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SA agriculture grows sector at international show (Freight News)
South Africa is participating in the sixth International Exhibition of Agriculture and Animal Resources being held in Abidjan, Côte d’Ivoire. Known as the Salon International de l’agriculture et des Resources Animales (Sara), the bi-annual event brings together the agricultural expertise of Ivory Coast, the sub-region and the world. Sara aims to promote agriculture products, livestock farming, fishing, forestry, and the agro-food industry to an international audience.
Agriculture, Land Reform and Rural Development Deputy Minister, Mcebisi Skwatsha, is attending the event, which opened on Friday last week and will run until next Sunday. The minister’s department said the event was a pragmatic implementation of the African Continental Free Trade Area through inter-regional and inter-country value chain development.
Govt has N$53 billion import cover (The Namibian)
Namibia, a net importer of basic commodities, has international reserves of N$53 billion, which is equivalent to an import cover of 5,1 months. This is mainly due to foreign direct investment (FDI) flows from the disposal of equity by resident enterprises in the manufacturing sector, capital inflows from African Development Bank (AfDB) and KfW loans, as well as net foreign currency placement by commercial banks.
According to a statement issued by Bank of Namibia (BoN) spokesperson Kazembire Zemburuka, the country recorded a notable reduction in the current account deficit during the second quarter of 2023, primarily driven by improvements in both the secondary income and the merchandise trade balance.
“The current account deficit shrank to 4,4% of Gross Domestic Product (GDP), from 11,6% registered in the corresponding quarter of 2022. “This positive development was mainly attributed to a stronger merchandise trade balance, supported by increased receipts from the secondary income account, driven by a substantial rise in Southern African Customs Union receipts and reduced outflows in the services account,” Zemburuka said.
IMF Staff Completes 2023 Article IV Mission to Namibia (IMF)
“On the back of sustained mining growth and recovery in tourism, real GDP growth reached 4.6 percent in 2022 and economic activity is expected to surpass the pre-pandemic level in 2023 with a growth of 3.2 percent. Nevertheless, unemployment remains elevated at 21 percent, and is particularly acute among the youth. For 2024 and the medium-term, growth path is expected to stabilize at just below 3 percent.
“The current account deficit widened in 2022 as the spike in fuel prices inflated the import bill. In 2023, the current account is expected to narrow reflecting the easing of fuel prices relative to 2022 and the recovery in the SACU revenues. International reserves are expected to increase moderately with external financing needs largely covered by foreign direct investment in mining and the ongoing oil and gas exploration.
“Going forward, implementing the authorities’ fiscal consolidation strategy is pivotal to preserve debt sustainability and protect against the volatility of SACU revenues, which represent a significant contribution to the budget.
Kenya, Uganda tighten controls of mining sector (The East African)
Kenya is following in the footsteps of Uganda in enacting legislation to reform its nascent mining industry to improve the state’s control and oversight of the critical industry. Uganda passed its Mining and Minerals Act in October last year and Kenyan lawmakers are considering changes to the Mining Act of 2016.
The Mining (Amendment) Bill that was tabled in parliament this September proposes establishment of a Mining Regulatory Authority to replace the current Mining Rights Board, and a Mining Rights Tribunal to deal with disputes resolution. The Mining Regulatory Authority – as opposed to its predecessor whose role was limited to advisory – will control the “exploration, extraction, production, processing, refining, transportation, storage exportation, importation and sale of minerals.”
According to the National Assembly’s Environment, Forestry, and Mining committee, the amendment will help improve efficiency in overseeing the mining industry by separating the functions of policy formulation from administration and dispute resolution.
Gov’t moves to build local expertise on critical minerals (The Business & Financial Times)
The Deputy Minister of Lands and Natural Resources responsible for Mines, George Mireku Duker, has instructed two agencies under the ministry to collaborate with the University of Mines and Technology (UMaT) to design educational programmes related to extraction, processing and governance of critical minerals.
The two agencies – the Minerals Income and Investment Fund (MIIF) and Minerals Commission (MinCom) – are to immediately work with UMaT on this to develop the framework for redesigning and strengthening the existing curricula. To this end, Mr. Mireku Duker specifically also asked that MIIF and MinCom take deliberate steps to provide scholarships to technical staff and some students for the study. The intention, he added, is to build regulatory capacity and local graduates to match the sophisticated interests of companies that will exploit these minerals in the future.
“We shouldn’t start mining lithium then a company goes to hire a metallurgist from country ‘A’ with the excuse of Ghana not having qualified personnel,” he said. The Deputy Minister, who was speaking at a stakeholder forum organised by MIIF in Accra, added that there is more to be done. The latest directive reflects concerns to address the growing importance of critical minerals in the context of energy transition, with an emphasis on education and collaboration between government entities and educational institutions to enhance expertise and ensure responsible resource management.
The critical minerals that the country continues to make discoveries of are likely to include those used in renewable energy technologies, such as lithium, bauxite and iron among others.
UN tips Kenya on jobs in solar power industry (The East African)
A bigger investment in skills development in solar market technology could help create jobs in countries such as Kenya through partnerships with foreign companies that control the industry, a United Nations agency has suggested. The UN Conference on Trade and Development (UNCTAD) has asked authorities to develop skills that will enable the youth to get jobs and increase participation of domestic companies in solar panel supply chains.
“Growth in the solar panel market provides a vast opportunity for the economy through private sector development and job creation. However, much of the market is held by internationally owned companies,” UNCTAD said in a new report. ”Most domestic companies operate in services, offering project-development services, consultancy, and after-sales services.”
Small traders took highest share of IFC’s Sh110bn funding to Kenya (The Star)
Small traders received the lion’s share of $754.8 million (Sh110 billion) disbursed to Kenya by the International Finance Corporation (IFC) in a year to June 30. This was through onward lending arrangements between the World Bank’s investment arm to ease credit to the sector perceived risky by commercial lenders.
IFC’s vice president for Africa Sergio Pimenta who has been in the country since last week told this writer that the corporation will continue to focus on sectors funded in the last financial year with more emphasis on climate financing.
“IFC provided record financing in Africa in fiscal year 2023, helping to accelerate the continent’s energy transition, develop greener manufacturing and increase intra-Africa trade,’’ Pimenta said. He added that the lender is keen to continue strengthening smaller businesses and boost local food production, including in more challenging fragile and conflict-affected regions.
Tanzania mulls Plan B for its SGR project as Turkish firm derailed (The East African)
Finance ministers from Tanzania and Zanzibar have embarked on fundraising for the standard gauge railway (SGR) project in the wake of the main contractor, Turkish firm Yapi Merkezi, showing signs of financial distress. This has raised concerns of further delays on the first three phases of the 2,100-km railway seen as crucial to place Tanzania in position as a key trade corridor for East and Central Africa.
Tanzania’s Finance Minister Mwigulu Nchemba was on a European tour over the past fortnight, during which he held talks with officials in several countries regarding their possible involvement in the SGR project, whose estimated total cost upon completion is $10.4 billion. Zanzibar Finance Minister Saada Mkuya managed to canvass a similar commitment from the African Development Bank (AfDB), which is willing to provide over $3 billion for the project.
Nigeria’s economic survival depends on non-oil sector – NEPC (Businessday NG)
With the ever-increasing challenges bedeviling oil production and distribution across the globe, Ezra Yakusak, chief executive officer, Nigerian Export Promotion Council of (NEPC, has said that Nigeria’s survival depended on non-oil sector of the economy. Yakusak made the observation Thursday in Aba, Abia State, at one-day capacity building workshop on ‘Accessing International Market, through Export Trade Houses’ organised by Abia State coordinating office of the Council.
Using the automobile and energy sectors for example, the NEPC’s chief executive officer noted that the world was gradually moving away from oil, as there is now electric cars in the automobile sector, solar power in the energy sector, among others, an indication that revenue from oil will no longer sustain any nation in the nearest future. Amaechi Okechukwu, head, Product and Market, Abia State coordinating office of NEPC, avowed that with the takeoff of the African Continental Free Trade Area (AfCFTA) that Nigeria, as the giant of Africa, was positioned to lead in the advocacy for increased intra-African trade.
Okechukwu, while presenting a paper titled ‘Understanding the concept of Export Trade House,’ affirmed that a Trade House was a veritable platform to increase the visibility of made-in-Nigeria products, boost export and increase forex inflow into the Nigerian economy.
Kenya joins pan-African platform that allows payments in local currencies (ZAWYA)
Kenya has joined the Pan African Payments and Settlement System (PAPSS), allowing companies in the East African nation to transact with counterparts in other countries on the continent using their local currencies. The Central Bank of Kenya signed the agreement that a cabinet minister said will be a big boost for African free trade as it will lower foreign exchange expenses associated with needing to use the US dollar or euros to make transactions.
“The Central Bank of Kenya has signed the instruments that have finally seen Kenya join the Pan African Payments and Settlement System (PAPSS),” Trade Cabinet Secretary Moses Kuria said on messaging service X, formerly known as Twitter. “This means that Kenyan companies can trade with their peers from other African Member States using our local Currencies, a major boost for the African Continental Free Trade Area (AfCFTA).”
AfCFTA: Public servants pose biggest threat to SMEs’ competitiveness (The Business & Financial Times)
Public servants – civil servants and government appointees – instead of playing a facilitation role for small- and medium-scale enterprises (SMEs) are competing with them and hijacking their opportunities, says the Centre for Regional Integration in Africa (CRIA).
It said it has identified public servants with the mandate of implementing government policies and providing timely and satisfactory services to all stakeholders, especially SMEs, to harness benefits of the African Continental Free Trade Area (AfCFTA) as one of the barriers to competitiveness of small businesses in Ghana and many other economies on the continent.
Chairman of CRIA, Nana Owusu-Afari, explained that public servants as well as government appointees in some countries, including Ghana, either have their own businesses or are fronting as agents to some private companies; hence diverting opportunities and support meant for SMEs to the wrong places.
Related: Creating Export Expansion Opportunities For SMEs To Boost Forex (Leadership News)
Capitalise on opportunities to grow businesses – AfCFTA to SMEs (Graphic Online)
Small and Medium Scale Enterprises (SMEs) have been encouraged to take advantage of opportunities that the African Continental Free Trade Area (AfCFTA) offers to create a buoyant economy for Africa. This was because SMEs remained the backbone of African economies and that they owned 90 per cent of enterprises and contributed around 80 per cent of the labour force in most countries.
The Chief of Staff of AfCFTA, Silver Ojakol, said there were a lot SMEs could benefit from AfCFTA which included building their small businesses into giant ones with over 1.3 billion people at their disposal to trade with.
Using Ghanaian businesses as an example, he said persons who engaged in shea butter business in the northern region, for instance, should not see themselves as engaging with only 30 million people, but rather 1.3 billion people with over 600 million being women who would be interested in their products.
Speeches at the Opening Ceremony of the Ministerial Retreat On African Union Agenda 2063 (AU)
Welcome Statement by Hon. Vincent BIRUTA, Minister of Foreign Affairs and International Cooperation of the Republic of Rwanda Kigali, 1st October 2023
This retreat comes at a very opportune time, enabling us to engage in collective brainstorming and to renew our commitment to monitoring the continental priorities of Agenda 2063. Ladies and Gentlemen, The AU Agenda 2063, serving as Africa’s blueprint for socioeconomic development, has demonstrated commendable progress in its first 10 years of implementation. Substantive advancements have been made to improve road network connectivity, Single African Air Transport Market (SAATM), electrification, access to ICT, gender equality, and the establishment of the AfCFTA, to name but a few.
While the continent has made notable progress during the first decade of Agenda 2063, we need to acknowledge that we are still facing considerable challenges in areas such as poverty reduction, job creation, free movement of people, and in ensuring a secure and peaceful Africa. These issues will require our full attention in the Second Ten Year Implementation Plan.
Ambassador stresses expanding coffee export to Japan (Ethiopian Press Agency)
Ethiopian coffee association, coffee growers and trade societies should play a significant role to expand coffee export to Japan and other countries thereby becoming more competitive in the sector internationally, so stressed Ambassador Daba Debele. Coffee is the highest source of foreign currency earnings in the country. Thus, besides government institutions, the role of Ethiopian coffee association, coffee growers and exporters is crucial.
The Ambassador made the above statements during the discussion held on the lessons drawn from the expo at the Embassy following the conclusion of World Specialty Coffee Conference and Exhibition 2023. Appreciating Embassy’s effort, Ethiopian Coffee Association President Desalegne Jenna, urged concerned bodies to come together and join force with the embassy to properly utilize the coffee sector.
Over 45 Ethiopian coffee growers and exporters took part at the event which is organized by the Specialty Coffee Association of Japan (SCAJ) while some 45,000 participants, coffee growers, exporters, importers and processors worldwide participated at the event.
Nigeria, African nations priotise to develop 620trn cubic feet of gas reserves (Vanguard)
Nigeria and other African nations have expressed commitment toward the development of their 620 trillion cubic feet of proven gas reserves, targeted at bolstering energy security, industrialization and environmental sustainability. The continent is also committed to the development and exploitation of its estimated 125.3 billion barrels of proven crude oil reserves.
This is even as Amni International, an independent oil and gas exploration and production (E&P) company moves to acquire new assets and explore growth opportunities across West Africa.
In a statement obtained by Vanguard, African Energy Chamber, AEC, stated: “Africa is prioritising the development and exploitation of its estimated 125.3 billion barrels of proven crude oil and 620 trillion cubic feet of proven gas reserves under efforts to bolster energy security, industrialization and environmental sustainability.
Huawei unveils $430m investment to boost digital Africa (Trade Arabia)
Huawei has unveiled a $430 million investment plan named ‘Intelligent Future’ for the Northern Africa region, encompassing the 28 countries located to the north of the equator within the African continent.
This grand five-year investment initiative, is allocated as follows: $200 million to establish the region’s first public cloud centre, offering over 200 cloud services, and an additional $200 million to support 200 local software partners and empower 1,300 channel partners. In term of talent development, Huawei will invest $30 million to train 10,000 local developers and educate 100,000 digital professionals, creating a skilled workforce to drive intelligent transformation in the region.
Terry HE, President of Huawei Northern Africa (North, West & Central Africa), revealed the company’s renewed strategy to guide Africa towards a ‘smart and connected future’ at the eighth edition of Huawei Connect in Shanghai.
Algeria says Niger accepts its mediation in resolving political crisis (Yahoo News)
Niger has accepted an Algerian offer to mediate in its political crisis, Algeria’s foreign ministry said on Monday, five weeks after the North African country proposed a six-month transition process led by a civilian. Algeria received Niger’s official notification of its acceptance of President Abdelmadjid Tebboune’s mediation initiative, the ministry said in a statement read out on national television.
In late August, Algerian Foreign Minister Ahmed Attaf said Algeria had spoken several times to Niger’s military leaders and proposed an initiative to return the country to normal constitutional order.It said it would propose guarantees for all sides in the crisis and host a conference on development in the Sahel region, without elaborating.
Coming up! European Union-East African Community MARKUP II launch (The Diplomatic Service of the European Union)
The launch of the European Union (EU) – East African Community (EAC) MARKUP II programme begins a new phase with the objective of supporting small agribusinesses and horticultural producers to compete in international markets. It focuses on value chains ranging from cocoa and coffee to avocados, spices, and tea.
In phase one, at least 115 companies achieved a collective $16 million in sales and exports. MARKUP I also helped draw in $1 million in investment for over 70 small businesses. Over 40 business support organizations shared that their work became more effective through their involvement in the programme. Over the last five years, the EU-EAC Market Access Upgrade Programme (MARKUP) supported small agribusinesses and horticultural producers to compete in international markets.
Building on these achievements, we are thrilled to announce the official launch of MARKUP II on October 3, 2023, in Arusha, Tanzania. This phase, running until 2027, aims to harness the full potential of agribusiness in the EAC partner states. The renewed efforts will prioritize sectors and value chains within the EAC, which lay emphasis on processing, value addition, diversification, investment, and export linkages.
Soaring sugar prices hit African nations the hardest (Engineering News)
Skyrocketing sugar prices are hitting some of Africa’s poorest nations particularly hard, forcing families and restaurants to forgo use of the ingredient that is core to local diets. Disappointing harvests from some of the world’s biggest producers have pushed wholesale prices near the highest in more than 12 years in September. While that’s adding to unrelenting inflation pressures across the globe, African nations are particularly vulnerable amid a heavy reliance on sugar imports and a shortage of US dollars.
Consumers in Rwanda, Uganda, Kenya and Tanzania are paying some of the highest prices for sugar in decades, made worse by tariffs on imports, according to data by Nairobi-based commodities research group Kulea. With energy prices also elevated and unemployment rising, the surging costs are causing headaches for families trying to feed themselves.
“The pain of higher prices isn’t being felt equally across the region – it’s falling most on poorer countries,” said Kulea’s head of research Willis Agwingi. The staple ingredient forms an important part of local food customs, and is also used in the pastries and sweets that surround Muslim celebrations. For many African households, “sugar remains one of the most affordable sources of calories,” according to Kona Haque, head of commodities research at ED&F Man. But surging prices are forcing consumers to spend less on soft drinks and forgo sugar that’s typically added to chai and other beverages, Agwingi said. Companies are also cutting back on purchases due to lackluster demand.
Farmers plant more cocoa outside Africa as prices rally (Reuters)
Production of the chocolate-making ingredient is expanding outside of the main growing area in West Africa as farmers in places such Brazil, Ecuador and Colombia see potential profit in the crop.
Schmidt Agricola is a large agricultural company producing soybeans, corn and cotton in Bahia, Brazil, one of the country’s new-frontier agricultural areas fit for large-scale, high-tech farming. It recently added a new crop to its fields: cocoa.
The rally in prices to the highest level in nearly 50 years is boosting that trend, which could alleviate the current supply tightness in the global cocoa market. It also poses a threat to the livelihood of small farmers in Africa since recently planted orchards such as the ones in South America are more productive, reducing the overall cost of production.
Digitally deliverable services boom risks leaving least developed countries behind (UNCTAD)
While digital delivery has the potential to empower skilled providers anywhere in the world to engage in trade, its benefits are not automatic. Many developing countries lack adequate infrastructure and financial resources to tap the potential of digitally delivered trade. And only a few countries directly measure the size and composition of trade in digitally delivered services. These include telecommunications and computer services, financial, insurance, pension and various business services.
To help plug this data gap, a new handbook by UNCTAD, the World Trade Organization, the International Monetary Fund and the Organisation for Economic Co-operation and Development sets out a common framework and practical guidance to help countries measure digital trade. Coordinated capacity-building is under way to support countries in this area.
Meanwhile, new UNCTAD estimates show that worldwide, exports of digitally deliverable services increased by 3% in 2022, reaching $3.94 trillion. This represents a moderation compared to the 16% increase in 2021 amid the COVID-19 pandemic. While developed countries still dominate trade in digitally deliverable services, the share of developing countries increased from 19% in 2010 to 24% in 2022, with China accounting for a notable portion.
DG Okonjo-Iweala: Trade is important for innovation, women’s economic empowerment, climate (WTO)
The role of trade in supporting women-led small businesses, addressing climate change and fostering innovation was highlighted by Director-General Ngozi Okonjo-Iweala at a workshop jointly organised by the Informal Working Group on MSMEs, the Informal Working Group on Trade and Gender, and the Trade and Environmental Sustainability Structured Discussions (TESSD) on 28 September. “Coming together and coordinating action is important for building strength and carrying our work forward more efficiently … as the WTO works towards greater inclusivity,” she said.
WTO members review farm policies, discuss food security, agri-food system resilience (WTO)
At a meeting of the Committee on Agriculture on 27-28 September, WTO members reviewed each other’s farm policies to ensure compliance with WTO disciplines. Food security was the main focus of discussions but members also addressed other topics, such as the interconnection between agri-food trade, technology transfer and protection of the environment. Participants exchanged views on ways to improve transparency on members’ agricultural measures and to enhance the overall functioning of the committee.
Selected commentaries and opinion pieces
How innovative payments and eCommerce can catalyse intra-African trade (Businessday NG)
How Can African Countries Participate in U.S. Clean Energy Supply Chains? (Carnegie Endowment for International Peace)
Belt & Road: Mechanism boosting trade between China, Africa (Kenya Broadcasting Corporation)
How India can expand footprint in Global South by tapping Africa’s mega trade pact (India Narrative)
BRICS Cooperation Mechanism Gives Hand to Global South (RIAC)
China’s success inspires Africa to seek independent development path (Peoples Daily)
Emerging Economies Need Much More Private Financing for Climate Transition (IMF Blog)
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Trade statistics for August 2023 (SARS)
South Africa recorded a preliminary trade balance surplus of R13.3 billion in August 2023. This surplus is attributable to exports of R181.3 billion and imports of R168.0 billion.
The year-to-date (01 January to 31 August 2023) preliminary trade balance surplus of R32.0 billion is a deterioration from the R160.5 billion trade balance surplus for the comparable period in 2022. On a year-on-year basis, export flows for August 2023 were 4.6% higher at R181.3 billion compared to R173.3 billion recorded in August 2022, whilst import flows were 0.1% lower having decreased from R168.2 billion in August 2022 to R168.0 billion in the current period.
Export component of South Africa’s green hydrogen strategy will seek to lock in price subsidies (Engineering News)
The initial export component of South Africa’s yet-to-be-approved Green Hydrogen Commercialisation Strategy is not premised on the trade of scarce renewable electrons – converted into molecules or other tradeable derivatives – to decarbonise the industries of developed economies in Europe and Asia, Presidential Climate Commission (PCC) commissioner Joanne Bates insists.
Instead, such exports are designed to ensure that South Africa can “lock in” the grants, concessional debt and contract-for-difference price subsidies that are currently being offered by countries such as Germany and Japan to stimulate the use of green hydrogen products in their hard-to-abate sectors of steel, cement, petrochemicals, shipping and aviation.
Bates, who is also chief operations officer at the Industrial Development Corporation and part of the panel set up by Trade, Industry and Competition Minister Ebrahim Patel to finalise the strategy, offered this explanation in a presentation on the proposed strategy during a PCC meeting in Johannesburg.
Don’t kick SA out of AGOA – Anthony Carroll (Politicsweb)
“Examining the U.S.-South Africa Relationship” committee hearing, Washington DC
September 27, 2023
“The US economic relationship with SA also has some positives and some negatives. No country has benefited from AGOA as much as South Africa. Last year, according to the Africa Coalition for Trade, SA exported over $14 billion in goods to the US (with about a quarter of these goods benefiting from AGOA duty-free access), and the U.S. exported $6.5 billon of goods (an increase of 15% from 2021) and another estimated $2 billion of services.
Our imports from SA include manufactured goods and agricultural products that employ tens of thousands of people and have fostered the emergence of regional value chains. For example, automotive components are built in Botswana and transported for final assembly in SA. Over 600 US companies operate in South Africa, and many do so as a gateway to Africa. Indeed, South Africa’s leading trade partner is “the rest of Africa.”
In conclusion, while I understand and share the concerns of many about the direction of our relations with SA, I would oppose making it ineligible for AGOA.”
Download: pdf Prepared testimony (96 KB)
BRICS offers SA prospects to deepen relations (SAnews)
The expansion of the BRICS not only gives weight to the bloc but also grants South Africa the opportunity to deepen ties with the countries that are expected to join the formation next year. South Africa hosted the 15th BRICS Summit in Johannesburg last month where President Cyril Ramaphosa as chair of the bloc announced that Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates will join the BRICS.
“It gives the bloc more weight politically [and] economically in an international space. Domestically, we can gain from ensuring that there’s deepened trade ties with these countries which would expand economic opportunities within South Africa itself and the other emerging markets you find in the BRICS bloc. “It increases your momentum within the global stage itself,” assistant lecturer at the Department of Politics and International Relations at the University of Johannesburg, Ndzalama Mathebula told SAnews.
The six developing countries are set to become full members of the BRICS [Brazil, Russia, India, China and South Africa] bloc from January 2024.
Trade deficit shoots up 16% to US$1,2 billion (The Zimbabwe Independent)
ZImbabwe registered a negative trade balance of US$1,24 billion during the seven months to July, up 16% compared to the prior period, as the effects of government’s relaxation of basic commodity imports filtered through, data from the Zimbabwe National Statistics Agency (ZimStat) showed this week. The trade deficit stood at US$1,07 billion during the same period last year. This means Zimbabwe is spending more foreign currency to import goods and services than it is exporting.
The data indicates that Zimbabwe exported goods and services worth US$3,83 billion during the review period, compared to US$5,07 billion imports, resulting in a US$1,24 billion trade deficit. On Tuesday, leading economists said Zimbabwe’s overreliance on primary commodities will not be sustainable. “The concern there is that, the global and Zimbabwe-South Africa trade deficit have widened, which I think is a concern,” Prosper Chitambara, chief economist at the Labour and Economic Research Institute of Zimbabwe, said. “The exports have increased but not very significantly while we see imports have actually increased quite significantly overall.
The Ministry of Industry and Commerce with support from the United Nations Economic Commission for Africa (UNECA) Sub-Regional Office for Southern Africa (SRO-SA) held a workshop to review the Zimbabwe National Industrial Development Policy at Rainbow Towers in Harare. The purpose of the workshop was to assess the implementation of the Zimbabwe National Industrial Development Policy (2019-2023) which is expiring in December this year, and to review and validate the draft successor policy, the Zimbabwe Industrial Development Policy (2024 – 2030).
The Ministry of Industry and Commerce with the support from UNECA SRO-SA retained a consultant to review the implementation of the Zimbabwe National Industrial Development Policy (2019-2023) and to draft a successor ZNIDP (2024-2030) aligned to the current national economic policies and thrust and with regional industrialization strategies and policies.
The Ministry also launched a report on the local content thresholds for the fertilizer, packaging and pharmaceutical sectors during the workshops. The sector thresholds, developed and validated in a fully consultative manner, provide a framework for the implementation of local content strategies in the three sectors as part of the overall national endeavour of strengthening domestic linkages of the industrial sector. UNECA SRO-SA provided the technical and financial support towards the development of the thresholds.
Egypt grows as an investment gateway to Africa (Euromoney)
Egypt has long been a strategic partner for many countries in the Middle East and North Africa region. In recent years, it has also emerged as a gateway for trade and investment in Africa thanks to its geographic location, economic reforms, and regional integration efforts.
A strategic location at the crossroads of Africa, Asia, and Europe, and the Suez Canal (which connects the Mediterranean and the Red Sea) provide Egypt with a competitive advantage in terms of connectivity, logistics, and market access to consumers globally. Moreover, Egypt has undertaken significant economic reforms in the past few years aimed at improving its macroeconomic stability, business environment, and investment climate. These reforms include fiscal consolidation, exchange rate liberalisation, energy subsidy reduction, tax reform, and structural reforms in various sectors.
Global Gateway: Ghana and the EU mark a new chapter in the battle against illegal timber trade (EC International Partnerships)
Ghana will be the first country in Africa and second worldwide to provide the EU with export licences that verify the legality of their timber products. Meeting in Brussels, the implementation body of the Ghana-EU Voluntary Partnership Agreement (VPA) on Forest Law Enforcement Governance and Trade (FLEGT), which brings together Ghanaian public authorities in charge of forest administration, the private sector, civil society and the European Commission, reached an agreement on the last steps towards issuing FLEGT licences, marking a new chapter in the battle against illegal timber trade.
European Commissioner for International Partnerships, Jutta Urpilainen, said: “The dedication of the government and the forestry sector, in cooperation with European partners, has brought FLEGT licensing to within our reach. This achievement underscores the power of international cooperation in addressing critical global challenges such as deforestation and illegal logging.”
The Hon. Minister for Lands and Natural Resources of Ghana, Mr. Samuel A. Jinapor, said: “Ghana has seen significant improvements in forest governance with the implementation and operationalisation of the timber legality assurance system. The impending issuance of FLEGT licenses to the EU market and licenses to other international destinations will be guided by the same legality standards. This will be the next logical step in consolidating the gains towards sustainable forest management and forest governance as a whole. Ghana’s commitment to the VPA, as well as halting and reversing forest loss and land degradation by 2030 remain absolute.”
African top economist urges Uganda to fast-track oil and gas (The Independent Uganda)
The African Development Bank has warned it is “a race with time” for Uganda to begin pumping its oil out of the ground or risk future losses. Edward Sennoga, Second Lead Economist for the AfDB’s East African office said there is an opportunity for Uganda to earn from its newly found oil, but time was running out.
“So we are racing against time for Uganda. We need to harness this fossil fuel for short-term energy security but time is not on our side,” said Edward Snnonga. He was one of the speakers at the launch of the African Development Bank’s Uganda Country Focus Report 2023 at Hotel Africa in Kampala. The warning by Sennoga and other experts is based on the fear that the global shift or transition to low-carbon economies or the energy transition could affect the demand for oil globally.
Some experts have indicated that Uganda should have begun pumping its oil before 2030 or 2040 when the world shifts to electric vehicles. The Energy transition bringing new pressures to bear on the oil and gas sector from stakeholders and regulators.
TCCIA urges manufacturers to use AfCFTA to create wealth (The Citizen)
The Tanzania Chamber of Commerce, Industry, and Agriculture (TCCIA) has urged manufacturers and exporters to utilise the African Continental Free Trade Area (AfCFTA) to help Tanzania create wealth, create jobs, and increase foreign earnings. TCCIA acting managing director, Ms Mwanahamisi Hussein, said the continental free trading bloc offers many opportunities that Tanzanians cannot afford to miss.
“We are offering these training sessions to expose our manufacturers and traders to the benefits and opportunities found in the AfCFTA. “One of the many benefits is that the bloc creates a market for Tanzanian products, and the business is free from tariffs. We appeal to our exporters to use this bloc to strengthen our industrial base, create wealth and jobs, earn foreign currency, and strengthen our national economy,” she said. She said Tanzania wants to seriously engage in continental and world trade instead of being on the receiving end.
