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Kenya second-hand clothes imports from China rise 86pc (The East African)
The quantity of second-hand clothes imported from China, which is Kenya’s main source of the popular low-cost used clothing, jumped by 86.2 per cent in the first quarter of this year signalling increased demand.
Data from Chinese authorities shows the country exported 31,594 tonnes of second-hand clothing and accessories to Kenya between January and March 2024, valued at $22.732 million (Ksh3.03 billion). In the first quarter of 2023, the value of second-hand clothes imported from China was $20.651 million (Ksh2.768 billion) for 16,962 tonnes brought in.
Second-hand clothes, which are commonly known as mitumba, are popular, especially among low and middle-income earners due to their low price compared to new clothes which are more expensive. The trade is a multi-billion-shilling enterprise employing an estimated two million individuals, according to government estimates.
Traders imported 177,664.4 tonnes of second-hand clothes in 2022 valued at Ksh19.9 billion, according to the Kenya National Bureau of Standards (KNBS).
Kenya economy to overtake Angola, IMF forecast shows (The East African)
Kenya will overtake Angola to become the fourth largest economy in sub-Saharan Africa this year, behind South Africa, Nigeria, and Ethiopia, a forecast by the International Monetary Fund (IMF) shows. The forecast sees Kenya maintaining that position until the end of 2029.
Last year, Kenya’s GDP was estimated to have grown to $108.9 billion (Ksh15.14 trillion, using the current exchange rate) from $113.7 billion (Ksh13.37 trillion on the existing rate then) in 2022. Ethiopia, which has extended its lead over Kenya, is projected to overtake Nigeria in two years to become the second-largest economy in the region.
The size of the Ethiopian economy — which was smaller than Kenya’s in 2020 — continued to grow and is estimated to have increased to $159.74 billion (Sh21.165 trillion) in 2023, widening the gap between it and Kenya. Ethiopia’s economy is also expected to hold steady at the second position for three years to 2029.
Tanzania unveils priorities as new investment budget is tabled (The Citizen)
Completing the preparation of the National Development Vision 2050 and finalising the drafting of a new investment policy and its implementation strategy are among the priority areas for the Planning and Investment docket in the 2024/25 fiscal year.
The Minister of State in President’s Office responsible for Planning and Investment, Prof Kitila Mkumbo, who tabled his docket’s budget for 2024/25 on Monday April 22, 2024, said the focus areas also included completing the integration of the Tanzania Investment Centre (TIC) and the Export Processing Zones Authority (EPZA) which will result into establishing a new institution to oversee private sector investment issues.
Other priorities are initiating competitions on how regional secretariats and local government authorities attract investments and create a conducive environment for investment and trade; and revitalising the business and investment environment improvement plan that will identify new investment and business challenges in the country and how to address them.
Zambia seeks power imports for key mining sector (Engineering News)
Zambia’s State-owned electricity utility Zesco said on Monday it is seeking to import power to avert an energy deficit that could affect output in Africa’s second-largest copper producer.
The southern African country generates 86% of its electricity from hydropower stations. Power generation has been hit by a severe drought induced by El Nino - a weather phenomenon resulting from the abnormal warming of the waters in the eastern Pacific, which raises temperatures globally. As a result, Zambia expects a power generation deficit of 700 megawatts this year, Zesco said in a statement.
“We are negotiating additional electricity imports that will be strategically allocated to crucial sectors, including mining, agriculture, and manufacturing to support economic stability and growth,” Zesco said. It did not give details of how much power it seeks to import.
Lesotho CSOs Shape African Development Bank’s New Country Strategy (AfDB)
Lesotho’s civil society organizations (CSOs), operating under the umbrella of the Lesotho Council of NGOs, convened on March 21, 2024, to evaluate the African Development Bank’s (AfDB) portfolio performance in the country. The meeting with Bank representatives aimed to gather input on the Bank’s current Country Strategy Paper (CSP) for Lesotho (2020-24) and to discuss the upcoming CSP for 2025-29. These CSOs play a pivotal role in implementing development initiatives spanning HIV/AIDS, agriculture, food security, climate change, education, health, child protection, WASH, and budget analysis, among other areas. Moreover, they are instrumental in advancing sustainable development goals and shaping responses to the COVID-19 pandemic and recovery efforts in Lesotho.
Nigerians query high food prices despite dollar’s crash (Vanguard)
With Naira appreciating to N1, 300 to the dollar thus giving a ray of hope that the economy is recovering, Nigerians, including farmers and Civil Society Organizations, CSOs, are puzzled that the heartwarming development was yet to reflect on food production and prices. They pointed out that prices of farm inputs are still very high while interest rates are far above farmers can afford among other factors. However, they suggested how government can ensure the appreciation of the Naira is sustained to eventually impact on food production and make prices affordable by Nigerians.
The National President, All Farmers Association of Nigeria, Ibrahim Kabir, said stronger Naira will lead to higher purchasing power and more food would be bought. “The stronger the Naira the higher its purchasing power and the more food you can buy with it, therefore, food will become more affordable, which is a prerequisite for food security.”
Turkey to drill oil off Somali coast starting in 2025 (The East African)
Somalia says Turkey will begin drilling oil off the country’s massive coastline from next year, according to the Director General of the Somali Ministry of Petroleum and Mineral Resources, Mohamed Hashi Abdi ‘Arabey’. Talking to the BBC Somali Service, Abdi affirmed the recent assertion by a Turkish official on a plan for deep-sea oil drilling operation from early 2025.
“It is correct, and it is part of the agreement we reached (with Turkey). They will begin seismic works and drilling at the coasts facing Barawe and Hobbio districts,” Abdi, agreeing with information released by Turkey’s Energy and Natural Resources Minister Alparslan Bayraktar last week. Barawe is about 200 km south of Mogadishu while Hobbio is about 500 km to the northeast. Somalia in early March had signed a new oil and gas deal with Turkey in which officials said will aid cooperation in exploration and exploitation of the hydrocarbons.
Africa is making progress in 12 of the 17 Sustainable Development Goals (SDGs), but the current pace of progress is insufficient to achieve the goals by 2030, according to an experts report on the progress on Africa Sustainable Development.
The report indicates that progress on the SDG agendas varies across subregions. West and North Africa are the best performers. While East Africa has relatively low performance. “None of the subregions is on track on achieving the SDGs goals. There is also a general issue of lack of data in tracking the progress in Africa,” says the experts report. Antonio Pedro, the Deputy Executive Secretary for Programme Support at the ECA underlined the lack of robust data as a major hurdle in tracking progress accurately. Improving data systems to effectively monitor and achieve the SDGs is essential, he stressed.
“Addressing wide-ranging challenges—including social, political, environmental, and economic—is essential; specific focus areas like women’s empowerment, peace building, and security need targeted attention,” said Mr. Pedro, stressing the need to take advantage of technological advances, including artificial intelligence, to target interventions and achieve the SDGs with greater efficiency.
The Southern African Development Community (SADC) Secretariat attended the ground-breaking ceremony for the SADC Regional Fisheries Monitoring, Control and Surveillance Coordination Centre (MCSCC) on the 22nd of April 2024 in Ka-Tembe, Maputo, Mozambique.
Following approval of the Charter establishing the SADC MCSCC by SADC Council of Ministers in August 2017, in Pretoria, South Africa, the Charter entered into force on 8th April 2023 after reaching two-third majority of Member States. With this, the State Parties to the Charter namely, Republic of Angola, Republic of Botswana, Kingdom of Eswatini, Kingdom of Lesotho, Republic of Madagascar, Republic of Malawi, Republic of Mozambique, Republic of Namibia, Republic of South Africa, United Republic of Tanzania and Republic of Zambia established the MCSCC as an international organisation and an autonomous and self-accounting institution of SADC. The Republic of Seychelles became the Party to the Charter following accession in July 2023.
Improving commercialization, post-harvest loss vital to food self-sufficiency: MoA (Ethiopian Press Agency)
Expanding commercialization and reducing post-harvest loss crucial to ensure food self-sufficiency in Ethiopia, said the Ministry of Agriculture (MoA). Approached by The Ethiopian Herald, MoA Food and Nutrition Coordination Office Head Alemtsehay Sergawi said that expanding agriculture commercialization, ensuring food safety and reducing post harvesting losses would contribute to ensure food self-sufficiency in the country.
The nutrition sensitive agro-food system strategy implementation, focusing on widely producing of green leafy vegetables and others would contribute to fill the micro nutrient deficiency. The process needed ensuring the availability of nutritionally enriched food products by affordable price to community, she said. Food import substitution would be achieved by properly managing agricultural products’ losses as well as enhancing quality production and productivity, Office Head added.
Step towards harmonized agricultural policies and regulations (COMESA)
COMESA is currently hosting a stakeholders’ workshop on Sanitary and Phytosanitary (SPS) measures from 22-30 April 2024 in Nairobi, Kenya. Attended by sector specialists from COMESA Member States, its objective is to revise the COMESA Sanitary and Phytosanitary (SPS) Regulations, SPS Strategy, and develop Implementation Plans for the Food Safety, Plant Health, and Animal Health Technical Working Group (TWGs).
COMESA SPS Regulations were developed in 2009, with a focus on the harmonization of SPS policies and measures to facilitate trade in the region and beyond. However, these regulations have been facing difficulties in terms of implementation due to several factors, including lack of technical capacity.
UNECA: Agricultural innovation needed to aid food production in Africa (ProAgri)
African countries have struggled to attract green financing amid slow inflows of climate finance promised by richer countries. Experts say this, in turn, has exposed poor African countries to a cycle of missed food production targets, with analysts noting that governments must look for innovative ways to attract investment into sectors such as smart agriculture and drought resilient crop varieties.
This is despite years of numerous conferences to address these challenges, with Veronica Jakarasi, the Chief Director in Zimbabwe’s Climate and Meteorological Services, noting that: “To attract green financing, Africa needs to have policy and regulatory frameworks with set targets in line with ambitious development.”
See also: Reviving use of local seeds in African farming (SciDev.net)
The world’s electric car fleet continues to grow strongly, with 2024 sales set to reach 17 million (IEA)
More than one in five cars sold worldwide this year is expected to be electric, with surging demand projected over the next decade set to remake the global auto industry and significantly reduce oil consumption for road transport, according to the new edition of the IEA’s annual Global EV Outlook.
The latest Outlook, published today, finds that global electric car sales are set to remain robust in 2024, reaching around 17 million by the end of the year. In the first quarter, sales grew by about 25% compared with the same period in 2023 – similar to the growth rate seen in the same period a year earlier, but from a larger base. The number of electric cars sold globally in the first three months of this year is roughly equivalent to the number sold in all of 2020.
Substantial investment in the electric vehicle supply chain, ongoing policy support, and declines in the price of EVs and their batteries are expected to produce even more significant changes in the years to come. The Outlook finds that under today’s policy settings, every other car sold globally is set to be electric by 2035. Meanwhile, if countries’ announced energy and climate pledges are met in full and on time, two in three cars sold would be electric by 2035. In this scenario, the rapid uptake of electric vehicles – from cars to vans, trucks, buses, and two- and three-wheelers – avoids the need for around 12 million barrels of oil per day, on a par with current demand from road transport in China and Europe combined.
The unprecedented speed and reach of Artificial Intelligence have sparked international debates and caused both excitement and alarm, and raising important questions about the impact of this revolutionary technology on economies and societies. Artificial Intelligence is already becoming a reality with an increasing number of industries and government institutions integrating this technology and an increasing number of users of AI applications are recorded every day.
It’s within this context, the 44th Ordinary Session of the African Union Executive Council endorsed the Conceptual framework and tasked the AU Commission to expedite the development of a Continental AI Strategy that is comprehensive, forward-looking and action-oriented to effectively harness the potential of AI potential to transform the continent in line with the AU Agenda 2063 goals, while managing associated risks and harms.
In order to facilitate wide engagement and contribution into the Continental AI Strategy, the AUC will host a series of online consultations open to all stakeholders during April 2024.
Digital access to unlock Africa’s potential, President Ruto says (The East African)
Kenya’s President William Ruto has intensified calls to African government and business leaders to make the continent future-ready by incorporating technology. Speaking on Monday when he presided over the opening of the Africa Connected Summit 2024 in Nairobi, Dr Ruto told delegates that Africa stands to reap big from the digital revolution if those in positions of influence made the right decisions.
“Africa’s digital infrastructure coverage, access, and quality lag behind other regions yet it does not have to be this way because the most transformative interventions are just but a few decisions away,” he stated. “We must all be concerned by the fact that our rate of connectivity is poorer than the existing potential,” he added. The five-day summit has convened ICT thought leaders as well as policymakers from across the continent to assess ideas and partnerships.
Digital Tax Wave Spreads across Africa (Kenyan Wall Street)
African countries are racing to enact rules for non-resident suppliers to account for taxes on electronically supplied services (ESS), a new report by PwC indicates.
Out of the 54 countries in Africa, 21 have already enacted the rules for non-resident suppliers to account for value added taxes or the goods and sales tax on electronically supplied services with five more countries (Botswana, Ethiopia, Mali, Republic of Congo and Rwanda) in the pipeline. Some countries have also introduced a Digital Services Tax (DST) or a similar levy on the gross revenues derived by digital platforms and service providers from certain activities or transitions in their jurisdictions.
“As the digital economy continues to evolve, and as tax authorities continue to adjust to Africa’s remarkable digital transformation, it is essential for businesses to understand and closely monitor tax developments affecting the digital economy in every country where they supply digital services,” notes Job Kabochi, PwC Africa Indirect Tax Leader.
The PwC VAT in Africa Digital Services report notes that tax authorities have taken notice of Africa’s growing digital economy. When digital activities and transactions take place within their jurisdictions or among residents of their jurisdictions, tax authorities have a vested interest in collecting the tax revenue due from these activities.
Four new reports released on Open Internet approaches in Africa (EEAS)
New European Union (EU)-funded reports were released highlighting Open Internet Approaches in four African countries: Burundi, Kenya, Senegal and South Africa. By looking at case studies in Burundi, Kenya, Senegal and South Africa, the four reports unpack Open Internet connectivity as a promoter of human-centric development. They also shed light on the crucial role of a free, global, reliable, affordable and secure internet in driving social and economic growth in line with the United Nations Sustainable Development Goals (SDGs) and the objectives of the African Union’s Agenda 2063.
According to the new reports prepared by a team of independent experts contracted by the European Commission “Digital technologies and the Open Internet are two distinct concepts that, if blended into a consistent policy approach, create a digitisation process that maximises the opportunities for social and economic growth.”
Each of the four reports serve as a roadmap for other countries and regions, for how Open Internet approaches can create an environment that will enable and support digital development, capitalise on its economic potential, while respecting fundamental rights and values.
Digital innovation can revolutionise trade in Africa (Africa LSE)
Africa’s trade landscape is experiencing a transformation, driven by digital innovations that dismantle longstanding barriers for small businesses. These businesses, crucial for growth and job creation, often struggle with financial constraints, adherence to quality standards, limited access to information, and logistical inefficiencies. Ebrima Faal examines these issues and explores how technology is paving the way for a new era in African trade.
Africa Needs $9 Billion to Expand Fuel Infrastructure, Puma Says (BNN Breaking)
Africa must invest $9.3 billion to expand fuel-transportation infrastructure to avoid supply disruptions as demand grows, according to Puma Energy, one of the continent’s biggest fuel retailers.
The continent has a sparse network of fuel pipelines that make up only a fraction of what’s been built in the US. Fuel distribution units of traders including Vitol Group see Africa as a place of transportation growth that’s reliant on gasoline and diesel — which will require investment. “You might have the right price, the right regulation, but if your ports are congested, if the roads are congested, if the pipeline leaks, if there is no storage, you will not have energy security,” Fadi Mitri, head of Africa for Trafigura Group subsidiary Puma, told a conference in Cape Town.
Demand for hydrocarbon fuels will grow 56% in Africa by 2040, while a lack of fuel-storage facilities and port access will create bottlenecks and slow the pace of supply, said Mitri, who cited new research by Puma and consultant Citac.
Africa needs to build more oil infrastructure (Engineering News)
Africa’s mid- and downstream oil products supply infrastructure is ageing and suffers from a lack of investment, outdated policy frameworks and insufficiencies in regional, national and urban energy planning when compared with other regions across the world.
Efforts have also not kept pace with rapidly growing populations and urbanisation trends, which has resulted in fragmented supply routes, bottlenecks and insufficient infrastructure capacity, contributing to an overreliance on trucks, congestion in cities and ports, and disrupted access to energy.
This collectively results in increased costs for governments and citizens, and is impairing the region’s socioeconomic development potential, energy company Puma Energy and Africa energy consultancy CITAC note in their ‘Fuelling Africa’s Potential: Bridging the Gap in Energy Infrastructure’ White Paper. Demand in sub-Saharan Africa for oil products, including gasoline, diesel, kerosene and Jet A1 fuel, increased by 9.2% year-on-year in 2021 and by 3.7% year-on-year in 2022 to reach 91.3-million tonnes.
Hydrogen offers Africa an opportunity as big as its size (Kallanish Commodities)
Africa’s potential in the renewable hydrogen industry has been emphasised by different stakeholders both in the continent and abroad. The Africa Hydrogen Opportunity report published by the Hydrogen Council estimates renewable capacity factors of 69% for wind and 25% for solar, thanks particularly to northern and southern countries. Central African countries enjoy hydropower and in the East African Rift Valley, geothermal potential has been identified. Coupling these resources with abundant land, Africa is strongly positioned to become a renewable hydrogen and derivatives producer and exporter.
The report estimates that countries in the region could capture 15% of the expected globally traded hydrogen volume. Green hydrogen production for export could grow from 1 million tonnes/year in 2030 to 11m t/y in 2050. Overall, renewable hydrogen production could mobilise a cumulative investment of $400 billion in Africa, it forecasts. However, despite the major opportunities highlighted by the Hydrogen Council and a number of other stakeholders, major challenges need to be overcome.
Europe-Africa Forum returns to Marseille on 7 May to promote sustainable development (Afrik 21)
How can Africa and Europe work together to train a new generation of talent and leaders capable of meeting new expectations? This is one of the questions to be answered by the participants expected at the Europe-Africa Forum on 7 May 2024 in Marseille. At least 1,000 participants are expected in France’s second-largest city for this third edition of the forum, whose theme is “Explore, Succeed, Invest”.
“The 2024 event will highlight the challenges, opportunities and synergies between African and European nations, providing a unique platform for dialogue and the exchange of ideas. Africa is undergoing a major transformation, driven by its dynamic demographics and the vitality of its economic and cultural players. With its natural resources of energy and raw materials, Africa is ready to play a central role in global transitions. We are therefore seeking to catalyse these transformations”, say the organisers of this event, which is supported by the Aix-Marseille-Provence metropolitan area and the shipping company CMA-CGM.
Korea-Africa 2024: Prioritise trade, investment, industrialisation, AKEDA urges African leaders (The Sun Nigeria)
Ahead of the Korea Africa Summit 2024 scheduled for Seoul, Korea, from June 4 and 5, a private-public sector group, Africa Korea Economic Development Association (AKEDA), has challenged African leaders to utilise the opportunity offered by the summit to adopt sustainable economic partnership framework aimed at increasing trade relations and investment, inclusive growth, and upward review of official development aid from Korea in Africa.
The summit, the first in the history of Korea-Africa relations to be hosted by the government of Korea, would have in attendance participants from 54 African countries including heads of state and government, ministers, policymakers, private sector leaders, multilateral institutions, and United Nations system, regional development banks, among others.
“The partnership between Africa and Korea would gravitate towards mutually beneficial outcomes and outputs that support the aspirations of everyone. “The recognition of economy and investment potentials of Africa, which receives deserved attention of the government and people of Korea, through the decision to host this auspicious summit is pivotal in the history of Korea-Africa relations in the last 60 years.”
Transcript of African Department April 2024 Press Briefing (IMF)
Let me start with a bit of good news, which is that after four challenging years and multiple shocks, Sub-Saharan Africa’s economy appears to be on the mend. We expect growth to accelerate to 3.8 percent from 3.4 percent last year, after peaking at almost 10 percent in late 2022. We are also seeing inflation having been halved in the early months of this year, thanks to decisive actions by central banks. This includes slower food price increases, a positive development in a region where the cost-of-living crisis has been acute in recent years.
These are encouraging signs, but the region is not out of the woods. Far too many countries still face a funding squeeze. Their borrowing costs are high and funding sources curtailed. Government interest payments now account for about 12 percent of revenues, more than double the level a decade ago, and official development assistance concessional financing has become much more scarce.
What does this mean for countries? It means much needed funds are being diverted from spending on investment development to interest payments, with consequences for the region’s growth potential and its ability to withstand future shocks. Sustaining reforms will be important for macroeconomic conditions to continue to improve. This will ensure that countries in the region can build their resilience to shocks, generate jobs, diversify their economies, and improve living standards.
Global crises fracturing foreign investment, impacting developing economies (UNCTAD)
Launched by UN Trade and Development (UNCTAD) on 23 April, the report entitled “Global economic fracturing and shifting investment patterns” examines the complex landscape of global foreign direct investment (FDI). The report sheds light on ten transformational shifts in investment priorities across industries and regions, shaped by trends in global value chains (GVCs) and geopolitical dynamics, and emphasizes the necessity of integrating sustainability and development into investment strategies.
UN Trade and Development highlights key FDI trends that have evolved over the past two decades. Firstly, the growth of FDI and global value chains (GVCs) is no longer aligned with GDP and trade growth, indicating a significant shift in the global economy. Since 2010, global GDP and trade have continued to expand at an annual average of 3.4% and 4.2% respectively, even amidst rising trade tensions.
By contrast, FDI growth has stagnated near 0%, in the midst of rising protectionism, growing geopolitical tensions and increased investor caution. Additionally, there is a growing gap between the manufacturing and services sectors, with investments increasingly leaning towards services.
Related: Shifting investment patterns: 5 key FDI trends and their impact on development
UN chief urges ‘surge in investment’ to overcome $4 trillion financing gap (UN News)
According to UN estimates, the world is facing an annual financing gap of about $4 trillion to achieve sustainable development, leaving countries with hardly any resources to invest in better education, healthcare, renewable energy or social protection.
“The Sustainable Development Goals (SDGs) are hanging by a thread, and with them, the hopes and dreams of billions of people around the world,” António Guterres said, addressing the UN Economic and Social Council’s (ECOSOC) 2024 Forum on Financing for Development. In particular, the UN chief urged countries to push for the SDG Stimulus of $500 billion annually in affordable long-term finance for developing countries, which he proposed in February 2023.
Recalling that the Stimulus was welcomed by world leaders at the SDG Summit last year, he stressed “now it’s time to move from words to action and deliver affordable, long-term financing at scale.”
DP World publishes Sustainable Development Impact Disclosure (Indian Transport & Logistics)
DP World has published a Sustainable Development Impact Disclosure (SDID), making it the first company globally to adopt and disclose its development impact in countries of focus in accordance with the recently released impact disclosure guidance from the Impact Disclosure Taskforce.
The disclosure serves as a framework for private sector companies and sovereigns, to demonstrate how they drive transformation through large-scale infrastructure development into emerging markets and developing economies. Sultan Ahmed bin Sulayem, DP World Group Chairman and CEO said: “This disclosure not only demonstrates our commitment to sustainable development but also sets a path for industry-wide accountability. It’s a call to action, to catalyse positive change and drive sustainable infrastructure development on a global scale.”
Quick links
White Paper on immigration fails Africa’s free trade aspirations (The Mail & Guardian)
Andrew Dabalen: Funding squeeze not behind Africa yet (The East African)
IDA-A Crucial Player in the Evolving Global Aid Landscape (World Bank)
Trade and investment core statistics book (GOV.UK)
Funding the Future: How MDB Reform Paves the Way for SDG Progress (Modern Diplomacy)
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South Africa calls for greater engagement with Turkish businesses (Daily Sabah)
Top South African trade official emphasized Monday the vital importance of bilateral trade relations with Türkiye, calling on the Turkish business world that wants to expand to Africa to boost investment and commercial relations. As a member of the BRICS group alongside Brazil, Russia, India and China and a G-20 member, South Africa ranks among Africa’s leading economies due to its robust financial infrastructure and advanced mining sector.
Continuing its status as Türkiye’s most significant trading partner in sub-Saharan Africa, South Africa hosts all of the continent’s top 10 companies. “I believe that the trade relations between South Africa and Türkiye are absolutely vital,” South African Trade and Industry Minister Ebrahim Patel said in an interview with Anadolu Agency (AA). He emphasized Türkiye’s strategic location, large population and significant economy, highlighting South Africa as the industrial hub of sub-Saharan Africa, the continent’s industrial base.
Patel noted that this situation makes Türkiye and South Africa strong partners, pointing out that Turkish companies already have significant investments and production centers in South Africa.
South Sudan oil industry: South Africa’s deepens ties (The Exchange Africa)
In a move marking the strengthening bilateral relations between South Africa and South Sudan, the Strategic Fuel Fund (SFF), South Africa’s state-owned petroleum company, convened a key meeting with South Sudan’s national oil company, Nilepet, in Juba last week. The meeting was a highlight of South African President Cyril Ramaphosa’s state visit, underscoring the growing economic ties between the two nations.
The SFF, which operates Block B2 in South Sudan and collaborates with Nilepet through the Nile Orange joint venture, has recently completed a major phase of its oil and gas exploration campaign in Jonglei state. The initial aerial survey of the block was finished last month, setting the stage for further exploration activities.
During the meeting, both companies shared updates on the progress of their joint venture and outlined the next steps for the project. A crucial component of the ongoing work will be the environmental impact assessment scheduled over the next six months, starting with a site visit in Bor, the capital of Jonglei.
Namibia Customs strengthens its Rules of Origin competency through an advanced training workshop (WCO)
Under the framework of the EU-WCO Rules of Origin Africa Programme, funded by the European Union, the World Customs Organization (WCO), in partnership with the Namibia Revenue Authority (NamRA), held a national training workshop on rules of origin for Namibia Customs. The workshop was held in Windhoek, Namibia, from 15 to 19 April 2024 with the objective to assist NamRA in enhancing its knowledge and application of preferential rules of origin and contribute to a seamless implementation of the AfCFTA and relevant FTAs.
This workshop was conducted as part of the comprehensive technical assistance and partnership with NamRA, including in relation to the implementation and launch of an advance rulings system in Namibia in July 2022, and builds on the acquis from an intermediate training conducted in January 2023. The support provided under the RoO Africa and the EU-funded HS Africa Programmes allows for the deployment of all-inclusive and wide-ranging capacity building activities, to enhance the infrastructure and capacity of NamRa both on RoO and HS.
Kenya opens window for Uganda powder milk (The East African)
Authorities in Nairobi have placed order for more suppliers of milk powder from Uganda following reports that a drop in milk production is expected in the coming months. The EastAfrican has learnt that the Kenya Dairy Authority has opened a window for more milk powder imports from Uganda as the July-August and December-February dry months approach. During these months, Kenya is usually plunged into a liquid milk production deficit, which pushes up prices.
“Kenya is to increase the number milk importation permits to more milk powder from Uganda which they have been restricting to be landed on their market,” Akankiza Mpiira, executive director at Uganda’s Dairy Development Authority told The EastAfrican.
Dairy industry players say that for each kilogram of milk powder locked out, a market for 10 litres of liquid milk is created. “Liquid milk exports are accepted in Kenya but milk powder is restricted. This is because each kiligramme of powdered milk stopped, the market for 10 litres of liquid milk is protected,” the DDA says.
Kenya loses 42pc of Tanzania maize imports, seeks alternative sources (The East African)
Non-tariff barriers have pushed down Kenya’s maize imports from Tanzania to 63 percent of the total imports of the grain in 2022/2023 marketing year, from 97 percent in 2021/2022.
A new report by the US Department of Agriculture (USDA) shows that Kenyan traders imported maize from Tanzania, Zambia, Uganda and South Africa, but imports from Tanzania dropped as a result of the imposition of export restrictions by Dodoma. Tanzanian restrictions on maize exports were in the form of requirements that exporters to Kenya apply for export certificates.
“Kenya traders have begun to source more corn from non-traditional sources such as Zambia and South Africa,” reads the report.
Historically, Kenya has sourced most of its imported corn from Tanzania. However, traders have had difficulty exporting corn from Tanzania following the implementation of new export procedures. In the past, the Government of Tanzania has imposed export bans or restricted access to export permits when domestic supplies are low.”
Imports from Zambia and South Africa increased to 13 percent and 10 percent from one percent and 0.38 percent respectively. Maize imports from Uganda constituted five percent of the total maize imports from 0.36 percent.
Tax pain for traders as states push for more revenues to pay debt, run projects (The East African)
Traders across the region are up in arms against heavy taxation by the ruling regimes that are hard-put to fund burgeoning budgets amid a cash crunch caused by debt servicing and slowing economies. The governments of Kenya, Uganda and Tanzania have proposed a raft of tax proposals aimed at generating more revenues despite protests from taxpayers.
Afreximbank pledges to assist Zim on framework for SME financing (NewsDay)
Afreximbank has pledged to assist Zimbabwe to develop a model law on factoring as the bank tips the sale of accounts receivables at a discount as a solution to plug the financing gap affecting small to medium enterprises (SMEs).
Speaking at a two-day regional conference on factoring, receivable finance and credit insurance which opened in Harare on Monday, Afreximbank executive vice president in charge of Intra African Trade Bank Kanayo Awani said factoring would plug the financing gap faced by SMEs.
A model law on factoring that enabled countries to create a conducive legal and regulatory environment was developed in 2016 and has since been used by seven countries in passing factoring laws.
WCO IPR border enforcement workshop held in Mozambique (WCO)
From 15 to 19 April 2024, the World Customs Organization (WCO) conducted a national workshop on the protection of intellectual property rights (IPR) in Maputo, Mozambique. The methods used by criminals to counterfeiting and piracy of goods have become increasingly sophisticated in recent years. As a result, Customs must reaffirm the importance of IPR protection and, where necessary, update its officers’ knowledge while adapting its strategy.
This workshop was in keeping with the WCO’s approach under its IPR Strategy, aimed at combating IPR infringements and piracy in international trade, a central pillar of which is the organization of capacity-building activities.
This workshop gave experts an opportunity to present to participants the WCO’s new tool titled “Case studies and risk indicators to identify IPR, health and safety infringing goods related to e-commerce” and to explain how it could support Customs officers’ work when processing goods traded through e-commerce. Participants also familiarized themselves with the features of the IPR CENcomm tool, used for secure communication in relation to IPR infringements.
Trade Policy Review: Morocco (WTO)
Since its last trade policy review (TPR) in 2015, Morocco was able to increase its GDP per capita from USD 3,236 to USD 3,570. That period was also marked by a major recession in 2020 (-7.2%), owing to the effects of the COVID 19 pandemic. However, a strong rebound in 2022 enabled the Moroccan economy to return to its pre-pandemic level very quickly.
Dominated by manufactured goods, Morocco’s international trade grew considerably between 2015 and 2022. The European Union remained the Morocco’s main trading partner. Moroccan exports are fairly diversified, consisting primarily of chemicals, vehicles and transport equipment, electrical machinery and equipment, textiles, vegetable products and mineral products. Historically, Morocco has run a services balance surplus, largely thanks to tourism. Morocco remains highly attractive to foreign investors, as illustrated by the fact that the stock of foreign direct investment (FDI) increased from USD 49.7 billion in 2015 to USD 73.0 billion in 2021.
Nigeria, China Sign Free Trade Zone Agreement To Boost Economy (TVC News)
Nigeria’s fertile land stands as a beacon of hope, providing a fertile ground for farming and trade and also accelerate transformative changes across Africa. This was the collective opinion of Stakeholders at the investment summit and Utopia free trade zone establishment ceremony in Nigeria.
Gathered in anticipation of a landmark moment are, These are investors from the financial sector, government functionaries, traditional rulers, and key figures from various ministries, departments, and agencies. They are here to witness the dawn of a new era, which is the signing of a memorandum of understanding on the Utopia Free Trade Zone between Nigeria and China. For these stakeholders, the main objective is to boost the Nigerian economy. They say that Nigeria has a significant advantage in fostering economic growth throughout the African continent.
ECOWAS Investment Forum shows opportunities in West Africa (ITC)
The ECOWAS Bank for Investment and Development (EBID) hosted the event in Lome, Togo, from 4 to 5 April. Togo Prime Minister Victoire Tomegah Dogbé opened the forum, held under the theme ‘Transforming ECOWAS Communities in a Challenging Environment’. She emphasized the need for a wide range of investment across human capital, energy, the digital economy, and infrastructure.
Discussions during the forum addressed crucial topics such as food security, fortifying agricultural supply chains, and enhancing security in West Africa. Panellists proposed strategies for tackling challenges in agriculture, underscoring the significance of cooperation and innovation for sustainable development. They underscored major challenges around access to finance, which seriously affects small businesses, particularly for agribusinesses and young entrepreneurs. Among the solutions discussed were ways development finance institutions such as EBID could make facilitate access to loans.
This is one of the issues that the International Trade Centre (ITC) addresses with the ECOWAS Commission through the West Africa Competitiveness Programme (WACOMP). WACOMP facilitated the participation of nine investment promotion agencies from West Africa. These agencies showcased investment projects in their countries. The delegates engaged with business leaders on investments in critical areas such as agriculture, infrastructure development, support to small businesses, energy and climate change.
African Development Bank rapidly exceeding climate finance targets (AfDB)
African Development Bank Group President Akinwumi Adesina on Thursday called for more urgent action as climate change continues to wreak havoc in many African countries. He was speaking at a high-level roundtable on climate finance convened during the International Monetary Fund and World Bank Spring Meetings.
Adesina said the ongoing devastating drought in several parts of Africa underscored the need for all stakeholders to come together to accelerate support and financing for Africa. “Africa is in the eye of the storm from climate change, accounting for 9 out of the 10 most vulnerable countries to climate change globally,” Adesina told participants. He added: “But Africa is not getting what it needs to adapt to climate change. Africa received just $30 billion per year for climate adaptation, while its needs are $277 billion per year, leaving a huge financing gap.”
Measuring Climate Results (World Bank)
At COP28, the Multilateral Development Banks (MDBs) agreed to developing a common approach for measuring climate results to complement tracking of climate finance. The MDBs have made significant progress in scaling-up climate finance commitments. However, there is recognition that climate finance neither measures the results nor the outcomes of climate actions.
This Note, MDB Common Approach to Measuring Climate Results, presents the first common structure to measuring climate results, a framework to define, measure, and link global progress on climate mitigation and adaptation with MDB results. This is a significant step which aims to provide stakeholders with a clearer view of the climate results of the MDBs related to the goals of the Paris Agreement.
AfDB secures US$7.3million fertilizer deal for African farmers (The Independent Uganda)
The Africa Fertilizer Financing Mechanism (AFFM) has secured a CAD$10 million (US$7.3 million) funding commitment from Global Affairs Canada, aimed at enhancing food production and increasing income for about 800,000 smallholder farmers across Africa. This financial boost is part of a strategic initiative to empower fertilizer importers and aggregators with access to credit to ensure broader distribution and use of fertilizers across the continent.
Signed on March 25, this year, the funding agreement has earmarked (US$7.3 million, Shs 28bn) for the AFFM’s ‘Fostering Africa’s Agricultural Productivity through Fertilizer Value Chain Financing’ (FOSTER) programme. This programme is designed to accelerate the use of fertilizers and improve agricultural productivity in the African Development Bank’s (AfDB) regional member countries through innovative financing solutions.
How to end hunger in sub-Saharan Africa: fight inequality, gender imbalances and climate change (The Conversation)
A greater part of Africa’s population can’t afford a healthy diet than any other regional population. Food insecurity in sub-Saharan Africa is caused by climate change, high levels of poverty, rapid population growth, low economic growth, inadequate infrastructure and conflicts. Women are the backbone of agricultural labour in the region. The problems of limited access to land, water and technology faced by these women also worsen food insecurity.
People have a right to food – to produce food, to be free from hunger, and to participate in policy decisions that affect food systems. The right to food is also recognised and protected by various international frameworks and agreements. But in sub-Saharan Africa, access to food has long been regarded as a privilege rather than a basic human right.
Our research found that governments across sub-Saharan Africa need to target inequality, gender imbalances and environmental degradation if they want to end hunger. This is because food sovereignty is very tightly interlinked with social justice and sustainable development.
Africa’s share of global poor rises significantly – UNECA (APAnews)
Africa’s share of global poor people has increased significantly, with one reason being low scientific and technological progress across the continent, a senior official of the United Nations Economic Commission for Africa (UNECA) said.
At the opening of the Sixth African Science, Technology and Innovation (STI) Forum on Sunday in Addis Ababa, the capital of Ethiopia, Deputy Executive Secretary of UNECA Antonio Pedro said Africa’s share of global poor people increased from 15 percent in 1990 to 63 percent in 2018 and may reach 90 percent by 2030.
Pedro said Africa must invest in human capital development, learn how to produce, sell and use emerging technologies such as artificial intelligence and genomics that are transforming every aspect of life.
In the context of the 33rd Session of the FAO Regional Conference for Africa being held this week in Morocco, the Director-General of the Food and Agriculture Organization of the United Nations (FAO) QU Dongyu called for increasing collaboration and investment for a more efficient, inclusive, resilient, and sustainable livestock sector in the continent.
In a special event organized by the African Union Commission aimed to provide a space to exchange knowledge aimed at the effective implementation of the Livestock Development Strategy for Africa, Qu emphasized the significance of the Strategy, hailing it as a major transformation instrument to guide innovative actions and achieve the sustainable development of the sector as outlined in FAO’s Sustainable Livestock Sector Transformation vision.
Qu explained that while 60 to 80 percent of rural households in most African countries rely on livestock for various purposes, the consumption of animal-source food in Africa remains relatively low but is expected to increase by 2050. This increase, he noted, would be driven by factors such as population growth, economic development, urbanization, and dietary shifts.
Africa can build a more prosperous, just, and sustainable future if countries invest in science, technology and innovation, these are sentiments echoed by African leaders, representatives and experts at the opening of the two-day Sixth African Science, Technology and Innovation (STI) Forum in Addis Ababa Ethiopia.
For his part, Antonio Pedro, Deputy Executive Secretary for Programme Support at the ECA said Africa must invest in human capital development, research and development (R&D), and in learning how to produce, sell and use emerging technologies such as artificial intelligence and genomics that are transforming every aspect of life. “Technology should advance the wellbeing of the millions of households, farmers, fishermen, and many others that still use basic tools to lift themselves out of extreme poverty,” said Mr. Pedro.
“Science and technology can play an important role in increasing the efficiency of service delivery to the poor, monitoring living conditions, predicting impending crises in crowded or remote areas and informing decision-making during crises,” said Mr. Pedro.
China needs to align investments with Africa’s energy transition goals (The Independent Uganda)
China should now focus its economic engagement with Africa towards supporting the continent’s energy access and energy transition objectives, recommends a new study by Boston University’s Global Development Policy Centre and the African Economic Research Consortium. The advice, the study notes, aligns with the overarching aims of the United Nations’ 2030 Sustainable Development Goals (SDGs) and the African Union’s Agenda 2063.
The study, published this month, analyses two decades (2000-2022) of the China-Africa economic relations, including trade, finance, and foreign direct investment (FDI), and highlights the need for a shift in the nature of the relationship. Moses Oyintarelado, a data analyst and database manager at Boston University’s Global China Initiative, says “future Chinese economic engagement with the continent especially in matters finance, investors, companies and trade facilitators, should now focus more on capital for electrification projects and renewable energy technologies that utilize Africa’s primary commodity inputs.”
According to the study China has become many African countries’ lead trading partner, surpassing the United Kingdom and the United States with trade between the two partners (imports and exports of goods) growing significantly from US$11.67bn in 2000 to a peak of US$257.67bn in total trade in 2022.
China-Africa trade gets a boost from critical minerals needed for EV battery production (South China Morning Post)
Trade between China and Africa defied economic headwinds in the first quarter of 2024, with two-way trade growing by 5.9 per cent year on year to US$70.86 billion, according to the latest customs data. This was despite a property crisis in China which affected copper demand, with a downturn in copper prices towards the end of 2023.
Mixed efforts to achieve energy goals highlighted at the end of Sustainability Week (UN News)
The unanimous declaration of the Decade of Sustainable Energy for All in 2012 aimed to hone on the importance of improving “access to reliable, affordable, economically viable, socially acceptable and environmentally sound energy services and resources for sustainable development.”
Dennis Francis said there have been both achievements and shortcomings in meeting the goal throughout the decade. He noted that developing countries experienced a 9.6 per cent annual growth in renewable energy installation and the global population with access to electricity has increased from 87 per cent to 91 per cent since 2015. Yet, he said, “the pace of energy transformations is still much too slow – and the benefits are not shared equitably.”
Sustainable transport, imperative for development, UN tells Nigeria, others (The Sun Nigeria)
The President of the 78th Session of the United Nations General Assembly (UNGA), Dennis Francis, has told Nigeria and other countries that sustainable transport is not an option, but an imperative for resilient, inclusive, and sustainable development. Francis stated this during the High-Level Meeting on Sustainable Transport at the United Nations Headquarters, New York, United States.
Francis said the crucial significance of the transport sector in the global economy cannot be overstated, adding that transportation is an industry in its own right, but it is also a vital input into considerable other industries and sectors, that themselves add to global output and growth. Francis also said transportation is a lifeline connecting communities and markets, facilitating trade, and thus driving economic growth.
World Creativity and Innovation Day 2024: ‘Transforming World, Promoting Sustainable Development’ (ETV Bharat News)
The day is focused on achieving Sustainable Development Goals through promoting and celebrating creativity and innovation. The United Nations (UN) recognised the importance of creativity and innovation in promoting sustainable development and included World Creativity and Innovation Day as a part of its initiative “Transforming our world: the 2030 Agenda for Sustainable Development.”
Improving the measurement of the creative economy (UNCTAD)
As a relatively new sector of the economy, the creative industries are hungry for reliable and internationally comparable data. But changes are underway. Ahead of World Creativity and Innovation Day on 21 April, UN Trade and Development puts forward an updated statistical framework, aimed at advancing the measurement of the creative economy.
“The framework represents a significant step forward in addressing the challenges of measuring the creative economy and trade in creative goods and services,” says Anu Peltola, director of statistics service at UN Trade and Development. Ensuring relevance and adaptability, the framework aligns with latest global statistical classifications for industrial activities and international merchandise trade statistics. It offers a tool to better quantify the economic impact of creative industries, especially where specific definitions and methodologies are lacking.
While the creative industries are an evolving concept, they generally entail creating, producing and distributing goods and services that use creativity and intellectual capital as primary inputs. Some examples can be audiovisual products, design, media, performing arts, publishing and visual arts. As one of the world’s most rapidly expanding sectors, the creative economy helps power income, jobs, and export earnings. Latest data from UN Trade and Development re-emphasize the sector’s significant contribution to global trade.
Paper: Advancing the measurement of the creative economy: A revised framework for creative industries and trade (UNCTAD)
Related: West Africa’s fashion designers are world leaders when it comes to producing sustainable clothes (The Conversation)
Secretary-General calls for UN 2.0 to tackle 21st century challenges (UN News)
Amid multifaceted crises ranging from conflicts to climate, and poverty and inequality, the world looks to the UN “to help deliver the better, safer and greener world we need,” Mr. Guterres said. “But we cannot solve 21st century problems with 20th century tools – we need a UN 2.0,” he stressed, in a message opening the UN 2.0 week.
The transformation in skills and culture, encapsulated in the UN chief’s vision of a UN 2.0, is focused on fostering cutting-edge capabilities in data, digital solutions, innovation, foresight and behavioural science – to deliver stronger results and help countries accelerate efforts to achieve the Sustainable Development Goals (SDGs).
In his message on Monday, Mr. Guterres also emphasized the need for a “forward-thinking culture” at the Organization, powered by rapid technological advances.
World Bank official calls for shake-up of G20 debt relief scheme (The Guardian)
The mechanism for providing debt relief to the world’s poorest countries is failing to produce results and requires a major rethink, a senior official at the World Bank has said. Indermit Gill, the bank’s chief economist, said that after four years the G20’s common framework – designed to speed up and simplify debt restructuring – had not provided a single dollar of new money.
More than half the 75 countries deemed poor enough to be eligible for concessional finance from the World Bank are either in distress or close to it, and Gill said cripplingly high repayments were entrenching poverty.
New Financing Tools Receive Major Funding Boost (World Bank)
New financial instruments designed to boost lending capacity and enable the World Bank Group to take on more risk for shared global challenges have received a significant endorsement. A set of 11 countries announced commitments today for the Portfolio Guarantee Platform, hybrid capital mechanism, and new Livable Planet Fund totaling $11 billion.
The World Bank Group’s unique leveraging capability enables the resources pledged to hybrid capital and the Portfolio Guarantee Platform to be multiplied six to eight times over 10 years. Under certain conditions, the leverage amount could reach tenfold.
Multilateral Development Banks Deepen Collaboration to Deliver as a System (AfDB)
The leaders of 10 multilateral development banks (MDBs) today announced joint steps to work more effectively as a system and increase the impact and scale of their work to tackle urgent development challenges.
In a Viewpoint Note, the leaders outlined key deliverables for joint and coordinated action in 2024 and beyond building on the progress since their Marrakesh statement in 2023, as their institutions work to accelerate progress toward the Sustainable Development Goals (SDGs) and to better support clients in addressing regional and global challenges.
Chair’s Statement: 109th Meeting of the Development Committee (World Bank)
Development Committee members discussed the global macroeconomic and financial impact of current wars and conflicts including the war in Ukraine, the humanitarian crisis in Gaza, as well as the shipping disruptions in the Red Sea. While recognizing the Development Committee is not the forum to resolve geopolitical and security issues and these issues will be discussed in other fora, Development Committee members acknowledged that these situations have significant impacts on the global economy. Today’s era must not be of war and conflict.
G20 Leaders Urged to Finance Global Sustainable Development (Earth.Org)
The letter to G20 leaders came ahead of a $11-billion pledge by 11 wealthy nations to fund World Bank efforts to tackle global challenges and boost sustainable development.
