from its entry into force. As of 22 March 2023, notifications submitted by WTO members indicate that they have committed to implement 76.1% of TFA obligations.
Members endorse tools, recommendations to enhance SPS Agreement implementation (WTO)
The SPS Committee adopted document G/SPS/67, which lists existing tools and resources to enhance the implementation of the SPS Agreement relating to SPS approval procedures for food, animal and plant products. It also adopted document G/SPS/68, which provides recommendations on SPS approval procedures.
Approval procedures cover any procedure to check and ensure the fulfilment of SPS measures. They can, for example, be used to assess products or categories of products before they are allowed into a market to ensure that imported products comply with SPS requirements of the importing country or to check that the SPS system of an exporting country provides necessary assurances before a product enters a market.
The two documents stemmed from work undertaken by the Working Group on Approval Procedures between November 2020 and March 2023. The Working Group was set up following a recommendation from the Fifth Review of the Operation and Implementation of the SPS Agreement to consider challenges and principles of approval procedures.
Global Economy’s “Speed Limit” Set to Fall to Three-Decade Low (World Bank)
The report, Falling Long-Term Growth Prospects: Trends, Expectations, and Policies, offers the first comprehensive assessment of long-term potential output growth rates in the aftermath of the COVID-19 pandemic and the Russian invasion of Ukraine. These rates can be thought of as the global economy’s “speed limit.”
“A lost decade could be in the making for the global economy,” said Indermit Gill, the World Bank’s Chief Economist and Senior Vice President for Development Economics. “The ongoing decline in potential growth has serious implications for the world’s ability to tackle the expanding array of challenges unique to our times—stubborn poverty, diverging incomes, and climate change. But this decline is reversible. The global economy’s speed limit can be raised—through policies that incentivize work, increase productivity, and accelerate investment.”
That would convert an expected slowdown into an acceleration of global potential GDP growth.
A new world order? BRICS nations offer alternative to West (DW)
The acronym began as a somewhat optimistic term to describe what were the world’s fastest-growing economies at the time. But now the BRICS nations — Brazil, Russia, India, China, South Africa — are setting themselves up as an alternative to existing international financial and political forums.
“The founding myth of the emerging economies has faded,” confirmed Günther Maihold, deputy director of the German Institute for International and Security Affairs, or SWP. “The BRICS countries are experiencing their geopolitical moment.”
What may have started as a marketing ploy to encourage investors has grown into a platform for intergovernmental cooperation similar to the G7. In 2009, the four nations met for their first summit in Russia’s Yekaterinburg. In 2010, South Africa was invited to join the group, adding the “S” to BRICS.
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More work on regulation codes certification and standards needed for hydrogen economy (Engineering News)
If South Africa wants to develop a hydrogen economy, it cannot have ad hoc regulations, codes and standards (RCS) and certification systems. More work was required to develop RCS that addressed regulatory gaps and facilitated the development of a hydrogen economy, transaction advisory company RebelGroup South Africa senior consultant Laurens Cloete said last week.
“If we want a green hydrogen economy, we require a comprehensive approach to RCS. Green hydrogen certification is also critical for exporting green hydrogen to countries that do not have sufficient renewable resources but require clean energy sources.”
Further, the South Africa Hydrogen Society Roadmap and the Green Hydrogen Commercialisation Strategy of the Industrial Development Corporation (IDC) highlight the criticality of RCS across the chain value.
TZ calls for strong measures to combat illegal diamond trade (Daily News)
Tanzania has called for an increased accountability, transparency and implementable measures to combat illegal diamond trade in the world. Permanent Secretary in the Ministry of Minerals, Mr Kheri Mahimbali, who is the outgoing African Diamond Producers Association (ADPA) Chairman has also urged the association to continue bolstering relationships with international partners as well as improving the lives of miners and their families.
He said African Diamond Producers face numerous challenges, including fluctuating diamond prices, competition from synthetic diamonds, the continued threat of illegal mining and smuggling.
He further noted that through a lot of efforts and cooperation by all member states, the reform process led successfully to the amendments of the Statute, the Internal Regulation of the Executive Secretariat of ADPA.
“We can achieve the goal of the Africa Mining Vision towards a transparent, equitable and optimal exploitation of mineral resources for sustainable growth and socio-economic development through such initiatives as the ADPA,” President of Zimbabwe, Dr Emmerson Mnangagwa added.
Kabwe Port lifts cross-border trade (Daily News)
THE construction of Kabwe Port on Lake Tanganyika has lifted cross-border trade between Tanzania and land-linked countries, particularly the Democratic Republic of Congo (DRC) and Burundi.
Farmers and local entrepreneurs told the ‘Daily News’ on Sunday that since the construction of the port, there has been an increase in money circulation and lifted the livelihood among Nkasi dwellers due to improved trade.
“More traders from within and outside Tanzania are now buying food crops and ferry them to DRC, Burundi and Kigoma, our economies have improved,” Julius Kagosha, a maize and cassava grower, said.
Dar to benefit from import cargo redirected from Mombasa (The East African)
Tanzania is waiting in the wings of Kenya’s political uncertainty to raise its position as an import and logistics hub, especially with regional importers of fuel who are increasingly opting for the Dar es salaam route because of safety. Last week, Kenyan opposition leader Raila Odinga was under pressure from several quarters – both local and international – to call off protests and instead opt for talks.
Odinga had rallied supporters to the streets to protest the increasing cost of living and electoral injustice, demanding an audit of electoral commission servers, but those in government dismiss the riots as a ploy to coerce President William Ruto into a power-sharing agreement – like the one he had with former president Uhuru Kenyatta.
The epicentres of the protests lie on the Northern Corridor – the artery linking Kenya’s port of Mombasa to landlocked neighbours Uganda, Rwanda, South Sudan and the Democratic Republic of Congo – threatening transport and logistics on the key route.
Dar es salaam is angling for a share of Mombasa’s total cargo throughput, which has increased steadily over the past five years, from 30.35 million metric tonnes (MT) in 2017 to 34.55 million MT in 2021, according to the Northern Corridor Observatory Report 2022.
“The Dar es Salaam port handles around 50 percent of what the port of Mombasa does,” said Omae Nyarandi, executive secretary of the Northern Corridor Transit and Transport Coordination Authority (NCTTCA). “In terms of cargo traffic, Uganda’s cargo from Mombasa is at 98 percent, while her goods from Dar es Salaam are at two percent; Burundi - Mombasa three percent, Dar es Salaam 97 percent; DRC - Mombasa 30 percent, Dar 70 percent; Rwanda - Mombasa 25 percent, Dar 65 percent), and South Sudan - Mombasa 100 percent,” he added.
Ghana urged to enforce existing policies to guard operations of SOEs (BusinessGhana)
Dr. Willard Mugadza, the International Consultant on the African Peer Review Mechanism (APRM) at the African Continental Free Trade Area (AFCFTA) has lauded the country for the legal frameworks and policies to guard the operations of State-Owned Enterprises.
He said, “what we have so far identified is that, since our engagement in Accra with state owned enterprises, is in terms of the legal frameworks and policies, the legal framework is there, the policies are there, but there is more work that needs to be done in terms of implementation of the existing legal framework.”
He said there was also the need for capacity building for SOEs since without robust and good corporate governance, especially through your SOEs, which were the implementing agencies of AFCFTA it would be difficult for the private sector, informal sector, small to medium enterprises to quickly engage for full participation of the opportunities AFCFTA presented to growing individual economy under the African programme.
The International Consultant added that issues of Rules of Origin in Trade Area were also a critical subject for access to the market, which behooved on Ghana to promote total compliance…for Ghanaian companies to comply with the requirements of Rules of Origin, it will require ethical good transparency, competent and effective leadership, some of the core principles of corporate governance.
Namibia, Nigeria Boosting Trade, Investment Through Bilateral Ties (Leadership News)
The bilateral ties between Namibia and Nigeria raise hope of increased trade and investment and the potential to boost tourism as both countries work to strengthen the long-standing friendships that started in the days of the struggle for independence.
High Commissioner of Namibia to Nigeria, Humphrey Geiseb, said the ties between both countries will further be boosted this year, when Namibia will host the 5th Session of the Namibia-Nigeria Joint Commission of Cooperation. This meeting, according to the Namibian envoy, will allow the two countries to review and build on the outcomes of the 4th Session which was held in 2010. Furthermore, there will also be a review of the number of Agreements signed during the past decade.
In the past four years, Nigeria has invested in Namibia and created value with the blossoming of two Charcoal factories owned by Nigerian investors in Namibia. These two companies, Premier Charcoal based in Outjo and King Charcoal in Walvis Bay, are an excellent demonstration of utilising African expertise to develop African raw materials, Ambassador Geiseb said.
He said further that “This is indeed a great stepping stone to robust intra-African trade that all African countries will enjoy under the African Continental Free Trade Area, adding that the two countries have worked on more than 10 Agreements that are ready for signature during the 5th Session of the Joint Commission.
Boost for LAPSSET as S.Sudan picks 16 priority areas (The Star)
Kenya’s quest to increase commercial activities at the Lamu Port has received a major boost with the completion of a strategic plan for related projects by South Sudan.The neighbouring country which is part of the Sh2.5 trillion Lamu Port-Southern Sudan-Ethiopia Transport (Lapsset) corridor has identified 16 projects that include road networks, the design and construction of the Lapsset Corridor Road and power projects, whose implementation is awaiting funding.
It is also keen on a fiber-optic national broadband backbone, agriculture and irrigation programmes, national petroleum and minerals survey, manufacturing and value addition, transport and logistics programmes, oil and gas, and mining of minerals and strategic environmental safeguard studies, all leaning towards the Lapsset corridor.
According to senior advisor of the Africa Trade Center to the United Nations Economic Commission for Africa, Adeyinka Adeyemi, they have agreed on roads, power and agriculture as the first three priority projects to be implemented for South Sudan. This is a milestone as Kenya continues to develop its infrastructure from the Lamu Port to borders with Ethiopia and South Sudan. They include Lamu-Garissa-Isiolo and Lokichar roads.
The Southern African Development Community (SADC) has made great strides in improving the Region’s economic and social development since the inception of the Support to Industrialisation and Productive Sectors (SIPS) programme in 2019, assisting the Region in the implementation of the SADC Industrialisation Strategy and Roadmap which was adopted in 2015.
Speaking exclusively with The Citizen, a newspaper from the United Republic of Tanzania, SADC’s Acting Director for Industrial Development and Trade, Mr Calicious Tutalife, said these strides include enhancing the regulatory and policy environment within the Member States as well as more capacity building to the Member States on understanding their participation.
“To enhance participation in value chains, we have to look at capacitating Member States to understand where opportunities are so that not all Member States end up focusing in one area. You have to understand where advantages and opportunities are within a specific value chain. We have also looked at issues of intellectual property rights,” he said.
Central bank chiefs commit to EAC 2031 currency deadline (Business Daily)
The Governors of Central Banks in East Africa have agreed to fast-track the implementation of a common currency by 2031 after a set deadline of 2024 proved to be unviable. The 26th ordinary meeting of the East African Community (EAC) Monetary Affairs Committee, which brings together CBK governors from member States, said progress is being made to ensure that the 2031 timeline for achieving a common currency is achieved within the set time frame.
The meeting, held in Burundi last week, noted that Partner States’ central banks have made significant strides towards the establishment of key institutions of the East African Monetary Union (EAMU).
“Notwithstanding the progress, the Committee noted the revised timelines set out in the EAMU roadmap, with the new date of achieving the monetary union by 2031. Therefore, the Committee reaffirmed their commitment to work together and with the EAC Secretariat to fast-track implementation of activities in the revised EAMU roadmap,” reads a communique from the EAC.
Cereals board targets EAC, Sadc countries with new milling plant (The Citizen)
The Cereals and Other Produces Board (CPB) is set to install a milling and packaging plant in Iringa Region as part of efforts to meet the growing demand for maize flour in the southern regions and the neighbouring countries. In effect, the state-run agency targets countries in both the Southern African Development Community (Sadc) and the East African Community (EAC).
The board has a plant in operation that was commissioned in 1976 to process between 50 and 55 tonnes of maize a day, but its current capacity is about 45 tonnes of maize flour.
“This production capacity does not at all serve CPB and the nation well; hence, the solution is to add a new production line. We are reliably sure that the new plant will facilitate national efforts to see Tanzania become a net exporter of foodstuffs,” said CPB zonal manager for the southern highlands, Dr Jaspa Samuel.
Consultation and sensitisation of Mozambican key stakeholders on AfCFTA progress (UNECA)
Jorge Jairoce, Permanent Secretary, Mozambique Ministry of Industry and Commerce (MIC) says, “our country is strongly committed to pushing the African Continental Free Trade Area (AfCFTA) agenda by signing and ratifying the AfCFTA Agreement, negotiating critical trade protocols and preparing the implementation of the National AfCFTA Strategy, including support to private sector”.
He said this in Maputo at a two-day National Consultative Meeting and Awareness Workshop on the National AfCFTA Strategy of the Republic of Mozambique.
In her opening remarks, Isatou Gaye, Chief Sub-Regional initiatives, speaking on behalf of Ms. Eunice Kamwendo, Director of the SRO-SA said that since 2021 ECA and the Mozambique Ministry of Industry and Commerce have been collaborating to implement a technical assistance project aimed at strengthening the production of external trade statistics in the country. Mozambique, she said, is currently Chair of the Bureau of the Inter-Governmental Committee of Senior Officials and Experts for Southern Africa (ICSOE), which provides guidance on ECA’s work in the region.
Mr. Prakash Prehland, Vice-President, Confederation of Economic Associations of Mozambique represented the private sector. He stressed the importance of the AfCFTA in connecting businesses and opening continental trade for Mozambique and called on his country to align with the necessary AfCFTA instruments. “There is high demand for Mozambican products, AfCTA protocols will help private sector capitalise on its benefits. Currently, only 28% is continental trade and most of it is with South Africa”.
Zim still unprepared for AfCFTA: CZI (The Standard)
ZIMBABWE’s leading industrial lobby group, the Confederation of Zimbabwe Industries (CZI) says there are several issues still to be addressed before local businesses can join the Africa Continental Free Trade Area (AfCFTA)
“Developments from the AfCFTA reveals that there is a private sector mapping initiative, which helps the private sector to identify opportunities for collective action, key challenges, or success factors for industry engagement,” CZI said in its latest business oversight article.
“This also underlines that there are a number of issues still needed for Zimbabwe businesses to be ready to exploit the opportunities that will arise from continental integration.”
Ghana takes advantage of AfCFTA to boost trade relations with Kenya (Business Insider Africa)
The West African state will establish an Export Trade House (ETH) in Kenya as part of the measures to promote trade relations between the two countries. Ghana will organize a three-day business expedition before the trade fair to highlight the goods it plans to import into Kenya.
Trade barriers between the nations of East and West Africa have historically been low because of regulatory restrictions. Nonetheless, many African nations are now trading more independently thanks to the AfCFTA, the largest free trade area in the world. The first two nations to sign their AfCFTA ratification agreements on the same day were Kenya and Ghana.
“The overarching purpose of this Trade House is to serve as a one-stop wholesale outlet in the Eastern bloc of the continent for all Made in Ghana Products,” said Ghana’s High Commissioner to Kenya Damptey Bediako.
Businesses optimism significantly less than 6 mths ago: Standard Bank
Optimism among Ghanaian businesses has reached a significantly low level than it was six months ago, the Africa Trade Barometer (ATB) report by Standard Bank Africa has revealed.
The report states that the main contributing factor to this decline in confidence is the high prices on products and the perception of a poor-performing economy linked to the poor-performing Ghanaian cedi, which had lost half of its value in the past year. In addition, the perception of the government’s support of trade is also significantly lower.
Ghana ranks 2nd on the ATB and QTB, but last on STB. The ATB report provides reliable data and insights on African markets gathered from 2554 firms representing small, big and corporate businesses across all 10 economies during August and September 2022.
One Country One Priority Product advances in Africa (APO)
The One Country One Priority Product (OCOP) initiative, launched by FAO in 2021, aims to promote agricultural development by identifying and prioritizing one essential agricultural product per country that has the potential to increase farmers' incomes and improve food security. Since the launch of OCOP, over 80 Members from all five FAO regions have expressed their strong interest in promoting the green development of over 50 Special Agricultural Products. With 27 African countries expressing their interest in joining the initiative, Africa is leading the implementation at the global level.
The OCOP initiative in Africa so far focuses on developing 18 Special Agricultural Products (SAPs), including avocado, cashew, meat and teff, which have unique qualities and special characteristics associated with geographical locations, farming practices, and cultural heritages.
Why Africa needs knowledge transfer more than grants, by Aboyeji, Ghaim (The Guardian Nigeria)
With the rise of many startups in the technology and creative industries in Nigeria and the continent, Africans have been urged to work more on providing solutions to problems, rather than rely solely on remittances and grants from the diaspora.
Speaking over the weekend at the African Diaspora Investment Summit (ADIS), organised by the African Diaspora Network (ADN) in Silicon Valley, California, United States, CEO and General Partner of Fund for Africa’s Future (Future Africa), Iyinoluwa Aboyeji, said over-reliance on remittances from diaspora without adequate scale-up in human capital would limit Africa’s progress into development.
Speaking to The Guardian, he said: “Africa is on a journey, but we are not going to get there by copying models from other places or throwing money at the problem. It is going to require intellectual investment. There should be a mindset shift that you don’t need diaspora money as much as you need the knowledge transfer.”
Manufacturing vaccines in Africa (The Independent Uganda)
Africa Centres for Disease Control and Prevention (Africa CDC) has hosted lead partners of Partnerships for African Vaccine Manufacturing (PAVM) for review of vaccine manufacturing ecosystem in Africa The meeting, which took place from 9-10 March, was dedicated to identifying a clear set of annual objectives and deliverables in2023 for the Partnership for African Vaccine Manufacturing (PAVM).
The lead partners reviewed the eight bold programs outlined in the PAVM Framework for Action, prioritised a set of practical actions and defined a collaboration framework that enables implementation, effectiveness and quick results in support of African vaccine manufacturing.
“Safeguarding Africa’s health can only be achieved through our ability to manufacture the health products we need on the continent. The new public health order outlines it well in its Pillar 2: Expanded Manufacturing of Vaccines, Diagnostics, and Therapeutics to democratize access to life-saving medicines and equipment,” said Dr. Ahmed Ogwell, Acting Director of Africa CDC.
Aviation Industry Efforts Continue To Promote Intra-Africa Travel (Simple Flying)
The African Civil Aviation Commission (AFCAC) is continuing its efforts to implement the Single African Air Transport Market (SAATM), which could hold the key to a golden age of aviation development in Africa.
AFCAC Secretary General (SG) Adefunke Adeyemi said in the interview; “We are operating in various domains and engaging not just our member states but also the entire universe ecosystem of aviation to really bring that about. We have clear targets that we’re trying to achieve and reach. So in the first few months of assuming office, it was really important for us to say that, first of all, AFCAC is here for our member states, but also to engage with our partners because we cannot do it alone.”
China’s Africa Belt and Road investment drops as West spends more (Nikkei Asia)
China’s Belt and Road investment in sub-Saharan Africa fell to a new low last year, showing that increased U.S. and European spending could reduce the region’s need to rely on Beijing for funding. China’s investment in the region related to Beijing’s global infrastructure development strategy dropped 55% to $7.5 billion last year, according to a recent report from the Green Finance and Development Center at Fudan University in Shanghai.
VP Harris on pushback mission to Africa as China’s trade far outpaces US (ICIR)
AS part of a pushback strategy to China’s trade influence in sub-Saharan Africa (SSA) which far outpaced that of the United States (US) over the last decade, US Vice President, Kamala Harris, will start an official visit to the region next week.
The US annual trade value with the region has slowed over the last decade, relative to before 2010, as China’s trade had surpassed the country since 2011 and has maintained that lead in the region.
“The Biden administration has been accelerating its campaign to rebuild American influence in Africa, where it lost ground to soft influence via Chinese investment,” Bloomberg reported on Friday, March 24.
Business Programme for SA BRICS Chairship to be Outlined at Economic Indaba (the dtic)
A business programme for South Africa’s Brazil, Russia, India, China and South Africa (BRICS) chairship will be outlined at an economic indaba that will take place this week. The indaba will take place in the form of a webinar on Thursday, 30 March 2023
The aim of the indaba is to outline the business roadmap of the SA Chairship, whose climax will be the 15th BRICS Summit that will take place in August 2023. Key stakeholders such as the apex business associations, government, and civil society, will participate in the indaba.