South Sudan’s leader discusses closer ties in energy, trade with Russian President Putin (ABC News)
Visiting South Sudan President Salva Kiir agreed in a meeting with Russia’s president to expand their relationship in energy, trade and other areas, notably oil.
According to a video of the leaders’ public statements posted online by the Kremlin, Putin said the development of oil refineries in South Sudan with the participation of Russian companies would strengthen ties. “This is only the beginning. We have many good opportunities in a variety of fields, including energy,” Putin said. Currently, Russia’s Safinat Group is working on an oil refinery in South Sudan’s Unity state.
African Continental Free Trade Area to create immense opportunities for Algerian businesses (Afreximbank)
“It Is time for Africa to take her destiny in her own hands and to determine her own developmental agenda. However, doing so will not be easy. It will require commitment, courage, and deliberate action. Traders need to seek out new market opportunities rather than the conventional route of turning to markets abroad”. Rallying words from Mrs. Kanayo Awani, Executive Vice President, Intra-African Trade Bank, Afreximbank, in her opening remarks as she addressed delegates at the High-Level Business Roadshow in Algiers, Algeria.
Mrs. Awani congratulated Algeria for becoming a Member State of Afreximbank in June 2022. She stated that the African Continental Free Trade Area “promises to revolutionise trade, reshape markets across the region, boost output in the manufacturing and service sectors, and fundamentally transform Africa’s economic structure”. She lauded the opportunities that it will provide to Algeria’s businesses.
She also explained the broad range of Afreximbank programmes and initiatives that can facilitate Algeria’s intra-African trade, such as the Africa Collaborative Transit Guarantee Scheme, which will mean for example that goods going from Algiers, Algeria to Lagos, Nigeria, will not need “a Customs Bond on every border as is the case today.” She also discussed the Bank’s programmes that support trade-enabling infrastructure especially those that address mobility and connectivity (road, rail, air, maritime, ports and logistics).
Maiden train cargo trip set to decongest Apapa Port (Channels Television)
The first-ever train cargo trip carrying containers from Apapa Port to Ibadan has set in motion a transformative initiative aimed at alleviating congestion and enhancing efficiency in Nigeria’s transportation sector.
The development comes as a result of the efforts of the Minister of Transportation, Senator Said Alkali, who inaugurated the loading of 30 coach container wagons on September 12.
The maiden train cargo trip, which commenced on Wednesday marks a milestone in the ongoing mission to relieve the burden on Apapa Port and streamline the movement of goods across the country categorized with traffic congestion and logistical bottlenecks at Apapa Port.
The 1st round table of development partners and major regional and international DFIs on the financing of the Construction of the Abidjan-Lagos Corridor Highway held on Tuesday 26 September 2023, in Abidjan, Côte d’Ivoire under the auspices of the Commission of the Economic Community of West African States (ECOWAS), the African Development Bank (AfDB) and the ECOWAS Bank for Investment and Development (EBID).
This flagship project preliminary estimated at US$15.1 billion, lies at the heart of the ECOWAS Vision 2050 and the 4x4 strategic objectives of the ECOWAS Commission Management. The 1,028 km supranational highway will connect the economic capitals of five West African countries, namely Côte d’Ivoire, Ghana, Togo, Benin and Nigeria, forming an important part of the Trans-African Highway Network that commences from Praia in Cabo Verde through Dakar, Abidjan, Lagos which connects Central and East Africa to end at Mombasa in Kenya.
The solemn opening of the round table took place, with a speech delivered by Mr. Stéphane Ezoa, Deputy Director of Cabinet on behalf of the Minister of Equipment and Maintenance of Roads for Cote d’Ivoire, Dr. Amédé Koffi Kouakou who stressed that the authorities of his country attach great importance to this highway and are committed to work with the other corridor countries and ECOWAS to achieve this great vision of the five Presidents.
pdf Final Statement of the 13th Ministerial Meeting on Infrastructure (66 KB) (COMESA)
The Thirteenth Meeting of COMESA Ministers in charge of Transport, Communications and Information Technology and Energy was held on 14th September 2023 in Kigali, Rwanda. The main objectives of the meeting were to consider the progress made in the implementation of Council Decisions on infrastructure projects in transport, ICT and energy sub-sectors at the Secretariat and Member State levels. Selected extracts:
ENDORSED the review of the Model Energy Policy, the development of Model Solar Standards and commended the efforts to develop a Model Common Customs Tariff Framework for solar products;
COMMENDED the COMESA Digital Free Trade Area (DFTA) initiative and directed the Secretariat to prioritize in the implementation of projects under DFTA as it has the potential of changing lives of COMESA citizens by using technologies to boost intra-regional trade and accelerate regional integration;
APPRECIATED the efforts made by the COMESA Secretariat to improve access and reduce cost of ICT services through the development of open access frameworks on fibre networks and humanized regional roaming and interconnection frameworks;
Stakeholders push intra-African trade in fashion industry (Voice of Nigeria)
Stakeholders in the fashion industry are calling for improved intra-African trade and business relationships amongst entrepreneurs in the fashion and arts industries on the continent. This is as the African Fashion & Arts Award (AFAA) emphasised the need for fashion and art creatives to be empowered, rewarded and celebrated.
Founder and President of AFAA, Mr. Kingsley Amako, noted that over 65% of the African 1.4billion population is made up of youths between the creative ages of 12-35 years and that fashion and arts remains the most viable and potentially the creative industry vertical generating the most revenue enough to effect a significant change on the continent’s GDP.
Ahead of the 28th United Nations Conference on Climate Change (COP 28), the African Development Bank Group has launched country-by-country economic reports to guide African policymakers in their discussions at the global event.
The new Country Focus Reports (CFRs) provide analysis and policy recommendations to strengthen countries’ active participation at COP 28, which takes place in Dubai, United Arab Emirates, from 30 November to 12 December. The theme of the reports is “Mobilising private sector finance for climate and green growth in Africa”. The reports foster policy dialogue on macroeconomic performance and outlook and provide insights on mobilising private sector and natural capital finance to drive the continent’s climate resilience and green growth policies.
“As countries prepare for COP28, the reports provide each African country with independent, verified analysis and recommendations for evidence-based negotiations during the global conversation on climate finance and green transitions,” Urama said.
DG Okonjo-Iweala calls on WTO members to deliver for development at MC13 (WTO)
DG Okonjo-Iweala stressed that LDCs’ trade priorities form an integral part of broader trade and development discussions, including in the context of WTO reform. “We need to keep examining development-related matters across the spectrum of the WTO — from regular Committee work to trade negotiations to dispute settlement,” she said. She also acknowledged ongoing efforts by development partners and others to ensure more effective trade support for LDCs.
Delivering the opening remarks, DG Okonjo-Iweala welcomed the ratification of the WTO’s Agreement on Fisheries Subsidies by many members and encouraged other members to follow suit. “We also need to keep making progress on the second wave of fisheries negotiations,” she noted.
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Dip in exports out east raises red flags for SA (Freight News)
The importance of China in South African trade cannot be overstated, considering the country’s economic well-being relies heavily on the export of minerals to the Eastern giant. These exports generate the crucial income needed to import the essentials that keep South Africa’s economy running smoothly.
According to Francois Fouche, an economist at the Gordon Institute of Business Science (GIBS), with China standing as South Africa’s largest trade partner, the recent economic challenges faced by China, particularly in its real estate sector, have sparked concerns that could have profound consequences for South Africa’s trade.
“China has long been a key destination for our mineral exports, including vital resources like iron ore. These exports play a pivotal role in South Africa’s ability to generate the income necessary for importing essential goods, which are indispensable for the country’s economic functioning,” he told Freight News. “However, as China grapples with economic slowdowns, there is apprehension that Chinese demand for South African exports may decline.”
South Africa needs to look internally before going global on hydrogen (Engineering News)
As South Africa progresses its hydrogen strategies and plans as a means to mitigate climate change and to bolster security of energy supply, the country needs to look internally before embarking on global outflows.
Speaking at the Hydrogen Africa conference, held in Johannesburg from September 27 to 29, Richards Bay Industrial Development Zone Company COO Muze Shange said that amid the conversations surrounding hydrogen developments and exports is the need for focus around South Africa’s own needs and its own demands.
Expert speakers across the industry and world convened at the conference on Thursday to unpack the hydrogen economy, the opportunities and challenges and the potential for African – and global – trade of an emerging industry that could bring about significant economic gains and create thousands of jobs. Discussions were held on the advancement of the global hydrogen economy and market, hydrogen certification and standardisation, cross-border and global hydrogen trade markets and various regulatory frameworks.
Hydrogen can play a pivotal role in driving Africa’s energy transition and unlock a new era of sustainable development. However, collaborative leadership is required to seize the opportunity presented by hydrogen, Shange said, noting that such leadership will allow the country to drive hydrogen demand and growth, as well as various key initiatives toward cross-border and global trade markets.
EU-Kenya Economic Partnership Agreement closer to approval (European Commission)
The EU-Kenya EPA will boost trade in goods and create new economic opportunities, with targeted cooperation to enhance Kenya’s development. It is the most ambitious EU agreement with an African country thus far as regards climate protection and labour rights.
The agreement foresees immediate full liberalisation of the EU market for Kenyan products, and will incentivise EU investment in Kenya, thanks to increased legal certainty and stability. The EPA contains strong trade and sustainability commitments, including binding provisions on labour matters, gender equality, environment, and the fight against climate change, and a dedicated chapter on economic and development cooperation to enhance the competitiveness of the Kenyan economy.
The deal will be supported by the implementation of the Global Gateway Africa-Europe Investment Package announced at the 6th EU-African Union Summit in February 2022. It will facilitate trade and investment, accompanied by trade-related development cooperation, with a view to further deepening the economic ties between the EU and Kenya, boosting sustainable economic growth, and creating jobs.
Once the Council gives its agreement, the EU will be able to sign the EPA with Kenya, that would then be sent to the European Parliament for consent. Following approval, the deal can enter into force.
Zambia upbeat on concluding national climate adaptation plan (Xinhua)
The Zambian government on Wednesday expressed confidence that it will be able to finalize the country’s national climate adaptation plan in time for the 28th session of the Conference of the Parties (COP28) to the United Nations Framework Convention on Climate Change (UNFCCC), which is scheduled to be held in Dubai, the most populous city of the United Arab Emirates, from Nov. 30 to Dec. 12.
Douty Chibamba, permanent secretary in the Ministry of Green Economy and Environment, said Zambia wanted to join the few least developed countries that have submitted their national climate adaptation plans to the UNFCCC. He said that so far 16 countries in Africa have completed and submitted their national climate adaptation plans and Zambia would like to be counted in the next batch of countries that would have successfully done so. In remarks delivered during a national climate adaptation plan consultative meeting, Chibamba said the plan is an important milestone for every Zambian towards achieving resilience to the impacts of climate change.
Stakeholders seek US partnership to enhance investment prospects in Nigeria (TheCable)
A group of stakeholders has solicited US partnership to boost trade and investment opportunities for small and medium enterprises (SMEs) in Nigeria. The stakeholders, including ministers, shared the existing trade opportunities in various sectors at an event on the sidelines of the 78th United Nations Annual General meetings. The programme had Nigerian political, business leaders and their US counterparts, in attendance.
On the front burner was advancing trade relations between both continents. The event themed, ‘The Imperatives of Global Trade for SMEs as Game Changer for the Future Prosperity of the African Continent’, held on September 21 in New York
The comprehensive strategic and cooperative partnership between Ethiopia and China has deepened the bilateral cooperation in various fields, Chinese Embassy Deputy Chief Shen Qinmin said. The 74th anniversary of the founding of the People’s Republic of China was marked yesterday at the Sky Light Hotel.
During the ceremony, Embassy Deputy Chief Shen Qinmin said China and Ethiopia have jointly made great efforts to promote peace and development in the Horn of Africa in a bid to make contribution to peace, stability, development and prosperity in the region. He also stated that the BRICS mechanism presents a new vision and new opportunities for the two countries’ common development.
“Ethiopia plays an important role in regional cooperation and global affairs. (Therefore) Ethiopia’s joining BRICS will bring new vitality and the momentum to the BRICS cooperation and to build the mechanism into a key platform for a fair and just global political order and economy with inclusive and sustainable development.”
AfCFTA to boost remittances but global markets remain king (The Star)
The African Continental Free Trade Area has potential to increase cross-border remittances by migrants, a report by World Bank now indicates, even as international markets remain the largest sources. This comes as market projections indicate a possible slowdown in the growth of remittances to Sub-Saharan Africa, expected to fall from 6.1 per cent in 2022 to 1.3 per cent in 2023.Risks to the outlook include capital outflows, measures to control foreign exchange and sanctions, World Bank notes.
Growth in remittance flows is expected to recover to 3.7 percent in 2024, with Nigeria, Ghana, Kenya and Zimbabwe among the biggest recipients in in the Sub-Sahara Africa.
Angola to Host the 53rd AASA Annual General Assembly (Airspace Africa)
Angola is set to host the 53rd edition of the Airlines Association of Southern Africa (AASA) Annual General Assembly from October 5 to 8 in its vibrant capital city, Luanda. This prestigious event, co-organized by TAAG Angola Airlines, marks the first time that Angola has been chosen as the host country for this pivotal gathering.
The AASA Annual General Assembly serves as a critical platform for industry stakeholders, including airlines, regulators, manufacturers, service providers, investors, diplomatic representatives, and government entities, to come together and engage in essential discussions and networking opportunities. The assembly is dedicated to addressing the challenges and opportunities facing civil aviation in Africa, emphasizing cooperation and collaboration among key players in the aviation ecosystem.
One of the standout events of the assembly, scheduled for October 6, is the roundtable sessions. These sessions will feature over 200 delegates and top decision-makers from various corners of the aviation world. The discussions during these sessions will encompass a wide range of topics crucial to the industry’s growth and sustainability, including the competitive environment, connectivity, financing, supply chain, operating costs, regulatory aspects, and the future of African airlines.
Dakuku canvasses African maritime sector development sustainability (Daily Trust)
Turnaround expert and an independent maritime consultant, Dr Dakuku Peterside, says sustainable development of the African maritime sector is crucial to unlocking the potential of the continent and making it a huge contributor to the world economy. Peterside made this submission at the Agenda For African Development Senior Managers Forum on Environmental Management System in African Seaports at the Arab Academy for Science, Technology, and Maritime Transport in Alexandria, Egypt.
Revealing statistics that Africa accounts for less than 3% of global trade and just about 15% of intra-African trade compared to Europe (68%), Asia (58%), North America (48%), and Latin America (20%), he argued that African leaders under the auspices of Africa Union (AU) must quickly activate the African Continental Free Trade Area (AfCFTA) aimed at boosting intra African trade.
The immediate past DG/CEO of the Nigerian Maritime Administration and Safety Agency (NIMASA) noted that the United Nations Economic Commission for Africa (UNECA) estimated that AfCFTA could boost intra-African trade by up to 33% and cut trade deficit by 51%, time was of the essence in promoting trade. According to him, “This increase in trade will lead to higher demand for maritime transport, create new market opportunities, and spur investment in port infrastructure.”
While stressing that the maritime sector will play a key role, he argued that it would involve tackling issues such as strengthening governance, improving infrastructure, investing in human capital, and improving the operating environment.
China’s success inspires Africa to seek independent development path (CCTV.com)
Inspired by China’s development over the decades, more and more African countries are seeking to follow the development paths that suit their own domestic conditions. At the China-Africa Leaders’ Dialogue held in South Africa’s Johannesburg in late August, Chinese President Xi Jinping once again encouraged African countries to find the path that suits Africa best.
Despite being rich in resources and boasting a large population and a vast market, Africa has remained the world’s poorest continent. “Obviously, by default, in almost every country in Africa, our conversations are Western-led or Western-engineered. But because the information flow is very easy now, people could really appreciate different voices and new perspectives,” said Paul Frimpong, executive director of the Africa-China Center for Policy and Advisory, a Ghana-based think tank.
Keeping Africa on track to SDG success (African Business)
For 30 years, the African Export-Import Bank (Afreximbank) has been an advocate for African solutions to Africa’s problems by creating and deploying innovative solutions to eliminate barriers to the attainment of Africa’s developmental aspirations.
Created with a mandate to promote intra-African trade, Afreximbank is working in partnership with the AU and the African Continental Free Trade Area (AfCFTA) Secretariat to reverse the commodity and market concentrations that have historically stalled Africa’s development, especially due to the commodity dependency trap. Fundamentally, the Bank’s interventions in support of its member states are in alignment with AU’s Agenda 2063 and the United Nations Sustainable Development Goals (UN SDGs).
In response to the food security challenge on the continent heightened by geo-political conflicts, the Bank, working with UNECA, created the African Trade Exchange (ATEX), a platform that is already connecting buyers and suppliers of scarce agricultural commodities and fertilisers arising from the Ukraine conflict. In the long run, ATEX will facilitate the smooth integration of regional suppliers into the continent’s supply and value chains, vital for trading under the AfCFTA.
AFC secures $300 mn loan from CEXIM to boost trade finance in Africa (Africa Aviation News)
Africa Finance Corporation announced the successful signing of a $300 million loan facility agreement with the Export-Import Bank of China (CEXIM). This agreement, signed on the sidelines of the Asian Infrastructure Investment Bank (AIIB) Annual meetings in Egypt, is poised to drive increased trade finance and investment across the African continent, fostering economic growth and development.
The release reads, “The 3-year $300 million loan facility is a significant development in AFC’s long-standing relationship with CEXIM.” The two institutions have collaborated since 2018, with AFC receiving $400 million in bilateral loans from CEXIM to date. The loan will provide critical financing to support trade finance and investment in Africa, further facilitating the flow of goods and services between Africa and China.”
“CEXIM attaches great importance to the China-Africa financial cooperation and AFC is an important partner for us. Over the past few years, CEXIM has provided loans to AFC to enhance the bilateral trade and investment between China and Africa.” said Wencai Zhang, vice president of CEXIM, “This new project has elevated our bilateral cooperation to a new level and will further enhance China-Africa trade and economic cooperation through the financial support of our two institutions.”
Economic integration surest way to guarantee Africa’s peace, prosperity says Gabby Otchere-Darko (Class FM)
Executive Chairman of the Africa Prosperity Network (APN) and Senior Partner of the Africa Legal Associates (ALA), Gabby Asare Otchere-Darko, has stated that the economic integration of Africa is the surest pathway to guarantee the continent’s peace, security and prosperity for all her peoples.
Delivering his welcome address at the maiden edition of the Global Africa Forum (GAF) jointly organised by the Africa Prosperity Network (APN) and the Africa-America Institute (AAI) on Thursday September 21st, 2023, on the margins of the 78th UN General Assembly in New York City, under theme: “Mobilising Global Africa Investment to Boost Intra-African Trade,” Mr Otchere-Darko said political and business leaders must prioritize the integration agenda of the continent.
The best way to achieve this integration in Mr Otchere-Darko’s view, is to have a mindset of Africa without borders. The concept of global Africa he said, will be much more meaningful and find expression if the continent gets rid of the borders that are dividing her currently. He told the gathering that investors who are not Africans in any shape or form, have invested in Africa and their investments have become profitable. The “global African,” Mr Otchere-Darko said, must see the need to also invest in the continent with profitability as a target.
9th BRICS PF Converges to Foster Multilateralism, Cooperation, and Collaboration (Parliament of the Republic of South Africa)
The 9th BRICS Parliamentary Forum (BRICS PF) got off to a remarkable start today as approximately 250 delegates from about 15 countries across different continents converged for discussions that reinforced the BRICS Parliaments’ commitment to multilateralism, cooperation, and collaboration.
The 9th BRICS PF is hosted by the Parliament of the Republic of South Africa, in the Ekurhuleni Metropolitan Municipality in Gauteng Province under the theme: “Harnessing inclusive Multilateralism and Parliamentary Diplomacy to deepen BRICS and Africa Partnership for Accelerated Implementation of the African Continental Free Trade Agreement.”
Today’s debate centred around the African Continental Free Trade Agreement (AfCFTA) and its potential impact on BRICS nations – as well as the crucial role that parliaments can play in maximizing its benefits. “This agreement presents BRICS nations with a significant opportunity by granting them improved access to the African market, creating new avenues for trade, and opening up possibilities for expanded investments,” said National Assembly Speaker Ms. Nosiviwe Mapisa-Nqakula.
BRICS group poised to shape global economy, says Saqr Ghobash (ZAWYA)
Saqr Ghobash, Speaker of the Federal National Council (FNC), emphasised the BRICS group’s potential to significantly shape the future of the global economy, given its combined GDP of approximately one-third of global GDP after the inclusion of six new member countries, vast human capital, and advanced technological and industrial capabilities. He added that the BRICS can also redirect global atte
Brics Symposium to help unlock private investment, close infrastructure funding gap (Engineering News)
The development and delivery of infrastructure ought not to be dependent on the availability of public resources, Finance Minister Enoch Godongwana told delegates attending the Brazil Russia India China South Africa (Brics) Infrastructure Investment Symposium on Thursday.
In his keynote address, the Minister implied that, with the Global Infrastructure Hub projecting a need for $94-trillion’s worth of infrastructure investment by 2040, it is unreasonable to expect governments in “constrained fiscal positions” to fund much of the investment.
“With a further $3.5-trillion required to meet the Sustainable Development Goals [and] at the projected investment levels of about $79-trillion, there will be a financing gap of about $18-trillion by 2040.” As Brics countries constitute a third of this investment requirement, Gondongwana noted that a focus this year has been on exploring ways to fast-track infrastructure development and delivery through increased private sector participation.
“We know that infrastructure investments offer stable, attractive and long-term cash flow for investors. For this reason, while the financing gap is suitably large, through greater collaboration and effective partnership, the gap can close.”
Ukraine grain corridor should not replace broader deal, UN trade chief says (Reuters)
Ukraine’s move to create a shipping channel for grain exports is a positive step for global food security, although efforts continue to reach a new agreement over a broader Black Sea corridor, the top U.N. trade official said on Wednesday.
Russia in July quit a U.N.-backed deal which had enabled exports from Ukraine to sail from three approved ports. Since then, Kyiv has launched what it calls a temporary humanitarian corridor in an effort to break Russia’s de facto blockade. Two ships have sailed in recent days from the Ukrainian port of Chornomorsk using the channel, which hugs the Romanian and Bulgarian coasts.
“We see the alternatives that are being explored to export in a very positive light because the important thing is to get the grain to global markets,” Rebeca Grynspan, who leads the implementation of the U.N. deal with Russia, told Reuters on the sidelines of a U.N. event in London. Grynspan said while the new corridor that Ukraine is trying to open is among “very important efforts”, she added that “the risks are higher”.
“The only thing that will take the risk away and stabilise ... the situation is an agreement that will be backed by all partners,” she said, adding she was unable to provide any timeframe for a deal.
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SA records trade surplus in July but off a low base (IOL Business Report)
South Africa’s terms of trade deteriorated materially in the first half of 2023 compared to the same period last year due to the declining volume of exports and weakening rand exchange rate during the period.
In July, South Africa recorded its most significant trade surplus of the year of R16 billion following a deficit of R3.5bn in June, but exports lifted by only R7.7bn as June was a low base, and there is typically high volatility in the trade data, while imports fell by -R9bn, a not unusual amount.
Investec chief economist Annabel Bishop on Friday said the trade balance averaged a miniscule surplus of R500 million in the first half of 2023, versus the surplus of R22.3bn for the same period last year, due to lower exports compared to last year.
Bishop said there continues to be a broad-based increase in the cost of imports overall for South Africa in 2023 to date of 9.1% and 8.8% year-on-year for the first half of 2023, with the rand experiencing very marked weakness compared to the same period in 2022, adding to import costs.
Roadmap to ‘fundamentally reform’ freight logistics sector by end of October (Engineering News)
Government has committed to finalise a Freight Logistics Roadmap, outlining a sequenced set of actions to fundamentally reform the logistics system, by the end of October. The commitment was made at a meeting of Cabinet members and senior business leaders held at Discovery Place in Sandton on September 26, chaired by President Cyril Ramaphosa.
In a joint statement following the meeting, government and business reported that their current collaboration in the logistics focal area was centred on ensuring implementation of immediate operational interventions, which had already been defined, alongside the development of the Freight Logistics Roadmap.
Chinese companies to get preferential tax treatment (People Daily)
Kenya will extend preferential tax policies to Chinese- owned companies looking to expand local operations in a move expected to bolster bilateral relations between the two nations. Currently, National Treasury through Kenya Revenue Authority (KRA) spreads wear and tear allowances, industrial building deduction, investment deduction and farm-works deductions to foreign firms setting up locally.
The wear and tear allowances are charged on capital expenditure on machinery and equipment where they are classified into five classes all of which are offered the allowances at different rates. These include a 37.5 per cent per year on earth moving equipment and self-propelling vehicles like lorries, a 30 per cent rate on equipment like computers and a 12 per cent rate on telephone sets or switch boards among others.
Others are a 10-year withholding tax exemption on dividends and remittances paid to non-residents, 100 per cent investment deduction on capital expenditure for 20 years as well as exemption from customs duties on imported inputs. But the country’s chamber of commerce and industry is now seeking urgent clarification on whether the government can further extend or come up with new tax policies that enable foreign investors to benefit from taxable deductions.
This comes amid a recent report on tax compliance showing that Kenya and China are on the verge of signing a Double Taxation Avoidance Agreement (DTA), a move anticipated to create a space for investors to invest locally and exempt them from double taxation.
New industrial park; pathway to upper middle-income status (Tanzania Daily News)
BUSINESS experts consider the 3 billion US dollars (around 8tri/-) Sino-Tan Kibaha Industrial Park investment as a critical ingredient in Tanzania’s bold endeavour to attain an upper middle-income status. With a projected revenue output of about 1.3tri/- to be generated from over 200 industries to be erected at the industrial park upon completion of the project comes the year 2025, this project is expected to transform Tanzania into an industrial economic hub within the East African Community (EAC) and beyond.
According to analysts, the Sino-Tan Industrial Park marks an important milestone in the country’s journey toward ambitious Vision 2025 of making Tanzania an industrialised economy. A lecturer of economics at the University of Dar es Salaam (UDSM) Prof Humphrey Moshi commended the government for expediting its industrialisation agenda, noting that the project reflects that Tanzania and China diplomatic relationship continue to grow.
For his part, a business analyst, Mr Medard Wilfred also expressed optimism that Tanzania’s economy was going to grow from lower middle-income status to higher middle-income status. He revealed that industrialisation is a critical engine in any country’s economy, therefore the park’s establishment will help to strike a balance between exports and imports, something which will stabilise the economy. As such, the country will not only rely on exports but instead be the one to import more goods generating huge importation duties, he said.
Ethiopia To Manufacture Lada Cars For The African Market (Russia Briefing News)
Ethiopia will launch the production of Russian Lada cars on its territory for the African market, the countries Ambassador to Russia Cham Ugala Uriat has said. The move is significant as it illustrates why Ethiopia has joined BRICS – its low manufacturing cost base can assist keep production costs down while also providing access to the growing African market.
“We’ll see Russian Lada cars in neighboring countries in the near future, because Avtovaz have already signed a deal with one of the Ethiopian companies” Uriat said, adding that those cars will be produced in Ethiopia. Lada make a range of SUV suitable for the African market. In particular, Russian cars may be supplied to Sudan and South Sudan, Kenya and Somalia, Uriat said, and expressed hope that the production will start in the near future. Other Russian auto manufacturers “are showing interest now to go to Ethiopia to build assembling lines” as well, he noted. Two more companies are holding consultations with the Ethiopian side on that issue, the ambassador revealed.
Côte d’Ivoire, Guinea, Mali… Tunisian companies face boycott risk (The Africa Report)
“Today, the situation is not like the first crisis” when Tunisian products were the subject of calls for a boycott in March, following controversial statements by President Kaïs Saïed that were deemed offensive towards African migrants, a local businessman says on condition of anonymity. ”Our partners are unhappy with the treatment of sub-Saharan migrants.”
The businessman, who is familiar with African nations, cites “a rather delicate position” and “mistrust of Tunisian products” in certain countries, such as Mali, Burkina Faso and Guinea, despite the “very limited” economic repercussions.
“Strategically, Africa remains a niche for a few Tunisian companies in key sectors, such as construction and public works, agri-food and insurance,” says Bassem Ennaifer, a financial analyst. According to data from the Centre for the Promotion of Exports (CEPEX), nearly 800 Tunisian companies export to sub-Saharan Africa, with more than 1,000 different products.
Tunisia’s trade with sub-Saharan Africa represents only 3% of its total exports. In 2022, the country generated DT1.5bn (nearly $500m), from its main sub-Saharan trading partners: Côte d’Ivoire (15%), Senegal (12%), Guinea (7.2%), Cameroon (6.8%) and Burkina Faso (5.6%). “Efforts are underway to increase the share of Tunisian exports to sub-Saharan Africa to 5% by 2025, and even more in the years to come,” says Mourad Ben Hassine, CEPEX’s managing director.
Looming sugar crisis as shortage hits COMESA market (KBC)
Sugar prices are expected to rise further in the coming months due to an acute shortage of the commodity in the COMESA market. This comes amidst a ban on sugarcane milling in Western Kenya and the Nyando Sugar belt with fears that the prices could jump further amidst high demand. Agriculture and Food Authority (AFA) Chairman Cronelly Serem said the closure of mills in the affected regions was occasioned by a shortage of sugarcane.