G20 leaders were urged to reform the global financial system and step up efforts to achieve global sustainable development and fight the climate crisis in an open letter published ahead of last week’s Spring meetings of international financial institutions.
In the letter, the 135 signatories, which include actor Stephen Fry, film producer Richard Curtis, and singer Annie Lennox, appealed to the world’s largest economies to “triple their investments in multilateral development banks, end crippling debt for low-income countries, and make polluters pay.
New sustainability approaches in shipping: Strategies for decarbonising the industry (Trade Finance Global)
In an era where environmental concerns are at the forefront of global discussions, the maritime industry, often seen as a major contributor to pollution, is under increasing pressure to adopt sustainable practices.
With approximately 90% of global trade relying on maritime transport, finding ways to mitigate the environmental impact of shipping has become imperative. Fortunately, innovative approaches are emerging, offering hope for a more sustainable future in the shipping industry.
The shipping industry is actively steering toward sustainability, addressing environmental challenges and striving for a greener future. Decarbonising international shipping is a critical endeavour to decrease the industry’s impact on the environment.
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Period poverty millions bleed in silence as prices of sanitary pads hit the roof (Vanguard)
‘Triple spending’: Zimbabweans bear cost of changing to new ZiG currency (New Zimbabwe)
Africa Is Ripe For US Business Interest And Investment (International Business Times)
What’s Next for the WTO? (Council on Foreign Relations)
Five Schools of thought reflect shipping executives’ current thinking on critical maritime issues (UNCTAD)
Working Party reviews new notifications and hears calls for greater transparency (WTO)
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Patel welcomes VW’s R4 billion investment in SA (SAnews)
Volkswagen South Africa’s (VWSA) investment of R4 billion in their assembly plant in Kariega, in the Eastern Cape, has been welcomed by Trade, Industry and Competition Minister, Ebrahim Patel. The investment will introduce a new SUV model built on the Polo platform. The move also positions the facility as the sole manufacturer of the Polo brand globally and the new SUV model will be exported to global markets.
In the last five years, the department said government has undertaken significant work to bolster automotive production in South Africa. Patel highlighted 10 actions, which have been taken in the sixth administration to support the industry.
Private renewables procurement may mitigate boom-bust cycles curbing South Africa’s green industrialisation (Engineering News)
Published ahead of the release of the much-anticipated South African Renewable Energy Masterplan (SAREM), which will outline the country’s official approach to localising renewables value chains, GreenCape’s ‘Large-scale Renewable Energy’ report forecast that there will be about 32 GW of installed renewables capacity in South Africa by 2030.
Published as one of three sector-focused national studies released as part of its 2024 Market Intelligence Report, the non-profit organisation said the emergence of private procurement should help mitigate the boom-bust cycles associated with the market’s previous heavy reliance on public procurement.
Stakeholders advocate for enhanced mail security standards amid e-Commerce surge (Nile Post)
Amid the rapid growth of electronic communication and e-commerce, stakeholders have underscored the urgent need for improved mail security standards, cybersecurity measures, and mandatory data exchange protocols. This call to action emerged during the Sectoral Workshop on Supply Chain Security and Electronic Advanced Exchange (EAD) convened by the Uganda Communications Commission (UCC).
Julianne Mweheire, representing the executive director of UCC, emphasised the importance of addressing vulnerabilities in the mail system. “As electronic communication continues to flourish, it’s imperative that we bolster our mail security standards to mitigate potential risks,” stated Mweheire.
Dawn M. Wikes, the programme manager for security at the Universal Postal Union, echoed similar sentiments, stressing the necessity for collaborative efforts to enhance cybersecurity across postal networks. “The evolving landscape of e-commerce demands a proactive approach towards safeguarding mail integrity and data exchange,” remarked Wikes.
State moves to promote avocado, coffee and cotton value chains (Kenya News Agency)
Machakos County has been identified as one of the counties for the promotion of avocado, coffee, and cotton value chains. Cabinet Secretary for Investment, Trade, and Industry Rebecca Miano highlighted that Machakos is among the counties that have strategized to become centres of investment promotion and facilitation in industrial and value chain development following devolution. Doing so, Miano added, made the county an ideal investment hub and destination in the country.
Miano also acknowledged that the county, in its annual development plan, prioritised food security, socio-economic empowerment, and infrastructure development as the three pillars in transforming the livelihoods of residents, which aligns with the government’s Bottom-Up Economic and Transformation Agenda (BETA).
Tanzania-Malawi Diplomatic Tensions Rise Over $30M Port Project (Business Day Africa)
Tanzania and Malawi are on the brink of a diplomatic standoff following Dodoma’s decision to commence the upgrade of Mbamba Bay Port, situated on the shores of Lake Malawi. Lilongwe accuses Tanzania of initiating the project without consultation, given the contested nature of the port between the two nations.
Malawi has formally requested Tanzania to suspend the project, a move likely to escalate tensions between the neighbouring countries. In a letter to Tanzanian authorities, the Government of Malawi asserts that proceeding with the project on Malawian territory without consent is both irregular and illegal. Malawi insists that the project should cease until proper consultations are conducted and consent is obtained from the Malawian government.
‘Efficient transport system key for horticulture exports’ (The Herald)
As Zimbabwe marches towards attaining Vision 2030, the Horticultural Development Council (HDC) is engaging Government to facilitate the upgrading of roads and border facilities for the easy conveyance of horticultural exports. According to HDC, each year trucks carry some 36 000 tonnes of fruit grown by farmers through the Chipinge-Birchenough Bridge Road. In essence, that is 1 440 twenty-five-tonne trucks yet the road is in bad shape. The deteriorating condition of roads has emerged as a significant obstacle to the transportation of produce and is negatively impacting the quality and profitability of exports, as produce is often damaged along the way.
Burundi, Kenya only countries with more expensive fuel than Uganda in EAC (Monitor)
Uganda currently has the third most expensive fuel in the East African region, according to a global fuel price tracker. A comparison by GlobalPetrolPrices.com – a site that tracks fuel prices globally – indicates that a litre of petrol in Uganda costs an average of $ (Shs5,529), which is slightly lower compared to Kenya and higher than what is charged in Tanzania
In East Africa, GlobalPetrolPrices.com data indicates that Kenya has the highest price for diesel with a litre costing an average of $1.487 (Shs5,666). Kenya is followed by Burundi with a litre going for an average of $1.476 (Shs5,624). Fuel prices remain a sticky issue across East Africa with an upward price movement impacting growth of the region and in particular economic health of member states.
EAC shelves one stop border post inspection at Namanga (IPPMedia)
The East African Community (EAC) has abruptly suspended the high-level border sensitization and inspection mission which was planned at the Kenya and Tanzania One Stop Border Post of Namanga. A statement released yesterday by EAC spokesperson, Simon Owaka, said the decision was taken due to some unforeseen circumstances. Originally scheduled to take place on 19th April, 2024, the mission aimed to assess the performance of One Stop Border Posts (OSBPs), identify areas for improvement, and review the status of implementation of agreed action plans.
“While this postponement is regrettable, the EAC remains steadfast in its commitment to fostering regional cooperation and enhancing border efficiencies,” reads part of the statement, adding that the EAC was actively working to reschedule the mission, and the new dates will be announced in due course.
From previous visits at other borders, it was discovered that there was a significant increase of traffic across the Uganda and South-Sudan border, indicating the growing importance of efficient trade facilitation measures between the two East African countries. Experts however point out the importance of consolidating various government agencies into one central location to expedite clearance times and simplify procedures for cross-border trade.
Africa’s Drought Ripples Through Global Food Trade (Bloomberg)
A devastating El Niño-induced drought across a swath of southern Africa is sending ripples through global food trade. Dry and hot weather in Malawi, Zambia and Zimbabwe has decimated corn crops, prompting the countries to declare a national state of disaster in recent months. South Africa, the region’s top producer, has seen its output slashed by at least a fifth.
They’re now turning to other producers to plug the gap. Zimbabwe, whose corn output is likely to plunge by about 60%, is considering importing corn from Brazil for the first time in a decade. Zambia is talking to Tanzania and Uganda about imports. And South Africa may need to carry out significant imports of white corn for the first time since 2017.
Africa’s agribusiness sector can drive economic success (The Exchange Africa)
African economic growth remains commodity-based, mainly on commodity exports, with minimal processing and value addition involved. To foster sustainable and inclusive growth and development in Africa, there is an urgent need to promote a new development approach based on exploiting the continent’s full agribusiness potential.
Some pressing issues call for a reorientation to support agribusiness and agro-industrial development, namely, poverty reduction and ensuring equitable growth patterns that will address the concentration of employment and livelihoods in the agricultural sector.
An agribusiness development path involving incredible productivity growth throughout the entire agribusiness value chain—covering farms, firms, and distributors—represents a solid foundation for rapid, inclusive economic growth and poverty reduction.
Africa’s immense economic potential is being undermined by non-transparent resource-backed loans that complicate debt resolution and compromise countries’ future growth, African Development Bank President Akinwumi Adesina said on Thursday. Adesina highlighted the challenges posed by Africa’s ballooning external debt, which reached $824 billion in 2021, with countries dedicating 65% of their GDP to servicing these obligations. He said the continent would pay $74 billion in debt service payments this year alone, a sharp increase from $17 billion in 2010.
Regional Economic Outlook for Sub-Saharan Africa, April 2024 (IMF)
Sub-Saharan Africa, home to 30 percent of the world’s critical minerals, is on the brink of a major transformation with the global move towards clean energy. Whereas the extraction of select minerals could boost the region’s GDP by 12 percent or more by 2050, advancing beyond exporting raw materials to developing processing industries presents an even larger opportunity.
A regional strategy built on cross-border collaboration and integration can leverage the diversity of minerals and create a larger, more attractive regional market for much needed investment. Moreover, structural reforms at the country level to nurture domestic firms in processing and supporting industries, while steering clear of inward-looking industrial policy, will amplify the gains from these minerals.
Unlocking this potential can drive broader economic development, encourage technology transfer, and ensure sustainable, higher returns from the region’s critical mineral resources. Be it extraction or processing, this transition requires sound fiscal regimes and policies to manage these gains responsibly.
BRICS grain cartel unlikely (The Western Producer)
Russia is spearheading efforts to establish an OPEC of the grain trade, but industry officials in North America doubt it will happen or that it will have much influence if it does. Russia is urging the BRICS trade alliance to form an inter-bloc grain exchange, according to an article published by World Grain.
“The officially declared purpose of the alliance is to facilitate trade between member states, but analysts warn that the new structure will aim to become an analogue of the Organization of the Petroleum Exporting Countries (OPEC) for the global grain market, with the goal of influencing free pricing,” stated the article.
The grain exchange proposal was first tabled by the Russian Union of Grain Exporters (RUGE) in December 2023 but didn’t gain traction until March when the idea was endorsed by Russian President Vladimir Putin, stated the World Grain article. Putin said it was a good idea and promised to work on it at the top level of government.
Women should be empowered in tech and entrepreneurship: BRICS CCI Report (ThePrint)
A new report by the BRICS Chambers of Commerce and Industry, titled “New Era of BRICS – Horizons in Tech and Business for Women Empowerment,” highlights the evolving landscape of technology and entrepreneurship for women across the BRICS nations. It also indicates the progress made and the persistent challenges faced by women in STEM sectors. The major highlights of the report include the critical role of women empowerment in achieving Sustainable Development Goals (SDGs) and fostering economic and social growth.
Pandor welcomes Egypt into family of BRICS nations (SAnews)
International Relations and Cooperation Minister, Dr Naledi Pandor, has welcomed Egypt into the family of BRICS nations. “This development further enhances the role the South plays in global matters,” she said on Friday. Pandor was speaking in Pretoria where she was co-chairing the 10th Session of the Joint Commission for Cooperation (JCC) with her counterpart, Egypt Minister of Foreign Affairs, Sameh Shoukry.
The Minister announced on Friday that a decision on the Business Council has been taken and once operational, this structure will go a long way in coordinating and galvanising trade and investment opportunities. She also asked her counterpart to take advantage of the opportunities provided by the African Continental Free Trade Agreement (AfCFTA), which will facilitate easier trade.
Energy transition requires cooperation between all G20 countries (G20 Brasil 2024)
On Monday, April 15, the Brazilian Minister of Mines and Energy, Alexandre Silveira, arrived at the G20 headquarters in Brasilia for the first day of the face-to-face meeting of the Energy Transitions Working Group. During a press conference, he spoke about Brasil’s potential in renewable energies and access to financing for the energy transition.
The minister also stressed the importance of cooperation between all countries, since carbon dispersion has no borders. In addition to arguing that the energy transition cannot be launched without recognizing that the 4.5 trillion dollars established in the DUBAI COP, for the production of clean and renewable energies by 2030 will only happen if industrialized countries start to comply with the Copenhagen Accord. The Accord established 100 billion dollars in yearly clean energy investments from 2020.
Assembly President calls for massive investment in sustainable infrastructure (UN News)
In a special meeting dedicated to building resilience and promoting sustainable development through infrastructure connectivity, Dennis Francis emphasised the importance of quality and endurance.
“Quality, reliable, sustainable and resilient infrastructure – including regional and transborder infrastructure – is important to sustain trade and commerce, facilitate effective transportation, connect us to virtual grids, maintain energy flows and make populations safer against natural hazards,” the Assembly President said. He stressed the urgency of adapting transport infrastructure to withstand both human-induced and natural disasters exacerbated by climate change.
Chair’s Statement Forty-Ninth Meeting of the IMFC (IMF)
A soft landing for the global economy appears to be drawing closer. Economic activity has proved more resilient than expected in many parts of the world, though it continues to diverge across countries. However, medium-term global growth prospects remain weak. Ongoing wars and conflicts continue to impose a heavy burden on the global economy. Even though inflation has fallen in most regions, owing to the unwinding of supply shocks and the effects of tight monetary policy, its persistence warrants caution. …
We emphasize the importance of international cooperation to improve the resilience of the global economy and the international monetary system. We will act collectively, as appropriate, to support climate and digital transitions, including artificial intelligence, while accounting for country-specific circumstances. We reiterate our commitments on exchange rates, addressing excessive global imbalances, and governance, and our statement on the rules-based multilateral trading system, as made in April 2021, reaffirming our commitment to avoid protectionist measures. We will also continue working together to strengthen the global financial safety net and address global debt vulnerabilities. We will continue supporting vulnerable countries as they undertake reforms to tackle their vulnerabilities and address their financing needs.
See also: Global Sovereign Debt Roundtable (World Bank)
What Africa should push for in Bretton Woods debt review (The East African)
One of the highlights of the just concluded International Monetary Fund (IMF) and World Bank Spring Meetings in Washington, DC, was the announcement that the two Bretton Woods lenders are working to review the DSA framework for low-income countries within the next two years.
The DSA framework for low-income countries was conceived in 2005 when the executive boards of the IMF and the World Bank’s concessional arm, the International Development Association, agreed to adopt it as a tool that would help guide the borrowing decisions of low-income economies based on their funding needs and with due regard to their ability to comfortably service obligations.
Coming at a time when Ghana, Zambia and Ethiopia have defaulted and are chasing what has emerged to be extremely elusive and arduous restructuring engagements with their creditors, the prospect of reviewing the DSA for low-income countries is indeed a welcome development.
See also: G20 to review multilateral development banks reform roadmap in October, says Brazil
Global economic growth set to slow to 2.6% in 2024, just above recession threshold (UNCTAD)
A UN Trade and Development report released ahead of the 2024 Spring Meetings of the International Monetary Fund and the World Bank warns that the prevailing focus on inflation overshadows urgent issues like trade disruptions, climate change and rising inequalities. It calls for structural reforms and coordinated global efforts, proposing a comprehensive strategy that includes both supply-side policies to boost investment and demand-side measures to improve employment and income.
The report highlights an uneven post-pandemic recovery. Africa is projected to grow at 3.0% in 2024, up slightly from 2.9% in 2023. Armed conflicts and climate impacts pose significant challenges in several countries. The continent’s largest economies – Nigeria, Egypt and South Africa – are underperforming, affecting overall prospects.
Net finance flows to developing countries turned negative in 2023 (ONE Campaign)
New analysis by The ONE Campaign shows that net financial transfers to developing countries have fallen from their peak of US$225 billion in 2014 to US$51 billion in 2022 (the most recent year for which data is available). More than one in five emerging markets and developing countries paid more to service their debt in 2022 than they received in external financing. This could rise to more than one in three by 2025.
As G20 Finance Ministers meet for the Spring Meetings of the IMF and World Bank, ONE is calling for three things: 1. Multilateral development bank reform: Reforms could unlock up to US$1 trillion in low cost lending by: 2. Increased investments in low-income countries: By tripling the size of the World Bank’s low-income country fund (IDA), and increasing donor contributions by 25% to US$30 billion. 3. Expedited debt relief: Reforming the G20’s Common Framework, which has proved too costly and too slow for countries in debt distress, would enable additional countries to seek relief.
The world’s governments are falling far short of the pledges they made in 2015 to eradicate extreme poverty and create a world with “zero hunger” by 2030 – the first and second Sustainable Development Goals. On current trends, the poverty goal will be missed by a wide margin.
Behind the raw numbers of the SDG data, millions of people are living with avoidable poverty and preventable hunger. In response, the Brazilian Presidency of the G20 has proposed a Global Hunger and Poverty Alliance to galvanise change.
Fresh thinking needed to move agriculture talks forward, says Chair (WTO)
The Chair of the WTO's agriculture negotiations, Ambassador Alparslan Acarsoy of Türkiye, told trade officials that “fresh thinking” was needed to break the persistent deadlock in the talks. At the first meeting of the agriculture negotiating body since the 13th Ministerial Conference (MC13), he also urged WTO members to acknowledge the work undertaken so far.
Quick links
How Technology is Weaving African Markets Into the Global Fabric (Markets Media)
Why AU, AfCFTA failed to deliver local content for energy security (Businessday NG)
Chinese navy steps up African port calls in push to cement diplomatic ties (South China Morning Post)
An Alternative Approach to the Unsustainable UN SDGs (Earth.Org)
IATA and Partners Release Aviation Net Zero Roadmaps Comparative Review (IATA)
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South Africa to Keep Anti-Dumping Duties on Chicken Imports From US (Bloomberg)
South Africa’s trade minister approved a recommendation to maintain anti-dumping duties on frozen bone-in chicken portions originating in or imported from the US.
Following an investigation that started in December 2022, the International Trade Administration Commission of South Africa, known as ITAC, concluded that the expiry of duties on these poultry portions would likely lead to the continuation or recurrence of dumping, and material injury to the chicken industry in the Southern African Customs Union, according to a Government Gazette Notice.
W Cape State vets at the centre of efforts to increase agricultural exports (SAnews)
Western Cape State veterinarians have been lauded for the province’s efforts to increase agricultural exports. According to the Western Cape MEC for Agriculture, Dr Ivan Meyer, the province is responsible for 55% of South Africa’s primary agricultural exports, with nearly 50% being livestock or livestock products.
Meyer said the Western Cape Department of Agriculture’s Veterinary Services recently launched its innovative online electronic Export Certificate Office System (ECOS). “ECOS provides the customer with a 24-hour export facilitation service, reducing the export certificate application process from days to minutes. The platform streamlines the export process and ensures compliance with international standards. Exports contribute to foreign exchange earnings and a 5% increase in exports will lead to approximately 22 000 new jobs in the agriculture sector in the Western Cape,” he explained.
Consultations ongoing for continental free trade area (The Namibian)
The Ministry of Industrialisation and Trade is hosting Special Economic Zone (SEZ) consultations countrywide as the country prepares itself for the African Continental Free Trade Area (AfCFTA) agreement. During the consultation in the Erongo region on Monday, trade minister Lucia Iipumbi said the establishment of the zones would boost industrialisation, enhance exports and push economic growth.
“Special Economic Zones have over the years proven to be a catalyst for economic transformation around the globe. This is done through creating specific areas with favourable business conditions and incentives advanced by the government,” she said.
“Past experiences of investments in Namibia points to unfavourable free trade agreements, particularly for unskilled workers, women, the informal sector and sustainability,” the report states. The ministry is doing the consultations on the draft SEZ bill, the informal economy, start-ups and entrepreneurship development policy, Namibia investment promotion and facilitation regulations and a national cooling strategy.
EAC seeks to standardise fuel transportation tankers (Monitor)
Representatives from seven East Africa Community (EAC) member states are in Kampala to discuss measures that will lead to standardisation of road tankers, among which include vehicles that transport petroleum products, liquefied petroleum gas, raw materials for soap, and cooking oil production, among others.
The week-long discussion, which started on Monday led by the EAC Secretariat, seeks to harmonise procedures for calibration and verification of road tankers to ensure consistent measurements within the region. This, the EAC Secretariat noted is a key measure that will facilitate intra-EAC trade and movement of liquefied products across the region.
Ms Stella Apolot, the EAC Secretariat principal standards officer, said yesterday that the harmonisation will largely factor in different legislations across the region to come out with measures that will be easy to implement among member countries. “We all know the importance of road tankers and we need to ensure that whatever capacity is brought from partner state to another is the same.
Kenyan trucks with tonnes of potatoes stuck at border after Uganda raises levy (The East African)
Close to 30 trucks from Kenya loaded with tonnes of Irish potatoes are stuck at the Busia border after the Uganda Revenue Authority (URA) increased the withholding tax by up to 10 times. Another 20 trucks were reportedly impounded by the tax agency in Jinja, about 120km from the Busia border, on April 12 when the new withholding tax policy was implemented.
According to importers of Irish potatoes from Kenya, they have been paying a withholding tax of Ush120,000 (about $32) for each truck. Now, URA, they say, requires them to pay Ush1,200,000 ($315) for each truck.
Ghanaian stakeholders engaged on AfCFTA Youth and Women Protocol (GhanaWeb)
In an unprecedented mobilization of business leaders and young entrepreneurs across Ghana, the Ghana Chamber of Young Entrepreneurs (GCYE), with support from the German Corporation for International Cooperation GmbH (GIZ) under its AfCFTA support programme, spearheaded a series of stakeholder dialogues aimed at integrating and maximizing the benefits of the African Continental Free Trade Area (AfCFTA) protocol for women and youth.
These crucial dialogues were meticulously planned and executed by Bizgrotec, a leading consultancy firm known for its innovative approaches in business growth and technology.
This strategic move was driven by a dual objective: firstly, to gather insights, inputs, and recommendations from women and youth-led businesses on the nuances of the AfCFTA Women and Youth protocol; and secondly, to collaboratively develop strategies that would bolster the participation of young and female entrepreneurs in the burgeoning opportunities presented by the AfCFTA.
Government opens up to private sector to solve logistical challenges (Ghana News Agency)
Dr Stephen Amoah, a Deputy Finance Minister, has articulated the government’s readiness to partner with value chain stakeholders to solve logistical challenges in the country to boost intra-African trade. Such collaboration, Dr Amoah said would be critical in making Small and Medium-sized Enterprises (SMEs) thrive in the country, while boosting their participation under the African Continental Free Trade Area (AfCFTA).
He was speaking with the media after a forum on “Making logistics work for Ghanaian SMEs to trade under the African Continental Free Trade Area,” in Accra on Tuesday, April 16.
Science, Technology and Innovation Policy Review: Seychelles (UNCTAD)
The review of Seychelles’ National Innovation System (NIS) and the implementation of its 2016-2025 national Science, Technology, and Innovation Policy and Strategy (STIPS) suggests a range of policy actions and institutional reforms. These recommendations are essential for invigorating the NIS, thereby enabling Seychelles to harness STI and entrepreneurship effectively to achieve the goals set in Vision 2033 and the Sustainable Development Goals (SDGs).
Many of the provisions of the STIPS remain unimplemented, primarily due to the weakened institutional capacity characterized by a lack of personnel and dedicated funding. Of these, the failure to establish the proposed National Research Fund, as envisioned in the Policy and Strategy, has hindered the country’s ability to mobilize domestic and international resources for STI. The STIPS, while focused on innovation and entrepreneurship, lack adequate provisions for science-informed policy-making and governance of emerging technologies like AI and Fourth Industrial Revolution (4IR) technologies. This indicates a need for the policy to be updated or thoroughly revised.
Petrol Import Costs Fully Recovered, NNPCL Insists (Leadership News)
The Nigerian National Petroleum Company Limited (NNPCL) has said it recovered full costs from the products it imports into the country. The company also dismissed any insinuation with regard to return to petrol subsidy. Chief corporate communications officer, NNPC Ltd, Olufemi Soneye, told our Correspondent that since the ousting of petrol subsidy by President Bola Ahmed Tinubu, the subsidy regime has ceased to exist.
“It is important to emphasise that the subsidy is no longer in place. Contrary to allegations, petrol subsidy has not been reinstated.” Soneye affirmed during the conversation. This is coming after the chief executive officer of Rainoil Limited, Gabriel Ogbechie, reportedly said the federal government has resumed the payment of the controversial fuel subsidy following the devaluation of the Naira in the foreign exchange market.
Experts want Nigeria to address trade imbalance with partners (Businessday NG)
The Federal Government has been urged to improve on the use of technology in trade transactions with partner countries to avoid distortions in the event of pandemic that could orchestrate the lockdown of the economy in the future. Bamidele Ayemibo, the lead consultant at 3T Impex Consulting Limited, gave the charge at the unveiling of the annual trade finance survey in Nigeria, 2024 held in Lagos recently.
According to Ayemibo, the COVID-19 pandemic caused a major setback to export trading in particular among developing countries, with Nigeria suffering huge losses. Ayemibo also emphasised the need for proper understanding and monitoring of trade finance and international trade among those in the banking sector in Nigeria. He called on the government and banks to have a framework to foster partnership in industry participation and audit to know if the banks are doing the needful with their staff.
Kenya keen on trade deal with US before elections, AGOA lapse (The Star)
Agriculture, environment and workers’ rights took centre stage in the Kenya-US trade talks , with the former seen to push for a deal before November. This comes amid concerns that this year’s US Presidential elections could further derail the process, with a possibility of pushing talks into 2025 when the African Growth and Opportunity Act (Agoa) expires.
During the 11-day physical meeting (negotiating round) in Washington between April 2-4, the two sides also discussed textual issues on anticorruption; and Micro, Small, and Medium-sized Enterprises, and continued conceptual discussions on inclusivity. The US delegation was led by Assistant United States Trade Representative (USTR) Constance Hamilton while the Kenyan delegation was led by Principal Secretary for Trade Alfred K’Ombudo.
The meeting follows an in-person negotiating round under the US-Kenya Strategic Trade and Investment Partnership (STIP) held in Nairobi between January 29-31, this year.
Related: African coalition applauds AGOA 16-year renewal bill to boost trade prospects (Just Style)
African countries incurred $69B in debt service payments in 2023: Al-Mashat (EgyptToday)
Egypt’s Minister of International Cooperation, Rania Al-Mashat, called upon the international community to scale up debt swap programs for climate action. The minister emphasized the importance of reducing financial burdens while advancing sustainable development goals in a high-level event with the Economic and Social Commission for Western Asia (ESCWA), on the sidelines of the International Monetary Fund (IMF) Spring Meetings.
Al-Mashat drew attention to the pressing needs of developing countries, particularly in Africa, where there is a substantial shortfall in climate financing. The continent requires an estimated $200 to $400 billion annually until 2030 to address climate-related challenges. Meanwhile, African countries paid approximately $69 billion in debt service payments in 2023 alone, servicing their outstanding sovereign debts.
The event, titled “Debt Swap for Climate Action,” focused on exploring the debt swap mechanism as a means to support climate-related initiatives and facilitate the implementation of the Sustainable Development Goals (SDGs). Al-Mashat highlighted the potential of debt swaps to enhance countries’ fiscal capacity, enabling them to expand investments in climate action.
Global Affairs Canada(link is external) has provided $7.3 million in funding to the Africa Fertilizer Financing Mechanism (AFFM) to enhance sustainable agricultural productivity and smallholder farmer livelihoods, particularly women and youth across Africa. The financing will aid the Mechanism in replicating its credit guarantee programs, enabling fertilizer importers and aggregators to access the product on credit. It will also boost efforts to improve soil health and provide technical assistance to farmers.
New Partnership Aims to Connect 300 million to electricity by 2030 (World Bank)
The World Bank Group and African Development Bank Group are partnering on an ambitious effort to provide at least 300 million people in Africa with electricity access by 2030.The World Bank Group will work to connect 250 million people to electricity through distributed renewable energy systems or the distribution grid while the African Development Bank Group will support an additional 50 million people.
“Electricity access is the bedrock of all development. It is a critical ingredient for economic growth and essential for job creation at scale. Our aspiration will only be realized with partnership and ambition. We will need policy action from governments, financing from multilateral development banks, and private sector investment to see this through,” said Ajay Banga, World Bank Group President.
Red Sea Crisis and implications for trade facilitation in Africa (UNCTAD)
The end of 2023 and the first quarter of 2024 are marked by major disruptions to global maritime trade flows as ships entering the Gulf of Aden and sailing through the Red Sea and the Suez Canal continue to face attacks by Yemen-based Houthis. This new wave of disruption follows the unprecedented global logistics crunch caused by the COVID-19 pandemic and its fallout in 2020-2022 and the war in Ukraine since 2022. It also compounds the challenges caused by the reduced ship transits in the Panama Canals resulting from the impact of drought on water levels.
The disruption in the Red Sea and increased shipping traffic around Africa underscore the need for African countries and ports to scale up ongoing efforts aimed at implementing trade facilitation measures, taking up digitalization and mainstreaming green processes to reduce port congestion and expedite the clearance of goods.
The 2020-2022 upheaval in global logistics and the war in Ukraine have exposed the vulnerability of extended supply chains to disruptions and exposed instances of ill preparedness. The Red Sea crisis and the Panama Canal situation are further emphasizing the need to strengthen transport and trade in the face of disruption and consider how to respond, cope, recover and adapt to the new operating conditions.
In this context, a key question arises: Can African countries leverage the current disruption and explore how, by improving their trade facilitation environment, they can take advantage of the business opportunities that may arise from the additional traffic passing through their ports? Put differently, could the additional port calls that are currently mostly motivated by bunkering activities stimulate maritime trade? Could the additional port activities motivate additional imports and exports?
WTO members hold focused discussions on harnessing digitalization to facilitate trade (WTO)
At a meeting of the Committee on Trade Facilitation on 16-17 April, members kicked off discussions on utilizing digital tools to optimize the movement of goods across borders in line with the committee’s decision to focus on this topic in 2024. Members heard presentations on national experiences with using digitalization to facilitate trade. The committee intends to explore this topic in further meetings and summarize discussions at the end of the year.
Three sub-topics were addressed at the meeting, namely: using data and technology to simplify trade; promoting the implementation of the Trade Facilitation Agreement through the digital revolution and smart technologies; and digitalization of border procedures. Ten delegations shared their experiences: China, Costa Rica, Guatemala, Japan, Pakistan, Peru, the Dominican Republic, the United Kingdom, the United States, and Togo.
WTO, FIFA take steps to advance cotton initiative unveiled at MC13 (WTO)
At its first meeting since the launch of the “Partenariat pour le Coton” at the 13th Ministerial Conference (MC13) in February, the Steering Committee of the WTO-FIFA Cotton Initiative on 18 April pledged to intensify work to deliver concrete results for African cotton-producing countries, notably the Cotton Four (Benin, Burkina Faso, Chad, and Mali) plus Côte d’Ivoire. They welcomed two new partners — the International Atomic Energy Agency (IAEA) and the International Labour Organization (ILO) — as members of the Steering Committee.
The “Partenariat pour le Coton” was unveiled by WTO Director-General Ngozi Okonjo-Iweala and FIFA President Gianni Infantino on 25 February. The initiative aims to strengthen the WTO-FIFA cotton partnership and support African countries’ participation in cotton value chains. The launch marked a milestone in the partnership following the signing of the WTO-FIFA Memorandum of Understanding (MoU) in
Push to tax polluters, mega-rich to pay for climate action takes off (Devex)
An international tax task force and G20 nations are discussing proposals for global taxes to raise funding to fight climate change and inequality in low- and middle-income countries.
Meeting on the sidelines of the International Monetary Fund-World Bank Spring Meetings on Wednesday, a small group of countries discussed how to design a set of levies on fossil fuel producers, aviation, maritime shipping, and financial transitions to unlock much-needed climate and development cash.
Launched at the 28th United Nations Climate Change Conference in Dubai last year and co-chaired by Barbados, France, and Kenya, the international tax task force has committed to assessing the impact of different levies and their political and technical feasibility.
The group is due to present its initial findings at COP 29 in Azerbaijan in November and hopes to rally a coalition of the willing around a set of feasible options for climate taxes at the COP 30 talks in Brazil in 2025.
Embrace innovation ‘to make sustainable transport a reality for all’ (UN News)
Opening its High-level Meeting on Sustainable Transport, Assembly President Dennis Francis urged countries to seize the opportunity to shape a green, inclusive and prosperous future for today and generations to come. ”From public transport to maritime transport, we must embrace innovation-driven approaches – to make sustainable transport a reality for all,” he said.
He stressed that with over one billion people, roughly one-eighth of the planet, lacking access to all-weather roads, “our foremost priority must be to ensure equal access to sustainable transport, particularly for countries in special situations and vulnerable communities.” He drew attention to Landlocked Developing Countries, Small Island Developing States, and Least Developed Countries and the obstacles to sustainability they face, such as inadequate infrastructure, lack of maintenance capabilities and impaired resilience to climate change.
See also: From Africa to Maryland, Transport Knowledge Knows No Borders (World Bank)
The Managing Director’s Global Policy Agenda, Spring Meetings 2024: Rebuild, Revive, Renew (IMF)
The global economy has shown remarkable resilience, and appears headed for a soft landing. But buffers have been eroded, growth prospects are lackluster, and vulnerable countries are at risk of falling further behind. While inflation has fallen, it remains above target in many countries. Against this background, the key policy priorities are to: (i) rebuild buffers; (ii) revive medium-term growth; and (iii) renew the IMF’s commitment to ensure that our policies, lending toolkit, and governance are fit for purpose. Central banks need to finish the job on inflation, carefully managing its descent to target. With a soft landing in sight, policymakers’ focus needs to shift to fiscal consolidation to safeguard public finances.
Reviving growth prospects will require accelerating structural reforms and joint efforts by countries to tackle transformational challenges. Firmly grounded in its mandate, working with its members, and in partnership with other international organizations, the IMF will continue to serve its members
Related: IMF, World Bank cite significant progress in debt restructuring cases (Reuters)
Quick links
China Boosts Agricultural Trade with South Africa, Deepening Economic Ties (TDS News)
Seizing the opportunities of African trade requires robust risk management (African Business)
ECOWAS Needs to Have a Face (The Republic)
Nearly $450 billion was spent on the SDGs — where did it go? (Devex)
Reducing supply risk of critical materials for clean energy via foreign direct investment (Nature)
Positioning in global value chains: A new dataset available for global value chain analyses (CEPR)
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Mining and manufacturing production rebounds (Freight News)
South Africa’s mining production has rebounded following a challenging start to the year. Statistics SA’s latest data released this week shows that mining activity improved by much more than expected in February, according to the Bureau for Economic Research’s (BER) Weekly Review. According to the data, mining production rose by a solid 9.9% year-on-year (y-o-y) from an upwardly revised 2.8% y-o-y.
Kenya diaspora remittances up 19pc in first quarter as inflationary pressure eases (The East African)
Kenyans living and working abroad sent home a total of $1.2 billion (Ksh158 billion) during the first three months of this year, marking an 18.8 percent jump from the inflows recorded during a similar period of 2023, on the back of easing inflationary pressure in developed economies. Data from the Central Bank of Kenya (CBK) shows that Kenyans abroad remitted $412.4 million (Ksh53.8 billion) back home in January—the highest in a month so far this year, followed by $407.8 million (Ksh53.2 billion) in March and $385.9 million (KshSh50.3 billion) for February.
Namibia sees final investment decision on oil find by end 2024 (Engineering News)
Namibia will invest a big chunk of any revenue it gets from a potentially massive oil discovery into a sovereign wealth fund, and expects to learn if the find is commercially viable later this year. “We understand that the quantities are large but we still have to test the commercial viability of this oil,” Finance Minister Ipumbu Shiimi told Bloomberg in an interview Tuesday in Washington. “We e
PetroSA targets Mozambique gas in new sales deal (Engineering News)
PetroSA expects the first flows of gas into the country from a deal with Mozambique's national energy company ENH later this year, officials said, amid efforts to shore up supplies ahead of a potentially crippling shortage. Handed a gas trading licence by regulators in March, state-owned oil and gas company PetroSA has moved quickly to secure a deal for an initial 2 petajoules of gas a year (PJ/a
Algeria signs Hosting Agreement for Intra-African Trade Fair 2025 (Afreximbank)
The Host Agreement Signing Ceremony for the Intra-African Trade Fair 2025 (IATF2025) took place in Algiers on 15 April 2024. The Ceremony, which was hosted by the African Export-Import Bank (Afreximbank), in collaboration with the African Union and the AfCFTA Secretariat, and the Government of the People’s Democratic Republic of Algeria, paves the way for the fourth editi
Commission reports on thirteenth negotiation round with five Eastern and Southern African countries to deepen existing EPA (European Commission)
As part of its transparency commitments, the Commission has published the report summarising progress made during the latest negotiation round to deepen the existing Economic Partnership Agreement (EPA) with five Eastern and Southern African partners (ESA5): Comoros, Madagascar, Mauritius, Seychelles and Zimbabwe.
Agricultural value chain offers many opportunities for women (Modern Ghana)
Prof Stanley Dary, Director of the Directorate of Community Outreach and Business Incubation at the Simon Diedong Dombo University of Business and Integrated Development Studies (SDD UBIDS), has said there are many opportunities that exist within the agricultural value chain that women can leverage to improve their socio-economic statuses. Prof Dary said this during the Kosmos Innovation Center (
While Africa continues to exhibit remarkable resilience against a series of shocks that it has not created, it is off track to meet the Sustainable Development Goals (SDGs).
Africa is the second fastest growing region in the world, but poverty and hunger have been rising over the past five years.
The vision of the AfCFTA is about progressively replacing the many small and fragmented national markets with a single continent-wide marketplace.
Whichever way we want to look at it, it makes more economic sense to have seamless trading in one big market than to deal with over 800 bilateral investment treaties.
When goods and services flow freely across borders, entrepreneurs take investment decisions with the knowledge that their products and services will be placed inside a single market of 1.4 billion people whose collective spending power is close to US$3 trillion.
To use a term coined by my friend and colleague, Ambassador Albert Muchanga, the African Union Commissioner for Economic Development, Trade, Tourism, Industry and Minerals:
I quote, “with the AfCFTA in place, Africa is every entrepreneur’s domestic market”. End quote.
Back in February 2013 in Tunis, in response to a journalist who had asked her how the African Development Bank Group differed from other institutions, Ellen Johnson-Sirleaf, then President of Liberia, replied, "simply the confidence it inspires. I can say without any hesitation that the Bank has played a decisive role in my country in the aftermath of the conflict. It gave us the confidence to believe that we could move on.”
Prudence, respect for principles, and the pursuit of tangible results are the major new guidelines of Africa's leading development finance institution, which has supported more than 5000 projects in its 60 years. Today, integration projects remain its trademark. One such project dates to 2012, when the Bank facilitated talks between Zambia, Botswana and Zimbabwe, leading to the construction of the Kazungula Bridge over the Zambezi River. The Bank also opened the way to building the Senegambia Bridge, which opened in 2019. Now, the Bank is financing the ongoing construction of the Rosso Bridge over the River Senegal linking Senegal to Mauritania, as well as the Trans-Saharan Highway currently being completed between Algeria and Nigeria.
Egypt to host 21st COMESA Summit (Atab News PK)
Saudi Arabia is set to witness the development of new luxury resorts as the Tourism Development Fund signed a memorandum of understanding with Karisma Hotels and Resorts International, the Saudi Press Agency reported. It offers financial and non-financial support to international and local investors.
ECOWAS is under pressure to reform (DW)
ECOWAS was once considered Africa's most institutionally developed regional organization, but that has changed. Following the recent military coups in various countries in the West African sub-region, it became clear that the organization lacks authority, legitimacy, and effective sanction and intervention instruments. " ECOWAS will only have a future if its member countries remember the spirit o
Bluechip Technologies to tap into Uganda’s vibrant digital economy (New Vision)
“We believe that our entry into the Ugandan market will accelerate technological advancement in the country due to our expertise in digital transformation, scalable infrastructure solutions, and cybersecurity. The Minister of ICT and National Guidance Chris Baryomunsi has lauded BlueChip Technologies' entry into the country’s digital landscape.
African Countries Urged to Harness Opportunities in Battery, EV Sector (ENA)
The United Nations Economic Commission for Africa (UNECA) has called on African countries to harness the opportunities presented in recent developments in the global battery and electric vehicle (EV) industry. The UNECA made the call as it held a technical review meeting on the implementation of a cross-border special economic zone for the battery and EV industr
Telecommunications and Technology: Driving a sustainable digital revolution for Africa’s tomorrow (MyJoyOnline)
Sub-Saharan Africa stands at the brink of a digital revolution, where telecommunications and technology are poised to be the driving forces behind sustainable socio-economic development. With a youthful population and vast economic opportunities, the region is embracing digital transformation as a pathway to inclusive growth and prosperity. We believe there will be a few key drivers of this digit
Nigeria’s BRICS Dilemma: Evaluating the Risks of Russian Alignment (Africa24.it)
In the text provided, we are presented with a strong opinion arguing that Nigeria should refrain from engaging with the BRICS alliance, particularly due to concerns around the reliability of President Putin of Russia. The author waleolaniyan posits that Nigeria’s involvement with BRICS could have detrimental effects on th
Nigeria's plans to join BRICS in line with its philosophy: Official (Al Mayadeen)
Akabueze expressed that when several countries were invited to join BRICS but Nigeria was not, "it raised a lot of eyebrows." Director General of Nigeria's Budget Office Ben Akabueze told Sputnik that its intent to join BRICS conforms with its interest in a more equitable global financial and development system. "The way I see it, BRICS is all part of a strategy to seek a more equitable global fi
China-Africa Partnership: Enhancing Socio-Economic Development and Connectivity (Pakistan Observer)
The Chinese BRI has become one of the biggest stimulators of socio-economic development in the African continent. It has also further enhanced Africa-China relations in terms of diverse sectors of economy, investment, manufacturing, trans-regional connectivity, immense social development and, notably, energy & food security. Africa has been benefiting from the BRI to boost infrastructure developm
Global events influence US AGOA standing (Fruitnet)
Moves in US Congress to review South Africa’s participation in AGOA, the US Growth and Opportunities Act, have reportedly been dropped. South African citrus growers who ship their fruit to the US are breathing a sigh of relief after reports that senators have introduced a bill to extend AGOA, which is meant to boost trade between Africa and the US until 2041.
South Africa, AGOA, and nonalignment (Brookings)
In 1998, flanked by U.S. President Bill Clinton and with Table Mountain looming in the background, South African President Nelson Mandela (after warmly welcoming the American president) used the opportunity of his first joint press conference with a U.S. president on South African soil to defend the country’s right to maintain positive relations with Libya, Cuba, and Iran. Thirty minutes later, w
Young seeking to maintain US-Africa trade preference program (New York Times)
U.S. Sen. Todd Young, R-Ind., is leading a bipartisan effort to strengthen a long-running American trade incentive for countries located in sub-Saharan Africa. The two-term Hoosier lawmaker recently filed the African Growth and Opportunity Act (AGOA) Renewal and Improvement Act to continue a trade preference program that facilitates deeper investment and stronger commercial ties between the Unite
The WAEMU has seen strong growth and rising living standards over the past decade. Economic growth averaged 5.4 percent in 2013-2019 and 5.8 percent in 2021-2023. Policy efforts from regional and national authorities have cushioned the impact of several external an
Global Gateway: EU remains the leading global provider of Aid for Trade (International Partnerships)
The European Union remains the world’s biggest contributor of Aid for Trade, committing over €18 billion in 2021, finds the latest EU Aid for Trade Progress Report published today. This amount represents 47% of all Aid for Trade originating from bilateral and multilateral sources, sustaining the growth trajectory from a 33% contribution in 2018. European Commissioner for International Partnership
In De-Risking, the Transatlantic Partners Enjoy An Edge. But Can They Capitalize? (CEPA)
Because China’s rise dominates the headlines, it is perhaps natural to conclude that Beijing has become the US and EU’s top trade partner. That’s wrong. US-EU goods trade in 2023 reached $946 billion, 39% higher than the $575 billion US-China goods trade and 15% higher than the $805 billion EU-China goods trade What’s more, trade between countries does not just consist of trade in goods. It also
Transition to Renewables Calls for New Approach to Energy Security (IRENA)
Evolving concept of energy security must address energy demand, system flexibility, technology access and infrastructure development, says IRENA Abu Dhabi, United Arab Emirates, 17 April 2024 – The transition away from fossil fuels to renewables requires a new interpretation of the concept of energy security, according to a new report by the International Renewable Energy Agency (IRENA) published
Multilateral development banks must supercharge nature-positive finance (WWF)
In advance of this year’s World Bank and IMF Spring Meetings, WWF’s Global Finance Practice Lead, Aaron Vermeulen, calls on governments and central banks gathering in Washington D.C. to shape a resilient, nature-positive global economy that delivers lasting prosperity. Finance is a powerful lever for change, and the age of nature-positive finance is dawning. As climate an
Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development (IMF)
April 16, 2024 1. The G‑24 recognizes the profound human suffering from different crises worldwide. Such crises, whether stemming from conflict, natural disasters, violence, or other calamities, have exacted a heavy toll on individuals and communities. We call for strong commitment and emphasize the urgent need for a strong and united international effort to restore peace, stability, and rebuild
10 Priority Actions That Can Triple Trade in the Middle Corridor by 2030 (World Bank)
The Middle Corridor—a network of road, rail, and sea routes linking Chinese and European markets via Central Asia and the Caucasus—can become an engine of growth. Improvements to strengthen the corridor will help economies to flourish by boosting trade, creating jobs, and spurring entrepreneurship. A combination of investments and efficiency measures can reduce travel times along the corridor by
Committee adopts recommendations to support vulnerable members in tackling food insecurity (WTO)
At a special meeting on 17 April, the WTO Committee on Agriculture adopted a report containing recommendations on how to help least developed countries (LDCs) and net food-importing developing countries (NFIDCs) respond to acute food insecurity. The Chair of the Committee, Mr Kjetil Tysdal from Norway, congratulated members for reaching consensus on addressing the food security concerns of the most vulnerable WTO members.