The BRICS Economic Indaba seeks to galvanise the support of South African businesses behind the programme of the SA BRICS business Council, as well as to provide business with a broad understanding of the multitude of platforms and projects that they may be able to participate in during this Chairship.
The focal areas of discussion will include trade and investment opportunities with BRICS markets; key interventions being tabled at sector-based working groups; and activities lined up as a build-up to the BRICS Summit in August.
Transforming agrifood systems is essential to adapt to human-caused climate change and reduce greenhouse gas emissions, the Food and Agriculture Organization of the United Nations (FAO) said today in the face of the latest report published by the Intergovernmental Panel on Climate Change (IPCC).
The Synthesis Report, the last of the Sixth Assessment report cycle, done in a collaborative effort between governments and scientists from all over the world, confirms that human activities, mainly through emissions of greenhouse gases, have unequivocally caused global warming. These include unsustainable energy use, land use and land-use change, as well as consumption and production patterns.
The report underlines that 22% of global greenhouse gas emissions right now come from agriculture, forestry, and land use.
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Private energy sector participation could improve SA’s growth outlook – IMF (SAnews)
The International Monetary Fund (IMF) believes that South Africa’s implementation of structural reforms, combined with fiscal consolidation, could help boost private investment, employment and growth.
IMF officials held a series of meetings with South Africa this month as part of their routine economic surveillance function, as prescribed in the IMF’s Articles of Agreement.
The IMF said restoring energy security will require attracting private sector participation in the electricity market and addressing Eskom’s operational and financial deficiencies.
“Similarly, stronger-than-expected private sector participation in the energy sector could improve the growth outlook,” National Treasury said in a statement following the meetings.
The IMF noted that the country’s large external asset position, diversified economy, sophisticated financial system, and flexible exchange rate regime are sources of strength, supported by the Reserve Bank’s pro-active monetary policy, have kept inflation expectations anchored.
In addition, the IMF recognised steps taken to improve third-party access to the country’s ports and freight network.
“Nevertheless, [the IMF highlighted] various downside risks to South Africa’s economic outlook, including external risks that could emanate from a deeper and more protracted global slowdown, further weakening of commodity prices and a shift in global investors’ sentiment away from emerging markets.”
Uganda: Export earnings grow by 38.9% (Monitor)
Export earnings grew by 38.9 percent in January compared to the same period last year, largely due to higher returns from commodities such as maize, coffee, tea and tobacco.
According to the Ministry of Finance performance of the economy report, released at the weekend, during January 2022, earnings from maize exports stood at $6.76m but grew to $35.01m in January 2023 due to “easing of non-tariff barriers in Kenya and the opening of the Uganda-Rwanda border”.
Similarly, earnings from coffee increased by 13.1 percent due to growth in exports to meet the reduced supply from major exporting countries such as Brazil and Vietnam.
Tunisia: textile-clothing industry export value up 16.69% until end February 2023 (TAP)
Exports of the textile-clothing sector have increased by 16.69% in dinars to TND 1,698.08 million and by 13.93% in euros (€509.9 million) during the first two months of 2023, compared to the first two months of 2022.
However, according to the latest issue of the CETTEX Economic Letter, these exports have decreased by 8.85% in volume.
As for the imports of the textile-clothing sector, they posted, during the same period, a growth of 2.26% in dinar reaching TND 1,128.27 million and a decrease of 0.15% in Euro (€338.8 million) and 7.07% in volume.
For the first two months of 2023, the trade balance saw a progression of 18.6 points compared to the two months of 2022 (150.5% against 131.9%).
Mozambique: Scale Importers Suspend Trips to South Africa (allAfrica)
The Mozambican Association of small scale importers, known as “mukheristas’, has decided to suspend trips to South Africa to prevent possible violence against Mozambican trucks during the current protests. According to the president of the association, Sudekar Novela, quoted by the Maputo daily “Noticias’, the action aims to safeguard the physical integrity of operators in the sector and avoid possible damage caused by the looting of goods.
In recent days, the price of fresh products in Zimpeto has fluctuated as a result, on the one hand, of the flooding of crops in the production fields and, on the other, of rising acquisition costs in South Africa.
Kibirizi port sees record cargo boom (Daily News)
KIBIRIZI port in Kigoma Region is witnessing record cargo volumes after undergoing major facelift as trade between Tanzania and land-linked DR Congo, Burundi and Zambia keeps mushrooming.
The refurbished terminal, located some 20 kilometres from the major Kigoma Port, handled 103,188 metric tonnes of cargo in 2021/2022 financial year, which is 193 per cent of the target.
Kibirizi is the second largest port in Kigoma Region after the port of Kigoma, which is the general cargo terminal. The other port is Ujiji.
“Kibirizi port is popular for handling modern vessels with the capacity of 30 tonnes, which transport various goods for commercial and domestic uses heading to neighbouring countries of DR Congo and Burundi,” Lake Tanganyika Ports Manager Mr Edward Mabula told the ‘Daily News’.
Mr Mabula said TPA is looking to attract more cargo and customers at Kibirizi port and has been waging campaigns, including visiting potential customers to use the Central Corridor which is cost effective.
Kenya closes porous routes on Uganda border over smuggling (The East African)
Over the weekend, Nairobi closed the Kenya-Uganda border in Busia District, which includes 57 kilometres of porous borders and over 200 illegal routes stretching from Lake Victoria in Majanji to River Malaba in Buteba Sub-County.
Subsequently, the usually busy border outpost of Sofia and Marachi, which thrived on illicit trade across the two borders, remains deserted as Kenya maintained a huge security presence to curtail illegal border movement.
Kenya’s Busia County Commissioner Ruto Kipchumba explained why they had deployed a multi-sectoral team of security personnel along all the porous border routes.
“The deployment is meant to curtail illicit activities of smuggling which were causing huge revenue losses to the Kenyan government and putting the lives of their nationals at risk due to consumption of substandard goods that were being smuggled into the country,” he said.
Local Content Bill suffers another setback (New Vision)
Parliament has deferred debate on the National Local Content Bill, 2022, pending harmonization between the bill’s sponsor, Patrick Oshabe, Attorney General (AG) Kiryowa Kiwanuka, and the finance committee.
On March 1, 2023, Speaker Anita Among told the House that the President had returned the Bill for reconsideration.
“One of the issues the Attorney General raised is that the drafting is not compliant with basic standards of drafting and that he was not consulted. We do not want him to come here and frustrate the member,” Leader of the Opposition Mathias Mpuuga said.
The committee scrutinized clause 4 of the bill on preferential treatment to Ugandan goods, works, and services, which the president said is contrary to the East African Community Protocol on the free movement of goods and services and the East African Monetary Union.
“When the local content laws are being harmonized, only existing laws can be harmonized.” If Uganda has no existing law at the time of harmonization, it will have to recognize the local content laws for other jurisdictions, but cannot introduce a local content law at that time,” reads the committee report.
Kenya expects trade partnership deal with US in a year, minister says (Reuters)
Kenya expects to finish talks for a trade and investment deal with the United States by the end of this year and to sign the agreement by April 2024, Trade Minister Moses Kuria said. Kenya is one of the United States’ top trading partners in Africa and has been a major beneficiary of the Africa Growth and Opportunity Act (AGOA), a preferential trade programme that will expire in 2025.
The deal would not address tariffs but would complement AGOA and cushion the blow for Kenya if the programme is not extended, Kuria told Reuters in an interview in London on Wednesday after meeting British trade officials.
“It is full steam ahead for both the Kenyan and U.S. sides,” Kuria said. “By the close of this year, we will have finalised the actual negotiations to pave way for a signing probably by April next year.”
Kenya’s trade lobby launches mobile app to boost women businesses in East Africa (The Star)
The Kenya National Chamber of Commerce and Industry (KNCCI), a trade lobby, on Wednesday launched a mobile app dubbed iSOKO to boost women-owned businesses in East Africa. Richard Ngatia, president of KNCCI, told journalists in Nairobi, the capital of Kenya, that the digital platform will help women entrepreneurs connect with potential buyers, allowing them to reach a wider audience and sell their products more easily.
“This app will have a significant impact on the lives of women traders, by increasing their income, improving their bargaining power, and promoting their economic independence,” Ngatia said.
Belgium royal couple visits South Africa to cement trade ties (Sunday World)
King Phillippe and Queen Mathilde of Belgium are in the country for a five-day visit, their first state to an African country since 1979.
Belgium ambassador to South Africa Paul Jansen said: “The state visit is a reflection of the strength of the relationship that exists between Belgium and South Africa.
Belgium is listed as the fifth-largest exporter and third-largest European Union importer of goods to and from South Africa.
Chemical products, machinery and minerals are among the chief exports of Belgium to South Africa. The country’s imports from South Africa include precious stones, transport equipment and chemical products.
“South Africa is an attractive investment destination for Belgian companies and an alluring business and leisure tourism destination,” Jansen said, noting that South Africa is the largest economy on the African continent with significant growth potential. “It is no surprise that several Belgian companies have recently made significant South African investments and are in partnership with South African companies in sectors as diverse as food processing and mining.”
Nigeria’s trade relationship with China takes an $80 million dip (Business Insider Africa)
The Chinese Chamber of Commerce delegation to the Executive Secretary of the Nigerian Investment Promotion Commission was led by Wang Yingqi, Minister and Counselor for Economic and Commercial Affairs at the Embassy of the People’s Republic of China. He noted that the trade record was $219 million in 2022 and $300 million in 2021.
“Nigeria and China have maintained a long-standing trade relationship which is why the visit was important to sought ways of improving bilateral relations as trade value alone in last year according to our statistics the total investment from China’s companies to Nigeria is around $219m and in the past year, the figure is also around $300m.”
He added that the Chinese government has invested in the Lekki Free Trade Zone as a result of the Public Private Partnership with the federal government and the Lagos State Government.
UK Trade Commissioner: Morocco is gateway to Africa & key business partner (The North Africa Post)
UK trade commissioner for Africa John Humphrey has described Morocco “a gateway to Africa and a key business partner for the United Kingdom”.
Commenting his meeting held Tuesday in London with Moroccan Ambassador to the UK Hakim Hajoui, John Humphrey said, in his twitter account, that talks with the Moroccan ambassador focused on ways of strengthening further the £2.9 billion trading relationship, specifically in education, technology and innovation.
Following its exit from the European Union, UK signed with Morocco and several other countries trade agreements to ensure continuity of trade exchanges, services, and economic cooperation ties.
To promote UK and Moroccan trade, UK export finance agency (UKEF) had announced in 2022 a £4 billion funding for overseas buyers of UK goods and services to strengthen the trade relationship between the UK and Morocco.
TZ, India trade volume notches using own currencies (Daily News)
TRADE volume between Tanzania and India stands at 4.5billion US dollars (about10.4tri/-) by early March this year as the two countries agreed to use their own currencies while doing trade. This was said by the Indian High Commissioner to Tanzania Binaya Pradhan, who noted the two trading partners would be using own currencies in trading.
“Tanzania and India will use their own currencies in transactions, which is part of a bilateral trade settlement arrangement,” revealed the envoy, at a business symposium held here on Saturday evening.
“The move will boost bilateral trade between Tanzania and India as we envision potential growth of our trade,” he explained.
Uganda ready to trade under AfCFTA Guided Trade Initiative (The New Times)
Ugandan officials have confirmed that they too are ready to follow in the footpath of their East African Community (EAC) counterparts, Kenya and Rwanda, and start trading under the AfCFTA Guided Trade Initiative which was officially launched in October 2022.
The initiative launched in July 2022, sought to test the environmental, legal and trade policy basis for intra-African trade in a pilot phase that involved eight countries namely, Cameroon, Egypt, Ghana, Kenya, Mauritius, Tunisia, Tanzania and Rwanda.
During a meeting in Kampala, Uganda, on Tuesday, March 21, the East Africa Business Council (EABC) Vice Chairperson, Simon Kaheru, said: “As Ugandan private sector we are ready to trade under the AfCFTA Guided Trade Initiative and follow our counterparts from Rwanda and Kenya who have already started trading through the agreement.”
Angola reiterates commitment to Continental Trade Zone (ANGOP)
The secretary of State for Trade, Amadeu Leitão Nunes, Monday in Luanda reiterated Angola’s engagement in the implementation of the African Continental Free Trade Area (ACFTA).
Speaking at the opening of the 9th Meeting of the Dispute Settlement Body of the ACFTA, he stressed that the process of its implementation is challenging, especially for those states with greater vulnerabilities in terms of internal structures.
Regarding the meeting, he stressed that the Protocol on Dispute Settlement, a mechanism established by Article 20 of the Framework Agreement, appears as a fundamental instrument to ensure the necessary legal security and predictability.
Amadeu Leitão Nunes added that these are essential aspects for the decision-making of economic operators and investors, in relation to the use of a given market.
Nigeria needs corporate governance to unlock AfCFTA gains – IoD (Businessday)
The Institute of Directors Nigeria (IoD) says strict adherence to corporate governance is necessary for the country to enjoy the benefits that the Africa Continental Free Trade Area (AfCFTA) has to offer.
The president of IoD, Ije Jidenma made this promise at a press conference in Lagos where she announced a year-long lineup of events and activities to mark its 40th anniversary which would be flagged off by a courtesy visit to President Muhammadu Buhari on March 16, 2023.
“With the coming of African Continental Free Trade Area’s agreement, Nigeria needs good directors to be able to navigate the terrain at the continental level,” Jidenma explained.
Gambia urges ECOWAS to accelerate regional infrastructure (The Point)
Speaking at a four-day TMC/ECOSHAM meeting on the validation of the draft ECOWAS standards relating to three regional value chains (mango, cassava and information and communication technologies), Hassan Gaye, DPS Ministry of Trade said: “It is therefore necessary for ECOWAS Commission and its member states to make available to our enterprises and conformity assessment bodies, national and regional standards in order to promote technology transfer, improve the production systems and the competitiveness of our enterprises.”
The development of global value chains, DPS Gaye said, has become a dominant component to promote trade and investment. “The benefits of developing value chains are significant and can be measured in terms of productivity improvements, job creation and poverty reduction.”
“This regional dynamic initiated by ECOWAS Commission must be supported with innovative policies to strengthen the activities of our local production units in order to transform them into medium-sized enterprises as means to bridge the gap between them and multinational companies established in the region.”
Without good governance, development in Africa is dead on arrival, says Mohamed Ibn Chambas (UNECA)
Mohamed Ibn Chambas, the African Union High Representative for Silencing the Guns campaign, has emphasized the vital role of good governance in achieving sustainable development and transformation across Africa.
Speaking at the 2023 Adebayo Adedeji Lecture on the theme of “Governance, Social Contract, and Economic Development in Africa: Looking Back, Projecting into the future” during the ECA Conference of Ministers in Addis Ababa, Ethiopia, Mr. Chambas stated that without good governance, development in Africa is dead on arrival.”
Mr. Chambas highlighted the significance of transparent, accountable, and responsive governments in Africa that play a crucial role in unlocking the continent’s potential for investment and sustainable growth. He emphasized the importance of social contracts between governments and citizens, which is vital for fostering trust and promoting social cohesion. Collaboration between governments, civil society organizations and the private sector is also crucial to achieving the common goal of good governance.
A united Africa is our best chance to weather the storms and create a prosperous Africa for the future, he said, calling for the facilitation of the free movement of persons, goods and services in accompanying the pan-African initiative of the African Continental Free Trade Area (AfCFTA).
Africa must urgently invest in economic recovery, Finance Ministers Urge (UNECA)
Africa should deploy innovative resource mobilization and accelerate economic recovery from multiple crises which have eroded two decades of development gains and increased poverty, Ministers of Finance have urged.
In a Ministerial Statement adopted at the 55th session of the Conference of African Ministers of Finance, Planning and Economic Development, in Addis Ababa, Ethiopia, ministers reiterated the urgency of transforming Africa’s economies and driving industrialization. They underscored the need to expedite economic recovery in Africa which is likely to miss many of the Sustainable Development Goals (SDGs).
Noting that the COVID-19 pandemic, the war in Ukraine and climate change will hinder Africa’s efforts to achieve the SDGs and Agenda 2063, the Ministers said the triple crises have disrupted food and energy markets, exacerbated food insecurity and caused high inflation rates which have pushed millions of Africans into poverty and economic hardship.
The Ministers, therefore, acknowledged the need to stimulate economic recovery and to protect vulnerable populations against soaring inflation – which was forecast to reach 12.4 per cent in Africa in 2023. Rising interest rates, and the tightening of monetary policy by central banks to combat inflation have contributed to the worsening of the already limited fiscal space, the Ministers statement said.
Proposals Made For Establishing A Joint Russia-African Bank (Russia Briefing News)
Burkina Faso, in West Africa, a member of the African Continental Free Trade Area (AfCFTA), has suggested creating a joint bank with Russia to facilitate financial transactions between the two countries and promote trade, according to Ousmane Bougouma, the speaker of the countries Transitional Legislative Assembly stated on Wednesday (March 22).
“I think that when it comes to strengthening cooperation with Russia in key areas of the economy, it is very important that we explore the possibility of creating a joint bank between Russia and Africa with a branch in Burkina Faso,” he said.
The establishment of a joint financial institution will pave the way for broader cooperation between Russia and the West African country, Bougouma said, adding that it would be “useful” for mutual trade and investment.
Egypt Becomes A Member Of The BRICS New Development Bank (Silk Road Briefing)
In a sure-fire move that can be expected to usher in Egypt as a full member of the BRICS grouping, Cairo has taken an equity position within the New Development Bank (NDB). Previous equity was divided equally among the initial members: Brazil, Russia, India, China, and South Africa. It makes Egypt the first new member of the proposed expanded BRICS+ along with Bangladesh and the UAE.
The NBD approved Egypt’s accession in December 2021, while in September 2021 a similar decision was made regarding the United Arab Emirates (UAE), Uruguay and Bangladesh. With the exception of Uruguay, they all became members of the bank this month after jumping through the necessary hoops.
Global trade slows, but ‘green goods’ grow (UNCTAD)
Global trade was worth a record $32 trillion in 2022, but amid deteriorating economic conditions and rising uncertainties, growth turned negative in the last half of the year and is set to stagnate in the first half of 2023. The silver lining was the strong performance of trade in “green goods”, whose growth held strong throughout the year, says UNCTAD’s latest Global Trade Update, published on 23 March.
Green goods, also called “environmentally friendly goods”, refer to products that are designed to use fewer resources or emit less pollution than their traditional counterparts.
Defying the downward trend, trade in such goods grew by about 4% in the second half of the year. Their combined value hit a record $1.9 trillion in 2022, adding more than $100 billion compared to 2021.
DG Okonjo-Iweala: Trade finance is lifeblood for African small businesses (WTO)
DG Okonjo-Iweala emphasized the importance of trade finance for boosting trade growth in Africa. “Trade finance is the lifeblood of trade. Access to trade finance is key to a firm’s competitiveness in international markets,” she said.
She pointed out the significant shortfall in financing for small traders in Africa. According to the African Development Bank’s trade finance survey, the continent rejects about USD 80 billion worth of requests for trade finance annually.
DG Okonjo-Iweala outlined the key findings of the WTO-IFC joint study on trade finance gaps in the four largest economies of the Economic Community of West African States (ECOWAS) — Côte d’Ivoire, Ghana, Nigeria and Senegal - issued in 2022. This revealed that if ECOWAS countries raised the share of trade supported by trade finance to the average African level of 40%, they could gain an extra 8% in trade flows annually. In ten years, this would total USD 140 billion in additional trade.
UN Forum Explores Ways to Enable Transformation in Development Cooperation (IISD)
The President of the UN Economic and Social Council (ECOSOC) convened the eighth meeting of the UN Development Cooperation Forum (DCF), kicking off this year’s SDG financing discussions. The Forum focused on fostering high-impact development in the areas of climate resilience, social protection, and digital transformation while leaving no one behind.