The ban which ends in December 1, 2023, he said targets to ensure the millers have enough cane to crush to help the country bridge the shortage of the sweetener. Serem attributed the shortage to a prolonged dry spell early in the year and lack of proper cane development programmes by millers.
Companies which were licensed to import sugar to address the shortage, he said were experiencing difficulties due to the shortage of the commodity in the COMESA market. Kenya relies heavily on imports mainly from the COMESA region to bridge the local sugar deficit. “We will continue to experience a shortage of the commodity on the shelves since there is no sugar in the COMESA region,” he said.
Africa must collaborate on green energy agenda (SAnews)
Minister in the Presidency for Electricity, Dr Kgosientsho Ramokgopa, says intra-Africa collaboration will be important in the drive towards decarbonisation and strengthening energy security on the continent. The Minister was addressing the UNESCO 9th Africa Engineering Week held in Gauteng on Tuesday.
“The power pool on the SADC [Southern African Development Community] side is essentially matured (sic). I’m told that there is a similar power pool that is taking shape on the eastern side and the western part of the continent. I think that once we pool all of that together, we are going to get to a situation where we are going to exploit the opportunities that are presented.”
The minister further emphasised that because of its rich endowment in resources that are essential to the green economy, Africa must set its own standards. “What drives us is the quest to ensure that we industrialise on the back of these renewable resources [and] on the back of the demand that is coming from the major western countries.”
East, Central Africa experts discuss regional value chain (New Business Ethiopia)
To discuss sub regional value chain, the Meeting of the Intergovernmental Committee of Senior Officials and Experts (ICSOE) by the United Nations Economic Commission for Africa (UNECA) Sub-Regional Offices for Central and Eastern Africa opens today in Bujumbura, Burundi. In his opening remark Prime Minister of Burundi, Gervais Ndirakobuka indicated that the war in COVID-19 and Ukraine crisis have impacted African economy including affecting tourism, increasing fuel and food prices among others. He stated that developing regional value chain requires a combination of effort between and among the countries to harmonize policies and strategies so that our national resources benefit the people brining sustainable development.
This year’s meeting is themed, “Establishing Central and Eastern Africa as sources of quality products and investment destinations of choice to accelerate industrialization and economic diversification, and to strengthen food security”. Commenting about the theme of the year “…This will be an opportunity for the region to reduce poverty and enhance the livelihoods and standard of living of the people in the region,” said Dr. Hanan Morsy, Deputy Executive Secretary and Chief Economist at UNECA.
European Union Collaborates With The Republic Of Djibouti For Regional And Continental Economic Integration In Africa (Africa.com)
The European Union (EU) is partnering with the Republic of Djibouti and the African Alliance for e-commerce to organise the ongoing 9th edition of the International Single Window Conference taking place in Djibouti from September 25 to 26, 2023. This conference highlights some of the investment opportunities and ongoing developments throughout the African continent that will enhance the efficiency of trade globally. The EU is supporting efforts in the region that will boost regional economic integration and facilitate regional trade aligned with the objectives of the African Continental Free Trade Area (AfCFTA).
A key action under this partnership is the EU support to the Horn of Africa Initiative’s strategy, collaborating with the governments of the Republic of Djibouti and the Federal Democratic Republic of Ethiopia. The EU has committed €32 million to a programme dedicated to “Promoting regional economic integration in the Horn of Africa through the development of the Djibouti corridor” implemented by Agence Française de Développement (AFD) and the aid-for-trade organisation TradeMark Africa (TMA).
The programme is aiming at improving the effectiveness and efficiency of one of the most active economic corridors in Africa while promoting inclusive trade. This is achieved through trade processes digitalisation in government agencies to shorten the time required to get trade documents and accelerate the transit of goods along the corridor – from the Port of Djibouti to Addis Ababa, Ethiopia’s capital. Electronic Single Windows and cargo tracking systems are examples of such digital interventions.
Europe Lines Up African Minerals Pacts to Ease Reliance on China (Bloomberg BNN)
The European Union is finalizing partnerships with the Democratic Republic of Congo and Zambia to boost local industries as the bloc competes with China to secure critical materials for the green and digital sectors. A planned memorandum of understanding will signal to both governments and the private sector the EU’s backing for developing local value chains given that a big part of the processing of critical materials, including lithium or cobalt, currently takes place in China, people familiar with the matter said.
The EU is aiming to diversify suppliers of key resources and to counter China’s massive infrastructure investments in regions including Africa. The bloc has signed similar deals with Canada, Kazakhstan, Namibia, Ukraine, Argentina and Chile, and is also exploring accords with Rwanda and Uganda. The EU plans to sign the partnerships during a forum of the Global Gateway, the EU’s €300 billion ($317 billion) investment program, in Brussels on Oct. 25-26, said the people who asked not to be identified because the discussions are private. The meeting will bring together leaders from the EU, other countries and European business executives.
“The EU wishes for a partnership for strategic primary materials, which the DRC accepted,” Wameso said in a text message. A Zambian official did not immediately reply to a request for comment.
Bold global action needed to decarbonize shipping and ensure a just transition: UNCTAD report (UNCTAD)
UNCTAD has called for a “just and equitable transition” to a decarbonized shipping industry in its Review of Maritime Transport 2023 launched ahead of World Maritime Day (28 September). The agency highlights the pressing need for cleaner fuels, digital solutions and an equitable transition to combat continued carbon emissions and regulatory uncertainty in the shipping industry.
The shipping industry accounts for over 80% of the world’s trade volume and nearly 3% of global greenhouse gas emissions, with emissions escalating by 20% in just a decade. UNCTAD Secretary-General Rebeca Grynspan said: “Maritime transport needs to decarbonize as soon as possible, while ensuring economic growth. Balancing environmental sustainability, regulatory compliance and economic demands is vital for a prosperous, equitable and resilient future for maritime transport.”
Extensive UNCTAD agenda at the UN General Assembly 2023 (UNCTAD)
UNCTAD Secretary-General Rebeca Grynspan and other world leaders promoted a global rescue plan for the Sustainable Development Goals (SDGs) during the high-level week of the 78th session of the UN General Assembly, from 18 to 26 September. Currently at the halfway point towards achieving them by 2030, only 15% of the SDG targets are on track and many are going in reverse.
On 20 September, Secretary-General Grynspan spoke at the SDG Media Zone, where national leaders, influencers, activists, experts and media partners highlighted actions and solutions in support of the SDGs. The session examined the ongoing crisis of global debt, which reached an all-time high of $92 trillion in 2022.
A recent UN report flagged that 37 out of 69 of the world’s poorest countries were either at high risk or already in debt distress, while highlighting the inherent inequality in the international financial system. The report found that developing countries on average pay four to eight times more in interest rates than developed ones.
Turning to solutions, Secretary-General Grynspan outlined the “very concrete things” the world can do to rev up investment, debt restructuring, and liquidity and contingency funding for developing countries. She echoed calls from UN chief António Guterres for an SDG Stimulus of at least $500 billion a year to bolster sustainable development and climate action.
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A slice of opportunity: Benin joins China’s fruit export market (Ventures Africa)
The recent visit of Benin’s President Talon to China did not hit many international headlines. However, it was particularly interesting for Africans because during the visit he secured a new agreement granting permission to export the West African nation’s fresh pineapples to China. Alongside Kenyan, South African and Tanzanian avocados, Rwandan chilis, South African citrus fruits, and Tanzanian soybeans – Beninese pineapples are joining a rapidly growing list of fresh products that are finally allowed to be exported to the Chinese market.
Although this is a huge success on paper, there are many challenges to overcome if Benin is to really capitalise on this deal.
Tanzania buys gold in new move to bolster foreign reserves (The East African)
The Bank of Tanzania (BoT) has started a large gold-buying initiative as part of a strategic drive to support the expansion of the mining industry and strengthen foreign exchange reserves. Under the initiative, BoT has already acquired and refined 418 kilogrammes of gold.
“As highlighted in the budget by the Minister for Finance Dr Mwigulu Nchemba, the government has allocated funds for the purchase of gold. This year, our target is to procure six tonnes of gold, both from small-scale, middle-scale, and large-scale miners,” he said. He also said BoT purchases gold to diversify the country’s foreign exchange reserve and reduce reliance on a single currency.
This diversification intends to safeguard Tanzania’s wealth against currency devaluation or economic stability caused by global shocks. “Now for the first time, we have both a gold and dollar reserve. Previously, we only had the US dollar as a foreign exchange reserve,” he added. During recent months, Tanzania just like other economies, has been adversely affected by a decision by America’s Federal Reserve to embark on aggressive rate hikes as a measure to fight domestic inflation in the US economy.
This has seen various central banks around the world embark on measures that have resulted in a reduction in the amount of dollars in circulation and a steep depreciation of their domestic currencies, resulting in a rise in the prices of imported goods and products, including petroleum.
Fixing local value chains key to transforming food systems (Nation)
“Due to poor local market prices against the ever-rising cost of inputs, coupled with devastating climatic conditions, we as smallholders are forced to invest with a lot of caution because many are times when we end up with losses,” said Kenneth Kurui, a smallholder wheat farmer in Narok County, who also works in Nairobi to supplement his wheat farming venture.
However, the recently released 2023 Africa Agriculture Status Report (AASR) points out that there is still a window of hope for smallholder farmers like Kurui, but only if governments puts in place policies that are friendly to local agro-processing and also if the leaders embrace the African Continental Free Trade Area (AfCFTA).
“Unless we put in place correct policies that will favour local manufacturing, we will continue talking about cocoa in Ghana and Chocolate from Switzerland,” said Mohammed Dewji, President of MeTL Group of Companies in Tanzania.
Beyond value addition, the AASR calls for lowering of trade costs through strengthening regional trade infrastructure such as transport networks, trade finance and telecommunications and eliminating non-tariff barriers. This, says the report, will facilitate access to cheaper inputs and allow small and medium entrepreneurs to participate in bits and parts of a production process that provides affordable food to African consumers.
Bujumbura hosts ECA Regional Intergovernmental conference of Senior Officials and Experts (UNECA)
A four-day meeting of the Intergovernmental Committee of Senior Officials and Experts (ICSOE) for Central and Eastern Africa, jointly organized by the UN Economic Commission for Africa (ECA) and the Government of Burundi, opens on 26 September in Bujumbura, the Economic city of Burundi. This annual meeting will bring together ministers and high-level policymakers, international organizations, private sector actors, youth representatives, UN officials, academics and media practitioners, and will focus on the theme: “Establishing Central and East Africa as Sources of Quality Products and Investment Destinations of Choice, to Accelerate Industrialization and Economic Diversification, and to Strengthen Food Security”.
According to Mama Keita, ECA Director in Eastern Africa, the Bujumbura meeting will discuss food insecurity because climate change, high food prices, and supply chain disruptions cause hunger and malnutrition for millions in Central and East Africa . Mama Keita says that the meeting will look at the barriers to food security and the potential of digital food platforms, which can help producers, consumers, and traders exchange food products and information more easily and cheaply.
The ICSOE will propose policies, strategies and options for implementing a “quality culture” and promoting intra-African trade in order to increase the quantity and quality of production in the region so as to strengthen food security, promote economic diversification and attract more investment.
Nigerian gov’t advocates open, secure internet (Premium Times Nigeria)
The Nigerian government has subscribed to a free and secure internet for Africa, which is capable of bridging the digital divide and creating innovative opportunities within the continent. Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, who canvassed this position at the just-concluded Africa Internet Governance Forum at the Transcorp Hilton, Abuja, said the administration of President Bola Ahmed Tinubu is committed to engendering necessary collaborations and international dialogues to achieve these objectives.
The Minister, who addressed the forum virtually, said Nigeria, as the largest telecommunications market in Africa, is conscious of all the dynamics of emerging technologies around internet usage and would continue to work with countries in Africa on different fronts to ensure that the Internet is effectively governed so its innumerable resources can be leveraged for citizens and nation’s growth.
“The need for our consistent collaboration to develop our economy collectively is preeminent in the agenda of the current administration in Nigeria. It is through this kind of forum that we can bridge the digital divides, enhance cybersecurity, ensure digital rights and foster innovation. It is, therefore, our collective duty to ensure that the internet remains open, safe and beneficial for all,” Tijani told parliamentarians and other participants from Africa who attended the forum in Abuja.
This year’s edition of the AfIGF with the theme: “Transforming Africa’s Digital Landscape: Empowering Inclusion, Security and Innovation”, which took place at the Congress Hall of Transcorp Hilton, Abuja, provided yet another veritable platform for African countries to discuss germane issues that will pave the way for the development of a more robust digital economy in the continent.
Unstoppable Africa 2023: Shaping a Future of Prosperity and Innovation (Global News Network Liberia)
Unstoppable Africa 2023 has concluded, leaving a profound mark on the African continent. The two-day Global Africa Business Initiative (GABI) event aims to boost Africa’s standing in the global economy and establish the continent as the foremost destination for business, trade, and investment. This transformative gathering on the sidelines of the UN General Assembly has not only chartered the course for economic growth but has also solidified GABI’s pivotal role as a catalyst for change and progress.
On the second day of the event, Caroline Wanga, CEO of Essence Ventures, emphasized the importance of authentically portraying African narratives. She highlighted that the continent’s rich heritage has traditionally been expressed through its unique storytelling methods. Wanga stated, “In discussing Africa, it’s vital to engage in genuine dialogue. We’ve celebrated our heritage through our distinct method of storytelling, which the world is longing for now more than ever. As the overseer of Essence Ventures and other platforms, I am committed to ensuring our tales are told from a position of strength and authenticity.”
The event concluded with inspiring remarks from UN Deputy Secretary-General Amina J. Mohammed, highlighting the importance of collective action in realizing Africa’s potential and achieving sustainable development. She called for unity and support from the global community and the private sector. She closed by emphasizing that this is just the beginning of a new chapter in Africa’s story, one marked by sustainable economic growth, empowerment, and the realization of the continent’s full potential.
UNGA78: Tinubu commits to promoting ease of trade for SMEs in Africa (Daily Nigerian)
President Bola Tinubu has restated his administration’s commitment to promoting ease of trade for Small and Medium Enterprises, SMEs, across Africa. Mr Tinubu stated this during the Africa International Trade Exhibition, AITE 2023’s Business, Trade, and Investment Summit at the sideline of the 78th edition of the United Nations General Assembly, UNGA, in New York, USA.
In his remarks, the Minister of Aviation and Aerospace Development, Festus Keyamo, urged both foreign and local investors to take advantage of Nigeria’s huge population, traffic, and thriving aviation market, to invest in the sector.
“We want to have industries in Nigeria to process and manufacture our raw materials in the country to give job opportunities to our youths and women. “To continue allowing our raw materials to be exported and paid next to nothing for it will continue to keep our people in poverty. We want Nigeria to change the way they have been doing business. “We are confident that the outcomes of this gathering will have a lasting impact on the economic landscape, not only in Nigeria but also across the globe,” Ms Musa, who is the author of ‘The Audacity of an African Girl’ and President of the Arewa Development Support Initiative, ADSI, said.
AfCFTA: National Quality Council Task Agric Stakeholders on Global Standards (This Day Live)
The National Quality Council (NQC) has charged agricultural stakeholders in the cassava value chain to adhere strictly to global standards in their quest to benefit from the Africa Continental Free Trade Agreement (AfCFTA). The Chairman of NQC, Mr. Osita Aboloma, explained the need for Nigeria to take optimum advantage of the opportunity provided by the hosting of the implementation of the AfCFTA in view of the federal government’s recent declaration of a state of emergency on food security.
Earlier in his welcome address, the Director General, SON, Mr. Farouk Salim, enthused that SON played a pivotal role in ensuring quality, safety and competitiveness of Nigeria’s agricultural produce including cassava and its derivatives. Salim stated that his organisation provided a solid foundation for innovation, trade facilitation and consumer protection, while also enabling market access and enhancing the reputation of the nation’s products on the global stage.
He assured the gathering of SON’s commitment towards the conference, particularly in ensuring that requisite Nigerian Industrial Standards are made available for all derivatives of cassava for local consumption as well as export.
Climate change ‘being increasingly felt with greater ferocity’ – Ramaphosa (Moneyweb)
The recent catastrophic floods in Libya are a stark reminder of the extreme vulnerability of developing economy countries to the effects of an ever-changing climate. Many other countries on the African continent are just as vulnerable. Despite carrying the least responsibility for global warming, Africa is warming faster than the rest of the world.
I have just returned from the United Nations General Assembly in New York where climate change was a major focus of discussion. There is growing concern that the international community is falling significantly short on meeting the goals contained in the Paris Agreement to combat climate change.
Although developed economy countries promised to support developing economies as they transition to low-carbon, climate resilient societies, this support has not been forthcoming at the scale and with the urgency that is needed.
As African countries, we cannot be bystanders to our own development. We are putting the necessary measures in place to decarbonise our respective economies while pursuing sustainable development. The transformation of the energy landscape in Africa is a priority.
This needs to take place alongside increased investment in smart, digital and efficient green technologies in carbon-intensive sectors such as transportation, industry and electricity.
Securing Africa’s future beyond Agoa (Business Daily)
Simplifying trade procedures is pivotal to benefiting businesses and propelling economic growth by amplifying exports, job opportunities, and competitiveness. The African Growth and Opportunities Act (Agoa) is a great example of a beneficial programme for the continent.
Agoa is a cornerstone in preferential trade that empowers sub-Saharan African nations to export numerous products to the US market without tariff impositions, providing a more stable avenue for development compared to traditional aid methods.
It has played a pivotal role in bolstering economic growth across African nations. Presently, almost 44 African countries benefit from Agoa’s preferences, invigorating essential sectors such as agriculture, textiles, and apparel. Notably, US apparel imports from Agoa beneficiaries have risen from $953 million in 2001 to $1.4 billion in 2021 according to the US ITC 2023 Report. This growth is primarily attributed to countries such as Kenya, Ethiopia, Ghana, Madagascar, Mauritius, and Lesotho.
As global players seek diversification beyond Asia, Africa has significant potential to capitalise on this trend.
In June 2023, the United Nations Conference on Trade and Development (UNCTAD) released a comprehensive report assessing Agoa’s impact titled The African Growth and Opportunities Act; Limitations, Utilization, and Results’. It underscores the varying effects of preferential market access based on exporting countries and specific sectors.
Ukraine makes food offers to counter Russia in Africa (The East African)
Kenya and South Africa may play a major part in the establishment of a “grain hub” on the continent after the politics of Russia-Ukraine war took centre stage during the 78th session of the United Nations General Assembly (UNGA) in New York. At the core of the battle is US grain exports to Africa, which include 9,000 tonnes of wheat and 25,000 tonnes of maize. Ukrainian exports for the whole 2022/23 season stood at almost 49 million tonnes, exceeding the previous season’s level of 48.4 million tonnes.
For the second year in a row, the annual debate at the UN General Assembly is “darkened by the shadow of war, an illegal conquest brought without provocation by Russia” against Ukraine, he said, expressing strong support for Kyiv.
Caught in the war of words are African countries whose loyalty has been torn between the two superpowers, for food.
While Kenya had started as one of Africa’s most prominent supporters of Ukraine after Russia’s invasion, South Africa has maintained a more neutral stance. Now, Kenya says it backs an African Union proposal to end the war peacefully.
“We are not waiting; we are continuing the Black Sea Grain Initiative and trying alternative routes. Several ships with grain have already successfully passed through these routes despite the difficult situation,” the President of Ukraine emphasised when he met Ramaphosa on the outskirts of the UNGA in New York.
Working group on food security reviews coordinator’s report, discusses way forward (WTO)
The Committee on Agriculture Working Group reviewed on 21 September the report of the coordinator on food security, with the aim of advancing discussions on the food crisis and moving towards consensus on recommendations to be issued by November 2023. The meeting was chaired by Mr Kjetil Tysdal of Norway, the current coordinator of the food security work programme, who took over from Mr Marcel Vernooij of the Netherlands in July.
The coordinator’s report focused on four areas: access to international food markets; financing of food imports; agricultural and production resilience of least-developed and net food-importing developing countries (LDCs and NFIDCs); and horizontal issues. Several members expressed support for the report and its recommendations, highlighting its “balanced nature” and describing it as a strong foundation for reaching an agreement. Some other members considered that the report lacked sufficient emphasis on flexibilities for developing economies to address the immediate and short-term concerns arising from the food crisis.
Trade and Gender co-chairs outline joint work with MSMEs Group for women entrepreneurs (WTO)
At a meeting of the Informal Working Group on Trade and Gender held on 22 September, the co-chairs reported on their joint work with the Informal Working Group on Micro, Small and Medium-sized Enterprises (MSMEs Group), the WTO Secretariat and the International Trade Centre to create a compendium of initiatives that promote financial inclusion of women entrepreneurs. The co-chairs, the MSMEs Group, and the Trade and Environmental Sustainability Structured Discussions (TESSD) will hold a workshop later this month.
The “Compendium of Financial Inclusion Initiatives” currently being prepared will identify financial measures initiated by governments, national and regional development banks, as well as international organizations, to support small-scale businesses run by women entrepreneurs, said Ambassador Simon Manley of the United Kingdom, co-chair of the Informal Working Group on Trade and Gender. The objective is to “make this compendium available to all members, once finalised, as a policy tool and a model when developing financial inclusion schemes for female entrepreneurs,” he said.
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Mombasa harbour customers cry foul over ‘illegal’ levies (The East African)
Mombasa port users are worried that rampant flouting of maritime regulations by some shipping lines in cahoots with port officials puts at risk the port’s standing as main gateway to East and Central Africa. They claim that some shipping lines have introduced arbitrary charges without the approval of the Kenyan Maritime Authority (KMA), with some charging up to $1,200 for a 40-feet container, more than what Tanzania’s Dar es Salaam port charges.
This has been blamed for the sustained flight of customers, resulting in a decline in cargo throughput in Kenya. The cargo handled through Mombasa in 2022 shrank 1.9 per cent to 33.9 million metric tonnes, from 34.6 million tonnes in 2021, despite container traffic increasing marginally to 1.45 million 20-feet equivalent units.
Mombasa feeds the Northern Corridor, which stretches about 1,700km from the port through Kenya, Uganda, Rwanda, Burundi and the eastern Democratic Republic of Congo (DRC).But the port stands to lose out to the 1,300km Central Corridor, which runs from Dar es Salaam through Tanzania mainland to Rwanda, Burundi, Uganda and eastern DR Congo due to the punitive charges.
Kenya, UK in new pact to strengthen growing trade ties (The Standard)
Trade and Investment Principal Secretary (PS) Abubakar Hassan has pledged Kenya’s commitment to working with the United Kingdom (UK) government to strengthen bilateral ties between the two countries. The PS said the signing of a memorandum of understanding between the ministry and the British Chamber of Commerce Kenya sets up the framework for further cooperation between the two countries.
UK Prime Minister’s trade envoy to Kenya Theo Clarke said the partnership between the two countries would not only promote investments locally but also see the creation of thousands of jobs for Kenyans. June Chepkemei from the Kenya Authority Investment said investors can now access most of the services offered by the agency under one roof.
Mombasa steps up CCTV coverage to revamp trade (Business Daily)
Mombasa County plans to increase security surveillance as part of a strategy to boost the region’s business climate credentials. The county administration said it will install an integrated smart city surveillance system covering all public areas and key installations and properties.
“The objective of the service is to enhance public safety and security within the county, improve emergency response, optimise city services, support city planning, and development, and thereby elevate Mombasa County as a safe tourism and business hub in Kenya and the region,” it said in a tender call to provide the surveillance system.
Dollar Shortage Sparks Concerns Among Oil Marketers Over Fuel Importation (Investors King)
Expectations soared when oil marketers championed the removal of fuel subsidies and deregulation of Nigeria’s downstream sector. However, months after the removal of subsidies and deregulation, concerns are growing about the potential resurgence of the country’s perennial fuel scarcity.
While President Bola Tinubu’s pronouncement in May marked the end of fuel subsidies, the Nigerian National Petroleum Company Limited (NNPCL) still monopolizes petrol importation despite the anticipated influx of independent oil marketers. Emadeb Energy imported 27 million liters of petrol in July, but since then, independent marketers have struggled to secure imports, leaving NNPCL as the sole importer. This monopoly undermines the sector’s deregulation, enabling NNPCL to set prices, raising concerns of renewed fuel scarcity.
Formulate policies to encourage local sourcing of raw materials – Fan Milk MD (BusinessGhana)
Mr. Yeo Ziobeieton, the Managing Director of Fan Milk Ghana, has appealed to governments in West Africa to implement policies that would encourage industries to source local materials to help build sustainable supply chains. He said the disruptions in global supply chains occasioned by the COVID-19 pandemic had emphasised the need to build adaptable local supply chains to ensure a consistent supply of high-quality raw materials.
Speaking at the opening of the 2023 Ghana Industrial Summit and Exhibition in Accra on Monday, Mr Ziobeieton said resorting to local alternatives would empower local producers of raw materials to scale up their production and create employment opportunities in host communities. He said the effective collaboration between the government and the private sector would play a pivotal role in reducing dependency on the global supply chain for raw materials.
Afreximbank urges prioritisation of export trading companies to drive African SME participation in global trade (Afreximbank)
The African Export-Import Bank (Afreximbank) has called on African countries to prioritise the development of public and private export trading companies (ETCs) in order to position the continent’s small and medium enterprises (SMEs) to participate effectively in global trade.
In an address to the Africa International Exhibition, which opened yesterday on the sidelines of the United Nations General Assembly in New York, Mrs. Kanayo Awani, Afreximbank’s Executive Vice President, Intra-African Trade Bank, speaking on behalf of Bank President Prof. Benedict Oramah, said that SMEs participating directly in global trade faced stiff competition from multinational and significantly large corporates, making their chances of success or survival marginal, if not zero.
She said that the limited participation of Africa’s SMEs in global value chains reflected institutional policy failure and called for strong policy support systems that would provide capacity developments, incipient protections from unfair competition and improved access to regional markets and access to finance.
UBA Partners AfCFTA on $6bn Financing Solutions For SMEs in Africa (Arise News)
The United Bank for Africa (UBA) Plc has announced an initiative aimed at providing robust and comprehensive financing solutions to support and boost activities of small and medium scale enterprises (SMEs) across Africa. A statement from the bank yesterday, explained that the financing initiative would be powered by UBA’s recent partnership with the African Continental Free Trade Area (AfCFTA) secretariat to provide financing for up to $6 billion over the next three years to eligible SMEs across Africa, an agreement which was signed on the sidelines of the 30th Afreximbank Annual Meeting (AAM) which was held in Accra, Ghana.
SMEs in the particular sectors of agro-processing, automotive, pharmaceuticals, transport and logistics would be able to access a working capital loan by way of overdrafts and short-term loans with a maximum value of $120,000 in each of their country’s local currency; and asset finance loan of up to $120,000 in the local currency of the obligor, to use for the acquisition of operational assets and equipment to meet their business expansion needs.
CS Owalo meets digital tech thought leaders, industry stakeholders in preparation for Connected Africa Summit 2024 (Capital News)
Information, Communications and the Digital Economy Cabinet Secretary Eliud Owalo on Monday unveiled the Connected Africa Summit 2024. The Continental Summit will build on the gains of Connected Kenya Summit which has run for the last 12 years under the auspice of the ICT Authority. The summit, scheduled for 2nd – 5th April next year, seeks to drive Africa’s access to ICT and Innovation as it opens up for intra-Africa trade through the African Continental Free Trade Agreement (AfCFTA) focusing on the digital economy.
Speaking during the Post Connected Summit Breakfast, CS Owalo reaffirmed the Ministry’s support of the event and indicated that the launch was timely and historic for the continent’s digital partnerships, integration and development.
“As you are aware, the world is now a small global village because of technology. The Connected Summit 2024 will be an opportunity to share ideas as a continent. The Summit will further create a learning platform for Africa in the technology space so that we learn from each other and also embrace the best-case scenarios,” said the CS.
EAC urged to establish strategic partners (Tanzania Daily News)
The tenth Edition of the East Africa Internet Governance Forum (EA-IGF) has called on Information, Communication and Technology (ICT) experts in the region to take proactive steps towards ensuring that the internet continues to be a force for positive change in the region.
Jointly hosted by the East African Community and Rwanda Ministry of ICT and Innovation through the Rwanda Internet Community and Technology Alliance (RICTA), the Forum was convened under the theme: The Internet We Want – Empowering All People in East Africa. The theme is in line with the over-arching global Internet Governance Forum 2023 theme: The Internet We Want.
Rwanda’s Permanent Secretary, Ministry of ICT and Innovation, Mr Yves Iradukunda, said the internet was critical in facilitating the region’s vision of transforming into a digital economy and in doing so, the region must employ a multi-sectoral approach to ensure the people of the region are empowered by the internet. “To create the internet we want, we must ensure that it is accessible to all and that it is not too expensive. We must therefore work towards ensuring access to the internet is affordable by taking advantage of the power of competition,” said Mr Iradukunda.
“As we develop locally relevant content, as sector experts and other stakeholders, we must work together to push for development of global regulations that facilitate development of digital economies,” added the Permanent Secretary.
Africa’s food insecurity to be non-existent in the next 5 years (Business Insider Africa)
The $25 billion food security goal of the African Development Bank (AfDB) is “well on track,” according to AfDB President Akinwumi Adesina, whose organization supports programs in over 30 African nations that have contributed to the production of almost $12 billion worth of food.
“As far as I’m concerned, we shouldn’t be talking about food security in Africa more than five years from now. There’s no reason for it,” the AfDB president disclosed to the American news agency, Reuters. “We have the technology and the financing to do it at scale,” he added.
According to the report following the news agency’s discussion with the AfDB president, “Russia’s February 2022 invasion of Ukraine, one of the world’s top grain exporters, sent tremors through global grain markets, threatening food supplies for some of the most fragile nations, including many in Africa.”