Quick links
Kenyan firms gear up for Africa's largest trade fair in Algeria (The Standard)
Closing Africa's trade finance gap (Business Daily)
Trade Deception Returns in Pan-Africanist Guise (Inter Press Service)
UN forum calls for more funding, steps towards slavery reparations (The East African)
Containerisation has a Covid hangover (Freight News)
Garden centres in UK stockpile plants before new Brexit checks (The Guardian)
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South Africa puts biggest trade partner in its crosshairs over R20 billion and 100,000 jobs (BusinessTech)
South Africa said it has taken a preliminary step toward filing a complaint with the World Trade Organization (WTO) against the European Union over its treatment of citrus imports from the country.
Two years ago, the EU imposed requirements for additional refrigeration of incoming fruit from South Africa, which lags behind only Spain as an exporter of the produce, to combat incidences of Citrus Black Spot, a fungal disease that leaves dark spots on fruit.
Last year, according to the Agricultural Business Chamber of South Africa, South Africa shipped $644 million of citrus such as oranges, lemons, grapefruit, and mandarins to the EU. The EU’s moves increased costs and slashed shipments from South Africa, which competes with Spain for the citrus market. “The industry cannot afford the almost R2 billion that is needed to comply with the EU’s trade-restrictive regulations,” Thoko Didiza, South Africa’s agriculture minister, said in the statement.
South Africa’s trade watchdog suffers ransomware attack — warns of data leaks (MyBroadband)
The International Trade Administration Commission of South Africa (ITAC) has warned its employees and trading partners that their data may have been breached following a ransomware attack it suffered on 2 January 2024, according to a News24 report, The publication has seen an ITAC statement from Monday, 15 April 2024, revealing it had been hit by a security breach locking employees out of its system and encrypted files.
Following the attack, the ITAC shut down its systems to update security measures, including its firewall. ITAC chief commissioner Ayabonga Cawe said that despite these measures, private information of ITAC employees, service providers, and importers, among others, had been accessed during the attack.
“We are publishing this notice to alert all stakeholders to the fact that there is a chance this security compromise may affect them,” News24 quoted Cawe as saying.
Industrialisation and Trade Ministry engages stakeholders on economic policies (Namibia Economist)
The Ministry of Industrialisation and Trade held a crucial public consultation among stakeholders to discuss four pivotal policy and legislative frameworks. These frameworks included the draft Special Economic Zone (SEZ) Bill, National Informal Economy, Startups and Entrepreneurship Development Policy (NIESED), Namibia Investment Promotion and Facilitation Regulations, and the National Cooling Strategy.
Addressing the esteemed gathering, Minister, Lucia Iipumbu, expressed gratitude for the participation of stakeholders, acknowledging the invaluable insights they bring to shaping Namibia’s economic future. The discussion aimed to garner input on these frameworks critical to the country’s growth and development.
Commencement of trade under the African Continental Free Trade Area (AfCFTA) Agreement: 1st April 2024 (Ministry of Trade and Industry, Botswana)
The Ministry of Trade and Industry is pleased to announce that trade under preferential terms of the African Continental Free Trade Area Agreement (AfCFTA) can commence from the 1st April, 2024. This follows the publication of the Tariff Concessions and Rules of Origin for imports from participating AfCFTA members in the Government Gazette Extraordinary of 8th March, 2024.
The commencement of trading under this landmark Agreement provides the Private Sector with market access to the larger African market of 1.3 billion and will stimulate industrial development, investment and job creation which are in line with Botswana’s Vision 2036. This will result in wider and increased market access for Botswana’s exports in the African continent. The Private Sector will also access a wide range of inputs or raw materials from the continent at competitive prices. The Agreement also supports growth of Women and Youth owned businesses.
The public is informed that trading will be with countries that have completed their respective national processes for trading under the AfCFTA.
National Single Window project will facilitate regional integration – Tinubu (Daily Nigerian)
President Bola Tinubu has said that the introduction of the National Single Window, NSW, project would facilitate national and regional integration. Mr Tinubu said this during the inauguration of the National Steering Committee of the NSW on Tuesday at the Presidential Villa, Abuja. He said that Nigeria would key into the global revenue enjoyed by other global financial systems benefiting from the single window initiatives of ease of doing business.
The single-window system or single-window concept is a trade facilitation concept which allows an international (cross-border) trader to submit information to a single agency. It reduces having to deal with multiple agencies in multiple locations to obtain the necessary papers, permits, and clearances to complete their import or export processes.
“The national single window is a game changer that will revolutionise the way we conduct trade by simplifying government trade compliance through a digital platform. We unlock the doors to economic prosperity, and all other opportunities. “This initiative will link our ports, government agencies and key stakeholders by creating a seamless and efficient system that will facilitate trade like never before.”
Zimtrade targets Zambia’s Agritech Expo (New Zimbabwe)
Trade promotion agency, ZimTrade has tabled plans to connect local companies to the Zambia Agritech Expo set to kick off later this week. The high-level event in Zambia showcases the latest agricultural technology, products, and services which include precision agriculture technology, irrigation systems, seed and fertilizer innovations, livestock management solutions, and agricultural machinery and equipment among others.
This year’s event is expected to run between the 18th to the 20th of April at the Golden Valley Agricultural Research Trust Research Centre in Chisamba. Agricultural inputs and implements present lucrative export opportunities for local manufacturers with market data showing that the exports of agricultural inputs and implements grew from US$606 billion in 2019 to US$828 billion in 2022.
Ghana fails to secure debt deal with international bondholders (The East African)
Ghana has failed to secure a workable debt deal with two bondholder groups in its push to restructure $13 billion of international bonds, the government said on Monday, in a blow to its efforts to swiftly emerge from default and economic crisis.
Formal talks were on hold for now after the International Monetary Fund (IMF) indicated that the deal would not fit its debt sustainability parameters, the government said in a statement. “We will regroup to continue negotiations until we reach a deal that is consistent with IMF debt sustainability targets,” the office of Finance Minister Mohammed Amin Adam said on X, after the government had released its regulatory statement.
Aviation: Eswatini Hosts Pioneering Workshop on Gender Equality (COMESA)
The aviation sector, known for its high technical demands and significant economic impact, has historically seen lower participation rates of women, especially in technical and leadership roles. As part of a broader initiative to tackle these disparities and foster an inclusive environment that supports the careers of women in this dynamic field, COMESA is leading an initiative to sensitive girls on the range of careers available in aviation.
On 10 – 12 April 2024 the Kingdom of Eswatini, in collaboration with COMESA, hosted a three-day workshop in Sibane, Eswatini aimed at promoting gender equality and expanding career opportunities for women in the Eastern Africa, Southern Africa and Indian Ocean (EA-SA-IO) region’s aviation sector.
The Sub-committee is tasked with spotlighting and providing practical solutions to issues around tax and IFFs and making recommendations for the approval of STC and implementation by the stakeholders. Its focus remains to devise measures to unlock domestic resources for the development of Africa and its people.
Despite its vast economic potential, Africa faces challenges in mobilizing domestic resources to fund development initiatives. Historically, the Continent as the rest of the developing world, hardly participated in making the global tax and financial architectures. This has often disadvantaged Africa, leading to inequitable access to capital, revenue losses, illicit financial flows, Base Erosion and Profit Shifting (BEPS) and hindered economic progress.
Currently, Africa loses around USD 89 billion annually to illicit financial flows (IFFs), equating to 3.7% of its gross domestic product (GDP), while tax incentives contribute to a further $220 billion loss. The loss through IFFs increased from what was reported through the findings of the High-Level Panel on Illicit Financial Flows in 2015, that shows Africa was losing more than US$50 billion annually in IFFs. Addressing these issues requires concerted efforts to promote fiscal transparency, enhance efficiency, and ensure accountability in tax administration.
SADC holds a Retreat for Member States Focal Points for Trade in Services (SADC)
The Directorate of Industrial Development and Trade (IDT) at the Southern African Development Community (SADC) Secretariat convened a Retreat for Member States’ Focal Points for Trade in Services, held from 25-27 March 2024 in Centurion, South Africa. The main objective of the Retreat was to provide a strategic and less formal forum, outside negotiating meetings, for delegates to visualise the future and how to position the region’s services sector to take advantage of the African Continental Free Trade Area (AfCFTA)market access opportunities.
The meeting was to develop a 15-year Regional Strategy on Trade in Services and a 5-year Action Plan. During the Retreat, the delegates forged a shared understanding of the developments, strategies/approaches, opportunities, and challenges in negotiating and implementing regional trade in services liberalisation commitments. As crucial input into the Strategy and Action Plan, the delegates considered the findings and recommendations of the study on “How to Improve SADC Services Sector Competitiveness to Take Advantage of AfCFTA Market Access Opportunities”.
The Economic Commission for Africa (ECA), Sub-Regional Office for Southern Africa (SRO-SA) and Afreximbank in collaboration with the Ministry of Commerce, Trade and Industry organised a technical meeting to review the findings and recommendations of the prefeasibility study for implementation of a Transboundary Battery and Electric Vehicle industry Special Economic Zone in the Democratic Republic of Congo (DRC) and Zambia.
The joint Battery and Electric Vehicle (BEV) initiative on the establishment of a value chain in the electric battery and clean energy sector is supported at the highest political level in both countries. In the DRC, the President established the Congolese Battery Council and appointed its leaders by Presidential Decree No 0314/02/2023. In Zambia, the Ministers of Commerce, Trade and Industry (MCTI), Finance and National Planning, Mines and Minerals Development and Technology and Science were specifically tasked by the Republican President, to spearhead the initiative and a technical committee to support the processes on the initiative was inaugurated. Following the signing of the framework agreement in March 2023, Afreximbank and UNECA retained ARISE Integrated Industrial Platforms to prepare a prefeasibility study on the Transboundary Special Economic Zone. ARISE submitted the draft prefeasibility report to the two member States in December 2023 for their review.
Lower economic growth and trade disruptions in 2024 to impact development (UNCTAD)
While the global economic slowdown in 2023 was less severe than originally projected, UN Trade and Development in its latest Trade and Development Report Update warns that further growth deceleration could be expected in 2024.
UN Trade and Development Secretary-General Rebeca Grynspan strongly urges concerted multilateral action and a balanced policy mix, underlining that global policy coordination remains the key to safeguarding the global economy amid shifting trade patterns, soaring debt, and mounting cost of climate change all of which disproportionately affect developing countries.
Rising protectionism, disrupted maritime routes due to geopolitical tensions and climate change threaten global trade, the report says. In 2023, the global economy grew by 2.7%, but international trade in goods decreased by 1%. Although there has been some recovery in 2024, it's unlikely that merchandise trade will be a significant driver of growth this year.
Saudi Arabia bolsters first-ever Global Supply Chain Forum (UNCTAD)
The Kingdom of Saudi Arabia, through its ports authority, has contributed funds to bolster the first-ever Global Supply Chain Forum, organized by UN Trade and Development (UNCTAD) and Barbados. Set for 21 to 24 May in Bridgetown, the forum will unite government officials, business leaders and experts from around the world to tackle global logistics challenges magnified by the COVID-19 pandemic, geopolitical shifts, climate change and rising maritime freight rates.
“The Saudi Ports Authority, MAWANI, reaffirms its dedication to boosting global supply chain resilience and promoting international cooperation,” the port authority said in a statement.
Global supply chains, vital for producing and distributing goods ranging from cars to clothes, foods and medicines, are under unprecedented strain. Attacks on commercial vessels in the Red Sea, severely disrupting Suez Canal shipping, along with turmoil in the Black Sea from the war in Ukraine, and the impact of drought-induced water level reductions in the Panama Canal have given rise to a complex crisis affecting key trade routes.
Global Economy Remains Resilient Despite Uneven Growth, Challenges Ahead (IMF)
Despite gloomy predictions, the global economy remains remarkably resilient, with steady growth and inflation slowing almost as quickly as it rose. The journey has been eventful, starting with supply-chain disruptions in the aftermath of the pandemic, an energy and food crisis triggered by Russia’s war on Ukraine, a considerable surge in inflation, followed by a globally synchronized monetary policy tightening. Many large emerging market economies are performing strongly, sometimes benefiting from a reconfiguration of global supply chains and rising trade tensions between China and the US. These countries’ footprint on the global economy is increasing.
Global growth bottomed out at the end of 2022, at 2.3 percent, shortly after median headline inflation peaked at 9.4 percent. According to our latest World Economic Outlook projections, growth this year and next will hold steady at 3.2 percent, with median headline inflation declining from 2.8 percent at the end of 2024 to 2.4 percent at the end of 2025. Most indicators continue to point to a soft landing.
The Great Reversal: Prospects, Risks, and Policies in International Development Association (IDA) Countries (World Bank)
The report, The Great Reversal: Prospects, Risks, and Policies in International Development Association Countries, offers the first comprehensive look at the opportunities and risks confronting the 75 countries eligible for grants and zero to low-interest loans from the World Bank’s International Development Association (IDA). These countries are home to a quarter of humanity—1.9 billion people. At a time when populations are aging nearly everywhere else, IDA countries will enjoy a growing share of young workers through 2070—a huge potential “demographic dividend.” These countries are also rich in natural resources, enjoy high potential for solar-energy generation, and boast a large reservoir of mineral deposits that could be crucial for the world’s transition to clean energy.
Yet a historic reversal is underway for them. This is widening the income gap between these two groups of countries. . The extreme-poverty rate is more than eight times the average in the rest of the world: one in four people in IDA countries struggles on less than $2.15 a day. These countries now account for 90% of all people facing hunger or malnutrition. Half of these countries are either in debt distress or at high risk of it. Still, except for the World Bank Group and other multilateral development donors, foreign lenders—private as well as government creditors—have been backing away from them.
Plastics Dialogue discusses work plan for implementing MC13 statement, welcomes expansion (WTO)
At a meeting on 12 April, participating members of the Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade (DPP) discussed the 2024 work plan for implementing the Ministerial Statement announced at the 13th Ministerial Conference (MC13), with the aim of achieving more concrete, pragmatic, and effective outcomes by the next ministerial conference. They welcomed Argentina, Mongolia and North Macedonia as new members of the Dialogue, bringing the number of co-sponsors to 79.
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Navigating The Future: Ethiopian Digital Economy Foresight (The Reporter Ethiopia)
Worsening hunger grips West and Central Africa amid persistent conflict and economic turmoil (FAO)
Global Gateway: The EU launches new regional initiatives in Africa to boost youth mobility and skills, including the unique Africa-Europe Youth Academy (International Partnerships)
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Citrus fight: SA moves to take action against EU (News24)
South Africa has taken a preliminary step toward filing a complaint with the World Trade Organisation against the European Union over its treatment of citrus imports from the country, people familiar with the situation have said. Two years ago, the EU imposed requirements for additional refrigeration of incoming fruit from South Africa to combat incidences of Citrus Black Spot, a fungal disease that leaves dark spots on fruit, and false codling moth, a pest found in South African orchards.
China is hungry for avocados, and South Africa is ready to deliver (South China Morning Post)
According to Derek Donkin, chief executive of the South African Subtropical Growers’ Association (Subtrop), the final registration of avocado orchards and packhouses is under way, with hopes that the first shipment will set off next month.”A number of South Africa’s major exporters have already set up the necessary business contacts in China to be able to export as soon as the official requirements are met,” Donkin said.
It comes at a time when the South African avocado industry is expanding – in recent years it has grown by 4,750 hectares (11,737 acres) to a total of more than 18,000 hectares. Donkin said that as the industry grows, it sees China as a huge untapped market.
The deal to export avocados to China was first signed last year when South African Minister of Agriculture, Land Reform and Rural Development Thoko Didiza met Chinese Foreign Minister Wang Yi on the sidelines of the Brics summit – an association of the five major emerging economies of Brazil, Russia, India, China and South Africa.
“Gaining access to China is a vital step in driving an export-led growth for the South African avocados,” Didiza said at the time. China looks to become one of the world’s major consumers of avocados, something which offers an immense opportunity for the South African industry, Didiza said. “This will have a multiplication effect which will have growth in employment, skills and economic development, in particular [in] the rural areas of our country where the majority of avocados are produced,” she said.
Public consultation key part of law development, but often overlooked (Engineering News)
Following last week’s withdrawal of proposed new visa regulations that would have eased the way for skilled workers to come to South Africa, business organisation Business Leadership South Africa (BLSA) CEO Busisiwe Mavuso says comments from the public and business sector are often overlooked by government.
“In the case of the visa regulations, the proposed changes were welcomed by BLSA. However, poorly conceived legislation often works its way into the lawbooks without any apparent notice of the public comments received,” she notes in her latest weekly newsletter.
Government stockpiles US$700 million ivory due to CITES trade ban; MP calls for increased hunting quotas (New Zimbabwe)
THE Government of Zimbabwe is sitting on ivory stocks worth over US$700 million due to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) ban on trade in the resource. Zimbabwe has an ivory stockpile of 166 221.18kg from 26 906 pieces from inside and outside the parks and wildlife estate.
Environment Minister Sithembiso Nyoni told acting Speaker of Parliament recently that the human-wildlife conflict had been made complex as the animal population continued to increase over the years. “We have been responsible for keeping these and eliminating poaching at a very high cost which has allowed wildlife to grow.
Kenya fertiliser scandal newest threat to Ruto’s food agenda (The East African)
A substandard fertiliser scandal involving Kenyan officials and companies contracted by the government to supply subsidised farm input for the current planting season is threatening to wreck President William Ruto’s plan to improve the country’s food security. Tests by Kenya’s standards body found the fertiliser supplied by at least two of the companies, and some of which has been distributed to farmers across the country, was substandard.
The current probe targeting the standards body mirrors the one in 2018 when its then managing director and nine other officials were arrested and charged with attempted murder for allowing imports of substandard fertiliser containing mercury. Fertiliser subsidy programmes in Kenya have a history of being targeted by procurement and regulatory fraud due to the billions of shillings put in by the government.
Uganda taxman, small traders feud over levies halt businesses (The East African)
The dispute between the Uganda Revenue Authority and the traders in Kampala has been forwarded to President Yoweri Museveni after a two-day strike that paralysed Kampala city and other major towns of Uagnda such as Masaka, 120km southwest of the country’s capital.
The traders’ disagreement with the Uganda Revenue Authority is the taxman’s attempt to impose the electronic fiscal receipting and invoicing solution (EFRIS), which recovers the value-added tax and the traders are calling it ‘daunting” in a period of slow business activity.
The traders complain that manufacturing firms sell products at wholesale and retail prices in business centers which creates unfair competition. They also cite high interest rates that have made doing business costly; high import duties on clothing and other related goods and inflationary pressures that have made most household items expensive for the general public to purchase, hence slowing the business environment.
Coastal states see opportunity as the landlocked pay the price (The East African)
The reality, now, is that exports from East Africa, too, are getting stuck in various ports as a number of vessels suspend or delay picking of commodities due to the Houthi attacks.
Along the Northern corridor, that serves Uganda, South Sudan, Rwanda and the DR Congo, coffee and tea from Uganda and Kenya was in March stuck in warehouses as exporters experienced high cost of sea freight due to increasing demand of vessels. This is not a new problem entirely as transportation of goods is often hampered by bad roads, blocked highways from violent clashes or conflicts especially in countries such as the DRC or South Sudan. However, these often affect a particular country, rather than becoming a regional problem, and countries can often run for Plan Bs.
Since last November, the problem went beyond the region as major shipping lines stopped or temporarily halted Red Sea operations affecting the supply chain in different sea port states. As a result, there has been a delay in delivery of cargo and picking up of empty containers in ports including those in Kenya, Tanzania and Djibouti.
The cost of sea freight immediately went up by $500, on average, per container as global trade volumes decreased by 42 percent, according to a situational report by the United Nations Conference on Trade and Development (UNCTAD) report released in March. Shipping firms have raised freight costs further this week due to the ongoing attacks with no hope of ending soon.
Fishers in Madagascar adapt to deadly seas due to climate change (UN News)
The large Indian Ocean island is amongst the poorest in Africa where the majority of people make their living off the land or sea. Like many other countries in the region, it is suffering the effects of climate change. UN News’s Daniel Dickinson travelled to the village of Mokala in Anosy region where he spoke to the president of the local association of fishers, Gaston Imbola and Valencia Assanaly, the National Coordinator of the ILO’s Project Eco-Langouste Sud.
It is becoming more dangerous to fish in these waters because the winds are getting stronger and the weather is less predictable.... We used to be able to fish around 20 days a month, but with stronger more challenging winds it is now between 11 and 15.
Sudan has experienced a relentless escalation of conflict with far-reaching consequences, causing devastating harm to individuals, social structures, infrastructure, and the economy. The United Nations reported that, since the eruption of the war in April 2023, over 8.2 million individuals have been forced to leave their homes, seeking shelter within and beyond the country’s borders.
Currently, Sudan holds the record for the largest population of internally displaced persons (IDPs) and the most significant child displacement crisis globally. Approximately 37% of Sudan’s population, about 17.7 million people, are suffering from serious food insecurity due to conflict and displacement. Trade disruptions caused by insecurity have led to reduced trade flows and increased prices, impacting rural households’ access to food. Additionally, climate-related shocks and economic challenges, including currency devaluation, and inflation, are exacerbating the crisis.
The World Bank is committed to stay engaged in Sudan and to continue to support the wellbeing of the people of Sudan. In an effort to alleviate their hardships and build resilience, the World Bank has worked hand in hand with development partners to approve the Sudan Somoud - Enhancing Community Resilience Project. The project, funded by a $130 million grant from the Sudan Transition and Recovery Support (STARS)* Multi-Donor Trust Fund, will provide funding directly to the United Nations Children’s Fund (UNICEF) and the World Food Programme (WFP), and will be implemented in partnership with international and local non-government organizations (NGOs).
Seychelles Customs enforces its Rules of Origin capacities (WCO)
Under the framework of the EU-WCO Rules of Origin Africa Programme, funded by the European Union, the World Customs Organization (WCO), in partnership with the Regional Training Center (RTC) Kenya and the Seychelles Revenue Commission (SRC), held a national training workshop on rules of origin for Seychelles Customs.
During the workshop, participants worked on key concepts for proper origin determination, related operational and procedural issues, including origin certification and origin irregularities, as well as the establishment of efficient origin management. In addition, participants discussed specific areas of concern, including the low level of knowledge and use of the FTAs and challenges linked to verification of origin including trough administrative cooperation. They also discussed recommendations for better management and implementation of rules of origin on a national and regional level.
NUPRC: Fostering A Resilient, Sustainable Upstream Oil & Gas Industry Through Sound Regulation (The Whistler Newspaper)
Since the commencement of the Petroleum Industry Act in 2021, the Nigerian oil and gas industry has undergone significant transformation. The PIA passed by the National Assembly was signed into law by former President Muhammadu Buhari. It is one of the most audacious attempts to overhaul the petroleum sector in Nigeria.
The Act provides a legal, governance, regulatory and fiscal framework for the Nigerian Petroleum Industry. Despite being a major source of revenue, the oil sector before the passage of the law had lagged behind other sectors in terms of Gross Domestic Product contribution. It is on this basis that the PIA was formulated to help facilitate Nigeria’s economic development by attracting and creating investment opportunities for local and international investors.
The PIA also created specific institutions to drive the operations of Nigeria’s petroleum sector. One of the regulatory institutions created by the PIA is the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). Since the commencement of the Act, the NUPRC under the leadership of the Chief Executive, Engr Gbenga Komolafe, has taken up the statutory responsibility of ensuring compliance with petroleum laws, regulations and guidelines in the upstream oil and gas sector. The discharge of these responsibilities involves monitoring operations at drilling sites, producing wells, production platforms and flow stations, crude oil export terminals, and all pipelines carrying crude oil, and natural gas, among others.
The new dynamics in the global energy arena necessitated that Nigeria, a country that has long depended on the exploitation of oil and gas as the mainstay of its economy, re-examine its strategy to secure a blossoming energy future while meeting the global climate goals.
Nigeria, Benin Republic Customs Collaborate On Trade Facilitation (Leadership News)
The Nigeria Customs Service (NCS) and the Customs Administration of Benin Republic, over the weekend, deliberated on strategies aimed at amplifying trade activities between the two countries. In a press statement by the national public relations officer, Abdullahi Maiwada, the collaboration was also to ensure seamless implementation of recommendations previously discussed during their rendezvous in Cotonou. He said the visit was to strengthen the longstanding partnership between the two agencies
“We are cognizant of the established framework for cooperation between our respective customs administrations. This framework was established at a higher level by the authorities of the heads of State, President Patrice Talon of Benin and President Bola Tinubu of Nigeria, both expressing a desire to work together. It is upon this foundation that the Customs of both countries are united in their efforts.”
TAZARA: Boosting Operational Capabilities, Enhancing Regional Integration (Railways Africa)
In a recent interview with Railways Africa Magazine, at the Land-Linked Zambia 2024 event, Bruno Ching’andu, Managing Director of the Tanzania-Zambia Railway Authority (TAZARA), provided significant insights into the ongoing efforts to revitalise the TAZARA railway system, which is jointly owned by the governments of Zambia and Tanzania. He highlighted the strategic enhancements planned for TAZARA, aimed at boosting its operational capabilities and fostering regional integration.
TAZARA’s established strategy of integrating private operators into its network continues to bear fruit, with the signing of an Open Access Agreement with Bravo Group Ltd. This partnership is not a departure from TAZARA’s established path but an affirmation of its commitment to fostering economic growth and opening up business opportunities along the Dar es Salaam Corridor.
The benefits for TAZARA from this agreement are multifaceted. Firstly, the access fees generated will contribute to the rehabilitation and ongoing maintenance of the railway track. Secondly, the initiative will shift cargo movement from road to rail, aligning with the government’s transportation objectives. Bruno emphasises the significance of this shift, noting that even if TAZARA does not directly transport the cargo, the transition from road haulage to rail is a strategic goal that both governments are eager to see realised.
COMESA’s proposed regulations could lead to a dramatic increase in African competition enforcement (DLA Piper)
Proposed changes to the competition and consumer protection regulations for the Common Market for Eastern and Southern Africa (COMESA) – Africa’s largest market for trade and investment – could greatly expand the enforcement powers of COMESA’s Competition Commission (CCC, or the Commission) by the end of 2024
Prompted by challenges that the CCC has faced under the existing 2004 regulations, COMESA published and invited comment on a proposed draft of new competition and consumer protection regulations in January 2024. If enacted, these new regulations would replace the 2004 regulations. The comment period closed on March 14, 2024. Following several intermediate procedural steps, the proposed revisions are expected to go to COMESA’s Council of Ministers for final approval in November or December, 2024.
If approved by the council, the new regulations would dramatically increase the CCC’s enforcement powers. These changes cover several areas of antitrust and competition concern.
Use Somalia EAC entry for region’s economic renewal (Nation)
Academic and politician Ahmet Davutoğlu, a former Prime Minister of Turkey and foreign minister during the 2011 ‘Arab Spring’, emphasised historic reassessments to transform the Arab region into one of stability, freedom, prosperity, cultural revival and co-existence. The ‘Arab Spring’ had varying degrees of success, particularly in Tunisia, but his words are a poignant reminder of the aspirations for positive change.
Months after Somalia’s admission into the East African Community (EAC), his sentiments resonate with my reflections. This was a pivotal moment that will mark its progress towards economic empowerment and regional integration. It offers the Horn of Africa nation a huge opportunity for conducive environments and regulatory frameworks that bolster investor confidence and safeguard property rights. The developmental forces of technology, climate change and global economic integration become more pronounced, presenting unique challenges and opportunities for Somalia, and East Africa.
Prioritising infrastructure development, fostering partnerships with international organisations, creating an enabling regulatory framework, strengthening internal capabilities and promoting a culture of entrepreneurship and innovation are essential for successful integration into the global market.
The African Development Bank Group President Dr Akinwumi Adesina will co-chair the upcoming Summit on Clean Cooking in Africa(link is external) alongside President Samia Suluhu Hassan of Tanzania, Prime Minister Jonas Gahr Støre of Norway and International Energy Agency Executive Director Fatih Birol.
An estimated four in five Africans cook their meals over open fires and traditional stoves, using wood, charcoal, animal dung and other polluting fuels. The practice has devastating impacts on health, gender equality, and the environment, with 600,000 Africans, mainly women and children, dying annually from indoor pollution.
Dr Adesina said: “Access to clean cooking isn’t merely an energy issue. It is a fundamental human right, and a promise for a healthier, and more sustainable future. The African Development Bank is committed to tackling this challenge head-on, and I am therefore pleased to co-chair the Summit on Clean Cooking in Africa alongside distinguished global leaders.”
The Executive Secretary of the Southern African Development Community (SADC), His Excellency Mr. Elias M. Magosi will lead the SADC Secretariat delegation to participate at the Spring Meetings of the International Monetary Fund (IMF) and World Bank in Washington, D.C in the United States of America scheduled for 15 -20 April 2024.
The participation of the SADC Executive Secretary in this global platform that discusses emerging development issues across the world, signifies SADC’s commitment to deepening development cooperation and engagement on the international stage.
Prior to all the engagements, the Executive Secretary will meet SADC Ambassadors based in Washington DC to exchange ideas on accelerating regional development by leveraging on the Ambassadors knowledge, expertise and strategic networks in Washington DC which is a strategic hub for global economic, political, and diplomatic relations.
The SADC Executive Secretary’s visit to Washington DC comes at a time when the SADC region is mobilising support and resources for the implementation of prioritised high impact and transformative regional projects with an estimated cost of US$ 625 billion, covering the priority areas of the RISDP 2020-2030 namely, Peace, Security, and Good Governance; Industrial Development and Market Integration; Infrastructure Development in Support of Regional Integration; Social and Human Capital Development; and Cross-cutting issues of Gender, Youth, Environment and Climate Change, and Disaster Risk Management.
Uncertainty, Amidst Conflict and Indebtedness, Weighs on the Outlook for the Middle East and North Africa (World Bank)
The World Bank’s new Middle East and North Africa Economic Update, entitled Conflict and Debt in the Middle East and North Africa, shows that lackluster growth, rising indebtedness and heightened uncertainty due to the conflict in the Middle East are impacting economies across the region.
According to the report, MENA economies are expected to return to low growth akin to the decade prior to the pandemic. MENA’s gross domestic product (GDP) is forecast to rise to 2.7% in 2024, which is a tepid increase from 1.9% in 2023. As in 2023, oil importing and oil exporting countries are likely to grow at less disparate rates than 2022, when higher oil prices boosted growth in oil exporters. For Gulf Cooperation Council (GCC) countries, the 2024 growth uptick reflects expectations of robust non-oil sector activity and fading out of oil production cuts towards the end of the year. GDP growth in almost all oil importing countries is expected to decelerate.
Proposed Agoa renewal hangs on US elections outcome, say experts (IOL)
South Africa’s trade relations with the United States could get a reprieve if a new bill for an early extension of the African Growth and Opportunity Act (Agoa) for another 16 years, to 2041, enjoys majority support and is passed by the US Congress.
However, analysts say the upcoming US elections could be a big factor behind the bill to renew Agoa, as both Democrats and Republicans try to fortify US foreign policy and preferential trade agreements in case former president Donald Trump emerges victorious in November.
Stronger value chains are vital for artisanal small-scale mining (African Mining Market)
An international event is taking place in Lusaka, Zambia this week, which is aimed at improving practices in the artisanal and small-scale mining (ASM) of Development Minerals. These are minerals such as construction materials, industrial minerals and semi-precious stones the mining of which support the livelihoods of millions of people, mostly in African countries.
Being held from 15th – 17th April 2024, this forum is being held under held under the European Union (EU) and the Organization of African, Caribbean and Pacific States (OACPS, formerly ACP) Partnership Framework.
“This forum is an opportunity for stakeholders to come together to learn from good practices and innovations for a sustainable and inclusive future of artisanal and small-scale mining.” said James Wakiaga, Resident Representative, UNDP Zambia.
The forum marks the launch of Phase III of the ACP-EU Development Minerals Programme implemented by UNDP. It revisits the Mosi-oa-Tunya Declaration of 2018 on Artisanal and Small-Scale Mining, Quarrying and Development and showcases activities and practices by partners and participating countries implementing the Development Minerals Programme.
Fresh push to deepen Africa, Caribbean ties (NewsDay)
Ties between Africa and the Caribbean are set to deepen with The Bahamas set to host the 31st annual meetings of Afreximbank, the first time the event will be held in the region. Since the African Union’s recognition of the African diaspora as Africa’s sixth region, there has been a push to bolster ties between the two regions.
Afreximbank’s president Benedict Oramah said last week’s signing ceremony for The Bahamas to host the 31st Afreximbank Annual Meetings and the third edition of the AfriCaribbean Trade and Investment Forum from June 12 to 14 set the stage for an event which “will happen beyond contemplation” a few years ago.
“It will solidify the partnership between Afreximbank and CARICOM state, a union that forms the platform for global Africa to take its destiny into its own hands,” Oramah said.
How Geopolitical Changes Influencing Africa’s Unity and Development (Modern Diplomacy)
For seeking long-term influence, Russian elites have oftentimes used elements of anti-colonialism as part of its current policy to control the perceptions of Africans and primarily as new tactics for power projection in Africa. Many academic researchers and policy experts have been discussing the growth of neo-colonial tendencies, the geopolitical developments and the scramble for resources by external countries in Africa.
Connected Africa Summit: PS Tanui roots for bridging of digital divide (KBC)
ICT and Digital economy Principal Secretary Engineer John Tanui says the government has put in place elaborate measures meant to bridge the digital divide across the country.
Speaking during a meeting with media editors and stakeholders ahead of the forthcoming Connected Africa Summit 2024 hosted by the Ministry of Information, Communications and the Digital Economy, Tanui said the government is laying 100,000 kilometers of fiber optic cable as it moves to ensure that every part of the country including public institutions is connected to the internet similar to the last mile power connectivity initiative.
“9.5 million Businesses and homes in the country are connected to electricity while about 1.2 million people are connected to the internet. We want to enhance access to the internet to ensure Kenyans reap from associated benefits” said Tanui. He said the connected Africa Summit will shape the future of the country’s technology landscape setting the stage for unprecedented growth and prosperity.
The G7 Presidency partners with UNDP Africa to advance AI for sustainable development (UNDP)
The G7 Italian Presidency, in collaboration with UNDP, has concluded a series of high-level meetings with African Union (AU) senior officials, African Ambassadors to the AU, the European Union Special Representative to the African Union, and stakeholders from the private sector. The outcome of the meetings is a reinforced commitment to strengthen collaboration on Artificial Intelligence (AI) for sustainable development and collectively address challenges to ensuring access to AI for all.
The Addis Ababa meetings, conducted over two days, come at the heels of the groundbreaking consensus led by Italy with the G7 ministers in Verona, Italy, on 14 March 2024. The Verona meeting recognized the imperative of concerted collaboration between G7 nations and developing countries.
Building on the achievements in Italy through the ‘G7 Verona Process on Digital Development’, the Italian G7 Presidency and UNDP will continue their engagement to co-design an AI Hub for Sustainable Development with African leaders in 2024. This initiative will involve stakeholders from the technology industry, academia and start-ups committed to advancing the Sustainable Development Goals (SDGs).
UN to discuss how to harness data for development (UNCTAD)
The Secretary-General of UN Trade and Development (UNCTAD), Rebeca Grynspan, will lead speakers at the 27th session of the UN Commission on Science and Technology for Development (CSTD) as they examine how to leverage data to accelerate sustainable development. Ministers, policymakers, heads of international organizations and leading experts will convene in Geneva from 15 to 19 April.
They will explore what countries should do to strengthen global cooperation in science, technology and innovation to share sustainable, resilient and innovative solutions that will reinforce the 2030 Agenda and eradicate poverty in times of multiple crises.
Today data is growing in exponential terms, which is unprecedented in human history. As economies and societies become increasingly interwoven with digital technologies, data is increasingly seen as a strategic asset. When managed wisely, data can become a powerful tool in addressing global challenges, ranging from poverty eradication to climate change mitigation. The reason are two folds.
Technology and innovation are powerful drivers of sustainable development and structural transformation in developed and emerging economies. Yet their potential in the Least Developed Countries (LDCs) remains under-realized, hindering the achievement of the Sustainable Development Goals (SDGs): too many countries are not on track to meet the SDGs targets within the current decade.
Technological progress brings the promise to deliver innovative solutions to address some of the most urgent challenges the world is facing today, such as food security, inequality, global health issues and climate change. These challenges transcend borders, demand a collective response, and make the imperative for global cooperation in science, technology, and innovation (STI) more urgent than ever.
Debt concerns grow as development aid shifts from grants to loans (UNCTAD)
The nature of aid also saw a significant shift, moving towards concessional loans instead of grants – a trend that could add additional fiscal strain on developing countries still grappling with the economic aftermath of the COVID-19 pandemic. The share of grants in total ODA fell to 63% in 2022, marking the smallest percentage in two decades – except for the initial year of the COVID-19 pandemic, which saw a drop to 62%.
Members discuss ways to boost developing economies’ participation in global trading system (WTO)
Presenting a new report on the participation of developing economies in the global trading system, the WTO Secretariat noted that developing economies’ trade in merchandise as well as in commercial services have recovered from the pandemic-related decline. While some types of commercial services exports proved comparatively resilient during the pandemic, travel exports in 2022 still lagged behind their 2019 level. Developing economies continue to face challenges in their participation in international trade, such as a dependence on commodity exports and higher trade costs.
New ideas tabled to advance work of information technology committee (WTO)
China introduced its new proposal (G/IT/W/58), which aims to enhance both the functioning and the relevance of the ITA. The proposal suggests regular symposiums or workshops where industry representatives and stakeholders can share the latest developments in the information and communication technology (ICT) sector and the publication of annual statistics on ICT trade. The proposal also suggests ideas on how to enhance information‑sharing on the implementation of the ITA and strengthen cooperation on non-tariff barriers.
Oil demand growing at a slower pace as post-Covid rebound runs its course - Analysis (IEA)
While we expect growth in oil consumption in 2024 (1.2 mb/d) and 2025 (1.1 mb/d) to remain robust by historical standards, structural factors will lead to a gradual easing of oil demand growth over the rest of this decade. Continued rapid gains in the market share of EVs, particularly in China; steady improvements in vehicle fuel economies; and, notably, efforts by Middle Eastern economies, especially Saudi Arabia, to reduce the quantity of oil used in power generation are together expected to generate an overall peak in demand by the turn of the decade.
Oil remains extremely important to the global economy, and across some of its key applications, alternatives still cannot easily be substituted. In the absence of additional energy and climate policies and an increased investment push into clean energy technologies, the decline in global oil demand following the peak will not be a steep one, leaving demand close to current levels for some time. Nevertheless, cooling Chinese demand growth and considerable progress on the deployment of clean energy transition technologies mean that the oil market is set to enter a new and consequential period of transformation.
Quick links
DG Okonjo-Iweala marks 30th anniversary of the Marrakesh Agreement (WTO)
Navigating the Trade Landscape (Svenskt Näringsliv)
China Continues To Dominate An Expanded BRICS (Eurasia Review)
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tralac Daily News
South Africa seeks to secure global plastics pollution treaty by balancing competing interests (Engineering News)
South Africa will seek to secure a legally binding global plastics pollution and marine litter treaty in negotiations at upcoming global meetings by balancing competing demands, Forestry, Fisheries and the Environment Minister Barbara Creecy told the media on April 12.
The Department of Forestry, Fisheries and the Environment will participate in the fourth Intergovernmental Negotiating Committee (INC-4) meeting to be held in Ottawa, Canada, from April 23 to 29, as well as at a subsequent meeting to be held in early December. With only 85 hours of negotiating time available during the April meeting to secure such a treaty, South Africa will recommend that a lifecycle approach to plastic production, use, recycling and disposal be agreed upon in the first draft of the text of the agreement.
Statement by DIRCO and the Delegation of the European Union to the Republic of South Africa (EEAS)
The Department of International Relations and Cooperation of the Republic of South Africa and the Delegation of the European Union to South Africa regret the misrepresentation made by the media outlets Bloomberg and News 24 yesterday, 8 April 2024 regarding the relationship between the Republic of South Africa and the European Union.
We would like to reject the claim made by these media outlets that the Republic of South Africa has not responded to several requests by the European Union to hold a bilateral South Africa-European Union Summit during 2023. On the contrary, South Africa and the European Union have maintained a regular exchange throughout 2023 in order to prepare their bilateral Summit. This includes a Ministerial Forum in South Africa in January 2023, bilateral contacts at Heads of State level, and ministerial visits to both Pretoria and Brussels.
we also reject the claim made by Bloomberg and News 24 that the delays to the summit are sending a negative signal about future relations between the EU and South Africa. In fact, the above-mentioned regular high-level visits and engagements illustrate the strength, depth and wide-range scope of the strategic partnership between the European Union and South Africa.
Namibia’s Gas Development to Alleviate SADC Power Woes (Energy Capital & Power)
Poised to start production in 2026, the Kudu Conventional Gas Development in Namibia’s Orange Basin could transform the country into a major regional gas exporter. According to Namibia’s national oil company NAMCOR, the development holds an estimated 1.3 trillion cubic feet (tcf) of natural gas, unlocking a windfall of potential revenue for the government and new energy supplies for the Southern African Development Community (SADC).
Meanwhile, a series of significant hydrocarbon discoveries in the deepwater section of the Orange Basin by energy supermajors TotalEnergies and Shell have raised gas estimates to up to 8.7 tcf. If proven commercially viable, these finds have the potential to more than double Namibia’s GDP by 2040. Insights into Namibia’s path to becoming an integrated gas producer will be shared at this year’s Namibia International Energy Conference (NIEC), taking place in Windhoek on April 23-25.
Study launched on value chains for critical raw materials (New Era)
The EU-funded AfricaMaVal project (AfricaMaVal.eu), implemented by the German Federal Institute for Geosciences and Natural Resources (BGR), together with the Namibian company Odikwa Geoservices, recently launched a ‘Country Case Study Namibia’ report. The report, launched on Tuesday at the Geological Survey of Namibia, is an assessment of the investment potential in the domestic mining sector.
The report provides an overview of the geological setting and Extended Critical Raw Materials (ECRM) endowment in Namibia. It shows investment opportunities for extraction and local value addition into these value chains. The report further touched on Namibia’s robust legal framework, labour regulations, the taxation regime, trade barriers and uncertainty about protected areas.
Tanzania seeks homegrown solutions to fortify booming digital economy (The Citizen)
To solidify its position as a leading African digital hub, Tanzania must cultivate its domestic cybersecurity industry and implement cyber insurance, according to experts who convened at the recent 3rd Tanzania Cybersecurity Forum. This was among the 11 resolutions reached when Tanzania hosted the 3rd Cybersecurity Forum in Arusha, with participants believing that by doing so, financial losses post-cyberattacks would be mitigated.
Kenya proposes maritime treaty to defuse Ethiopia-Somalia tensions (The East African)
Kenya has proposed a regional maritime treaty to defuse tensions between Ethiopia and Somalia over a deal allowing Ethiopia to set up a naval base and giving it port access in Somalia’s breakaway region of Somaliland, a top Kenyan official said on Thursday.
Landlocked Ethiopia agreed on January 1 to lease 20 kilometres of coastline in Somaliland, a part of Somalia which claims independence and has had effective autonomy since 1991, offering possible recognition of Somaliland in exchange. That prompted a defiant response from Somalia and fuelled concern the deal could further destabilise the Horn of Africa region.
The treaty Kenya is proposing in consultation with Djibouti and regional bloc Intergovernmental Authority on Development (Igad) would govern how landlocked states in the region can access ports on commercial terms, Korir Sing’oei, Kenya’s principal secretary for Foreign Affairs, told Reuters.
Ethiopia faces tough devaluation decision to secure IMF bailout (The East African)
Ethiopia may have to decide on a big currency devaluation sooner rather than later to secure a rescue loan from the International Monetary Fund (IMF), which left the country last week without reaching a much-needed deal with authorities. East Africa’s most populous country, already struggling with high inflation, became the third African state in as many years to default on its debt in December.
Ethiopia hasn’t received any IMF funds since 2020 and its last lending arrangement with the fund went off track in 2021. The federal government and a rebellious regional authority signed a deal in late 2022 to end a two-year civil war.
Ethiopia earns US$617 million from exporting products in eight months (TV BRICS)
Ethiopia’s economy earned $617 million from exports of products manufactured in the country in the last eight months of the current fiscal year, as reported ENA, citing the Ethiopian Ministry of Trade and Regional Integration. The ministry said it was referring to export goods whose production is supervised by the ministry. The ministry said revenues from product shipments rose by US$80 million compared to the same period last year.
S. Sudan to host regional monetary affairs committee meeting (Sudan Tribune)
South Sudan is preparing to host the East African Community (EAC) monetary affairs committee meeting that will bring together all the governors of central banks in the region. South Sudan’s central bank governor, James Alic Garang, announced that all the governors of the central banks from member states that form the regional body would start arriving in the country from April 26 and 27 2024 and will stay until May 3.
“The first two days will focus on technical committee meetings or working groups. They will review the progress. Usually, the review focuses on conversion criteria,” he explained. One of those, according to Garang, revolves around the import cover, meaning they look at the country’s growth reserve and see that relative to how many imports they can cover in several months.
Zanzibar to host EAC aviation conference (Tanzania Daily News)
Zanzibar is set to host the sixth Civil Aviation Safety and Security Oversight Agency (CASSOA) conference, scheduled for May 16th-17th, 2024. The event will spotlight sustainable environmental issues in the aviation sector.