Held under the theme, ‘Prioritizing the Lives and Livelihoods of the Most Vulnerable Through Risk-informed Development Cooperation,’ the Forum met in the ECOSOC Chamber at UN Headquarters in New York, US, from 14-15 March 2023. Recognizing that more than 1.2 billion people are living in
The United Kingdom has adopted a new Developing Countries Trading Scheme (DCTS) which comprises three different regimes – one for least developed countries (LDCs), one for non-LDC economically vulnerable low-income and lower-middle-income countries, and one for other low-income and lower-middle-income countries. Compared to the previous scheme, which largely mirrored the European Union’s, the DCTS makes it easier for an LDC to accede to the intermediary “Enhanced Preferences” scheme when it graduates. For most countries, graduation from the LDC category will have little impact on trade with the United Kingdom, and less impact than it might have had under the previous regime. Impacts will be greater for countries whose main exports are not covered by Enhanced Preferences, such as certain agricultural products, or whose exporters are unable to comply with the more stringent rules of origin than those applied to LDCs.
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On Tuesday 21 March, Kenyan Cabinet Secretary for Investments, Trade and Industry, Moses Kuria, met UK Minister for International Trade Nigel Huddleston in London at the first-ever UK-Kenya Economic Partnership Council Meeting.
Both parties agreed to accelerate work to remove barriers affecting bilateral trade and investment, working with our respective public and private sectors, and discussed the good progress made on the £3.5 billion of green investment deals which UK Prime Minister Rishi Sunak and President William Ruto agreed to fast track at COP27.
The Economic Partnership Council meets once every two years as part of the UK-Kenya Economic Partnership Agreement (EPA), which came into force in March 2021.
The agreement ensures that all companies operating in Kenya, including British businesses, can continue to benefit from duty-free access to the UK market - saving exporters over KES 1.5bn (£10m) every year in duties on products such as green beans and cut flowers.
The Board of Directors of the African Development Bank Group has approved a $30 million Trade & SME Finance Facility for Family bank Limited (FBL) in Kenya. The facility is expected to boost intra-Africa trade, promote regional integration and contribute to the reduction of the trade & SME finance gap in the East African nation.
The Facility is expected to boost intra-Africa trade, promote regional integration, and contribute to the reduction of the trade & SME finance gap in Kenya, by mobilizing significant financial resources for SMEs and local enterprises. This will enhance and deepen value chains, and diversify productive capacity, ultimately stimulating growth in Kenya.
The Bank will provide up to $10 million to support FBL’s short-term trade finance activities of SME’s and local corporates, an up to $10 million Transaction Guarantee facility to support confirmation of trade finance transactions of FBL and up to $10 million targeted Line of Credit to support medium-term financing for SMEs in the health, renewable energy, and
Kenya tea exporters ride on weak shilling, mint fortune at auction (The East African)
While importers in the East African region have been struggling with a dollar shortage that has pushed up the cost of basic commodities, Kenya’s tea exporters have been among the beneficiaries of the country’s a weak shilling, earning more than $1.32 billion (KSh171.7 billion) from the commodity.
The Tea Board of Kenya (TBK) said the country reported an increase in shipments to $1.07 billion (KSh139.21 billon) last year. And due to a weak shilling, the average price of the leaves at the Mombasa tea auction jumped 18.6 percent to an average of $2.49 (KSh324) per kilogram last year.
Increase in export earnings was attributed to depreciation of the Kenya Shilling against the dollar as well as improved prices.
IMF says Somalia to qualify for full debt relief by year end (The East African)
Somalia will be eligible for full debt relief from the International Monetary Fund (IMF) and other multilateral lenders by the end of this year as reforms to boost revenue collection and fiscal transparency begin to bear fruit, the lender has said. Somalia reached the decision point for IMF debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative in March 2020, which saw its debt stock reduce to $3.7 billion from the $5.2 billion it had accumulated by December 2018.
The full debt relief will reduce Somalia’s debt to $557 million, about 10 percent of its gross domestic product, allowing it headroom to address multiple shocks affecting its economic growth and development.
Although it is already in debt distress, the Horn of African nation cannot yet access full debt relief from the IMF until it shows commitment to structural reforms that will ensure “public resources are used effectively and to the benefit of all the Somali people, and efforts to promote stronger economic growth that will lead to more jobs”.
Despite Weaker Naira, Nigeria’s Foreign Trade Surplus Rises By 162% (Leadership News)
Nigeria recorded significant improvement in foreign trade in 2022 with export earnings outweighing import bills by N1.2 trillion, resulting in foreign trade surplus of 162 per cent, despite the weaker value of the Naira during the year. data released by the National Bureau of Statistics (NBS) has shown that minerals export was the major item that pushed Nigeria goods trade surplus to N1.2 trillion in 2022 as export bills (N26.8 trillion) outweighed import earnings (N25.6 trillion) for the first time since the pre-COVID year (N2.23 trillion in 2019).
Nevertheless, the NBS noted that the surplus in 2022 represents an improvement of over 162 percent compared to the 2021 goods trade deficit of N1.94 trillion.
The dollar is no more relevant in trade between India and Tanzania (Business Insider Africa)
Tanzania and India are able to conduct business using their respective currencies, the Tanzanian shilling and the Indian rupee, thanks to a bilateral trade settlement agreement. According to data from the Indian High Commission in Dar es Salaam, the value of trade between the two countries was $4.5 billion (roughly Sh10.4 trillion) in the year ending March 2022. India is one of Tanzania’s largest trading partners.
According to Binaya Pradhan, the Indian High Commissioner to Tanzania, between April 2021 and March 2022, India’s exports to Tanzania totaled $2.3 billion (or about Sh5.3 trillion), while its imports from the East African country were estimated to be $2.2 billion (about Sh5.1 trillion).
Zambia, DRC prepare for battery electric vehicle value chain (New Business Ethiopia)
Zambia and Democratic Congo (DRC), among the top African countries with huge mineral resources, are set to develop battery electric vehicle value chain opening special economic zones.
This is indicated by Mr. Antonio Pedro, Acting Executive Secretary of the United Nations Economic Commission for Africa (UNECA) who opened African economy misters’ meetings in Addis Ababa, Ethiopia this morning.
“This value chain, with the creation of the special economic zone, could unlock a market worth $7.7 trillion by 2025 and $46 trillion by 2050. The Secretary-General has called for a review of the Global Financial Architecture and for a SDG Stimulus of at least $500 billion per year in financing for sustainable development,” Antonio said, mentioning that carbon credit markets could bring in a whopping $82 billion for Africa.
Intra-Africa Trade: Equatorial Guinea and Cameroon ink a new oil deal (Garowe Online)
Equatorial Guinea president Teodoro Obiang Nguema Mbasogo and his Cameroon counterpart Paul Biya, have signed a bilateral treaty that would see the two West African countries cooperate on cross-border oil and gas development and monetization. The agreement was signed during the heads of state summit of the Economic and Monetary Community of Central Africa (CEMAC) countries held in Cameroon last week and is set to bring with it new opportunities for oilfield development and regional energy security.
The African Energy Chamber (AEC), expressed that the agreement will unlock a new era of cooperation, with the agreement serving as a blueprint for other African countries looking at strengthening knowledge sharing, skills and technology transfer, infrastructure development, and local content, all on the back of cross-border oil and gas maximization.
President Ruto wants EAC treaty amended to reflect current status (The East African)
Kenyan President William Ruto wants the treaty establishing the East African Community (EAC) amended to reflect current status of the bloc including its membership.
Speaker of the East African Legislative Assembly (EALA) Mr Joseph Nkakirutimana says the bloc must adapt to the needs of new members including language needs as well as openness to admit new members without restrictions used more than 24 years ago.
When it was formed in 1999, the EAC was recreating the collapsed bloc in 1977 where Kenya, Uganda and Tanzania were members. It later expanded to include Rwanda as well as Burundi in 2007 and later South Sudan in 2016 before the Democratic Republic of Congo (DRC) joined last year.
“Somalia is likely to join after an assessment is completed. There is also a possibility that Ethiopia and Sudan could join the EAC,” the president said at state house, Nairobi.
ECA calls for Africa’s economic growth to be inclusive to reduce widespread poverty (UNECA)
While the world was still fighting the COVID-19 pandemic, the war in Ukraine broke out in early 2022. The impact of the two shocks has been exacerbated by the higher frequency and intensity of natural disasters. The UN Economic Commission for Africa’s Deputy Executive Secretary and Chief Economist Hanan Morsi said that the three overlapping crises have pushed more Africans into extreme poverty and resulted in increased inequalities and vulnerabilities on the continent.
“Today, 546 million people are still living in poverty, which is an increase of 74 per cent since 1990”, stressed Morsi. “Global shocks have ripple effects on the poor in Africa through inflation, which, in 2022, stood at 12.3 per cent, which was much higher than the world average of 6.7 per cent”.
According to recent research, the 10 African countries with the highest levels of poverty in Africa are Burundi, Somalia, Madagascar, South Sudan, the Central African Republic, Malawi, the Democratic Republic of the Congo, Guinea-Bissau, Mozambique and Zambia, in each of which between 60 per cent and 82 per cent of the population is poor
COM2023 calls on member States to harness AfCFTA for Economic Resilience and Inclusion (UNECA)
Panelists at a High-level round-table discussion at the 55th Session of the Conference of African Ministers of Finance, Planning and Economic Development formulated recommendations on how the African Continental Free Trade Area can be leveraged to foster economic resilience, inclusion and recovery.
Chaired by the Director of the ECA Regional Integration and Trade Division, Stephen Karingi, the session, which focused on harnessing the AfCFTA for economic resilience and inclusion made recommendations on how the AfCFTA can be leveraged to foster recovery and transformation in Africa, while also reducing inequality and vulnerability.
Focusing on the potential for the AfCFTA in reducing vulnerabilities, Ms. Treasure Maphanga, Chief Operating Officer, AeTrade Group, Rwanda, told the panel that her organization is a social Enterprise working with the AfCFTA Secretariat to accompany them in the implementation of the agreement. “AeTrade Group has set up a trading platform working with women in businesses and promoting trade”, said Ms. Treasure Maphanga. “What is missing is to set goals, such as how many jobs we are going to create. We need an approach of identifying SMEs, especially women and youth-led who are more vulnerable.”
Africa’s logistics will deliver results as free trade agreement kicks in (WEF)
African logistics have struggled to cater to the country’s growing population and dynamic private sector for far too long. New research suggests that is about to change — and the benefits for the continent’s wider economy could be transformative.
That shift is thanks to the African Continental Free Trade Area (AfCFTA) agreement, which introduces frictionless trade between its African signatories. Signed in February 2021 and now coming into force, AfCFTA is a catalyst for rapid investment and expansion of the continent’s nascent logistics sector, according to a report by the World Economic Forum: AfCFTA: A New Era for Global Business and Investment in Africa.
Improving energy access key to meeting development goals in Africa (UNCTAD)
Although access to energy has increased in sub-Saharan Africa in recent years, it remains low, as more than 50% of the region’s population still lacks access to electricity.
This low access to energy has implications on health, education, poverty reduction and sustainable development, says an UNCTAD report entitled ”Commodities at a glance: Special issue on access to energy in sub-Saharan Africa”, published on 21 March.
“Access to a reliable and quality energy supply is vital to the economic development of any country,” the report says. “It drives industrialization, boosts productivity and economic growth, spurs human development, and is crucial to achieve almost all of the United Nations Sustainable Development Goals (SDGs).”
Why food is the new focus for China’s ties with Africa (South China Morning Post)
China is importing more food products such as avocados, cashews, sesame seeds and chilli peppers from Africa, as agriculture emerges as the new focus of Beijing’s engagement with the continent.
In the first two months of this year, Shanghai ports handled more than 40,000 tonnes of African agricultural products worth more than US$100 million, according to Shanghai Customs.
By March 3, a total of 1,845 tonnes of African sesame had been imported through Shanghai’s Waigaoqiao Port – 4.3 times more than in the same period last year, official data showed.
Africa produces about 65 per cent of the world’s sesame, and Chinese officials say African countries including Mali, Togo, Mozambique, Niger, Tanzania, Ethiopia and Uganda account for 90 per cent of China’s imports of the product.
The State Duma (Russian parliament) in Moscow on 19-20 March holds the II International Russia-Africa Parliamentary Conference aimed at strengthening and developing Russia’s relations with the states of the African continent. Russian President Vladimir Putin addressed the plenary session. He noted that the partnership between Russia and Africa has gained additional dynamics in recent years.
“We are ready to shape the global agenda together, work together to strengthen fair and equitable interstate relations, improve mechanisms of mutually beneficial economic cooperation,” said the head of state.
A more energetic transition to national currencies in financial payments and the establishment of new transport and logistics chains will contribute to the development of reciprocal exchanges. According to the Russian leader, additional opportunities are offered by the process of establishment of the African continental free trade zone, which began in 2021 and is expected to become a continental market with a combined GDP of more than $3 trillion.
Africa and Global Economic Trends – February 2023 (AfDB)
Economic growth in advanced countries continued with a positive growth trajectory in 2022, following strong post covid-19 recovery programs in 2021. However, on a quarterly basis, lower growth rates were recorded in the third and fourth quarter of 2022 compared to the preceding quarter for all the selected economies.
Emerging economies recorded stronger growth, compared to the advanced economies, in the third and fourth quarters of 2022 except in Russia where the economy contracted in the second and third quarters of 2022.
All African countries recorded successive economic growth, of varying magnitudes, on a quarterly basis in 2022, despite incidents of economic contraction in Burkina Faso and Equatorial Guinea during the first and second quarter respectively. Comparing the third quarter of 2022 with the corresponding period of 2021, nine African countries recorded higher economic growth rates, whereas growth was weaker in 15 countries over the same period. Cabo Verde, Seychelles, Rwanda, Uganda and Mauritius were among the countries with the highest quarterly GDP growth rates in the third quarter of 2022, with the rates ranging between 17.1 percent in Cabo Verde and 7.4 percent in Mauritius.
As we gather here, the [African] region is facing a brutal financing squeeze. To be sure, this is not unique to African countries. But this region is the one that can least afford the implications of this squeeze, given Africa’s much-higher level of poverty and remaining development gaps. Africa is where I think much of the incremental global demand for investment and consumption will happen in the coming years—if only because the region is where all incremental global population growth is set to happen. A process well in-train.
Trade Perspectives by DDG Zhang (WTO)
International trade offers LDCs a proven route towards sustainable development. It can contribute significantly to building more resilient economies and lifting millions out of poverty in LDCs. This is why trade is a key pillar of the Doha Programme of Action, which maps out commitments between LDCs and their development partners in 2022-31.
Commitments to help LDCs reap the benefits of trade – including better quality jobs, stronger economic growth and increased productivity – are timely. LDCs’ share of global trade has stagnated at less than 1% in recent years. The Doha Programme of Action sets the ambitious target of doubling agriculture sectors. The facilities will also support women-owned businesses.
Declining coal prices reflect a reshaping of global energy trade (World Bank Blog)
Coal prices have been retreating from their highs in 2022 but they remain well above the 2017-2021 average. Global coal consumption levels reached an all-time high in 2022, led by India and China. On the supply side, increased exports by countries such as South Africa and Colombia—whose combined share in total European imports has been 35% since August 2022—have partially offset the reduction of Russian exports to Europe. Prices are expected to be lower in 2023 (on average) compared to 2022 but remain high by historical standards. Possible supply redirection from the ongoing Russian invasion of Ukraine and a faster-than-expected pace of China’s reopening could impact the outlook of falling prices.
Reduced Russian coal exports to Europe were balanced by increases from Colombia and South Africa. Exports from South Africa to Europe experienced an almost six-fold increase, while exports from the U.S. have remained broadly stable in 2022 (although some were redirected to Europe). Russian exports, which increased overall, have been redirected to China and India, following the EU ban of Russian coal in 2022Q3. Indonesian exports rose 14% in 2022 and reached an all-time high despite two temporary export bans.
Solving the water and sanitation crisis: How technology and innovation can help (UNCTAD)
This year’s World Water Day on 23 March focuses on accelerating change to solve the water and sanitation crisis. About 2 billion people lack safe drinking water, according to UN-Water, and about 5.4 billion don’t have access to safely managed sanitation services. A recent UNCTAD report emphasizes the role of science, technology and innovation (STI) in tackling this crisis.
It says frontier technologies such as artificial intelligence, big data and Internet of Things help in monitoring water and sanitation infrastructure and accelerate progress towards UN Sustainable Development Goal (SDG) 6 on “clean water and sanitation for all”.
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RC: How to boost Tanzania’s exports to India (The Citizen)
Local exporters have been advised to add value to their products instead of selling them in raw form. Raw exports not only fetched lower prices in the international markets but were vulnerable to unpredictability of price fluctuations. “The more we trade raw items, the more vulnerable we remain to the unpredictability of price fluctuations” said the Arusha Regional Commissioner John Mongella.
He raised the concern during a business symposium organised by Tanzania India Business Forum (TIBF) in collaboration with other business stakeholders here on Saturday.
19 new regulations on electrical appliances import, manufacture takes effect Nov 2 (Ghanaian Times)
The Energy Commission will from effective November 2, 2023, begin enforcement of the 19 new regulations on the importation and manufacture of electrical appliances and renewable energy products in the country. This is in line with its mandate under Act 541 passed by Parliament to prevent 20 electrical appliances that do not meet the minimum energy-efficiency performance standard (MEPS) requirements from entering into the country.
The Director of Renewable Energy and Energy Efficiency at the Commission, Mr Kofi Agyarko said the new regulations were to promote effective use and conservative of energy in the country and mitigate related climate change. According to him, the move followed a year’s grace period given to the importers and dealers after the law was passed to transition to dealing in products that mee
Trade minister plans to reduce cost of goods clearance at ports (The Point)
He also said his ministry had engaged shipping agencies and other stakeholders to address price hikes in the country.
“We conducted meetings with shipping and clearing agencies alongside other relevant stakeholders within the value chain with a view to discussing and identifying measures to minimize cost of clearance at the ports,” Minister Joof said.
“One of the key outcomes of these meetings was the identification and scheme lining of services provided by shipping agencies including the terminal and line point handling charges. In this regard the ministry wrote to shipping agencies to streamline their charges based on services they provide to conform to international standards.”
Nigeria pursues a new air cargo roadmap (Africa Aviation News)
Nigerian government is accelerating the country’s air cargo competitiveness by setting up specific committees involving leaders from public and private enterprises to build and operate airports with modern cargo infrastructure.
In a bid to bolster air cargo traffic and infrastructure in Nigeria, the Federal Airports Authority of Nigeria (FAAN) recently set up committees to tackle the major barriers that have continued to retard air cargo development in Nigeria. Experts believe several drawbacks in Nigeria’s air cargo value-chain have put the country at a potentially disadvantaged position in Africa’s unfolding free trade market called the African Continental Free Trade Area (AfCFTA).
The Managing Director of the Federal Airports Authority of Nigeria (FAAN), Capt. Rabiu Yadudu, emphasised the importance of the committees, saying Nigeria should now focus on strategic air cargo development to address deep-rooted challenges that resulted in Nigeria still importing more than it exports. Air cargo has remained significantly low compared to cargo carried by road transportation in Nigeria despite air cargo potentials in the country.
Trade in services to begin under AfCFTA Guided Trade Initiative (The New Times)
Trading of services across the continent will begin in the next phase of the Guided Trade Initiative this year, said Wamkele Mene, Secretary General of the African Continental Free Trade Area (AfCFTA). The initiative launched in July 2022, sought to test the environmental, legal and trade policy basis for intra-African trade in a pilot phase that involved eight countries namely, Cameroon, Egypt, Ghana, Kenya, Mauritius, Tunisia, Tanzania and Rwanda.
According to Mene, the exercise was a success and about 96 value-added products were traded among selected countries. They include air conditioners manufactured in Egypt, Ceramic tiles from Ghana, coffee from Rwanda, among others.
As the Secretariat looks to expand the number of participating countries, meaning those that domesticated the customs requirements to engage in trade under the AfCFTA, Mene said that the services will also be added in the continental trade.
“We have been directed by certain heads of states and governments to expand the scope of the guided trade initiative to include the service sector. That is the objective for this year.”
“This is a critical step to a full operationalization of the AfCFTA,” he emphasized.
Protocol on Digital Trade to be finalised by June 2023 AfCFTA Secretariat (GhanaWeb)
The African Continental Free Trade Area Secretariat has hinted that a protocol meant for digital trading activities will be finalised by June this year. According to Roslyn Ngeno, who is a Senior Investment Expert at the Secretariat, the protocol on digital trade can help unlock the full potential of the free trade pact which can benefit African economies, enhance competitiveness and improve digital inclusion efforts.