Adesina brought up the expansion of special agro-industrial processing zones, which in Nigeria alone might increase from covering eight states to 35 after a recent request, during her remarks on the sidelines of the UN General Assembly sessions in New York. These are rural regions where infrastructure development is being prioritized in order to attract food and agricultural businesses.
African renewable energy localisation: Boosting global competitiveness (Moneyweb)
Despite the urgency to transition from traditional power production to sustainable alternatives – not only as it reduces environmental impact but also fosters local economic growth – wealthier nations across the globe are leading the shift while some countries, such as South Africa, are lagging.
Of crucial importance is to adapt existing products and engineering offerings to meet the demands of the renewable energy industry, with innovations such as online condition monitoring that can improve the efficiency and reliability of renewable energy projects, paving the way for a sustainable future.
South Africa has homegrown skills and resources in renewable energy, which could be harnessed and nurtured to overcome South Africa’ lag in the renewable energy space. Furthermore, these skills and resources could be exported to the rest of the continent to work with other African countries to shape a greener and more resilient future – unlocking economic benefits for South Africa and Africa.
However, to successfully develop South Africa’s domestic manufacturing capabilities and reduce the African region’s dependence on foreign suppliers, a comprehensive approach is vital with companies providing end-to-end services, including product supply, installation, and maintenance, to ensure a smooth transition to sustainable energy sources.
African nations turning serious about its cargo airports (Africa Aviation News)
While agreeing that Africa’s share in the market is too low, Bonface Muse, senior commercial officer, cargo, Kenya Airports Authority, also points out an important metric which is the intra-Africa trade and air cargo movements. As he said, “Air cargo in Africa is still less developed. We are way behind the global market. Especially, we have very little intra-Africa trade. Even at our leading airport Jomo Kenyatta International Airport in Nairobi, the business is mostly outbound to Europe, Asia and the Middle East and intra-Africa is a small percentage. The outbound is mostly fresh produce like flowers, fruits, vegetables, meat and fish.”
“African airports serve as important transportation hubs that link countries in the continent to one another and to the rest of the world. African airports are key for facilitating trade, and tourism, boosting economic development and linking people between Africa and the rest of the globe. Africa as a continent faces limitations in terms of airport infrastructure, system and policy compared to other developing continents. The air connectivity between airports is also lower thus creating a gap in what the continent could have achieved,” he said.
What is fueling the growth of cargo charter demand in Africa?
Okonjo-Iweala: We Have Seen Upsurge in Number of Countries Seeking to Join WTO (This Day Live)
Going into the MC13, there is also an atmosphere of pessimism, the world is fragmenting and we found some evidence of some of that in our Global Trade Report. But, we are not at the point where our trading system is falling. And the point we are trying to make is that for our MC13, let’s concentrate on things that our multilateral trading system can deliver. What are the deliverables? So, going into MC13, we are looking at several things.
We also have to deliver on the development agenda. Developing countries are expecting to get some benefits out of the WTO and they have tabled several demands that they would like to see... We are also looking at accessions. There are many countries coming to the WTO wanting to accede, who are not members. That is very exciting. People don’t come to join you if they think you are not doing well. Now, we have seen an upsurge and we may deliver two at the MC13. But we have about six countries that are really working hard to join.
Addressing the opening ceremony of the launch of the 2023 Africa SDGs Report in a video call, the AUC Deputy Chairperson, Dr Monique Nsanzabaganwa underlined that, the 2023 Africa SDGs Report is a living testimony that both organizations are committed “to talking the talk and walking the walk together”. She added that, this report is the result of a collaborative effort between the African Union, the United Nations, and other Regional and International partners, stressing that, the SDGs Report provides a comprehensive and balanced assessment of the progress, challenges, and opportunities for achieving the African Union’s Agenda 2063 and the Sustainable Development Goals in Africa.
“While we celebrate the remarkable achievements that Africa has made, we are soberly reminded that more needs to be done in some areas. Towards this end, the report has identified key drivers of change to accelerate the continent’s transformation, such as industrialization, digitalization, innovation, regional integration, and green transition
The report further offers a set of policy recommendations to help African countries overcome structural challenges and achieve sustainable development. These include strengthening governance and institutions, mobilizing domestic and external resources, enhancing social protection and inclusion, and building resilience to shocks,” underscored the AUC Deputy Chairperson.
India, 79 others seek support for WTO food security deal (The Economic Times)
An 80-country coalition including India, China and South Africa has begun reaching out to Arab countries and least-developed nations to build pressure on the developed economies to ensure food security for developing nations. The alliance of G33, African Group and the ACP (African, Caribbean and Pacific) group at the World Trade Organisation (WTO) has proposed a new method to calculate subsidies given to purchase, stockpile and distribute food to ensure food security for developing and poor nations.
It has also proposed that exports of foodgrains from public stocks to needy countries be allowed for international food aid and humanitarian purposes. The alliance is keen to get more support for its proposals, officials said. The coalition has suggested that a permanent solution for public stockholding should account for inflation and be based on a recent reference price.
Investment Facilitation in International Investment Agreements: Trends and Policy Options (UNCTAD)
New-generation international investment agreements (IIAs) are increasingly embracing investment facilitation features. These features are becoming more common, more diverse and more specific, with prominent examples across all continents.
Some new-generation IIAs also contain references to technical assistance or to facilitation measures targeted at investment for sustainable development. Yet, much more is needed. Save for a few exceptions, new IIAs continue to lack clear and proactive investment facilitation commitments specific to sustainable investment or the necessary level of technical assistance and capacity-building for developing countries.
The African Development Bank President, Dr Akinwumi Adesina, has said the global financial architecture constrains Africa’s development. He recommends five ways it can be made fairer.
Speaking at a high-level roundtable—Towards a Fair International Financial Architecture—at the 78th United Nations General Assembly last week, Adesina said the international financial architecture was not delivering the scale of resources needed to allow Africa to achieve its growth and development priorities. He said Africa faced a financing gap of $1.2 trillion through 2030 to finance its Sustainable Development Goals.
He said the second constraint was that the international financial architecture was not providing climate financing at the scale needed for Africa to adapt to climate change. Adesina said: “Africa contributes only 3% of global emissions and suffers disproportionately from climate change, losing $7–15 billion annually. This figure is expected to rise to $50 billion by 2030. Yet, Africa faces a climate financing gap of $213 billion annually through 2030.”
The third constraint, the Bank chief noted, was that the current international financial architecture made debt restructuring too complex to achieve, since debt restructuring is disorderly, protracted, and costly. He explained that this poses serious risks for African countries facing debt distress.
After U.N. meeting, countries brace for COP28 fossil fuel fight (Reuters)
With two months left until the U.N.’s COP28 summit, countries are far from bridging the gap between those demanding a deal to phase out planet-warming fossil fuels and nations insisting on preserving a role for coal, oil and natural gas.
The COP28 conference in Dubai scheduled between Nov. 30 and Dec. 12 is seen as a crucial opportunity for governments to accelerate action to limit global warming, yet countries remain split over the future of fossil fuels - the burning of which is the main cause of climate change. Meetings at the United Nations General Assembly (UNGA) last week reignited the long-rumbling debate, with climate-vulnerable nations like the Marshall Islands pleading for wealthier ones to quit polluting fuels and to invest in renewable alternatives.
Other countries that produce or rely on fossil fuels emphasised the potential use of technologies to “abate” - meaning capture - their emissions, rather than ending the use of such fuels completely.
Saying that “the phase down of fossil fuels is inevitable,” the United Arab Emirates’ incoming COP28 President Sultan Al Jaber told the summit: “As we build an energy system free of all unabated fossil fuels, including coal, we must rapidly and comprehensively decarbonize the energies we use today.”
How Reform Can Aid Growth and Green Transition in Developing Economies (IMF)
Many emerging market and developing economies face threats to economic growth and limited policy space due to high inflation, rising debt, and balance of payments pressures. These challenges mounted during the pandemic and were further intensified by Russia’s war in Ukraine.
Slower growth and constrained capacity to support their most vulnerable people expose some of these countries to substantial social instability risks. At the same time, these economies face the conundrum of participating in global efforts to reduce their carbon emissions and help combat climate change without sacrificing growth and jobs.
Amid such challenges, economy-wide reforms give policymakers the tools to foster growth and prepare for the green transition. As we show in a new staff discussion note, the gains from overhauling institutions and regulations for businesses and people—an enduring IMF recommendation for spurring growth—can quickly materialize even under severe economic strains, provided reforms are properly prioritized and sequenced. And these reforms are key to facilitate the decarbonization of economies.
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Prince William unveils South Africa’s Abalobi as finalist for Earthshot Prize (Engineering News)
South African community fish catch recording technology company Abalobi has been announced as one of the 15 finalists in the Earthshot Prize for its groundbreaking solution to repair and regenerate the planet. Solving the overfishing problem and restoring fish populations requires the support of local communities who depend on fishing for their livelihoods. Abalobi uses easy-to-scale technology and works with small fishing communities to record their catch data to ensure a fair and improved livelihood from sustainable fishing.
The UK's Prince William launched Earthshot in 2020 as an environmental prize to celebrate and champion the work of innovators focused on solving the world's most pressing global climate challenges. Abalobi, founded by Serge Raemaekers and Nico Waldeck as a non-profit partnership between fishers and scientists, aims to protect small-scale fishing communities and nurture their ocean stewardship, while arming their customers with better information about where their seafood comes from.
Kenya debt stock surpasses $69bn (The East African)
The stock of Kenya’s overall debt has crossed the Ksh10 trillion ($68 billion) mark on increased borrowing during President William Ruto’s first year in office, burdening the taxpayer with more repayment obligations.
New data from the Treasury and the Central Bank of Kenya (CBK) place Kenya’s debt stock at Ksh10.189 trillion ($69.3 billion) at the end of June 2023 in contrast to Ksh8.579 trillion ($58.4 billion) in June last year. The debt stock is also already above the Ksh10.13 trillion ($69 billion) that had been projected for June 2024 — mirroring the faster-than-expected accumulation of public debt and borrowing.
The split of Kenya’s public debt stands in favour of external borrowing at Ksh5.452 trillion ($37.1 billion) against Ksh4.736 trillion ($32.2 billion) in the domestic account.
First avocado consignment gets to India (People Daily)
India has expressed readiness to review tariffs on Kenya avocado exports, High Commissioner to Kenya Namgya Khampa has said. The envoy they have received petitions from Kenya on the tariff on her avocado exports. “Kenya is one of our key trading partners in Africa and therefore we are ready to listen to the appeals for the sake of growing trading among the two countries,” she said.
Kenya’s avocado exports to India are currently charged 30 per cent duty as compared to zero-rated fresh produce from the other East African Community (EAC) states. Globally, Kenya is categorised as a developing nation while EAC partners are classified as Least Developing Nations (LDC) giving them an opportunity to access most of the international market segments duty free.
The Indian government last month approved Kenya’s request to export avocados after notifying the World Trade Organisation (WTO), a new move expected to boost Kenya’s plan to expand her share in the international market. The Avocado Society of Kenya (ASOK) chief executive Ernst Muthomi welcomed the Indian government’s decision to review the export tax, saying it will make fruits from Kenya more competitive in that market.
Morocco: Solar generators offer relief to earthquake-hit villages (ESI-Africa.com)
A sustainable energy company has donated a range of solar generators to earthquake-hit Morocco as rescue and recovery efforts continue in the North African country. Joy Wu, Head of LAMEA & APAC at EcoFlow, said: “These power solutions will play a crucial role in maintaining essential communications, lighting and the storage of food and medicine.”
Call to expedite ratification of legal instruments to advance COMESA integration (COMESA)
COMESA Ministers of Justice and Attorneys General conducted their 26th meeting today in Lusaka, Zambia, with the rallying call for domestication of legal instruments that have been developed over the years by the regional bloc to advance the regional integration agenda. Key speakers at the meeting including the Secretary General of COMESA, Chileshe Kapwepwe appealed to the Ministers to help accelerate the domestication of the instruments, as this has been a challenge.
“As we deepen and widen the integration of the region, there will be need for the development of necessary community laws and policies by your assembly to support and validate the integration,” she said.
Zambia Minister of Foreign Affairs, Hon. Stanley Kakubo, who was the chief guest emphasized the need to expedite the process of implementing statutory instruments and decisions that were agreed upon in previous meetings. “The slowed signing and ratification of legal instruments is unfortunately hampering efforts to advance the programme of integrating the COMESA region as this prevents Member States from unlocking benefits embedded in these legal instruments,” said the Minister.
Nigeria’s trade with Africa up 40.8% to N1.84trn (Vanguard)
Nigeria’s trade with the rest of Africa increased by 40.8 percent Year-on-Year (YoY) in the first half of 2023 (H1’23) to N1.839 trillion from N1.306 trillion recorded in the corresponding period of 2022 (H1’22). This represents a reversal in the declining trend of the nation’s intra-African trade over the same period since 2020, in terms of value.
Available data from the National Bureau of Statistics (NBS) show that Nigeria’s intra-African trade in H1’21 amounted to N1.47 trillion out of total foreign trade of N21.79 trillion; and N1.67 trillion in H1’20 out of N14.55 trillion total foreign trade recorded within the period.
The NBS data on Nigeria’s external trade data with the rest of Africa also indicates that the intra-Africa trade is gaining more ground against total foreign trade recorded by the country in the past three years. Nigeria recorded N2.095 trillion trade with the rest of the African continent in H2’2022 out of a total foreign trade of N23.32 trillion within the period, representing 8.98 percent.
€10m project to address food security in Northern Ghana launched (Ghana Business News)
Government, European Union and the Food and Agriculture Organisation (FAO), have launched a €10 million project to support 50,000 vulnerable Ghanaians grappling with food security in some parts of the Northern Region of Ghana. The project is aimed at more economically sustainable and inclusive food systems, empowering communities to build resilient and profitable food production systems and reinforced environmental sustainability of food systems. It also aimed at enhancing social sustainability and gender responsiveness of food systems and improved governance and institutional sustainability of food systems.
The allocated funds will primarily focus on Planting for Food and Jobs, phase II (PFJ 2.0) target commodities. These efforts complement the Government initiatives to mitigate the adverse impacts of rising food, fertilizer, and fuel prices in vulnerable areas, to help alleviate poverty, hunger and malnutrition.
70 Ghanaian start-ups under AfriConEU project exposed to African market opportunities (MyJoyOnline.com)
Seventy start-ups in Ghana are receiving support in digital innovations to enhance their opportunities to gain access to the African market. The opportunity provided by the African Continental Free Trade Area will give entrepreneurs access to 1.3 billion people across the continent. The European Union-funded AfriConEU initiative is empowering local entrepreneurs to tap into the market.
The AfriConEU project empowers digital innovation hubs to catalyse digital entrepreneurship across Africa. The Ghana Bootcamp of the initiative exposed young entrepreneurs to avenues in unlocking their economic potentials by leveraging the AfCFTA platform.
Sanctions deepen economic misery in post-coup Niger (ZAWYA)
Acute deprivation is endemic in Niger, one of the world’s poorest nations. But West African sanctions aimed at forcing a return to democracy after a coup are making people’s lives worse. Food and medicines are scarce in the landlocked country, prices are skyrocketing and blackouts after regional powerhouse Nigeria cut its electricity supplies mean that factories are lying idle.
“Almost all prices have risen due to the sanctions,” shopkeeper Elhadj Ali tells his customers defensively at the bustling Dar-es-Salaam market in the capital Niamey. Regional bloc ECOWAS -- the Economic Community of West African States -- banned trade with Niger after rebel elite soldiers on July 26 overthrew Mohamed Bazoum, the democratically elected president.
Imported rice -- a national staple -- is way more expensive, with a 25-kilo bag now costing 14,500 CFA francs (about $25, 22 euros) against 11,500 CFA francs before the coup. “For the moment there are no shortages and the prevailing stocks will see us through till December,” said Chaibou Tchiombiano, general secretary of the main association of Nigerien exporters and importers. But he warned that reduced rice imports from China and Thailand could eventually lead to shortfalls.
Ghana is looking to supply Nigeria with its electricity needs following power grid shutdown (Business Insider Africa)
Mr. Hanson Monney, the Head of the Generation and Transmission Unit at the Ghanaian Ministry of Energy, emphasised that via effective policy development and implementation, Ghana has already attained an impressive 80% to 85% universal energy access inside its boundaries.
During his presentation in Lagos on the second day of the Nigeria Energy Leadership Summit, Money noted that Ghana has steadily been developing its power sector and may soon export electricity to Nigeria once the power system has been fully developed. “So, we are working on all these things to make sure that the power system of Ghana continues to be as good as it is or even better, and then, maybe, we can be exporting more to our big brothers in Nigeria when the grid is finally settled,” Mr. Hanson Monney said
In contrast, Ghana is aggressively pursuing various energy sources, including grid electricity, mini-grids, and solar-dominated renewable energy, to attain “Universal access to energy by 2024”, as instructed by the country’s President.
‘Streamlined trade, harmonised standards, others essential’ (The Guardian Nigeria)
A Fresh call has been made on the need for streamlined trade, harmonised standards and improved infrastructure in African agriculture to foster food security across the continent. President, Rest of Africa at AFEX, Sanne Steemers, who disclosed this, lamented that Africa lacks essential infrastructure for inter-continental trade, which is hindering the achievement of robust food security in the continent.
He noted that through the implementation of a more efficient agreement with African communities, the firm can promote sub-regional production networks and encourage cooperation initiatives, while promoting good agricultural practices throughout the continent. Currently, the intra-African trade stands at just 14.4 per cent of total African exports.
Steemers, who disclosed this during a session tagged: “The Real Cost of Food Security,” at the African Food System Forum 2023, said AFEX recently formed a partnership with Ghana Commodities Exchange, a move rooted in the belief that together, they can catalyse transformative change. “This partnership has been structured to facilitate cross-border knowledge exchange, foster synergistic research endeavours, and enable the seamless cross-listing of commodities, heralding a new era of progress and prosperity for Africa’s agricultural landscape.”
African Development Bank and ECOWAS assess regional integration strategy (AfDB)
The Economic Community of West African States (ECOWAS) and the African Development Bank Group have concluded consultations for the mid-term assessment of the West Africa Regional Integration Strategy Paper (RISP) 2020-2025.
The Bank Group approved the West Africa RISP 2020-2025 in May 2020 to support regional integration efforts in West Africa. With an initial indicative investment plan of $4.52 billion, the West African RISP focuses on improving resilient infrastructure and supporting the development of regional businesses.
The meetings took place from 5 to 15 September 2023 at the headquarters of the ECOWAS Commission in Abuja, Nigeria. During the period, the two sides assessed the key midterm results alongside a performance review of the Bank’s regional portfolio.
BizTech: How digital payments can be deployed to improve cash lite agenda (GhanaWeb)
The deployment of digital payments in emerging economies like Ghana continue to bring efficiency and improve transactions. For instance, Ghana’s mobile money market has been one of the fastest growing in Africa, and among the biggest with various firms providing the needed solutions to ease payments and enhance a cash lite agenda. One of such firms is eTranzact Ghana which is deploying rather pragmatic measures aimed at improving the digital payment space.
Chief Executive Officer of the firm, John Obeng Apea taking his turn on GhanaWeb TV’s BizTech shared how innovation continues to play a significant in Ghana’s payment space as well as the emergence of Artificial Intelligence in propelling the sector even further. He stressed that the implementation of the Africa Continental Free Trade Area presents a unique opportunity that will boost the digital payments ecosystem once the right trade barriers are eased with the needed reforms.
“I think the main role of government is to make the atmosphere conducive in terms of regulations and policies...taxes are good but overtaxing is also bad so we need to find an equilibrium to balance it out and make the digital payments space more conducive,” John Apea told Mawuli Ahorlumegah.
Organisation Identifies Cybercrime as Threat to Africa’s Digital Transformation (Voice of Nigeria)
The Africa Internet Governance Forum (AIGF) has identified cybercrime as a big threat to Africa’s digital transformation strategy. This was one of the recommendations at the twelfth African Internet Governance Forum, with the theme ‘Transforming Africa’s Digital Landscape: Empowering Inclusion, Security and Innovation’, which ended on 21 September 2023 in Abuja, Nigeria. The Forum also calls for an urgent need for governments across the continent to increase their investment in cyber security.
In a recommendation signed by all members, AIFG said “Cybercrime remains a potential threat to the implementation of AU 2063 agenda and AU’s digital transformation strategy. African Union and African government to ensure adequate investment to fight cybercrime activities, ensure international cooperation, and capacity building for lawmakers and enforcement actors, the judiciary and other necessary actors,” the AGIF said
The Forum noted that Africa’s digital workforce strategy is reactive and that urgent investment is required to bridge the digital divide and to develop the digital workforce that is needed for innovation.
African Development Bank and Google collaborate on digital transformation in Africa (AfDB)
The African Development Bank and Google on 20 September 2023 formalized cooperation aimed at advancing digital transformation in Africa. The parties signed a Letter of Intent during the Global Africa Business Initiative at the United Nations General Assembly in New York. The agreement underscores a shared commitment to harness emerging technologies, extend and improve infrastructure, and refine talent and skills in the continent.
Both parties have a history of fostering digital evolution. Over the past decade, the African Development Bank has invested $1.9 billion in projects emphasizing the development of broadband infrastructure, conducive policy and regulatory environments, digital skills, and innovative technology startups.
“Our journey from a 2% telephony penetration in 1998 to today’s era of 4G, 5G, and AI signifies immense progress. With 70% of sub-Saharan Africans under 30, our focus is on catalyzing businesses to create jobs and offer innovative solutions,” said Dr. Akinwumi Adesina, President of the African Development Bank.
Google has been a longtime partner in Africa’s economic growth and digital transformation. In 2005 Google invested in a major submarine telecommunications cable - the Seacom cable. Since then, Google has been committed to digital transformation by supporting talent development, innovation, infrastructure, and regulatory advancements across the continent.
Harnessing GovTech to Tax Smarter and Spend Smarter (IMF)
Digitalization is a transformative force as powerful as the advent of the printing press in the 15th century or electricity in the 19th. Yet some governments have been slow to harness the potential of digital technology to improve delivery of public services and strengthen public finance.
Emerging and developing countries have the most potential to leapfrog their development trajectory by adopting digital technologies. These countries lag considerably behind in internet connectivity, a key enabler for adopting and using digital technologies. Globally, about 2.7 billion people still need to be connected. Within countries, a digital divide persists across age and gender. Bridging this divide and benefiting from digitalization takes adequate digital infrastructure.
Our estimates show that $418 billion of investment in digital infrastructure is needed to connect unconnected households. The bulk of these investment needs are in emerging market and low-income developing economies, with the latter’s requirements estimated at 3.5 percent of GDP. Government support can be crucial in achieving universal connectivity by incentivizing or directly investing in building internet infrastructure, especially in regions where profitability remains challenging.
The African Development Bank President, Dr Akinwumi Adesina, has pledged his institution’s full support to the United Nations Secretary General’s Early Warning for All initiative and the Systematic Observations’ Financing Facility. The Bank is the implementing entity for the Facility in Africa.
Speaking yesterday at the United Nation’s Climate Ambition Summit session, Delivering Climate Justice: accelerating ambition and implementation on adaptation and early warning systems for all, Adesina said climate change was devastating Africa’s economies.
He pointed out that the continent accounted for just 3% of total emissions globally and was losing $7-$15 billion annually from climate change, an amount that is projected to rise to $50 billion in the next seven years.
The African Development Bank chief emphasised that despite its relatively minuscule level of total emissions globally, Africa receives a mere 3% of total global climate finance. He said the continent was facing a climate finance gap of $213 billion through 2030.
Ruto: Remedy to ‘unfair’ global financing model will be found (The Star)
President William Ruto revisited the debate on the international financing model during the Global Africa Business Initiative forum in New York. In a discussion attended by African Development Bank (AfDB) President Akinwumi Adesina among other leaders, Ruto sustained his call to have reforms at the IMF and World Bank undertaken. Ruto, in his presentation, expressed optimism that the much-needed reforms that favour African nations will soon be realised as the matter was now a discussion among global leaders.
“They are listening. The conversation about IMF reforms was in murmurs a few years ago, today it is being talked by no less than the President of the United States,” Ruto said. He added: “They have come to the realization that it is no longer possible to run the system the way it has been run...so everybody is listening so what is remaining is the how and we are going to show them the how.”
Ruto has been vocal in calling for a total overhaul of the current financial institutions saying their conditionality is unfair to African countries. “We also insist quite firmly that international development financing must be more appropriate for the needs of our existential moment, in terms of accessibility, affordability, and adequacy,” Ruto said five months ago during the third Regional Symposium on Greening Judiciaries in Africa.
Ruto added: “That is why we are insisting we must rethink the international financial system, we align it with reality. The model is not sustainable.”
In the aftermath of the COVID-19 pandemic, emerging market and developing economies are grappling with economic scarring, social tension, and reduced policy space. Policy actions are already urgently needed to boost growth in the near term and support the ongoing green transition. At the same time, high public debt and persistently high inflation have constrained policy space, posing difficult policy trade-offs.
This Staff Discussion Note focuses on emerging market and developing economies and proposes a framework for prioritization, packaging, and sequencing of macrostructural reforms to accelerate growth, alleviate policy trade-offs, and support the green transition. The note shows that prioritizing the removal of the most binding constraints on economic activity, bundling reforms (governance, business deregulation, and external sector reforms), and appropriate sequencing of other reforms (such as labor market and credit sector reforms) can help front-load reform gains.
In emerging market and developing economies with large initial structural gaps, the estimated output effects of such a major reform package are sizable—about 4 percent in two years and 8 percent in four years. Achieving higher growth and lower absolute carbon emissions over time requires a well-designed strategy that includes both macrostructural and green reforms.
Decarbonizing Urban Transport for Development (World Bank)
‘World’s breadbaskets’ are sinking, General Assembly chief warns (UN News)
For many countries, especially the Small Island Developing States, the matter at hand represents an existential threat. ”This is not a speculation or over-exaggeration. It is real,” explained Mr. Francis, substantiating his words with data from the Intergovernmental Panel on Climate Change (IPCC). The UN body assessing the science related to climate change, estimates that under current conditions the global-mean sea level is likely to rise between eight and 29 centimetres by 2030, with equatorial regions suffering the most.
“Not only do we risk losing land, but also the rich cultural and historical heritage of these islands and regions that have helped to shape people’s identities,” alerted Mr. Francis the dignitaries, who gathered at the early morning event.
WTO members address electronic commerce and technology transfer in final thematic session (WTO)
WTO members discussed electronic commerce and technology transfer on 21 September as part of the eighth dedicated discussion held this year under the Work Programme on Electronic Commerce.
Ambassador Usha Dwarka-Canabady of Mauritius, the facilitator of the Work Programme on Electronic Commerce , welcomed the exchanges which took place at the meeting. These included experience-sharing by members and discussions on technical assistance aimed at helping developing members bring technology to the forefront of their economic development.
The meeting included a presentation by Egypt on an African Group communication regarding the role of transfer of technology in resilience building.
Plastics Pollution Dialogue makes progress on draft MC13 statement (WTO)
At a meeting of the Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade on 21 September, WTO members and stakeholders discussed the first draft of a potential statement on plastics pollution to be issued at the 13th Ministerial Conference (MC13) in February 2024. The coordinators of the Dialogue welcomed positive feedback from participants, describing the revised draft as an important step closer to achieving “concrete, pragmatic, and effective” outcomes at MC13.
Ambassador Matthew Wilson from Barbados, Chair of the meeting, reiterated the challenging nature of the battle against plastics pollution. He pointed out that the world currently has 170 trillion plastic particles floating in the ocean, and by 2050, there will be more plastics than fish. In response, the WTO has taken action through the work of the Dialogue, as shown in the recent draft statement, he said.
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Kenya targets China imports in new tax evasion crackdown (The East African)
Chinese imports are set for tighter scrutiny as President William Ruto’s government intensifies a purge on entities and individuals who undervalue products shipped from the Asian nation, denying Kenya billions of shillings in tax revenue. The Treasury in its revenue strategy for the medium-term plans to deploy the Kenya Revenue Authority (KRA) for special partnerships with its counterpart agencies in other jurisdictions to determine the true value of imports shipped in from China.
Kenya imports most of its finished goods—from electronics to clothes—from China. However, the government reckons that the value of most of these products—especially electronics such as mobile phones and computers — have not been accurately priced, leading to tax leakages running into billions of shillings.
As part of its revenue administration measures that will be implemented in the strategy period, the Treasury said the government will be working with other tax authorities in determining the true value of “high-risk imports from China”, in what is aimed at addressing the problem of misinvoicing. Trade misinvoicing involves manipulating the price, quantity, or quality of a good or service on an invoice so as to shift capital illicitly across borders.
In 2022, Kenya imported goods valued at Ksh452.6 billion ($3.1 billion) from China, an increase from Ksh441.4 billion ($3 billion) the previous year, data from the Kenya National Bureau of Statistics (KNBS) show.
Land compensation issues delaying Ibadan Dry Port (ZAWYA)
Speaking during a visit to the Oyo State Ministry of Trade and Investment, the Director, SouthWest Zone and National Coordinator of the Presidential Port Standing Task Team, Mr. Moses Fadipe, stated that, “One of the germane issues surrounding this visit is the compensation to the land owners at the Inland Dry Port site at Olorisa-Oko, Moniya, Ibadan. Responding on the land compensation delay, the Permanent Secretary, Ministry of Trade and Investment, Dr Bunmi Babalola, said paucity of funds led to delay in completing compensation to the land owners.