Speaking to journalists in Dar es Salaam on Friday, Hamza Johari, the Director General of the Tanzania Civil Aviation Authority (TCAA), announced that the conference will convene key aviation stakeholders, including airlines, airports, managers, and security officials from East African Community (EAC) member countries. Mr Johari highlighted that the sixth EAC-CASSOA conference will delve into exploring and revitalizing the space industry, with a focus on restoring consumer confidence and increasing awareness of opportunities related to current space innovations.
Survey reveals lack of AfCFTA awareness among women and youth in business (The Business & Financial Times)
According to a situational analysis conducted by the Aya Institute for Women, Politics and Media, there is a lack of detailed information on the African Continental Free Trade Area (AfCFTA) among women and youth in business. Programmes Coordinator of the institute, Bridget Biney, explained that information about the protocol has primarily reached technical experts and businesses, leaving women and youth in the micro, small and medium enterprises (MSMEs) sector with little to no knowledge about AfCFTA.
“We’re facing a significant challenge where there’s limited or insufficient information about the AfCFTA; it’s not widely known. Currently, discussions about the AfCFTA protocol and related matters are mainly confined to technical or business circles. However, we have the opportunity to demystify the AfCFTA for every aspiring entrepreneur or young person interested in business, making the agreement accessible and understandable to all,” she noted.
UK lifts tariffs on east African flower exports to boost trade (Africanews)
The United Kingdom has announced the temporary suspension of export tariffs on cut flowers originating from East Africa. Effective from April 11, 2024, to June 30, 2026, this suspension marks a pivotal moment in trade dynamics between the UK and East African nations.
The suspension of tariffs is particularly beneficial for flower growers in countries such as Kenya, Ethiopia, Rwanda, Tanzania, and Uganda, which are renowned for their flourishing floral industries. These regions rely heavily on exporting cut flowers to international markets, with the UK being a key destination.
By removing export tariffs for a period of two years, the UK aims to streamline trade processes and reduce costs associated with exporting flowers to the UK market. This initiative not only enhances the competitiveness of East African flower exports but also strengthens the economic ties between the UK and the region.
Risch, Coons Introduce Legislation to Renew Trade Partnership Between U.S. and Sub-Saharan African Countries (US Foreign Relations Committee)
U.S. Senators Jim Risch (R-Idaho), ranking member of the Senate Foreign Relations Committee, and Chris Coons (D-Del.), introduced the African Growth and Opportunity Act (AGOA) Renewal and Improvement Act of 2024 today to renew and strengthen a key trade program with sub-Saharan African countries. AGOA is a trade preference program that facilitates deeper investment and stronger commercial ties between the United States and sub-Saharan African countries. First enacted in 2000, AGOA is due to sunset next year.
“AGOA plays a significant role in U.S.-sub-Saharan Africa trade and investment, as well as in U.S. foreign policy. This bipartisan bill aims to refine AGOA’s eligibility criteria, increase transparency, and hold U.S. agencies accountable for their advice to the president,” said Risch. “This legislation will bolster Congress’ involvement in the eligibility process and oversight, demonstrating a strong commitment to AGOA. I encourage my colleagues to swiftly reauthorize AGOA and the next administration to pursue a broader, two-way strategy with Africa that goes beyond trade preferences and meets the needs of the 21st century.”
pdf AGOA Renewal and Improvement Act of 2024: Sens Chris Coons & James Risch - Summary (110 KB)
Related:
AAFA rally behind 16-year AGOA extension to sustain US, African trade stability (Just Style)
AGOA extension welcomed – Dion George (Politicsweb)
The Bahamas to Host 2024 Afreximbank Annual Meetings and AfriCaribbean Trade and Investment Forum (Afreximbank)
The Government of the Commonwealth of The Bahamas and African Export-Import Bank (Afreximbank) have today signed the Agreement for The Bahamas to host the 31st Afreximbank Annual Meetings (AAM) and the third edition of the AfriCaribbean Trade and Investment Forum (ACTIF). The AAM will be held in Nassau, The Bahamas, from 12 – 14 June 2024.
Professor Benedict Oramah, President and Chairman of the Board of Directors, Afreximbank, said: “Afreximbank’s historic decision to hold the 31st Afreximbank Annual Meetings in The Bahamas will be the first time it has been held in the Caribbean. There is a hugely positive outlook for many African and CARICOM countries – as demonstrated by the IMF’s forecast that seven African countries and one CARICOM country will be in the top 10 fastest growing economies globally – so cementing closer links between the two regions is of clear mutual benefit to accelerate growth and prosperity.
“We are in an era where some major global economies are reacting to geopolitical tensions by restricting international trade to prioritise their domestic industries. This partial move away from the rules-based trading system, where international trade is conducted according to agreed-upon transparent, non-discriminatory, and impartial rules, threatens the longstanding reliance of African economies on global support for shared growth and prosperity. In this context, the theme for the31st AAM and the 3rd ACTIF is ‘Owing Our Destiny: Economic Prosperity on the Platform of Global Africa.’ This theme reflects our focus on broadening the discourse to determine solutions to the challenges that affect African Caribbean economies, the policy issues required to promote growth, development and prosperity across Africa and the Caribbean, and to accelerate intra-African trade and investment flows, including with the diaspora.”
China tops FDI confidence index of emerging markets (Asia News)
China topped the most recent Kearney’s 2024 Foreign Direct Investment Confidence Index emerging market rankings and jumped from the seventh to the third spot in the world rankings. The report examines investor perceptions of foreign direct investment flows over the next three years and deems that investors remain optimistic about the global economy.
Globally, 88 percent of respondents plan to increase FDI over the next three years, up 6 percent from last year, according to the report. As high as 89 percent of respondents believe that FDI will play a more important role in building their companies’ profitability and competitiveness over the next three years.
The report also pointed out that although investors are more optimistic about overall FDI trends, they are cautious about increasing risks in the global operating environment. Eighty-five percent of respondents believe that rising geopolitical tensions will affect their investment decisions, with some companies choosing to invest in nearshore or friendshore markets as a result. In addition, investors predict that further tightening of business regulations in both developed and emerging markets may pose risks for investment in the coming year.
Digital Economy Summit to forge sustainable future (with photos) (Government of Hong Kong)
Digital Economy Summit (DES) 2024 has kicked off today (April 12) at the Hong Kong Convention and Exhibition Centre (HKCEC) with the theme “Smarter Technovation for All: Forging a Sustainable Future”. The two-day Summit is expected to attract over 4,000 attendees from close to 40 countries/regions to listen to insights from over 100 renowned technology visionaries, industry pioneers and business leaders from home and abroad on how cutting-edge technologies and innovative applications are reshaping the urban landscape and modern digital economy from the perspectives of sustainability, connectivity, and resilience.
Building on the resounding success of the previous edition, this year’s DES features an action-packed programme with eight thematic forums, examining a wide array of trending innovation and technology (I&T) topics and future developments in new quality productive forces, artificial intelligence (AI), business innovation, smart industrialisation and supply chain, smart mobility, new energy, smart finance, Web3.0, as well as smart living and inclusion.
See also: Twelve core recommendations given to govt on fast-tracking digital economy development (The Standard)
Industrial Policy is Back But the Bar to Get it Right Is High (IMF)
Governments have traditionally used targeted interventions known as industrial policy to make domestic producers more competitive or promote growth in selected industries. While some developing countries continued to use it, industrial policy fell out of favor across most of the world for years, because of its complexity and uncertain benefits.
Now, industrial policy appears to be back everywhere. The pandemic, heightened geopolitical tensions, and the climate crisis raised concerns about the resilience of supply chains, economic and national security, and more generally about the ability of markets to allocate resources efficiently and address these concerns. As a result, governments came under pressure to have a more active industrial policy stance.
Trade growth likely to pick up in 2024 in spite of challenging environment (WTO Blog)
The latest edition of the WTO’s “Global Trade Outlook and Statistics” foresees a gradual recovery in world merchandise trade volume in 2024 and 2025. This follows a contraction in 2023 driven by the lingering effects of high energy prices and inflation in advanced economies, particularly Europe. So, what does our forecast indicate?
Specifically, we expect merchandise trade to grow by 2.6% in 2024 and 3.3% in 2025 after falling by 1.2% in 2023. However, there is a downside risk due to regional conflicts, geopolitical tensions and economic policy uncertainty.
In value terms, merchandise trade fell 5% in 2023 to US$ 24.01 trillion but the decline was mostly offset by a 9% increase in commercial services trade, which reached around US$ 7.54 trillion. Total goods and services trade was only down 2%. A particularly bright spot for services was the global exports of digitally delivered services, which reached US$ 4.25 trillion in 2023, up 9% year-on-year, accounting for 13.8% of world exports of goods and services.
WTO: Africa’s exports to grow by 5.3% in 2024, fastest in the world (Asaase Radio)
The World Trade Organisation (WTO) is projecting that exports from Africa will increase at the fastest pace in 2024 by 5.3% when compared with other regions. This is contained in the World Trade Organization’s trade outlook for 2024 According to the report, the continent’s exports will exceed pre-pandemic levels, but imports will continue to limp as a result of higher energy and commodity prices.
Moving forward, the report warns that geopolitical tensions and policy uncertainty could limit the extent of the trade rebound. Food and energy prices could again be subject to price spikes linked to geopolitical events. The report’s special analytical section on the Red Sea crisis notes that while the economic impact of the Suez Canal disruptions stemming from the Middle East conflict has so far been relatively limited, some sectors, such as automotive products, fertilisers and retail, have already been affected by delays and freight costs hikes.
Strong import volume growth of 5.6% in Asia and 4.4% in Africa should help prop up global demand for traded goods this year. However, all other regions are expected to see below average import growth, including South America (2.7%), the Middle East (1.2%), North America (1.0%), Europe (0.1%) and the CIS region (-3.8%).
Development aid hits record high but falls for developing countries (UNCTAD)
For millions of people, ODA means having electricity, medical care and food on the table. It means an opportunity for a better future. ODA, also referred to as aid, is the most stable and predictable source of external financing for developing countries, especially in times of crisis. But international crises leave visible marks on it, generating new demands and reshuffling priorities.
A new report by the UN Global Crisis Response Group entitled “Aid under pressure“ analyses the shifts in ODA. Despite reaching record levels in 2022, ODA decreased by $4 billion for developing countries, marking a 2% drop. Over 70 developing countries, including 24 least developed countries and 15 small island developing states, suffered declines. The affected countries are home to more than 2.9 billion people. Moreover, ODA fell $143 billion short of the Sustainable Development Goal 17 target.
In 2022, members of the Development Assistance Committee (DAC) devoted just 0.37% of their gross national income (GNI) to ODA. Had they met the SDG 17.2 aid target of 0.7%, they could have almost doubled aid inflows to developing countries.
Quick links
Embracing regional integration could be SA’s way out of its financial pickle (EWN)
China continues to dominate an expanded BRICS (East Asia Forum)
Italy to invite African, South American leaders to G7 summit (Reuters)
G20 members make limited progress on decarbonisation (EnvironmentJournal)
Opinion: Moving from hype to reality – how green hydrogen’s role in the energy transition is evolving (Engineering News)
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South Africa well placed to benefit from huge green hydrogen outlook, attendees hear (Engineering News)
Green hydrogen has a massive potential future and South Africa is very well positioned to produce it, attendees of the Hydrogen Economy Discussion heard on Thursday. Most of the 90-million tonnes of hydrogen produced currently through the likes of South Africa’s Sasol and others is grey. Not only must all of that become green, but it also needs to grow seven times bigger to allow green hydrogen to become a necessary 7% of the energy mix.
“From a South Africa perspective, we’re very well positioned through our energy resources in terms of both solar radiation and onshore wind, our lengthy coastline and ability to desalinate water for hydrogen production, our proximity to both the European and Asian markets, and having places like the Northern Cape, which are significant land masses,” South Africa’s Ministerial advisor and Presidency green hydrogen lead Masopha Moshoeshoe highlighted at the event covered by Mining Weekly.
South Sudan clarifies new $350 levy on goods imports (The East African)
The Mombasa Monitoring Station-National Revenue Authority of South Sudan has clarified that only exporters and importers will be required to comply with the payment of $350 (Ksh46,000) levy being charged per unit to all goods destined to South Sudan and not clearing agents. In its response to a petition by clearing agents, the Authority said that a clearing agent should not use own funds to pay the service charge (levy).
“The payment of this service is at all times to be paid by the importer or exporter of cargo into and out of South Sudan respectively,” the response by Mombasa Monitoring Station-National Revenue Authority of South Sudan filed in court read. Clearing agents under Kenya International Freight and Warehousing Association (Kifwa) challenged imposition of the levy.
Kenya, Ghana attempt smooth trade in cagey Africa (The East African)
Kenya and Ghana, on opposite sides of the continent, say they want to revive trade between them. And they see their vast deposits of gemstones and prized agricultural products as key to boosting their commercial partnership.
On a state visit to Accra last week, Kenya’s President William Ruto and his host Ghana’s leader Nana Akufo-Addo, witnessed the signing of several bilateral agreements and memorandums of understanding. One of the agreements was between the Ghana Investment Promotion Centre (GIPC) and the Kenya Investment Authority (KIA). Others were between the Association of Ghana Industries and the Kenya Association of Manufacturers, a kind of peer-to-peer relationship. There are not many similarities. But the ones that do exist could help boost trade. They are among Africa’s most stable economies (although Ghana, like Kenya, has struggled with foreign debt).
In Africa, trade has often been hampered by a lack of manufacturing, meaning that countries produce similar products that cannot be sold across borders. This is in addition to the many tariff and non-tariff barriers such as language differences, currency conversion problems, infrastructure problems and insecurity. But since AfCTA was signed five years ago, enthusiasts like Ghana and Kenya have been looking for opportunities.
Business is blooming in East Africa – UK suspends tariff for flower exports (GOV.UK)
From today, the UK has temporarily removed export tariffs for cut flowers, with the aim of making trade with the UK easier and cheaper for growers in East Africa and beyond. Unlimited quantities of flowers can now be exported to the UK at 0% tariff, even if they transit via a third country. This is particularly important for East African flower growers who transport their blooms via third-countries or auction houses before they arrive in the UK.
The move aims to increase trade and further strengthen the economic relationship between the UK and the region. UK consumers could win big too – on price, seasonality and variety. The suspension of 8% duty for cut flowers applies across the world but will be a big win for major flower growing regions in Kenya, Ethiopia, Rwanda, Tanzania, and Uganda. The duty suspension will remain in place for two years from 11 April 2024 to 30 June 2026.
Unlocking Malawi’s Trade Barriers Through One-Stop Border Posts (World Bank)
The Dedza border post, situated between Malawi and Mozambique, is a busy place. On average, more than 80 trucks are cleared daily, carrying shop merchandise from South Africa to Malawi including fertilizers for Malawi’s agriculture sector.
For the past few years, before the construction of the new One-Stop Border Post (OSBP) facility, it took about 24 to 36 hours to clear a truck carrying items such as wheat, fertilizers, groceries, and raw materials for Malawi’s manufacturing industry. Drivers and clearing agents had to dash from one office to another between the two countries to clear the goods. Malawian traders traveling to and from South Africa through the Dedza–Mozambique border had difficulty locating the appropriate offices to present the required paperwork. In addition, the lack of parking facilities meant that the road leading to the border post was always congested, as trucks scrambled for space to park while waiting to be cleared.
The Dedza One-Stop Border Post, which was completed in 2023, boasts two examination bays for goods, parking spots for 100 freight trucks, and a modern passenger terminal. “We now take less than half a day to process all the paperwork to clear the goods that we have carried, which is far less than the minimum of three days that we used to spend here,” says Flatella Makwakwa, a truck driver who has been using the Dedza border for more than three years. He also acknowledges the benefits of the new system when it comes to facilitating the passing of trucks and making life more comfortable for the users.
Burundi, DR Congo to Establish Joint Border Committees (COMESA)
Small-scale cross-border traders between Burundi and the Democratic Republic of Congo have agreed on Terms of Reference (TORs) that will pave the way for the establishment of Joint Border Committees. These committees will assist in making trade faster, safer, and cheaper across the border. The implementation of the JBCs is in line with the Bilateral Trade Agreement between Burundi and the DRC signed in April 2022.
With support from the Great Lakes Trade Facilitation and Integration Project (GLTFIP) financed by the World Bank, COMESA convened a three-day technical meeting from 26 to 28 March 2024 in Burundi to assist the two member states in setting up JBCs along their common borders.
Currently, tradable commodities, particularly agricultural products, face various regulations, leading to multiple inspections and other controls by border agencies. The meeting noted that the uncoordinated application of these regulations and controls often frustrates the seamless flow of trade across borders, making small-scale cross-border trade costly and risky.
Africans should unite, maximise on trade opportunities on continent – says re-elected PAP president Charumbira (New Zimbabwe)
Africans should be conscientised on the trade opportunities available to them, recently re-elected Pan African Parliament president, Senator Chief Fortune Charumbira, has said. Addressing journalists after meeting President Emmerson Mnangagwa at State House recently, Charumbira said his first task was to unite over 270 PAP MPs and to ensure Africans become aware of the great business potential within the continent.
“The first one is unity to the Parliament. We have been fractured, but l can assure you that l will embark on a programme of uniting over 270 PAP members. One major issue on the continent is that of trade through the African Continental Free Trade Area (ACFTA). “The main issue on the PAP is Agenda 2063 pronounced by the African Union (AU) and the issue of trade on the continent,” Charumbira said. He urged countries that have not ratified the Protocol on Trade to do so and to conscientise Africans on the opportunities available on trade under the AFCTA.
Developing Further The Social Dimension Of The African Continental Free Trade Area (Forbes Africa)
Lauded as the key to Africa’s economic fortunes, the African Continental Free Trade Area (AfCFTA) has been met with much excitement. Indeed, this area holds great economic promise for the continent but there are some glaring gaps that require consideration – particularly from a social dimension. Established in 2018 by the African Continental Free Trade Agreement, AfCFTA entails the creation of a consolidated marketplace for goods and services throughout the African continent.
According to a 2022 World Bank report, this agreement could generate vast economic benefits, embracing 1.3 billion people and a combined GDP of $3.4 trillion. If fully implemented, the agreement is expected to increase income by 9% by 2035 and help uplift 50 million individuals from extreme poverty.
Yet, there has been little consideration of the impact of this movement on social security, an important policy tool that addresses socio-economic challenges, contributes to long-term development, and promotes a more equitable and resilient society. In Africa, particularly, its impact cannot be overlooked.
US senators will introduce bill to renew Africa trade pact through 2041 (Reuters)
A bipartisan group of senators will introduce a bill to renew the United States’ trade pact with sub-Saharan Africa ahead of its expiration next year, an aide to one of the senators said on Thursday.
The bill was introduced by Senators Chris Coons, a Democrat, and James Risch, the top Republican on the Senate Foreign Relations Committee. A cross-party group of senators - Dick Durbin, Michael Bennet, Chris van Hollen, Todd Young and Mike Rounds - are also co-sponsoring the bill. An aide to Coons said it was a high priority to reauthorize the African Growth and Opportunity Act (AGOA) this year.
The bill, which was seen exclusively by Reuters, would renew the African Growth and Opportunity Act for 16 years, through 2041, and help countries implement strategies to take advantage of the program. It would also maintain benefits for countries as they grow richer, enabling them to remain in the program if they are determined to be high-income for five years rather than removing them if they reach that threshold for a single year.
China eyes digital, green economy cooperation potential in Africa: MOC (Xinhua)
China’s Ministry of Commerce (MOC) said on Thursday that the government encourages Chinese companies to explore new investment potential in Africa in such areas as digital economy and green development, and to innovate the investment-construction-operation model. Responding to a media enquiry on China’s investment in Africa, MOC spokesperson He Yadong said at a press conference that the government encourages Chinese firms to expand economic and trade cooperation in Africa in accordance with commercial and market rules.
“In recent years, China’s investment and cooperation with Africa have developed steadily and healthily,” he said, adding that in 2023, China’s direct investment in Africa maintained a growing trend, with projects covering diversified sectors such as building materials, automobiles, home appliances and agricultural product processing.
Gender Equality and Economic Development in Sub-Saharan Africa (IMF)
Efforts to achieve gender equality will not only help sub-Saharan Africa revive its inclusive growth engine but also will ensure progress towards the Sustainable Development Goals and help address the main disruptive challenges of this century. This book explores the progress made in gender equality in the region, highlighting both the challenges and successes in areas such as legal reforms; education; health; gender-based violence; harmful practices, such as child marriage; and financial inclusion. It takes stock of initiatives towards integrating gender into core macroeconomic and structural reforms, such as through implementing gender budgeting and examines the role that fiscal and other policies can play in closing gender gaps when they are mindful of distributional impacts.
Drawing from extensive research across different institutions, the book underscores the macroeconomic significance of gender equality, emphasizing its potential to drive GDP growth, enhance economic stability, reduce income inequality, and foster sustainable development. It lays out how gender gaps interact with emerging challenges, such as digitalization, and explores the impact of global megatrends, such as climate change, on gender inequality, offering strategies for inclusive policy responses—including in a context where women and girls are still carrying a disproportionate care burden that is often not captured in economic measurement.
The book aims to serve as a roadmap for policymakers, stakeholders, and advocates seeking to harness the untapped potential of gender equality—for its own sake and for the region’s inclusive, sustainable, and green development. It calls for concerted efforts to dismantle structural barriers, transform social norms, and prioritize gender-responsive policies to unlock the full economic potential of sub-Saharan Africa.
Global coal power grew 2% last year, the most since 2016, GEM survey says (Engineering News)
The world’s coal-fired power capacity grew 2% last year, its highest annual increase since 2016, driven by new builds in China and decommissioning delays elsewhere, according to research published on Thursday. Despite record renewable additions, nearly 70 gigawatts (GW) of new coal power capacity were commissioned across the world last year, including 47.4 GW in China, the U.S.-based Global Energy Monitor think tank said in its annual survey. Coal-fired capacity outside China also grew for the first time since 2019, while worldwide only 21.1 GW was shut down, the survey said.
Since the Paris Agreement was signed in 2015, 25 countries have cut coal-fired power capacity, but 35 have increased it, and far more needs to be done, said Flora Champenois, the GEM report’s lead author. “The world is heading in the right direction in terms of coal’s role in the energy sector, but not quickly enough, and with some risky detours along the way,” Champenois said.
Russia is considering the possibility of creating a BRICS grain exchange (Oreanda-News)
The updated BRICS strengthens its position on several fronts at once. Russia plans to create a common grain exchange. This will strengthen the importance of Moscow as a key supplier and increase the food security of the interstate association. In addition, it transforms international trade, and not in favor of Western manufacturers. At the end of last year, the Union of Grain Exporters appealed to the Ministry of Agriculture.
According to the estimates of the Union of Exporters, the five countries of the “old” BRICS represent 40% of the global grain market. Total production is 1.17 billion tons, consumption is 1.1 billion. In January, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates joined the international organization. Now the figures are 1.23 and 1.22 billion, respectively. The BRICS grain Exchange would bring together leading buyers and suppliers, Russian exporters stressed.
Economists admit that there really is a problem, the established order needs to be changed — both in the interests of Russia and taking into account the “grain potential” of the entire BRICS.
UN: AI resolution must prioritise human rights and sustainable development (Article 19)
We, the undersigned civil society organisations, welcome the United States-led United Nations (UN) General Assembly resolution ‘Seizing the opportunities of safe, secure and trustworthy artificial intelligence systems for sustainable development’. Stakeholders far from UN grounds benefit when states clarify their position on new and emerging technologies and how international law, including international human rights law, and sustainable development commitments apply to fields like artificial intelligence. This is especially true with all the hype, murky definitions, and self-interested boosters surrounding artificial intelligence.
New data shows majority of companies are overlooking plastic-related risks (CDP)
Thousands of companies are behind on key steps to tackle plastic pollution in their value chains, according to landmark data released today by CDP, the non-profit that runs the world’s environmental disclosure system. The data reveals, for the first time, the extent of companies’ awareness of their contribution to the plastic crisis, and presents a strong baseline for accelerating action at the fourth round of Global Plastics Treaty negotiations (INC-4) later this month, where mandatory corporate disclosure is on the table.
Findings show that almost half (42%) of companies took the vital first step of mapping where plastics were produced and used within their value chains in 2023. However, there are significant gaps in corporate understanding and action:
Aid under pressure: 3 accelerating shifts in official development assistance (UNCTAD)
Official Development Assistance (ODA) is more than just cash. It is a powerful way to make a difference where it matters most. It is aimed at improving economic development and welfare for millions of people. ODA, also referred to as aid, means having access to electricity and medical care, having food on the table, or even having an opportunity for a better future.
Global ODA reached record levels in 2022, $287 billion at constant 2021 prices, but continues to fall short of the SDG 17 aid target. ODA from DAC donors remained $143 billion below the SDG 17 aid target of 0.7% of their gross national income. Moreover the aid landscape is undergoing shifts that may be detrimental to the development aspiration of some countries.
Along with remittances and foreign direct investment, ODA represents a major source of external financing. While ODA is the smallest of these three sources in developing countries overall, for vulnerable countries, it often represents the main source of external financing. Yet international crises leave visible marks on the ODA landscape, generating new demands and reshuffling priorities.
Aid flows to developing regions fell by $4 billion despite global ODA reaching record levels in 2022. ODA for developing countries decreased by 2%. It fell by more than 3.5% for Africa, Asia and Oceania and least developed countries (LDCs) between 2021 and 2022. The decline in ODA affected the majority of developing countries, including 24 LDCs and 15 Small Island Developing States (SIDS).
International aid rises in 2023 with increased support to Ukraine and humanitarian needs (OECD)
International aid from official donors rose in 2023 to a new all-time high of USD 223.7 billion, up from USD 211 billion in 2022, as provider countries increased aid flows to Ukraine and directed more humanitarian assistance to developing countries, according to preliminary data collected by the OECD.
In 2023, the 1.8% rise in real terms was the latest in a series of annual increases in Official Development Assistance (ODA) provided by members of the OECD’s Development Assistance Committee (DAC) and the fifth consecutive year that ODA has set a new record. Total 2023 aid is up by a third from 2019 levels, reflecting the additional aid provided since, related to the COVID-19 pandemic and Russia’s war of aggression against Ukraine.
Massive investment is needed in sustainable infrastructure to build climate change resilience (OECD)
Record global temperatures around 1.4 degrees Celsius above pre-industrial averages led to more heatwaves and floods, longer wildfire seasons and widespread droughts in 2023. A new OECD report details the growing pressure of such climatic events on infrastructure in all sectors, from electricity, communication and transport networks to water and waste treatment, with developing countries often particularly hard hit.
The Infrastructure for a Climate-Resilient Future report released today during the OECD Infrastructure Forum, recommends governments systematically factor climate resilience into infrastructure planning and decision-making, including by prioritising sustainable projects, to help reduce societal and economic vulnerability and avoid long-term costs. Climate-resilience measures can also protect investment returns, ensure business continuity and support continued economic growth and development.
Industrial Policy Is Not a Magic Cure for Slow Growth (IMF Blog)
Many countries are ramping up industrial policy to boost innovation in specific sectors in the hope of reigniting productivity and long-term growth, amid security concerns.
Industrial policy, in which governments support individual sectors, can drive innovation if done right. But striking the right balance is a crucial consideration, as history is full of cautionary tales of policy mistakes, high fiscal costs, and negative spillovers in other countries.
This recent turn to industrial policy to support innovation in specific sectors and technologies is not a magic bullet, as we show in a chapter of the April 2024 Fiscal Monitor. Instead, well-designed fiscal policies that support innovation and technology diffusion more broadly, with an emphasis on fundamental research that forms the basis of applied innovation, can lead to higher growth across countries and accelerate the transition to a greener and more digital economy.
Most industrial policy relies heavily on costly subsidies or tax breaks, which can be detrimental for productivity and welfare if not effectively targeted.
Lifting up growth prospects is paramount to improve living standards and strengthen economic resilience. It requires eliminating constraints to economic activity and creating opportunities to boost productivity growth. Foundational reforms — strengthening governance, cutting red tape, increasing female labor market participation, improving access to capital — all have a role to play. Across emerging and developing countries, a well-sequenced package of reforms could lift output by 8 percent in four years.
Even more can be achieved with policies to encourage economic transformation — to speed up the green and digital transition. How well we handle them will define the legacy of this decade. This is particularly important for the green transition. How quickly we advance it will have tremendous significance for whether we succeed to tame climate risks. But the shift to a climate friendly economy goes beyond managing risks. It also offers tremendous opportunities for investment, jobs, and growth.
Technological advancements affect many sectors of the economy—from manufacturing to healthcare and financial services. We have been transitioning to a new digital economy, and now AI is likely to dramatically accelerate the fourth Industrial Revolution.
The pandemic, wars, and geopolitical tensions have changed the playbook for global economic relations. Policymakers are looking to strike a balance between efficiency and security, between cost considerations and resilience in supply chains. There are already signs that trade relations are being re-shaped.
Open letter to G20 health ministers calls to ‘preserve IP enablers’ (BusinessLine)
Health ministers of the G20 countries have been urged by representatives of the international pharmaceutical industry to protect intellectual property (IP), to enable technology transfers and voluntary collaborations, among other things.
In a joint open letter, three organisations including the International Federation of Pharmaceutical Manufacturers and Associations (IFPMA) have called on health ministers of these countries to “preserve health innovation enablers” like the intellectual property framework, for example, in their policies and programs worldwide. The submission comes against the backdrop of the Second G20 Health Working Group meeting this week at Brasilia.
The IP enablers “underpin legal security to enhance the potential for increased trade, investments and voluntary collaborations, including technology transfer in G20 countries,” said the joint letter from IFPMA, US-based nutritional supplements company Interfarma, and FIFARMA (the Latin American Federation of the pharmaceutical industry).
New Global Services Trade Data Hub offers extensive, tailored access to WTO data (WTO)
The new Global Services Trade Data Hub now available on the WTO website provides access to comprehensive data on services trade. It provides visualizations and customizable features for download – catering to the diverse needs of trade negotiators, analysts, researchers and decision-makers – to deliver insights into global services trade.
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China-Africa ties: A Chinese ‘debt trap’? (France 24)
Africa-China cooperation and prospects of a shared future (The Nation Newspaper)
Russia’s BRICS Chairmanship: Priorities and Goals (TV BRICS)
BRICS vs G7: The Fight is On (Asia Sentinel)
Strengthening the G20 Common Framework a global public good that benefits all (Arab News)
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South African fossil fuel subsidies hit record R118bn in 2023 (Engineering News)
A new study has found that South Africa’s fossil fuel subsidies tripled between 2018 and 2023, rising to R118-billion from R39-billion over the period, with subsidies having been increased largely in response to the surge in fuel prices following Russia’s invasion of Ukraine in 2022.
Titled ‘Blackouts and Backsliding: Energy Subsidies in South Africa 2023’, the International Institute for Sustainable Development (IISD) report calculates that oil and gas subsidies more than doubled over the five years to R52-billion compared with R23-billion in 2018. The value-added tax exemption on the sale of petroleum, diesel and illuminating paraffin remained the highest-value oil and gas subsidy at R30-billion, but other oil and gas subsidies also increased.
“Over 700 Ghanaian Products Absorbed Under AfCFTA’s Guided Trade Initiative” (The Presidency Ghana)
The President of the Republic, Nana Addo Dankwa Akufo-Addo, has during the State visit of the President of Guinea-Bissau Umaro Mokhtar Sissoco Embaló, announced the giant strides being made by Ghanaian products under the Guide Trade Initiative of the African Continental Free Trade Area.
Following the maiden roll out of the Guided Trade Initiative, President Akufo-Addo said, over 700 AfCFTA self-defined products from Ghana such as cosmetics, processed foods, coconut oil, Shea butter and garments, have been rolled out and targeted by the AfCFTA market under the Guided Trade Initiative which was launched in October 2022.
Speaking at a Joint Press conference at the close of bilateral engagements with President Embaló and his Ministerial team from Guinea Bissau who are on State visit to Ghana, President Akufo-Addo said such transformative showing, “will give us the best opportunity to derive maximum benefit from our abundant natural resources and from our participation in the AfCFTA, and help bring progress and prosperity to our people”
Kenya’s Miraa Exports to Somalia Suffer Due to High Levies (Business Day Africa)
Kenya’s miraa exports are taking a severe blow from steep levies, compelling traders in Somalia to halt purchases of the stimulant from Kenya due to its dwindling competitiveness in the market. This development is adversely impacting local farmers who are unable to sell their produce due to the lack of market options, given that Somalia stands as the primary destination for miraa exports from Kenya.
To access the lucrative Somali market, Kenya’s stimulant is burdened with a hefty $4.5 levy per kilogramme, rendering it financially unviable for buyers in Mogadishu. Kenya’s miraa traders argue that with the commission in place, the stimulant in Mogadishu must sell for upwards of $30 for a bundle, which many consumers cannot afford.
Uganda traders in a fix over tight rules on China imports (The East African)
Ugandan small-scale traders who buy goods from China are grappling with gaps in cargo documentation, rising import tax bills and bureaucracy even with advanced trade management tools from the taxman. A directive by the Uganda Revenue Authority (URA) that requires importers to submit master and house bills of lading for all cargo containers arriving in the country, has left the traders who prefer consolidation of cargo in a dilemma.
A master bill of lading refers to a freight document that provides details about the ownership of goods packed in a container, names of the shipping company, cargo destination, supplier’s names and Cost Insurance Freight (CIF) value among others.
“A cargo container that arrives in the country must have a master’s bill of lading and a house bill of lading attached to it in case of multiple batches of cargo. But some containers arrive from China with a master’s bill of lading while the house bills of lading are missing.
Navigating the nexus of hunger, food waste and sustainable development in Ghana (MyJoyOnline)
According to the African Regional Overview of Food Security and Nutrition provided by the Food and Agriculture Organization, it is concerning that Africa is currently not making significant progress towards fulfilling the Sustainable Development Goal (SDG) 2 targets. According to the recently released Food Waste Index Report 2021, Ghana is the only country in the African region where the household waste estimate has achieved a high level of confidence.
Kenya’s Sugar Pricing Committee Cuts Cane Prices by 14 Percent (Business Day Africa)
Kenya’s Sugar Pricing Committee has implemented a 14 percent reduction in the price of sugarcane, responding to a concurrent decrease in the cost of the commodity on the retail market. In the most recent review, the committee, mandated with periodically assessing sugarcane prices, revised the cost from Ksh5,900 per tonne in March to Ksh5,100, marking one of the sharpest cuts in recent months.
“The second Interim Sugar Pricing Committee held a meeting on Thursday April 4, 2024 in Kisumu. During the meeting to review sugarcane price, the committee resolved that the new sugarcane price will be Ksh5,100 effective Monday April 8,2024,” said the Head of Sugar Directorate Jude Chesire in a letter to stakeholders. The directorate cited a notable decline in retail sugar prices as the driving factor behind this adjustment.
Border remains open for importation of potatoes (The Namibian)
Potatoes maintained their place on the open import list as the Namibian Agronomic Board (NAB) closed the border for the importation of six of the 20 horticultural products on the special controlled products list for the period 1-30 April. This underscores the challenges local farmers are facing in meeting demand for the staple crop and seven other crops.
According to a notice to all horticulture traders issued by chief executive Fidelis Mwazi on 25 March, the border is closed for the importation of all types and sizes of butternut, cabbage, English cucumber, green pepper, pumpkin and watermelon, except for exclusions.
Government officials, trade representatives and other stakeholders from the Republic of Uganda and the Republic of South Sudan convened at Nimule Border on Tuesday for a high-level joint border sensitisation mission focused on strengthening cross-border trade relations and fostering regional integration. The mission provided a platform for in-depth discussions on various issues impacting trade between the two Partner States, with a particular emphasis on the implementation of One Stop Border Posts (OSBPs) and other trade facilitation measures.
A key highlight of the mission was the in-depth review of the performance of the OSBPs, which aim to streamline clearance processes and enhance security measures at border points. Stakeholders underscored the importance of consolidating various government agencies into one central location to expedite clearance times and simplify procedures for cross-border traders.
Southern African Development Community (SADC) Member States meet to validate Regional Biodiversity Strategy and Action Plan (Ventures Africa)
The Food and Agriculture Organization of the United Nations (FAO) in collaboration with the Southern African Development Community (SADC), have organized a three-day workshop to validate the SADC Biodiversity Strategy and Action Plan (BSAP). From 8 to 10 April 2024, more than 80 representatives from SADC Member States, environment and agriculture sectors, development partners and the private sector will review and validate the revised draft SADC BSAP.
Biodiversity initiatives in the region have been guided by the first SADC Regional Biodiversity Strategy of 2008 and the 2010 SADC Regional Action Plan. The reviewed SADC BSAP will cover a 10-year period (2025-2035) and will be aligned with the African Union’s Biodiversity strategy and the Kunming-Montreal Global Biodiversity Framework.
Niger, ECOWAS Bank Sign MoU to Finance Important Projects (This Day Live)
The Niger State Government has signed a Memorandum of Understanding (MoU) with the ECOWAS Bank for Investment and Development, to finance four priority projects totaling $114 million in various socio-economic sectors. At the occasion of the ECOWAS Investment Forum (EIF) that took place between April 4 and 5, 2024, in Lome, Togo, the Niger State Government signed the MoU with the ECOWAS Bank for Investment and Development.
The projects to be financed include the construction of the Madalla-Suleja -Maje dual carriage road ($30m), the construction of Madalla Green Economic Market ($11m), the construction/conversion of the former secretariat into School of Medical and Health Sciences(S40 m) and the construction of eight International truck-trailer parks in Makwa, Tapa, Lambatta, Bida, Makera, Dikko, Tagina and Kontagora ($43m).
Platinum-linked green hydrogen set to be world’s ‘new oil’, Forbes article highlights (Engineering News)
There’s no climate solution without hydrogen. It’s the missing piece of the clean energy puzzle, says a global CEO-led initiative that brings together leading companies with a united vision. This initiative has ballooned to 150 multinationals companies from its modest 13-leader 2017 launch at World Economic Forum.
The global Hydrogen Council it has advanced into now represents the entire value chain of hydrogen, which is planet earth’s most abundant element, as well as being renewable and non-polluting. “We need to embrace hydrogen as a global energy solution now more than ever,” is what is being stated by this council, amid hydrogen development taking place left, right and centre across Asia, Europe, the Americas and to a lesser but moderately advancing extent in Africa.
Meanwhile, Forbes magazine’s contributor on energy and climate Ken Silverstein commented that it’s just a matter of green hydrogen getting its legs for it to become the world’s ‘new oil’ that will to replace the non-sustainable energy source that currently drives the global economy.
Gas Resources Will Drive Economic Growth, Industrial Development For Nigeria- Kyari (The Whistler Newspaper)
The Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPC Ltd.) Mr. Mele Kyari, has reiterated the crucial role of natural gas in fuelling economic growth and industrial development in Nigeria. Kyari, who was speaking at the public presentation of the book “The Rise of Gas: From Gaslink to the Decade of Gas” authored by Engr. Charles A. Osezua, the GCEO highlighted gas’ global acceptance as a crucial energy source that sustains economic growth and drives industrial activities.
The GCEO underscored the significance of prioritizing natural gas production and supply, particularly in the context of geopolitical dynamics and energy security in the global economy. With Nigeria boasting substantial gas reserves exceeding 200 trillion cubic feet (Tcf) and a potential to reach 600 Tcf, the GCEO said it is pertinent Nigeria leverages the gas resource for sustainable development, energy security, and job creation.
WTO forecasts rebound in global trade but warns of downside risks (WTO)
In the latest “Global Trade Outlook and Statistics” report, WTO economists note that inflationary pressures are expected to abate this year, allowing real incomes to grow again — particularly in advanced economies — thus providing a boost to the consumption of manufactured goods. A recovery of demand for tradable goods in 2024 is already evident, with indices of new export orders pointing to improving conditions for trade at the start of the year.
WTO Director-General Ngozi Okonjo-Iweala said: “We are making progress towards global trade recovery, thanks to resilient supply chains and a solid multilateral trading framework — which are vital for improving livelihoods and welfare. It’s imperative that we mitigate risks like geopolitical strife and trade fragmentation to maintain economic growth and stability.”
Transatlantic air cargo market bucks the global trend with a weak start to 2024 (Xeneta)
The Transatlantic air cargo corridor has had a weak start to the year, which is in stark contrast to the global market. This is one of the world’s top three air cargo corridors, but in the first two months of this year demand from Europe to North America was down by 4% compared to the same period in 2023 and 5% lower than 2019 levels. Interestingly, this trend has also been seen within ocean freight shipping on the Transatlantic trade, which saw a 4% year-on-year decline in demand in January.
The global air cargo market paints a different picture, with double-digit year-on-year growth (+11%) in the first two months of 2024 and +3% compared to the same period in 2019. This has been driven by factors such as disruptions in the Red Sea and strong demand for e-commerce out of China.
Airlines to take back control of payment (IATA)
The IATA Financial Settlement Systems (IFSS) continue to perform an essential service for global airlines, facilitating the movement of funds across the air travel value chain while maintaining extremely high levels of efficiency and security.
“As indicated by participants in the IFSS, potential opportunities could bring the value the IFSS offers to these other forms of payment as it does for BSP sales,” says Albakri. “We want to know where we need to move to in the next three-to-five years,” says Muhammad Albakri, IATA’s SVP for Financial Settlement and Distribution Services.
“We want to know where we need to move to in the next three-to-five years,” says Muhammad Albakri, IATA’s SVP for Financial Settlement and Distribution Services. “Where is the value in the IFSS and how should the scope be improved? It must continue to be aligned with airline needs.”
New UN report calls for trillions more in development investment to rescue Sustainable Development Goals (United Nations)
A new UN report today says financing challenges are at the heart of the world’s sustainable development crisis – as staggering debt burdens and sky-high borrowing costs prevent developing countries from responding to the confluence of crises they face. Only a massive surge of financing, and a reform of the international financial architecture can rescue the Sustainable Development Goals.
The 2024 Financing for Sustainable Development Report: Financing for Development at a Crossroads (FSDR 2024) says urgent steps are needed to mobilise financing at scale to close the development financing gap, now estimated at USD 4.2 trillion annually, up from USD 2.5 trillion before the COVID-19 pandemic. Meanwhile, rising geopolitical tensions, climate disasters and a global cost-of-living crisis have hit billions of people, battering progress on healthcare, education, and other development targets.
Related: Massive investment and financial reform needed to rescue SDGs (UN News)
SDG: International cooperation critical for mobilising finances to meet 2030 development agenda (Nairametrics)
Director-General of the World Trade Organization, Dr. Ngozi Okonjo-Iweala has stated that international cooperation will be critical to mobilize the financial resources needed to meet the 2030 agenda for Sustainable Development. She disclosed this in her statement which formed part of the United Nations “2024 Financing for Sustainable Development Report” launched on Tuesday, April 9, 2024. The report says urgent steps are required to close the development financing gap, now estimated at USD 4.2 trillion annually.
“As the global community gears up for the fourth international conference on financing for development in 2025, the WTO envisions a transformative event that mobilizes financial resources at speed and scale and leverages the full spectrum of complementary policy tools to deliver sustainable economic growth and development for people around the world.
“With only five years to reach the Sustainable Development Goals, anticipation surrounding the conference is palpable, particularly in light of the setback dealt to the pursuit of the SDGs by the COVID-19 pandemic and the wider poly crisis of international conflict, environmental strains, debt distress, and other challenges to future growth and stability.
World’s biggest economies pumping billions into fossil fuels in poor nations (The Guardian)
The world’s biggest economies have continued to finance the expansion of fossil fuels in poor countries to the tune of billions of dollars, despite their commitments on the climate. The G20 group of developed and developing economies, and the multilateral development banks they fund, put $142bn (£112bn) into fossil fuel developments overseas from 2020 to 2022, according to estimates compiled by the campaigning groups Oil Change International (OCI) and Friends of the Earth US.
The G7 group of biggest economies, to which Japan and Canada belong, pledged in 2022 to halt overseas funding of fossil fuels. But while funding for coal has rapidly diminished, finance for oil and gas projects has continued at a strong pace. Some of the money is going to other developed economies, including Australia, but much of it is to the developing world. However, richer middle income countries still receive more finance than the poorest.
Global Warming Will ‘Decimate’ G20 Economies Without Unity: UN Climate Head (Barron’s)
UN climate chief Simon Stiell on Wednesday urged G20 nations to unite in tackling global warming, saying that allowing geopolitical divisions to sideline this common threat would “decimate” their economies. “Sidelining climate isn’t a solution to a crisis that will decimate every G20 economy and has already started to hurt,” Stiell said as he pressed for a new finance deal to help developing countries respond to global warming.
World Must Prioritize Productivity Reforms to Revive Medium-Term Growth (IMF)
The world economy faces a sobering reality. The global growth rate—stripped of cyclical ups and downs—has slowed steadily since the 2008-09 global financial crisis. Without policy intervention and leveraging emerging technologies, the stronger growth rates of the past are unlikely to return.
Faced with several headwinds, future growth prospects have also soured. Global growth will slow to just above 3 percent by 2029, according to five-year ahead projections in our latest World Economic Outlook. Our analysis shows that growth could drop by about a percentage point below the pre-pandemic (2000-19) average by the end of the decade. This threatens to reverse improvements to living standards, and the unevenness of the slowdown between richer and poorer nations could limit the prospects for global income convergence.
However, our latest analysis shows that there’s hope. A variety of policies—from improving labor and capital allocation across firms to tackling labor shortages caused by aging populations in major economies—could collectively rekindle medium-term growth.
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WTO members review six regional trade agreements (WTO)
‘Success of India’s G20 Presidency Makes Voice of Global South Stronger’: Brazilian Envoy (ETV Bharat News)
CO2 Watchdog Approves Carbon Credits for Value Chain Emissions (BNN Bloomberg)
Banks must adapt to survive as commodity finance demand slumps (Global Trade Review)
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2024-2029 Development priorities for Zambia: Infrastructure and Agricultural Value Chain (AfDB)
The Board of Directors of the African Development Bank Group has approved the Country Strategy Paper (CSP) for Zambia for 2024-2029, which sets out two priority intervention areas: Boosting the development of the private sector through investments in infrastructure and developing the country’s agricultural value chain.