“The protocol is envisioned to align our objectives to promote and facilitate trade among members countries under the AfCFTA. The implementation of the protocol will be achieved by establishing clear coherent, transparent, harmonised rules, common principles and old standards for digital trade in order to creating a fair, open, predictable, secure and trustworthy digital trade environment for businesses and consumers”. “We are pleased to report that the negotiations toward the development of the Protocol on Digital Trade have commenced with it expected to be finalized in June 2023.” Roslyn Ngeno made this known when she read a speech on behalf of AfCFTA Secretary General, Wamkele Mene at the third edition of the Mobile Technology for Development Conference held in Accra.
Factors behind EAC region’s 4.5 percent economic expansion (The Citizen)
The services sector and industry played a key role in 4.5 percent growth in the East African Community (EAC) bloc last year. Continued public investments and easing of the global supply chain and Covid-19 related constraints were other contributing factors.
This emerged during the just-ended meeting of the 26th meeting of the EAC Monetary Affairs Committee in Bujumbura, Burundi. The meeting, which was attended by the central bank governors, was told that the economic performance of the region remained strong last year.
A GDP growth of 4.5 percent was recorded in 2022 which was supported by a strong growth of the services and industry sectors.
Africa should invest in people-centered strategies to accelerate economic recovery (UNECA)
Africa – pummeled by a combination of crises – should swiftly invest in and implement people-centered strategies to mobilize financial resources and accelerate continental economic recovery, Economic Commission for Africa, acting Executive Secretary, Antonio Pedro has urged.
Opening the ministerial segment of the 55th Session of ECA’s Conference of African Ministers of Finance, Planning and Economic Development, Mr. Pedro said Africa was at the center of global sustainability transitions, such as decarbonization of production systems, electrification of transportation infrastructure and accelerated use of renewable energy, which he said should underpin Africa’s recovery from the multiple crises.
“We need to adopt measures to mitigate economic and social vulnerability, reduce economic inequality, foster inclusive and resilient growth and accelerate poverty reduction in Africa,” Mr. Pedro, told participants and stressed that Africa needs a people-centered development model that integrates poverty and inequality reduction into national and regional development strategies.
Reducing poverty and inequalities will need inclusive economic policies (UNECA)
Africa needs inclusive economic policies that promote sustainable growth while reducing poverty and inequality, Deputy Executive Secretary and Chief Economist of the Economic Commission for Africa (ECA), Hanan Morsy urged, underlining pro-poor policies as the cornerstone of recovery of the continent.
Noting that Africa was “facing a perfect storm of overlapping and recurring crises” of the COVID-19 pandemic, the war in Ukraine and climate change,” Ms. Morsy said that these crises have exacerbated poverty and inequality, which were already significant before the pandemic.
“There is an urgent need to foster a development model centered around people and to mainstream poverty and inequality into national and regional development strategies,” Ms. Morsy said in a presentation introducing the theme, “Fostering recovery and transformation in Africa to reduce inequalities and vulnerabilities” of the 55th Session of the Conference of African Ministers of Finance, Planning and Economic Development whose ministerial segment opens in Addis Ababa, Ethiopia next week.
The Council of Ministers of the Southern African Development Community (SADC) met on 18-19 March 2023 in Kinshasa, the Democratic Republic of Congo to deliberate on issues aimed at consolidating regional integration, cooperation and development.
The meeting was held under the 42nd SADC Summit Theme, “Promoting industrialization through agro-processing, mineral beneficiation, and regional value chains for inclusive and resilient economic growth”, which takes into account the urgent need to enhance the roll out of the SADC industrialization and market integration programmes in the SADC Regional Indicative Strategic Development Plan (RISDP) 2020-2030.
On his part, the Chairperson of the SADC Council of Ministers, His Excellency Didier Mazenga Mukanzu, Minister of Regional Integration and Francophonie of the DRC called on Member States to redouble their efforts to eliminate all forms of obstacles that hinder SADC’s efforts towards achieving the priorities outlined in the RISDP 2020-2030, particularly in the areas of infrastructure in support of regional integration and industrial development and market integration. He said the removal of these obstacles will enable increased intra-regional trade, job creation and the improvement of the living standards of the people.
Achieving the Vienna, Doha Programme of Action through structural transformation in Africa (UNECA)
Practical and innovative ways to accelerate inclusive economic transformation in Africa took center stage in a session to review progress and set a new agenda in the implementation of the Doha and Vienna programme of action in Africa at the expert’s segment of the 55th Conference of African Ministers of Finance, Planning & Economic Development.
Presentations by the Economic Commission for Africa (ECA) highlighted that despite a greater emphasis on both programmes of action in building productive capacity, boosting agriculture, food security, trade, good governance, and development, most African countries which form the majority of the LDCs have made only limited headway in transforming the structure of their economies to achieve sustainable development.
Intergovernmental Committees of Senior Officials and Experts: A forum to discuss Africa’s challenges (UNECA)
As part of the Experts meeting of the 55th Conference of African Ministers of Finance, Planning and Economic Development being held in Addis Ababa, Ethiopia, the Director of the Sub-Regional Office for Southern Africa, Eunice Kamwendo made a presentation on Thursday on the Intergovernmental Committees of Senior Officials and Experts organized in 2022 by the five Sub-Regional Offices of the United Nations Economic Commission for Africa (ECA).
After presenting the themes, major discussion points, key issues raised and recommendations of the Intergovernmental Committees of Senior Officials and Experts organized by the five ECA Sub-Regional Offices, Eunice Kamwendo cited some of the key interventions of these offices in terms of support to the implementation of the African Continental Free Trade Area (AfCFTA), the development of national plans, and analytical and planning tools.
AFC Boosts Petroleum Refining In Africa With $800m (Leadership News)
The African Finance Corporation (AFC) has deployed about $800 million towards supporting Africa’s refinery sector with an additional $210 million in its near-term pipeline. Cumulatively, the AFC and the African Export Import Bank (Afreximbank) are investing about $16 billion in oil and gas projects across Africa.
Global head, Client Relations at Afreximbank, Rene Awembeng, said the company’s oil and gas portfolio exceeds $15 billion with a healthy pipeline across the entire continent.
Awembeng, made the disclosure at the ongoing African Refiners and Distribution Association (ARDA) conference in Cape Town, South Africa.
At the conference, stakeholders called for retention of funds within the continent to finance the over $190 billion yearly energy investment need of the continent.
Members continue discussion on TRIPS Decision extension to therapeutics and diagnostics (WTO)
Under paragraph 8 of the Ministerial Decision on the TRIPS Agreement, WTO members had agreed to make a decision before 17 December 2022 on whether to extend this Decision to cover the production and supply of COVID-19 diagnostics and therapeutics, confirming members’ right to override the exclusive effect of patents and provide greater scope to take direct action to diversify production of these products through clarifications of existing flexibilities and a targeted waiver over the next five years.
Given that consensus was elusive on the extension, the TRIPS Council decided in December last year to recommend to the General Council to postpone the deadline for such a decision. The General Council on 19 December 2022 agreed to this recommendation and resolved to return to the question of the duration of the extension at its next meeting, held on 6-7 March 2023, where members again agreed to keep the issue open for discussion while substantive discussions continue in the Council for TRIPS.
African Union sustainable funding strategy gains momentum (AU)
At the Extraordinary Summit of the AU held in Niamey, Niger July 2019, the Executive Council adopted the AU budget for the year 2020 at US$647.3 million. Following reforms initiated in the programme planning and budgeting process, the 2020 budget reflects a significant reduction of over US$30 million, compared to the 2019 budget.
The budget reduction further demonstrates an enhanced process of domestic resource mobilisation and stringent measures applied such as the decisive actions taken to address issues of low execution of AU projects and activities; identifying undetected wastages and instances of over-budgeting by departments or organs; as well as ensuring full compliance with the AU financial rules and regulations to ensure the prudent use of these resources to meet the development needs of the continent. The budget also reflects a commitment to strengthen a results-based budget, which enables the AU to improve the credibility of its budget, strengthen financial management capacity and accountability and demonstrate value for money and results to its Member States.
UN Forum concludes with urgent call for nations to scale up development cooperation to better support the most vulnerable (United Nations)
The 2023 Development Cooperation Forum concluded today at the United Nations headquarters in New York with an urgent call from Member States, international organizations and civil society to scale up development cooperation for the world’s most vulnerable people. Over 1.2 billion people are living in countries vulnerable or severely exposed to food, energy and financial shocks, according to UN estimates. Innovative and bold recommendations and solutions were proposed for supporting countries and groups facing ongoing challenges posed by an uneven COVID-19 pandemic recovery, the cost-of-living crisis, and the complex consequences of climate change.
“At a time when we need development progress more than ever, the Sustainable Development Goals are issuing an S.O.S.,” said UN Deputy Secretary-General Amina Mohammed. “Our collective response must involve a major transformation in development cooperation. This transformation should better protect the most vulnerable, especially during crises. It should invest in people. And it should ensure that development cooperation addresses not just urgent needs today but also the needs of tomorrow.”
National roadmaps can help countries to pursue SDGs (University World News)
There is a need for greater investment in research and development (R&D), including the work done by higher education institutions, as well as for the promotion of science and technology-led innovation ecosystems in the world’s least-developed countries, which should link science, technology and innovation (STI) to socio-economic priorities and sustainable development.
The call for increased investment in R&D, one that is frequently heard at high-level policy discussions, was repeated during a round table discussion on 6 March themed, ‘Leveraging the power of science, technology and innovation for the sustainable development of LDCs’. It was part of the 5th United Nations Conference in Doha, Qatar, on the least-developed countries (LDCs).
It comes against a backdrop in which the state of STI in the least-developed countries appears somewhat gloomy.
Black Sea Grain Initiative extended (UNCTAD)
The Black Sea Grain Initiative, signed in Istanbul on 22 July 2022 to resume vital food and fertilizer exports from designated Ukrainian seaports, has been extended. A note to correspondents from the Office of the Spokesperson for the UN Secretary-General announced the extension on 18 March.
“The initiative allows for the facilitation of the safe navigation for the exports of grain and related foodstuffs and fertilizers, including ammonia, from designated Ukrainian seaports,” the note said.
Economic outlook: slightly more optimistic but fragile, says OECD (OECD)
On the back of improved business and consumer confidence, declining food and energy prices and the re-opening of the Chinese economy, the OECD’s latest Interim Economic Outlook projects global growth to reach 2.6% in 2023 and 2.9% in 2024. “The outlook today is slightly more optimistic than our previous forecasts, though the global economy remains fragile,” OECD Secretary-General Mathias Cormann said. “Some key risks, such as persistent large-scale energy and food market disruptions have been mitigated for now, however Russia’s war of aggression against Ukraine, persistence in services inflation, financial market turbulence, and the steady decline in underlying growth prospects, could be sources of further disruption. More targeted fiscal support and structural reforms to revive productivity growth will be key to optimising the recovery and long-term growth prospects.”
DG Okonjo-Iweala: WTO can advance sustainable development goals by delivering results at MC13 (WTO)
The Director-General spoke at the presentation of the 30th Global Trade Alert (GTA) report “Must Do Better: Trade & Industrial Policy and the SDGs.” The report explores the incidence of trade policies on selected SDGs, drawing upon evidence from thousands of trade, investment, industrial and other measures.
“We can be proud of the WTO’s record on SDG targets directly related to the work we do here,” the Director-General said, noting that the Agreement on Fisheries Subsidies reached at the WTO’s 12th Ministerial Conference (MC12) last June directly addresses SDG Target 14.6 on prohibiting certain harmful fisheries subsidies while the MC12 Decision on TRIPS and COVID-19 vaccines is in line with SDG Target 3.3.b on access to affordable essential medicines and vaccines. Likewise, the 2015 Nairobi Ministerial Decision prohibiting the use of export subsidies and equivalent measures contributes to SDG 2.2.b on enhancing agricultural productive capacity in developing and least developed countries.
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Eswatini trade pact to be extended by five years (Taipei Times)
President Tsai Ing-wen and Eswatini Prime Minister Cleopas Sipho Dlamini agreed to extend a bilateral economic cooperation agreement to 2028, a source familiar with the matter said on Tuesday.
Dlamini said he would soon arrange for his country — Taiwan’s sole diplomatic ally in Africa — to renew cooperation with Taipei during talks with Tsai and Premier Chen Chien-jen, the person said.
The two countries signed their first bilateral agreement in 2008 with a term of 10 years, which in 2018 was replaced by a five-year agreement.
The agreement is to include pledges by the Kingdom of Eswantini to continue supporting Taiwan’s bid to join international organizations, and for Taipei to facilitate the African nation’s economic development, the person said.
South Africa to make local content in procurement compulsory (Supply Management)
South Africa’s government has announced plans to tighten legislation to ensure government procurement favours local suppliers.
Cathrine Matidza, director of fleet procurement at the Department of Trade, Industry and Competition, told a webinar that current legislation – which makes local content requirements optional for state organs – was temporary and would soon be replaced.
She said the government was working on legislation to ensure mandatory procurement of locally-produced and manufactured products in some sectors of the economy.
A constitutional court decision last year overturned South Africa’s 2017 preferential procurement regulations and scrapped mandatory local content requirements for organs of state.
Joint Communiqué on the State Visit and 2nd Bi-National Commission by Her Excellency, Dr Samia Suluhu Hassan, President of the United Republic of Tanzania (South African Government)
At the invitation of His Excellency, Mr Cyril Matamela Ramaphosa, President of the Republic of South Africa, Her Excellency, Dr. Samia Suluhu Hassan, President of the United Republic of Tanzania, paid a State Visit from 15 to 16 March 2023 to Pretoria, the Republic of South Africa.
The Presidents also exchanged views on the Agreement on the African Continental Free Trade Area (AFCFTA) and the Tripartite Free Trade Area (TFTA) between the South African Development Community (SADC), the Common Market for East and Southern Africa (COMESA) and the East African Community (EAC) and how these instruments when ratified could bring economic benefits.
The two Heads of State participated in a Business Forum held under the theme Forging a New Deal between South Africa and Tanzania Towards High Levels of Trade and Investments”. The Forum brought together Businesspersons and representatives from the Private Sector to discuss trade and investment opportunities in the two countries. The two sides, inter alia, emphasised the importance of expanding trade and investment activities in order to drive bilateral strategic engagement forward and the need to address any barriers to trade
Nigeria’s call for inclusive G20 (The Sun Nigeria)
The recent call by the Minister of Foreign Affairs, Geoffrey Onyeama, for the permanent membership for Nigeria and the African Union (AU) in the Group of 20 nations, (G20), is a step in the right direction. The minister, who made the call in New Delhi, India, during the 1st Foreign Ministers’ Meeting under India’s Presidency of G20, also called for a reform of the United Nations Security Council (UNSC), the International Monetary Fund (IMF) and the World Bank, for more participation by member states.
Onyeama anchored the demand on the fact that as the largest economy in Africa, with stable and uninterrupted democratic governance, Nigeria is eminently qualified to become a permanent member of G20 in the nearest future.
According to him, Nigeria attaches significant importance to the G20 as the premier forum for global economic cooperation and its role in shaping and strengthening global architecture and governance on all major international economic issues and other fields that are of concern to members and the world at large. He, therefore, expressed the desire of the country to work closely with the G20 and its members to address issues of concern in the world, including the need to develop digital health solutions; vocational training and technology transfer to the South. Other areas of interest, Onyeama pointed out, included digital finance and financial inclusion in developing countries; holistic approach to debt burden, climate change and post-pandemic recovery measures.
IATA Signs Deal To Enhance Ground Safety At Mauritanian Airports (Simple Flying)
The International Air Transport Association (IATA) and Afroport Mauritanie yesterday signed an agreement to enhance the safety of ground operations in Mauritania.
The agreement is aimed at two critical global standards; the IATA Ground Operations Manual (IGOM) and the IATA Safety Audit for Ground Operations (ISAGO).
“The commitment of Afroport Mauritanie to IGOM and ISAGO will help further Mauritania’s social and economic development with safer ground operations. Lower adoption rates for global standards rank high among the factors limiting the benefits that aviation could deliver in Africa. This agreement is a great example for airports across the African continent to follow.”
Aviation has the potential to make an essential contribution to the economic growth and development within Africa. It is crucial now more than ever as the aviation industry has almost fully recovered from the pandemic and as stakeholders campaign for the Single African Air Transport Market (SAATM) and the African Continental Free Trade Area (AfCFTA).
Enough wheat for eight billion loaves of bread shipped to Africa from Ukraine since last year (News24)
Ukraine shipped enough wheat to developing African countries last year to bake eight billion loaves of bread, US Secretary of State Antony Blinken said on Wednesday. He was speaking in Ethiopia before he travelled to Niger to complete his African visit.
The wheat was shipped under the Black Sea Grain Initiative, which was agreed upon between Ukraine and Russia to allow grain passage to other parts of the world during the war between the two countries. The United Nations (UN) brokered the deal.
He said: Over four million metric tonnes of wheat have gone directly to developing countries as a result of that initiative – that is the equivalent of eight billion loaves of bread. Millions rely on the Black Sea Grain Initiative. It cannot be allowed to lapse.
Since Russia invaded Ukraine, African countries have been exposed to rising fertiliser and food prices. In contrast, aid has decreased, with some channelled to Ukraine. That showed the world that Africa needed a long-lasting solution to its food security issues.
Addressing multiple shocks can turn around Africa’s economic growth (UNECA)
Africa’s economic growth is projected to rise slightly to 3.9% after a considerable decrease to 3.6 per cent over the past year in 2022, says an overview report of recent economic and social developments in Africa by the Economic Commission for Africa (ECA).
Presenting the report’s analysis at the ongoing Experts meeting ahead of the 55th Conference of African Ministers of Finance, Planning and Economic Development in Addis Ababa, Ethiopia Adam Elhiraika, ECA Director, Macroeconomics and Governance Division centred the complex economic and financial picture on the confluence of shocks that slowed down the global economy. These include the COVID-19 pandemic impact, the rise in prices fueled by the conflict in Ukraine and extreme weather patterns.
“The result is that Africa currently accounts for the largest share of the world’s poor, with 149 million previously non-poor Africans now facing the risk of falling into poverty,” he said.
In spite of economic growth recovery, Africa still needs to curb poverty and social inequality (UNECA)
With slower economic growth and high inflation, many African countries continue hardly to strengthen the continent’s development after experiencing a series of severe and mutually reinforcing shocks. Mr Adam Elhiraika, Director of the Macroeconomic Policy Division at ECA explained that the COVID-19 pandemic, the Ukrainian war and resultant food and energy hurdles, rising inflation, debt tightening, and natural disasters brought some serious developmental challenges on the continent such as poverty and inequality rates and lack of decent jobs.
According to ECA, in 2022 an additional 18 million new poor emerged in Africa. The continent had more than half of the highest proportion of the world’s poor at 54.8 per cent. This is alarming because 546 million people were living in poverty last year, which is more than half of the continent’s population.
IRU charts hope on surmountable road transport challenges with trade unions (IRU)
IRU’s Secretary General has outlined solutions to key challenges facing the road transport sector at the global road transport trade union conference held in Johannesburg, South Africa.
Starting with the Covid-19 pandemic, several crises have struck the road transport industry in recent years, leading to supply chain instabilities and exacerbating other long-standing challenges, such as excessive border queues.
IRU Secretary General Umberto de Pretto addressed some of these key issues at the global road transport trade union conference,
One of the most critical issues facing the road transport industry is the shortage of drivers. IRU’s 2022 driver shortage survey found that unfilled commercial driver positions are continuing to increase at alarming rates across the globe.
Central Africa Calls for Investments to Counter Impact of Russia’s War (VOA)
Central African economy ministers are calling for investing in energy and farming as Africa’s poorest region struggles to recover from natural disasters, armed conflicts, and fallout from Russia’s invasion of Ukraine. Heads of state from the six nations of regional bloc CEMAC meet Friday to discuss the challenges.
Economy and integration ministers of the Central African Economic and Monetary Community, CEMAC, say most of their 55 million civilians live in abject poverty that has only been made worse by the last few years of global troubles.
President of CEMAC Daniel Ona Ondo said the ministers’ meeting strongly recommended huge investments in agriculture and energy to end over dependency on imported food and petroleum products from Russia and Ukraine.
The Africa Centres for Disease Control and Prevention (Africa CDC) hosted its lead partners at a meeting on the sidelines of the Africa Health Agenda International Conference 2023 held in Kigali, Rwanda.