ECOWAS to commence Lagos-Abidjan highway construction in January, 2024 (Nairametrics)
The Commission of the Economic Community of West African States (ECOWAS) has indicated that construction of the 1028-kilometer Abidjan-Lagos highway project is set to commence in January 2024, beginning with the procurement for the main construction and the actual construction work. At a workshop convened in Lagos by the project implementation Unit of the Commission’s Spatial Development Initiative to exchange ideas and comprehensively assess the highway project’s physical, economic, and social aspects.
Ebere Izunobi, the chairman of the Spatial Development Initiative, revealed that experts from five member countries, namely Nigeria, Ghana, Togo, Benin Republic, and Cote D’Ivoire, were convened to discuss the project aimed at transforming the lives of people living along this corridor. He emphasized that transport infrastructure has been accorded top priority in the ECOWAS commission’s programs.
Furthermore, he disclosed that the project was deliberated upon and approved during the meeting of the Heads of state. The highway, known as the “Abidjan-Lagos Corridor Highway,” spans approximately 1028 kilometres, connecting major cities and traversing an area with significant economic potential.
Comesa Ministers Link High Transport Cost to Inadequate Infrastructure (Kenyan Wallstreet)
Inadequate rail, road, air and waterways network is driving up the value of exports by as much as 70 per cent for the landlocked countries within the Comesa region. Ministers of infrastructure from the COMESA region are calling for mobilization of funds from national resources, public private partnerships, foreign direct investment and development partners to close the rising infrastructure gap.
Since the onset of the COVID-19 pandemic, the infrastructure gap has increased as resources were shifted towards the needs of the pandemic. It is estimated that African infrastructure gap increased in the year 2020 to between $59 billion and $96 billion.
Rwanda Minister of State in the Ministry of Infrastructure, Patricie UWASE, noted that despite the positive efforts of Member States, regional infrastructure is still lacking in terms of its quantity and quality. In addition, she noted, national policies sometimes hinder ease of trade, mobility and logistics. “Inadequate networks of road, rail, air and waterways make transport costs in Africa to be among the highest in the world. For the landlocked countries, these costs account for as much as 70 percent of the value of exports,” she added. She called on the ministers to provide policy guidance to facilitate development and adoption of practical solutions to mitigate the infrastructure challenges to ensure adequacy of the infrastructure in relation to current and future demand.
AfCFTA offers massive investment opportunities to the transport sector (African Business)
The 2030 Agenda for Sustainable Development has mainstreamed sustainable transport across many SDGs and targets, particularly those related to food security, health, energy, economic growth, infrastructure, and cities and human settlements. Experts agree that Africa needs a seamless and efficient transport sector to deliver on the trade boom envisaged with the operationalisation of the African Continental Free Trade Area (AfCFTA); in other words, transport drives trade.
Estimates show that the African Continental Free Trade Area (AfCFTA) will increase the demand for road, rail, maritime and air transport by 50%. This is a huge undertaking, calling for a similar roll-out in requisite infrastructure for Africa to be able to transport massive amounts of cargo and support the intra-African exchange of services and movement of people.
The effect of the full implementation of the AfCFTA on transport in the movement of goods and services is provided in a report by the UN Economic Commission for Africa (ECA): Implications of the African Continental Free Trade Area for Demand for Transport Infrastructure and Services. The report says that integrated planning of trade and transport will bring more benefits to AfCFTA signatories as a result of growing demand for different modes of transport.
“Currently, intra-African freight transport demand is heavily skewed towards road transport, with a nearly zero share for rail transport. We know that this distribution on the transport terrain can improve, with efforts to improve African transport policies to expand the rail network, combined with trade policies to implement the AfCFTA,” says ECA’s infrastructure expert and lead author, Robert Lisinge.
Recognizing the urgent need to address the persistent barriers affecting the provision of universal infrastructure services on the continent including policy, regulatory, financial, technical and capacity challenges in addition to the urgency required to respond to new challenges impacting Africa’s development including climate change, Russia-Ukraine crisis, and disruptions in global supply chains, African Ministers of Transport and Energy have adopted far-reaching decision to accelerate project implementation in the sectors.
At the just concluded 4th Ordinary Session of the Specialized Technical Committee on Transport, Transcontinental and Interregional Infrastructure, and Energy, the ministers forged solutions for Member States and Regional Economic Communities (RECs) to harmonise strategies, strengthen cooperation and accelerate implementation of projects to facilitate access to modern, sustainable, climate-resilient and universal access to infrastructure services to achieve the goals of the AU Agenda 2063 for continental integration, prosperity and peace.
The cost of transportation in Africa is on average 50 – 175% higher than other parts of the world as a result of poor infrastructure. About 60,000km and 100,000km of new roads are required to provide effective intracontinental connectivity in Africa by 2030. The current pace of infrastructure development in Africa cannot keep up with rising demand from communities and markets, subsequently having an impact on Africa’s competitiveness and participation in global markets. The poor state of infrastructure has led to the reduction of national economic growth by 2% annually in most African countries and as much as 40% reduction in industrial productivity.
To accelerate implementation of commitments and projects supporting transcontinental and Interregional Infrastructure, the ministers made emphasis on the importance of designing climate resilient and smart infrastructure projects and the importance of digital solutions and new emerging technologies in designing and enhancing efficiencies of transport and energy infrastructure projects and services.
Trade Policy Review: Central African Economic and Monetary Community (CEMAC) (WTO)
Of the six countries of the Central African Economic and Monetary Community (CEMAC), five are Members of the WTO and are covered by this report prepared for their second joint trade policy review, namely Cameroon, the Republic of the Congo, Gabon, the Central African Republic (CAR) and Chad. The sixth country, Equatorial Guinea, submitted its request for accession to the WTO in 2007 and the process is still ongoing.
The regional economy has a very low degree of diversification and depends heavily on natural resources, including oil and timber. Oil activities attract the majority of private investment, including foreign investment, in the region, with the exception of the Central African Republic. Oil accounted for around a quarter of CEMAC's gross domestic product (GDP), some two thirds of total exports and 42% of budgetary revenues in 2019, figures which were down compared to 2012. Most of the oil production occurs in Congo (40.4%), Gabon (21.5%) and Equatorial Guinea (16.7%). With the exception of Chad, timber remains the most important export of the other countries. A lack of investment means that other natural resources are underexploited.
The sharp drops in oil revenues, caused by falling prices and production over the last decade, have weakened the regional economy and contributed to lower foreign-exchange reserves. The consequences of the COVID-19 health crisis and the war in Ukraine have also played a role in slowing CEMAC economic activity and fuelling inflation. However, CEMAC's trade balance has remained in surplus, oil exports continue to be substantial, and exports of timber and gold, particularly to Asia, have increased significantly. As for intra-CEMAC trade, it remains low (3.5% in 2019) due, in part, to the structure of exports, the countries' weak industrial fabric, underdeveloped transport and communication infrastructure, non-tariff barriers, and the States' failure to implement certain Community provisions.
The services sector accounts for close to 50% of the GDP of CEMAC, followed by the mining and energy sector (nearly 20%), the agricultural sector (around 12%) and the manufacturing sector (11%).
Positive growth continues albeit fragile and with persistent inflation posing a key risk (OECD)
The global economy was stronger than expected in the first half of 2023, but the growth outlook is weak, inflation is proving persistent and there are significant downside risks, according to the OECD’s latest Interim Economic Outlook. With monetary policy working its way through economies and a weaker-than-expected recovery in China, the Outlook projects global growth of 3.0% in 2023 and 2.7% in 2024.
“Our projections in today’s Interim Economic Outlook are broadly in line with our previous forecasts. Further significant stress in financial markets has been avoided so far, after the turbulence due to bank failures earlier in the year. That said, the global economy continues to confront the challenges of elevated inflation, low growth and comparatively weak trade,” OECD Secretary-General Mathias Cormann said. “The priority for macroeconomic policy is to reduce inflation and re-build fiscal buffers. In parallel, in order to lay the groundwork for stronger and more sustainable growth longer term, policy action is needed to enhance competition, accelerate investment in low-carbon research and development and reduce rather than increase trade barriers.”
Carbon Prices Should Be 20-Times Higher, The Two Congos Say (Bloomberg)
Carbon credits produced in Africa and used by companies to offset pollution by paying for forest conservation on the continent should be at least 20 times more expensive than current prices, two presidents of Congo Basin nations said. A higher price would reduce the appetite for resource extraction and spur development in poorer countries, particularly those in Africa, according to Democratic Republic of Congo’s Felix Tshisekedi and Republic of Congo’s Denis Sassou Nguesso.
Themes of the Africa Climate (Finance) Summit: Loans, Taxes, Credits (tralac)
Europe’s Carbon Border Adjustment Mechanism to establish new rules of global trade (African Mining Market)
The Carbon Border Adjustment Mechanism (CBAM), a policy that will require producers of goods imported into the European Union (EU) to pay an emissions levy, should fast-track decarbonisation efforts, but also result in prices rising across several sectors sharply – according to the latest Wood Mackenzie Horizons report. The new report titled Playing by new rules: how the CBAM will change the wor
World leaders adopted a pdf Political Declaration (258 KB) yesterday calling for stronger international collaboration and coordination at the highest political levels to better prevent, prepare for and respond to pandemics, as the General Assembly held its first ever high-level meeting on the subject.
In the wide-ranging document, the Assembly committed to work to make access to pandemic-related products — such as vaccines, diagnostics and therapeutics — timely, sustainable and equitable, while calling on the World Health Organization (WHO) to coordinate this with relevant partners.
Opening the day-long debate — convened under the theme “Making the world safer: Creating and maintaining political momentum and solidarity for Pandemic Prevention, Preparedness and Response” — Assembly President Dennis Francis (Trinidad and Tobago) described the COVID-19 pandemic as “one of the most pressing global challenges of our time”, adding that its impact on economies and health systems would last for years to come.
UN sets out bold solutions to rescue SDG finance (UN News)
The big objective of the major UN General Assembly meeting is to unlock innovative and practical solutions to close the widening divisions between rich and poor. The UN Department of Economic and Social Affairs which drives the UN’s effort on SDG financing, notes that although fiscal challenges are mounting, “there is a window of opportunity if we act now.”
Most developing countries suffer from severe debt problems. And one in three countries around the world is now at high risk of suffering a fiscal crisis, according to the UN. These countries cannot fund progress on the SDGs if they are facing exorbitant borrowing costs and paying more on debt servicing than on health or education.
“Developing countries face borrowing costs up to eight times higher than developed countries – a debt trap”, warned UN Secretary-General António Guterres, “and one in three countries around the world is now at high risk of a fiscal crisis. “Over 40 per cent of people living in extreme poverty are in countries with severe debt challenges”.
Developed economies urged to accelerate climate action (SAnews)
Reform the international financial architecture – President Ramaphosa (SAnews)
African leaders take bold stand for sustainable development at UN Assembly (UN News)
A recurring theme in speeches delivered by the Presidents of Seychelles, Namibia, Ghana, Angola, Sierra Leone and Liberia was the urgent need to rebuild trust and rekindle global solidarity in the face of complex changes. They expressed unwavering support for the 2030 Agenda and its Sustainable Development Goals (SDGs), emphasizing that the current trajectory falls short of ambitions, further exacerbated by the COVID-19 pandemic. In their addresses, leaders also highlighted the need for reform of the Security Council to make that 15-member body more representative and effective.
President João Lourenço of Angola also highlighted the need for the United Nations to strengthen its role and its capacities to formulate the most appropriate responses and thus be able to face the many challenges. “It is essential that we do everything in our power to continuously promote respect for and observance of the values set out in the UN Charter and international law, so that we can correct the dangerous trajectory that the world took after the fall of the Berlin Wall,” he said.
Fragile States Need Customized Support to Strengthen Institutions (IMF)
Fragile and conflict-affected states have been among the worst hit by the pandemic, Russia’s war in Ukraine, the increase in energy and food prices, climate change, and intensified political instability. Each new crisis aggravates underlying fragilities and creates spillovers that can destabilize entire regions.
Conflicts forcibly displaced a record 108.4 million people last year, many of them refugees hosted in neighboring countries where fiscal conditions are already tight and growth prospects are weak. Fragility and conflict drive fragmentation and can cause reversals in trade, capital flows, and investment. Therefore, supporting fragile states by strengthening their economic and fiscal institutions is a global public good, as all countries can benefit.
The economic fallout from the pandemic hampers policymaking in these countries, which have endured large economic losses compared to pre-pandemic projections. The 39 fragile and conflict-affected states experienced a large loss in economic growth rates between 2019 and 2023 compared to pre-pandemic projections.
Africa needs skills and infrastructure to grow trade (Freight News)
Africa needs to confront its stifling non-trade barriers, and countries must home-grow or import skills if they want to develop and raise the level of intra-continental trade and reap the benefits of the African Continental Free Trade Area (AfCFTA). Fouche said this could be done by spending ten years to develop skills locally or by importing them under stringent conditions to establish a new industry as successful countries like New Zealand, Australia, Canada and the United Kingdom have done with their immigration policies.
SA to host US-Africa trade summit despite Russia spat (Times LIVE)
Related News
tralac Daily News
Forex shortage challenging intra-Africa trade (Engineering News)
Intra-country trade across Africa is stuttering as businesses struggle to find the foreign currency, most notably the dollar, needed to pay for imports. This shortage has been caused by the depreciation of local currencies, higher interest rates and capital flight in the continent’s developed markets, the latest Standard Bank Africa Trade Barometer (ATB) shows.
This barometer was launched last year to address the information vacuum surrounding African trade data and is now one of Africa’s leading trade indexes, supporting the growth of intra-Africa trade. The fact that most surveyed businesses were small businesses is one of the central value-adds of the publication.
In its third issue, the barometer concentrates on ten countries – Angola, Ghana, Kenya, Mozambique, Namibia, Nigeria, South Africa, Tanzania, Uganda and Zambia. “Although there are many tariffs and other non-tariff barriers inhibiting intra-Africa trade as defined and articulated in the African Continental Free Trade Area (AfCFTA) Agreement, one of the key non-tariff barriers is information. “The ATB is helping address this lack of access to information through up-to-date survey data on the views of African businesses, the environment they operate in, trade behaviour and their perceptions on trade,” says Standard Bank Business and Commercial Clients division head of trade and Africa-China Philip Myburgh.
Seven broad categories are used to construct the ATB Index ranking by collecting data from primary and secondary sources. These categories are trade openness, access to finance, macroeconomic stability, infrastructure, foreign trade, governance and economy and traders’ financial behaviour.
PPC reports 5% y/y growth in South Africa and Botswana cement business (Engineering News)
The revenue for cement manufacturer PPC’s South Africa and Botswana divisions for the five months ended August 31 increased by 5% year-on-year, the company reported in an operating update on September 20. This increase was driven by higher average selling prices, despite weaker cement sales volumes during the period.
Additionally, revenues from the group's other operations in both Zimbabwe and Rwanda were significantly stronger than the previous year, increasing by 58% when measured in dollars and 19% when measured in rands.
Overall, group cement sales volumes, including for the Zimbabwe and Rwanda operations, for the five-month period were 3% higher year-on-year, primarily owing to exceptionally strong growth in Zimbabwe and, to a lesser extent, Rwanda.
SA ports of entry upgrade on the way (defenceWeb)
South Africa’s six busiest ports of entry – all land-based – are in line for an upgrade to make them more people and trade friendly, Home Affairs Minister Aaron Motsoaledi told a media briefing earlier this month (September). The ports of entry earmarked for betterment via development in public/private partnerships (PPPs) are Beitbridge – Zimbabwe; Lebombo – Mozambique; Maseru Bridge – Lesotho; Ficksburg – Lesotho; Kopfontein – Botswana; and Oshoek – Eswatini.
Explaining the redevelopment rationale, the Minister said: “South Africa’s ports of entry were designed during the apartheid era with the primary objective of tightened security while neglecting effective facilitation of regional and international trade. It is not an over exaggeration to state that when you visit our land ports of entry, between us and our SADC (Southern African Development Community) neighbours, the South African side of the border looks like informal settlements while the other side looks like Sandton”.
The redeveloped ports of entry will, according to Motsoaledi, see efficient cross-border management of movement of people, goods and services as well as “improved administration” of people entering and leaving South Africa. He named economic plusses – better regional integration, enhanced support for the African Continental Free Trade Area (AfCFTA); improved revenue collection and “addressing leakages” from illegal movement of goods and illicit financial flows and protecting local industry from harmful imports and exports as well.
On Friday, 22nd September 2023, FAO will conclude a nine-month assessment of Eswatini’s food control system with a final workshop in Manzini where high-level executives are expected to endorse the recommendations of the final report and commit to implementing its strategic plan. The assessment is part of “Strengthening of Capacities and Governance in Food and Phytosanitary Control,” a 5-million-euro project funded by the European Union which began in November of 2022 to provide technical support and work with Competent Authorities and other leading institutions in 11 Common Market for Eastern and Southern Africa (COMESA) Member Countries.
The final workshop will be the culmination of the nine-month assessment. Focal points and stakeholders involved in the country’s food control system from across the country will meet in Manzini from September 19 to 22 to review the findings and recommendations of the assessment, agree on priorities, and develop a strategic framework to facilitate its implementation. The key moment of the workshop will be on September 22 when high-level officials from Ministries across the country’s food safety control system are expected to approve and endorse the recommendations and the shared vision for the food control system, commit to implementing the strategic plan, promoting synergies, and engaging donors.
Zimra to roll out new tax admin system (The Herald)
The Zimbabwe Revenue Authority (ZIMRA) is set to introduce a new tax system next month in a bid to revolutionise the tax administration terrain in the country through an efficient, effective, and easy-to-navigate system based on a digital platform. Known as the Tax and Revenue Management System (TaRMS), it is a product of ZIMRA’s business process re-engineering (BPR) programme launched in 2022. The BPR identified digitalization as the key aspect of improved service delivery to ZIMRA’s diverse clients.
The TaRMS commenced in 2022 following an intensive user needs analysis and assessment. It is being introduced to close the gaps that have historically affected efficient revenue collection. This is also in line with the authority’s shift towards automation and digitalization.
ZIMRA commissioner-general Ms Regina Chinamasa said the advanced automation system expected to go live on October 12 would not only address the revenue collection but also help trade facilitation. It is also expected to address challenges that ZIMRA has been facing including revenue leakages. This is in addition to being more user-friendly, a key enabler for ensuring voluntary tax compliance.
“Faced with the persistent system challenges, ZIMRA benchmarked with good practices in revenue administration and supporting systems and identified system gaps necessitating the modernisation agenda undertaken from 2020,” said Mr Chinamasa during a stakeholder engagement meeting to unpack the new system on Monday.
Uganda embarks on initiatives to revive declining edible oil production (Monitor)
Uganda has initiated the rehabilitation of key access routes to oilseed projects in 81 locations in an effort to bolster its diminishing edible oil exports. The nation is exploring strategies to revitalise its dwindling export earnings from edible fats and oils, which fell from Shs1.05 trillion in the same period last year to Shs338.2 billion in July 2023.
Uganda has been grappling with the production of this highly sought-after product, with a surge in global demand last year exacerbated by a conflict in Ukraine, one of the world’s leading vegetable oil producers. This conflict disrupted supply chains and inflated prices in the local market. The country currently satisfies less than 40 percent of the demand and is striving to enhance its output by rejuvenating oilseed projects in various districts across the nation, incorporating value addition, and upgrading transportation links to market centers.
Import bill falls for first time since Covid (Business Daily)
Kenya has this year posted a drop in the value of imports for the first time since the Covid-19 pandemic era due to reduced expenditure on key supplies such as materials for factories, machinery and fuel, fresh official data show. Traders spent Sh1.43 trillion on goods ordered from abroad for the first seven months of the year compared with Sh1.46 trillion in a similar period last year, according to the data collated by the Central Bank of Kenya. The 2.09 percent— about Sh30.57 billion— fall has come when global prices of major imports moderated as disruptions in supply chains eased, helping to cut the cost of shipping.
Challenges in global supply chains were last year exacerbated by Russia’s war in Ukraine at a time when they were yet to recover from pandemic-induced shocks. The drop in import bill was largely helped by a 15.83 percent fall in expenditure on intermediate goods used by manufacturers to Sh212.43 billion in the January-July period from Sh252.37 billion in a similar period last year. Kenyan factories largely rely on foreign markets for the supply of materials.
The overall drop in imports helped to narrow Kenya’s goods trade deficit – the gap between merchandise exports and imports – in the review period by 8.81 percent to Sh867.53 billion. The shrink in goods trade imbalance came despite earnings from exports growing at the slowest pace since the pandemic.
Nigeria tasked on Africa’s $300b digital economy gains (The Guardian Nigeria)
Nigeria has been asked to take advantage of the $300 billion potential economic gains that await Africa’s digital economy by 2025. This advice came from the Head of Privacy Policy, Africa, Middle East and Turkey, Meta, Dr. Ololade Shyllon. She said huge economic potential awaits Nigeria and others if they can key strategically into the region’s digital economy, stressing that this has been propelled by the African Continental Free Trade Area (AfCFTA) agreement.
Stressing the importance of harmonising data regulation in the region, the Meta chief, said currently 35 African countries have different data regulations unlike the European Union (EU), which has only a single data regulation. According to her, Africa must harmonise data regulation to be able to benefit immensely from the potential of the region.
“Free flow of data across the region is essential to boost trade. While data must be protected, a restricted data ecosystem would be a very big problem for Nigeria and others. Data kept at stagnation doesn’t make it valuable until it is used,” he stated.
Nigeria, Benin Republic Customs Sign Trade Agreement (The Tide News Online)
The Customs Administrations of Nigeria and Benin Republic, recently at a two-day interactive session in Abuja, signed an agreement to develop frameworks for clearing of Nigeria bound goods in Benin Ports and vice versa. The two customs administrations agreed to collaborate to enhance trans-border security and regulate trade between the two countries.
The agreement is expected to deepen the relationship between Nigeria and Benin while promoting their age-old bilateral trade ties. Other areas that the partnership will address include enhancing the proper use of International Transit Guidelines to govern transit-bound goods and fees from Cotonou Port to Nigeria, as well as Integration of Nigeria into the Interconnected System for the Management of Goods in Transit.
It will also enable the countries to foster closer ties between then, while also reactivating the joint committee for monitoring trade and transit relations. Since the signing of the important agreement, many have been left in doubt as to its benefits to Nigeria as a nation, even as many have als argued that by this development, Nigeria would be taking its market and labour to Benin Republic.
Trade volume between Türkiye, Africa rises eightfold to $40.7B (Daily Sabah)
The trade volume between Türkiye and African countries has increased eightfold in the last two decades and reached $40.7 billion (TL 1.1 trillion), Deputy Foreign Minister Yasin Ekrem Serim said Tuesday. Speaking at the closing of the 9th World Cooperation Industries Forum (Wci Forum) held in Istanbul between Sept. 18-19, Serim emphasized that the African continent stands out as the rising value of the 21st century with its cultural accumulation and enormous potential.
“Our trade volume with Africa has increased eight times. The figure, which stood at $5.4 billion in 2003, amounted to $40.7 billion in 2022. The value of direct investments exceeded was by $6 billion,” Serim said, adding that President Recep Tayyip Erdoğan is positioned as the world leader who pays visits to the continent the most. The forum with the main theme, “Addressing Challenges, Unlocking Opportunities: Building Stronger Türkiye-Africa Economic Partnerships,” prioritizes the energy, infrastructure, agriculture, agribusiness, health care, tourism and digital marketing sectors.
Third Global Trade and Supply Chain Summit kicks off in Dubai (Emirates News Agency)
The third Global Trade and Supply Chain Summit, organised by The Economist Impact, kicked off today at The Address Dubai Marina Hotel, Dubai. Bringing together thought leaders, trade and supply chain policymakers, analysts, UN representatives and C-level officials in vital sectors, the event aims to address ways to boost the resilience of global trade operations, the essential link connecting sustainability and supply chains, and the role of emerging markets over the next years.
The Summit covers a host of various themes including the effects of geopolitical and economic turmoil on planning and supply-chain operations, digital trade and technology, the changing role of customs organisations and compliance teams, and measuring and deploying sustainability initiatives along the supply chain.
Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade said in his keynote remarks, “Trade has been essential to the development of the UAE, powering our economic vision by opening new markets, stimulating industrial productivity, creating jobs and introducing new skills and capabilities. It is why we remain a committed advocate of the multilateral trading system. But it is essential trade evolves with the times, adapting to new technologies, developmental challenges and environmental responsibilities. As we build towards MC13, we will be restating the case for open, accessible and well-regulated supply chains – and using platforms such as the Global Trade and Supply Chain Summit to urge stakeholders and policymakers to come together to make them fit for the 21st century.”
The number of international investment projects announced in developing countries in sectors relevant to the Sustainable Development Goals (SDGs) increased by 15% in 2022. However, the growth was unbalanced, with some SDG sectors showing only slow progress. It was also uneven, with negative trends in LDCs (-9%) and stagnation in many other developing countries.
UNCTAD’s review at the midpoint of the 2030 agenda shows that the annual SDG investment gap in developing countries is now about $4 trillion. If the SDG investment needs to 2030 are to be met, some $30 trillion of additional investment must be found over the next eight years. More than half of the gap, or $2.2 trillion, relates to the energy transition alone.
IMF, World Bank, OECD Seek More Consistent Climate-related Financial Data Globally (This Day Live)
SDG Progress report 2023 (FAO)
As SDG Summit Concludes, Secretary-General Urges World Leaders to Lift Political Declaration ‘Off the Page’, Invest in Development Like Never Before (United Nations)
The Political Declaration adopted yesterday leaves world leaders with “a to-do list” to turn words into action to attain the Sustainable Development Goals (SDGs), the United Nations chief said today at the close of the SDG Summit, proposing key measures, including reform of the global financial system and increased availability of liquidity to countries in debt distress.
“We must make the most of this Summit’s momentum to spur progress in the months ahead,” Secretary‑General António Guterres appealed to participants as he closed the Summit — known formally as the high-level political forum on sustainable development. Calling for the formation of a leaders group to deliver clear steps that enable the $500 billion per year needed for sustainable development to start flowing before the end of 2024, he also urged developed countries to finally meet their official development assistance (ODA) target of 0.7 per cent of gross national income.
In addition, Mr. Guterres stressed, among other things, the need for recapitalization and urgent additional rechannelling of $100 billion in unused special drawing rights, as well as reform of the global financial architecture. The twenty-eighth United Nations Framework Convention on Climate Change next month will be the moment to operationalize the new loss and damage fund. “This development to-do list is not just homework. This is hope work,” he emphasized, adding: “We have a rescue plan before us in the Political Declaration. Now is the time to lift the Declaration’s words off the page and invest in development at scale like never before.”
President Ramaphosa calls on wealthy countries to meet financial commitments on climate (SAnews)
President Cyril Ramaphosa has called on partners from wealthy countries to meet the climate financial commitments they made to tackle global warming in developing countries. “We call on our partners from wealthier countries to meet the financial commitments they have made. It is a great concern that these wealthier countries have failed to meet their undertakings to mobilise 100 billion dollars a year for developing economies to take climate action,” the President said. President Ramaphosa was speaking during the 78th Session of the United Nations General Assembly (UNGA78) at the United Nations headquarters in New York on Tuesday.
“Africa is least responsible for the climate damage that has been caused and yet it bears the greatest burden. “Centuries after the end of the slave trade, decades after the end of the colonial exploitation of Africa’s resources, the people of our continent are once again bearing the cost of the industrialisation and development of the wealthy nations of the world,” he said. President Ramaphosa stressed “this is a price that the people of Africa are no longer prepared to pay”.
Themes of the Africa Climate (Finance) Summit: Loans, Taxes, Credits (Gita Briel, tralac)
Tinubu urges UN to help Africa tackle foreign illegal mining, arms trade (The ICIR)
President Bola Tinubu has called on the United Nations to support Africa to curb the influx of illegal arms trade and illicit mining by foreign firms. He made the call on Wednesday, September 20, while addressing the 78th United Nations General Assembly (UNGA). He said illegal arms deals had resulted in inhumane commercial activities, especially in Sub-Saharan Africa, while noting that illegal mining had been a persistent concern, posing significant economic and environmental threats to several African countries, particularly Nigeria.
Speaking on illegal arms, the President said, “Our entire region is locked in a protracted battle against violent extremists. In the turmoil, a dark channel of inhumane commerce has formed. Along the route, everything is for sale. Men, women and children are seen as chattel.
While highlighting the adverse environmental impacts of illegal mining, Tinubu urged world leaders at the 78th UNGA to collaborate and implement stringent measures to curb the practice. He said: “The fourth important aspect of global trust and solidarity is to secure the continent’s mineral-rich areas from pilfering and conflict. Many such areas have become catacombs of misery and exploitation. The Democratic Republic of the Congo has suffered this for decades despite the strong UN presence there. The world economy owes the DRC much but gives her very little.
Africa’s Newest Oil Jackpot Comes With a Corruption Curse (BNN Bloomberg)
The discovery off the shores of Namibia last year by TotalEnergies SE and Shell Plc of an estimated 11 billion barrels of crude has generated understandable excitement in the southern African country. Even if only a small portion of that potential load — valued at about $1 trillion at current prices — is realistically recoverable, it holds the promise of untold riches for this nation of 2.7 million people. But given what oil finds have spawned elsewhere on the continent, it’s drawing a sobering dose of caution.
“Poor management of the oil and gas sector can drive corruption and inequality that in turn will fuel social tensions and threaten political stability,” Tom Alweendo, Namibia’s minister for mines and energy, told an audience last month at the Mercure Hotel in the capital Windhoek. “It is imperative that the custodians of these resources possess the required skills and above all, that they have a high level of integrity.”