“The aim of this new CSP is to support Zambia’s vision of speeding up its socioeconomic transformation to improve livelihoods,” comments Raubil Durowoju, head of the Bank Group’s Country Office in Zambia. “The first area emphasizes infrastructure development with the aim of increasing productivity, strengthening commercial competitiveness, diversifying the economy, and improving people’s lives. The second supports value addition and job creation and is targeted at women and young people,” he adds.
‘Uganda has enough stocks to support drought-hit States in Southern Africa’ (COMESA)
Drought hit COMESA Member States in southern African region can benefit from Uganda’s bumper harvest, says Gen. Fred Mwesigye, the country’s newly accredited Permanent Representative to COMESA. Gen. Mwesigye (Rtd) who is Uganda’s High Commissioner to Zambia was speaking at the COMESA Headquarters in Lusaka, Thursday 4 April 2024, when he presented his letter of credence to COMESA Secretary General, Chileshe Kapwepwe.
He noted the devastating effects of climate change in the Southern part of the continent, and stated that Uganda had a surplus of maize and other crops available to assist COMESA Member States affected by the drought.
Ethiopia set to join EAC, CS Malonza says (KBC)
Ethiopia is set to become the 9th member state of East Africa Community (EAC), just a few months after Somali’s admission to the bloc. This was disclosed by Peninah Malonza, the Cabinet Secretary for Ministry of EAC, Arid and Semi-arid Lands and Regional Development. Speaking while leading a relief food distribution drive in Kitui Central Constituency, Malonza announced that talks between Ethiopia and EAC Summit Heads of states are in the last stages and soon Ethiopia will be part of the bloc.
Kenya-Guinea Bissau Revamping Trade Ties (Vantures Africa)
Kenya and Guinea-Bissau are implementing far-reaching policies that will boost trade between the two countries. President William Ruto said while the current trade volume between the two countries is low, there is potential for improvement. He cited the African Continental Free Trade Area Agreement that is poised to enhance commerce.
President Ruto said Kenya and Guinea-Bissau are keen on implementing the Memorandum of Understanding that established a Joint Commission for Cooperation (JCC) signed in 2022. He explained that enhanced collaboration between the private sectors of both nations will significantly boost trade volumes. He made the remarks on Friday during a press briefing following bilateral talks with his Guinea-Bissau counterpart President General Umaro Sissoco Embalo.
Nigeria To Get $1.05bn Oil-backed Afreximbank Loan Balance In May (Leadership News)
Nigeria will in May, receive a $1.05 billion loan from the African Export-Import Bank (Afreximbank), being part of a $3.3 billion prepayment facility arranged by the Nigerian National Petroleum Company Limited (NNPCL), Bloomberg reports. The funds will be repaid using crude cargoes from the NNPCL. Recall that two-thirds of the largest syndicated loan raised by Africa’s biggest oil producer was disbursed in January.
Nigeria Sets Sights On Sustainable Blue Economy Development With AU Support (Arise News)
The federal government in collaboration with the African Union (AU) through the African Union – Interafrican Bureau for Animal Resources (AU-IBAR) is set to develop a national Blue Economy Strategy for Nigeria. This was revealed by the Minister Of Marine and Blue Economy, Adegboyega Oyetola at a stakeholders consultative workshop to define priority issues for development of National Blue Economy Strategy for Nigeria in Abuja on Monday.
Speaking at the event, Oyetola hinted that considering the huge potential of the national marine resources, the institutionalisation of the expanded partnership committee on sustainable blue economy in Nigeria was approved with the view to develop a strategic plan for the national blue economy. This, he revealed, was what has eventually resulted in the creation of the Ministry of Marine and Blue Economy.
African Economies Projected to Grow by 3.4 % in 2024, But Faster and More Equitable Growth Needed to Reduce Poverty (World Bank)
Increased private consumption and declining inflation are supporting an economic rebound in Sub-Saharan Africa. However, the recovery remains fragile due to uncertain global economic conditions, growing debt service obligations, frequent natural disasters, and escalating conflict and violence, according to the World Bank’s latest Africa’s Pulse report. Transformative policies are needed to address deep-rooted inequality to sustain long-term growth and effectively reduce poverty.
The report highlights that external resources to meet gross financing needs of African governments are shrinking and those available are costlier than they were prior to the pandemic. Political instability and geopolitical tensions weigh on economic activity and may constrain access to food for an estimated 105 million people at risk of food insecurity due to conflict and climate shocks. African governments’ fiscal positions remain vulnerable to global economic disruptions, necessitating policy actions to build buffers to prevent or cope with future shocks.
“Inequality in Africa is largely due to the circumstances in which a child is born and accentuated later in life by obstacles to participating productively in markets and regressive fiscal policies,” said Gabriela Inchauste co-author of a forthcoming World Bank report on tackling inequality in Sub-Saharan Africa. “Identifying and better addressing these structural constraints across the economy offers a road map for a more prosperous future.”
Africa’s Pulse calls for several policy actions to foster stronger and more equitable growth. These include restoring macro-economic stability, promoting inter-generational mobility, supporting market access, and ensuring that fiscal policies do not overburden the poor.
Africa must improve trade to resolve challenges – WTO (Graphic)
The World Trade Organisation (WTO) has urged African countries to implement policies that will enable the continent to derive maximum benefit from global trade. The Head of Commodities and Agriculture at the WTO, Dr Edwini Kessie, said increased trade and effective trade policies were key in helping to resolve the myriad of challenges faced by the continent.
Dr Kessie said one of the ways leaders and policy makers on the continent could tackle some of the challenges was by placing emphasis on trade, which he stressed had become the catalyst for economic growth, reducing poverty and creating jobs and opportunities for billions of people. Trade, he said, had added more value to economies and made them more productive due to increased competition and specialisation. He said Africa had been a beneficiary of trade but stressed that more needed to be done for the continent to derive more benefits from global trade.
Last Frontier To Unlock Africa’s E-Commerce Potential (CIO Africa)
Last month was six years since the grand dream to create a single African market for 1.2 billion people plus took a concrete step and therefore now is a good time to reflect on how far we have come and what we need to do to achieve this goal. March 21 was the sixth anniversary since the establishment of the African Continental Free Trade Area (AfCFTA) and there have been many gains made that are catalyzing efforts to achieve the goal of a seamless continental market.
One area that has the potential to create a borderless and efficient market as envisioned by AfCFTA is Africa’s e-commerce space which Statista estimated hit the $40 billion-mark last year, this is still small in comparison to other markets but is still commendable considering that the market was worth an estimated $29 billion in 2022. Translated this is a 38 per cent increase.
For successful e-commerce to happen there must be massive investments in three critical areas. First, a good, affordable, and reliable internet network must be available. Consumers, in turn, need to access these services by possessing internet devices and affording internet plans. Second, there must be a reliable and efficient payment system. Buyers and sellers must be able to freely and efficiently trade, including having internet-enabled devices that can allow for reversal of transactions. Third, physical infrastructure must be in place i.e. good roads and of course, a physical address system or distribution points must be in place to ensure goods delivered can easily be accessed.
Linking a borderless Africa: Leveraging AfCFTA’s potential to drive business and economic growth (The Business & Financial Times)
Successful economies, societies and regions have long opted for cooperation, consolidation and integration against division, separation and isolation. The ‘roads’ to sustainable economic development and prosperity are long with many stops, even some dead ends and yet seldom has a society reached this destination without bringing its neighbours along for the journey. The African Continental Free Trade Area (AfCFTA) is a momentous milestone in the modern history of our continent. It’s a recipe for catalysing our centrality and bridging the chasms that separate us.
AfCFTA can solve the crippling impacts of dysfunctional supply chains that bleed our businesses and consumers. We’ve all heard of the three-week truck journeys for goods moving a mere 1000 kilometers from our ports to various cities – journeys that take 1-2 days elsewhere. In today’s interconnected global economy, trade is the lifeblood of prosperity. It facilitates economic growth, fosters innovation, and creates opportunities for nations to prosper.
Ministry Striving to Create Resilient Food Processing Ecosystem, Strengthen Industry (ENA)
Various policies and strategies that strengthen the food processing industry have been developed and efforts exerted to create a more resilient food processing ecosystem, according to Ministry of Industry. A forum on “Sustainable Business Growth and Improved Resilience in a Supportive Food Processing Ecosystem” forum was held in Addis Ababa.
Ministry of Industry representative Dugassa Dunfa said on the occasion that supporting the food processing industries in technological, business, and market systems so that they can manufacture and distribute safe and nutritious food is pivotal in tackling the country’s food security crisis. Currently, there are over 1,600 food processors, including medium and large industries, which play a vital role in safe food production, distribution, job creation, and import substitution.
Preparations gear up for the 10th Africa Regional Forum on Sustainable Development in Addis Ababa (UNECA)
The 10th Session of the Africa Regional Forum on Sustainable Development (ARFSD-10) will be held in hybrid format on 23-25 April 2024 at the headquarters of the African Union Commission (AUC) in Addis Ababa, Ethiopia. The theme of the forum is “Reinforcing the 2030 Agenda for Sustainable Development and Agenda 2063 and eradicating poverty in times of multiple crises: effective delivery of sustainable, resilient and innovative solutions.”
“ARFSD-10 is a timely opportunity to address shortcomings and capitalize on emerging opportunities to ensure robust, accelerated and timely implementation of the SDGs and Agenda 2063. In addition, participants will play a key role in mobilizing Africa’s inputs for the Summit of the Future to be held in September 2024,” he adds.
Eastern Africa Set for Digital Leap with World Bank Investment and Regional Financial Hubs (Techweez)
The African Development Bank’s 2023 East Africa Economic Outlook forecasts that growth in the region will surpass 5%. Hence, the region is positioned to enjoy strong economic performance this year, despite global economic headwinds and regional challenges. This positive outlook is a combination of a number of factors, among them, geography. East Arica, is a critical gateway to international trade, in close proximity to the Middle East, Red Sea, and Asia.
This geostrategic advantage has recently been amplified by the World Bank’s significant backing of a groundbreaking initiative to create a unified single digital market across the region. The $130 million project, dubbed the Eastern Africa Regional Digital Integration Project – II (EARDIP-SOP-2) is taking an innovation-first approach with potential for revolutionary yield.
Revolutionary payment system overhaul propels progress towards a digital economy (Capital Newspaper)
Ethiopia is taking significant strides in transforming its payment landscape by integrating a comprehensive digital payment system. This strategic shift aims at fostering a more inclusive and efficient economic growth, marking a pivotal moment in the country’s journey towards a digital economy.
Solomon Damtew, the Director of the Payment and Settlement Systems Directorate at the National Bank of Ethiopia (NBE), emphasized the critical nature of this transition. “The adoption of digital payment systems is not a luxury but a fundamental necessity,” Solomon stated, underscoring the efforts to create a conducive environment for digital transactions across Ethiopia.
In a bid to standardize financial transactions, Ethiopia has introduced a QR Code Standard. This initiative addresses the previously fragmented QR Code payments, ensuring uniformity and interoperability among different financial service providers. The standardized QR Code is designed to streamline and secure digital transactions, making it easier for businesses and consumers alike to embrace the digital payment landscape.
Digitalization a great enabler to achieve sustainable goals (Malawi Nyasa Times)
Malawi Communications Regulatory Authority, (MACRA) says Malawi as one of the land locked and least developed countries requires digitalization as its great enabler in order to achieve it’s sustainable development goals by the year 2030.
MACRA director general Daudi Suleman lamented that Malawi is currently in a situation whereby alot of people are not connected to the internet as the country is sitting at 34.6 percent of Malawians who are connected to the internet in the population of 20 million people and that 73 percent of Malawian has the potential to connect to the internet that can also help to unlock new opportunities and the economy of this country.
He was saying this at the opening of a two-day International Telecommunications Union, (ITU) regional workshop on cost models for data services and international internet connectivity where his organization is hosting.
Harmonization of policies to accelerate ICT investments in Africa (KBC)
Information, Communication and Digital Economy Cabinet Secretary for Eliud Owalo has attributed low investments in Africa’s ICT sector to outdated laws. According to Owalo, harmonization of better ICT policies in the continent are key to attracting the much needed investments to allow rapid growth in the sector. He singled out policies such as the now repealed 30pc local shareholding rule for foreign companies to invest in Kenya’s ICT sector as a hindrance to foreign direct investment.
“In Kenya, for example, we have managed to waive the 30pc local content requirements that necessitated that ICT companies must have 30pc local ownership. What is the purpose of having a law that impedes foreign direct capital investment? That is the direction that we need to go as Africa, making sure that there is foreign direct capital investment while at the same time also protecting our own local interests as Africa,” said Owalo. This comes as Kenya targets to increase increase investments to expand ICT infrastructure to support the digital economy.
How maritime trade disruptions are hurting global food security (Devex)
Northern Ethiopia currently faces a severe food shortage. A drought has stricken the region, disrupting livelihoods, crops, and livestock. High food prices, which began during the COVID-19 pandemic, have reduced everyday purchasing power. Meanwhile, armed conflict between the Ethiopian National Defense Force and militia groups is hindering the delivery of aid. The situation has compelled USAID to write that Ethiopia faces a crisis “or worse” levels of food insecurity.
But another compounding factor exists more than 1,500 miles away: Russia’s full-scale invasion of Ukraine. Prior to the war, Ethiopia imported 301,000 tons of wheat from Ukraine, according to the International Food Policy Research Institute. While Ukrainian wheat is not a majority of Ethiopia’s food source, the disruption of shipping routes on the Black Sea, coupled with other constraints, makes a fragile situation even more perilous.
“Today there are three routes that are of concern,” said Maximo Torero, chief economist of the Food and Agriculture Organization in a recent interview. “Of course, the Black Sea… the second one is the Red Sea, and the third one is the Panama [Canal].”
Enhancing Global Trade: Strategies for Sustainable Growth (Global Trade Magazine)
Global trade serves as the lifeblood of the world economy, fostering economic development, creating job opportunities, and driving innovation. By embracing technological innovations, strengthening multilateralism, fostering inclusive trade policies, promoting sustainability, investing in infrastructure, enhancing trade facilitation, facilitating trade finance accessibility, and harnessing regional integration, nations can collectively advance towards a more prosperous and sustainable global trading system.
Sustainability has to be the anchor for development in 21st century: UNGA President Dennis Francis (Deccan Herald)
UN General Assembly President Dennis Francis has said that there is no conflict between promoting sustainability and economic growth and development, underscoring that sustainability has to be the anchor for development in the 21st century. Francis will convene the UN’s first-ever ‘Sustainability Week’ April 15-19 under the theme ‘Paving the Way for a Sustainable Future’ at the world body’s headquarters here. The week will feature dedicated events focused on sustainability in critical sectors such as tourism, infrastructure connectivity, transport, energy and debt.
“The reality is that sustainability has to be the anchor for development in the 21st century. Since we are talking about prioritizing people and the planet, the sustainability dimension of things lies at the very heart of everything we are seeking to do developmentally in the UN,” Francis, President of the 78th session of the UN General Assembly, told PTI in an exclusive interview here.
“We have identified five key areas or economic sectors that we think have extraordinary potential for really transformative change.… and we know these five sectors have a great impact on sustainability. They are tourism, transportation, infrastructure, energy and debt” sustainability,” Francis said.
Decarbonisation Policies Lag in Major Economies: BloombergNEF Report (edie)
New research has revealed that the world’s 20 biggest economies have made little headway in improving their decarbonisation policies over the past year, raising concerns about whether the global Paris Agreement on climate will be achieved.
This is according to BloombergNEF’s fourth annual edition of the G20 Zero-Carbon Policy Scoreboard, ranking countries on the basis on their decarbonisation progress. Each nation was evaluated on a scale of 0 to 100%, with factors considered including the extent of government support allocated for reducing greenhouse gas (GHG) emissions, the effectiveness and strength of these initiatives and the policy implementation process. Additionally, metrics were used to assess the impact of these policies in initiating tangible changes at the grassroots level.
According to the scoreboard, the EU, the UK and the US have maintained their positions as global leaders in decarbonisation efforts. However, despite retaining the top spots, these countries have failed to significantly improve their performance from the previous year. On average, there has been a slight decline of 1% point among the top scorers.
New data shows majority of companies are overlooking plastic-related risks (Climate Action)
The data reveals, for the first time, the extent of companies’ awareness of their contribution to the plastic crisis, and presents a strong baseline for accelerating action at the fourth round of Global Plastics Treaty negotiations (INC-4) later this month, where mandatory corporate disclosure is on the table. Governments can accelerate this by including mandatory corporate disclosure on plastics in the Global Plastics Treaty being negotiated in Ottawa later this month.
Quick links
AfCFTA-focused Afro-Italian relations deepened with Italian President Mattarella’s visit to Ghana (3news)
How Vulnerable is Sub-Saharan Africa to Geoeconomic Fragmentation? (IMF)
Bridging Africa’s Trade Finance Gap: Trade and Development Bank to Speak at IAE 2024 (Energy Capital & Power)
Indian trade charm offensive targets East Africa (APAnews)
BRICS: 2 New Countries Express Interest To Join the Alliance (Watcher Guru)
This Is Going to Hurt: Weather Anomalies, Supply Chain Pressures and Inflation (IMF)
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Role of gas in SA’s future energy mix comes under intense scrutiny (Engineering News)
Given South Africa’s ongoing energy crisis, there remains much debate around whether gas should be included in the future energy mix and, if so, how much. Advocates argue that the fossil fuel is a necessity and a step up from coal – since it produces fewer carbon emissions when burned – but many still oppose its large-scale incorporation into, owing to the global shift towards clean energy technologies such as renewables, battery storage, green hydrogen and even nuclear.
Government heavily supports gas in the electricity sector and is belatedly working with industrial stakeholders to avert a “gas cliff” later in this decade, which will arise from a tapering of supply from Mozambique and Sasol diverting the balance to its own facilities as part of its own decarbonisation efforts.
South Africa builds new roadmap to revitalize entrepreneurship (UNCTAD)
South Africa has more than 2 million micro, small and medium-sized enterprises, representing over 98% of formal businesses, according to UNCTAD’s entrepreneurship strategy review for the country. Despite their sheer prevalence, these small businesses create less than a third of all formal jobs, leaving job creation highly concentrated in a few large corporations and government entities.
The survival rate of the businesses is also low, with two thirds failing within the first five years and about 20% in the first two years. Combined with a high level of youth unemployment and around 70% of entrepreneurs operating in the informal sector, South Africa’s entrepreneurial potential remains well below international trends. To boost entrepreneurship, the country’s Department of Small Business Development (DSBD) is developing a national entrepreneurship strategy to create an enabling environment for entrepreneurs, small businesses and start-ups to flourish.
Angola bets on small businesses to help transform its economy (UNCTAD)
Developing a national entrepreneurship strategy in Angola is high on the political agenda and aligned with the country’s 2050 strategy, focused on economic diversification and growth, among other priorities. It’s also part of the government’s 2023-2027 National Development Plan, which includes strengthening the business environment, fostering entrepreneurship and positioning the private sector as the main driver of economic development.
To lay the building blocks of the national entrepreneurship strategy, UNCTAD has supported the country’s National Institute of Support to Micro-, Small and Medium-Sized Enterprises (INAPEM) to design a national entrepreneurship review, with an action plan. “We want to diversify the economy and make it more competitive on the international market,” says Amadeu de Jesus Leitão Nunes, Angola’s Secretary of State for Commerce. “For this to happen, we are developing a stronger framework that will encourage entrepreneurship, drive innovation and facilitate access to funding,” he added.
Zimbabwe launches gold-backed currency to replace battered local dollar (Reuters)
Zimbabwe is replacing its collapsing local currency with a new one backed by gold and foreign currencies that it hopes will be more stable and help bring down inflation, the central bank said on Friday. The Southern African country relaunched its own currency in 2019 after a decade of dollarisation, but it struggled to win public trust and more than 80% of domestic transactions are now conducted in foreign currency. The new currency – called Zimbabwe Gold (ZiG) – will circulate alongside foreign currencies, central bank governor John Mushayavanhu told a press conference in the capital Harare.
Kenya expects three new cranes to lift Lamu Port (The East African)
The Kenya Ports Authority (KPA) is expecting delivery of three cranes this weekend to support the Lamu Port. The authority says Ethiopia and South Sudan have expressed interest in using the port. “We are set to receive the first three ship-to-shore gantry cranes this Sunday, along with a substantial consignment of bulk cargo,” said KPA Managing Director Capt William Ruto. He was speaking during the donation of Ramadan food items to members of the Muslim community in Mombasa, Kwale, and Lamu counties.
Lack of standards hindering SMEs from tapping into continental free trade area (Nile Post)
Ugandan medium- and small-sized enterprises (SMEs) have been urged to embark on quality standards and enough production to get into the African Continent Free Trade Area (AFCFTA). Entrepreneurs stand to gain by adhering to standards, it improves the quality of products and services which, in turn, facilitates market access not only in the East African Region but also on the continent
“Standards have been a barrier to AFCFTA market, it’s important for SMEs to know and maintain them as well as embarking on production to get into the AFCFTA market,” Prof Charles Kwesiga, executive director of Uganda Industrial Research Institute said. “Three things should be done as well,” Kwesiga said. “Firstly, enhancing technology use, secondly, affordable finance mechanism, and thirdly, human capital.”
China invites Uganda’s energy minister for talks on pipeline financing (Reuters)
China has invited Uganda’s energy minister to Beijing to discuss the East African country’s $5 billion crude oil pipeline, Uganda's presidency said on Friday. The development could signal a possible breakthrough in Uganda’s efforts to woo Chinese financiers to fund the pipeline, which the country requires to start crude production from oilfields that were discovered in 2006. Potential Chinese funding is being considered as pivotal after Western banks declined to fund the pipeline after pressure from environmentalists who said the project would add to global carbon emissions.
Ghana, Kenya lead Africa’s economic renaissance (Ghana News Agency)
Two of Africa’s emerging economies – Ghana and Kenya – have taken giant steps to consolidate trade relations as they seek to lead Africa’s economic renaissance. The bilateral trade cooperation, initiated at the instance of Ghana’s President Nana Addo Dankwa Akufo-Addo, is being worked out within the purview and objectives of the African Continental Free Trade Area (AfCFTA) Agreement.
“What is being done in this room today is critical for our continent and the future prosperity of our people,” the President said, as he was joined by visiting Kenyan President William Ruto to witness the signing of multiple pacts between the two countries, at a ceremony in Accra. The Memoranda of Understanding were initialed by the Ghana Investment Promotion Centre and the Kenyan Investment Authority, the Association of Ghana Industries and the Kenya Association of Manufacturers.
Reopened Nigeria-Niger border promises trade growth (DW)
Trade between Nigeria and neighboring Niger has bounced back since the West African bloc ECOWAS lifted sanctions on Niger. The Economic Community of West African States imposed the measures following the July 26, 2023, military coup that ousted Mohamed Bazoum, Niger’s democratically elected leader. The measures failed to achieve their aims, and the border closure devastated local communities on both sides of the frontier with hundreds of millions of dollars worth of trade lost.
“The relationship has spanned centuries, so immediately after the imposition of the sanctions, there were cries everywhere. Local farmers suffered greatly,” said Tukur Abdulkadir, professor of international relations at northern Nigeria’s Kaduna State University. But in recent weeks, a semblance of normality has returned to the Jibiya-Maradi border area. Businesspeople can move freely between the neighboring nations.
Before ECOWAS withdrew the sanctions, people living in border communities were cut off from all traditional trading and socio-economic activities. In 2022, data from the International Trade Centre (ITC) showed that cross-border trade between Nigeria and Niger was worth roughly $226 million ($209 million).
Niger, Mali, Burkina Faso’s withdrawal will cost ECOWAS US$1 billion, says president of ECOWAS Commission (Asaase Radio)
The president of ECOWAS Commission, Omar Touray, has warned that the withdrawal of Niger, Mali and Burkina Faso from the bloc puts ECOWAS’ investments worth nearly US$1 billion at risk. In January 2024, the three countries announced their withdrawal from the ECOWAS, citing “illegal sanctions” attracted by an unconstitutional change of government.
But Touray, speaking at the inauguration of the sixth ECOWAS Parliament held at the International Conference Centre, Abuja, on Thursday, warned that “On the economic and financial front, the withdrawal of the three states could result in default or suspension of all ECOWAS projects and programmess in these countries, worth more than US$500 million.
“It should be noted that…the ECOWAS Bank for Investment and Development currently has 27 ongoing public sector projects in the three countries valued at approximately US$321.6 million. “38% of this is in the form of investment in the public sector, while 61% is constituted by investment in the private sector.”
There’s a lot of container diversion to Lome (GhanaWeb)
A lot of containers are being diverted to Lome because Ghana’s port duties are higher, Vice President Mahamudu Bawumia has complained. At a town hall meeting with the pharmaceutical industry where he promised to enhance the business-friendliness of ports by implementing fixed exchange rates aimed at alleviating forex pressure faced by traders, the flagbearer of the governing New Patriotic Party promised that his government, should he win the December election, is “going to make sure that our duties in ports, by policy, cannot be higher than in Lome, which is our competitor.”
“And right now, there’s a lot of diversion of containers to Lome because ours are higher”, he observed. Dr Bawumia also vowed that he is “going to change the duty structure and go into more of a flat specific duty”. He explained: “If you have a 40-footer container, you know how much you are paying in cedis... So, you take the exchange rate out of the matter and deal with it”, he added. At the meeting, the President of the Pharmaceutical Society of Ghana, Dr. Kow Donkor said it was imperative their concerns were addressed to safeguard the industry.
Lomé hosts first edition of ECOWAS Investment Forum (Togo First)
The first ECOWAS Investment Forum began today, April 4th, in Lomé. The two-day event gathered over 400 key stakeholders of development, investment, and governance in West Africa. Together, they will discuss major issues the region faces. These include food security, developing sustainable infrastructure, and leveraging the green economy to tackle youth unemployment.
George Agyekum Donkor, President of the ECOWAS Bank for Investment and Development (EBID), noted that the forum aims to bolster regional cooperation and foster innovative solutions to the various bottlenecks that hamper the region’s growth. Through the forum, the EBID seeks to secure investments for large ECOWAS projects. The Lomé-based Bank has a clear goal: Bridging an investment deficit estimated at $12 billion per year, vital to support the economic development across all 15 ECOWAS member States. The EBID, it is worth noting, has disbursed $3.69 billion since the end of 2022 to support these countries.
AfCFTA to mobilize $10 billion to support SMEs (Citinewsroom)
The African Continental Free Trade Area (AfCFTA) Secretariat has announced its commitment to mobilize $10 billion to bolster the development of small and medium-scale enterprises led by youth across Africa. The AfCFTA revealed that it has already allocated $150 million to support the burgeoning businesses of young entrepreneurs in Africa. Additionally, it aims to augment its funding resources through partnerships with institutions such as the United Bank of Africa and the Africa Exim Bank.
Delivering his address at a ceremony to welcome the President of Kenya, H.E. Dr. William Ruto to the AfCFTA Secretariat, the Secretary General of AfCFTA Secretariat, Wamkele Mene emphasized the role of the secretariat in promoting youth-led businesses in Africa. “We’re signing an MOU with United Bank of Africa, where they are committed to disburse 7 billion dollars to SMEs that are led by young people. It has been reported to us that already 150 million dollars under this fund has been disbursed. We will mobilize up to 10 billion dollars to ensure in the implementation of AfCTA, young people are at the centre to benefit.”
TDB launches a $100 million facility for agricultural growth in Africa (Techpoint Africa)
Over the years, the Trade and Development Bank has financed trade, fostered sustainable growth, and promoted regional integration in Africa through trade finance, advisory services, asset management, and project and infrastructure finance. In March 2024, TDB extended a three-year $2 million term loan to MPower Ventures Zambia Limited via the Trade and Development Fund (TDF) to improve Zambian access to modern and affordable energy solutions. The BII funding will allow it to provide additional financial assistance to local businesses and financial institutions operating in key African markets.
Andrew Mitchell, UK Minister of State for Development and Africa, stated that this investment reflects the UK Government’s commitment to boosting economic and agricultural growth in Africa, and that it will lower trade barriers, assist businesses in accessing resources, expanding, and addressing food security concerns.
Africa’s trade volume to shrink, higher inflation rate seen on Red Sea attacks (Businessday Nigeria)
Africa’s trade volume is projected to shrink in the first half of 2024 as Iran-backed militants continue to disrupt trade flows on the Red Sea route – the world’s main trade route to most container ships, a new report says. The report compiled by Afreximbank on the implication of the Red Sea attacks on African trade and macroeconomic stability also said that African countries face the risk of accelerating inflation following the attacks on ships using the vital trade route.
“The ongoing attacks in the Red Sea have produced distortions to African trade and may have deeper implications for the region’s macroeconomic stability in the short to medium term,” the report said. “On African trade, the crisis has given rise to a reallocation of resources among countries on the continent, depending on what side of the pendulum they sit,” it added. According to the report, the disruption in the worldwide supply chain, coupled with rising prices for food and energy, might compel local manufacturers to divest from the region if production costs exceed those of their rivals in other continents.
In the face of poorly regulated Ukrainian sugar imports, Africa, Caribbean, Pacific (ACP) and Least Developed Countries (LDCs) sugar suppliers demanded policy coherence for development from the EU and UK authorities and an end to preference erosion. The agreement of the European Council presidency and of the European Parliament of 20 March 2024 – likely to be ratified by the European Union in the next few days – to permit up to ≈ 459,320 tonnes of sugar from Ukraine, duty free and inadequately regulated, into the European Union sugar markets in 2024 and until 5 June 2025 will – as the trade data shows has already happened from June 2022 to date – displace an equivalent quantity of preferential sugar exports to the EU originating in ACP and LDCs.
The ACP-LDC Sugar Industries Group, representing the ACP and LDC sugar industries supplying the EU and UK markets, has therefore requested the EU authorities to support the transit of Ukraine’s sugar exports through the EU to its traditional markets in north Africa and the Mediterranean, supported by subsidies as may be required. They urged to limit Ukrainian sugar imports into the EU in accordance with the EU’s international commitments, particularly to developing country sugar sectors. Such limitation could be achieved by taking a benchmark average of Ukrainian imports in 2021, 2022 and 2023. And Ukrainian sugar trade to and through the EU must be carefully monitored via a suitable licensing system with safeguards being swiftly applied.
Opportunity To Enhance U.S.-East African Trade Relations (Africa.com)
Like the rest of the world, African economies are today faced with economic headwinds. This has elevated the need to enhance trade and investment with key partners, such as the U.S., as long-term partner for the continent to weather such crises, catalyze economic growth and safeguard livelihoods.
According to the United Nations’ World Economic Situation and Prospects report, economic growth in Africa weakened to 3.3 percent in 2023. This was attributed to the global economic slowdown, subdued investment and falling exports. However, there is great optimism over the East African region’s prospects. The African Development Bank projects that the region’s growth will stand at 5.1 per cent in 2024 and 5.7 per cent in 2025, ahead of the rest of the continent. A significant proportion of this is expected to be driven by trade and investment activity, hence the need to optimize flows as an antidote to the current slump but also a pathway for long-term sustainable and inclusive growth.
US manufacturing subsidies for Africa could help revive AGOA (African Business)
The US should pay ‘negative tariffs’ in Africa – essentially targeted manufacturing subsidies – to help revive its faltering African Growth and Opportunity Act (AGOA), according to a new report from the Washington-based Center for Global Development (CGD). CGD’s Justin Sandefur and Arvind Subramanian estimate that $291m in negative tariffs – which they describe as “a drop in the bucket compared to aid levels” could create $1.5bn in new trade and would fit with US “friend-shoring” efforts – the act of manufacturing and sourcing from countries that are geopolitical allies.
Despite an initial “fast and furious” impact within five year’s of AGOA’s passage – in which African garment exports to the US grew by 150% and new factories were opened in Kenya, Lesotho, and Mauritius – the benefits of the AGOA soon fizzled out. By 2010, garments exports were almost back at their 2000 level, the result, the authors say, of Chinese competition flooding the market when “arcane” global textile treaties expired in 2005. The authors say that their proposal for negative tariffs could kickstart the flagging scheme.
See Renewing AGOA “As Is” Won’t Do Much for Africa’s Exports. Here’s What Could (Center For Global Development)
Regional analysis of Liner Shipping Connectivity: What does the revised LSCI reveal? (UNCTAD)
Measuring trends in maritime markets is a dynamic process, as markets change over time. Regarding liner shipping trends, UNCTAD revised its well-established Liner Shipping Connectivity Index (LSCI) in mid-March 2024, adjusting the impact of vessel size on the final index measurements.
Compared with five years ago (2019), the scale of increase in four of the five best-connected countries in sub-Saharan Africa has been impressive. The five best-connected countries in sub-Saharan Africa are South Africa (49th best-connected in the world), Ghana (52nd), Nigeria (which in the last year emerged from the 62nd best-connected country worldwide to 54th), Côte d’Ivoire (55th) and Togo (56th). Liberia, Comoros, Mayotte, Sierra Leone, and Guinea top the percentage growth list, followed by Nigeria and Eritrea. Conversely, the LSCI was lower in 12 Sub-Saharan African countries. Major declines were observed in Djibouti, Gambia, and Namibia.
See also International Conference on Maritime Transport Challenges, Governance and Innovation in Ports
Room for rules-based global trade remains, but WTO showing signs of geopolitical tension (Engineering News)
Over the past five years, geopolitics has cast a shadow over how the world trade system functions, leading to a state of inertia within the World Trade Organisation (WTO) and its dispute resolution mechanisms. The global trade rulebook was outdated and new challenges needed to be addressed, said German Institute of Development and Sustainability deputy director Dr Axel Berger, including digitalisation, environmental, pollution and climate change issues. The multilateral approach was no longer fit for purpose for all issues.
"However, there are also high points, with many ascensions to the WTO, which is an indicator that countries still see value in the WTO. About four-fifths of global trade is through the WTO system, and it has had some notable achievements in agreements on trade facilitation in the recent past," South Africa’s ambassador to the WTO Dr Mzukisi Qobo added.
Quick links
BRICS as a platform for economic sustainability
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TPT outlines actions to support 15% growth in citrus exports during 2024 season (Engineering News)
Transnet Port Terminals (TPT) reports that it has recruited 200 additional cargo coordinators and has set up dedicated lanes for refrigerated containers at all KwaZulu-Natal container terminals in preparation for the citrus fruit export season, which begins this month.
Congestion at the country’s ports has been a drag on the sector’s export performance in recent years, with the Citrus Growers’ Association of Southern Africa (CGA) indicating that the 165.1-million 15-kg cartons packed for delivery to global markets in 2023 was below expectations, despite being 800 000 cartons up on the previous year.
Given prospects of a good harvest, TPT is preparing for an overall 15% increase in export volumes this year, with the CGA having already forecast increases for the export of lemons, Navel oranges, Valencia oranges, grapefruits, satsuma, Clementines and Novas.
Uganda to launch first domestic tin processing plant next month (The East African)
Uganda will commission its first tin refining plant in the southwestern region next month, a senior Mining Ministry official said, as part of efforts to expand capacity and add value domestically to its minerals.
President Yoweri Museveni wants to maximise the benefits of exports to the country, where several gold refineries are operating, and Chinese-backed Sunbird Resources was recently licensed to mine limestone for cement production.
“We are preparing to launch our very first tin processing facility,” Irene Bateebe, permanent secretary of Energy and Mineral Development Ministry, told Reuters on Wednesday, adding the launch would take place next month.
President Bassirou Diomaye Faye announces oil, gas and mining sector audit (The East African)
Senegal will conduct an audit of the oil, gas and mining sectors, newly elected President Bassirou Diomaye Faye told the nation in a televised speech on Wednesday, while also reassuring investors they were welcome in the country.
The audit is one of the first policy moves announced since the 44-year-old former tax inspector’s inauguration on Tuesday. “The exploitation of our natural resources, which according to the constitution belong to the people, will receive particular attention from my government,” he said. “I will proceed with the disclosure of the effective ownership of extractive companies (and) with an audit of the mining, oil, and gas sector.”
Kenya High Court suspends $350 fee charge for South Sudan cargo (The East African)
Kenya’s High Court has temporarily suspended the implementation of a $350 (Ksh45,850) levy that was being charged per container for all goods destined for South Sudan. Justice Gregory Mutai who certified the case as urgent issued the order pending the hearing of an application by clearing agents under the umbrella of Kenya International Freight and Warehousing Association (Kifwa) who are challenging the levy.
Kifwa claims that the Mombasa Monitoring Station-National Revenue Authority of South Sudan issued a directive that they should pay the money to a private company in Uganda, Invesco Uganda Limited, for a tracking system christened mandatory Electronic Cargo Tracking Note (ECTN).
Tanzania’s first fishing harbor to be completed in 2025 (CGTN Africa)
The construction of Tanzania’s first-ever fishing harbor will be completed in 2025, boosting the country’s fish catches in deep seas, Prime Minister Kassim Majaliwa told parliament on Wednesday. According to Majaliwa, the project, being built by China Harbor Engineering Company Ltd (CHEC), is 42 percent completed. The Tanzania Ports Authority says the fishing harbor has helped create jobs for more than 400 nearby residents.
Tang Zhen, deputy head of the Eastern Africa Division of the company, said CHEC will spare no efforts to help Tanzania build its first-ever fishing harbor, and continuously enhance friendship and cooperation between China and Tanzania.
Angola: Entrepreneurship Policy Review (UNCTAD)
In 2022, Angola was the eighth economy in Africa with a GDP of USD 107 billion.1 It is a least developed country that is slated for graduation in 2024, with an economy that is characterized by high dependence on extractive sectors of oil and gas. Its economic performance has been closely linked to global oil demand and prices which varied greatly over the years, putting an important strain on the country’s social-economic development.
While there are several characteristics that make Angola’s entrepreneurial ecosystem a stimulating environment for the entrepreneurial activity, there are still certain obstacles preventing the country to unlock its full entrepreneurial potential. It is therefore key for Angola to develop a national entrepreneurship strategy with a long-term vision, easily accessible online, that gives a perspective and allows entrepreneurs to plan and project their businesses into the future.
FG assembles 120 researchers, startups to develop framework for AI adoption in Nigeria (Nairametrics)
The Federal Government has announced plans to bring together 120 Nigerian researchers and startups including other stakeholders in the Artificial Intelligence (AI) space to develop a co-created framework for AI adoption in the country. The Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, announced this on Wednesday. According to the Minister, the experts would come up with this framework at the National Artificial Intelligence Strategy Workshop scheduled to be held from April 15th to 18th, 2024 in Abuja. Tijani said the resulting strategy from the session would help the government to deliver the priorities and implementation approach towards improving lives and growing the nation’s economy through the application of AI.
In December last year, the Minister announced that the Ministry in its bid to make Nigeria a global leader in Artificial Intelligence, had identified over 6,000 AI researchers who are of Nigerian descent and based in several parts of the world. According to him, these researchers will be instrumental to the country’s new drive to deploy AI in every sector of the economy and for job creation. He added that the goal of the Ministry is to use AI to enhance productivity through the deployment of smart infrastructure.
AfDB Affirms Nigeria’s Debt Sustainability, Calls for Enhanced Revenue Generation (Arise News)
The Chief Economist and Vice President for Economic Governance & Knowledge Management at the African Development Bank (AfDB) Prof. Kevin Chika Urama, has reaffirmed Nigeria’s debt was sustainable. He also praised the federal government’s efforts in revenue generation while calling for further action.
However, he emphasised the importance of addressing the debt-to-revenue ratio to ensure fiscal stability and forward momentum. Furthermore, he noted the need for Nigeria to tap into global green financing opportunities, saying access to green financing in Africa remains relatively low, with only a fraction of available global green bonds being accessed by African countries.
Urama said: “Nigeria’s debt-to-GDP ratio is still sustainable. But the issue with Nigeria is with regards to debt-to-revenue ratio, and that is why the government of the country is driving and doing quite a lot to improve revenue mobilisation in the country and by increasing the revenue mobilisation then they will be able to rebalance that ratio and be able to move forward.
Ethiopia and Brazil exchanged experiences in the agricultural sector (Prensa Latina)
The Ethiopian delegation actively participated in the observation of the methodologies used to overcome the challenges of production and productivity within the Brazilian agricultural sector with remarkable advances through the use of various technological solutions. The delegation has learned that the government of Brasilia not only managed to ensure food security for its people, but also to enable substantial economic transformations through the export of agricultural products, the publication highlighted.
Seychelles: 2024 Article IV (IMF)
“Following a post-pandemic surge in economic activity in 2022, real GDP growth slowed to an estimated 3.2 percent in 2023, despite a continued increase in tourism activity, with visitor arrivals reaching a level equivalent to over 91 percent of the pre-pandemic high and tourism earnings continuing to rise. Real GDP growth is expected to reach about 3.7 percent in 2024 on the back of a continued increase in visitor arrivals together with buoyant activity in IT, construction, and the financial sector. This outlook incorporates some drag on activity linked to the impact of the December 2023 flooding and explosion at Providence Industrial Estates.
“The external current account deficit is estimated to have widened slightly to around 7.2 percent of GDP in 2023, partly reflecting higher imports related to foreign direct investment (FDI). The Central Bank of Seychelles (CBS) overperformed modestly with respect to targets for foreign exchange reserves accumulation under the EFF program. Gross reserves stood at about $682 million at end-2023, equivalent to about 3.2 months of import cover.
East African Grain Council, TradeMark Africa partner to boost staple foods value chains in East Africa (The Citizen)
The Eastern Africa Grain Council (EAGC) and Trademark Africa (TMA) have jointly launched a three-year initiative dubbed “Strengthening Competitiveness in Export-Focused Staple Food Value Chains across East Africa.” This initiative, part of the USAID-funded “Economic Recovery and Resilience Activities (ERRA)” program, was inaugurated on April 3rd in Nairobi. The project targets the enhancement of export-oriented staple grains trade and will be rolled out in Kenya, Tanzania, and Uganda.
Amidst the backdrop of volatility and decline in the food commodities trade, the project will address various challenges including inadequate aggregation, informal trading practices, and insufficient integration of farmers into formal trade channels. Issues such as deficient storage facilities, subpar quality management infrastructure, and a lack of post-harvest handling expertise compound the situation.
Logistic hurdles such as inefficiencies in road transport and cross-border processing delays, alongside lax regulatory enforcement, further exacerbate these challenges. With the participation of over sixty stakeholders from the staple grains value chain, the project aims to achieve multiple objectives. Foremost among them is the strengthening of farmer-operated grain business hubs (G-Hubs), leveraging technology to optimize grain production, quality, and trade.
President Ruto urges African investors to take advantage of AfCFTA (Capital Business)
President William Ruto has appealed to African investors and businesspeople to take advantage of the Africa Continental Free Trade Area (AfCFTA) agreement. He pointed out that the AfCFTA eliminates barriers to trade, fosters economic growth and promotes opportunities to share wealth and prosperity in Africa. “AfCFTA is the single most potent instrument for the transformation of Africa,” the President said.
President Ruto made the remarks during the Kenya-Ghana Business Forum in Accra, Ghana, on Wednesday. Later, President Ruto visited the Africa Continental Free Trade Area Secretariat at Africa Trade House in Accra, Ghana.
The President asked African entrepreneurs to invest in the continent and unlock the vast untapped resources available in Africa.
“We must use the raw materials we have to grow industry, invest in agro-processing and seek market diversification,” he said.
“Technology democratises opportunities and eliminates corruption leading to better accountability,” he said.At the same time, President Ruto called for reforms of the African Union, saying the AU is an institution that requires better accountability.
Leverage on technology to accelerate the movement of goods and services (GhanaWeb)
President of Kenya, Dr William Samoei Ruto, has entreated businesses to leverage on technology to accelerate the movement of goods and services on the continent. Speaking with the business community during his visit to Ghana at the Africa Trade House in Accra on Wednesday, April 3, 2024, Dr Ruto noted that the move, when adhered to, will accelerate the progress of intra-Africa trade.
We’ll make the African Union fit for purpose (The Star)
“It is our intention as heads of State to make sure that we reform the African Union to make it fit for purpose. As we talk today, we have a fairly dysfunctional set-up,” Ruto said. He said the African Union Executive lacks an accountability mechanism. Ruto added that the AU parliament has been made impotent. ”If we want to have an African Union that works for the people of our continent, it must be accountable, and there must be a mechanism to adjudicate on matters that affect our organisation,” he said.
AfDB earmarks 150 million dollars in a financial facility for intra-continent trade (FASI.eu)
This agreement aims to enhance intra-Africa trade, foster regional integration, and help narrow the trade finance gap in Africa, aligning with the objectives of the African Continental Free Trade Area (AfCFTA).
The African Development Bank will extend guarantee coverage ranging from 50% to 75% for transactions in low-income countries and transition states, on a risk-sharing basis with TDB, to several eligible local and regional banks operating within the Common Market for Eastern and Southern Africa (COMESA) region, particularly those engaged in trade finance activities. This initiative is anticipated to facilitate approximately 1.8 billion dollars worth of trade over the ensuing three years.
Global Architectural Reform to top agenda of the African Development Bank’s 2024 Annual Meetings (AfDB)
As the African Development Bank turns 60 this year, the institution will reflect anew at its upcoming Annual Meetings, on the ongoing economic challenges facing its member countries and the participation of African countries in the global financial system.
Prof. Vincent Nmehielle, the Group’s Secretary-General and Kevin Urama, Chief Economist and Vice President for Economic Governance & Knowledge Management, addressed journalists on Wednesday 03 April, during a press conference ahead of its Annual Meetings, scheduled from 27 to 31 May 2024 in Nairobi, Kenya. The 2024 meetings will be held under the theme: “Africa’s Transformation, the African Development Bank Group, and the Reform of the Global Financial Architecture”.
Kevin Urama, Chief Economist and Vice President for Economic Governance & Knowledge Management, said the Presidential Dialogue would bring heads of state and governors together to take stock of measures and reforms:
”In all our research we have found that financing has been a major constraint of accelerated transformation on the continent,” Urama said.