The meeting, which took place from 9-10 March, was dedicated to identifying a clear set of annual objectives and deliverables for the Partnership for African Vaccine Manufacturing (PAVM) in 2023.
The Partnerships for African Vaccine Manufacturing was established by the African Union, under the Africa CDC, in 2021, to enable the African vaccine-manufacturing industry to develop, produce, and supply over 60 percent of the total vaccine doses required on the continent by 2040, up from less than 1 percent. PAVM’s vision is to build manufacturing capacity to produce at least 1.5 billion vaccine doses per year by 2040.
“Safeguarding Africa’s health can only be achieved through our ability to manufacture the health products we need on the continent. The new public health order outlines it well in its Pillar 2: Expanded Manufacturing of Vaccines, Diagnostics, and Therapeutics to democratize access to life-saving medicines and equipment,” said Dr. Ahmed Ogwell, Acting Director of Africa CDC.
ARDA Week: Cleaner Fuels, Vehicles will Contribute to Emission Reduction (Energy Capital & Power)
Marietta Harjono, Inspector-General of the Human Environment and Transport Inspectorate (ILT), presented a study which focused on the fuel exports and used vehicles in the Economic Community of West African States (ECOWAS) at the African Refiners & Distributors Association (ARDA) Week in Cape Town on Wednesday.
“We believe that oil companies and traders should supply cleaner fuels with the compliance of the policy rule that the ILT has published,” she said. She further emphasized that countries that implement these regulations are likely to receive younger and better vehicles which in turn benefits air quality, road safety and overall health and environmental well-being.
Africa’s trade potential for resilience in the face of unprecedented shocks (Maersk)
Global trade has recently experienced unprecedented shocks as the world grapples with the consequences of Covid-19, protracted geopolitical conflicts, and rising energy costs.
According to the International Monetary Fund (IMF), African nations were some of the hardest hit by the food crisis caused by protectionist policies implemented by exporters after the Ukraine-Russia conflict began. As a net food importer, the continent saw specific commodity prices rise by as much as 70% in some nations, with the IMF reporting that global food commodity prices rose by 23.1% in 2021.
Furthermore, according to the World Bank, global oil prices surged as several large oil companies stopped operations in Russia causing a demand increase for oil and gas coming from the Middle East and OPEC.
What’s the Africa global trade situation?
Despite economic shocks, the continent is still a source of several key global trade commodities that can support trade resilience. Africa, according to the United Nations, is home to 30% of the world’s mineral reserves, 12% of its oil, and 8% of natural gas. As home to 65% of the world’s arable land and 10% of renewable fresh water, Africa has also been a significant agricultural producer exporting fresh produce to the Middle East, Europe, and beyond.
African Economies in a Multipolar World | by Anzetse Were (Project Syndicate)
Governments, businesses, and citizens are navigating a global economic slowdown and levels of inflation not seen in decades, and Africa is no exception. Economic scars from the COVID-19 pandemic, supply shocks from the Russia-Ukraine war, and severe droughts in the Horn of Africa have created significant economic strain. Africa’s public debt is approaching the unsustainably high levels of the early 2000s, and the substitution of low-cost long-term multilateral debt by private funds has driven up debt-servicing costs.
But it is not all doom and gloom. While startup funding declined globally in 2022, African startups had accumulated more than $4.85 billion by December – a 4.75% increase from the previous year. This partly reflects Africa’s increasingly dynamic digital economy, which is expected to grow sixfold by 2050, from an estimated $115 billion to $712 billion. African countries have also managed the COVID-19 pandemic fairly well, owing to a rapid and coordinated response, and it was South African researchers who quickly identified the soon-to-be-dominant Omicron variant in late 2021.
Perhaps most important, Africa-China economic relations are now maturing and entering a new phase, after having grown immensely over the past two decades. Looking ahead, Africa-China economic engagement will be influenced by four factors: Africa’s public-debt distress, China’s changing approach to development finance, a deepening focus on soft power and diplomatic relations on both sides, and the changing composition of African economic interests.
Mozambique, Sierra Leone shows importance of peace for globalisation (Africa Aviation News)
The latest DHL Global Connectedness Index (GCI) rebutted the notion that a major retreat from globalization is underway and highlighted the 10 countries where global connectedness increased the most from 2001 to 2021 which included Mozambique and Sierra Leone.
“Mozambique and Sierra Leone exemplify the importance of peace and security for global connectedness. Both countries experienced a marked rise in connectedness following the conclusion of civil wars,” it reads.
“The latest DHL Global Connectedness Index data clearly debunks the perception of globalization going into reverse gear,” John Pearson, CEO of DHL Express, concludes. “Globalization is not just a buzzword, it’s a powerful force that has transformed our world for the better. By breaking down barriers, opening up markets and creating opportunities, it has enabled individuals, businesses and entire nations to flourish and thrive like never before.”
Green technologies: Coherent policy action needed for developing countries to reap the benefits (UNCTAD)
Green technologies – those used to produce goods and services with smaller carbon footprints – are growing and providing increasing economic opportunities but many developing countries could miss them unless national governments and the international community take decisive action.
UNCTAD’s Technology and Innovation Report 2023 published on 16 March warns that economic inequalities risk growing as developed countries reap most of the benefits of green technologies such as artificial intelligence, the Internet of Things and electric vehicles.
“We are at the beginning of a technological revolution based on green technologies,” UNCTAD Secretary-General Rebeca Grynspan said. “This new wave of technological change will have a formidable impact on the global economy. Developing countries must capture more of the value being created in this technological revolution to grow their economies.”
Women hold up half the sky — but men still rule the digital world. It is time to change this outdated reality, starting with four areas for action. Unless we close the digital gender gap, women will be left farther behind as societies reap the benefits of technological advances.
Women entrepreneurs are already pushing the frontiers of innovation. We must support them and unleash their full power if we are to achieve the Sustainable Development Goals.
Closing the digital gender divide and fostering inclusive innovation will not only benefit women and girls. Exclusion hurts everyone.
It is estimated that women’s exclusion from the digital world has taken $1 trillion from the gross domestic product (GDP) of low- and middle-income countries over the past decade. This lost productivity translates to billions of dollars in lost taxes and investments in public services.
The LDC graduation pathway must not disrupt overall sustainable development, says UN deputy chief (UN News)
LDCs are assessed using three criteria: income per capita, human assets and economic vulnerability. Countries that meet two of the three LDC criteria become eligible for graduation from the category. They may also qualify if the GNI per capita of the country is at least twice the graduation threshold ($2,444) in two consecutive reviews.
Today, the category comprises 46 countries. So far, six countries have graduated from LDC status between 1994 and 2020. Sixteen others are on path to graduation and the Doha Programme of Action, or DPoA – which aims at removing structural obstacles to comprehensive growth and sustainable development – sets the aspirational goal of 15 additional countries – many of them African countries that have yet to attain the graduation criteria.
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Egypt’s trade deficit plunges 54% YoY in December 2022: CAPMAS (ZAWYA)
Egypt’s trade balance deficit dropped by 54% year on year (YoY) to $1.93 billion in December 2022, compared to $4.20 billion in the same month of 2022, according to a press release published by the Central Agency for Public Mobilization and Statistics (CAPMAS) on March 14th.
The value of Egyptian exports slipped by 2.7% YoY to $4.18 billion in December 2022 from $4.29 billion, the CAPMAS added. The decline in exports’ value was driven by lower value of some goods, including crude oil, petroleum products, plastics, and ready-made garments that dropped by 45.1%, 41.2%, 31.4%, and 4.8%, respectively.
Indonesia plans to expand export markets to Africa (VietnamPlus)
Africa has a huge potential of becoming a destination for Indonesia’s manufacturing exports, besides its traditional markets such as the US, the EU, or China, according to the Indonesian Chamber of Commerce and Industry (Kadin). Although its purchasing power still falls behind other traditional export markets, Africa is also promising in terms of market size growth and trade competition. Not many exporters have entered the African market, and the continent’s trade barriers are not as sophisticated.
Speaking at a conference on March 14, Kadin deputy chairwoman Shinta W Kamdani said that Indonesian exports can enter and compete in Africa, particularly manufacturing products as African countries generally lack basic manufacture.
Panel unpacks how tech is influencing successful farming ventures (Engineering News)
As the world undergoes a revolution towards greener and more digitalised technology, and the need to feed almost ten-billion people by 2050 looms, there is consensus from experts speaking at Africa Agri Tech 2023 that farmers need to equip themselves with knowledge and plan for the future.
Industry body BerriesZA CEO Brent Walsh said the agricultural industry was at a critical point across the value chain, which necessitated farmers understanding their operations from land preparation to transport, and knowing what may impact on profitability under certain scenarios, over both a five-year and ten-year period.
He explained that the agricultural landscape had evolved to placing much more emphasis on relationships with stakeholders and what could help to shape and influence the ‘ideal’ operation.
Trade and Industry programmes boost economic performance (SAnews)
The Department of Trade, Industry and Competition (dtic) has tabled in Parliament its 2022/23 quarter three report, which highlights efforts made to help businesses navigate economic pressures and the persistent load shedding.
Minister Ebrahim Patel on Tuesday presented the report to Parliament’s Portfolio Committee on Trade, Industry and Competition. The presentation took note of global economic developments such as commodity price fluctuations and inflation, while providing insight into South Africa’s own economic position.
Patel particularly noted the impact of load shedding and outlined efforts made by the dtic to address this urgent and important issue.
The dtic’s efforts include a R1.3 billion energy resilience scheme facility to support companies affected by load shedding; promote investment, cut red tape and establish an Energy One-Stop Shop, managed by InvestSA. The dtic has also made interventions to improve energy efficiency and to implement an energy resilience scheme, among others.
Power cuts are hurting small businesses in South Africa - but sharing resources and equipment might be a solution (The Conversation)
Worldwide, small and medium enterprises (SMEs) are seen as the backbone of a thriving economy. They make up a substantial portion of the total number of companies and are estimated to contribute over 87% of all jobs globally.
A recent World Economic Forum report showed that major disruptions affect the value chain of SMEs significantly more than they affect larger enterprises. Disruptions, such as COVID-19 and geo-political tensions, often lead to failure among these businesses.
In South Africa, an example of a significant risk to SMEs is the acute shortage of power. Power outages mean that they can’t operate. No production or trade is possible, and inventory is damaged. The enterprises can’t plan and execute their operations effectively, or meet the demands of their customers. They can lose revenue and customers.
South Africa’s acute power shortages are likely to go on for some time. But we believe that the concept of the sharing economy holds promise to minimise disruptions.
Experts call for policy review to grow Kenya’s trade (The Star)
Kenya needs to address existing obstacles that hinder regional business in order for its trade sector to achieve full potential, according to policy researchers. Kenya Institute for Public Policy Research and Analysis (KIPPRA) says the concentration of goods and services to a few varieties and export markets has limited the trade sector’s performance.
KIPPRA Executive Director Rose Ngugi in the brief says the state will need to finalise the implementation of the Medium-Term Plans (MTP’s) on proposed trade flagship projects that are still lagging.
This, she says, will include the construction of one-tier markets that are yet to be completed, including mapping out all the products exported to and imported within African to boost trade performance.
“To enhance trade performance and achieve economic resilience it is imperative to strategise in taking advantage of the opportunities brought by operationalisation of the African Continental Free Trade Area (AfCFTA) and other trade agreements,” said Ngugi.
Kenya suspends ban imposed on powder milk imports (The East African)
Kenya has suspended a recent ban on the importation of milk powder into the country “to allow for the Dairy Industry (Import and Export) Regulations 2021 to apply accordingly”.
The Kenya Dairy Board had on March 6 announced an indefinite suspension of milk powder imports in move seen as protecting processors and farmers from lower prices since the milk powder imports could lead to a glut in the market since the anticipated seasonal rains are expected to significantly boost local milk production and reduce the need for imports.
But in a statement dated March 14, 2023, Kenya’s Agriculture and Livestock Development Permanent Secretary Harry Kimtai announced the suspension of the ban on the milk powder imports.
“Take note that the importation of products under the East African Community (EAC) protocol refers to good being imported from outside the East African Community, while good traded within the EAC are referred to as transfers,” Mr Kimtai said.
Entrepreneurship Policy Review - Uganda (UNCTAD)
The Entrepreneurship Policy Framework and Implementation Guidance aims to support developing country policymakers in the design of initiatives, measures and institutions to promote entrepreneurship. It identifies policy objectives and options in the form of recommended actions, and proposes checklists, case studies and good practices. It also offers a user guide and methods for policy monitoring and evaluation, suggesting a set of indicators to measure progress.
Uganda has a number of well-crafted policies and strategies that describe actions to be taken to promote the development of entrepreneurship and MSMEs.
The National Entrepreneurship and MSMEs Strategy (NES) engaged a holistic approach and examined a variety of ways to create and nurture the synergies between the different pillars of UNCTAD’s Entrepreneurship Policy Framework (EPF); Uganda’s MSMEs Policy of 2015; and the National MSMEs Strategic Plan 2016/2017-2020/21.
Mauritius: Pre-Budget Consultations 2023-2024 kickstart today with representatives of the Confederations of Trade Unions (Republic of Mauritius)
The first Pre-Budget consultative meeting in the context of the forthcoming Budget 2023-2024 with representatives of the Confederations of Trade Unions was chaired, this afternoon, by the Minister of Finance, Economic Planning and Development, Dr Renganaden Padayachy, at the Conference Room of the Ministry, in Port Louis.
The President of the NTUC, Mr Narendranath Gopee, highlighted that discussions with the Finance Minister focused on the Statutory Bodies Act and the need to be more transparent on the contracts allocated by Government.
Economic diversification away from oil is crucial for reversing recent economic setbacks in the Republic of Congo and put the country on a pathway to long-term prosperity, says the World Bank in its latest Country Economic Memorandum report on the country. The cost of over-reliance on oil has been painfully apparent in the past decade. A seven-year recession, induced by the end of the last oil-boom cycle, has led to a dramatic drop in income per capita, shrunk the size of the economy and weakened long-term growth prospects. While oil prices have surged more recently, returning Congo’s economy to growth in 2022, the current development model is unlikely to deliver sustainable economic growth and productive jobs going forward.
Attaining sustainable development in Congo urgently requires efforts to diversify national assets, focusing on stronger institutions, development of human and physical capital, and a more balanced exploitation of natural resources, says the report, titled Congo’s Road to Prosperity: Building Foundations for Economic Diversification.
GCB Bank completes first Pan-African Payment and Settlement System client transaction in Ghana (Myjoyonline)
GCB Bank Plc, one of the largest banks in Ghana, on 8 March 2023 announced it successfully completed the first Pan-African Payment and Settlement System (PAPSS) client transaction in Ghana. The transaction involved a Ghanaian incorporated entity initiating a supplier payment from GCB in Ghana Cedis to a beneficiary in Nigeria who received the payment in Naira instantly. This innovation revolutionalizes the way Ghanaian individuals and businesses trade with the rest of Africa.
Uganda urges the West to end NTB to boost trade with Africa (Garowe Online)
Uganda’s Deputy Speaker, Thomas Tayebwa has asked the Inter-Parliamentary Union (IPU) member states to remove all Non-Tariff Barriers [NTB] saying that they are a hindrance to the entry of goods, especially from developing countries. While addressing the 146th Assembly of the Inter-Parliamentary Union in Manama, Bahrain, Tayebwa listed bottlenecks that are hampering the growth of some member states
“Sometimes your supermarket shelves are empty when we have fruits, vegetables, and other agricultural products rotting in our countries,” he said. Currently, the IPU comprises 178 member parliaments and 13 associate members. Tayebwa challenged the developed world to work with developing countries to add value to their products.
Kenya expects further trade ties with China (China Daily)
Trade relations between China and Africa are expected to see a further rise this year, with the easing of the COVID-19 pandemic, the head of the International Chamber of Commerce-Kenya said. Julius Opio, director of the chamber, said there are many opportunities for both Africa and China to enhance their trade relations this year and beyond, following further relaxation of COVID-19 policy in China that will facilitate international personnel exchanges.
In addition, the disruption of logistics over the last three years has created shortages of critical goods, so it is an opportunity for China to consider setting up manufacturing units in Africa.
He said Kenya, for instance, the biggest economy in eastern Africa, has the capacity, skills and sufficient energy to run factories and that it can become the hub to re-export products across Africa. “That way, it becomes a win-win situation whereby we create more jobs in Kenya at the same time importing materials from China for local assembly and manufacturing,” he said.
Sectors such as electronics, information technology, hospitality, renewable energy and agriculture offer huge China-Africa trade opportunities this year.
Nigeria, Japan deepen partnership as trade value hits $10bn annually (Daily Trust)
The Executive Secretary of the Nigerian Investment Promotion Commission (NIPC), Hajiya Saratu Umar, has reiterated the federal government’s effort to partner with the Japanese government to explore areas of business partnerships to deepen the investment drive of both countries.
Speaking on the rationale behind the visit, the Japanese ambassador noted that Nigeria has been a strategic business partner as the value of trade volume between the two countries now stands at $10 billion annually with expectations that the figure will rise in the coming years.
He said: “Nigeria’s trade volume with Japan has reached 10 billion dollars, and it is growing, which is why we are visiting to reiterate our partnerships and build on it especially after the recently held Nigeria Japan business forum which provided a very good opportunity to forward business relationships.
EU slams Algeria’s barriers on trade with Spain (The North Africa Post)
Head of EU Diplomacy Josep Borrell called, on Monday during his two-day visit to Algiers, for a solution to Algeria’s barriers on trade with Spain, introduced in June 2022.
“The barriers introduced [by Algeria] to trade with Spain, since June 2022, must find a solution,” said the High Representative of the European Union for Foreign Affairs and Security Policy and Vice-President of the European Commission.
Since last June, the European Commission has “regularly expressed its concern about the trade implications” of Algiers’ decision, “in particular the blocked shipments from Spain.
“Trade policy is an exclusive competence of the EU” and therefore Brussels “is ready to take action against any measure applied against a member state,” stressed Miriam Garcia Ferrer, spokeswoman for the European Commission for Trade, in a recent statement to the Spanish news agency Europa Press.
Business and trade between Spain and Algeria have been blocked since last June.
Kenya Asks EAC To Harmonize Legal Framework To Promote Aquaculture Trade (Kenya News Agency)
Kenya has called upon other East Africa Community States to consider harmonization of the legal frameworks, that would ensure smooth movement of aquaculture products across the borders.
In a speech read on her behalf by Fisheries and Blue Economy Secretary, Lucy Obungu, during the official opening of the second Eastern African Regional Aquaculture Conference and Exhibition, at the Jaramogi Oginga Odinga University of Science and Technology, the Principal Secretary (PS), Ministry of Mining, Blue Economy and Maritime Affairs, Betsy Muthoni Njagi, said the engagement of the East African countries should ensure seamless flow of goods and professional services in the region.
While the need to transition to a cleaner energy future is a global priority, Africa’s energy poverty challenges require strong and immediate solutions, of which investment in infrastructure to strengthen energy supply and access is predominant. In line with this, Rene Awambeng, Global Head and Director, Client Relations at pan-African multilateral financial institution the African Export-Import Bank (Afreximbank) delivered a presentation during this year’s edition of the African Refiners & Distributors Association – taking place from March 14-17 in Cape Town.
The presentation, under the theme, ‘Financing Infrastructure Projects to Accelerate Africa’s Energy Transition,’ tackled emerging trends across the African energy sector, with Awambeng making a strong case for increased infrastructure investment with the aim of accelerating the continent’s energy transition.
Road to COP28: African negotiators convene in Nairobi for climate policy talks (The Standard)
Negotiators from over 33 African countries are meeting in Nairobi to reflect on COP27 outcomes and develop a common African position on climate action pertaining to agriculture and gender for COP28. The meeting, convened by the African Group of Negotiators Experts Support (AGNES) for the next four days aims to define policy solutions to tackle the ongoing climate crisis in Africa, which is compounding food insecurity on a continent already severely afflicted by hunger and malnutrition.
The African Group of Negotiators and other African voices have been pushing for agriculture to be formally recognised in the UNFCCC negotiation process.
Horn of Africa ministers seek private sector backing for projects (The East African)
Finance ministers from the Horn of Africa are seeking ways to attract more private sector backing for projects in infrastructure, energy and technology, to better build economic resilience as drought and inflation bite.
The leaders met under the Horn of Africa Initiative (HoAI) in Nairobi this week and agreed to develop a “comprehensive” private-sector engagement strategy, which is expected to be tabled at the next meeting in October.