Quick links
Trade policy review: Cameroon, Central African Republic, Chad, Gabon and Congo, 2023 (WTO)
Using the creatives to boost intra-African trade (Africa Renewal)
SADC Business Council and Africa’s Conscious Brands & Circular Economy Summit Join Forces to Drive Sustainable Transformation in Southern Africa (Engineering News)
Africa trade report: Not out of the woods yet (Global Trade Review)
Regional value chains key to Africa’s prosperity (New African Magazine)
Africa all set to enter electric vehicle industry (New African Magazine)
Related News
tralac Daily News
US-South Africa hold trade, investment dialogue to deepen bilateral business ties (Engineering News)
The US-South Africa Trade and Investment Executive Dialogue on September 18 built on partnership efforts and saw the launch of a yearly US-South Africa Trade and Investment Forum. The dialogue also explored how this Trade and Investment Forum can benefit growing US-South Africa commercial ties.
The dialogue was hosted by business organisation Business Unity South Africa (Busa) and the US Chamber of Commerce Africa Business Centre (USAfBC) on the sidelines of the United Nations General Assembly. President Cyril Ramaphosa attended the dialogue.
“The opportunity is ripe for US and international investors to be part of South Africa’s growth efforts in a partnership between business and government, to put the country onto a sustainable growth path and optimise its potential,” Busa CEO Cas Coovadia said.
“The memorandum of understanding between Busa and the USAfBC, and the launch of the Trade and Investment Forum, demonstrates how partnership is so key to prioritising and promoting our countries’ shared growth and prosperity,” he said
Africa ready for new investment - President Ramaphosa (SAnews)
I also look forward to welcoming all of the companies present here today to South Africa in November this year during the AGOA Forum… I look forward to building and strengthening business relationships that will accelerate growth, enable commercial success and ensure prosperity for both our countries,” President Ramaphosa said. “The significant presence of US companies operating in South Africa, including Ford, Coca-Cola, Pepsico, Procter & Gamble, Google, Amazon and Walmart, among many others, forms a base for increased investment,” the President said.
Sierra Leone blackouts cast doubt on power ships (African Business)
Sierra Leone has again endured power outages after Turkish company Karpowership suspended its operations in the country for several days over a $40m unpaid bill.
Karpowership is the country’s main source of grid electricity, especially during the dry season when output from hydroelectric power stations is lower. The company first deployed a “power ship” – a floating gas-fired power station – in Sierra Leone in 2018, and added a second vessel the following year. Under its latest five-year contract with the government, signed in 2020, Karpowership supplies up to 65 MW of electricity to the country.
A Karpowership spokesperson told African Business that it “took the unfortunate and difficult decision to briefly suspend operations” in Sierra Leone, following a “protracted period of non-payment”. The company said it restarted operations on 15 September.
Although the exact terms of Sierra Leone’s contract with Karpowership have not been publicly disclosed, the World Bank described the supply of electricity from the company as “costly” in a report last year.
Noting that the purchase price of electricity from Karpowership is indexed to global fuel prices, which significantly increased after the Russian invasion of Ukraine, the World Bank has advised Sierra Leone to invest in solar and hydropower generation as an alternative.
How long will Ghana keep importing rice, water, toothpick, sugar, other products? (GhanaWeb)
The Association of Ghana Industries (AGI) President, Dr Humphrey Ayim-Darke, has questioned when the importation of basic essential commodities such as rice, poultry, toothpick, tomatoes, sugar, bottled water, ceramic tiles, among other products will come to an end. According to him, local manufacturers have the capacity to produce these items to meet at least half of the country’s demand. Mr Ayim-Darke stated that sugar was a basic product that could be produced on a large scale.
“For how long are we going to depend on imported rice, imported poultry, imported vegetable cooking oil, imported bottled water, machetes, toothpicks, tomatoes, ceramic tiles, and I can go on and on just to mention a few,” he lamented. The AGI president added that, “Sugar is a basic product and we believe we have the capacity to produce at best half the requirement of our country at the start.” He noted that developing the local supply chain was the best amidst the rollout of a developmental paradigm scheme by countries to gain a significant share of the world trade.
Tanzania: Enhancing the Efficiency of Revenue Collection and Spending Could Greatly Improve Human Capital Results (World Bank)
Improving the efficiency and effectiveness of fiscal policies could help Tanzania boost revenue collection and increase public expenditure, paving the way for stronger human capital outcomes, inclusive economic growth, and prosperity of the citizens, according to a new World Bank report.
The 19th Tanzania Economic Update titled, Enhancing the Efficiency and Effectiveness of Fiscal Policy in Tanzania, which was published today, shows that Tanzania made some progress in expanding tax collection, with the tax-to-GDP ratio increasing from 10 percent in 2004/05 to 11.8 percent in 2022/23. Meanwhile, public spending has increased from 12.6 percent of GDP to 18.2 percent of GDP, which is still lower than the average for Sub-Saharan Africa, low-income countries, and lower-middle-income countries.
“Tanzania’s economy has been steadily expanding, and the fiscal policies have been successful in reducing income inequality, but there is still room for enhancing these policies to improve public spending in priority programs,” said Nathan Belete, World Bank Country Director.
“While additional resources are needed to close the service delivery gaps in social sectors, there is scope to improve the efficiency of spending within the current systems. If the healthcare system were to operate at its utmost efficiency, Tanzania could enhance critical health outcomes by 11 percent without necessitating additional resources.”
Small scale cross border programme undergoes review (COMESA)
The project steering committee (PSC) of the COMESA, Small Scale Cross-Border Trade Initiative conducted its 4th meeting in Lusaka, Zambia 18 – 20 September 2023 to review progress of the project’s implementation, five years since its inception. The project is funded by the European Union with a total investment of 15 million Euros. It focuses on facilitating the transition of informal sector traders into the formal trade sphere. Among the activities under implementation is the construction of border markets to provide decent trading spaces for the traders. This is in addition to training the traders on trade facilitation to equip them with knowledge on the importance of formalizing their businesses.
Specifically, the Cross-Border Trade Initiative has supported the design and implementation of trade facilitation policies and instruments such as the Simplified Trade Regime and the Green Pass. It has assisted development of tools and systems for reduction in corruption, bribery and harassment at the selected border posts and collection of gender disaggregated data on small scale cross border trade.
“The SSCBTI has focused on these important aspects, to increase the formalization of small-scale cross-border trade flows in the COMESA/tripartite region,” Dr Mohamed Kadah, Assistant Secretary General of COMESA said at the meeting. “Ultimately, this will lead to higher revenue collection for governments at the borders, increased security and higher incomes for small-scale cross-border traders.”
EAC is set to review one network area implementation (Capital Radio)
Regional communications sector regulators have resolved to review the implementation of the One Network Area (ONA) framework on roaming charges to help deal with emerging issues arising from its current form of implementation. The One Network Area promises cheaper calls across the East Africa community with the benefits of making communication easier and cheaper and also to promote business in the region. The development was reached at during a two-day Heads of Communications Regulatory Authorities meeting held in Kigali, Rwanda.
“We have agreed that we are going to go back to the operators and engage them in our countries, and then get to know what their experiences are about this [ONA] framework,” Dr. Zawedde said at the end of the summit held at Four Points Hotel. Dr. Zawedde, however, noted the operators’ feedback will not affect the framework objectives whose original position stands that the receiver of calls during the roaming process should not be charged.
Dr. Aminah Zawedde, the Permanent Secretary Ministry of ICT and National Guidance in Uganda and the chair of the ICT Infrastructure Development Cluster under the Northern Corridor Integration Projects (NCIP)
Academic expert advocates integration for unified African currency (Nairametrics)
Prof. Jonah Onuoha, an academic expert, has emphasized the importance of closer collaboration among the 55 member nations within the African Union (AU) in their pursuit of a unified currency. Onouha, who holds a professorship in International Relations and serves as the Head of the Political Science Department at the University of Nigeria, Nsukka, conveyed this viewpoint during a conversation with the News Agency of Nigeria (NAN) in Abuja on Tuesday.
This call for integration comes in the wake of Brazilian President Luiz Inacio Lula da Silva’s proposal at the BRICS summit in Johannesburg for BRICS member countries to establish a shared currency for facilitating trade and investment among themselves.
Professor Onuoha expounded on the challenge facing the realization of a common currency, considering the economic, political, and geographical disparities within the African continent. He urged the AU to pursue greater integration to avert consequences that might arise from such a currency initiative in Africa. While acknowledging the merit of BRICS’ proposal for a common currency, Prof. Onuoha raised questions about its feasibility.
Post-harvest Losses Remain Dev’t Challenge in Africa, Says AU Commissioner (ENA)
Food loss and waste, particularly post-harvest losses, remain a development challenge in Africa, AU Agriculture, Rural Development, Blue Economy and Sustainable Environment Commissioner Josefa Sacko said. The 4th All Africa Post-harvest Congress and Exhibition that kicked off today aims to address the critical issue of food loss and waste across the African continent.
In her opening remarks, Commissioner Sacko said the congress is taking place at a time when the world is grappling with unprecedented levels of hunger and malnutrition, but more rampant in Africa. She noted that “despite our collective efforts to achieve global food security, food loss and waste particularly post-harvest losses, remain a development challenge in Africa.’’
Post-harvest loss and waste exacerbate food insecurity, reduce income of farmers and communities, waste precious land, water, and energy resources by using resources without generating human benefits and increasing greenhouse effects on the environment, the commissioner elaborated.
Out of the more than 800 million people facing hunger globally, 278 million are in Africa, Commissioner Sacko revealed, adding that whereas 30 percent of the food produced for human consumption is wasted. This calls for urgent and concerted efforts to preserve the harvest for human consumption and save the environment, she underlined.
UNGA updates
Unity, solidarity and action needed now: General Assembly President (UN News)
For the first time since the onset of the COVID-19 pandemic more than three years ago, Heads of State and Government from most of the UN’s 193 Member States are meeting in the iconic General Assembly Hall for their annual week of debates .”This year our imperative is clear: to unite the nations, to be united in conviction of common purpose and in solidarity of joint action,” he said. Mr. Francis stressed that a common approach is needed now, as much as at any point in history, as the international community confronts conflict, climate change, debt, energy and food crises, and poverty and famine.
‘Reform or rupture’ says Guterres, calling for multilateralism to be remade for the 21st century (UN News)
Only determination and compromise can rescue a world that is becoming ”unhinged” Secretary-General António Guterres said on Tuesday, delivering a stark message to leaders gathered in New York: reform the multilateral system and come together for the common good.
“The world has changed. Our institutions have not. We cannot effectively address problems as they are if institutions do not reflect the world as it is. Instead of solving the problems, they risk becoming part of the problem,” the Secretary General said in his opening address to the General Assembly.
Mr. Guterres was delivering his annual report on the work of the Organization ahead of the Assembly’s annual General Debate which brings together world leaders to New York.
Least developed countries are seriously off-track in achieving sustainable development goals, says PM Dahal (The Kathmandu Post)
Prime Minister Pushpa Kamal Dahal on Monday stressed more investment in people, support for structural transformation and achieving rapid and sustainable recovery from the Covid pandemic for achieving the sustainable development goals.
“Halfway to the 2030 deadline, we are seriously off-track in achieving the SDGs,” said Prime Minister Dahal while addressing the 2023 SDG Summit as the Chair of the Group of the Least Developed Countries at the UN Headquarters in New York.
“The SDGs are in dire need of a rescue plan. We all know that twelve of the seventeen goals and at least 18 of the 169 targets refer explicitly to LDCs, recognising the importance of addressing their development challenges.”
The UN Economic Commission for Africa (ECA) and the South Center held a virtual event on September 12 to inform member states of the G77 and China about the critical issues in the ongoing discussions related to the reform of international tax cooperation. A total of 92 delegates from Africa, Asia, and Latin America, attended the briefing.
The purpose of the virtual meeting was to raise awareness of the UN Secretary-General’s report on promoting inclusive and effective international tax cooperation at the United Nations, which was mandated by the UN General Assembly in Resolution 77/244, tabled by Nigeria on behalf of the Group of African States. The report examined existing arrangements, suggested enhancing the UN’s role in tax norm shaping and rule setting, and identified three viable options: a multilateral convention on tax, a framework convention on international tax cooperation, and a framework for international tax cooperation.
Mr. Pedro encouraged participants to engage with the upcoming ECA technical report on critically assessing the UNSG’s three options in order “to give developing countries an equitable chance to participate effectively in international tax cooperation structures by shifting the power away from the current self-select club of developed countries.”
‘Staggering proposition’ reaching SDGs for small island States: A UN Resident Coordinator blog (UN News)
Guterres urges G77 and China to champion multilateralism ‘rooted in equality’ (UN News)
“I count on your Group, who have long been champions of multilateralism, to step up, to use your power, and fight,” he said. “Champion a system rooted in equality; champion a system ready to reverse the injustice and neglect of centuries; and champion a system that delivers for all humanity and not only for the privileged.”
Mr. Guterres noted that although these countries have lifted hundreds of millions out of poverty in recent decades, they are now facing myriad crises, with rising poverty and hunger, rocketing prices, soaring debt, and surging climate disasters. “Global systems and frameworks have let you down,” he told leaders gathered in the Cuban capital. “The conclusion is clear: the world is failing developing countries.” He said change will require action at the national level to ensure good governance, mobilise resources and prioritise sustainable development. At the same time, this national ownership will have to be respected.
How the UN SDG Summit aims to transform the world (UN News)
SA adds its voice to sustainable development dialogue (SAnews)
On day two of the UN SDG Summit and just ahead of the General Debate, the Director General of the Food and Agriculture Organization of the United Nations (FAO), QU Dongyu, held a Ministerial dialogue at UN Headquarters on the opportunities of scaling up action and investment for agrifood systems transformation as a solution to the biodiversity and climate crises.
Speaking at the event, which was co-hosted with Canada, Qu reminded Ministers of the importance of investing in the environment as biodiversity provides the genetic resources that underpin agrifood systems; a wide range of species; and healthy ecosystems to provide water, regulate climate and strengthen resilience against variability and disasters.
Currently, the impacts of the climate crisis affect agriculture and productivity, and therefore the availability, accessibility and affordability of food. At the same time, the way the world currently produces and consumes food contributes to greenhouse gas emissions, land use change and pollution that further negatively affect climate change and biodiversity loss.
G20 New Delhi Leaders’ Declaration commits resilience in a riskier planet (ESCAP)
The pdf New Delhi Leaders’ Declaration (1.41 MB) was unanimously adopted during the G20 Leader’s Summit on 9-10 September 2023. It has many takeaways covering a variety of pressing global challenges, including climate change, economic stability, digital economy, public health and the implementation of the 2030 Agenda for Sustainable Development.
Notably, the Declaration underscores the criticality of disaster risk reduction (DRR) and building disaster resilience in the riskier times of an increasingly warming planet. It reflects strong commitments from the leaders of the world’s major economies to accelerating full implementation of the Sendai Framework for Disaster Risk Reduction.
Countries Can Tap Tax Potential to Finance Development Goals (IMF)
Emerging markets and developing economies need $3 trillion annually through 2030 to finance their development goals and the climate transition. That amounts to about 7 percent of these countries’ combined 2022 gross domestic product and poses a formidable challenge, particularly for low-income countries.
New IMF research finds that many countries have the potential to increase their tax-to-GDP ratios—enabling them to provide critical government services—by as much as 9 percentage points through better tax design and stronger public institutions. Making use of this potential would also contribute to financial development and private sector entrepreneurship. Easier financing, in turn, together with efficient and well-targeted spending, including to strengthen social safety nets, would go a long way toward delivering sustainable development.
Fisheries subsidies chair introduces draft text, seeks members’ views at fifth “Fish Week” (WTO)
The chair of the fisheries subsidies negotiations, Ambassador Einar Gunnarsson of Iceland, introduced a draft text on curbing subsidies contributing to overcapacity and overfishing at the opening of the fifth “Fish Week” on 18 September, drawing from previous negotiating texts and proposals. The chair explained that his intention is for the text to serve as a common starting point for members as they seek to deepen discussions and complete substantive work on the second wave of fisheries subsidies negotiations by December.
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Agri SA warns govt’s interference amid food price dilemma could have detrimental long-term effects (Engineering News)
Industry body Agri SA has warned that government interference in the food market could lead to empty supermarket shelves. The organisation intends to write to the Agriculture, Land Reform and Rural Development Minister Thoko Didiza to request engagement with stakeholders in the value chain on the implications of government’s stated intention of tackling food pricing. This follows an announcement by Minister in the Presidency Khumbudzo Ntshavheni that Carbinet has directed the Economic Cluster to put in place an action plan on food prices, food security and access to food.
Food price inflation has remained high despite various input costs having decreased, mostly owing to persistently high fuel costs and loadshedding disruptions. Agri SA says this highlights the highly complex dynamics of the food system and how, if government wants to substantively address the situation, it must begin by fixing functions within its remit – including fixing road and port infrastructure, reducing rural crime and ending loadshedding.
Agri SA is focusing its attention on food security by making it the theme of its yearly congress, which will be held on October 13 and 14. The event will discuss factors impacting food production, food accessibility, affordability and safety.
Zambia, China Presidents commit to enhancing trade cooperation as they meet in Beijing (Africanews)
Zambia’s president Hakainde Hichilema was hosted by his Chinese counter part president Xi Jinping on Friday (Sep. 15). The leaders held talks at the Great Hall Of The People in Beijing. According to a joint statement, the leaders “had in-depth exchange of views on China-Zambia relations, China-Africa relations and international and regional issues of mutual interest and reached extensive and important consensus.”
The two sides agreed to establish an investment cooperation working group mechanism to promote investment cooperation in areas including digital economy and green development. They said they will strengthen the development of economic cooperation zones, support the upgrading of those economic cooperation zones in Zambia into industrial chain and supply chain cooperation demonstration zones.
Kenya seeks to lease key ports to private firms (The East African)
Kenya has revived the process of leasing its key ports to bolster competitiveness of its maritime sector in order to generate at least $10 billion annually by 2030.Kenya has placed bids to lease sections of Mombasa and Lamu ports to private operators, with landlord-type port management system expected to take place in what is aimed at making the Northern Corridor competitive.
President William Ruto’s administration is seeking private investors to take over the operations and management of five critical ports facilities – Mombasa and Lamu ports, Dongo Kundu Special Economic Zones, Kisumu port, and Shimoni fisheries port through a public-private partnership.
President Ruto said the move will turn the port facilities, which have been confronted with the challenge of congestion and higher dwell times for cargo, into world class ports.
57 Checkpoints Along Badagry-Seme Expressway Frustrating Intra-African Trade (Leadership News)
The Economic Community of West African States (ECOWAS) Commission, over the weekend, said over 57 checkpoints on the Badagry-Seme expressway of the Lagos- Abidjan corridor are frustrating intra-African trade. The executive secretary of the Nigerian Shippers’ Council (NSC), Hon. Emmanuel Jime, however, noted that more than 400 trade obstacles have been reported along the trade corridor.
Speaking at the sensitisation workshop in collaboration with ECOWAS Commission on awareness creation for professional organisations and stakeholders on elimination of Non-tariff barriers using ECOWAS Trade Obstacle Alert Mechanism (TOAM), organised by the Nigerian Shippers’ Council (NSC), over the weekend, the principal trade advisor, ECOWAS Commission, Justin Bayili, said delays occasioned by the checkpoints was militating against trade facilitation. Bayili stated that there is a need to create good conditions for trade facilitation in the region.
Jime observed that the trade barriers, which were so many, comprised lengthy clearing terms, transit checkpoints with unwarranted delays, harassment, exorbitant illegal fees, and demands for bribes had far-reaching consequences. The executive secretary, however, explained that more than 49 percent of them had been effectively addressed by national focal point representatives, supported by advisory services from the International Trade Centre (ITC).
Egypt to host the third edition of Intra-African Trade Fair (EgyptToday)
Minister of Industry and Trade, Ahmed Samir, recently met with a delegation from the African Export-Import Bank (Afreximbank) led by Kanayo Awani, Vice President of the Bank. The purpose of the meeting was to finalize preparations for the highly anticipated third edition of the Intra-African Trade Fair, which will be hosted by Egypt.
During the meeting, Minister Samir and the delegation discussed various details regarding the exhibition, including arrangements for the opening ceremony and the signing of hosting agreements. The minister emphasized the exhibition’s objective of boosting intra-African trade and highlighting the vast investment opportunities across the continent.
As Egypt takes on the role of hosting the third edition of the Intra-African Trade Fair, it solidifies its position as a key player in promoting trade and investment within Africa.
ECOSOCC wraps up national dialogue series on the African Union’s Free Movement Protocol (AU)
The African Union Economic, Social and Cultural Council (ECOSOCC) convened the third and final multi-stakeholder national dialogue series of the year on the Free Movement Protocol (FMP), from 12-13 September 2023.
Increased mass migration and displacement within the African continent has spurred several policy frameworks to address and manage it. The African Union in particular has established two key policy frameworks to address, manage, and promote migration and mobility within the continent: the FMP and the Migration Policy Framework for Africa (MPFA).
The FMP aims to curb and eventually eliminate barriers to regional border migration (to work, visit, trade, live, etc.) within the continent. Eliminating these barriers translates to economic growth on the continent as well as improved migration procedures for African citizens.
Unfortunately, despite the existence of migration policy frameworks, policy uptake among AU member states and their popularization within African civil society remains low and has not achieved the desired impact. ECOSOCC has taken up the mantle to popularise the frameworks.
Liquid introduces two new routes to drive intra-African digital trade (The Star)
Liquid Intelligent Technologies (Liquid), a pan-African tech group of Cassava Technologies, has unveiled two new fully redundant terrestrial routes, Kenya to Ethiopia and Zambia to Malawi. This comes four months after the company launched its first terrestrial fibre optic cable that connects Mombasa to Johannesburg. The two routes are expected to provide greater efficiency and reliable regional connectivity, both key to the economic development of these countries.
According to a presser by Liquid, the fibre link which spans over 1000km offers businesses in Ethiopia access to data centres and cloud in Nairobi ensuring that data doesn’t leave the continent. “This link is further supported by the cross-border 711km link between Zambia and Malawi, providing a direct and reliable connection to content caches and data centres in South Africa,” the statement read in part.
Cassava Technologies president and group CEO Hardy Pemhiwa said all initiatives undertaken work towards realising the company’s vision of a digitally connected future that leaves no African behind. “The completion of these fibre links is yet another milestone achieved by Liquid as it continues to lay the foundations of economic growth through increased access to high-speed connectivity,” he said.
Africa Emerging As Global Gas Supply Source (Leadership News)
The managing director/CEO, Nigeria LNG Limited (NLNG), Dr. Philip Mshelbila, has said Africa is emerging as a critical global gas supply source, with production expected to double, solidifying the continent’s role in global energy security. He also said that natural gas should and will play a significant role in Africa’s energy mix to meet the demands arising from rapid population growth and economic expansion, as well as the need for affordable access to clean energy and supply security for industrialisation.
Dr. Mshelbila made these remarks during a strategic session at the recently concluded 2023 Gastech Exhibition and Conference in Singapore, where he discussed Africa’s role in increasing supply resilience in the energy transition context. He stated that African gas could enhance global energy security by increasing gas production, ensuring a steady supply source despite rising domestic consumption, and the growth of floating LNG, facilitating the rapid delivery of gas products to the market.
He stressed the necessity of adopting a multi-dimensional approach to the energy transition, considering Africa’s specific context and evolving needs. Dr. Mshelbila pointed out that the continent is already capitalising on opportunities in the energy transition, utilising gas as an evolutionary energy source that offers a cleaner alternative to traditional biomass and coal.
A groundbreaking report by a group of independent experts released today by the United Nations outlines steps governments should take to maximize the impact of policies and actions by tackling the climate and sustainable development crises at the same time, creating synergies.
“Maximizing synergies between climate action and the SDGs has never been more critical,” said Li Junhua, UN Under-Secretary-General for Economic and Social Affairs. “We must get the SDGs on track and keep the goal of 1.5 degrees alive,” he said, also stressing that an integrated approach that seeks to strengthen synergies between these two global agendas is critical to that end.”
“Achieving the Sustainable Development Goals and stabilizing our climate to build resilient societies are two sides of the same endeavour,” said Simon Stiell, UNFCCC Executive Secretary. “I am confident that the work of the Expert Group will spur additional efforts that can result in win-win outcomes for both climate action and the SDG agenda and transition us towards a just, equitable, and sustainable world.”
The report preface also cites UN Secretary-General António Guterres’ rallying cry that “climate action is the 21st century’s greatest opportunity to drive forward all the Sustainable Development Goals.”
UN General Assembly adopts declaration to accelerate SDGs (UN News)
Mr. Guterres was speaking at the opening of a high-level forum at UN Headquarters where world leaders adopted a political declaration to accelerate action to achieve the 17 goals, which aim to drive economic prosperity and well-being for all people while protecting the environment. “The SDGs aren’t just a list of goals. They carry the hopes, dreams, rights and expectations of people everywhere,” he said.
World leaders adopted the SDGs in 2015, promising to leave no one behind. The goals include ending extreme poverty and hunger, ensuring access to clean water and sanitation, as well as green energy, and providing quality universal education and lifelong learning opportunities.
“With concerted, ambitious action, it is still possible that, by 2030, we could lift 124 million additional people out of poverty and ensure that some 113 million fewer people are malnourished,” he said.
Each of the 17 goals contains targets, with 169 overall, but the Secretary-General warned that currently only 15 per cent are on track, while many are going in reverse. The political declaration “can be a game-changer in accelerating SDG progress,” he said. It includes a commitment to financing for developing countries and clear support for his proposal for an SDG Stimulus of at least $500 billion annually, as well as an effective debt-relief mechanism. It further calls for changing the business model of multilateral development banks to offer private finance at more affordable rates for developing countries, and endorses reform of the international finance architecture which he has labelled “outdated, dysfunctional and unfair.”
General Assembly: High-Level Political Forum on Sustainable Development - Summary (United Nations)
UNCTAD counts the costs of achieving sustainable development goals (UNCTAD)
With the world off track to achieve the Sustainable Development Goals (SDGs), decision makers urgently need detailed cost estimates to guide their investment and spending choices.
Over the last six months, UNCTAD has crunched the numbers on nearly 50 SDG indicators across 90 countries, including 48 developing economies, covering three quarters of the global population. Published on 18 September as global leaders meet in New York for the UN’s SDG Summit, the timely data underscores the pressing need for swift and targeted action.
The analysis reveals, for example, that the 48 developing economies face a $337 billion annual spending gap for indicators related to climate change, biodiversity loss and pollution.
The analysis reveals countries can make the most of their spending by capitalizing on synergies among the SDGs. For example, investments in education also advance gender equality, reduce poverty and stimulate innovation for progress across all SDGs. “This has big implications for economies with limited resources,” Ms. Peltola said. “They don’t have to stretch every dollar to cover every goal.”
The analysis focuses on six transformative “pathways” for sustainable development: social protection and decent jobs, education transformation, food systems, climate change, biodiversity loss and pollution, energy transition and inclusive digitalization.
‘We all need to step up’ to rescue the SDG’s and fight for a better future: UN chief (UNECA)
Africa Open for Business Summit kicks off in USA (The Standard)
The annual Africa Open for Business Summit kicks off in New York this week with a focus towards women leadership, in Africa and the diaspora. The summit is part of the global activities taking place around the high-level week of the 78th session of the UN General Assembly (UNGA) that starts today.
Its focus is also geared towards sustainable corporate practices, expanding job opportunities in Africa and its diaspora, and harnessing diverse perspectives to shape the future of business, trade, and development across Africa. Speaking ahead of the summit, Dr Djibril Diallo, the President and CEO of African Renaissance and Diaspora Network (ARDN) told The Standard that this year’s event will redefine the future of business, ignite climate action, and empower women.
“Our Summit is at the forefront of one of the most critical challenges of our time – Climate Justice. The remarkable individuals at this summit aren’t just talking; they’re actively driving change and proving that the fight against climate change knows no boundaries,” said Diallo, whose organisation’s mission is to accelerate the attainment of the African renaissance by advocating for and supporting United Nations programmes and priorities.
G77+China summit in Cuba calls for new global order (The Japan Times)
The G77+China, a group of developing and emerging countries representing 80% of the world’s population, kicked off a summit in Cuba on Friday with a call to “change the rules of the game” of the global order. The meeting comes at a time of growing frustration with the Western-led world order amid widening differences over the Russian war in Ukraine, the fight against climate change, and the global economic system.
Cuban President Miguel Diaz-Canel said that developing countries were the main victims of a “multidimensional crisis” in the world today, from “abusive unequal trade” to global warming. United Nations chief Antonio Guterres is joining some 30 heads of state and government from Africa, Asia and Latin America at the two-day summit in Havana.
Trade Data Shows Ukraine War Consolidated Political Blocs [Infographic] (Forbes)
Taking January 2022 as a starting point for an index calculation, the World Trade Report 2023 reveals that global trade between geopolitical blocs, for example between Western bloc countries in the Americas and Europe and Eastern bloc countries like China, Russia and Saudi Arabia, has decreased by more than 10% between the start and the end of last year alone. Another report by the WTO from earlier this year sees diversification patterns emerging after Russia’s invasion of Ukraine.
Leapfrogging to prosperity through Science, Technology and Innovation (UNEP)
Many developing nations are reeling under climate change. Struggling with nature and biodiversity loss – including desertification. Choking with pollution and waste. These challenges drive other crises. Human health. Cost of living. Poverty. Hunger. Conflict. And there is, of course, massive injustice inherent in the triple crisis, particularly climate change. So, it is understandable that trust is low. But every nation of the world must now work, together, towards a low-carbon, nature-positive, pollution-free future. It is time for unity, not division. There is too much at stake, for all of humanity.