Afreximbank takes financing roadshow to Liberia as it seeks to boost trade & Investment (Afreximbank)
African Export-Import Bank (Afreximbank) has concluded a three-day roadshow in Liberia in collaboration with the Ministry of Commerce and Industry of Liberia, Oakwood Green Africa, Loita Capital Partners International and Havit Inc., aimed at bolstering Liberia’s efforts to grow trade. This follows a prior edition of the roadshow held in 2023.
Afreximbank’s Anglophone West Africa Regional Chief Operating Officer, Eric Monchu Intong led a high-powered delegation to meet with the newly elected President, H.E. Joseph Boakai and other government officials to understand the country’s vision and how the Bank can support through promoting, facilitating and financing intra and extra-African trade. The roadshow is themed ‘Advancing Economic Development in Liberia through Trade’.
Tailoring success: The custom fit of export finance in Africa (Trade Finance Global)
Export credit agencies and financial institutions can collaborate to offer favourable financing terms for technology-focused exports, making it more accessible for African businesses to adopt and implement innovative technologies. However, to support increased intra-African trade and provide easier accessibility, the continent needs capital investment in infrastructure – such as roads, railways, and bridges – and in technology.
COMESA Special Reports:
Why large dependence on foreign aid yet only small detectable growth effects
AI and Big Data Implication for Central Banking in COMESA region
Top African oil official joins energy conference, pushing for sustainable development (African Press Agency)
Ibrahim will address investors, energy companies, and African nations at AEW, promoting investment in African oil and gas resources while advocating for their sustainable development. APPO, a group of 18 African oil-producing countries, has a long history of supporting responsible oil and gas exploration and production. The organization sees this sector as a key driver of economic growth and energy security for Africa. APPO recently published a study on the future of the African oil and gas industry in light of the global shift towards renewable energy. The study identified challenges in financing, technology, and markets.
In response, APPO partnered with Afreximbank to establish the Africa Energy Bank (AEB). This new bank, expected to begin operations in July 2024, will provide much-needed financing for African oil and gas projects, reducing reliance on foreign investment.
China’s cyberspace regulator vows to work with Africa on AI governance (South China Morning Post)
China is in intense competition with the United States to dominate AI, an industry that is still in the early stages of developing regulations and governance institutions. In late March, the United Nations General Assembly adopted its first resolution regulating AI to “[steer] the use of artificial intelligence towards global good”.
The UN said the non-binding resolution, proposed by the United States and co-sponsored by China, aimed to promote “‘safe, secure and trustworthy’ AI systems that will also benefit sustainable development for all”.
Beijing laid out its position and proposals in its Global AI Governance Initiative in October. It aims to ensure that AI is a force for good and that the technology remains under human control, while adhering to fairness during data collection, algorithm design, development and application. According to an analysis published by American think tank Brookings Institution last month, only seven African nations have drafted national AI strategies so far, while no country on the continent has implemented formal regulation of artificial intelligence.
While regulating AI might not be a priority for many nations on the continent, “African governments must first work toward reinforcing data regulation along with building the human capital necessary to sustain AI ecosystems”, the report said.
China-Africa Economic Bulletin, 2024 Edition (Boston University Global Development Policy Center)
African countries have and are shaping development goals in alignment with the United Nations 2030 Sustainable Development Goals (SDGs) and the African Union Agenda 2063. Potential sources of financing for energy and transition materials have become increasingly important for devising strategies that will allow Africa to achieve these goals.
A new report published by the Boston University Global Development Policy Center and the African Economic Research Consortium analyzes China-Africa trade, finance and FDI from 2000-2022 to evaluate trends, reveal gaps and identify pathways for China to support Africa’s energy access and transition amidst economic challenges and energy opportunities.
The authors find that Chinese financiers, investors, companies and trade facilitators have engaged in two tracks of economic engagement for energy and transition materials: An electrification track, comprising general support for electrification infrastructure (power plants and transmission and distribution lines); An extraction track, comprising a pipeline of the exploration, extraction and export of primary energy commodities and transition materials to China. Main findings – Trade: Africa-China trade (imports and exports of goods) has grown significantly from $11.67 billion in 2000 to a peak of $257.67 billion in total trade in 2022, as China has become many African countries’ lead trading partner, surpassing the United Kingdom and the United States.
Why the G-20 ‘Common Framework’ for Debt Relief Isn’t Helping Poor Nations (Bloomberg)
More than half of the world’s low-income countries are at high risk of debt distress or are already in it, and several have defaulted. But despite the world’s 20 largest economies having agreed in 2020 to a plan called the Common Framework to smooth the process of restructuring loans that governments could no longer afford to service or repay, progress toward actually providing relief has been slow.
Delays have partly stemmed from disagreements between the rich countries that have traditionally guided sovereign debt restructurings and China, which is now a major international creditor. A deal struck in late March by Zambia on $3 billion in eurobonds after three years of talks showed signs of progress — and how difficult the process has been.
BRICS Push Currency Swap With 29 Countries Worth $550 Billion (Watcher Guru)
BRICS member China is looking to promote local currency swaps with 29 developing countries worth 4 trillion Yuan, which is equivalent to $553.49 billion. The bilateral currency swaps could facilitate trade and investment options by adding a safety net for all local currencies. For the uninitiated, currency swaps between Central Banks are finance agreements in which one country can exchange its own currency for another. This helps Central Banks save costs in exchange rate risks and keep the option of using their local currencies always open.
The US dollar will play no role in the swaps as local currencies will remain the centerpiece of all transactions. In other words, Central Banks can trade billions worth in exchanges making their local currencies remain ‘always trading’ in the market. Among the 29 countries, China is also considering to include all BRICS nations in the currency swap agreement.
Related: BRICS and the new currency (PressTV)
Global shift towards green energy: Pathway to sustainable future (Azernews.Az)
In the wake of mounting environmental concerns and escalating energy demands, the world is witnessing a transformative transition towards embracing green energy solutions.
Green energy, encompassing renewable sources such as wind, solar, hydroelectric, and biomass, holds the promise of minimizing carbon emissions, combating environmental pollution, and mitigating the adverse impacts of climate change. With the imperative to limit global warming and its cascading effects, the development of green energy technologies has become paramount, offering a sustainable alternative to traditional fossil fuels.
Women, International Trade, and the Law: Breaking Barriers for Gender Equality in Export-Related Activities (World Bank)
Women are a powerful engine for international trade and economic growth. As workers, small-scale traders, entrepreneurs, and producers, their engagement in export activities has the potential not only to elevate overall productivity and competitiveness in the international market but also to reduce poverty. However, women encounter multiple obstacles and legal barriers when participating in trade, hindering the full realization of economic gains that can be achieved through trade liberalization.
This Brief analyzes women’s participation in international trade and impediments to gender equality in national laws measured in the Women, Business and the Law index. Specifically, in 2024, 504 legal provisions across 145 economies are identified as creating unequal conditions between men and women to take part in international trade. Drawing from examples around the world, the Brief further discusses the role of trade instruments, especially preferential trade agreements, in eliminating legal barriers that discriminate against women, and enhancing their involvement in export-related activities to reap the benefits of trade on global welfare.
Quick links
Adesewa Olofinko: Why Africa Needs to Embrace the AfCFTA (BellaNaija)
10 least developed African countries and their passport access (Businessday Nigeria)
The cocoa price has doubled in mere months, but it shouldn’t add much to the price of chocolate: here’s why (The Conversation)
DDG Hill: Empowering women through global trade (Trade Finance Global)
Air Cargo Demand Maintains Double-Digit Growth in February (IATA)
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BLSA calls for immediate reworking of IRP, describing assumptions as ‘spurious’ (Engineering News)
Business Leadership South Africa (BLSA), whose members include the largest domestic and foreign companies operating in South Africa, has added its voice to a growing chorus of opposition to the draft Integrated Resource Plan 2023 (IRP 2023) and has called for it to be “revised immediately”.
Writing in her weekly newsletter, CEO Busisiwe Mavuso said no good case had been built for the assumptions in the IRP 2023 and warned that the document was “tainting” the positive news associated with reduced levels of loadshedding, which she attributed to the Energy Action Plan and the collaboration between government and business.
“The first, overarching problem, is that it goes against the least-cost principle and presents some spurious costing estimates that appear to elevate the price of renewable energy and underestimate the cost of fossil fuels. “Then it slashes the amount of renewable energy – still easily the cheapest form of new energy generation – to be installed between 2024 and 2030 via public procurement from 15.2 GW in IRP 2019 to 8 GW in IRP 2023.
The document’s misalignment with domestic climate policy is also highlighted, along with the threat posed to business by the imminent implementation of carbon taxes.
New platinum-based hydrogen fuel cell as cheap to make as conventional car engine (Engineering News)
The brand-new platinum-catalysed hydrogen fuel cell system that has just been released for passenger cars reveals that fuel cells can be as cheap to manufacture as internal combustion engines (ICEs), UK company Intelligent Energy has highlighted in a release to Mining Weekly.
The company’s patented system has been designed to give passenger car manufacturers direct access to the smaller, more powerful, turnkey and commercially viable hydrogen fuel cell solution that is needed to make zero carbon emission mobility a reality in the passenger car market across the entire planet.
The hydrogen fuel cell developer and manufacturer has also confirmed that its innovative IE-DRIVE™ is a proton exchange membrane (PEM) fuel cell. PEM and platinum go hand-in-glove.
Farmers welcome incentive prices, recommend timely payments (The Herald)
Farmers have welcomed the recently announced wheat and maize incentive prices and called for the timely disbursement of payments so that they effectively implement crop rotation schedules for increased production. Maize-wheat-maize and soya bean-wheat-soya bean are the most common rotations practiced by farmers where income from one enterprise purchases inputs for the other.
Government recently announced an incentive planning price of US$440 per tonne for wheat and US$360 for maize and sorghum and assured farmers of timeous payments for their deliveries, as the Second Republic steps up efforts to bridge the El Nino-induced food deficits.
Relief for Kenyan economy as inflation falls (The Herald)
Kenya’s economy continues to experience some relief as its inflation fell in March. In February, the country’s inflation hit a 23-month low of 6,3 percent. Its inflation has fallen further from the figure recorded in February to 5,7 percent year-on-year in March. This inflation drop is the second in two months, as gasoline price is set to drop.
A report posted by the Kenyan Bureau of Statistics stated “The overall year-on-year inflation rate as measured by the Consumer Price Index (CPI) was 5,7 percent, in March 2024. This means that in March 2024, the general price level was 5,7 percent higher than that in March 2023.”
It also added; “This was mainly driven by increases in prices of commodities under Transport (9,7 percent); Housing, Water, Electricity, Gas, and other fuels (8,0 percent); and Food and Non-Alcoholic Beverages (5,8 percent) between March 2023 and March 2024.” This is also similar to last month when a drop in the cost of essential foods relieved strain on most low-income households.
Nigeria records N55.2bn trade imbalance with UK (Daily Trust)
The United Kingdom in December 2023 exported £185 million to Nigeria and imported £154 million, resulting in a negative trade balance of £30.8 million (N55.2bn), the federal government has disclosed. Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite, said the federal government is committed to changing the trend in favour of Nigeria. She spoke at the Murtala Muhammed International Airport (MMIA) in Lagos at the weekend during a ceremony marking the inaugural flight of Air Peace to London-Gatwick.
SADC Ministers of Labour called to promote decent work in the region (Namibia Economist)
The SADC Ministers of Employment and Labour and Social Partners called on intensified action to promote decent work in the region at their annual meeting which took place in Lubango, Angola from 27 to 28 March. The meeting was attended by 13 member states including Namibia, representatives from the SADC Private Sector Forum(SPSF), Southern Africa Trade Union Coordination Council (SATUCC), representatives of the International Labour Organisation (ILO), and International Organisation for Migration (IOM)
At the meeting Minister of Public Administration, Labour and Social Security of Angola, Hon. Teresa Rodrigues Dias, in her opening implored member states to intensify efforts to enhance access to employment and promote sustainable enterprises and productivity. She also added that member states needed to strengthen labour market governance, increase access to social security and enhance tripartism and social dialogue among others.
‘SADC ready for green hydrogen production’ (The Namibian)
Namibia’s green hydrogen commissioner, James Mnuype, says Namibia has appointed executive professionals to attend to financial and legal matters for the production of green hydrogen in Namibia. He said this during a panel discussion on how prepared the Southern African Development Community (SADC) region is for green hydrogen production at the two-day Green Hydrogen Symposium held in Windhoek last week.
Mnyupe said professionals, led by him, will also look into environmental and technical matters for the production of green hydrogen in Namibia. The team, he said, will work with various ministries to ensure that the green hydrogen strategy for Namibia is operationalised.
AfCFTA Implementation Strategies (UNECA)
This Synthesis Report on AfCFTA implementation strategies forms part of the background documentation for the Peer Learning Conference on AfCFTA implementation strategies, held on 15 to 17 January 2024 in Nairobi, Kenya. The report is intended to provide a snapshot of AfCFTA implementation strategies in the continent and serve as a background document to inform discussions among the participants. To this end, the report provides highlights of adopted strategies focusing on their core elements, the process by which they were developed and adopted, and national experiences to date in the implementation of these strategies.
Chinas’ BRI Project: The AfCFTA Greatest Nightmare (Modern Diplomacy)
The Belt and Road Initiative (BRI), is China’s proposal to build a Silk Road Economic Belt and 21st century Maritime Silk Road in cooperation with related countries to improve connectivity and cooperation on a transcontinental scale. It has been described as one of the ambitious foreign policy initiatives of the Chinese government and aims to strengthen Beijing’s economic leadership through international trade and infrastructure programs with countries in Asia, Oceania, Europe, and Africa.
Macroeconomic Developments and Prospects For Low-Income Countries-2024 (IMF)
The outlook for Low-Income Countries (LICs) is gradually improving, but they face persistent macroeconomic vulnerabilities, including liquidity challenges due to high debt service. There is significant heterogeneity among LICs: the poorest and most fragile countries have faced deep scarring from the pandemic, while those with diversified economies and Frontier Markets are faring better. Achieving inclusive growth and building resilience are essential for LICs to converge with more advanced economies and meet the Sustainable Development Goals (SDGs). Building resilience will also be critical in the context of a more shock-prone world. This requires both decisive domestic actions, including expanding and better targeting Social Safety Nets (SSNs), and substantial external support, including adequate financing, policy advice, capacity development and, where needed, debt relief. The Fund is further stepping up its support through targeted policy advice, capacity building, and financing.
See IMF Executive Board Discusses Macroeconomic Developments and Prospects in Low-Income Countries
EAC Secretariat set to conduct High-Level Border Sensitization Mission (EAC)
The East African Community (EAC) Secretariat is set to conduct a high-level sensitization mission at selected borders within the region aimed at reviewing the performance of the various One-Stop Border Posts (OSBPs). Scheduled to commence on 9th April, 2024, the mission underscores the EAC’s commitment to fostering cooperation, enhancing trade facilitation, and improving cross-border procedures.
The primary objective of the mission is to follow up on the performance of OSBPs, identify areas for improvement, and assess the implementation of agreed action plans. Through engagement with various stakeholders including Officers in Charge of the OSBPs; customs, immigration, standards, and port health officers; as well as representatives of other border agencies, cross-border traders, and local government authorities, the EAC Secretariat aims to address challenges and streamline processes at these critical facilities.
Policy space for industrialization key determinant html (Modern Ghana)
The Minister for Trade and Industry, K.T. Hammond, has called for policy space to facilitate Africa’s industrialization agenda. In a meeting with Ms. Rebecca Grynspan, Secretary-General of the United Nations Conference on Trade and Development (UNCTAD) in Geneva as part of a working visit, K.T. Hammond emphasized the importance of securing requisite flexibilities in trade rules with a view to ensuring that Africa benefits fully from the multilateral trading system.
K.T. Hammond articulated the view that for Africa to benefit fully from the multilateral trading system, the Continent has to be in a position to attract a significant amount of trade-related investment that would enable it to take advantage of global value chains. Accordingly, he underscored the importance of obtaining flexibility in multilateral trade rules that could spur Africa’s industrialization agenda and facilitate development on the Continent.
The Minister was of the view that the African Continental Free Trade Area (AfCFTA) provides the continent with a good starting point by removing trade-related bottlenecks and ensuring that export volumes and values are increased on the continent.
Apparel, textiles sectors each see 10+% drop in trade in 2023: UNCTAD (Fibre2Fashion)
Global trade declined in most sectors last year, except for pharmaceuticals, transportation equipment and road vehicles, the UN Conference on Trade and Development (UNCTAD) said in a recent report. Among the sectors where the value of trade declined by more than 10 per cent last year are apparel, textiles and chemicals.
With a marked shift in global trade along geopolitical lines and a major supply chain reset following the COVID-19 pandemic and the Russia-Ukraine war, India’s trade reliance on China and the European Union (EU) has risen by an estimated 1.2 per cent, the report showed. This occurred despite India’s efforts to cut reliance on China through the production-linked incentive scheme and quality control orders to check the entry of cheap Chinese items.
Global trade fell in most sectors in 2023, and apparel and textiles were among the sectors where the trade value dropped by over 10 per cent, a recent UNCTAD report said.
Boost for biodiversity and sustainable development in eastern and southern Africa (TimesLIVE)
In a landmark moment for environmental stewardship and sustainable development, a beacon of hope emerges on the African continent. The unveiling of the Regional Centre of Excellence (RCoE) for Biodiversity, Forests and Seascape Ecosystems Management at the Regional Centre for Mapping of Resources for Development (RCMRD) in Nairobi, Kenya, marks a pivotal juncture in the preservation of the planet’s natural heritage.
At the heart of this initiative lies a shared commitment to safeguarding the rich tapestry of life that thrives within these ecosystems. From the towering canopies of ancient forests to vibrant coral reefs teeming with marine life, each facet of biodiversity holds invaluable ecological, economic and cultural significance. Yet, in the face of escalating threats such as habitat loss, climate change and unsustainable exploitation, the need for action has never been more pressing.
The African Union Commission (AUC), in collaboration with the Government of the Republic of Kenya, organised the 14th Meeting of the African Task Force on Food and Nutrition Development (ATFFND) and the Regional Economic Communities’ (RECs) Consultation in Mombasa, Kenya from 2 to 5 April 2024 under the theme, “Collaborating for Effective Implementation of the African Union Nutrition Policies and Strategies.”
During the meeting, ATFFND will review the implementation of the Africa Regional Nutrition Strategy (2016-2025). The meeting will also provide a unique opportunity to explore, discuss, and formulate collaborative measures to integrate education and nutrition strategies and ultimately foster sustainable development in Africa. The meeting agenda aims to encapsulate the interlinked challenges of food security, nutrition, and educational development, aligning with the task force’s overarching mission to guide the continent toward comprehensive and sustainable progress.
Red Sea attack: African countries to face higher inflation and sustained MPR tightening (Nairametrics)
African countries are expected to see higher inflation levels in 2024 and sustained interest rate tightening owing to the disruption in global trade as a result of attacks on shipping lines by Houthi Rebels in the Red Sea. This is contained in a report compiled by Afreximbank on the implications of the Red Sea attacks on African trade and macro-economic stability.
According to the report, the impact of the global trade disruption in Africa would be mixed with Egypt facing significant reduction in traffic around its Suez Canal while South Africa faced increased traffic and pressure in its ports due to the re-routing of vessels through the Cape of Good Hope.
Furthermore, the higher freight cost would not only spill into the prices of consumer goods across the continent but exacerbate the already elevated inflation levels across the continent. The report warned that such heightened inflationary levels could lead to further interest rate hikes by Central Banks across the continent which could stifle economic growth for the year.
On the trade front, the disruption in the worldwide supply chain, coupled with rising prices for food and energy, might compel local manufacturers to divest from the region if production costs exceed those of their rivals in other continents. It is projected that Africa’s trade volume will contract by mid-year.
AI poised to unlock development in Africa (The Herald)
Speaking at a panel discussion on ‘Fostering prosperity through policies on artificial intelligence in Africa’, on the sidelines of the 56th Session of the Economic Commission for Africa Conference of African Ministers of Finance, Planning and Economic Development (COM), experts agreed that Artificial Intelligence presented massive development opportunities for Africa if the right policies and infrastructure were in place.
Ousman Bah, the Minister of Communications and Digital Economy of Gambia, said it was important to have the right policies to regulate the use of AI and also avert its risks, but Africa should not wait to have the regulations in place to embrace the technology. Artificial intelligence, a fast-evolving technology that taps the intelligence of machines or software is transforming all social spheres globally.
Nigeria can achieve SDGs with AI – Expert (EnviroNews)
An Information Communication Technology (ICT) expert, Oluwafemi Osho, says the adoption of Artificial Intelligence (AI) can aid the achievement of Sustainable Development Goals (SDGs) agenda of 2030 in Nigeria. He blamed poor AI education, low internet penetration and the lack of a comprehensive AI policy as the bane to AI growth.
“The proliferation of the Internet, availability of large volumes of data, innovations in computing hardware, development of more advanced algorithmic techniques have further revolutionised AI across various domains…. AI offers significant opportunities and benefits for Nigeria if adequately harnessed. AI can drive economic growth through industrial innovations, leading to job creation.”
UN Global Compact Annual Forum empowers sustainable development efforts (ZAWYA)
The United Nations Global Compact Network Egypt (UNGCNE) is proud to announce the launch of the first edition of the UN Global Compact Annual Forum. Scheduled to take place on May 20th and 21st, this inaugural event marks the beginning of a yearly gathering aimed at acting as a catalyst for collaborative efforts between the private sector, international organizations, civil society, academia, and other stakeholders. Africa’s representatives will engage in discussions covering diverse challenges, best practices, and the way forward, thus enriching the discourse and facilitating the exchange of innovative solutions that enhance sustainability and promote responsible business strategies.
Themed “Pathways to Sustainable Africa,” and in collaboration with Africa Business Leaders Coalition, the forum features six essential panel discussions that delve into critical topics, including climate finance, education, green hydrogen, sustainable communities, responsible supply chains, and food security. These thematic areas have been carefully selected based on prevailing global sustainability trends for the year 2024, thoroughly scrutinizing the UN’s Six Transition principles.
Meeting the Sustainable Development Goals is urgent (African Business)
As delegates gather for the Africa Regional Forum on Sustainable Development (ARFSD) at the end of April in Addis-Ababa, they will be mindful of the continent’s struggles to achieve the Sustainable Development Goals (SDGs) by the 2030 deadline. With only a little over half a decade to go, many countries are far from the set targets. In the aftermath of the Covid-19 pandemic, some have even slipped a little farther from the targets. One of five regional fora organised by the United Nations, the 2024 summit will provide another opportunity for African governments to evaluate the progress they have made, share ideas and promote best practices in pursuit of the 2030 agenda.
The Forum is designed to focus on five SDGs ahead of the July UN High-Level Political Forum on Sustainable Development, as well as the Summit of the Future, which will be held during the UN General Assembly in September. According to Nassim Oulmane, a senior economist at the United Nations Economic Commission for Africa (ECA), and head of the ECA’s Technology Climate Change, and Natural Resource Management Division, the Forum will provide a platform for governments and other stakeholders to develop the tools to pursue implementation of the SDGs and the African Union (AU) Agenda 2063, are critical. “It’s very important for us to develop these tools and link them to the development plans of countries so they can make an objective evaluation of the two agendas,” he explained to African Business.
The Pivotal Role of Businesses in Achieving the SDGs in 2024 and Beyond (The Globe and Mail)
The 17 Sustainable Development Goals, adopted by all United Nations Member States in 2015, provide a shared blueprint for peace and prosperity for people and the planet. As the world enters 2024, achieving these ambitious goals by the 2030 target date becomes increasingly critical in addressing global challenges like poverty, inequality, climate change, environmental degradation, and lack of access to education and healthcare.
The SDGs are a universal call to action, requiring collective effort from governments, civil society, and the private sector. This year marks a pivotal point, where businesses must step up and play a transformative role in driving progress on the SDGs. Companies have tremendous potential to create shared value by aligning their operations, investments, and innovation with sustainable development principles.
Global corporations hold immense influence over supply chains, employment practices, environmental footprints, and societal impact. By embedding the SDGs into their core strategies and decision-making processes, businesses can generate long-term value while contributing to a more sustainable, equitable, and prosperous world.
Can An Expanded BRICS Challenge U.S. Global Dominance? (Carnegie Endowment for International Peace)
The addition of Saudi Arabia, Egypt, the United Arab Emirates, Iran, and Ethiopia to the BRICS economic bloc — established by Brazil, Russia, India, China, and South Africa —has contributed to a growing trend of regional and international polarization. Among the most notable of these policies is the move to replace the dollar with the local currencies of member states in all economic and trade exchanges, alongside plans to issue a unified currency and create alternative financial institutions to the IMF and the World Bank.
New BRICS Members’ Perspectives on Exploiting Potential Benefits (Modern Diplomacy)
Under Russia’s presidency in 2024, BRICS, which is an informal association consisting of Brazil, Russia, India, China and South Africa, and together with its five new members, is being discussed, beyond measure, most often focusing on its expansion and as a mechanism for uplifting the Global South. By strategically forging new alliances, for instance, African members can unlock their individual and collective potential on the global stage.
One of the key problems facing BRICS+ and the Global South collaboration is the diversity of the countries involved. While this diversity can be a source of strength, it can also create challenges in terms of aligning priorities and interests. Differences in political systems, economic structures, and cultural norms can make it difficult for countries to work together effectively. Additionally, the members of BRICS+ vary significantly in terms of their level of economic development and political influence, which can further complicate efforts to create a cohesive alliance.
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Trade Statistics for February 2024 (South African Revenue Service)
South Africa recorded a preliminary trade balance surplus of R14.0 billion in February 2024. This surplus is attributable to exports of R161.8 billion and imports of R147.8 billion, inclusive of trade with Botswana, Eswatini, Lesotho and Namibia (BELN). On a year-on-year basis, export flows for February 2024 were 7.5% higher compared to the R150.6 billion recorded in February 2023, whilst import flows were 5.1% higher having increased from R140.6 billion in February 2023 to R147.8 billion in the current period.
Association expects higher export volumes across all citrus fruits (Engineering News)
As the citrus export season starts this month, the Citrus Growers’ Association of Southern Africa (CGA) is confident that 37.9-million 15 kg cartons of lemons will be exported to key markets, which is an increase of 7% year-on-year. The increase in lemon and other citrus exports is testament to the resilience of South African citrus growers, producing more citrus under challenging circumstances including high inputs costs, loadshedding and deteriorating public infrastructure, the CGA states. The association also expects higher export volumes for oranges, particularly a 4% year-on-year increase in Navel orange exports to 25.6-million 15 kg cartons.
Overall, the quality of fruit for export this season looks to be excellent, despite possible smaller sizes of fruit coming from the Northern growing regions of the country owing to dry conditions, the association points out. In the 2023 export season, citrus growers packed 165.1-million 15 kg cartons for delivery to global markets, which marked an increase of 800 000 cartons compared with 2022. The CGA is positive that by working together, industry role-players can realise the targeted export of 200-million cartons a year in the next four years, and possibly 260-million cartons a year by 2032.
The association warns, however, that freight logistics group Transnet will have to ensure there are no delays in expanding private sector involvement in port logistics, as current port congestion can imperil the citrus export economy. The CGA also warns that, while export volumes are likely to increase, it does not automatically mean an increase in profitability or the viability of many citrus farms, given the steep prices of input costs across the value chain and other severe challenges that remain.
Related: Durban Container Terminal receives ten haulers before citrus season start (Engineering News)
African food sustainability needs greener production, less waste, PwC study shows (Engineering News)
Greener food production methods and the avoidance of food waste are required to future-proof Africa’s food supply and to meet the expected future demand for nutrition in a sustainable way, says professional services firm PwC in its 'The sustainable food revolution: Future-proofing the world’s food supply' report.
Africa, and the rest of the world, is facing a food crisis. Food shortages caused by supply chain disruptions emanating from various events across the world have amplified the long-term challenges to the sustainability of global food production, including population growth, climate change, and increased reliance on resource-intensive farming, the report shows.
Sustainability concerns are increasingly being understood and recognised across the continent, with food producers and their partners beginning to look at new sustainable agricultural practices. There is also a shift, with regulators beginning to shape new requirements, alongside consumers calling for change, PwC Africa says.
BAT South Africa scales down delivery supply chain as illicit trade hits record highs (Bizcommunity)
BAT South Africa (Batsa) has scaled-down its direct retail product distribution and delivery operations in the country, as the company continues to see volume declines as a result of heightened illicit trade. Until now, Batsa has had substantial contracts in place with third-party logistics and security companies to safely deliver its products directly to retail stores. However, these contracts have now been discontinued, with an estimated 500 jobs in the security and logistics part of the Company’s value chain being impacted.
This move significantly reduces Batsa’s need for logistics and security services from its external suppliers, impacting the broader value chain attached to the business. Further, the changes have impacted approximately 20 permanent Batsa employees.
“The decision to stop direct deliveries to lower-volume retailers is an unfortunate consequence of the increasing illicit trade in tobacco products, which has continued since the Covid-19 tobacco ban. Our internal estimates now show that illicit trade now accounts for more than 70% of all cigarettes consumed in the country – leaving the legal market with less than a 30% market share,” said Johnny Moloto, area head of corporate and regulatory affairs for BAT Sub-Saharan Africa.
Prioritizing Angolan Agriculture to Unlock Economic Diversification (World Bank)
Despite its vast arable land and abundant water resources, Angola still imports most of its food. In 2022, according to figures from the National Bank, Angola spent around $3 billion on food imports. In the last five years, however, the Government of Angola has prioritized the agricultural sector and has been promoting agribusiness in view of reducing its reliance on external markets for food supply.
One such initiative is the Angola Commercial Agriculture Development Project (PDAC), co-financed by the World Bank and the French Development Agency. The project aims to incentivize bank lending to agriculture by helping producers and Small and Medium Enterprises (SMEs) prepare and finance agriculture investments, providing the needed technical assistance, grants, and de-risking through partial credit guarantees. The support is helping the transition from subsistence to a more market-oriented, competitive agriculture sector in the country.
New World Bank Financing to Boost Safety and Efficiency of Tanzania’s Key Railway Line (World Bank)
A vital railway segment linking Tanzania’s capital, Dar es Salaam, to Isaka is set for major improvements benefitting nearly 900,000 people thanks to newly approved financing from the International Development Association* (IDA).
The $200 million financing for the second phase of the Tanzania Intermodal and Rail Development Project (TIRP-2) will improve safety, climate resilience, and operational efficiency along this railway segment. Apart from strengthening the infrastructure and supporting transport studies, the project is focused on strengthening the climate resilience of the Kilosa-Gulwe-Igandu section, providing operational and institutional support, and supporting emergency response measures.
“While the country’s transportation network is extensive, there are persistent bottlenecks in terms of maintenance and capacity that are limiting its full use,” said Nathan Belete, World Bank Country Director. “This investment will directly address the bottlenecks in the rail network to enhance efficiency, capacity, and competitiveness so as to maximize Tanzania’s unique position to facilitate regional connectivity.”
IMF Executive Board Concludes 2023 Article IV Consultation with Algeria
The Algerian economy was still emerging from the Covid pandemic when spillovers from Russia’s war in Ukraine and recurrent droughts pushed up inflation, while high international hydrocarbon prices boosted government revenue and exports.
The Algerian economy is estimated to have grown by 4.2 percent in 2023, a robust performance owing to a rebound in hydrocarbon production and strong performance in the industry, construction, and service sectors. The external position remained solid with a current account surplus for the second year in a row. However, inflation pressures persisted (primarily due to high food prices) and monetary policy remained accommodative.
Medium-term economic prospects hinge on efforts to diversify the economy and the ability to attract private investment, and are subject to several risks. Risks on the downside include stubborn inflation, volatility in international hydrocarbon prices, fiscal risks from contingent liabilities, large budgetary financial needs, and rising public debt. Extreme climate events would affect the economy and the budget while a disorderly energy transition is a longer-term risk. On the upside, sustained, bold, and deep structural reforms and resolute efforts to diversify the economy, improve the business climate, attract investment, and tap new export markets could spur growth and job creation further.
Ghana Ports to rollout Maritime Single Window Initiative (Norvanreports)
Plans are far advanced for the rollout of the maritime single window program intended to facilitate vessel clearance at Ghana’s ports. The digital platform will incorporate the activities of shipping lines and regulatory agencies and enable them share information so far as the clearance of vessels at the port is concerned.
This is in line with the International Maritime Organisation’s Annex to the Facilitation (FAL) Convention which makes the single window for data exchange mandatory in ports around the world. The Corporate IT Manager at GPHA, Francis Donkor highlighted the service offerings of this platform, distinct from the Integrated Customs Management System used for cargo clearance.
“Maritime single window really is about the vessel clearance, it’s not focusing on cargo which the other single window actually focuses on, this is about vessel. Before the vessel comes to our waters, it ought to be cleared. Before the vessel even docks at our ports, it ought to be cleared. Before we even start working on the vessel, that vessel have to be cleared by certain authorities. So we are building a platform that will enable all the stakeholders be it the shipping agents, the regulatory authorities, to share information and share files. That really is going to facilitate the maritime trade in Ghana.”
Nigeria to almost triple energy prices, keep subsidy for poor (Norvanreports)
Nigeria plans to almost triple energy prices within weeks, people in the presidency with knowledge of the matter said, in a bid to attract new investment and slash about $2.3 billion spent to cap tariffs.
Nigeria’s economy has been hobbled by the lack of power supply while an increasing subsidy burden has weighed on government finances, diverting capital from building roads and spending on health care. With the latest move, President Bola Tinubu wants to cut down on price distortions, which haven’t ended despite breaking the state-owned power firm into 11 distribution companies and six generation firms and selling them to investors.
Afreximbank to offer Supply Chain Finance in Nigeria in partnership with Sterling Bank (Afreximbank)
African Export-Import Bank (Afreximbank) has partnered with Sterling Bank to introduce the innovative supply chain finance product ‘Payables Finance’, in Nigeria. This product, branded as ‘Afreximbank Tradelink,’ is one of Afreximbank’s digital offerings under the umbrella of the Africa Trade Gateway (ATG). ATG provides African corporates and commercial banks with relevant digital tools to access market information, connect with buyers and sellers across the continent for efficient marketing and procurement, facilitate Know Your Customer (KYC) processes, and promote trade payments between African countries in local currencies.
Payables Finance enables suppliers to access financing from the banking system by obtaining early payment for invoices which have been approved for payment by their corporate buyers. The buyers continue to receive trade credit from the suppliers, and the suppliers finance their working capital through the early payment received, enabling them to grow their business.
Payables Finance is the fastest growing trade finance product globally and there is an enormous opportunity for African businesses to benefit from it.
Other regional news: EU stepping-up trade, investments in West Africa (Ghana Business News)
Road map for new EAC financing mechanism beckons (The Citizen)
A road map for a new financing mechanism for the East African Community (EAC) budget is finally in sight. Recommendations made by experts will be discussed at a ministerial meeting next month before the matter is escalated to higher authorities. “A modality for implementation has been agreed upon at a recent meeting held in Dar es Salaam,” said Deng Alor Kuol, the EAC Council of Ministers chairperson.
A hybrid model of financing the EAC budget was recommended by the ministers of Finance way back in 2021 following directives from the Heads of State. Under the model, 65 percent of the budget is to be contributed equally by all the partner states; they are eight now. Another 35 percent of the total budget is to be assessed based on partner states’ average nominal GDP per capita for the previous five years.
How EAC can boost exports to rest of Africa (The Citizen)
The East African Community (EAC) bloc has been urged to aggressively invest in import substitution industries (ISIs) to promote exports. This will give the region, which trades more with the rest of the world than Africa, an edge in intra-African trade. Increased exports through local manufacturing would additionally reduce existing trade gaps from soaring imports.
These are among the recommendations made by a just concluded study which examined trade implications for the bloc under the African Continental Free Trade Area (AfCFTA) agreement. The study by the East African Business Council (EABC), titled Study on Opportunities and Threats of the African Continental Free Trade Area to the East Africa Community, urged the EAC member countries to complement ISIs by embracing various AfCFTA instruments.
Those already operational include Pan African Payment and Settlement System (PAPSS) but which is yet to be accessible to some partner states. Intensive investment in the EAC manufacturing sector would also enable the region to promote value addition and product diversification
The study revealed untapped trade potential between the EAC countries which, it says, needs to be leveraged following AfCFTA tariff liberalisation. It was found out that the EAC partner states import more from the rest of Africa than they export, creating a trade gap that presents an opportunity that needs to be addressed. “The business community in EA should focus their production on goods that EAC and the rest of Africa countries source from the rest of the world,” the report said.
On average, 80 percent of EAC countries exports went to the rest of the world and consisted of mainly primary products. On the other hand, 81 percent of their (EAC states) imports came from the rest of the world and largely consisted of secondary products. The report said only 20 percent of EAC countries’ exports and 19 percent of imports came from the rest of Africa and were mainly primary products.
Related: Lobby: Kenya could miss out on continental trade deal (The Standard)
Regional Optical Fibre Regulatory Policy and Framework Validated (COMESA)
Close to 50 experts in the Information and Communications Technology (ICT) sector from Eastern Africa, Southern Africa, and the Indian Ocean region have validated the draft Policy and Regulatory frameworks for fibre infrastructures. These frameworks will help enhance digital development in the region.
To promote efficient and cost-effective deployments and use of optical fibre cable infrastructure and services, the European Union funded Programme on Enhancement of Governance and Enabling Environment in the ICT sector (EGEE-ICT), supported several activities of this cause.
The first activity was a study on optical fibre cable infrastructure, which identified missing links, capital and operational costs associated with fibre networks, and recommended appropriate policy and regulatory interventions to enable efficient and cost-effective utilization and deployment of fibre networks.
The policy and regulatory frameworks will guide the development of national frameworks at a regional and national level and support an enabling environment to accelerate the rollout of fibre-based broadband networks and penetration and use of fibre-based broadband services through effective infrastructure sharing in the EA-SA-IO region.
African countries to dominate the world’s top 10 growing economies, ECA report (UNECA)
African countries are predicted to dominate the world’s top 10 highest growing economies in 2024, according to a report on Recent Economic and Social Developments in Africa by the Economic Commission for Africa (ECA). The most notable growth drivers in Africa in 2024 will be Niger, Senegal, Ivory Coast, DRC and Rwanda.
Adam Elhiraika, Director, Macroeconomics and Governance Division at ECA said Africa was the fastest growing region after East and South Asia in the developing world in 2023, and Africa will continue this trend in 2024 and 2025. The report says that Niger and Senegal are expected to experience significant economic growth due to the increase in hydrocarbon production and exports. The report shows that the continent is expected to grow from 2.8% in 2023 to 3.5% in 2024 and reaching 4.1% in 2025, mainly underpinned by net exports, private consumption and gross fixed investment.
In 2023, the report says, the global economy showed resilience with declining energy and food prices, increased consumption in China, and improved US economic growth. Still, the outlook remains uncertain, with high debt, rising borrowing costs, weak global trade, and mounting geopolitical risks, constraining progress towards the SDGs and Agenda 2063 targets.
Experts cautiously optimistic amid positive forecasts – Dr. Mbiah on maritime trade in 2024 (Norvanreports)
Citing these predictions from UNCTAD, Drewry, Clarksons, Clyde and Co, Maritime Law Consultant and Legal Practitioner Dr. Emmanuel Kofi Mbiah has attributed the expected growth largely to demand and supply dynamics around the world favouring increased trade, in the aftermath of the COVID-19 pandemic. What is happening now affects global trade so even though the United States of America and Europe have put in place a mechanism to ensure that vessels are shepherded along key routes, big companies like CMA- CGM, Maersk line have taken a decision that they will go around the Cape of Good Hope.
ECOSOCC organizes continental dialogue on the upcoming Summit of the Future (African Union)
One of the much-awaited global events for this year is undoubtedly the Summit of the Future (SOTF) scheduled in September 2024. SOTF is a once-in-a-generation opportunity to enhance cooperation on critical challenges and address gaps in global governance, reaffirm existing commitments including to the Sustainable Development Goals and the United Nations Charter, and move towards a reinvigorated multilateral system that is better positioned to positively impact people’s lives. UN member states will be asked to endorse a ‘Pact for the Future,’ a blueprint for international cooperation in the twenty-first century.
The African Union’s Economic Social and Cultural Council (ECOSOCC) has undertaken a number of civil society consultations to provide feedback and inputs on the ‘Pact of the Future’ for the Continental Dialogue on the Summit of the Future which took place on 28th March 2024. Dr. June Soomer, Chair Designate of the UN Permanent Forum on People of African Descent, said: "The summit of the future must look to the past. Let's create financial sustainability within the continent. We must also have more global financing to deal with climate changes. We should marry Agenda 2063 with the African Financial System but let us not forget the 6th region (diaspora) in this drive towards building financial resilience and climate justice.”
Expert says up-skilling is critical in trade finance success (Businessday Nigeria)
Seyi Ebenezer, a finance and banking professional with extensive experience in trade finance, has stressed that upskilling is a paramount criterion for success in the industry. He made this known at a media briefing recently stating that the trade finance industry requires constant upskilling to attain desired progress.
Ebenezer emphasised that continuous learning and skill development are essential for staying competitive and adapting to the changing demands of trade finance. “In trade finance, where regulations, technologies, and market trends are constantly evolving, upskilling is not just beneficial but imperative for professionals aiming to excel in their careers,” he stated. According to him, trade finance encompasses a broad range of financial services and products used by companies to facilitate international trade and commerce.
China remains Africa’s largest trading partner – envoy (New Vision)
China has remained Africa’s largest trading partner, with bilateral trade exceeding two trillion United States dollars in this period, the Chinese ambassador to Uganda has said. According to Zhang Lizhong, the Chinese Government has participated in large-scale infrastructure projects, including railroads, highways, ports, and electrical infrastructure, continuously benefitting Africans. In addition to financial support, according to Lizhong, China has dispatched about 9,000 medical personnel and provided more than 100,000 training opportunities to African countries.
He said that the President of China, Xi Jinping made three proposals at the China-Africa Leaders’ Dialogue held in South Africa last August. They include the initiative to support Africa’s industrialization, agricultural modernization, and cooperation on talent development, to advance modernization and create a great future for African countries including Uganda. The three proposals, he explained, have drawn the focus of high-level China-Africa community of a shared future on bringing numerous opportunities for China-Uganda practical cooperation in the future.
What 22 Years of China-Africa Trade, Development Finance, and FDI Reveals About Renewable Energy Support for African Countries (The China-Global South Project)
A new report by the Boston University Global Development Policy Center and the African Economic Research Consortium analyzes China-Africa trade, overseas development finance, and foreign direct investment (FDI) from 2000-2022 and provides lessons for aligning China’s engagement with African countries’ energy objectives. “Given current economic challenges and future energy opportunities, China can play a role in contributing to Africa’s energy access and transition through trade, finance and foreign direct investment”, says Boston university global development policy center.
From the trade angle, Africa-China trade features expansion, trade deficits, and resource extraction. From 2000-2022, Africa’s total goods trade with China swelled from $11.67 billion to $257.67 billion, as China became many African countries’ largest trade partner. However, Africa experienced sustained trade deficits due to fluctuating commodity prices and external global shocks. About 89% of Africa’s exports to China included oil, copper, iron, and aluminum commodities, mostly hailing from Angola, South Africa, Sudan, the Democratic of the Congo, and Congo.
Chocolate price hikes bittersweet reason care about climate change (UNCTAD)
Chocolate-loving consumers around the globe are being hit by higher cocoa prices due in part to the climate crisis. Extreme weather and changing climate patterns have upended crop harvests, which are expected to fall short for the third year in a row, tightening global supplies and raising prices.
The cost of cocoa, the key ingredient for making the beloved sweets, shot up by 136% between July 2022 and February 2024, according to UNCTAD commodities price monitoring. The price per tonne on the futures market crossed $10,000 for the first time ever on 26 March. The hike has filtered through to consumers worldwide, already reeling under inflation and a generational cost-of-living crisi
Côte d’Ivoire to raise cocoa farmgate price by 50% (Norvanreports)
Côte d’Ivoire’s President Alassane Ouattara will increase the official cocoa farmgate price to 1,500 CFA francs (US$2.47) per kg from Tuesday from the current 1,000 CFA, sources at five different export companies said. The sources, who requested anonymity because of the sensitivity of the issue, said they were citing a decision at a government meeting on Saturday.
Cocoa prices have more than tripled over the last year as disease and adverse weather pushed the global market to a third successive deficit, but the official farmgate price that growers can charge for their beans in Ivory Coast, a top producer, has yet to reflect this.
Trade in Low Carbon Technologies: The Role of Climate and Trade Policies (IMF)
Curbing carbon emissions to meet the targets set in the Paris Agreement requires the deployment of low carbon technologies (LCTs) at a global scale. This paper assesses the role of climate and trade policies in fostering LCT diffusion through trade. Leveraging a comprehensive database of climate policies and a new database identifying trade in low carbon technologies and the tariffs applied to these goods, this paper shows that the introduction of new climate policies has a positive and significant impact on LCT imports.
World Bank Group Publishes New Data, Aiming to Boost Investment in Emerging Markets (World Bank)
The World Bank Group has published sought-after proprietary statistics that reveal the credit risk profile of private and public sector investments in emerging markets. Making this data publicly available is the latest in a concerted effort to drive more private sector investment to emerging and developing economies.
Two separate reports are being provided for the first time ever. The International Bank for Reconstruction and Development (IBRD) is sharing sovereign default and recovery rate statistics dating back to 1985. This information will help credit rating agencies and private investors gain a deeper understanding of IBRD’s credit risk.
At the same time, the International Finance Corporation (IFC) is providing private sector default statistics broken down by internal credit rating. The report provides insights that could help private sector investors feel more confident about investing in emerging markets.
Members discuss digital and remittance services, MC13 follow-up in Services Week (WTO)
WTO members explored the cost of cross-border remittance services and the impact of the COVID-19 crisis on ICT and digitally delivered services at two events on 25 and 27 March organized under the Committee on Trade in Financial Services and the Council for Trade in Services respectively. At a Council meeting on 27 March, they followed up on outcomes of the 13th Ministerial Conference (MC13) and previous ministerial conferences and reviewed the participation of least-developed countries (LDCs) in services trade among other issues.