This is projected to help bridge the existing funding gap that has slowed down the implementation of the initiative’s priority areas: infrastructure development, trade and economic integration, building resilience and human capital development.
Kenya’s Treasury Cabinet Secretary Njuguna Ndung’u, who chaired the closed-door ministerial meeting, said private sector finance will enable the execution of the region’s projects in infrastructure, energy, digital markets, trade and economic integration.
Africa must lead the charge on tackling poverty (UNECA)
Africa must lead the charge in mobilizing domestic resources to recover from multiple economic and social crises which have deepened poverty and widened inequality on the continent, Acting Executive Secretary of the Economic Commission for Africa, Antonio Pedro, has urged, warning that Africa risks missing the Sustainable Development Goals.
“Africa currently leads in global poverty,” Mr. Pedro told participants at the 41st meeting of the Committee of Experts that kicked off today, ahead of next week’s Conference of African Ministers of Finance, Planning and Economic Development Addis Ababa, Ethiopia.
Mr. Pedro cautioned that without bold financial and climate action, Africa will be locked into a poverty trap. With more than half of the world’s poor – 54.8 per cent in 2022 being in Africa, the continent had overtaken South Asia with 37.6 percent, while the COVID-19 outbreak had pushed 62 million people into poverty in just one year, with an additional 18 million estimated to have joined their ranks by the end of 2022.
The Africa we want: a roadmap out of poly-crises for policy makers (UNECA)
The confluence of shocks – the cascading impact of the COVID-19 pandemic, the war in Ukraine and severe natural disasters – have eroded Africa’s development gains, resulting in a staggering 149 million previously non-poor Africans now facing the risk of falling into poverty.
The growing number of new poor and vulnerable people is making it harder to close the gap between the rich and the poor. Moreover, Africa currently accounts for the largest share of the world’s poor. This inevitably has a far-reaching impact on achieving the sustainable development goals and the vision of the Africa we want.
The crisis, however daunting, presents an opportunity for the African ministers of finance, planning and economic development assembling in Addis Ababa from 15-21 March 2023, to make concerted efforts on providing concrete solutions. The theme, fostering recovery and transformation in Africa to reduce inequalities and vulnerabilities, should yield long term actions to move the continent forward on a path of prosperity.
Two African banks stake $16 billion in oil, gas projects (The Guardian Nigeria)
About $16 billion is being invested in oil and gas projects across Africa by the African Export Import Bank (Afreximbank) and the African Finance Corporation (AFC). This was disclosed yesterday at the ongoing African Refiners and Distribution Association (ARDA) conference in Cape Town, South Africa.
This is coming as stakeholders at the conference urged Africans to keep funds within the continent to finance the over $190 billion yearly energy investment needed on the continent.
Of the banks’ investment, $15 billion of the funds is being invested by Afreximbank while AFC already invested over $800 million with additional over $200 million expected to be finalised.
Afreximbank Boss To Speak On Economic Growth (Economic Confidential)
The President and Chairman Board of Directors of African Export-Import Bank, Professor Benedict Oramah, will lead discussions on critical issues that will give further insights into the economic transformation of Africa at the 2023 Annual Lecture of The Chartered Institute of Bankers of Nigeria.
Scheduled to hold on March 29, 2023, the theme of the lecture which will hold in Lagos is, “Unlocking the Constraints to Africa’s Economic Transformation: Insights into the Power of Capital.”
According to a statement by the CIBN, the institute intends to keep members of the public constantly abreast of topical economic issues and policies of government at the national and international levels.
The African Development Bank and partners on Tuesday launched a new Investment in Digital and Creative Enterprises (iDICE) programme.
The initiative, with investments totalling $618 million, will attract direct investments in more than 200 technology and creative start-ups and provide non-financial services to about 450 digital technology, small and medium enterprises. With a potential to generate $6.4 billion into the Nigeria’s economy, iDICE is expected to create 6 million new jobs for young Nigerians.
Afreximbank, EIB unveil €200m pharmaceutical financing scheme for sub-Saharan Africa (The Independent Uganda)
The European Investment Bank (EIB), the world’s largest multilateral bank, and Afreximbank, the pan-African multilateral financial institution, have joined hands to finance healthcare and pharmaceutical manufacturing projects across sub-Saharan Africa in an attempt to strengthen health resilience on the continent.
Afreximbank and the EIB will each provide €100 million new investment to update and expand public healthcare facilities and enhance production of safe, affordable and effective medicines across sub-Saharan Africa.
The new Africa health financing initiative, part of the European Union Global Gateway initiative, has been designed by health, financial and technical experts from EIB and Afreximbank to unlock crucial investment to improve access to local healthcare and scale-up production of medicines essential to tackle deadly diseases such as cancer, HIV, malaria and tuberculosis.
We’ll explore options to enhance continent’s aviation industry – ECA (New National Star)
The Economic Commission for Africa (ECA) will collaborate with partners in the aviation industry to explore all options to enhance the sustainability of the continent’s aviation industry.
Acting Executive Secretary of the ECA, Antonio Pedro, in a statement issued on ECA’s website, said this while speaking on the Sustainable Development of Air Transport in Africa.
According to him, for the air transport industry in Africa to recover from its various shocks and remain sustainable, partnership will be key.
African seed sector players call for favourable regulatory policies (Modern Ghana)
As part of its efforts to help increase the resilience and profitability of African farming in the face of climate change and other challenges, African Seed Trade Association (AFSTA) last week concluded its 23rd African Seed Trade Association annual Congress in Dakar, Senegal, to which discussed regional and international seed issues.
The congress came at a time when experts fear that climate change will worsen existing inequalities within the global trade systems, and the seed sector will not be spared.</p><p>The objectives of this congress, being a gathering of top seed traders and producers traditionally cover a wide spectrum of issues in the seed value chain.
Africa pays the price as China and Russia jostle for its resources (The East African)
Analysts say China and Russia are bolstering their presence in Africa to tap its rich natural resources, amid grave warnings from UN agencies the world’s poorest countries face accumulating crippling debts.
“One out of every three major infrastructure projects in Africa is built by Chinese state-owned enterprises, and one out of every five is financed by a Chinese policy bank,” said Paul Nantulya of the Africa Centre for Strategic Studies, an academic institution within the US Department of Defence.
“Russia, a key arms exporter to Africa, is also making forays into the continent through mining projects granted to the Wagner private paramilitary group,” Nantulya said.
Chinese envoy refutes allegations of “debt trap” in Africa (Xinhua)
Xue Bing, Special Envoy for the Horn of Africa Affairs of the Chinese Ministry of Foreign Affairs, on Tuesday refuted the groundless cliche that China is creating a “debt trap” in Africa, calling it a narrative trap instead. Addressing media here in the Ethiopian capital, the special envoy said Africa’s debt burdens should not be blamed on China.
Data from the World Bank last year showed that among a total of 696 billion U.S. dollars in external debts in 49 African countries with accessible data, three-quarters are held by multilateral financial institutions and commercial creditors, the lion’s share of Africa’s debts; while 35 percent are owed to Western private lenders, nearly three times of the total obligations to China, he said.
EU needs to strengthen cooperation with Africa on trade in services - ECFR study (The North Africa Post)
Trade in services is critical for improving the competitiveness of African economies and improved trade in services with African countries could help the European Union diversify its supply chains, strengthening resilience and reducing dependencies on China and other Asian countries, according to a new policy brief published by the Brussels-based European Council on Foreign Relations (ECFR).
Services are largely missing from Europe’s trade and development cooperation agenda with Africa, which is almost exclusively focused on commodities and other primary goods — despite the growing importance of services in the global economy. Yet the services sector has now outstripped the primary and secondary sectors in their contribution to African output, making up more than half of the continent’s GDP.
A stronger services trade between the EU and Africa would allow European multinationals to near-shore their production processes and diversify away from Asia-focused supply networks. Improved trade in services would also allow the EU to influence regulatory models across various sectors.
Europe eyes Africa as ‘future source of cheap green hydrogen’ (The Independent Uganda)
After Russia’s invasion of Ukraine in March 2022 set off a rush for gas resources worldwide, Europe picked Africa as an alternative supply market for natural gas, European energy ministers and other political leaders toured North African countries and gas initiatives in both East and West Africa received renewed support.
Now, Europe is setting its sight on Africa’s yet-to-be-developed green hydrogen industry, in what appears to be an early race to build up clean energy resources, part of a major, continued transition away from fossil fuels.
Digital technology new source of discrimination against women: Guterres (UN News)
The town hall with representatives from non-governmental organizations (NGOs) was held as part of the annual session of the UN Committee on the Status of Women (CSW), which meets in New York every March. Its latest two-week session - known as CSW67, which runs through Friday - is focused on the theme of innovation, technological change, and education in the digital age.
Mr. Guterres noted that digital technology – the product of an industry that is predominantly male - represents a new source of discrimination and bias. “Rather than presenting facts and addressing bias, technology based on incomplete data and badly-designed algorithms is digitizing and amplifying sexism – with deadly consequences,” he said.
The gender digital divide is fast becoming the new face of gender inequality, he continued. Online spaces are not safe for women and girls, as they have been attacked, targeted, or denigrated on the internet.
UN deputy chief warns of faltering progress towards SDGs (UN News)
“Let me be frank: we are not doing well. Our progress towards the SDGs has faltered and even gone into reverse on some important targets and Goals, leaving many behind,” she said in opening remarks to the Arab Forum for Sustainable Development (AFSD) in Beirut, Lebanon.
“Let me be frank: we are not doing well. Our progress towards the SDGs has faltered and even gone into reverse on some important targets and Goals, leaving many behind,” she said in opening remarks to the Arab Forum for Sustainable Development (AFSD) in Beirut, Lebanon.
She highlighted how the COVID-19 pandemic, the war in Ukraine and the “triple planetary crisis” – climate change, biodiversity loss and pollution - have affected lives and livelihoods.
Working group on small business approves work program, issues a call for papers (WTO)
The approved work program will hinge on five main pillars: promoting MSMEs’ access to information; building capacity to promote greater inclusion of MSMEs in international trade; providing policy guidance; implementing the December 2020 MSMEs package; and engagement with the private sector.
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‘EU is putting draconian measures on South African citrus’ (SABC News)
The Citrus Growers Association of South Africa has requested Trade and Industry Minister Ebrahim Patel to urgently convene a panel of the World Trade Organisation regarding restrictive and expensive measures imposed by the European Union to export oranges.
This is over an insect found in Sub-Saharan Africa that the EU deems potentially dangerous for its citrus growers. South African producers say they’ve implemented some of the best measures in the world to prevent this from happening.
The European Union insists that South Africa must cool and store its oranges for 20 days before exports. This requirement is because of the False Codling Moth. Stringent measures are employed by South African growers to prevent any of the insect larvae to spread. These measures are deemed highly effective by international standards. However, the additional measure of cooling and storing, which is not ideal for oranges, will add over R1 billion into costs to be able to export to the EU.
The Citrus Growers Association of South Africa says these measures are unfair and are not in line with the guidelines of the World Trade Organisation (WTO).
South Africa Has Plans in Place to Safeguard Food Supply Amid Power Crisis (BNN Bloomberg)
South Africa’s government has contingency plans in place to safeguard key food-production facilities against an escalation in power cuts that are already at record levels, the nation’s agriculture minister said. Africa’s most industrialized economy has been subjected to rolling blackouts, known locally as loadshedding, since 2008 because state power utility Eskom Holdings SOC Ltd. has been unable to meet demand from its old and poorly maintained plants. The problem has escalated since last year, raising concerns that food security is at risk.
While a total collapse of the national grid is highly unlikely, measures have been taken to ensure abattoirs can continue operating and animal vaccines are protected, Agriculture, Land Reform and Rural Development Minister Thoko Didiza said in an interview at Bloomberg’s Johannesburg offices on Monday.
“There is a plan in place already,” to deal with a situation whereby outages are increased and 8,000 megawatts of generation capacity or more is cut from the grid, she said. Longer-term, the government is looking at how best to further assist farmers who want to install solar panels and batteries to reduce their reliance on the grid, according to the minister. Financing could be made available from existing institutions such as the state-owned Land and Agricultural Development Bank of South Africa and the Industrial Development Corp., she said.
DTIC’s new energy one-stop shop to include ‘unblocking teams’ to speed up electricity investments (Engineering News)
Trade, Industry and Competition Minister Ebrahim Patel reports that an energy one-stop shop to speed up the regulatory processes required for private investment in electricity generation has been established and is being managed by InvestSA.
In a presentation to the Portfolio Committee on Trade and Industry, Patel reported that the one-stop shop had been established in line with the Energy Action Plan (EAP) to tackle loadshedding, which has since been declared a state of disaster. “The one-stop shop will assist power-generating companies navigate the different processes that apply in law and decrease turnaround times by assisting investors to submit applications through a single-window process to obtain all necessary government approvals,” Patel reported.
Some of the department’s staff had already been redeployed to the one-stop shop and further recruitments would be made from outside of the department after the start of the new financial year on April 1.
Minister Pandor to co-chair SA-Tanzania Bi-National Commission (SAnews)
The Minister of International Relations and Cooperation, Dr Naledi Pandor, will on Wednesday co-chair the South Africa-Tanzania Ministerial Bi-National Commission (BNC) with her Tanzanian counterpart, Dr Stergomena Tax, in Pretoria.
The BNC will, according to the department, reaffirm and deepen the warm and cordial bilateral relations that exist between the two countries. “It will evaluate the progress of implementation of commitments made during the inaugural session of the BNC, assess and evaluate the progress of all outstanding decisions and commitments as well as joint projects.” In addition, the meeting aims to agree on new areas of cooperation and further enhance cooperation within the framework of the BNC.
South Africa and Tanzania have similar aspirations with strong cultural and historical ties. These ties present opportunities for strengthened bilateral cooperation in many areas including trade, investment, local beneficiation, agriculture, industrialisation, energy, and mining. There are also opportunities in the value chains of commerce, agriculture, road, and rail.
R66bn worth of component exports at risk from move to EVs, but it’s not all bad news – Naacam (Engineering News)
Catalytic converters, engine parts, engines, clutches/shaft couplings, silencers/exhausts and ignitions/starting equipment are the component groupings most at risk from the global move to electric vehicles (EVs), as they are not required in these types of vehicles, says National Association of Automotive Component and Allied Manufacturers (Naacam) executive director Renai Moothilal.
These components are also not required within EVs, but their manufacturers’ existing capabilities offer them the opportunity to pivot and join the EV supply chain.
In 2021, automotive component exports from South Africa increased by 27% to a record R69.2-billion, up from R54.5-billion in 2020. Catalytic converters, at R35-billion, comprised 50.4% of total automotive component exports from South Africa, followed by engine parts, tyres and engines as the biggest categories. In total, the yearly South African component exports at risk amount to R66-billion, says Moothilal.
‘Africa not a dumping ground for used EU vehicles’ - Legacy (The Citizen)
The Legacy Motor Group has called for greater restrictions on the importation of what is calls “unfit European vehicles” into Africa and indeed, South Africa. Echoing sentiments made by the National Association of Automobile Manufacturers of South Africa (Naamsa) almost three years ago, the group’s chairman, Mpho Dipela, said while the majority of the continent’s assembled vehicles principally originate from South Africa and Morocco, imports continue to dominate other nations.
In 2020, Naamsa remarked that an estimated 300 000 grey import market vehicles, mostly from Japan, frequent South Africa’s roads at a loss of R3.8-billion per annum to the country’s tax coffers.
“Grey imports have a negative impact on the automotive ecosystem because they rob the fiscus of the much needed tax revenue; they hurt job creation; they aid criminal activity; and undermine road safety initiatives,” Naamsa said at the time.
“To put into perspective, the monthly average new vehicle market for 2020 is 28 500 units. Grey imports represent an extra months sales per annum, which represents 7.5% of total market and would be the third largest brand in South Africa by volume”.
SEC endorses PAPSS to boost intra-African trade, foster capital market diversification (Businessamlive)
The Securities and Exchange Commission (SEC) has said that the implementation of the Pan-African Payment Settlement System(PAPSS) will boost intra-African trade and foster diversification within the capital market. Okey Umeano, head, office of the chief economist of SEC disclosed this recently while addressing newsmen in Abuja, Nigeria’s capital city.
PAPS was developed by African Export-Import Bank (Afreximbank), and launched in January 2022 in Accra, Ghana, with the objective to boost intra-African trade by transforming and facilitating payment, clearing and settlement for cross-border trade across Africa.
PAPSS enables instant payments across African borders in local currency. Its three core processes are instant payment, pre-funding, and net settlement. With this new system, businesses will no longer need to convert local currencies to foreign currencies before they can make purchases across the continent, significantly reducing the amount of time it will take to complete a transaction. PAPSS will make and process payments within two minutes.
Prior to the implementation of PAPSS, over 80 per cent of African cross-border payment transactions are processed in the United States but have their recipients in other regions. The Asia-Pacific and Europe, the non-Eurozone regions account for a combined 52 per cent of where the payments are eventually transferred, compared to only 17 per cent for Africa. That posed multiple challenges, ranging from payment delays to operational inefficiencies and compliance concerns for the disparate regional payment systems.
Revenue Service Lesotho (RSL) Launches e-payment, e-taxation platforms (ZAWYA)
The Revenue Service Lesotho launched e-payment and e-taxation which gives the clientele a platform to pay taxes online and e-file their tax returns. These e-services are aimed at broadening the use of technology and easing tax payments across the country.
The Minister of Finance and Development Planning, Dr Retšelisitsoe Matlanyane commended RSL for this initiative, saying it is wise for the country to also fit in the fourth industrial revolution for economic growth. Dr Matlanyane said SACU revenue has been declining for some time, saying this means fewer resources for financing the national budget hence the country needs to make plans to depend on itself for financing the budget.
The RSL Acting Commissioner General, Mrs. ‘Mathabo Mokoko said in collaboration with the stakeholders in the finance and economic industries they are striving to improve and provide easy methods of tax payments and e-filling for their clients.
Kenya set to get share of Sh130m e-mobility cash (Business Daily)
Kenya is one of the seven African countries set to benefit from a Sh129.3 million ($1 million) grant from the African Development Bank (AfDB) to boost the shift to electric mobility. The credit line from Sustainable Energy Fund for Africa (SEFA) —AfDB’s special fund for renewable energy— will go to the private sector to fund the designing of business models for electric vehicles and help develop a bankable pipeline of e-mobility projects.
Kenya is one of the countries in Africa spearheading the shift to clean electric transport in a bid to curb pollution of the environment through the use of diesel and super-powered transport.
Liberia and UK commit to strengthening trade (The New Dawn Liberia)
Liberia and the United Kingdom have highlighted the key role of the private sector as a catalyst in advancing trade and investment between the two countries. The Minister of Africa of the United Kingdom, Andrew Mitchell and Commerce and Industries Minister of Liberia- Madam Mawine G. Diggs, held discussions on broadening trade with Liberia and the United Kingdom.
Speaking at the Foreign, Commonwealth and Development Office (FCDO) in London, Minster Mitchell recounted the continuing partnership between Liberia and the United Kingdom in promoting democratic governance.
Minister Mawine Diggs reflected on the strategic importance of the UK Liberia relations and how it continues to impact varying aspects of the two countries.
Nigeria Needs To Transform Current Food Systems – FAO (Leadership News)
For Nigeria to attain food self sufficiency, the country’s current food systems need to be transformed to help her achieve Sustainable Development Goals agenda, not only through production technologies but also entrenching sustainable and inclusive food systems in the structure of governance and administration.
This was part of the conclusions reached by the organisation as contained in the recently released Nigeria Food Security Assessment profile.
They noted that the current food systems are unable to fulfil their purpose of providing nutritious and healthy food for all and contributing to enhanced livelihood opportunities in an environmentally sustainable way.
‘Focus more on policies that will tackle infrastructure deficit’ (The Guardian Nigeria)
Experts have stressed the need for the new administration to focus more on policies that would help tackle the nation’s huge infrastructure deficit, especially the issue of power, as well as maximise potential in leveraging African Continental, Free Trade Agreement opportunities (AfCFTA) to alleviate poverty.
Speaking on Nigeria’s economic outlook at a press briefing in Lagos, an independent tax and business advisory firm, Andersen, said Nigeria has continued to lag behind meaningful economic indexes owing to failure to adequately address its infrastructure challenges.