That is not to say that every country should follow the same path.
Developing nations have a responsibility, primarily to themselves and their citizens, to take an entirely different path to prosperity. To reap the benefits of development that prioritizes a clean, healthy and sustainable environment. As President Ruto of Kenya told the Africa Climate Summit, the developing world needs “an audacious leapfrogging”. Science, technology and innovation, or STI, gives developing nations the chance to not just leapfrog, but to bound energetically into a future of prosperity, resilience and equity. STI has proven its worth many times in the environmental sphere. In dealing with persistent organic pollutants. In solar tech and electric vehicles. In pivoting the cooling industry to protect the ozone layer and climate.
Trade and climate change: A Q&A with UNCTAD deputy Pedro Manuel Moreno (UNCTAD)
Will a new global fund deliver for nature? (China Dialogue)
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SA eyes growing trade, exporting coal to Vietnam (SAnews)
South Africa is looking forward to broadening existing bilateral trade with Vietnam, says Deputy President Paul Mashatile. ”As South Africa we’d like to increase our exports to Vietnam because we believe there is big potential for growth,” said the Deputy President on Friday. He was speaking at the President Guesthouse in Pretoria where he was hosting his Vietnamese counterpart, Vice President Vo Thi Anh Xuan on an Official Visit to South Africa.
“Vietnam is also interested in acquiring coal from South Africa and we’ll be able to provide that.” While bilateral relations have been characterised by “good progress”, the country’s second in charge is of the view that there is room for improvement in some areas. ”There will be areas, Vice President, where we will continue to ask for your support. But we want in particular to work with Vietnam on a number of peace initiatives that we’re engaged with.
Kenya scraps Shs11m deposit fee on Uganda-bound containers (Monitor)
The Kenyan government has announced that it is to remove deposit fees on containers carrying Ugandan goods at Mombasa port. Kenya Ports Authority has been charging $3,000 (about Shs11m) per container, which the Ugandan business community has always opposed, saying it increases import costs. The decision to scrap the fees was reached at in meeting between Ugandan and Kenyan authorities at Mombasa Port yesterday.
In a statement issued yesterday, Capt William K. Ruto Afni, the managing director of Kenya Ports Authority, said the scrapping of the fees will ease trade between the two countries. “Capt Afni said Uganda remains a key trade partner for Kenya as its exports and imports passing through Mombasa are increasing. Almost 50 percent of the costs incurred by most Ugandan traders go into handling port and transport expenses. If these costs were mitigated price levels would fall significantly,” the statement reads in part. According to the existing rules, importers face a $40 daily charge 15 days from the time their goods reach the country, besides the $3,000 deposit paid to the shipping line. If the trader fails to return the container on time, he or she forfeits the deposited amount.
Tanzania’s tourism industry bounces back with 37.2% increase in tourist arrivals (Business Insider Africa)
The recent data from the Bank of Tanzania reveals that tourism has staged an impressive recovery, contributing $2.99 billion to foreign exchange earnings in July 2023, compared to $1.95 billion in July 2022.
According to the Bank of Tanzania, this represents a 33% surge in service receipts, reaching $5.49 billion in July 2023, up from $4.12 billion in July 2022. The bank also noted that this resurgence in tourism and increased earnings from gold have played a pivotal role in boosting Tanzania’s service earnings to over $5 billion for the first time in its history.
In 2019, Tanzania’s tourism sector generated approximately $2.52 billion, but by December 2020, its earnings had dropped significantly to just $1 billion. Gold emerged as the country’s primary foreign exchange earner during this period, generating $2.958 billion in December 2020.
Rwanda signs nuclear power generation deal (The East African)
The Rwandan government has signed a nuclear energy generation deal with Canadian-German nuclear company, Dual Fluid, as the country takes a big step in exploring nuclear in expanding its energy sources needed to power its development.
The first outcome of the deal signed this week by the Rwanda Atomic Energy Board (Raeb), will be the construction of a demonstration Dual Fluid nuclear reactor in the country, to be operational by 2026.What will follow is testing of the Dual Fluid technology expected to be completed by 2028.The nuclear energy project is expected to contribute up to 300 MW to the grid, according to Raeb CEO Ndahayo Fidele.
“This deal is intended to expand Rwanda’s energy generation mix, Dual Fluid has patents to this technology, it will provide laboratory equipment and set it up, train our people in this technology and conduct tests.” “Next will be the construction of a plant to generate nuclear energy to be added to the grid,” said Ndahayo.
SA to host Agoa summit after threats by US lawmakers to pull plug (IOL)
Minister in the Presidency Khumbudzo Ntshavheni has confirmed that South Africa will host the African Growth and Opportunity Act (Agoa) summit in November. This is despite earlier threats that the summit could be moved from South Africa to another country after calls by US lawmakers to move the summit away from South Africa because of Pretoria’s alleged involvement in the supply of weapons to Russia.
Finance Minister Enoch Godongwana, Trade and Industry Minister Ebrahim Patel and Ntshavheni met with senior officials in the US a few months ago to try and get the Agoa deal extended. They even met with Coons, and Ramaphosa’s national security adviser Sydney Mufamadi met his US counterpart Jake Sullivan a few months ago to discuss this matter.
US Trade Representative Katherine Tai was in constant contact with Patel over the renewal of the Agoa deal, which is due to expire in 2025. Patel wanted Agoa to be renewed by 2024. Ntshavheni confirmed that the Agoa summit will go ahead as planned in November in South Africa.
President William Ruto joins US-Kenya business roadshow in San Francisco (ZAWYA)
Kenya’s President William Ruto will address leading US technology companies and investors on Friday at the US-Kenya Business Roadshow in San Francisco organised by the American government’s Prosper Africa initiative. The roadshow - also co-organised by the US Embassy in Nairobi - highlights the business and investment potential in Kenya’s booming tech sector, a statement from the US Embassy in Kenya said. The event is part of a three-city US-Kenya Roadshow tour showcasing opportunities for companies exploring doing business and investing in Kenya, it said.
Kenya is one of the United States’ most important African trading partners, and it has benefited greatly from the Africa Growth and Opportunity Act (AGOA), a preferential trade policy that will expire in 2025. The East African country is hoping to sign a free trade agreement (FTA) deal with the US. The two countries began discussions over the deal in 2020, under then-President Donald Trump and then-President Uhuru Kenyatta of Kenya. However, the administration of President Joe Biden has not pursued the FTA talks further, instead launched the US-Kenya Strategic Trade and Investment Partnership (STIP) in July 2022.
The roadshow started in New York City with a focus on the apparel sector, then traveled to Chicago on September 13 to highlight agri-business, and will conclude this week in San Francisco. Each stop featured a mix of panel discussions, business matchmaking, and networking.
Nigerian businesses poised to expand their footprints across the continent and lead intra-African trade growth (Afreximbank)
“Independence is only the prelude to a new and more involved struggle for the right to conduct our own economic and social affairs” – Kwame Nkrumah, Pan-Africanist and father of African independence.
“This statement made over 60 years ago continues to ring true today. It underlines the position that despite attaining political independence, Africa’s emancipation was far from complete and the quest for economic independence still lies ahead. This quest continues and makes it imperative for us to work collectively to find African solutions to the challenges facing our continent,” said Mrs. Kanayo Awani, Executive Vice President, Intra-African Trade Bank, Afreximbank, when making a clarion call for Nigeria to lead the charge of African trade in her opening remarks at the High-Level Business Roadshow in Lagos, Nigeria.
Mrs. Awani noted that it also encourages the Nigerian Public and Private Sector to actively participate, take advantage of these opportunities to grow and expand their business, drive intra-African trade, and support economic integration under the AfCFTA. This trade fair is meant to bridge the gap on trade and market information.
“Afreximbank remains committed to contributing to Nigeria’s economic growth as evident in several flagship projects underway,” she reiterated. She emphasised that “Afreximbank intends to double its financing of intra-African trade to US$40 billion on a revolving basis by 2026, up from US$ 20 billion in 2021.”
The African Climate Summit (The Independent Uganda)
As Africa embarks on its industrialisation drive, supported by the African Continental Free Trade Area (AfCFTA), the realities of climate change are becoming more visible and acutely felt across the world. The continent faces an industrialisation journey unlike any other – it must lift millions out of poverty whilst adapting to climate change. The pathways to industrialisation will also be influenced by the transmitted effects of policies enacted elsewhere to mitigate climate change.
As highlighted by the African Climate Summit (ACS) in Nairobi, there are major new economic opportunities for Africa in view of the green transition: it supplies many of the critical raw materials inputs into required technologies. On the other hand, there is a need for greater understanding of the transmitted effects coming from mitigation policies in end markets, which, when combined, may induce a ‘green squeeze’ unless African producers and exporters have greater capacity to adapt to changing norms and standards.
With regard to entering new value chains, demand for critical raw material inputs into new technologies is rapidly increasing. However, the extent to which the continent can benefit economically from this situation depends on how much of the value addition in creating the final green technology products physically takes place on the continent.
ECOWAS consultative meeting on regional infrastructure financing (ECOWAS)
In a quest to address the infrastructure deficit faced by the ECOWAS region, the Authority of ECOWAS Heads of State during its 60th Summit held in December 2021 approved the ECOWAS Regional Infrastructure Master Plan. This masterplan contains 201 integrated regional projects (146 regional investment projects and 55 soft projects) covering the Energy, ICT, Transport and Water Sectors and is estimated at $131 billion.
Mindful of the huge capital outlay required for the implementation of the Masterplan, there is clearly an urgent need for a concerted regional effort to confront this challenge of sustainable infrastructure financing. To this end, the PPDU convened a Consultative Meeting on Regional Infrastructure Financing on 7-8 September 2023 in Accra, Ghana. The meeting brought together the key actors in infrastructure resource mobilization from ECOWAS Member States and Development Partners in order to discuss on modalities of facilitating access to infrastructure finance. The meeting also enabled Development Partners to apprise the key actors on innovative financing instruments such as Green Financing.
The meeting discussed on a number of thematic issues on regional infrastructure finance and made a number of recommendations. Key among these is the need to integrate climate change and sustainable development into infrastructure projects in order to benefit from green financing opportunities. Furthermore, there was a strong recommendation for Development Banks and Regional Partners to leverage their interventions in the region on the ECOWAS Regional Infrastructure Masterplan.
Rwanda to become hub for AI research in Africa (The New Times)
As Artificial Intelligence (AI) continues to take the world by storm, Rwanda is set to host a global technology company that will conduct AI research and solutions for Africa. The London-based company, InstaDeep, will open its office in Kigali, said CEO Karim Beguir during an annual meeting of the African machine learning and artificial intelligence community with the mission to strengthen African AI, on September 8.
Rwanda is recognised as one of the first African nations to introduce a national AI policy. This policy focuses on six key areas: AI literacy, infrastructure, data strategy, AI adoption in both the public and private sectors and ethical implementation. “Rwanda is at the forefront of policy, with the recent example of hosting a top AI global conference—ICLR—for the first time in Africa. Having an office in Kigali makes it possible for us to give many more opportunities for African AI talent from all corners of the continent.”
Currently, InstaDeep is present in Tunis, London, Lagos, Dubai, Berlin, Cape Town, Paris, Boston, and San Francisco.
Africa’s payment revolution takes centre stage at Sibos 2023 (Trade Finance Global)
Over the past year, Africa has made notable strides in digitizing its payments landscape, culminating in South Africa’s recent entry into the global low-cost real-time payments network. “From the launch of PayShap and the rapid payments platform in South Africa’s modernization drive to the progress made by the Southern African Development Community’s Transactions Cleared on an Immediate Basis (TCIB) Payment Scheme, Africa continues its push for financial inclusion,” said Roshan Moonsamy, Interim CEO at BankservAfrica.
PayShap, a revolutionary digital payment platform based in South Africa, has played a pivotal role in reshaping the country’s financial landscape. With a steadfast commitment to modernization and accessibility, PayShap has rapidly gained ground, nearing an impressive milestone of one million transactions. This innovative platform has simplified financial transactions, offering a user-friendly experience that empowers both individuals and businesses to manage their finances seamlessly. Its real-time capabilities ensure swift and secure payments, marking a significant contribution to South Africa’s modernization journey and the drive for financial inclusivity.
The Southern African Development Community’s (SADC) Transactions Cleared on an Immediate Basis (TCIB) Payment Scheme represents a remarkable leap towards enhancing financial cooperation within the SADC region. This initiative is focused on clearing and settling transactions immediately, streamlining cross-border payments and curtailing associated costs.
BankservAfrica, in collaboration with Rand Merchant Bank, is set to host the African Pavilion at Sibos, scheduled between September 18th and 21st in Toronto, Canada.
Samia wants EAC matters prioritised (Tanzania Daily News)
Samia Suluhu Hassan on Thursday said that the recent changes in the Ministry of Foreign Affairs and East African Cooperation are aimed at enhancing efficiency in dealing with various matters related to the EAC integration process. The Head of State revealed that in Dar es Salaam after swearing in 24 judges of the High Court and Court of Appeal and other government officials.
The President said that she was previously advised to form a new Ministry of East African Cooperation so that issues relating to the regional bloc could be given priority but she could not do so because the decision would place more financial burden to the government. “I have decided to appoint the two executives who are experienced in international affairs. Thus they are in better position to deal with EAC issues.”
“The aim is to address the shortcomings that were noted when dealing with issues of East African Cooperation, especially on integration and participation in the debate of having single currency, as more countries want to be part of the regional bloc,” said President Samia.
The African Development Bank and the Alliance for Financial Inclusion (AFI) have renewed a project partnership to support policy and regulatory reforms increasing access to financing for Africa’s women-led small and medium-sized enterprises, for a further four years.
The Bank’s Gender Equality Trust Fund will contribute over $4 million in grant funding to the project. The announcement came on 13 September during the 2023 AFI Global Policy Forum in Manila. AFI is a global policy leadership alliance owned and led by central banks and financial regulatory institutions with the common purpose of advancing financial inclusion around the world.
Under the new agreement, the African Development Bank and AFI will carry out new research in 13 additional African countries to identify opportunities for reform in policies and regulations that would have the greatest impact in addressing obstacles to accessing finance. The partners will work with policymakers, financial regulators, and other key stakeholders across the 20 target countries to design and implement these reforms.
The Bank’s flagship Affirmative Finance Action for Women in Africa (AFAWA) initiative will implement the project in conjunction with AFI. AFAWA works to close the finance gap for African women entrepreneurs.
Validation Workshop on the AU Commission Gender & Youth Mainstreaming Framework (AU)
Women and Youth form the biggest part of Africa’s population at about 75%. Yet, they face significant socio-economic barriers that constrain their ability to contribute meaningfully to their communities, countries, and continental development and jeopardizes their opportunity to fully unleash their potential to ensure the realization of an Africa that is people driven as per Agenda 2063’s Aspiration 6.
From 14-15 September 2023, a validation workshop on the development of the AUC Gender & Youth Mainstreaming Framework in aims to compile the active efforts being deployed and the policies being implemented separately under the respective thematic areas in regard to women and youth in a common, inclusive and comprehensive document that reflects both demographics, needs, constraints and characteristics.
Addressing the workshop, Ms. Prudence Ngwenya, Director, WGYD underscored that gender and youth mainstreaming represents a pivotal paradigm shift in our approach to societal progress and development. “At its core, this multifaceted concept recognizes that achieving sustainable and inclusive growth requires deliberate and comprehensive integration of gender and youth considerations into all aspects of policies, programs, and initiatives.”
She further adder that “Gender mainstreaming involves systematically analyzing and addressing the different needs, roles, and opportunities of individuals based on their gender identity, with the aim of rectifying existing disparities and fostering gender equity. Simultaneously, youth mainstreaming acknowledges the unique potential, perspectives, and challenges that young people bring to the table. It seeks to empower youth by actively involving them in decision-making processes and creating opportunities for their meaningful participation in various spheres of society. Together, these approaches drive social and economic progress by promoting diversity, equity, and inclusivity, ultimately shaping a future where all individuals, regardless of their age or gender, can fully contribute to and benefit from societal advancements,” said Ms. Prudence Ngwenya.
A meeting of African ministers in charge of transport and energy held from12-15 September on the theme, “Accelerating Infrastructure to Deliver on the AU Agenda 2063 Aspirations” has concluded with an action-oriented Zanzibar Declaration aimed at spurring the Continent’s transport and energy sectors. Convened under the auspices of the African Union’s Fourth Ordinary Specialized Technical Committee on Transport, Transcontinental and Interregional Infrastructure and Energy
Speaking at the Ministerial segment of the meeting, Robert Lisinge, Acting Director of the Private Sector Development and Finance Division at the ECA called on member states to address the barriers limiting private sector investments in infrastructure and energy, urging them to facilitate investments by creating conducive policy and regulatory environments. “The requirements of continental infrastructure development and the aspirations of Agenda 2063 and Agenda 2030 far exceed current levels of public sector investment,” he said.
He stressed that over the next ten years, there is a need for concerted action to address energy transition and security issues, in order to open up opportunities for the transformation of the continent. He cited ECA’s analytical work on the AfCFTA, which demonstrates there are investment opportunities for infrastructure development in the area of transport and energy and added that digitization and artificial intelligence offer great opportunities for the efficient operation of infrastructure.
According to the Zanzibar Declaration, the Ministers adopted the AUC and ECA continental regulatory framework for crowding-in private sector investment in Africa’s electricity markets. This framework will be used as an instrument for fast-tracking private sector investment participation in Africa’s electricity markets. The Declaration also called on ECA and partners to develop a continental energy security policy framework as called for by the 41st Ordinary Session of the Executive Council and an Energy Security Index and Dashboard to track advancements in achieving Africa’s energy security.
Experts in infrastructure and energy sectors push to accelerate development in Africa (AU)
Shipping giant Maersk is seeing tentative signs of a bounce back in global trade (CNBC)
There are tentative signs of a bounce back in global trade, according to the CEO of shipping titan Maersk. “Barring any negative surprises, we would hope for a slow pickup as we get into 2024, a pickup that will not be a boom like what we have known in the past few years, but certainly ... a demand that is a bit more in line with what we see in terms of consumption, and not so much an inventory correction,” Vincent Clerc told CNBC’s Silvia Amaro this week. Consumers in the U.S. and Europe have been key drivers in this demand uptick, Clerc said, and those markets have continued to “surprise on the upside.”
In 2022, the shipping firm warned of weak demand as warehouses filled up with unwanted goods, with consumer confidence stuttering and supply chains congested. The upcoming pickup would be fueled by consumption, he said, rather than the “inventory correction” which has featured heavily during 2023. Emerging markets are proving resilient, despite the difficult economic climate, Clerc said, particularly in the cases of India, Latin America and Africa.
But the road to bolstering global trade and growth isn’t necessarily a smooth one, as highlighted by IMF Managing Director Kristalina Georgieva in a recent interview with CNBC. “What we see today is very troubling,” Georgieva told CNBC’s Martin Soong on Sept. 10 on the sidelines of the Group of 20 nations leaders’ summit in New Delhi. “There is fragmentation in our world. For the first time global trade grows slower than the global economy, 2% trade, 3% global growth. If we want trade to become, again, an engine of growth, then we have to create corridors and opportunities,” she said, referencing a planned rail-to-sea economic corridor linking India with Middle Eastern and European countries.
Trade facilitation: Countries make steady but uneven progress (UNCTAD)
Despite geopolitical tensions and supply chain disruptions, countries continue to improve the trading environment by simplifying and digitalizing trade processes. According to the UN’s fifth global survey on digital and sustainable trade facilitation, an average of 68.6% -- up by 6% since 2021 – of the general and digital trade facilitation measures outlined in the landmark Trade Facilitation Agreement of the World Trade Organization (WTO) have been implemented by countries worldwide.
The survey analysed trade facilitation progress across 161 countries worldwide, as outlined in the “Digital and sustainable trade facilitation: Global report 2023” launched on 15 September. The survey shows that developed economies have implemented the most trade facilitation measures, leading the global pack with an overall rate of 85.3%.In comparison, 54 out of 90, or 60% of developing countries with a GDP per capita below $10,000 have achieved implementation rates of over 50%.
The average implementation rates for least developed countries, landlocked developing countries and small island developing states are similar, ranging between 53% and 61% -- significantly below the global average. This is in part due to persisting challenges related to weaker digital infrastructure and a lack of adequate legal framework to support cross-border data and documents exchanges.
The results reaffirm the need to step up technical assistance and capacity-building efforts to help these vulnerable economies bridge the existing implementation gap in trade facilitation.
Public Forum looks at how investment facilitation agreement can support sustainable future (WTO)
Noting that the outlook for FDI in 2023 appears weak, Ambassador Boza emphasized the great potential of an IFD Agreement, which would be “the first of its kind to set global benchmarks for helping WTO members create an environment conducive to attracting investment.” WTO members participating in the talks on investment facilitation for development (IFD) announced on 6 July the conclusion of the negotiations on the text of the Agreement following three years of intense text-based negotiations amongst over 110 WTO members at all levels of development.
New WTO publication underlines need to boost women’s participation in trade
New WTO publication provides insights into the world of export regulations and controls
Climate inaction puts lives on the line: WMO (UN News)
Insufficient progress towards climate goals is slowing down the global fight against poverty, hunger and deadly diseases, according to a report released on Thursday by the UN World Meteorological Organization (WMO). UN Secretary-General António Guterres echoed that message, warning that record temperatures and extreme weather were “causing havoc” around the world. The global response has fallen “far short”, Mr. Guterres insisted, just as latest UN data indicates that the Sustainable Development Goals (SDGs) are only 15 per cent on track at the midway point of the 2030 Agenda.
According to WMO, current policies will lead to global warming of at least 2.8 degrees Celsius above pre-industrial levels over the course of this century – well above the Paris Agreement target of 1.5°C. This year’s northern hemisphere summer has been the hottest on record, prompting the UN chief last week to reiterate his call for a “surge in action”.
In his foreword to the report, Mr. Guterres underscored that weather, climate, and water-related sciences can “supercharge progress on the SDGs across the board”.
Building Paris every week: Urgent need to cut emissions in construction sector (UN News)
‘Thriving economies’ critical to eradicating hunger and poverty: McCain (UN News)
“Thriving businesses and flourishing economies are the critical engines that will power global efforts to eradicate hunger and poverty, and strengthen international peace and security”, said Ms. McCain. “Sadly, today the humanitarian sector is one of the world’s biggest growth industries,” the WFP chief said. “War, economic turmoil, and increasingly, climate change and environmental degradation - are driving millions of people into poverty and despair each year.” Recalling that nearly 783 million people live in deep food insecurity, and 47 million of them in 50 countries, are on the brink of famine - while 45 million children under five suffer from acute malnutrition – Ms. McCain was pessimistic about the humanitarian crises ahead.
Rather than resign herself to “powerlessness” the WFP chief called for greater use of the private sector, which has over 200 years helped reduce global poverty through the power of private enterprise. She said the time has come, in the face of the new realities and budget cuts, to “rethink how we engage and find new models” of partnership. The WFP chief said a new and more effective collaboration would be of benefit to all.
Multiple shocks keep pushing world further away from development targets (FAO)
Halfway into the implementation of the 2030 Agenda for Sustainable Development, a lot of the progress made towards its food and agriculture-related targets has stagnated or reversed, compounding the challenges in eradicating poverty and hunger, improving health and nutrition, and combating climate change, according to a new report by the Food and Agriculture Organization of the United Nations (FAO).
The report, entitled Tracking progress on food and agriculture-related SDG indicators 2023, was published today, just days before world leaders gather in New York to attend the UN’s SDG Summit to review the state of the Agenda’s 17 Sustainable Development Goals (SDGs).
The main conclusions of the report are that while the world was already off track from meeting the SDGs even prior to 2020, the past few years have seen multiple shocks that have further stalled or even reversed progress across several targets. These include the lingering effects of the COVID-19 pandemic, the impact of armed conflicts around the world, high inflation, along with the escalating effects of the climate crisis.
The food and agriculture-related SDG indicators, of which FAO is among the UN agencies’ main custodian, are in a particularly critical state. The proportion of the world population facing chronic hunger in 2022 was about 9.2 percent, compared to 7.9 percent in 2015 (the latest FAO estimates put the global hunger figure for 2022 between 691 million and 783 million people). Investment in agriculture has stalled, there is no progress in conserving animal genetic resources, and forest area across the globe continues to shrink.
The Status of Women in Agrifood Systems (SWAFS) report, launched in April 2023, provides new evidence that demonstrates where gender gaps persist – costing sub-Saharan Africa USD 95 billion annually – and how they can be tackled. While the report brings forth alarming figures, it also highlights progress achieved, particularly in policymaking and women’s rights to land. It also contains clear calls to action that can be adopted by stakeholders in the private, public and international spheres – and those present at the Africa Food Systems Forum (AGRF) 2023.
The message delivered by the SWAFS report is clear. To achieve gender equality and women’s empowerment in agrifood systems, three main targets must be prioritized: investment in high-quality research and sex- and age-disaggregated data; interventions at scale using proven approaches which close asset and resource gaps such as gender-transformative approaches; and intentional interventions focused on women’s empowerment. Hitting the three targets above could increase global GDP by 1 percent (USD 1 trillion), provide food security for 45 million people, and increase the incomes of an additional 58 million people and the resilience of 235 million people.
Quick links
Africa Adaptation Acceleration Program Partnership Forum 2023 – A Step towards Climate Resilience (AfDB)
Homegrown digital innovation key to unlocking Africa’s vast economic potential (Ventures Africa)
SADC and United States celebrate Signing of the SADC-USA Regional Development Objective Agreement (SADC)
Cuban President at G77: Challenges today caused by unjust world order (Al Mayadeen)
Transformation of development cooperation in post-COVID-19 world (Daily Sabah)
UN marks halftime for the SDGs (UN News)
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SA economy demonstrates resilience through multiple gains (SAnews)
Despite the prevailing difficult global economic conditions, South Africa’s economy continues to demonstrate its resilience, with multiple gains being achieved towards the country’s economy, investment and trade.
These include the 0.6% expansion of the Gross Domestic Product (GDP) in the second quarter of 2023, a R5 billion investment pledge by auto component manufacturers, job creation at the Rainbow Chickens facility in Hammarsdale and an investment by Stellantis to develop a greenfield manufacturing facility.
“Cabinet is pleased with the resilience of the South African economy as shown by South Africa’s GDP second quarter data, as released by StatsSA. This is despite the prevailing difficult global economic conditions and the persistence of the electricity situation in the country,” Minister in The Presidency Khumbudzo Ntshavheni said on Thursday. According to Stats SA, six industries on the supply side of the economy grew in the second quarter, with manufacturing and finance driving much of the upward momentum.
“The petroleum, chemical products, rubber and plastic products division made the largest contribution to the increase in the second quarter. The basic iron and steel, non-ferrous metal products, metal products and machinery division also made a significant contribution to the growth in this industry,” the Minister said.
Kenya exports to Somalia up 76pc after resumption of miraa trade (Nation)
Kenya’s exports to Somalia nearly doubled in the first half of 2023 following the resumption of miraa exports to the Horn of Africa country that has now zoomed past the Democratic Republic of Congo (DRC) and Ethiopia to become the fifth largest destination of the country’s goods in Africa.
Latest data from the Central Bank of Kenya (CBK) shows Kenya exported goods worth a record Sh11.4 billion to Somalia in the first six months of the year, underlining a 76 percent growth from Sh6.5 billion in the same half last year.
The increase saw Somalia become Kenya’s fifth largest export destination on the African continent only behind Uganda, Tanzania, Rwanda, and Egypt, and above DRC and Ethiopia which previously used to rank above it. This comes a year after Mogadishu lifted a two-year-long ban on Miraa imports from Nairobi after talks between then President Uhuru Kenyatta and Hassan Sheikh Mohamud who had been newly elected as the Somalia President.
The miraa exports to Somalia were initially capped at 19 tonnes daily when the ban was lifted in July last year but was later increased to 50 tonnes daily. The lift was a major boost to farmers who had been forced to look for alternative markets for their produce, heavily affecting farmers in Mt Kenya East and West who grow the crop.
Commonwealth supports Southern African trade officials to leverage e-commerce opportunities (The Commonwealth)
The Commonwealth Secretariat and United Nations Conference on Trade and Development (UNCTAD) held a two-day workshop in Johannesburg this week for the Southern African Customs Union (SACU) Member States on leveraging emerging digital infrastructure and digital trade opportunities.
Focused on the need for the development of a regional framework on e-commerce within the SACU region, 50 trade officials from the Member States of Botswana, Eswatini, Lesotho, Namibia, South Africa and the SACU Secretariat discussed methods to advance work on e-commerce at the regional level and identified key elements to be considered in developing the framework.
In her opening remarks, the Chairperson of SACU and Deputy Principal Secretary of Lesotho’s Ministry of Trade, Tsireletso Mojela said: “The outcome of our deliberations should assist SACU to draw insights that will help strengthen policy and practical interventions towards addressing the changing landscape for cross-border trade, and how SACU can collectively facilitate digital e-commerce trade in the Common Customs Area.”
Senior Director of the Trade, Oceans and Natural Resources Division of the Commonwealth Secretariat, Paulo Kautoke reiterated that: “To ensure that our Member States continue to leverage the emerging digital infrastructure and digital trade opportunities, the Secretariat is determined to address the challenges that impede the expansion of e-commerce across the Commonwealth and ensure that the evolving digital technologies do not widen the existing digital divide.”