Brazil Should Use G20 Momentum to Join the OECD (Council on Foreign Relations)
Brazil’s presidency of the Group of 20 (G20) presents a unique opportunity for the United States to support Brazil in its ambition to be a powerful bridge between the developed world and the developing countries often referred to as the Global South.
Brazilian President Luiz Inácio Lula da Silva’s (Lula) has had a longstanding objective to give the Global South a larger voice in decision-making in multilateral institutions. He made this objective one of three pillars of this year’s G20 presidency, together with social inclusion and the fight against hunger and poverty, and energy transition.
BRICS Countries Preparing Major Announcements At 2024 Summit (Watcher Guru)
BRICS Countries Russia and Brazil are reportedly preparing major announcements for the upcoming BRICS Summit in October. Indeed, Russian Foreign Minister Sergey Lavrov and his Brazilian counterpart, Mauro Vieira, held discussions to prepare for the upcoming BRICS and G20 summits.
The BRICS summit is scheduled for October 2024 in Kazan, Russia. The summit will bring together founding nations Brazil; Russia; India; China; and South Africa, as well as newly inducted nations. Several interested countries are also expected to receive invites to the annual summit, where multiple topics will be on the menu.
As the summit comes closer, Russia and Brazil appear to be strengthening their ties and relationship. The BRICS countries are expected to address global challenges to the alliance at the summit. These include the importance of de-dollarization, expansion, and the development of a new currency.
More BRICS news:
BRICS: China Unveils Blockchain Project to End US Dollar in Trade (Watcher Guru)
China’s Jiangsu province’s trade volume with BRICS countries surges to record high in new year (TV BRICS)
Is brics offering an alternative model for global governance (East Asia Forum)
BRICS’ new step to end US dollar dominance (PressTV)
Global trade news
Experts cautiously optimistic amid positive forecasts – Dr. Mbiah on maritime trade in 2024 (Norvanreports)
The great trade collapse of 2020 and the amplification role of global value chains (European Central Bank)
Charting a Course for Sustainable Global Trade: UNCTAD’s Inaugural Global Supply Chain Forum (Global Trade Magazine)
Replacement of human artists by AI systems in creative industries (UNCTAD)
Europe finalises rules for more recycling, less waste exports (EURACTIV)
EU says plan to ensure critical raw materials supply is not aimed at China (EURACTIV)
Related News
tralac Daily News
Full Quarterly Bulletin - No 311 (South African Reserve Bank)
The real gross value added (GVA) by the primary sector contracted further in the fourth quarter of 2023 due to a further sharp contraction in agricultural output as the production of field crops as well as horticultural and animal products decreased. By contrast, mining output reverted to an increase in the fourth quarter as the production volumes of especially platinum group metals (PGMs), coal, chromium ore and diamonds increased.
South Africa’s trade surplus with the rest of the world narrowed to R88.1 billion in the fourth quarter of 2023 from R181 billion in the third quarter as the value of merchandise imports increased at a faster pace than the value of merchandise and net gold exports. The increase in the value of merchandise imports reflected higher volumes and prices, while that of exports reflected higher prices. South Africa’s terms of trade deteriorated further in the fourth quarter of 2023 as the rand price of imported goods and services increased more than that of exports.
The value of merchandise exports increased by 0.8% in the fourth quarter of 2023 as increases in the value of manufacturing and agricultural exports outweighed the decrease in mining exports. The lower mining exports reflected a decrease in the export values of pearls, precious and semi-precious stones as well as base metals and articles thereof, which outweighed the higher export value of PGMs. The value of manufacturing exports increased for a sixth consecutive quarter in the fourth quarter of 2023, mainly reflecting higher exports of chemical products; prepared foodstuffs, beverages and tobacco; and paper and articles thereof. Agricultural exports were boosted by the increased exports of fruit, in particular grapes, in the fourth quarter of 2023.
The value of merchandise imports increased by 5.6% in the fourth quarter of 2023 as the value of mining and agricultural imports increased. Mining imports were buoyed by mineral products, reflecting further increases in the imports of crude oil and refined petroleum products, especially distillate fuel (diesel). The value of crude oil imports surged by 85.4% in the fourth quarter of 2023 as both the physical quantity and the realised rand price thereof increased. The value of manufactured imports decreased slightly in the fourth quarter of 2023, largely due to lower imports of machinery and electrical equipment.
Government to work with transport sector for economic growth (SAnews)
“From roads and highways to railways, airports, and seaports, a well-established transportation network not only facilitates the movement of goods and people but also acts as a catalyst for economic development,” Minister of Transport Sindisiwe Chikunga said on Tuesday. “It is imperative that policymakers, businesses, and communities work together to prioritise sustainable infrastructure development that meets the needs of present and future generations. Only through concerted efforts can we build a transport infrastructure that drives inclusive and sustainable development for all,” Chikunga said.
Release of Gas Master Plan approved at Cabinet’s last official meeting ahead of May poll (Engineering News)
Cabinet approved the publication of the long-awaited Gas Master Plan for public comment during what was the last formal meeting of the executive ahead of the May 29 election. However, Minister in The Presidency Khumbudzo Ntshavheni indicated that special Cabinet meetings could still be convened should the need arise.
The master plan, Ntshavheni said, was supportive of government’s commitment to diversifying the country’s energy mix away from coal-fired power plants. She added that the document would be used as a policy instrument to guide gas investment in the country, which currently imports gas through a pipeline from southern Mozambique, from fields where production is set to taper before the end of the decade.
“The master plan will enable a natural gas economy that is favourable to investors and can provide an alternative source of energy for the country’s electricity sector.” The Gas Master Plan has been published amid warnings of a “gas cliff” for industrial consumers in Gauteng and KwaZulu-Natal from mid-2026, at which date Sasol will divert the remaining gas imports from its wells in Mozambique towards its own facilities in Secunda and Sasolburg to help reduce its use of coal and, thus, its carbon emissions.
See also: Metals and engineering industry must find common purpose in negotiations (Engineering News)
State moves to address concerns raised by Nairobi traders (The Star)
The Ministry of Trade has moved quickly to address the recent tax concerns raised by traders in various parts of Nairobi announcing a raft of measures to unlock the stalemate. In a meeting chaired by Deputy President Rigathi Gachagua at his Karen residence Thursday, the ministry announced that going forward, no further tax increments will be made without consultations with the traders. This comes as a huge reprieve for the traders who have in the past accused the government of imposing taxes without consulting them.
To deal with the issue of counterfeits, the meeting agreed to streamline pre-shipment inspection and how it will be done. Anti-counterfeit Authority (ACA) was also directed to work closely with the Kenya Bureau of Standards to enrich the Certificate of Conformity. In what is also a huge relief for the traders, ACA was directed to release all seized goods within 2 weeks upon verifications.
Kenya ends oil import feud with Uganda (The East African)
Kenya will finally license the Uganda National Oil Company (Unoc), ending months of a major feud that spilled over to the regional court and hurt diplomatic ties between the two countries. Energy Cabinet Secretary Davis Chirchir on Wednesday said that work is in progress to issue a permit that will allow Unoc to import fuel directly through Kenya Pipeline Company (KPC).
“You will see Unoc getting a licence and then we will see how to work together because usage of our pipeline is an opportunity for us,” Mr Chirchir said. “They will employ Kenya Pipeline Company’s infrastructure so there will be no loss of opportunity, the transporter will remain to be KPC. We are working closely with Uganda to resolve the challenge.”
Uganda went to the regional court in December last year to fight for the licence that would allow the use of KPC’s infrastructure. The case is yet to be determined but issuing the license is likely to end the case at the regional court as the two countries move to avert a diplomatic fallout.
Government launches digital media campaign to position Kenya as top tourism and tech hub (TechTrendsKE)
The Kenya Government has launched a digital media campaign dubbed, “Let’s Go to Kenya”, to promote the country as a premier destination for tourism, technology, innovation, and investment. The campaign, launched today will be spearheaded by the Ministry of Information Communication and Digital Economy (MoICDE), in collaboration with Konza Technopolis and ICT Authority.
Speaking at the launch event in Nairobi, Permanent Secretary, State Department for Information Communications Technology (ICT) and Digital Economy, Eng. John Kipchumba Tanui said the campaign will highlight Kenya’s scenic beauties, Kenya’s burgeoning tech sector, investment-friendly environment, and the opportunities available for entrepreneurs and investors in tech and tourism. “The Government through the Ministry of ICT and Digital Economy is embarking on a mission to elevate the awareness of Kenya as a premier destination for tourism and investment. We aim to achieve this through the power of technology, working with our partners specifically harnessing the capabilities of digital media platform that’s why we’ve launched the hashtag #LetsGoToKenya digital campaign,” Eng. Tanui said.
New Digital Trade Hub to boost Zambian businesses online (ITC)
The programme, a collaboration between the International Trade Centre (ITC) and Absa Bank Zambia Plc, aims to unlock the potential of online business for growing trade. ‘The initiative represents a significant milestone in our efforts to foster economic development and empower our local entrepreneurs,’ Livingstone Mayor Constance Muleabai said at the launch on 14 March. ‘Our city is also home to a vibrant community of small and medium enterprises striving to succeed in an increasingly digital world,’ she said. ‘Today we take a bold step forward in supporting these businesses on their journey towards ecommerce excellence.’
Ethiopia eyeing e-government, e-commerce for digital transformation (Ethiopian Herald)
Among the digital strategies, e-government and e-commerce are highly contributing to the success of the country’s digital transformation, the Ministry of Innovation and Technology (MinT) said. MinT Minister Belete Molla (PhD) made the above remark during the panel discussion held on Tuesday in relation to the performance evaluation forum on mid-term digital transformation 2025.
“Various infrastructure development activities are also made by prioritizing legal frameworks, strategic planning, institutional development, telecom infrastructure expansion in the past three years, thus, attracting a huge amount of local and international investments,” he pointed out. Moreover, issuing digital ID, applying digital payment systems and delivering financial technology services are among the achievements of the strategy, he added. The Ministry has launched over 587 e-governance service and e-commerce platforms, Belete said, adding that currently, pertinent institutions are offering reliable and fast services through deploying digital infrastructures.
Ethiopian officials discuss development of infrastructure projects (TV BRICS)
The country plans to achieve middle-income status by 2030. Speaking on the subject, Ethiopia’s Minister of State for Urban Planning and Infrastructure, Wondimu Seta, emphasised the country’s efforts to ensure building a more resilient and sustainable future, such as developing a regulatory framework that also takes into account the effects of climate change. Seta drew attention to the many ongoing projects that serve as a foundation for future social and economic transformation and should meet current development needs while ensuring long-term sustainability.
Nigeria to grant mining licences only to locally processing firms (The East African)
Nigeria will only grant new mining licences to companies that present a plan on how minerals would be processed locally, under new guidelines being developed, a government spokesperson confirmed on Thursday. This signals a shift from Nigeria’s decades-old policy of exporting raw materials as African governments take steps to extract more value from their solid mineral deposits.
To spur investment, Nigeria will offer investors incentives including tax waivers for importing mining equipment, make it easier to secure electricity generation licences, allow full repatriation of profits and boost security, Segun Tomori, a spokesperson for Nigeria’s minister of Solid Minerals development said. “In exchange, we have to review their plans for setting up a plant and how they would add value to the Nigerian economy,” Tomori said. He did not say when the guidelines would be finalised or come into effect. However, last week the minister of Solid Minerals Development Dele Alake said it was now government policy to make value addition a condition for obtaining licences so as to create jobs and help local communities.
Cocoa crisis plunges Ghana’s trade surplus; currency stability at risk (Norvanreports)
Ghana, the world’s second-largest cocoa producer, is experiencing a significant downturn in its cocoa sector, with export revenues plummeting by nearly one-third to $508.4 million. The decline comes despite a bullish trend in New York cocoa futures, propelled by production setbacks across West Africa due to adverse weather conditions, disease outbreaks, and fertilizer shortages.
The sharp contraction in cocoa export revenues has taken a toll on Ghana’s trade surplus, which contracted by 54% to $392.8 million for the first two months of the year. Coupled with a surge in imports by 26%, the widening trade deficit is putting immense pressure on the Ghanaian cedi, which has depreciated by 8.3% against the US dollar this year. The currency’s dismal performance positions it among the worst-performing African currencies, raising concerns about inflationary pressures, import costs, and foreign investor sentiment.
Navigating these multifaceted economic challenges demands a comprehensive and nuanced policy response. Strengthening cocoa productivity, diversifying export earnings, curbing import growth, managing public debt prudently, and bolstering the resilience of the financial sector are imperative.
Zimbabwe makes headway towards joining Brics bank (The Herald)
Zimbabwe’s bid for admission into the BRICS New Development Bank has been given a huge boost following the recent pledge of support by Russia, South Africa, and now Brazil. Currently, indications are pointing at Zimbabwe, together with Argentina and Saudi Arabia, being officially announced as new members of the NDB at the BRICS summit to be held in South Africa this August.
In an interview yesterday, Brazil’s Secretary for Africa and Middle East in the Ministry of External Relations, Ambassador Carlos Duarte, said Zimbabwe’s admission was an active issue which the bloc was seized with. He said Zimbabwe’s willingness to join the NDB would not affect its ultimate goal to become a full BRICS member and vice versa.
Stats SA has released its first-ever migration profile, which tracks the movements of labour migration in the SADC region (Voice of the Cape)
Statistics South Africa (Stats SA) has released its first-ever migration profile, which has tracked the movements of labour migration in the Southern African Development Community (SADC) region. Speaking on VOC’s In Conversation show on Wednesday, the Chief Director responsible for demographic and population Statistics Diego Iturralde, said the genesis of this report stems from the processes around the negotiation of the global compact for safe, orderly, and regular migration, which South Africa signed in 2018.
“One of the objectives of the global compact was to improve data collection of migration in all its forms, and it was recommended that member states who signed the global compact should produce a migration profile report that is comparable in each respective country.”
Comesa installs Smart Gate at Mchinji One-Stop-Boarder-Post (Malawi Nyasa Times)
Common Market for Eastern and Southern Africa (Comesa) has installed a state-of-the-art Smart Gate at Mchinji One Stop Border Post (OSBP) to fast track the clearance system. A Research Fellow at Comesa, Jane Kibiru said during a Media tour at Mchinji OSBP that the gate will address challenges faced by the border like reduce congestion of vehicles entering or exiting the border. “Once operational, the gate is going to help in reducing costs, congestion, as well as time spent by trucks due to overstay at the border,” she said.
“The gate will help in capturing information on traffic that comes into and out of the border,” she said. Mzunga said the gate is intended to be integrated with custom system that MRA uses. Adding that once the integration is done, it will be able to track down clearance of all goods that enter into the OSBP as well as be able to generate the collection of storage fees from motor vehicles or overstayed goods.
Small firms say AfCFTA tariff liberalisation may push them out of business (The East African)
The African Continental Free Trade Area (AfCFTA) is expected to significantly boost intra-Africa trade when fully implemented, but small businesses in East Africa are not happy about it, as it may not bode well for them. A survey by the East African Business Council (EABC), a lobby for private-sector players in the East African Community (EAC), shows that small businesses in the region are worried that a full take-off of AfCFTA could edge them out of business, unless they change tack.
Battered by a raft of challenges at home and dissatisfied with the progress in the elimination of intra-EAC trade barriers, the small businesses worry they may not withstand the competition from AfCFTA, which could force many of them to close down. “Intense competition arising from AfCFTA tariff liberalisation is likely to drive weaker enterprises out of business; unless they scale up their efficiency levels,” EABC says in the survey co-published with the African Export-Import Bank.
pdf Study on Opportunities and Threats of the AfCFTA to the EAC - Focus On Trade In Goods (1.43 MB)
10 longest bridges in Africa (Business Insider Africa)
Seamless transportation is still a challenge for trade in Africa, and the importance of bridges in addressing this issue cannot be overstated. By connecting previously isolated areas, bridges cut down travel times and costs, making it easier for businesses to move goods and people to access essential services. So it is no surprise that governments across many African countries pour finances in bridge construction projects, due to its role in facilitating trade and stimulating economic growth. Bridges in Africa come in various sizes, designs, and importance, each carrying its own significance for the communities they serve.
McDan Group CEO pleads for African ownership in logistics and transport sectors (The Africa Report)
Foreign dominance in logistics must be countered by local investment to guarantee African ownership over continental trade, says Daniel McKorley, CEO at McDan Group, a Ghanaian transportation and logistics company. While transport and logistics will be essential to realise the continent’s free trade ambitions, Africa’s trade landscape is dominated by foreign-owned air cargo and sea freight companies, perpetuating a cycle of economic dependence on more developed economies and missed opportunities for indigenous African businesses, says Daniel McKorley, CEO at Ghanaian transportation and logistics company McDan Group.
Empowering Africa’s Small and Medium-sized Enterprises (SMEs) through Technology Adoption (Africa.com)
Nearly 70% of small and medium-sized enterprises (SMEs) in Africa invested in technology in the past 12 months to help boost growth and resilience – an indication that SMEs are embracing the positive impact of technology. There are numerous opportunities that unlock the full potential of digitalisation for these businesses and the continent, which means addressing barriers, such as infrastructure, connectivity, and the high cost of implementing technology, and developing best practice frameworks for better collaboration.
These are findings from a new report, titled ‘Levelling the SME Playing Field’, jointly launched by Vodacom Group, Vodafone Group and Safaricom. The report is the sixth research paper under the Africa.connected campaign, which aims to drive sustainable development by closing the digital divides in Africa’s key economic sectors through strategic partnerships.
China is Buying More Agricultural Products From Africa, But There Is Still a Lot of Room For Growth (The China-Global South Project)
Chinese consumers can now buy Kenyan coffee, tea, and avocados — all shipped tariff-free. The latest data show that China is buying more agricultural products from Africa, but for all the Kenyan farm produce heading east, Chinese garlic and fish are also increasingly heading in the opposite direction. In the context of overall China-Africa trade that hardly grew in 2023 while Africa’s trade deficit widened, the agricultural trade segment increased by over 6%, and China is the side holding the trade deficit.
Deputy Administrator Isobel Coleman at the Africa Trade Desk Event (USAID)
Today, the African continent is a powerhouse of promise. This year, the continent is poised to be the world’s second fastest-growing region – Africa is home to 12 of the 20 fastest growing economies on the planet. And by 2040, Africa will have the largest workforce in the world – larger than China and India combined. The United States is eager to partner with Africa to harness this potential – helping generate broadly shared opportunity and prosperity that benefits families and communities across the continent, and sustainable growth that benefits economies across the world. To do this, we need to energize our efforts to mobilize the private capital that can advance Africa’s continued transformation.
That’s why the United States is proud to support Prosper Africa, a U.S. Presidential-level initiative to scale trade and investment in Africa. Prosper Africa is strengthening the strategic and economic partnership between the United States and Africa by catalyzing two-way trade and investment flows, forging new private-sector partnerships, and mobilizing large-scale private investment in Africa’s greatest opportunities.
Today, I am pleased to announce the launch of the Africa Trade Desk, a joint venture between Prosper Africa and Afritex ventures, which aims to bridge the gap between African agricultural suppliers and U.S. buyers, helping them surmount the physical and logistical hurdles that too often keep them from doing business together.
We’ve found that African producers are eager to sell to the U.S. market, but often lack access to networks of U.S. buyers. And U.S. retailers like Shopify, Sam’s Club, Walmart, and Whole Foods are eager to carry a diverse supply of products from across Africa, but similarly lack established connections. The Africa Trade Desk addresses this problem.
By connecting African suppliers with Prosper Africa’s network of over 20,000 U.S. retail buyers, the Trade Desk simplifies the partnership process, making it easier for African and American enterprises to establish mutually beneficial trade relationships that serve both parties’ needs. More than that – the Trade Desk goes beyond just matching buyers with suppliers. It leverages its connections with freight and insurance companies to negotiate lower costs, and makes use of its access to market data to inform business recommendations – providing benefits that would not typically be available to small producers on their own.
How Business Builds Bridges Between the U.S. and Africa (U.S. Chamber of Commerce)
The United States and the nations of Africa enjoy a vibrant, multifaced relationship focused on expanding partnerships, global cooperation, and shared prosperity. These countries also share another powerful bond: people. In the 2020 Census, more than 14.4% of Americans self-reported tracing their heritage to the African continent, and these cultural and familial ties provide a source of strength in building bridges through business.
Most small businesses do not export, but when they do, they tend to export to markets closest to them. The reasons to encourage small business owners, who make up 99% of all U.S. entrepreneurs, to consider new markets lie in a staggering statistic: 96% of the world’s consumers live outside the United States. Yet only one percent of all U.S. companies export, and when they do, these exporters are overwhelmingly small businesses, and nearly half of these firms sent the bulk of their goods to Canada, Mexico, the United Kingdom, and Japan in 2019. That makes the African diaspora a powerful force for building bridges and expanding our economic partnership with the fast-growing countries across Africa.
The U.S.-Africa Business Center’s mission to expand U.S.-Africa trade and investment led to the launch of Advance with Africa, with its goal of encouraging more U.S. companies—particularly diaspora-led ventures—to play a role in increasing commercial flows, educating them about doing business in Africa and equipping them with the tools to do so.
See also: AfDB, US forge strong partnership on African development (Nigerian Observer)
Members agree on timetable for market access thematic sessions, discuss trade concerns (WTO)
At a meeting of the Committee on Market Access (CMA) on 25-26 March, members agreed on a timetable for thematic sessions in 2024 focusing on supply chain resilience and on how to promote a greener Harmonized System (HS), the system used to classify traded goods, in collaboration with the World Customs Organization (WCO). Members also addressed a high number of trade concerns and elected Mr Kenya Uehara of Japan as interim Chair of the Committee.
Applying digital supply-use tables in developing economies (UNCTAD)
Digitally focused indicators are absent within the System of National Accounts, the standard statistical framework for measuring economic activity. The Digital Supply–Use Tables (Digital SUTs) framework was created to improve the visibility of and information available on digital phenomena while being consistent with the existing national account statistics. The framework has been designed as a derivation from the Supply-Use Tables (SUTs). However, SUTs are not available in many developing countries and often come infrequently with significant time lags.
Riding the circular wave: Entrepreneurs tackle the waste crisis, redefine economies (UNCTAD)
In convenience stores across Chile, customers are bringing reusable containers to fill up on essential products like shampoo, soap and detergent, thanks to refill stations set up by Chilean start-up Algramo, which in Spanish means “by the gram”. Such services are key to tackling the world’s waste problem, including the reliance on single-use plastic products like bottles and containers.
Each year, cities worldwide produce between 2.1 billion and 2.3 billion tonnes of solid waste. The UN warns that a business-as-usual scenario would require two planets by 2030 to meet global production and consumption needs. The make-take-waste economy is closely linked to major global challenges, such as climate change, biodiversity loss and the soaring costs of energy. The world needs to urgently transition to a more sustainable, circular model to keep products and materials in circulation as long as possible.
An UNCTAD report, “Entrepreneurs riding the wave of circularity”, spotlights companies like Algramo that are pioneering circular business models, reimagining humanity’s relationship with materials and natural resources.
Related: A new holistic view on circular value chains (McKinsey & Company)
Quick links
African island states take fresh step towards joint medicines procurement (WHO | Regional Office for Africa)
Africa is fueling India’s economic ambitions (Norvanreports)
The growth of the South in global finance: New bilateral data and stylised facts (CEPR)
Global Trade Finance in the 21st Century: Challenges and Opportunities (Financial Express)
Is this a pivotal moment for the rise of the middle powers? (WEF)
Is the US Dollar losing its grip? The rise of alternative reserve currencies (Norvanreports)
G20’s Brasilia Meeting: Promoting Inclusive Growth & Gender Equality (EastMojo)
EU Commission proposes common agricultural policy revisions following farmer protests (FreshPlaza)
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tralac Daily News
Chicken industry needs no tariff rebates because there is no shortage, Sapa stresses (Engineering News)
Executives from the South African Poultry Association (Sapa) met with Trade, Industry and Competition Minister Ebrahim Patel last week to discuss, among other matters, tariff rebates on chicken imports that were introduced as a safeguard against potential shortages on the back of bird flu outbreaks.
“We appreciate the reason that the tariff rebates were published, which is to address a potential shortage of chicken on the market. However, our data indicates that there has not been and is no shortage in the supply of chicken to the market, and thus there is no need for the rebates to continue,” Sapa Broiler Organisation GM Izaak Breitenbach explained.
South Africa faces a balancing act with China over its digital transformation (Africa at LSE)
South Africa is an African leader when it comes to digitalisation. The International Telecommunication Union ranks the country’s ICT development index at 4.96 out of 10, ranked at number 92 out of 176 countries. It boasts the highest mobile phone – 84 per cent – and internet penetration – 53 per cent – rates in Africa. The African National Congress-led government has established a Commission on the Fourth Industrial Revolution, an area many believe the country can benefit from its connections with China to leapfrog its infrastructure gap.
Chinese tech giants like Huawei and ZTE are major players in the South African market. Despite the presence of these two digital giants, South Africa’s digital connectivity still lags with several rural schools, public health institutions and communities remain unconnected. The rollout of 4G and 5G in rural areas is proceeding at a snail’s pace. This is despite Chinese companies like Huawei partnering with telecommunications operators like Vodacom and MTN to deploy 4G and 5G networks. Yet these digital infrastructures are still to diminish the existing digital divide between rural and urban areas.
South Africa should be able to leverage Huawei’s skill set, prowess and capacity to effectively build sound digital infrastructure. But that is not happening.
WCO renders support to the Namibia Revenue Agency on Customs Valuation (WCO)
The World Customs Organization (WCO) organized a technical assistance mission on Customs valuation to benefit the Namibia Revenue Agency (NamRA) from 18 to 22 March 2024. The mission was built upon previous technical assistance and capacity-building support to NamRA on Customs valuation in March 2023 and followed up on the recommendations made at the time. Cascading from this mission were policy elements such as a draft Policy on Customs valuation and Standards of Procedure (SOP).
The mission concluded with recommendations regarding the Policy related to the adjustments to be made when arriving at the Customs value. The updated Policy and SOP, as well as the other related SOPs to be developed, will be submitted to NamRA’s high-level management for approval according to the Action Plan agreed upon by the officials and according to NamRA’s internal procedures. Customs Officials and stakeholders will be made aware of the approved changes before implementing the new Policy and SOPs.
Egypt To Benefit From More Intra-Africa Trade (Global Finance Magazine)
Two recent expert reports supply evidence of Egypt’s unique potential to benefit from a more fully implemented African Continental Free Trade Area (AfCFTA) agreement. They are helping to fuel much needed optimism about the future of an economy battered by short-term geopolitical and other challenges that have led to symptoms such as 38% inflation last September.
The AfCFTA-Egypt reports come from the Organization for Economic Cooperation and Development (OECD), a Paris-based club of rich countries, and the Trade Law Centre (tralac) in Western Cape, South Africa. Both suggest that Egypt is well placed to benefit from and help advance AfCFTA. “Egypt has what it takes to play a key role,” said Landry Signé, senior fellow at the Brookings Institute, a Washington D.C.-based think tank, and professor at the Thunderbird School of Management, a business school in the United States. “For SMEs (small and medium sized enterprises) and larger companies, there are opportunities everywhere.”
WCO Anti-Corruption & Integrity Promotion (A-CIP) and Sida WCO Trade Facilitation and Customs Modernization (TFCM) Programmes organized on 18-22 March 2024, a series of workshops in Dar es Salaam, Zanzibar & Holili, in the United Republic of Tanzania in cooperation with the Tanzania Revenue Authority (TRA). The workshops aimed to raise awareness of the Authorized Economic Operator Programme (AEO) among Other Government Agencies (OGA) to support the TRA in increasing the implementation of the national AEO Programme.
WCO Experts and the TRA AEO Unit engaged with representatives of Customs and OGAs working at the border to discuss possible enhancements to the AEO Programme with the aim to achieve more significant benefits for operators and effectively implement the AEO. Discussions contributed to the TRA-specific priority under the A-CIP Programme: “Implementation of Customs regulatory framework harmonized with international standards”. In particular, this outcome relates to the implementation of article 7.7 of the WTO Trade Facilitation Agreement (TFA) and the EAC regional AEO Programme. Under the Sida WCO TFCM Programme, these workshops aimed to advance the technical capacity of TRA officers to implement the AEO Programme.
EU Launches €9 Million Energy Projects To Propel Nigeria’s Sustainable Development (Science Nigeria)
The European Union (EU) has reaffirmed its commitment to advancing Nigeria’s energy sector by introducing two groundbreaking projects worth €9 million. These initiatives, Small Hydro Power Development for Agro-industry Use in Nigeria (SHP-DAIN) and Advancing Nigeria’s Green Transition to Net Zero through Circular Economy Practices, are poised to revolutionise energy accessibility and promote sustainable practices to combat pollution and climate change.
Under the EU Global Gateway Strategy, these projects aim to enhance connectivity, foster economic growth and promote sustainability through collaborative efforts. With a budget of €5 million, the SHP-DAIN project focuses on increasing the capacity of small hydropower in Nigeria’s energy mix to drive productivity along agricultural value chains, thereby enhancing livelihoods and promoting food security.
Liberia: Lift Up the Executive Order George Weah Imposed on Rubber Exportation (FrontPageAfrica)
A former Representative candidate of District #16 is calling on President Joseph N. Boakai’s government to lift the executive order on rubber exportation in Liberia imposed by the then George Weah government. Mr. Archie Sarnor stressed that the monitoring of the executive order was intended to give Jetty Rubber Company the leverage under the canopy of building a factory to process rubber, but the main aim of the rubber factory was just to mislead the Liberian people so that they can export unprocessed rubber.
He emphasized that Weah announced the executive order in December 2023 to ban the export of rubber as a result of the huge sum of money he got from Jetty to finance his campaign. He alleges that Jetty is exporting unprocessed rubber out of the country, while other Liberian rubber containers at the port have been denied for exportation because Jetty is the only entity in charge of rubber exportation in Liberia, which is causing a setback to rubber production in the country.
Kalu meets Okonjo-Iweala, seeks WTO’s help in contamination of agricultural products during export (Premium Times Nigeria)
The Deputy Speaker of the House of Representatives, Ben Kalu, has solicited the cooperation of the World Trade Organization (WTO) in boosting the exportation of primary products from Nigeria and Africa in general. Mr Kalu made the call, Monday, when he visited the Director-General of the WTO, Ngozi Okonjo-Iweala, in Geneva on the sidelines of the ongoing 148th Assembly of the Inter-Parliamentary Union (IPU) in Switzerland.
Mr Kalu said African businessmen face hurdles in marketing their products, primarily due to aflatoxins contaminating them en route to their destinations. He added that the challenge is particularly pronounced within the context of “The African Growth and Opportunity Act (AGOA),” which grants duty-free treatment to goods from specified sub-Saharan African countries (SSAs). He, therefore, solicited the help of the WTO to set up centres in Africa for the treatment of the primary products packaged for export.
Sadc discusses challenges contributing to limited achievements of development targets (Chronicle)
The 2023/24 Infrastructure Performance Review and Planning Session took place in Kasane, Botswana from 16 to 22 March 2024, under the auspices of the Directorate of Infrastructure, which operates within the Secretariat of the Southern African Development Community (Sadc). This year’s session was held under the theme; “Accelerating the implementation of the Sadc Regional Infrastructure Development Master Plan (RIDMP) 2027 and Sadc Regional Indicative Strategic Development Plan (RISDP 2020-2030).
Ms Angele Makombo N’tumba, the Sadc Deputy Executive Secretary for Regional Integration, emphasised the importance of bolstering climate services to mitigate the adverse effects of climate-related disasters, which have regrettably hindered the economic progress achieved by Member States. Ms Makombo N’tumba encouraged the development of new propositions that address the deficit in power supply and promote greater access to sustainable and affordable energy. In regard to other essential infrastructure components, she strongly urged all relevant stakeholders to expedite the implementation of transport corridor development and the establishment of strategic roadmaps, as well as the adoption of digital technologies to facilitate universal digital connectivity.
Nigeria Urges ECOWAS Scientists To Leverage STI To Drive Economic Growth (News Agency of Nigeria)
Nigeria has called on the West African Network of the National Academies of Sciences (WANNAS) to leverage Science, Technology and Innovation (STI) to drive economic growth in the ECOWAS subregion. Minister of Science, Technology and Innovation, Geoffrey Nnaji, made the call at the opening ceremony of the General Assembly of WANNAS held at the ECOWAS Commission headquarters on Tuesday in Abuja.
“This event is very important as the highest echelon of the Science, Technology and Innovation Sector of our economies will deliberate and chart a way forward for a formidable sector that would proffer solutions to our economic challenges. “The ECOWAS subregion has immense potential waiting to be unlocked, harnessed, and propelled into the forefront of global innovation and technological advancement. According to him, the STI ministry, through the application of various STI apparatuses, is poised to diversify the Nigerian economy, which is a major priority of the Federal Government.
Central Bank Digital Currency and Other Digital Payments in Sub-Saharan Africa: A Regional Survey (IMF)
This Fintech Note reports key findings from the Sub-Saharan Africa Central Bank Digital Currency (CBDC) and Digital Payments Survey, shedding light on the motivations, benefits, and challenges of CBDC adoption, as well as the developments of digital private money and crypto assets in sub-Saharan Africa. It emphasizes the pivotal role of collaboration and shared knowledge in navigating the intricate landscape of digital currencies and assets in sub-Saharan Africa.
As this evolving digital frontier is explored, the experiences and aspirations of the region’s central banks, as expressed in the survey, will help harness the potential for digital currencies, assets, and payments, and foster cooperation among countries in sub-Saharan Africa. A forthcoming IMF Departmental Paper will focus on key issues for countries in sub-Saharan Africa pertaining to CBDCs, private digital payments, and crypto assets. It will provide a deeper discussion of the benefits, costs, and risks of these digital payment systems and present policy options to enhance financial digital development and inclusion, while safeguarding macroeconomic and financial stability.
Civil Society Coalition for African Continental Free Trade Area inaugurated (Ghana News Agency)
The African Continental Free Trade Area (AfCFTA) Monday inaugurated the Civil Society Coalition for African Continental Free Trade Area (CSCAfCFTA) in Accra. The CEO and Founder of CSCAfCFTA Dr. Emmanuel V. Brown said in a statement that it had been in discussions with representatives from several African countries since 2023 on ways to promote the AfCFTA concept in those nations. He said the formal inauguration marked the conclusion of actions that began with the idea development stage and included engagements with AfCFTA officials, government leaders, and international entities, including strategic collaboration with civil society groups to ensure that Africans benefited from the concept.
The statement urged the public to support the call for businesses to use AfCFTA to boost intra-Africa trade and secure long-term growth with less dependency on foreign handouts on the African continent.
Key Statistics and Trends in International Trade 2023 (UNCTAD)
Global trade has followed a highly volatile pattern since the onset of the COVID-19 pandemic. Fragmentation and increased heterogeneity of trade performance characterize not only the rebound of 2021 and 2022 but also the recent trade slowdown, albeit to a lesser extent.
While it is premature to definitively assert whether the recent trend is a substantial departure from established global trade trends, it appears possible that COVID-19 disruptions initiated a significant shift in global trade, now fuelled by systemic patterns tied to geopolitical issues and risk-mitigating strategies. The convergence of these factors raises the possibility that global trade patterns will be undergoing more significant changes, ushering in a new era with distinct challenges and opportunities for economies worldwide.
In value terms, global trade in goods and services rebounded to about US$ 28 trillion in 2021 from the lows of the COVID-19 pandemic and further grew to about US$ 32 trillion in 2022. The value of international trade is expected to moderately decline to around US$ 31 trillion in 2023, driven by lower global demand, particularly for goods. On a positive note, trade volumes have been less volatile in recent years and are expected to remain stable in 2023. Trade in services has also proved to be more resilient, with its value reaching approximately US$ 7 trillion in 2022 and expected to increase by about US$ 500 billion in 2023.
WTO and EIF host discussion on trade policy and women’s economic empowerment (WTO)
An event titled “A joint conversation on women’s economic empowerment”, hosted by the WTO and the Enhanced Integrated Framework (EIF) on 26 March, provided a platform to showcase recent advances and initiatives aimed at addressing gender inequality in trade and fostering women’s empowerment. Speakers at the event presented recent developments concerning trade and gender. The WTO’s Trade and Gender Office highlighted three member-led outcomes on trade and gender from the 13th WTO Ministerial Conference, marking a significant milestone in advancing gender-responsive policies.
Women Critical To Driving Sustainable Devt, Mitigating Climate Change Impacts (New Telegraph)
The Group Chief Executive Officer NNPC Limited, Mele Kyari has said women in the oil and gas sector play critical roles in driving sustainable development and mitigation of the impacts of climate change in the country. Kyari made the assertion while speaking at the Strategic Women In Energy Oil And Gas Summit & Awards held in Abuja to commemorate the 2024 International Women’s Day (IWD) celebration with the theme, with the theme: “Closing Energy Gaps in Nigeria by Investing in Women.”
Kyari who reaffirmed NNPC Limited’s commitment to gender equality and inclusive development, noted that empowering women as leaders and decision-makers in the energy sector would help in promoting more sustainable practices, accelerate the energy transition process and ensure a brighter future for generations to come. He said: “As we reflect on the achievements and challenges faced by women in the energy sector, let us reaffirm our commitment to gender equality and inclusive development.
Record Growth in Renewables, but Progress Needs to be Equitable (IRENA)
Renewable Capacity Statistics 2024 released by the International Renewable Energy Agency (IRENA) today shows that 2023 set a new record in renewables deployment in the power sector by reaching a total capacity of 3 870 Gigawatts (GW) globally. Renewables accounted for 86% of capacity additions; however, this growth is unevenly distributed across the world, indicating a trend far from the tripling renewable power target by 2030.
IRENA Director-General, Francesco La Camera said, “This extraordinary surge in renewable generation capacity shows that renewables are the only technology available to rapidly scale up the energy transition aligned with the goals of the Paris Agreement. Nevertheless, the data also serves as a telltale sign that progress is not moving fast enough to add the required 7.2 TW of renewable power within the next seven years, in accordance with IRENA’s World Energy Transitions Outlook 1.5°C Scenario.”
Climate Change: Group unveils actionable plans for ‘sustainable future for Africa’ (Premium Times Nigeria)
An International Press Conference announcing the inaugural convening of the Climate Action Africa Forum (CAAF24) concluded on Friday at the Transcorp Hilton Abuja, marking a significant milestone in the journey towards a sustainable future for Africa, according to officials. Under the theme, “Green Economies, Brighter Futures – Innovating and Investing in Africa’s Climate-Smart Development,” the International Press Conference provided a vibrant platform for insightful discussions, strategic collaborations, and impactful engagements. The conference was a precursor to the upcoming Climate Action Africa Forum scheduled from 17-19 June, 2024.
“It’s no news that the world stands at a critical juncture, where decisive action is imperative to mitigate the adverse impacts of climate change. Against this backdrop, CAAF24 is a pivotal platform for key stakeholders to engage in meaningful discourse, and forge collaborative pathways towards a greener, more sustainable future,” officials said. Throughout the conference, distinguished speakers and thought leaders underscored the urgency of collective action in addressing Africa’s climate challenges.
Africa must work to urgently address its staggering $65 billion timber trade deficit to position forests as a critical driver for the continent’s future development, global experts urge. This deficit, accrued between 1992 and 2020, reflects the continent’s imbalance between earnings from timber exports and expenditures on imports of wood-related products, they said during a panel discussion to commemorate this year’s International Day of Forests on March 21.
The experts called on development partners to support investment in Africa’s timber processing capacity and a continental wood marketing information system. The discussions, titled “Forests and Innovation: New Solutions for a Better World,” centered around a report released by the African Development Bank’s African Natural Resources Management and Investment Centre entitled “Regional timber trade flows and trends in Africa.”
USAID Launches the Africa Trade Desk through Prosper Africa (USAID)
Today, Deputy Administrator Isobel Coleman announced the launch of the Africa Trade Desk, a signature trade platform from Prosper Africa that links large U.S. food retailers to African producers. The announcement was made during the Atlanta Phambili: A Trade & Investment Gateway to Africa & South Africa event, an event highlighting the economic relationship between the United States and Africa, with a spotlight on South Africa.
The Africa Trade Desk, a public-private partnership between Prosper Africa and Afritex Ventures, is set to facilitate at least $300 million in export sales between Africa and the United States within the next 18 months. The Africa Trade Desk bridges the gap between African suppliers and U.S. retailers by establishing a secure supply chain from Africa to U.S. retailers by consolidating logistics, insurance, and track and trace technology from farm to retailer.
Initially, the focus will remain on specialty food products such as seafood, peppadews, stone fruit, citrus, and high-value herbs and vegetables. This initiative aggregates products from African suppliers, secures firm orders from its established network of U.S. buyers, and accesses financial resources to fund large orders.
Fossil fuel-focused Africa Energy Bank on track to start this year (The East African)
The proposed Africa Energy Bank, which will focus investment in oil and gas projects across the continent, is set to start operations later this year with an initial $5 billion authorised capital base, a senior official said on Wednesday. The bank, a partnership between Afreximbank and the African Petroleum Producers Organisation (Appo), is meant to help plug a funding gap in Africa amid pressure on major banks from environmental groups to shift investment dollars away from climate-warming oil and gas projects.
Ghana on Friday deposited just over $20 million to the Africa Energy Investment Corporation (AEICORP), becoming the third African country to pay after Africa’s top two crude oil producers, Nigeria and Angola, each deposited $10 million last year to help fund the bank. “Africa Energy Bank is on the verge of becoming a reality and should be operational during the second half of 2024,” Zakaria Dosso, managing director of AEICORP, said.
Greener practice is more sustainable (Ghana News Agency)
Mr Valdis Dombrovskis, Executive Vice-President of the European Commission for an Economy that Works for People and Commissioner for Trade, says transitioning to greener practice is more sustainable and its path of progress will benefit all. That, he explained, was part of the EU’s resolve to find the right balance between building a more sustainable future and pursuing trade policy to attain such a broader objective, drive innovation and create market access opportunities for green goods and services. The EU, he said for instance, was of the conviction that trade could and should be a driver for accelerating fair transition to a low-carbon and climate resilient economy.
Advancing shared prosperity through biodiversity-friendly trade (UNCTAD)
With one million species currently at risk of extinction, the state of global biodiversity loss spells trouble for nature and economies. The impact of losing bees and other wild pollinators, fisheries and forestry – just a fraction of natural resources at risk – could reduce global GDP by an estimated $2.7 trillion annually by 2030, according to World Bank simulations.
Kicking off the 7th BioTrade Congress in Geneva, UNCTAD and partners gave a renewed push for stronger trade policies and governance to help tackle the biodiversity crisis. Valued at $3.7 trillion, products with a biological origin represented 17% of global exports in 2021, according to the Trade and Biodiversity (TraBio) statistical tool, UNCTAD’s database that measures the international trade of biodiversity-based products. The economic stakes are even higher for low-income economies, with the share often surpassing 40% of their exports during the past decade.
With 783 million people going hungry, a fifth of all food goes to waste (UN News)
The UN Environment Programme’s Food Waste Index Report 2024 highlights that latest data from 2022 shows 1.05 billion tonnes of food went to waste. Some 19 per cent of food available to consumers was lost overall at retail, food service, and household levels. That is in addition to around 13 per cent of food lost in the supply chain, as estimated by the UN Food and Agriculture Organization (FAO), from post-harvest up to the point of sale.
“Food waste is a global tragedy. Millions will go hungry today as food is wasted across the world,” said Inger Andersen, Executive Director of UNEP, explaining that this ongoing issue not only impacts the global economy but also exacerbates climate change, biodiversity loss, and pollution. Most of the world’s food waste comes from households, totalling 631 million tonnes – or up to 60 per cent - of the total food squandered. The food service and retail sectors were responsible for 290 and 131 million tonnes accordingly.
UN global climate report: a stark reminder of the urgent need to leverage agrifood solutions (FAO)
There is an urgent need to transform agrifood systems and leverage their climate solutions, the Food and Agriculture Organization of the United Nations (FAO) has said in light of the findings of the latest UN State of the Global Climate Report.
The World Meteorological Organization-(WMO)-led report in collaboration with other UN agencies including FAO, shows how climate change indicators records including surface temperatures and greenhouse gas levels were once again broken in 2023. It also brings light on how extreme weather events are progressively affecting food security and agriculture, with wider socio-economic implications.
“The latest WMO report is a chilling reminder of runaway climate change and its impacts, including on food insecurity. Reversing this trend will require major investments in solutions that can help countries and communities build resilience to a changing climate, reduce record-breaking emissions and protect lives and livelihoods all at once. Nowhere are these solutions more abundant and impactful than in agriculture and food systems”, said Kaveh Zahedi, Director of the FAO Office of Climate Change, Biodiversity and Environment.
Quick links
Women in Trade, Treasury & Payments 2024 - Policy to practice: Addressing gender disparity in financial access (Trade Finance Global)
BRICS: Expansion of the BRICS (Friedrich Naumann Foundation)
Is India really leaving BRICS? - Here is what we know (CryptoRank)
Anti-Corruption and Integrity Outlook 2024 (OECD)
Red Sea shipping disruptions likely to exacerbate the dire humanitarian situation in Yemen (FAO)
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Protectionism and shipping disruptions threaten agri trade (Farmer’s Weekly)
Solid business partnerships will become increasingly important to navigate market threats, according to Absa’s recently released AgriTrends Autumn 2024. While the impact of the COVID-19 pandemic has dissipated, Absa AgriTrends identified various other global and local megatrends that now threaten international trade. The first of these is a slowdown in globalisation, called slobalisation.
Protectionism directly affected South Africa when the EU introduced additional phytosanitary measures on citrus in 2022, which cost the industry around R200 million to execute. The US’s protectionist strategies also affected South Africa by increasing indirect costs, causing supply chain disruptions and inflationary pressure, and affecting purchasing power and market access, according to Absa AgriTrends. The report also highlighted the importance of South Africa’s inclusion in the Africa Growth and Opportunity Act (AGOA) of the US.