With the National Integrated Infrastructure Master Plan (NIIMP), $2.3 trillion is the investment required to close the infrastructure gap in Nigeria from 2020 to 2043.
Vice President, Yemi Osinbajo, had also stated that the Reviewed National Integrated Infrastructure Master Plan (2020-2043) and the National Development Plan 2021-2025 estimated the current nation’s infrastructure stock to be between 30-35 percent of the GDP in 2020 against 20 per cent of the GDP recorded at the inception of this administration in 2015. This is still a far cry from the estimated target of 70 per cent envisaged in 2043.
Botswana, Zimbabwe to Discuss Eliminating Use of Passports (VOA)
The presidents of Botswana and Zimbabwe are to discuss scrapping passport requirements between their countries to allow for the easier flow of people and goods.
Addressing ruling party supporters over the weekend, Botswana’s president, Mokgweetsi Masisi, said he will soon meet his Zimbabwean counterpart, Emmerson Mnangagwa, to discuss the issue. Botswana reached a similar deal last month with Namibia, and Masisi said he also plans to discuss the issue with the Zambian president.
“Don’t think by opening borders, we will open for criminal elements,” he said. “Criminals will be caught as we will be using advanced technology.”
Zimbabwe miners call on Mnangagwa to lift export ban on lithium (Miningmx)
LITHIUM stockpiles in Zimbabwe have grown to two million tons after the Southern African country imposed an export ban on the battery material in December, said Bloomberg News. Now Zimbabwe’s mining sector is calling on President Emmerson Mnangagwa to review the ban which is harming local producers, the newswire said citing a letter written by Henrietta Rushwaya, president of the Zimbabwe Miners Federation.
“The unexpected ban has prejudiced standing off take agreements between miners and international buyers, some of whom had taken loans from their respective countries to trade in these minerals,” Rushwaya said in the letter to Mnangagwa.
The ban has impacted small- and medium-scale miners, but it’s not clear how much lithium is contained in the stockpiled ore, said Bloomberg News.
Oil marketers to pay for fuel imports in Kenyan shilling as shortage looms (Business Daily)
Local oil companies will pay for oil imported on credit through a government-to-government deal in Kenya shillings to ease pressure on the local currency that continues to hit new record lows every week.
Energy and Petroleum Cabinet Secretary Davies Chirchir said on Monday that the government signed a deal last week with Saudi Aramco to supply Kenya with diesel and super for the next six months, while Abu Dhabi National Oil Company (Adnoc) will deliver three cargoes of super petrol every month.
Saudi Aramco is the world’s biggest oil producer and it recently bought US motor oil and lubricants group Valvoline, giving it a local presence locally in Kenya. The third player selected by the government to participate in the fuel import deal that technically shelves the current open tender system hailed for bringing transparency in the oil business in Kenya is the Emirates National Oil Company Group (Enoc).
“The product will now be paid for in Kenyan shillings and this will ensure the dollar is available for other sectors of the economy,” Mr Chirchir said adding that the importation through government to government shall be centrally coordinated by his ministry.
Europe’s inflation cuts Sh12bn horticulture income (Business Daily)
Kenya’s earnings from horticultural exports reduced by 9.7 percent in 2022 on the back of elevated inflation in main markets amid weaker currencies, data shows. Revenue from horticultural sales abroad amounted to Sh120.26 billion last year from Sh133.23 billion in the prior year, provisional export statistics indicate. The decline came in a year when the average price growth in the Eurozone — a group of 19 countries which use the euro as a common currency — climbed to 8.35 percent compared with 2.4 percent a year earlier.
Kenyan exporters had complained that the runaway inflation was eroding consumer purchasing power in the Euro area and the UK, the main destinations for cut flowers, fruits and vegetables.
Kenya sets sights on special maize imports deal with Zambia farmers (Business Daily)
Nairobi will next month sign contracts with farmers in Zambia to grow maize exclusively for export to the Kenyan market as the government seeks to lower the cost of the staple, with the first consignment under the agreements expected in August. Agriculture Cabinet Secretary Mithika Linturi said they have finalised the deal that has seen Kenya allocated at least 50,000 acres of land for growing maize in the current planting season.
The CS said the deal with the South African State has been informed by lower cost of production in Zambia and favourable weather.
Kenyan small-scale importers protest new KRA tax plan (The East African)
Importers of consolidated cargo will now be required to pay taxes based on transaction value, in a new directive by Kenya Revenue Authority (KRA) that increases the cost of doing business and retail prices.
The directive means that items such as second-hand clothes and household goods, which end up in open-air markets such as Gikomba and Nyamakima in Nairobi, will now attract import duty, value added taxes (VAT), excise duty, Import Declaration Levy, and Railway Development Levy.
The move is also expected to affect cargo volumes on the standard gauge railway from Mombasa to the Kenya Railways Corporation (Boma Line) Transit Shed in Nairobi, which was gazetted in 2021 as a facility to deconsolidate cargo.
EAC proposes flexible US market access under Agoa plan (The East African)
The East African Community (EAC) wants the US government to make the rules governing access to their market more flexible under the planned renewal of the African Growth Opportunity Act (Agoa).
The regional bloc, during its Council of Ministers Ordinary meeting held in February, made four new proposals to the Joe Biden administration to expand Agoa and make it more effective should the US Congress hasten its renewal before the 2025 expiry date.
The proposals come in the wake of plans by the American Chamber of Commerce Kenya (AmCham), a network of American and Kenyan businesses, to hold its third edition of the Business Summit on US-East Africa Trade and Investment in Nairobi later this month.
7 continental priorities region’s business community presented to AfCFTA boss (The New Times)
Rwanda on March 10 signed a host agreement with the Secretariat of the African Continental Free Trade Area (AfCFTA) and the Afreximbank for the $10 billion Adjustment Fund aimed at supporting all initiatives geared towards the implementation of the AfCFTA.
The fund is expected to serve as a vehicle for mobilizing funds, develop and operate a compensation facility aimed at mitigating the short-term impact of tariff revenue losses of state parties.
The launch was hosted by the Minister of Foreign Affairs, Vincent Biruta, together with the Minister of Trade and Industry, Jean Chrysostome Ngabitsinze, Kanayo Awani, Executive Vice President of the Intra Africa Trade Bank, Clare Akamanzi the CEO of Rwanda Development Board, Dennis Karera, the EABC Vice Chairperson, Francoise Mubiligi, the Chairperson, Rwanda Private Sector Federation, and many other senior of officials from both the government and the private sector.
The East African Business Council (EABC) is the regional apex body of private sector associations and corporates from the seven EAC countries. According to the EABC, the continental priorities presented to the AfCFTA Secretary General include:
Anchoring AfCFTA trade policy to industrial policy (Enhanced Integrated Framework)
The Secretary General of the Africa Continental Free Trade Area (AfCFTA) Secretariat, His Excellency Wamkele Mene, has identified four challenges holding back intra-African trade: market fragmentation, small-sized economies, lack of industrial capacity, and the continued exportation of primary commodities to traditional markets in the Global North. At their core, these challenges are interrelated and point to the importance of promoting a more active industrial policy, together with the ongoing trade policy effort at the heart of the AfCFTA. This is particularly key for Least Developed Countries (LDCs) situated in Africa.
The industrial policy does not mean manufacturing policy. The scope of industrial policy includes industries such as tourism, agriculture, mining and IT-based services, as well as the coordination of key enabling sectors like energy, finance and telecoms.
Industrial policy is the most important of all economic policies because it is the only one that can bring coherence across the many disparate set of economic policies that governments have. It is also the only economic policy that deliberately targets the restructuring of the entire economy toward inclusive growth. Monetary, trade and fiscal policies are all important, but cannot play this leadership and coordination function.
H. E. Mene has also alluded to another critical ingredient for AfCFTA’s success: the direct involvement of the heads of state. For decades now, the African value-adding private sector has been clear that the most important condition it needs is policy coherence from governments, so it can plan accordingly and not face too many curve balls that disrupt their plans.
So, for AfCFTA to meet its ambition and African LDCs to flourish, it’s time to unlock the transformative power of trade-oriented industrial policy in Africa so heads of state can coordinate governments and let the value-adding private sector and inclusive markets do their job in accelerating intra-African trade and the continent’s industrialisation and economic transformation.
Africa’s new free trade area will see agriculture surge (WEF)
Agriculture accounts for roughly one-third of the African continent’s GDP, provides a livelihood for 50% of the population and feeds hundreds of millions of people on the continent and beyond every day.
The key role that agriculture plays in the continent’s economy is only set to grow in strength and size under the African Continental Free Trade Area (AfCFTA) agreement, struck in February 2021 and now in full swing.
According to the World Economic Forum’s Insight Report on the deal — AfCFTA: A New Era for Global Business and Investment in Africa — the free trade area, one of the world’s largest by number of people and economic size, is projected to host 1.7 billion people and oversee $6.7 trillion in consumer and business spending by 2030.
According to the Forum’s report, agriculture has exceptional potential for increasing intra-African trade, meeting local demand, accelerating GDP growth, creating new jobs and improving inclusivity due to upstream and downstream linkages.
It will increase value addition, meet new local demand and bring smallholder farmers — who are responsible for 80% of Africa’s food production — into wider supply chains. Opportunities abound in the AfCFTA for new investment in agro-processing, in particular.
90% Tripartite Region NTBs resolved — Comesa (The Chronicle)
A total of 716 out of 796 non-tariff barriers (NTBs) registered in the online reporting system implemented by the three regional economic communities, Comesa, East African Community and the Southern Africa Development Community have been resolved. Barriers behind the border, such as unwarranted technical barriers to trade and sanitary and phytosanitary measures are equally prevalent.
“NTBs evolve over time, hence become a single most hindrance to intra-regional trade and an easy option to deter or restrict trade,” said Dr Onyango, quoted in a recent Comesa report. “They, therefore, require persistent vigilance and commitment by all stakeholders, especially members of the national monitoring committees.”
As the tariff walls come down in the global and regional trading arena, he noted that NTBs continued to thrive and emerge in different forms in the tripartite region.
Technology trends reshaping the future of logistics in Africa (The Africa Logistics)
Over the past two years, the global logistics industry has been adversely affected by unprecedented supply chain disruptions, ranging from port closures to high freight costs, material and staff shortages, and geopolitical crises. These challenges have exposed supply chain vulnerabilities and highlighted the need for built-in resilience and adaptability.
To succeed in the year ahead, logistics operators must use the tools and technologies available to anticipate and overcome sources of disruption, such as oil price fluctuations and geopolitical tensions. Here are the top five trends that the industry needs to be aware of:
The ECOWAS Consultative Committee on Competition (CCC) held its 6th meeting to review the Draft ECOWAS Directive on Consumer Protection and various instruments from the 06th to 09th March 2023, in Praia, Republic of Cabo Verde.
The meeting brought together Members of the ERCA Consultative Competition Committee (CCC) and Consultants to review the draft ECOWAS Directive on Consumer Protection prior to the submission to the meeting of ECOWAS Ministers of Trade and Industry (ECOMOTI) for validation. The Committee also had the opportunity to consider the presentations from consultants on the draft Manuals of procedures and Forms on the Community Competition Framework as well as ECOWAS Competition Information System (ECIS) which are necessary instruments to facilitate the implementation of the mandate of ERCA on promoting competition and protecting the rights and interests of consumers within the ECOWAS region.
The Meeting reviewed and validated the draft ECOWAS Directive on Consumer Protection and agreed that written comments from CCC Members on the draft Manuals, Forms and ECIS should be transmitted to ERCA no later than 15 April 2023 to finalise the said instruments before the next CCC meeting.
SADC Senior Officials meet ahead of Council of Ministers meeting (SADC)
The Standing Committee of Senior Officials of the Southern African Development Community (SADC) kicked off their meeting on 13 March, 2023, ahead of the meeting of the Council of Ministers scheduled to be held on 18-20 March, 2023 in Kinshasa, Democratic Republic of Congo.
The Council of Ministers meeting will be held under the 42nd SADC Summit Theme, which is; “Promoting industrialization through agro-processing, mineral beneficiation, and regional value chains for inclusive and resilient economic growth”. The theme takes into account the urgent need to enhance the roll out of SADC industrialization and market integration programmes as contained in the SADC Regional Indicative Strategic Development Plan (RISDP) 2020-2030.
Among the key issues on regional integration and development, the Ministers will discuss the overall Status of the Implementation of Council and Summit Decisions; Status of Implementation of the Prioritised Intervention Areas for the Theme of the 41st SADC Summit of Heads of State and Government; Status of the Implementation Plan of the Regional Indicative Strategic Development Plan (2020-2030) and Operationalization of The SADC Humanitarian and Emergency Operations Centre (SHOC).
Serenity at seas crucial for trade and commerce across SADC, says SA Navy chief Monde Lobese (IOL)
The 29th annual meeting of the Standing Maritime Committee (SMC) of the Southern African Development Community (SADC) has been concluded in Cape Town, and was hosted by the South African Navy. The vision of the SMC is to promote peace and prosperity in the SADC region through maritime cooperation.
Addressing the auspicious event, Chief of the South African Navy, Vice-Admiral Monde Lobese said unlike popular narratives, naval forces are not only needed at times of war. He highlighted that even landlocked nations in the region enjoy the benefits of having proficient naval capabilities in the region.
“Navies are not only there to protect our countries in times of war and conflict. In times of peace, our navies must ensure that there are no threats posed to the free flow of trade. I don’t have to remind our land-locked brothers of SADC that even their commerce and trade flows through the harbours of their coastal neighbours,” he said.
The US has gotten the day to day right in Africa policy. Time to think bigger (Atlantic Council)
The three-day US-Africa Leaders Summit in December brought together high-level delegations from forty-nine African countries and the AU, along with business and civil society leaders. The summit was part of an overall new Africa strategy authored by Judd Devermont, the special assistant to the president and senior director for African affairs at the National Security Council.
The strategy has returned US-Africa policy to the basics, including consistent high-level diplomatic engagement between US and African leaders—and US President Joe Biden pledged at the summit to continue to make that engagement a priority.
The Biden administration is thus far making good on this promise. Treasury Secretary Janet Yellen and Ambassador to the United Nations Linda Thomas-Greenfield have already made official visits to the continent in 2023. Vice President Kamala Harris will travel to Ghana, Tanzania, and Zambia from March 26 to April 1, and Commerce Secretary Gina Raimondo will visit the continent this summer.
Devermont has long argued for this type of consistent, high-level engagement, and it is refreshing to see it operationalized.
African financial institutions will continue to fund fossil fuel projects on the continent (Engineering News)
While Africa is part of the global transition to low carbon energy, the consumption of oil and gas on the continent will increase, at least in the short term. So observed Standard Bank executive energy & infrastructure coverage: East Africa Maina Kigundu at the African Refiners and Distributors Association conference, at the Century City Convention Centre in Cape Town, on Tuesday.
The decarbonization plans of international corporations were affecting investment in Africa. There was decreasing investment in the oil sector, but increasing investment was likely in the liquified natural gas (LNG) sector, he reported.
The Africa Finance Corporation (AFC) would continue to fund fossil fuel projects in Africa, assured AFC senior investment associate Shayo Olumide, speaking at the same conference. The AFC was totally African-owned and funded and had total assets of $10.5-billion. So far it had invested in 36 African countries. “We’re focused on African industrialization,” he stressed. Its five main focus areas were heavy industry; power and renewables; natural resources; transport and logistics; and telecommunications.
Trade and Investment: the current crises are generating opportunities (UNECA)
The Faculty of Legal, Economic and Social Sciences of Souissi, Rabat concluded on March 10 the 14th International Colloquium of Rabat (9-10 March 2023) under the theme: “Trade and investment in a context of crises”.
Key messages included the fact that the current “poly-crisis” i.e. multiple, ongoing crises (geopolitical; health, climate, food and energy-related) are currently redefining the very foundations of resilience and generating a window of “poly-opportunities” for national economies. As a result, decision-makers are currently faced with an opportunity to reorient growth so as to make it greener and more inclusive, accelerate investment in new technologies and integrate more value chains to speed up their own development while helping secure global trade and supply for the rest of the world.
The construction of an integrated and united economic space such as the AfCFTA in Africa is becoming imperative given the deep impact of recent changes such as COVID-19 or the Russia-Ukraine crisis on the global and regional environment, including through the rise in trade tensions and the reconfiguration of supply chains.
Making trade work for climate change mitigation: The case of technical regulations (UNCTAD)
Climate change law instruments - in particular, the UNFCCC and the Paris Agreement - constitute the legal framework within which States set emissions reduction targets and adopt climate mitigation measures to achieve the global target of limiting the increase in global average temperatures to “well below” 2°C.
This legal framework leaves countries free to decide which measures they employ to achieve their targets. However, international trade law - and, in particular, the rules and principles of the WTO - determines when and how States can adopt a measure that potentially impacts international trade, even if such a measure is primarily aimed at tackling climate change.
With a quarter of global CO2 emissions directly or indirectly linked to the production and distribution of traded goods and services (World Bank, 2021), trade-related measures can play an important role in promoting climate change mitigation and adaptation.
Climate change-related trade measures have a significant potential of reducing GHG emissions and are increasingly being adopted. Recent discussions on combustion engine bans or carbon border adjustments have highlighted the far-reaching implications of these instruments.
Plastics Dialogue participants brainstorm on MC13 outcomes, welcome US co-sponsorship (WTO)
The ambassadors of three coordinating members-- Ecuador, China, and Australia-- highlighted the positive spillover effects of the Dialogue, noting it has brought together officials from various members in the fields of trade, environment, customs, and industry. They emphasized the Dialogue’s objective of supporting other significant international initiatives in this area, particularly the ongoing multilateral negotiation process at the UN Intergovernmental Negotiating Committee where participants are seeking to achieve a legally binding instrument by the end of 2024 to put an end to plastics pollution.
The ambassadors encouraged active participation from all participants in shaping the outcomes of MC13, emphasizing the need to incorporate developmental elements and establish a plan for providing capacity building and technical assistance to developing members, in particular small island developing states (SIDS) and least developed countries (LDCs).
Members share experiences on environmental regulations, standards for climate and plastics (WTO)
Two thematic sessions were held together with the Committee meeting. The first thematic session on regulatory cooperation between members on plastics regulation provided an opportunity for members to share experiences and good practices in plastics regulation and policy, which aim to minimize plastics waste leakage and plastics pollution, while encouraging trade and innovation.
While discussing national and regional perspectives, the session also addressed international developments to minimize plastics pollution and plastics waste in the environment and considered how these efforts may necessitate future international cooperation.
The session also highlighted key TBT principles for efficient cooperation such as transparency, public consultation, the use of international standards, the use of data and technical information, technical assistance, development considerations, and the national quality infrastructure that underpins these systems.
The second thematic session on regulatory cooperation between members on climate change focused on the role of regulatory measures in contributing to members’ strategies for tackling climate change.
Fragmentation one of the biggest risks faced by global economy, says UAE minister (The National)
Geographical and economic fragmentation is the greatest danger the global economy faces today and is prompting the drafting of new policies to boost economic integration, Abdulla bin Touq, the UAE’s Minister of Economy, said on Tuesday.
Addressing the Confederation of Indian Industry Partnership Summit 2023 in New Delhi, Mr bin Touq said economic fragmentation was expected to cost the world dearly because “the greater the fragmentation of trade, the greater the economic costs”.
We believe that it is absolutely necessary to address the economic challenges of our times and build a more sustainable and prosperous future for all,” he said.
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SA tyre manufacturers potentially exposed to dumping from China (The Citizen)
Anti-dumping duties against Chinese exporters of car, bus and lorry tyres to South Africa have expired, leaving local producers potentially exposed to far cheaper products that can be dumped on the market. The Chinese manufacturers are also entitled to claim a refund from the South African Revenue Service (Sars) for the 38.3% provisional duties imposed on them since September last year.
The International Trade Administration Commission of South Africa (Itac) imposed these duties for six months pending the finalisation of its investigation into the allegations of dumping. However, the provisional duties lapsed before the investigation was completed.
In terms of World Trade Organisation rules, investigations should be completed within one year, and in no case more than 18 months after initiation. Itac says it has until 29 July to complete its investigation.
Partnership Between Government and Private Sector is Critical in Curbing Youth Unemployment (the dtic)
The Deputy Minister of Trade, Industry, and Competition, Ms Nomalungelo Gina says partnership between the government and private sector is critical in curbing unemployment amongst the youth. Gina was speaking at a graduation ceremony for beneficiaries of the Itukise Programme held in Pretoria.
“In view of the current economic realities in South Africa, it is now clear that the government alone will not be able to combat the continuous increase in the rate of unemployment among the youth. A partnership between the government and the private sector is critical. It is, therefore, necessary for more stakeholders, especially the private sector to collaborate with the South African government to create more job opportunities and by extension, reduce the unemployment rate among the South African youths,” said Gina.
Milk ban: Kadaga writes to Kenyan authorities (New Vision)
Efforts are being made to ensure that the country’s milk exports are not interrupted following the recent notice from Kenya that it plans to cut back on imports from Uganda, First Deputy Prime Minister of Uganda and Minister for East African Community (EAC) Affairs Rebecca Kadaga has said.
Kadaga says she contacted Kenya’s Cabinet Secretary for the East African Community Rebecca Miano and has informed her that if effected, the ban would be damaging to Uganda’s dairy industry and the EAC spirit. She was addressing journalists on Friday (March 10, 2023) during an engagement with the media at the EAC affairs ministry in Kampala.
Dairy Development Authority (DDA) executive director Samson Akankiza also said they have engaged their Kenyan counterparts on the matter.
In a notice dated March 6, 2023, to all milk importers in Kenya, the Kenya Dairy Board (KDB) said it was moving to protect local farmers from external products, as output is expected to increase soon.
“In anticipation of the long rains, the Government has stopped the importation of milk powders to cushion the industry from surplus production and low prices,” a statement signed by KDB managing director Margaret Kibogy says. She adds that the board will no longer issue new import permits until further notice. Though the letter does not state it, analysts believe the notice targets imports from Uganda, which until recently, were being blocked from the Kenyan market.
Nigeria’s Annual Trade Volume Rises to Near Pre-COVID Level (This Day)
The 169 per cent year-on-year increase in trade surplus recorded by the federal government for 2022 has almost put Nigeria’s annual trade volume at the positive threshold of the pre-COVID years, data by the National Bureau of Statistics (NBS) has indicated.
According to the NBS data, Nigeria recorded a N1.2 trillion goods trade surplus in 2022, as export bills (N26.8 trillion) outweighed import earnings (N25.6 trillion) for the first time since the preceding year (N2.23 trillion in 2019).
Nonetheless, the 2022 surplus represents a 162 per cent improvement over the N1.94 trillion goods trade deficit in 2021.
The report also showed that Nigeria’s total merchandise trade in 2022 increased to N52.4 trillion from N39.75 trillion in 2021, while total export value grew by 42 per cent to N26.8 trillion from N18.91 trillion in 2021.
In a report contained in the Cowry Weekly Financial Markets Review & Outlook (CWR), which was released on Friday, analysts noted that the increase in total exports was greater than the increase in total import value, which stood at N25.59 trillion (23 per cent higher than N20.84 trillion in 2021).
According to the report, total trade fell by 4.52 per cent in the fourth quarter to N11.72 trillion, compared to N12.27 trillion in the third quarter of 2022, as total exports exceeded total imports.
MAN Calls For Improved Operating Environment (Leadership News)
The Manufacturers Association of Nigeria (MAN) has emphasised the need for government to critically focus on improving business operating environment and other challenges that have continued to limit the sector’s performance.
The director-general, MAN, Dr. Segun Ajayi-Kadir, said manufacturing is a deliberate effort of governments while emphasising the need for government to incentivise and remove the binding constraints that limit the day-to- day survival of the sector.
“They unfairly compete with the domestic goods. Now we are seeing economies around us perfecting their deals. With the Africa Continental Free Trade Agreement (AfCFTA) and the ETLS, Nigeria borders cannot be closed.
“We cannot have unproductive and uncompetitive manufacturing sector and expect that there will be no inflow of those goods we produce, from outside the country. They unfairly compete with the domestic goods,” he pointed out.
Making trade safer for women cross-border traders in Mozambique and Malawi (World Bank Blog)
One of the narratives surrounding Intra-African trade has been that neighboring countries barely trade with one another. Yet we know that commerce between Sub-Saharan African countries predates the colonial period, when traders, often belonging to the same ethnic or family group, crossed what are now borders to exchange goods and services.
This legacy persists, even though – for reasons that vary from trade barriers and regulatory compliance costs to infrastructure and behavioral constraints – most trade between neighboring African countries is conducted by vulnerable, small, unregistered traders who choose this physically demanding work largely because they lack alternatives.
According to the African Development Bank, this informal cross-border trade provides income for about 43 percent of Africa’s population. So, to discuss Intra-African trade, one must consider its informality, the small size of the traders, and the important role of women.
Let’s take the example of Mozambique and Malawi. An observation of bilateral trade data for the period of 2017-2020 shows that there was little or no trade between the two neighbors for agriculture produce such as sweet potatoes, cassava, groundnuts, cotton seed, tropical fruits, and beans. But during our visits to border posts and markets across the Nacala and Beira corridors – the two main trade routes linking the countries -- after the COVID-19 pandemic, we saw a considerable flow of such agricultural goods, suggesting either that officials weren’t recording the transactions, or that products cross the border in such small parcels that they need not be recorded. These unrecorded transactions are mainly conducted by informal small-scale cross-border traders (SSCBTs) -- up to 80 percent of them women.
Corridor group introduces cargo levy (The Namibian)
THE Walvis Bay-Ndola-Lubumbashi Development Corridor (WBNLDC) has imposed a levy of US$0,90 per tonne on cargo originating from the port of Walvis Bay to sustain operations of a permanent secretariat to be established by January 2024.
This was one of the resolutions made at the 13th WBNLDC tripartite meeting held in Livingstone, Zambia, last week and attended by senior government officials and technical experts as well as the private sector from Namibia, the Democratic Republic of Congo (DRC) and Zambia.
A council of ministers, which consisted of Namibian minister of works and transport John Mutorwa, his Zambian counterpart Frank Tayali, and DRC minister of transport Roger Te-Biasu, signed the agreement on resolutions to address various challenges impacting trade on the corridor.
Other major resolutions agreed were that Zambia ratifies the corridor tripartite agreement by the end of this year, and that Zambia and DRC increase clearance of trucks from 600 to 800 in each direction at Kasumbalesa border, as well as open 24 hours a day.
Slow implementation concern Namibia, Tanzania foreign ministers (New Era)
International relations minister Netumbo Nandi-Ndaitwah said it is vital that Namibia and Tanzania prioritise the speed of pending agreements in various fields which have been identified, as this will strengthen and deepen cooperation between the two states.
Stergomena Lawrence Tax, Tanzania’s minister of Foreign Affairs and East African Cooperation, said her country noted the slow implementation on some of the issues which were agreed upon during the second session. She added that for these sessions to be meaningful to the countries’ relations, there is a need to take the decisions made seriously and tackle the implementation of all agreed issues, as well as to remove the bureaucracy that hinders reaching the targeted milestones.
She added that it is important to make use of the African Continental Free Trade Area (AfCFTA), which came into force in January 2021, to increase trade between the two countries.
“It is an instrument we can use to intensify trade and investment collaboration between our two countries. In pursuance of the common objective, I would like to see Namibian entrepreneurs investing in Tanzania, and those from Tanzania invest in Namibia,” said Nandi-Ndaitwah.
With Africa’s share of the global workforce projected to become the largest in the world by 2100, it is critical for African countries to increase the uptake of digital technologies* to drive employment growth for the more than 22 million Africans joining the workforce each year, emphasizes a new report released today.
The “Digital Africa: Technological Transformation for Jobs” report provides a comprehensive analysis of how digital technologies can enable economic transformation and boost jobs in the region. It also sheds light on how policy and regulatory reforms can widen the availability and increase usage of digital technologies.
Of all the regions in the world, Sub-Saharan Africa (SSA) displays the largest gap between the availability of digital infrastructure and people’s actual usage. On average across countries in SSA, 84% of a given country’s population had at least some level of 3G mobile internet availability and 63% had some level of 4G mobile internet services, but only 22% were using mobile internet services at the end of 2021, according to numbers collected by the Global System for Mobile Communications Association using a methodology focused on unique subscribers. Usage rates range from a low of 6% in South Sudan to 53% in South Africa, underscoring the heterogeneity of average use and the need for differentiated policy reforms across countries.
Building a Connected Africa: The Path to a Single Digital Market and a Prosperous Future (World Bank Blog)
A single digital market across Africa will lower barriers to trade and communication. It will make the internet faster and more accessible. Content and services, hosted on local data centers, will be cheaper to download because they won’t go through expensive international connections. And better access to online communication, banking, or health care can make continent-wide connections with family and friends, businesses and lenders, doctors and patients easier.
Connections to neighboring countries, to regions, and to the entire continent are key to sparking economic growth, creating jobs, and moving Africa into the digital age. Long term, the goals are ambitious: to create a single and secure digital market across Africa alongside free trade areas on the ground. To build regional links that eliminate roaming charges. To improve cross-border trade across the continent by creating the largest free-trade area in the world. This kind of connectivity, both digital and at national borders, was one of the major themes at the 2023 Dakar Financing Summit held in February given that an objective of the African Union is to build a secured single digital market in Africa by 2030, an effort supported by the World Bank’s Digital Economy for Africa (DE4A) initiative.
These goals require large investments in broadband connectivity, secure data infrastructure, and the governmental and legal reforms that can spark competition. Building digital and physical connections by eliminating barriers like broadband coverage gaps, digital illiteracy, and even red tape and paperwork at ports and land borders will allow people and businesses across Africa to reach bigger markets, build businesses, and create jobs.
Africa has realized that the attainment of the shared vision through the continental and flagship programmes such as Agenda 2063 and the 2030 Sustainable Development Goals (SDGs) will require an inclusive growth and sustainable development of Africa through implementation of structural transformation reforms and optimal utilization of its natural resource endowments.
According to the Report of the High-Level Panel on Illicit Financial Flows (IFFs) from Africa, the value of total aggregated illicit outflows surged from approximately USD 4 billion in 1990 to USD 50 billion in 2015. UNCTAD (2020) estimates trade mis invoicing at between USD 30 and USD 52 billion per annum, while capital flight is valued at USD 88,6 billion per annum.
It is also estimated that IFF’s are concentrated in sectors with high value added such as oil, gas and precious minerals. It is therefore a fact, that export-oriented countries are more exposed to the IFFs outflows.
Preliminary findings indicate that curbing IFFs will require strong international cooperation and concerted and articulated actions by developed and African countries in partnership with the private sector and civil society.
A strong and effective domestic resource mobilization, through the fight against IFF, is therefore key for Africa to finance the realization of the aspirations of Agenda 2063 and the attainment of the 2030 SDGs. Under these two comprehensive agendas, Africa has set many strategic objectives and goals that cannot be achieved without investing adequate resources. A wide-mobilizing resources strategy would be able to address efficiently the funding gaps owing to the fact that Africa is one of the resource-richest continents.
However, the continent continues to be ranked as the poorest due to, mainly, poor political and economic governance, political instability and conflicts that constitute the key driving factors behind this failure. As a result, much needed resources have continuously been flowing from the continent in favor of developed countries through well-structured multinational company’s modus-operandi.
AfCFTA Secretariat and Afreximbank Sign AfCFTA Adjustment Fund Host Country Agreement with the Republic of Rwanda (Afreximbank)
The AfCFTA Secretariat and African Export-Import Bank (Afreximbank), on 10 March 2023 in Kigali, signed the Host Country Agreement for the AfCFTA Adjustment Fund with the Republic of Rwanda. The Agreement paves the way for the operationalisation of the AfCFTA Adjustment Fund.
The US$10 billion Fund, headquartered in Kigali, Rwanda, is a critical instrument in the realisation of the African Continental Free Trade Area. It will help countries to implement agreed protocols and support African companies to retool for effective participation in the new trading regime. The AfCFTA Adjustment Fund will support AfCFTA State Parties to adjust smoothly to the new liberalised and integrated trading environment established under the AfCFTA Agreement by mitigating the potential adverse impacts of AfCFTA-induced tariff revenue losses. Also, the Fund will help to address the infrastructure deficits and supply chain bottlenecks to the implementation of the African Continental Free Trade Agreement.
Post Mortem: Webinar Women and gender equality in the operationalization phase of the AfCFTA (UNECA)
On March 6, 2023, the sub regional Office for Central Africa of the UNECA (ECA/SRO-CA) held a webinar on Women and gender equality in the operationalization phase of the AfCFTA.
The webinar which gathered more than 90 stakeholders from the private sector, the public sector, civil society organizations, international organizations, and academia, aimed at providing a platform for discussion around the challenges women entrepreneurs and women engaged in intra African trade face, the opportunities of the AfCFTA, and expectations regarding UNECA’s support to ECCAS and its Member States in this regard.
Among the main recommendations: the need for capacity building and awareness raising on the objectives, opportunities, and challenges of the AfCFTA for women; the need to collect disaggregated data capturing intersecting inequalities as women are not a homogeneous group; and the relevance of working closely with existing platforms in the sub-region that support women in their efforts.
Harnessing regional trade to grow African fine coffee markets (ITC)
“We all know that most African coffee producers live below the minimum subsistence income,” said Enselme Gouthon, president of the African and Malagasy Robusta Coffee Agency, “so it’s crucial to find an innovative model to capture more value from the first processing stage.”
He was speaking to the World Coffee Producers’ Forum in Kigali, Rwanda, where no one needed the reminder. Most in attendance are actively seeking to change that reality, by finding ways to add value to coffee in the countries where it’s grown.
A few days later, 955 people from around the world gathered to explore solutions, products and trends at Africa’s largest coffee trade platform, the African Fine Coffees Conference & Exhibition (AFCA).
African producers at AFCA tend to export green coffee. This year, ITC and its partners went against the grain by bringing five Ethiopian fine coffee producers. Four of them process and sell their own roasted coffee – a rarity on the continent.
The Republic of Botswana has signed the Charter establishing the Southern African Development Community (SADC) Fisheries Monitoring Control and Surveillance Coordination Centre (MCSCC) on 9th March 2023.
Botswana has become the 11th signatory of the Charter, meaning the Region has reached the required two-thirds threshold for the Charter to enter into force in order for the MCSCC to be established to assist the Region in prioritising the protection of fisheries to underpin greater benefits and blue economy growth. Angola, Eswatini, Lesotho, Madagascar, Malawi, Mozambique, Namibia, South Africa, the United Republic of Tanzania, and Zambia have already signed the Charter..
The MCSCC will coordinate regional fisheries data and information sharing services, a regional fishing vessel register, provide fisheries surveillance services, coordinate fisheries observers and support the implementation of port state measures, provide fisheries enforcement and legal support services, and support improvements in the capacity of national Monitoring Control and Surveillance (MCS) systems.
How sustained improvement on visa openness impacts intra-African travels, exchanges (Businessday)
If you consider the fact that Africa receives a mere 4.8 percent of the over one billion tourist arrivals in the world and 3.3 percent of the receipts, it means that the continent is not at the heart of the global tourist market, despite being taunted as the last tourism frontier of the world today.
The worst is that intra-African travels have not performed well until recently, when some concerned African countries, corporations and tourism thought-leaders started making concerted efforts at growing tourism on the continent, starting from within. However, the efforts at growing tourism within are yielding results with improvements on intra-African travels as captured in the 2022 Africa Visa Openness Index report.
EAC states in stalemate over hosting of key institutions (The East African)
The East African Community Council of Ministers have again failed to agree on the host of the proposed monetary union headquarters and other key organs.During the last meeting held in Bujumbura, Kenya, Uganda, Tanzania and Burundi, who have bid to host crucial institutions failed to agree on the way forward as each country sought more time for consultations.
Uganda protested the decision by the EAC verification committee to rank Tanzania as the most suitable to host the East African Monetary Institute last year and called for a review.
The DR Congo and South Sudan are also keen on hosting EAC institutions, triggering the debate on how to evenly distribute the bloc’s institutions and organs, including the East African Legislative Assembly (EALA) and the East African Court of Justice (EACJ) which are temporarily housed in Arusha, Tanzania.
Tanzania and Uganda are the only two partner states to host more than one EAC institution. Kenya, Rwanda and Burundi host one each.
Why East Africa refugees remain financially underserved (The East African)
Properly integrating displaced populations within a host country’s financial system invites often thorny political issues and private sector players are erring on the side of caution.
There has been progress in providing financial solutions to displaced populations, particularly in stable contexts where business and personal financial interests are protected by governments and civic institutions and personal identities are more entrenched. But in the contexts where refugees struggle with instability, little documentation, a tenuous status or few financial links, those strides can vanish.
As politics sometimes place insurmountable complications for even well-designed solutions, expanding financial inclusion to displaced individuals in difficult locales requires a shift in approach that integrates both refugee and solution within a wider market.
Ghana and EU commit to deepening cooperation (BusinessGhana)
Ghana and the European Union (EU) have committed to deepening cooperation at the 2023 Session of the Ghana-EU Political Dialogue held at the Ministry of Foreign Affairs and Regional Integration on Wednesday 8th March, 2023. This year’s session is an opportunity for Ghana and the EU to assess the progress made on the implementation of the outcome of the previous year’s Dialogue.
It also highlights the joint visions of the two sides and explores opportunities for cooperation in the thematic areas outlined in the agenda for the Dialogue.
Tricks of the trade: Strengthening EU-African cooperation on trade in services (ECFR)
Services are increasingly important for international trade, accounting for about half of global trade flows. Trade in services is growing more rapidly than trade in goods. Trade in services is critical for improving the competitiveness of African economies, increasing their participation in regional and global value chains, and promoting inclusive growth. Improved trade in services with African countries could help the EU diversify its supply chains, strengthening resilience and reducing dependencies on China and other Asian countries.
The cooperation on domestic regulatory frameworks required for trade in services can promote a shared understanding of regulatory goals and standards between the EU and Africa across many sectors.
None of the trade agreements between the EU and African countries currently covers services, and only one African country is part of the WTO Joint Initiative on Domestic Services Regulation. There is therefore no dedicated platform for cooperation on services regulations.
EU Announces New Rules For Air Import Shipments (Leadership)
The European Union has kicked off the second phase of its Import Control System 2 (ICS2). The new advance cargo information and risk management platform was set up to protect against security and safety threats from goods entering the EU. From 1 March 2023, all air carriers, freight forwarders, express couriers, and postal operators involved in the transportation of goods by air to or through the EU must provide a complete set of Entry Summary Declaration data on the goods, prior to their arrival at the EU external border.
Climate change adaptation should be Africa’s priority (The East African)
The annual UN climate talks in Egypt last month were a breakthrough for the developing world. For the first time, participants agreed to create a “loss and damage fund” to compensate poor countries for the harm caused by global warming.
The idea that rich countries should compensate poorer ones for a problem created by the industrialised world is not new. The tiny island state of Vanuatu first mooted such a scheme in 1991. But the clamour for climate reparations has grown louder as devastation has swept around the world.
Doha Political Declaration adopted by world leaders to fast-track progress in least developed countries (Down to Earth Magazine)
The Fifth United Nations Conference on the Least Developed Countries (LDC5) concluded with adoption of the ‘Doha Political Declaration’ by the world leaders. The declaration made by the head of the states is a key outcome of the second part of LDC5 conference held under the theme “From Potential to Prosperity” at Qatar from March 5-9, 2023.
DPoA (2022-2031) consisted of six key focus areas including eradicating poverty, leveraging the potential of science and technology to fight against multidimensional vulnerabilities and to achieve the SDGs, addressing climate change, environmental degradation, recovering from COVID-19 pandemic and building resilience against future shocks for risk-informed sustainable development.
“Around 25 developing economies are spending over 20 per cent of government revenues solely on servicing debt,” said UN Secretary-General António Guterres in his statement at the conference.
The political declaration made at Qatar is significant since it comes amid simultaneous global risks of rising cost of living and inflation as well as climate change impacts.
Inclusive access to digital technologies and education is crucial to reducing gender inequalities and empowering rural women and girls – that was the message from three United Nations’ food and agriculture agencies as they marked International Women’s Day 2023.
Participants at the event recognized that while digitalization on its own cannot solve all the gender-related disadvantages women face, if provided with equal access to digital technology and education, women can have a more active and effective role in our agrifood systems.
“Without increased access to digital technology and innovation, rural women and girls will continue to face barriers and socio-economic disadvantages, making it harder for them to fully participate in rural economies,” said IFAD Associate Vice-President Jyotsna Puri.