South Africa’s maize production to dip, but remain sufficient to cover local demand (Engineering News)
While South Africa’s maize production will be about 2.1-million tons lower this year, there is still enough to meet local consumption and supply neighbouring countries that are having difficult growing seasons owing to adverse weather, financial services firm Standard Bank says. According to the Crop Estimates Committee (CEC), South Africa is projected to produce 14.3-million tons of maize this year, compared with 16.4-million tons produced last year, which was also the second-highest crop on record.
With domestic consumption of maize averaging below 12-million tons every year, Standard Bank environment, social and governance and climate change investment analyst Dr Penny Byrne says the country should have enough maize to cover local demand and some demand from abroad, including from neighbouring countries such as Zambia, Botswana and Zimbabwe.
Mombasa port grows 12pc despite regional rivalry (The East African)
Container traffic through Kenya’s main port serving several countries in the region grew by 11.9 percent in 2023 on the back of a resurgent trade and economic activity, its operator Kenya Ports Authority (KPA) has said. Traffic through Mombasa port is observed as an indicator of activity in the region’s economies. Apart from Kenya, it handles cargo to and from Uganda, Burundi, Rwanda, South Sudan, the eastern DRC and Somalia.
“Despite global uncertainties, the port of Mombasa has demonstrated significant growth in 2023. This is a testament to our commitment to operational excellence and efficiency,” he said on the Mombasa port performance. By weight, the Mombasa port handled 35.98 million tonnes of cargo in 2023, up from 33.88 million the previous year. Transit traffic — destined for countries other than Kenya — rose 11.5 percent to 11.41 million tonnes in 2023. “This growth underscores the port’s strategic importance in facilitating trade flows within the East African region,” Mr Ruto said.
Farm produce stuck due to ship shortage (The East African)
Tea, coffee, avocado and fresh produce farmers in Kenya are staring at losses as the wars in the Middle East and Ukraine continue to disrupt export routes. The Mombasa and Dar es salaam ports have lately recorded a shortage of refrigerated containers (reefers) and normal containers, blamed on delays caused by longer cargo delivery time.
Increasing attacks on major ships through the Suez Canal, which is a key route to the East African coast, have forced two of the world’s largest shipping groups — Mediterranean Shipping Company and Maersk — to divert their vessels via South Africa, extending the transit time by two weeks. Shippers have termed the disruption as grave, considering Kenya’s bumper avocado harvest beginning February.
Shippers Council of Eastern Africa acting chief executive Agayo Ogambi termed lack of reefers a big concern. “The shortage will affect exports of avocado and other fresh produce,” Mr Ogambi said. According to avocado exporters, the disruption has affected scheduled export dates, forcing some to suspend harvesting to mid-April when reefers are expected to arrive. Maersk, which handles more than 80 percent of Kenyan fresh produce confirmed delays.
Kenya’s Water and Sanitation Investors Conference 2024, held in the capital, Nairobi, concluded with a call for accelerated investment towards universal access to water and sanitation by 2030. The March 6-8 conference underscored the need for collaboration to support governments in bridging the financing gap through private sector funding, blended financing from commercial banks, Development Finance Institutions, and capital markets. Kenya requires about Ksh 995 billion (around $7.5 billion) to achieve universal access to water and sanitation by 2030.
Kenya, Tanzania push for anti-counterfeit law in EAC (The Star)
The East African region is planning to set a common standard on goods across the block to fight counterfeits. The latest push follows an earlier attempt under the 2011 Anti-Counterfeiting Bill that collapsed at the East African Legislative Assembly. Kenya’s Anti-Counterfeit Authority (ACA) and the Fair Competition Commission (FCC) of Tanzania have announced joint efforts to disrupt and combat the trade in counterfeit goods across the region. The partnership will see among others, regulation changes to harmonise the areas of conflict in the current laws of the two countries.
Anti-Counterfeit Authority Executive Director Robi Njoroge said the renewed partnership opens avenues for law enforcement agencies to develop innovative approaches and strategies in combating counterfeit trade. “The first step we want is to have the East Africa Anti-Counterfeiting Bill that will allow harmonisation of the laws not only in Kenya and Tanzania but our sister states, Uganda, Rwanda, Burundi, DRC, South Sudan...that’s something we are working on,” said Njoroge.
Kenya allows electronic IPOs to boost efficiency and confidence (The East African)
Kenya’s Capital Markets Authority has opened a window for new firms to list on the Nairobi Securities Exchange through an electronic process to reduce time and cost of initial public offerings (IPOs). This is part of reforms that the markets regulator and other stakeholders are implementing to inject fresh interest in the bourse, which attracted a quick succession of listings during President Mwai Kibaki’s administration.
“Electronic IPOs are more efficient. You know the IPO process is quite cumbersome — that is the reconciliation process and the refunds process and all those kinds of things. If this process can be automated, it becomes quite quicker and cleaner. It is very welcome. It also gives you an opportunity, in some cases, what they do is you can actually do a first come, first served basis and help to eliminate the issues of refunds,” Mr Mwai said.
How Kenya can boost agricultural productivity with fertiliser subsidy (Business Daily)
To assess the impact of the NFSP on farm productivity, researchers collected data in main maize producing counties and conducted appropriate econometric analysis to isolate the effect of fertiliser subsidy on maize yield by accounting for other factors such as seed, rainfall, access to credit, irrigation, gender, education, etc. These initiatives have evolved over the years, from targeted programmes for resource-poor farmers to broader, non-targeted schemes like the National Fertiliser Subsidy Programme (NFSP) implemented in 2022 to boost food production and stabilise prices in the wake of global supply chains disruptions related to the Russia-Ukraine conflict and the Covid-19 pandemic.
Wars threaten US interests in Africa, report says (The East African)
China and Russia could still be the biggest rivals of American interests especially in Africa, a public assessment of threats to Washington shows. The report compiled by the American intelligence community names the expected enemies: China, Russia, Iran and North Korea. But it also lists Houthis and the conflict in Gaza among threats to watch out.
The 2024 Annual Threat Assessment report published last week is a summation of threats seen from January to date, which means it reflects the most recent incidents on global scale like the Israel-Hamas war, Russia-Ukraine war, Sudan war as well as trouble in the Red Sea. The US further identified Africa’s vulnerability to terrorism as a threat to its own interests.
Brazil keen on increasing trade with Zimbabwe (The Herald)
Brazil is keen on expanding its relations with Zimbabwe to the fields of education and health following successes recorded in the agriculture sector, its Secretary for Africa and Middle East in the Ministry of External Relations of the Federative Republic of Brazil, Ambassador Carlos Duarte has said. He said this during the opening of the inaugural session of political consultations between Brazil and Zimbabwe in Harare yesterday.
“I am very pleased in the case of Zimbabwe to recall the progress we have achieved in the two technical cooperation projects that we have been involved with this country, both in the area of agriculture, as you have pointed out, and I am also happy to notice that Zimbabwe has already sent its comments on the final text of a third envisaged project regarding exports of flowers and ornamental plants, which can be one of the few projects in which Brazil will be receiving assistance from a developing country.
Mauritius most suitable gateway for Indian investors to Africa: Minister (The Economic Times)
Soomilduth Bholah, Minister of Financial Services and Good Governance, Mauritius, on a recent visit to India strongly urged the Indian investors to use the island country as a gateway to access the emerging African markets given Mauritius expertise on the continent. Bholah undertook an ‘India Business Mission’ from March 14 to March 23 covering New Delhi, Chennai, Hyderabad, and Mumbai. Speaking to ET in New Delhi the Minister urged investors and companies in India to set up their office in Mauritius to operate in Africa. “Mauritius is part of several regional groupings in Africa. We have strong understanding of African markets, resources and political systems and can guide Indian investors about investing in Africa.”
Nigeria Customs suspends 25% penalty on improperly imported vehicles (Premium Times Nigeria)
The Nigeria Customs Service (NCS) has announced the suspension of the 25 per cent import duty penalty on improperly imported vehicles. The directive for the suspension came from the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and is said to be part of strategies to help rejuvenate the economy and ensure compliance. The National Public Relations Officer of the Nigeria Customs Service, Abdullahi Maiwada, made this known in a statement on Friday.
“The Nigeria Customs Service (NCS), under the directives of the Honourable Minister of Finance and Coordinating Minister of the Economy, has initiated a 90-day window, effective from 4th March 2024 to 5th July 2024, for the regularisation of import duties on specific categories of vehicles. “To ease economic hardship and encourage compliance, the Honourable Minister and Coordinating Minister of the Economy has approved the suspension of the 25% penalty previously imposed in addition to import duty on improperly imported vehicles,” the official said.
The Board of Directors of the African Development Bank Group approved a $50 million loan for the Yobe State Environmental and Climate Change Action Project (ECCAP) to enhance climate change resilience, boost food security, and improve livelihoods for over 3.5 million people in northeast Nigeria. The project cost is estimated at $101.34 million with the African Development Bank providing a $50 million loan while the Arab Bank for Economic Development in Africa (BADEA) is expected to provide $30 million in co-financing. Yobe State Government will contribute $4.52 million in counterpart funding, and project beneficiaries are contributing $16.82m
New Report to Address Poverty in Liberia Launched (World Bank)
The World Bank has launched a new report titled Liberia Poverty Assessment 2023 Report: Towards a More Inclusive Liberia. The report highlights that while 3 out of 10 people in Monrovia are living in poverty, the situation is significantly worse in rural areas, where 8 out of 10 individuals were affected by poverty in 2016. This stark disparity between urban and rural areas poses a significant challenge to poverty reduction efforts in Liberia.
The report describes Liberia as one of the world’s poorest countries, having experienced a volatile growth trajectory marked by challenges of fragility. Despite possessing significant natural resources such as gold, iron ore, and plenty of land, Liberia’s economic performance has been unstable, largely hindered by conflict and reliant on exports of primary commodities. This resource-driven growth model has failed to generate sufficient employment opportunities for Liberians or foster broad-based growth and development, further exacerbating the country’s poverty and economic challenges.
Mauritania: eTrade Readiness Assessment (UNCTAD)
The eTrade Readiness assessment (eT Ready) of Mauritania is the thirty-sixth assessment conducted by UNCTAD. It provides a detailed diagnostic of the e-commerce ecosystem in Mauritania pinpointing both obstacles and prospects for its advancement. It also provides a set of key policy recommendations to address those challenges and to seize the opportunities arising from digitalization. Trade logistics and trade facilitation are major challenges. The lack of a reliable physical addressing system negatively impacts the quality of last-mile delivery services of products ordered online. Facilitating international trade and digitalizing related administration and logistic procedures are perceived as the most pressing factors for fostering cross-border e-commerce development.
Advancing Coordinated Border Management: Strategies for Efficiency and Competitiveness (COMESA)
Borders serve as crucial points where various agencies act as gatekeepers to territorial boundaries, with Customs authorities and other border management agencies playing essential roles in community protection. There is a notable shift towards facilitation and competitiveness through the implementation of Coordinated Border Management (CBM) programs. CBM aims to enhance efficiency and competitiveness by facilitating legitimate trade and travel while ensuring predictable and streamlined clearance procedures.
In the COMESA region, CBM is being implemented under the Trade Facilitation Project, funded by the European Union under the EDF 11 program. Previous efforts to facilitate trade within COMESA have not yielded significant results, as intra-COMESA trade flows remain low at around 10%. The COMESA Medium-Term Strategic Plan 2021-2025 aims to raise this figure to 25%. “Effective implementation of CBM is a crucial strategy that can significantly contribute to achieving this ambitious goal,” remarked COMESA Director of Trade, Dr. Christopher Onyango, during his address at the Coordinated Border Management Implementation Workshop held in Lusaka, Zambia, on March 20 – 22, 2024.
The African Pharmaceutical Technology Foundation (APTF) and Nigeria’s National Institute for Pharmaceutical Research and Development(link is external) (NIPRD) will work together to revolutionize the country’s pharmaceutical and vaccine manufacturing industry. The decision was announced by the two organisations following a High-Level Dialogue on Technology Gaps in Nigeria’s Pharmaceutical and Vaccine Industry’ hosted in Abuja from 18-19 March. The APTF will work with countries such as Nigeria to help them achieve Good Manufacturing Practices (GMP) to ensure they meet World Health Organization standards, and to build local capacity and specific skills to strengthen domestic production of medicines.
Key Statistics and Trends in Trade Policy 2023 (UNCTAD)
With the notable exception of the increase in bilateral tariffs between the United States of America and China, tariffs applied to imports have been largely constant declining during the last few years, with tariff protection remaining a significant factor in some sectors and markets. As of 2022, trade costs directly related to tariffs remained stable at about 2 per cent for developed countries and about 4 per cent for developing countries. Tariff restrictiveness remains substantial in many developing countries, especially in South Asian and African countries. Moreover, tariffs remain relatively high in some sectors where tariff peaks are present, including some of key interest to low-income countries such as agriculture, apparel, textiles, and leather products. Tariffs also remain substantial for most South–South trade.
Red Sea crisis: Adverse impact on trade data to be substantial in new fiscal; Asia, Africa, Europe to face most disruption, says GTRI (Financial Express)
The Red Sea crisis is expected to adversely impact trade volumes in a substantial way in 2024, said a report by GTRI, adding that rising shipping, and insurance costs, delayed arrival of shipments will continue to disrupt global value chains, squeeze margins and make exports of many low margin products unviable from current locations. Countries like Asia, Africa and Europe will face the most disruption across industries. Started in a major way on October 19, 2023, the Red Sea crisis is in its fifth month now.
The Red Sea shipping crisis has disrupted global trade and supply chains, particularly affecting routes through the Suez Canal, which handles about 30 per cent of global container trade. With ships now detouring around Africa’s Cape of Good Hope, transit times have gone up by 30 per cent and the global container shipping capacity too has dropped by about 9 per cent, said GTRI. This detour delays shipments from Asian producers to European consumers by up to 20 days.
Better data needed to green the digital transformation (World Bank Blog)
The rapid expansion of digital technology has already resulted in a major rise in energy consumption. This underscores the urgent necessity to address the environmental consequences associated with this sector. A new report from the International Telecommunication Union (ITU) and the World Bank, ‘Measuring the Emissions & Energy Footprint of the ICT Sector: Implications for Climate Action,’ presents a comprehensive analysis of the energy and emissions landscape across 30 countries. The report examines connectivity networks, data centers, and consumer devices, offering insights into the current environmental impact of the information and communication technology (ICT) sector. It also explores policy and regulatory implications through detailed case studies from France, the United Kingdom, Brazil, and Rwanda.
Conflict and violence remain the main drivers of displacement and movements in sub-Saharan Africa in 2022, exacerbated by increasing climate shocks and hazards, according to a new report launched today by the International Organization for Migration (IOM) and the African Union Commission (AUC). The report, which is the second edition of the Africa Migration Report, highlights that migration primarily occurs within the Africa continent, rather than beyond its borders.
The interlinks between migration drivers in Africa, including economic disparities, political instability, and the impacts of climate change is also emphasized in the report. Prolonged drought in the Horn of Africa and severe seasonal flooding across the continent evidently led to record internal displacements in 2022, adding to the fact that many African countries experienced conflict and climate events at the same time.
Development banks urged to invest more in power, transport infrastructure (BusinessWorld Online)
Multilateral lenders should make more investments in power and transport infrastructure to meet the United Nations’ sustainable development goals (SDGs), according to the European Investment Bank (EIB). “In the coming years, emerging markets will require significant infrastructure investment to facilitate economic growth, respond to demographic and urbanization pressures and meet the sustainable development goals,” the EIB said in its Global Emerging Markets Risk Database Consortium report.
Investment in the global infrastructure market is valued at around $1 trillion a year, though the unmet need is estimated at $2-4 trillion. More than half of the total investment demand would be allocated to finance generation, capacity, transmission and distribution networks in countries’ power sectors. It would also be needed for investment in transport (roads, ports and airports) and telecommunications.
WTO members examine ways to support smooth transition after graduation from LDC status (WTO)
Welcoming the decision on LDC graduation reached at the 13th WTO Ministerial Conference, WTO members shared experiences at a meeting of the Sub-Committee on Least Developed Countries (LDCs) on 25 March on how to support LDCs as they graduate from the LDC category. “It is very encouraging to see that WTO members have shown commitment to support a smooth transition for graduating LDCs,” said the newly elected chair of the Sub-Committee, Ambassador Ib Petersen of Denmark.
Members make progress with SPS Agreement Sixth Review, discuss trade concerns (WTO)
WTO members made progress with the Sixth Review of the Operation and Implementation of the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) and addressed a high number of trade concerns at a meeting of the SPS Committee on 20-22 March. Members also took note of the Declaration adopted at the 13th Ministerial Conference (MC13) in Abu Dhabi on the implementation of special and differential treatment (S&DT) provisions of the SPS Agreement and the Agreement on Technical Barriers to Trade (TBT).
Quick links
High dependence on commodity trade challenge to AfCFTA — Stanchart report (Graphic)
Rising from the Ashes: Tigray’s industrial renaissance amidst war’s toll (Addis Standard)
BRICS development bank aims to make $5 billion in loans in 2024 (CGTN Africa)
Digital Money, Carefully Managed, Can Aid Pacific Island Growth and Equality (IMF)
UN Women welcomes the adoption of robust blueprint to end women’s poverty (UN Women)
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Call to transform the biodiversity sector (SAnews)
Minister of Forestry, Fisheries and the Environment Barbara Creecy has called for the urgent transformation of the biodiversity sector. “This transformation must ensure the meaningful and equitable inclusion of rural communities and previously disadvantaged individuals into the biodiversity economy, and biodiversity conservation and sustainable use in general,” Creecy said on Monday.
Leading the inaugural Biodiversity Economy and Investment Indaba in Boksburg, the Minister said such inclusion is critical for sustainable rural socio-economic development to address the triple burden of poverty, inequality and unemployment. “This requires new approaches such as investment in community owned land for conservation compatible land-use with biodiversity-based enterprises, more inclusive processes, opening up of value chains, and ensuring equitable and inclusive access and benefit flows.
First-quarter agriculture sentiment largely influenced by droughts, public infrastructure deterioration (Engineering News)
The Agricultural Business Chamber (Agbiz) and Industrial Development Corporation’s Agribusiness Confidence Index (ACI) has remained unchanged in the first quarter of the year at a level of 40. This followed a deterioration of ten points to 40 in the fourth quarter of last year.
The ACI remains below the neutral 50-point mark, which implies that South African agribusinesses remain downbeat about business conditions, mostly owing to persistent port issues, poor rail infrastructure and worsening municipal service delivery. Other factors such as the El Niño-induced drought devastating summer grains and oilseeds in some regions; rising crime rates; lingering animal disease challenges; persistent loadshedding; and the uncertain policy environment ahead of elections, also continue to weigh on sentiment.
The volume of export subindex fell by seven points to 35 in the first quarter of the year, which signals the potential decline in export volumes this year – from a record $13.2-billion of exports in 2023.
Defence PS Attends The Second Session Of The Kenya-China Investment Forum Ahead Of The Focac Summit (Ministry of Defence – Kenya)
Defence Principal Secretary, Mr. Patrick Mariru, and his counterpart in the State Department for National Treasury, Dr. Chris Kiptoo participated in the Second Session of the Kenya-China Joint Commission on Trade, Investment, Economic, and Technical Cooperation. They were joined by a Chinese delegation led by Assistant Minister of Commerce, Mr. Tang Wenhong.
During the session held at a Nairobi hotel, the discussions centered around the implementation of nine programs resulting from the 8th Ministerial Conference of the Forum for China-Africa Cooperation (FOCAC) by the Government of Kenya. Additionally, priority bilateral cooperation areas were explored with the aim of strengthening the already robust Kenya-China bilateral relations for the benefit of citizens from both states.
The forum also served as a planning platform for the proposed upcoming FOCAC summit scheduled to take place later this year in Beijing.
Kenya-Uganda oil tiff: Dodoma offer Kampala can’t refuse (Nation)
Tanzania has seized a momentous opportunity in the Kenya-Uganda stalemate over oil importation with a raft of offers that Kampala cannot refuse. The EastAfrican understands that President Samia Suluhu Hassan’s government has offered to register Uganda National Oil Company (Unoc) to use the Dar es Salaam port in the importation of fuel for Uganda as Kenya sticks to its guns on Uganda’s demands.
Meanwhile, a case that Kampala lodged at the East African Court of Justice (EACJ) awaits determination, with no set timelines although various sources have indicated a willingness by Uganda to withdraw it, on which Kenya is banking. Presidents William Ruto, Yoweri Museveni and Samia recently converged in Zanzibar -- rare tripartite meeting reportedly requested by Uganda, people close to the discussions say, to seek assurance of Uganda’s smooth importation of petroleum and other products.
And while Kenya offers Uganda a pass through the Northern Corridor, it seems to insist on local regulatory processes, saying they are legal under Kenyan law. Nairobi is also opposed to Uganda’s decision to take the matter to the regional court.
Tanzania and Rwanda to open new border point (The East African)
Rwanda and Tanzania are moving to open a new border post, as the two countries deepen trade ties at a time trade and political forces pull regional partners in different directions. The new post will be opened at Tanzania’s Kyerwa district in Kagera Region to provide a second passage for people and goods and reduce pressure on the Rusumo border post. Tanzania’s Minister of Foreign Affairs and East African Cooperation, January Makamba, said this in Kigali during his recent four-day visit to Rwanda.
“We want to make it easy for people of the two countries to cross and visit each other,” he said. “We have talked about the possibility and readiness to open a new border front in Kyerwa, and we are ready to have it operational.”
South Sudan orders new tracking measures for transit cargo (The East African)
About 1.5 million metric tonnes of cargo passing through Mombasa port to South Sudan will have to be tagged before leaving the country in measures to control illegal, undeclared goods. South Sudan Minister of Finance and Planning Dr Bak Barnaba Chol has informed shippers on the new tracking measures by Electronic Cargo Tracking Note (ECTN). The country has appointed Invesco Uganda Ltd, under supervision by the Customs Revenue Division of South Sudan Revenue Authority, to start and run the programme.
“The sole purpose of the ECTN is to help the government of South Sudan to maximise its revenue collection by remedying the challenges of underestimation, undervaluation, diversion of cargo and round tripping,” Dr Chol said.
All importers and exporters will pay the agent’s service charge of $350. ECTN also known as Waiver Certificate is a mandatory shipping document for importing cargo to 25 African countries. The cargo tracking note is designed to provide local customs authorities with the required information and visibility about the import shipment. But Kenyan clearing and forwarding agents have said it will increase the cost of transport and that payments should be made to the South Sudan agents not Kenyan brokers.
Trade policy review - Angola 2024 - Concluding Remarks by the Chairperson (WTO)
Members appreciated Angola’s efforts to improve its business climate, including measures to reform taxes, ease visa requirements, implement a single window for investment, and establish a regime for free trade zones. Members welcomed steps to simplify and modernize Angola’s customs procedures, including those taken to implement the WTO Trade Facilitation Agreement, which Angola ratified in 2019.
The World Bank Group’s new Country Climate and Development Report (CCDR) for Liberia explores the mounting risks that climate change could undercut Liberia’s economy and push more Liberians into poverty. Highlighting the role of proactive action, the report calls for adaptation and better planning for low-carbon growth, land use, and investment.
While Liberia is among the lowest emitters of greenhouse gases responsible for global climate change, it is among the most vulnerable countries to climate impacts. For instance, rice – Liberia’s main staple – is highly reactive to increased humidity, extreme temperatures, heavy rainfall, and the pests that flourish under these conditions. The CCDR finds that Liberia’s rainfed rice production could be reduced by up to 13 percent over 2041-2050 from climate change compared to the baseline scenario. The resultant decrease in income and heightened reliance on costly imports could exacerbate poverty and food insecurity for many Liberian households.
Sierra Leone Records Progress in Human Capital Development (World Bank)
Sierra Leone has made commendable strides in improving human capital development with the government demonstrating a strong commitment to enhancing the well-being and productivity of its population through significant investments in health and education, according to a new World Bank report launched today in Freetown. The report also highlights the prioritization of social protection interventions like cash transfers to extremely vulnerable groups as a notable intervention aimed at reducing poverty and building human capital.
The Sierra Leone Human Capital Review: Maximizing Human Potential for Resilience and Inclusive Development, provides critical insights into the country’s efforts to foster human capital development and economic growth. The report examines the current state of health, education, and social protection systems in the country and offers recommendations to enhance the effectiveness of human capital investments.
Goldstar Air to enhance cargo movement across the continent under AfCFTA (GhanaWeb)
Wholly-owned Ghanaian airline, Goldstar Air aims to enhance cargo movement across the continent under the Africa Continental Free Trade Area (AfCFTA) initiative. Each year, more than 52 billion tonnes of cargo are shipped by air, creating a constant demand for industry jobs. As an indigenous airline, our vision extends to operating over one hundred aircraft and generating sustainable job opportunities for Ghanaians to connect African businesses and capitalize on the opportunity presented by the Africa Continental Free Trade Area, with a staggering 44 million Small and Medium- sized Enterprises (SMEs) across Africa.
The continent possesses the resources to make significant economic strides, and the Africa Continental Free Trade Area aims to eliminate trade barriers, representing a significant opportunity for Africa to assert itself on the global economic stage. Therefore, the airline has introduced Afrik Allianz, a multi-model single air transportation alliance connecting Africa and beyond.
Why travel within Africa is expensive despite visa openness initiative (Businessday Nigeria)
Despite the continent’s allure with its stunning landscapes from the majestic Victoria Falls in Zimbabwe to the pristine beaches of La Digue in Seychelles, the costs of intra-Africa travel rate remains one of the highest globally when compared with other regions. This stems from a myriad of factors, from economic struggles to colonial legacies, amid visa openness initiatives allowing 54 African passports visa-free access to other nations.
For instance, airfares from Nigeria to popular African destinations range from N1 million to N6 million, pricing many potential travellers out of the market. Bernard Bankole, an aviation analyst, attributes these sky-high costs to weak African currencies, especially the naira, expensive aviation fuel and maintenance of air planes, as well as strained trade relations between African countries. He emphasised the need for seamless intra-continental trade and cooperation to make travel more affordable.
FTA talks with SACU nations on the cards after new govt takes over (Business Standard)
Discussions for a free-trade agreement (FTA) between India and the five-member South African Customs Union (SACU) nations may begin after the new government takes over in June, two people aware of the matter said. The customs union includes South Africa, Namibia, Botswana, Lesotho and Eswatini. After the Lok Sabha elections, India plans to reach out to SACU nations to launch trade talks, one of the persons cited above said. Last year, discussions on the terms of reference were initiated, but not much progress was made thereafter.
Bottlenecks stagnating the EAC integration amid fresh lobbying (The Standard)
The regional private sector has noted with concern the slow integration of the East African Community (EAC), which has now informed a renewed intent to re-strategise their lobbying efforts. The services sector will now be prime owing to some of the bottlenecks businesses in the region have faced when trading in goods.
The East African Business Council (EABC), which is the regional lobby body for the private sector, recently held a two-day meeting in Nairobi, together with the East African Community (EAC) and other partners to devise new ways of advancing the integration agenda. The meeting was aimed at revamping the Technical Working Group for this purpose. It was noted in the meeting how some of the tools put in place to reduce trade barriers and increase regional exchange of goods and services are not working. This is the reason why intra-EAC trade stands at 15 per cent.
DRC Minister visits COMESA: affirms commitment to regional integration (COMESA)
The Minister of Regional Integration in the Democratic Republic of Congo, Hon. Antipas Mbusa Nyamwisi visited the COMESA Headquarters in Lusaka, Zambia on Friday 22 March 2024 and held discussions with the Secretary General, Chileshe Mpundu Kapwepwe. The discussions focused on key developments in the implementation of regional integration programmes that relates to the DR Congo, including an update on the COMESA Free Trade Area (FTA) which the country is poised to fully enlist.
Currently, the FTA has sixteen participating Member States while the DRC is in the process of tariff reduction that will pave way for its full participation once it is completed. “We will continue doing our best to advance regional integration,” said Minister Nyamwisi. “The DRC believes that as Africa and the COMESA region, we should avoid remaining isolated. We need each other by pooling our resources for the betterment of all people.”
The ECOWAS Commission reviews a draft action plan for its Integrated Maritime Strategy (EIMS) (ECOWAS)
In order to achieve the objectives of its Integrated Maritime Strategy, the ECOWAS commission is holding an interdepartmental meeting to review the draft Action Plan of the EIMS from 20 to 22 March 2024 at Abidjan, Cote d’Ivoire. The EIMS is a legal instrument that provides a comprehensive reference framework for actions to be taken by the various stakeholders at national and regional levels.
The general objective of this meeting, which brings together different ECOWAS departments; representatives of ECOWAS Regional Fisheries Centers, ECOWAS institutions and agencies and West African Fisheries Commissions, is to make sure that the technical departments adopts the SMIC Action Plan in order to ensure integrated and coordinated implementation in line with the mission of the ECOWAS Commission.
African Development Bank, IOM launch report on harnessing migration for development in Africa (AfDB)
The African Development Bank and the International Organization for Migration (IOM) today released a joint report designed to support practitioners and decision makers to turn migration into a force for development in Africa. The report, Diaspora Engagement, Climate-Induced Migration and Skills Mobility: A Focus on Africa examines the impact of migration on human development and poverty reduction. It provides insights to leverage the potential of the African diaspora, build climate resilience, and harness skills mobility to drive Africa’s development trajectory.
Africa Development Bank and the US government strengthen strategic partnership (AfDB)
Dr. Akinwumi Adesina, the president of the African Development Bank Group, has praised US President Joe Biden’s administration for its approach towards Africa particularly its emphasis on the development of quality infrastructure, which he described as the “backbone of every economy.” Dr Adesina was speaking on Tuesday when he received a delegation from the US Trade and Development Agency (USTDA) led by Director Enoh Ebong, at the Bank’s headquarters in the Cote D’Ivoire’s commercial capital, Abidjan.
The PGII initiative sees the US investing over $1.5 billion in various African projects, including digital access, agriculture, clean energy infrastructure, and the Lobito corridor for transportation corridor linking Zambia, Angola, and the Democratic Republic of Congo.
EU backs AU’s initiative for in-continent vaccine production (The Independent Uganda)
“Learning the lessons from the COVID-19 pandemic, the AU and the EU are committed to advance health systems and strengthen health capacities globally,” she said on March 20 in Brussels, “We are proud of the results achieved in increasing local manufacturing of medicines and vaccines in Africa, for Africa.” She said Team Europe’s (joint European Union approach that seeks to pool EU members’ resources and expertise to deliver more effective and greater impact) initiative on manufacturing and access to vaccines, medicines and health technologies in Africa has already mobilised over €1.3 billion in grants and loans.
Britain agrees $100mln trade finance to boost Africa food security (ZAWYA)
Development lender British International Investment said on Monday it had agreed a $100 million finance facility with the Eastern and Southern African Trade and Development Bank (TDB) to boost trade finance, farming and food security in the region.
The finance will help fund trade, including importing and exporting goods, on a continent where many debt burdened African economies face currency depreciation and rising debt and inflation compounded by issues such as climate change. Providing more capital to help bolster trade finance in the region is important as many international lenders have pulled back from offering it, leading to a finance gap of up to $120 billion a year, African Development Bank research shows.
Quick links
What mega-farming could mean for African economies (GIS Reports)
Global competition law and policy approaches to digital markets (UNCTAD)
Brazil’s ambitious G20 agenda is threatened by geopolitics (Arab News)
India wants WTO bodies to prioritise finance access, food security, tech (The Economic Times)
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$10-billion Namibian green hydrogen project receives major German boost (Engineering News)
Namibia’s first gigawatt scale green hydrogen project – the $10-billion Hyphen development scheme – this week received a major boost from Germany. The boost came in the form of the German government presenting a letter of intent to Enertrag, confirming the suitability of the project to be designated as a strategic foreign project. Hyphen Hydrogen Energy is a Namibian-registered joint venture between Enertrag and Nicholas Holdings.
Strategic foreign project designation renders projects eligible to receive targeted support – a status reserved for high-priority global projects of strategic interest to Germany. The project is seen as the first step of a large-scale green hydrogen industry in various regions in Namibia to support both economic growth in the Southern African country itself and to assist the world in achieving its decarbonisation goals
Hyphen and the Namibian government aim to begin construction in January 2025, with commissioning of the first phase by the end of 2026. Moreover, the Namibian government confirmed in June that it would take up a 24% equity stake in the project, which is targeting yearly production of one-million tonnes of green ammonia by 2027, and then the two-million tonnes by 2029, mostly for export.
Nigeria sustaining investments in digital technology, Tinubu tells META delegation (Premium Times Nigeria)
President Bola Tinubu says his administration is sustaining investments in digital technology to enhance the sustainability of small businesses, expand opportunities across sectors, and propel Nigeria to become the lodestar of information and communications technology in Africa. Speaking when he received a delegation from Meta Platforms Incorporated, led by Nick Clegg, former UK Deputy Prime Minister and Meta’s President of Global Affairs, at the State House in Abuja on Thursday, the president said Nigeria cannot afford to be left behind in this age of technological advancements; hence, his administration is opening up channels of opportunities in information and communications technology, deepening capacity, and fostering partnerships.
Digital platform to integrate small holder farmers in agriculture value chain (Kenya News)
Stakeholders in the Kenya Rural Transformation Centers Digital Platform (KRTCDP) project have for the last one year been collecting critical views from farmers on three key value chains of dairy, Irish potatoes and maize.
The project funded by African Development Bank (AfDB)project was launched a year ago and is being spearheaded by the Cooperative University of Kenya (CUK) to empower and integrate smallholder farmers and related stakeholders in the agriculture value chain into a digital platform.
How Rwanda will benefit from hosting Pan African Export Fund (The New Times)
The Afreximbank officially launched its domiciled Fund for Export Development in Africa (FEDA) in Kigali, on March 20, an impetus to the country’s positioning as a financial hub and an active participant of intra-African trade. FEDA was established to tackle Africa’s $110 billion financing gap for intra-African trade, value-added export development, and industrialization value chains.
Rwanda became the first among 15 African nations to ratify its establishment agreement, and is now hosting the $1 billion African Continental Free Trade Area (AfCFTA) Adjustment Fund managed by FEDA. As the country continues to attract international financial institutions through different initiatives like the Kigali International Financial Centre (KIFC), greater benefits can only be expected, with significant economic impact.
Trans-Zambezi among Africa’s safest corridors (New Era)
The Trans-Zambezi Highway officially known as the Walvis Bay-Ndola-Lubumbashi Development Corridor (WBNLDC) is without a doubt one of the safest corridors in Africa, as it eliminates the necessity for police escorts to accompany trucks moving valuable cargo along the corridor. To maintain this status, the Walvis Bay Corridor Group (WBCG) undertakes regular corridor assessments.
These were the views of WBCG CEO Mbahupu Tjivikua, who explained the economic benefits of the Trans-Zambezi highway during a recent interview with this reporter. ”Given the safety of the corridor and the fact that Namibia has the best quality roads in Africa, travellers are poised to experience the WBNLDC as not only safe but also efficient and reliable,” Tjivikua said.
He said the corridor has become one of the preferred trade routes for imports and exports in the region, consequently reducing the cost of doing business and enhancing intra-Africa trade in the region. The corridor is a major trade route linking the port of Walvis Bay in Namibia with the hinterland countries of Zambia and the Democratic Republic of Congo (DRC).
Positioning the Lobito Corridor as a Model for Foreign Investment (Energy Capital & Power)
In February this year the U.S. International Development Finance Corporation announced new financing in support of the Lobito Corridor – a transnational 1,300-km railway line linking Angola’s Port of Lobito with southern DRC and north-western Zambia. The U.S. and its partners – which include the European Commission, African Development Bank and Africa Finance Corporation – have already mobilized nearly $1 billion for the project, representing the largest single US and EU investment on the African continent in recent years.
The Lobito Corridor has been uniquely able to galvanize broad international support, primarily due to its alignment with the energy transition and economic ties to US and European markets. As a result, the project serves as a finance and development model for other large-scale African infrastructure projects seeking foreign investment and participation. The upcoming Invest in African Energy (IAE) forum in Paris will unpack this model, as it aims to connect Africa’s project pipeline with global investor interest. For Africa, infrastructure deals represent some of the most strategic transactions, able to trigger a “domino effect” on local job creation and the establishment of value-added industries.
East Africa rebrands energy summit to attract investments (The Citizen)
Potential energy investments in the East African Community (EAC) region will be rebranded under a recently signed deal. The partnership is intended to bolster the key economic sector through a platform that will increase the visibility of available opportunities. The deal was signed between the EAC and EnergyNet Limited, an entity based in London that profiles energy projects in the region. The EAC deputy secretary general in charge of infrastructure, productive sectors and political affairs, Andrea Maleuth, signed on behalf of the community.
The inking of the partnership comes nearly two months after the Tanzania Energy Cooperation Summit (TECS), which took place in Arusha. The summit, organised by EnergyNet with the support of an array of donors, was aimed at wooing more energy investors to Tanzania and other eastern African states. The partnership signed in Washington during the March 5th to 6th Powering Africa Summit gave TECS more responsibilities for energy development in the region.
“Energy is a pillar for development and growth and is crucial for the functioning of the economies of the EAC partner states. “The East Africa Energy Cooperation Summit will serve as the ideal platform for advancing projects and bringing tangible changes to the industry,” Mr Maleuth said. He added that energy was a crucial sector of the regional economies and a catalyst for the EAC’s industrialization strategy for 2012–2022.
EAC blue economy drive to benefit from €28 million fish project (The Citizen)
The blue economy drive in East Africa will benefit from the 28 million Euro project through increased fish output. Ecofish, the five-year project being implemented in four economic blocs in Africa since 2019, comes to an end later this year.
“We need fish to feed our population. The fisheries sector will also boost our blue economy,” said Mr Edward Rukunya, a fisheries expert. He said this here on Thursday when addressing a steering committee meeting of the programme being implemented in various countries. Mr Rukunya, the director of fisheries with the Lake Victoria Fisheries Organisation (LVFO), said that through the project, fishermen will be able to increase catches.
Within the East African Community (EAC) bloc, the project is being implemented around lakes Victoria and Tanganyika. The EAC region was allocated some four million euros (Euro 2 million each) for the two lakes’ basins out of 28 million euros for the continent-wide project. According to Mr Rukunya, the Lake Victoria basin was notorious for illegal fishing in all three riparian states.
A recent report by the East African Legislative Assembly (Eala) said the economic contribution of fisheries to national GDPs is only seen in raw harvests rather than in earnings. Statistics, though, show that the contribution of the fisheries sector to the partner states’ GDP has continued to increase. Currently, the sector contributes 1.75 percent to the GDP of Tanzania and 3.6 percent and 0.6 percent for Uganda and Kenya, respectively.
‘Settle all EAC partner states trade bills in local currencies’ (IPP Media)
Partner states in the East African Community (EAC) zone need to settle payments in intra-EAC trade in local currencies to mitigate the depreciation of the shilling to dollar, a regional executive has appealed. John-Bosco Kalisa, the East African Business Council (EABC) executive director, made this declaration at the CEOs roundtable meeting on East African integration and economic outlook for 2024 in Dar es Salaam on Wednesday.
East African countries mostly exceeded 5.0 percent growth levels during 2023, underscoring strong performance and diversified economies, while showing a low share of savings and tax to GDP which leads to budget deficit and higher borrowing, it cautioned
John Ulanga, the director of international trade at the Foreign Affairs ministry, noted that the EAC industrialisation strategy, transport inter-connectivity and trade facilitation are crucial elements to boosting intra-EAC and Africa-wide trade growth.
New Milestone in the AfCFTA-anchored Pharma Initiative’s engagement with Kenya’s Ministry of Health (UNECA)
The AfCFTA-anchored Pharma Initiative team of the Economic Commission for Africa convened a two-day meeting in collaboration with the Ministry of Health Kenya in Nairobi to review and provide comments on the Pooled Procurement Legal Instrument & Guiding Framework in preparation for the upcoming Ministerial Meeting to be convened by the ECA in May 2024 where the documents will be presented to the Ministers for signature and endorsement.
The deliberations resulted in concrete feedback and recommendations, that once compiled will be submitted to the ECA by the Permanent Secretary (PS) of the Kenyan Ministry of Health. On behalf of the technical team, the PS will submit the recommendations and briefs to keep the Minister of Health appraised prior to the forthcoming Ministerial Meeting of participating pilot countries.
The UNESCO biosphere reserve of Príncipe island was the site of the first international conference dedicated to biodiversity financing hosted by the Government of São Tomé and Príncipe, the Regional Government of Príncipe, in partnership with the United Nations and the African Development Bank.
Raising awareness of the challenges in mobilizing sustainable financing, the event held 14-15 March 2024, identified concrete mechanisms to generate additional financial flows anchored in biodiversity. It also showcased solutions that Mozambique, Rwanda, Seychelles and Cape Verde have found to attract innovative environmental finance and blended finance investments to support terrestrial (green) and marine (blue) conservation activities.
Diaspora, Climate-Induced Migration and Skills Mobility: A focus on Africa (AfDB)
The pursuit of better employment opportunities is a major drive for intra-regional migration within Africa and towards other regions outside the continent. In a post-pandemic era, it has become evident that safe, orderly, and regular migration can play a role in “building back better”. However, there is a need to strengthen capacities to gain a deeper understanding of how mobility can be optimized as a catalyst for the socio-economic recovery of an integrated Africa. When well-managed, migration can be a powerful strategy for human development and poverty reduction. It can further foster sustainable and equitable economies by introducing innovation, skills, knowledge, and remittances to both the countries of origin and destination. This dynamic can open new markets, create economic opportunities, and address labor market gaps, ultimately increasing productivity.
UNCTAD’s Global Trade Update shows encouraging signs amidst persistent challenges (UNCTAD)
After facing declines over several quarters, international trade is poised for a rebound in 2024, according to the latest Global Trade Update from the United Nations Conference on Trade and Development (UNCTAD).
In 2023, global trade saw a 3% contraction, equalling roughly $1 trillion, compared to the record high of $32 trillion in 2022. Despite this decline, the services sector showed resilience with a $500 billion, or 8%, increase from the previous year, while trade in goods experienced a $1.3 trillion, or 5%, decline compared to 2022.
The fourth quarter of 2023 marked a departure from previous quarters, with both merchandise and services trade stabilizing quarter-over-quarter. Developing countries, especially those in the African, East Asian and South Asian regions, experienced growth in trade during this period.
During 2023, trade performance diverged between developing and developed countries, with the former experiencing a decline of approximately 4% and the latter around 6%. South-South trade, or trade between developing economies, saw a steeper decline of about 7%. However, these trends reversed in the last quarter of 2023, with developing countries and South-South trade resuming growth while trade in developed countries remained stable.
BRICS: Egypt To Ditch The US Dollar in 2024? (Watcher Guru)
BRICS members Russia and Egypt were recently in talks as Russian President Vladimir Putin and Egyptian President Abdel Fattah al-Sisi reviewed agendas on the phone. During those talks, President al-Sisi shared his support for the newly re-nominated Russian leader and discussed multiple mutually beneficial projects. Among those plans, the new BRICS nation Egypt will look to ditch the US dollar in 2024 completely.
Egypt was one of five nations to accept an invitation to join the BRICS alliance at its 2023 summit. Subsequently, it has already firmly embraced its shift to local currency trade, ditching the US dollar. In the latest talks, the Egyptian President reinforced the country’s plan to follow Russia’s de-dollarization efforts.
Uneven development progress is leaving the poorest behind, exacerbating inequality, and stoking political polarization on a global scale. The result is a dangerous gridlock that must be urgently tackled through collective action, according to a new report released today by the United Nations Development Programme (UNDP).
The 2023/24 Human Development Report (HDR), titled Breaking the Gridlock: Reimagining cooperation in a polarized world, reveals a troubling trend: the rebound in the global Human Development Index (HDI) – a summary measure reflecting a country’s Gross National Income (GNI) per capita, education, and life expectancy – has been partial, incomplete, and unequal.
Global inequalities are compounded by substantial economic concentration. As referenced in the report, almost 40 percent of global trade in goods is concentrated in three or fewer countries; and in 2021 the market capitalization of each of the three largest tech companies in the world surpassed the Gross Domestic Product (GDP) of more than 90 percent of countries that year.
“The widening human development gap revealed by the report shows that the two-decade trend of steadily reducing inequalities between wealthy and poor nations is now in reverse. Despite our deeply interconnected global societies, we are falling short. We must leverage our interdependence as well as our capacities to address our shared and existential challenges and ensure people’s aspirations are met,” said Achim Steiner, head of the UN Development Programme. “This gridlock carries a significant human toll. The failure of collective action to advance action on climate change, digitalization or poverty and inequality not only hinders human development but also worsens polarization and further erodes trust in people and institutions worldwide.”
STDF promotes safe trade for development in Africa on International Francophonie Day (WTO)
An event held at the WTO to mark International Francophonie Day on 20 March highlighted how compliance with sanitary and phytosanitary (SPS) measures can foster economic growth, create jobs and promote international trade opportunities in Francophone Africa. The event was organized by the Standards and Trade Development Facility (STDF) in partnership with the International Organization of la Francophonie (OIF), the permanent missions of Cameroon, Canada and France, and the Committee Linking Entrepreneurship, Agriculture and Development (COLEAD).
In his welcome remarks, WTO Deputy Director-General Jean-Marie Paugam said: “It is more important than ever today to provide tangible support, through the STDF, to farmers, producers, traders, and governments of developing countries to overcome disruptions in global supply chains, maintain the smooth flow of trade, and ensure that countries can continue to be competitive in global markets”.
Quick links
Uganda state oil firm begins fuel sales after Kenya fallout (The East African)
EU’s carbon border tariff can be a catalyst for intra-Africa trade (Business Daily)
Margins to centre: AU in the G20 (+1) (ORF)
Resilient and Sustainable Food Value Chain Development Training Toolkit (UNDP)
General Assembly adopts landmark resolution on artificial intelligence (UN News)