Intra-COMESA exports shoot up (The Herald)
Intra-COMESA exports have increased from US$1.5 billion in 2000 to US$12.8 billion in 2021 as part of the significant achievements under the free trade area regime. This came out at the two-day 10th COMESA Annual Research Forum which started yesterday in Lusaka Zambia. The event is part of efforts to strengthen integration and trade in the region and the African continent.
Speaking at the opening of the forum, Secretary General of COMESA, Ms Chileshe Kapwepwe said: “Despite this growth, intra-COMESA exports remain low at about nine percent of its total exports. Recent studies indicate that inter-COMESA export potential is in excess of US$100 billion,” she noted. She added that a lot more work, including research was required to unlock the potential and enable Member States to better utilise the preferences embedded in the Free Trade Area regime.
As the regional bloc approaches its 30th anniversary next year, she said it was important to take stock of its regional integration journey, its achievements, its challenges, and the prospects for promotion of further regional economic integration as an instrument for sustainable economic growth and development.
COMESA infrastructure ministers call for resource mobilization to close regional infrastructure gap (COMESA)
Ministers of infrastructure from the COMESA region conducted their 13th meeting in Kigali, Rwanda with a call for mobilization of funds from national resources, public private partnerships, foreign direct investment and development partners to close the rising infrastructure gap. The meeting which was attended by ministers and ministerial representatives responsible for transport and communications, information technology and energy, noted that since the onset of the COVID -19 pandemic, the infrastructure gaps have increased as resources were shifted towards the needs of the pandemic.
It is estimated that African infrastructure gap is have increased in the year 2020 to between $59 billion and $96 billion.
Rwanda Minister for Minister of State in the Ministry of Infrastructure, Eng. Patricie UWASE, who opened the meeting noted that despite the positive efforts of Member States, regional infrastructure is still lacking in terms of its quantity and quality. “In addition, our national policies sometimes could hinder easiness of trade, mobility and logistics,” she added. She called on the ministers to provide policy guidance to facilitate development and adoption of practical solutions to mitigate the infrastructure challenges to ensure adequacy of the infrastructure in relation to current and future demand.
Niger receives 265 trucks of basic supplies from Burkina Faso amid ECOWAS embargo (GhanaWeb)
The military junta in Niger has affirmed relations with their counterparts in Burkina Faso relative to supply of basic commodities. A report by the state-run Radio, Television Niger (RTN) revealed that Burkina Faso had delivered 265 trucks of supplies to Niger this week. The Minister of Commerce and Industry, Seydou Asman, was at the Niamey-Tillabery Regional Customs Directorate to receive the trucks which had various goods from Burkina Faso.
The intervention is part of the supply of basic necessities initiated between the two neighbours in the face of what the junta has declared “unfair ECOWAS sanctions.” ECOWAS slapped economic sanctions on Niger, including general and targeted sanctions on the landlocked country after the July 26 coup, including border closures and trade freeze.
Already the two countries have also agreed a military-level agreement that allows Burkina Faso to deploy men and logistics to support Niger in case ECOWAS carries out a threat to militarily engage the junta.
Integrating Sustainability Standards in South-South Trade Policies (Farmers Review Africa)
Trade between developing countries and regions—known as “South–South trade”—is growing rapidly. In the past couple of decades, its value has grown almost tenfold, from USD 600 billion in 1995 to USD 5.3 trillion in 2021.
A new report from the International Institute for Sustainable Development (IISD) explores how governments in developing countries are using voluntary sustainability standards (VSSs) in their trade policies to ensure this growth benefits small-scale producers, communities, and the environment. VSSs are private or public initiatives that set requirements for producing, consuming, and trading products more sustainably. However, small-scale producers in developing countries can face challenges participating in them, such as high certification costs and a lack of support, incentive, or information on how to adopt their practices.
“Governments in developing countries are increasingly recognizing the benefits of working with VSSs to promote trade that supports more sustainable production practices while also addressing some of the concerns associated with their adoption,” said Steffany Bermúdez, Policy Advisor, IISD.
“We found that integrating VSSs in South–South trade policies can help reduce some barriers to trade for small-scale producers and SMEs,” said Florencia Sarmiento, Policy Analyst, IISD. “It can also encourage trust and recognition in VSSs, lower the costs of compliance, increase demand for VSS-compliant products, and promote harmonization between different standards.”
Ruto, Adesina Backs African Youths’ Demand for Involvement in Setting Climate Policies (THISDAYLIVE)
President of African Development Bank Group, Dr. Akinwumi Adesina and the President of Kenya, William Ruto, have backed the demand of African youths for greater involvement in setting national and international climate policies, insisting that African youths are the biggest asset to the African continent and the global population.
Both leaders made the declaration at the recently concluded Africa Youth Climate Assembly, which held in Nairobi, Kanya, where issues of accelerated establishment of a Global Green Bank and a New Global Financial Pact, were discussed. The discussions were aimed at prioritising young people and their interests in climate financing, at a time when hundreds of young people from across Africa are demanding a significant role in decision making for climate action.
In response to the Declaration, President Ruto and the Bank Chief recognised Africa’s youth as the biggest asset for Africa and the whole world, praising their dynamism and innovation. Ruto and Adesina backed their demand for greater involvement in setting national and international climate policies.
Ruto highlighted his government’s initiative to establish smart cities to tackle unsustainable settlements and cut pollution in a bid to foster environmentally sustainable development. One way of investing in young people is by providing quality education and skills to help them tackle future challenges, Ruto said. He explained that his government had committed the largest budget in the country’s history to education – 630 billion KES ($433 million), representing over 27 per cent of the total annual budget. Adesina who had similar sentiments, underscoring the critical nature of youth investment in fostering growth and stability on the continent, said: “The biggest risk in this continent is not investing in the youth. The youth need investment, not empowerment. The African Development Bank has set up youth strategy to provide 25 million jobs. So far, we have developed 15 million jobs: ten million in the formal sector and five million in the informal sector.”
Today, the UAE is participating in the 8th session of the Belt and Road Initiative Summit in Hong Kong, with the aim of enhancing joint trade and investment cooperation with governments and the private sector, especially in the new economy, technology and entrepreneurship. The UAE has broad economic and trade relations with the People’s Republic of China, which is one of the country’s most important strategic partners in the world, as well as with countries that will contribute to the Silk Road trade corridors connecting the East with the West.
Since the launch of the Belt and Road initiative, the UAE has been leveraging its development potential, strategic location, and pioneering economic role in the region to be an active participant in it. The initiative is considered a favourable opportunity to advance the country’s development and investment plans regionally and internationally, especially since the initiative focuses on the UAE’s pivotal role in international trade and is in line with the objectives of the UAE Centennial. The economic partnership agreements the UAE forged as part of the initiative constitute an essential pillar of the UAE’s non-oil trade, as it contributes to approximately 30 percent of the UAE’s non-oil trade.
The UAE has advanced logistical capabilities with its state-of-the-art airports and international ports, which are now classified as the largest container handlers in the Middle East region, along with its capabilities in transporting large quantities of goods, which can be used to integrate land routes with the shipping lanes in the Chinese Belt and Road Initiative. In light of this competitive advantage of the UAE, the Belt and Road Initiative will enhance its capacity and position as a global centre for merchandise trade and logistics services, strengthening its position as a strategic point of contact between Asia, Europe and Africa.
Steel industry highlights importance of trade policy in decarbonisation efforts ahead of COP28 (WTO)
In her opening remarks, Director-General Ngozi Okonjo-Iweala noted that the steel industry needs the right trade policy environment to support its decarbonization efforts, stressing the importance of an environment which should enable investments in breakthrough technologies, ensure availability of critical inputs, and increase the demand and cost competitiveness of green steel. Noting that carbon pricing has an important role to play in reaching net zero for greenhouse gas emissions, Rajiv Mangal, Vice President for Safety, Health and Sustainability of Tata Steel, said that implementation of a Carbon Border Adjustment Mechanism could help provide a level playing field for steel in the European Union by ensuring that the cost of carbon is passed on to consumers.
High-level panel discusses inclusive strategies for climate action, sustainable trade (WTO)
Empowering vulnerable communities in decision-making processes is imperative for addressing the complex challenges posed by climate change, said participants in a high-level panel at the 2023 Public Forum on 14 September. They discussed how a holistic approach embracing diverse perspectives can help to develop comprehensive strategies and pave the way for a sustainable future for communities across the globe.
In a video message, Hindou Oumarou Ibrahim, President of the Association of Indigenous Women and People of Chad, highlighted the dangers facing indigenous people as a result of climate change. She urged the global community to pursue a new trade model not powered by fossil fuels and to invest more in the African continent to boost the growth of renewable energy. “Only 2% of renewable energy investment goes to Africa. Climate change is a threat to our survival. It’s time for all participants in climate change discussions to make a real move,” she said.
“People who are closest to the problem are closest to the solution,” Margot Brown, Senior Vice President of Justice & Equity at the Environmental Defense Fund said, emphasizing the need for decision-makers to listen to the needs of marginalized people and to invest more in building capacity. She also stressed the importance of long-term thinking when introducing green technologies. We should consider the entire ecosystem and assess the impact of these technologies on seven generations to come, she added.
Better Cotton to discuss traceability at WTO Public Forum in Geneva (Fibre2Fashion)
Better Cotton, the world’s largest cotton sustainability initiative, will this week participate in a panel discussion at the World Trade Organization’s (WTO) Public Forum focusing on the topic of traceability within fashion and textile supply chains. The session, titled: ‘Traceability as the Key Enabler for Improving the Sustainability of Cotton Value Chains’ will take place September 15 at the Centre William Rappard, in Geneva, Switzerland, Better Cotton said in a press release.
Traceability will be discussed in the context of how it could benefit fashion and textile supply chains facing tightening due diligence legislation, in addition to investor pressure and changing consumer expectations around sustainability. Traceability will connect farmers to the supply chain and form the foundation for an Impact Marketplace Better Cotton is developing, through which farmers would be rewarded for their transition to more sustainable farming.
After two years of development, Better Cotton will this year launch its own traceability solution, capable of providing supply chain visibility for industry stakeholders. With this, cotton will be fed through new Chain of Custody models that monitor the flow of product throughout the value chain.
World Investment Forum to mobilize financing for climate, energy, health and food (UNCTAD)
The UN Conference on Trade and Development (UNCTAD) will hold the World Investment Forum 2023 to rally investments for climate action, clean energy, health care, food security and other development needs.
“As the world faces multiple crises, we urgently need investment stakeholders worldwide to ignite action, unlock more funds and channel them to vital sectors key to reducing the effects of these crises,” UNCTAD Secretary-General Rebeca Grynspan said. According to UNCTAD’s World Investment Report 2023, overlapping crises such as the war in Ukraine, high food and energy prices and debt pressures led to a 12% decline in global foreign direct investment in 2022.
Dr. Thani Al Zeyoudi, minister of state for foreign trade in the United Arab Emirates (UAE), said UNCTAD can play a major role in addressing and ultimately mitigating these interlocking issues. “It is an undeniably challenging moment for the global economy, and for the economies of the Global South in particular. As we confront the triple shocks of inflation, geopolitical uncertainty and climate change, balancing prosperity and sustainability requires a combination of innovation, investment and, perhaps above all, will,” Dr. Al Zeyoudi said.
He added that the forum provides an opportune moment for the global investment community, supported by policymakers and institutions, to mobilize and direct capital to projects that can fast-track environmentally responsible and socially beneficial development.
Experts make case for tackling climate and sustainable development together (UN News)
In the first-of-its kind report launched on Wednesday, a group of independent experts use available data and evidence to outline the steps governments should take to maximize the impact of agreed policies and actions to address the worsening climate crisis and lagging achievement of the Sustainable Development Goals (SDGs).
“We must get the SDGs on track and keep the goal of 1.5 degrees alive,” said Li Junhua, the Under-Secretary-General for Economic and Social Affairs, presenting the report’s findings during an online event at the UN Headquarters. He stressed the need for an integrated approach to strengthen synergies between these two global agendas.
The SDG Progress Report released earlier in the year highlights that only 12 per cent of the targets are on track, while over 30 per cent of the SDGs have either stalled or regressed. Meanwhile, the Sixth Assessment Report of the IPCC, unequivocally shows that to keep the global temperature within 1.5°C limit, emissions need to be reduced by at least 43 per cent by 2030 compared to 2019 levels. The Executive Secretary of UNFCCC, Simon Stiell, echoed Mr. Li’s sentiment, stating: “Achieving the Sustainable Development Goals and stabilizing our climate to build resilient societies are two sides of the same endeavor.”
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SA agricultural exports amounted to $3.4bn in second quarter (IOL)
South Africa’s agricultural exports amounted to $3.4 billion (R64bn) in the second quarter of this year, up by 0.1% year-on-year, according to data from Trade Map.
While South Africa’s agricultural exports in the first half of the year had been encouraging, the export earnings would likely soften this year from last year’s record, the Agricultural Business Chamber (Agbiz) said on Monday.
Agbiz chief economist Wandile Sihlobo said despite challenges in key export markets such as the EU in the case of citrus, the products that dominated the export list this quarter were citrus, maize, apples and pears, wine, sugar, soybeans, wool, avocados, pineapples, fruit juices, nuts, and grapes.
“Importantly, this good export performance was not only a function of price but also improved volumes. The prices of some agricultural products have declined notably from the 2022 levels,” Sihlobo said.
New report highlights how imported cement destabilises the economy (Engineering News)
The negative impact on the South African economy caused by substituting local cement production with imported cement was highlighted in a report released by cement manufacturer PPC in conjunction with the Centre for African Management and Markets (CAMM) at the Gordon Institute of Business Science (GIBS), in Johannesburg, on September 13.
The report provides an overview of PPC’s contribution to the South African economy and forecasts the potential social and economic impacts of a significant displacement of local cement production in favour of imported cement.
“The report tangibly demonstrates the serious and complex threats that cement imports pose to our industry, society, and country’s development,” PPC South Africa and Botswana MD Njombo Lekula said. The report shows a potential R2.6-billion-a-year loss in economic value in an already-strained economic environment. The report shows that PPC was a major economic contributor in South Africa, with the business’ operations adding about R8.8-billion to the national gross domestic product (GDP) last year through its value chain – equivalent to 0.13% of the country’s total GDP.
Mutorwa ties railway to trade in Africa (New Era)
If Namibia is to reap maximum returns from the African Continental Free Trade Area (AfCFTA), it has to invest heavily in railway infrastructure, works minister John Mutorwa has said. He was referring to the envisaged railway lines to transport goods from the Port of Walvis Bay to the rest of Africa and vice versa .”We don’t have any alternative if we are talking about inter-Africa continental trade; those are the facilities that we need,” he said during a media briefing at Rundu last week.
“The conclusions of the feasibility study consultants are that this railway line, if everything, as recommended, is implemented, is viable. They have done the environmental assessment studies also, looking at the environment and how that railway line will impact the environment here and through the game park,’’ he said.
Now, the big issue from here on is the funding, he said, noting: “The ministry of finance is more in the lead now but we are also there to see how we are going to fund this because it is not only a Namibian railway line.
Nigerian importers to begin clearing goods from Cotonou border (Premium Times Nigeria)
The Nigerian government announced Tuesday that Nigerian importers would soon be free to legally import their goods from the ports in Cotonou, Benin Republic. The acting Comptroller-General of the Nigeria Customs Service (NCS), Bashir Adeniyi, disclosed this while speaking to journalists after a two-day working visit of Alain Hinkati, Director-General of Customs, Republic of Benin, to Nigeria.
In August 2019, the federal government ordered the closure of land borders to halt smuggling along the borders. However, the government in 2021 opened border points across the country, Seme, in the South-west, Ilela and Maitagari in the North-west, and Mfun in the South-south. The government maintained that the ban on the importation of rice, poultry, and other products still subsists.
Speaking on Tuesday, Mr Adeniyi said the decision to set up a clearing point for Nigeria-bound goods was one of the highlights of the two-day working visit of the Director-General of Customs, Republic of Benin, to Nigeria.
“We are building confidence in the system offered by the Republic of Benin. Our importers are using their ports and vice-versa. If there are people in the Benin Republic who want to use our ports, we try to build trust in our systems.” By this agreement, what it means is that Nigerian importers willing to use the ports in Cotonou can have their goods cleared in those ports because there would be an opportunity for them to pay duties on goods that are liable for payment of duties. He explained that the NCS is currently in the final stages of integrating its IT systems with the Federal Road Safety to curb illegal entry of vehicles.
Afreximbank to increase intra-African trade financing to $40bn by 2026 (TheCable)
Kanayo Awani, the executive vice-president of African Export-Import Bank (Afreximbank), says the financial institution plans to increase its intra-African trade financing to $40 billion. Awani said Afreximbank plans to hit the mark by 2026 as it continues to support the Africa Continental Free Trade Area (AfCFTA) initiative. She disclosed this on Monday, at the 2023 intra-African trade fair (IATF) business roadshow in Lagos, according to NAN.
As of 2021, Awani said, Afreximbank’s intra-African trade fund stood at $20 billion, noting that with the bank improving its backing of African trade and investments, there would be a 100 percent increase in six years. She also said part of the financial backing earmarked for intra-African trade is $1 billion to support the funding of the AfCFTA, and a $10 billion grant to facilitate the establishment and operation of the adjustment fund.
“We are also partnering with the AfCFTA Secretariat and AU to ensure a successful implementation of the Pan-African Payments and Settlements System (PAPSS), with the view to facilitating the payment and settlements of trade transactions in local currencies,” the executive vice-presidents said. “This will address the challenge of currency inconvertibility and foreign exchange shortages that hamper intra-African trade.”
Also, to address the challenge faced during the transportation of goods across multiple borders in Africa, she noted that the bank created the Afreximbank African collaborative transit guarantee scheme, using technology-enabled transit bonds to ensure seamless movement of goods. According to Awani, the bank also created the African trade facilitation programme (AFTRAF) to support its intra-African trade financing.
Dollar scarcity, lack of credit add to NTBs hurting EAC trade (The Star)
Difficulties in securing foreign currencies and lack of affordable credit in the wake of rising interest rates are major challenges facing traders in the East African Community, a report indicates. These add to delays in payments by government for supplied goods and services (pending bills), securing government tenders and obtaining tax refunds, tax appeals, rulings, and customs valuation.
According to the Report on the Ease of Doing Business in the EAC 2023 by the East African Business Council (EABC), on behalf of the Germany Corporation for International Cooporation (GIZ), there is also persistent cross-border restrictions and high trading costs which are hurting intra-EAC trade.
While EAC has harmonised tariffs and pushed for the ease of movement, traders are still facing challenges which vary from country to country. This is despite the region experience steady increases in trade volumes in post-Covid era, driven by reopening of economies and demand for goods and services. The region’s currencies also remain exposed to the strengthening US dollar with traders struggling to secure enough dollars for trade, amid low usage of local currencies for payments.
Intra-EAC trade, accounting for imports and exports in the seven EAC partner states, grew from 13 per cent in 2019, valued at $7.1 billion (Sh1.04 trillion), to 15 per cent in 2021, valued at $9.5 billion (Sh1.4 trillion). By September 2022, EAC’s trade value reached $10.17 billion (Sh1.5 trillion), official data shows, representing a 20 per cent share of intra-trade within global trade, which stood at $62 billion (Sh9.1 trillion).
“Despite this progress, persistent Non-Tariff Barriers and protectionist tendencies by EAC Partner States have been identified as key factors hindering the growth of intra-EAC trade,” the report reads in part.
SADC Gas Long-Term Economic Growth (Energy Capital & Power)
The shift signifies the growing recognition of gas as a stable, long-term energy source, rather than a transitional solution. In Mozambique for example, a strong portfolio of Liquefied Natural Gas (LNG) projects aim to advance regional energy security while generating critical revenue for the country via exports.
Meanwhile, in Namibia, offshore success seen by energy majors such as Shell have underscored the long-term potential of gas for the region in terms of energy supply and economic progress. In South Africa, emerging helium and natural gas producer Renergen’s pioneering efforts highlight the potential of harnessing onshore gas for long-term security. The company’s onshore Virginia Gas Project represents a step towards reducing energy import dependency and promoting sustainable practices within South Africa.
Renergen believes that helium will be a game changer for South Africa, and is expected to play a crucial role in global markets, contributing to the development of semiconductors and microchips for example.
COMESA Infrastructure Meetings Underway in Rwanda (COMESA)
Regional infrastructure experts led by Permanent Secretaries from the 21 COMESA Member States have begun meeting in Kigali, Rwanda, today to review progress on the implementation of the ongoing priority projects. The two-day meeting is the 13th of the Joint Technical Committees on Transport and Communications, Information Technology and Energy.
Among the key projects under implementation include Regional Infrastructure Financing Facility Project, the Tripartite Transport and Transit facilitation Programme, the Establishment of the Navigation Line between Lake Victoria and the Mediterranean Sea Project, the Support to Air Transport Sector Development Programme, the Enhancement of the Governance and Enabling Environment in ICT Sector among others.
While addressing the delegates, Assistant Secretary General in charge of COMESA programmes, Dr Mohamed Kadah, called for innovative ways of financing infrastructure development, through public private partnership, given the prevailing high financing gaps. “Africa needs adequate infrastructure to ensure reliable energy, efficient transport, reliable communication systems, resilient sanitation and affordable housing. And indeed, Africa’s vast infrastructure deficit is a huge impediment to economic growth and regional integration,” noted Dr Kadah.
Ghana committed to ECOWAS single currency agenda (GhanaWeb)
Ghana remains committed to the Economic Community of West African States (ECOWAS)’s single currency agenda despite the current economic challenges facing the country, Chief Director of the Ministry of Finance, Ms. Eva Esselba Mends, has said. She said the country’s economic challenges would be reversed and sustained macroeconomic stability re-established.
Mrs Mends stated this at the 53rd meeting of the Technical Committee of the member states of the West African Monetary Zone (WAMZ) as part of the 2023 Mid-Year Statutory Meeting of the West African Institute for Financial and Economic Management (WAIFEM), West African Monetary Agency (WAMA) and West African Monetary Institute (WAMI), which began on September 5, 2023 and would end on September 15, 2023 and being hosted by the Ministry of Finance under the auspices of the Bank of Ghana.
The Chief Director of the Ministry of Finance said Ghana’s economic growth remained positive despite the significant impact of multiple crises, such as the COVID-19 pandemic, Russia-Ukraine war. “Government remains focused and resolute on restoring macroeconomic stability. Ghana, like many other economies, continues to contend with record-level inflationary pressures. Nonetheless, outlook in the near-term is positive as inflation has peaked,” she stated.
The Chief Director stressed that in spite of the economic crises facing the ECOWAS region, such spiralling inflation, growing public debt and political instability, the region must “Urgently and deliberately pursue the economic integration of our sub-region and rake in the extensive benefits for our peoples”.
Abidjan-Lagos highway: ECOWAS moves to perfect design for project (Vanguard)
The Economic Community of West African States, ECOWAS has said it is set to perfect the design for Abidjan-Lagos Highway Development Project for implementation. The Commission disclosed this in Lagos yesterday, at the opening ceremony of the ongoing three-day workshop it organised to meet the relevant stakeholders for the necessary validation.
Head of Roads and Railyway at ECOWAS Commission, Mr Ashoke Maliki, said: “Today’s event is important because member states comprising of Nigeria, Benin Republic, Togo, Ghana and Cote d’Ivoire are here to look at the report presented by the consultant, validate it based on their experiences along the corridor and approve such report for investment.”
“By the end of this year, we would have been done with the design which includes Environmental Assessment ESIA, engineering design, project scoping and tender document,” he said.
Harnessing E-commerce for Sustainable Development in ECOWAS (ECOWAS)
The Economic Community of West African States adopts E-commerce Strategy to support Member States in leveraging e-commerce to build resilient micro-small and medium sized enterprises, create new jobs and spur economic diversification.
The 90th Session of the Economic Community of West African States (ECOWAS) Council of Ministers endorsed the ECOWAS E-commerce Strategy at its last meeting held from the 6 – 7 July 2023. This step follows its adoption by ECOWAS Ministers of Trade and Industry (ECOMOTI) at the 3rd Ministerial meeting which held from the 27th – 28th April, in Abidjan Cote d’Ivoire.
The ECOWAS Commission developed the E-commerce Strategy (ECS) with the support of the United Nations Conference of Trade and Development (UNCTAD) with the objective to strengthen the efforts of ECOWAS Member States on the use of technology to accelerate structural change and development, foster regional integration, including through economic diversification, job creation and more inclusive trade activities.
With the vision for a “sustainable, inclusive, and secure e-commerce ecosystem supportive of ECOWAS’ efforts to use technology to accelerate structural change and foster regional integration through economic diversification and job creation.” The Strategy aims to strengthen ministries of trade to support domestic and cross-border e-commerce development, secure trust along the e-commerce supply chain from producers to consumers, improve access to e-commerce statistics and market information in ECOWAS, and foster inclusion for e-commerce development in ECOWAS.
New Country Policy and Institutional Assessment Report for Africa Points to Areas of Improvement Amid Challenges (World Bank)
Despite new international challenges, poor harvests, and the price shocks of 2022, many countries in Sub-Saharan Africa saw improvements in their social inclusion policies and their structural policies—both of which are reflected in the latest Country Policy and Institutional Assessment (CPIA) scores for 39 countries in the region.
Countries are rated on a scale of 1 (low) to 6 (high) across 16 dimensions reflecting four areas: economic management, structural policies, policies for social inclusion and equity, and public sector management and institutions. The average overall CPIA scores in SSA remained stable at 3.1. While many countries made improvements in “policies for social inclusion” and “structural policies”, these improvements were offset however by stagnation in “economic management” and “public sector management and institutions.”
“At a time of high global interest rates and weak economic growth, it is encouraging to see progress in policy reform, especially around private-sector reforms and protecting vulnerable people from economic fluctuations,” said Nicholas Woolley, economist with the World Bank Office of the Chief Economist for Africa.
In 2022, the gap between sub-regions grew, as Western and Central Africa (AFW) continued its upward trend, improving scores slightly from 3.2 to 3.3, while Eastern and Southern Africa (AFE) remained unchanged at 3.0. However, this gap can largely be attributed to the performance of fragile and conflict-affected states (FCS). In 2022, the four lowest-scoring countries (South Sudan, Eritrea, Somalia, and Sudan) were located in AFE and were experiencing conflict and fragility. Without these four states, the score between sub-regions is almost identical.
Korea & Africa Seek Funding & Tech for Energy and Africa’s Agricultural Rise (Ecofin Agency)
The 7th Korea-Africa Economic Cooperation (KOAFEC) Ministerial Conference opened in Korea’s second-largest city, Busan, on Wednesday with a strong call for additional resources to help African countries achieve universal access to energy and transform the continent into the breadbasket of the world.
The conference is taking place at a time when Africa is facing a plethora of challenges. This is why Korea and African nations, under the aegis of KOAFEC, have agreed to deepen their cooperation with much more emphasis on mutually beneficial investment.
The African Development Bank Group and the Ministry of Economy and Finance of the Republic of Korea are co-hosting the three-day conference under the theme “Embracing a Sustainable Future: Just Energy Transition and Agricultural Transformation in Africa.” This embraces these two critical development priorities for Africa.
In his opening remarks, African Development Bank Group President Akinwumi Adesina urged delegates to seize the conference as a critical opportunity to galvanise support for several objectives: achieving universal energy access in Africa, advancing a just energy transition and transforming the African continent into the breadbasket of the world.
“Doing so will require additional resources,” Adesina said. The African Development Bank chief urged Korea to join other countries that have expressed strong interest in reallocating SDRs to the African Development Bank Group. “This will be a game changer for Africa’s development,” Adesina declared.
Choo summarised Korea’s priority areas for support to Africa as “ABC”—agriculture, bio-health, and climate change, as well as energy transition. He said Korea also planned to significantly increase its official development assistance.
WTO predicts 29% export increase expected by 2035 via regional trade integration (Nairametrics)
The World Trade Organisation, WTO, revealed that Increasing regional trade integration could promote both overall economic performance and integration into the global market beyond commodities trade by 29 % in 2035.The WTO disclosed this in its World Trade Report 2023, viewed by Nairametrics on Tuesday, titled “Re-globalization for a secure, inclusive and sustainable future”
The report revealed that for Africa, increasing regional trade integration could promote both overall economic performance and integration into the global market beyond commodities trade.
“For example, the full implementation of the African Continental Free Trade Area (AfCFTA) could lead to an additional 29% increase in total exports by 2035. Intra-African exports could surge by 81%, while exports to the rest of the world would also rise by 19%.
“The manufacturing sector would particularly benefit from a reduction in tariff and non-tariff barriers, with a projected 62% increase in exports. “As trade in manufactured goods allows for greater diversification than commodities trade, this would help African economies to further integrate into GVCs. Export diversification could also be greater in similarly endowed economies engaging in trade.”
WHO, WIPO, WTO renew commitment to support integrated solutions to global health challenges (WTO)
At their third meeting since the onset of the COVID-19 pandemic, the Directors-General of WHO, WIPO and the WTO agreed to shift the focus of trilateral cooperation from the response to the COVID-19 pandemic to increasing and broadening support for more effective and sustainable use of flexibilities in the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) to increase access to health technologies and to be better prepared for future pandemics.
While acknowledging the critical role of intellectual property (IP) to incentivize innovation, WHO Director-General Dr Tedros Adhanom Ghebreyesus, WIPO Director-General Daren Tang and WTO Director-General Dr Ngozi Okonjo-Iweala recognized the challenges faced by members to fully implement at domestic level the wide range of available options to secure timely and equitable access to health technologies.
This included the TRIPS COVID-19 Vaccines Decision adopted at the WTO’s 12th Ministerial Conference in June 2022 as well as flexibilities generally available under the TRIPS Agreement. They agreed that trilateral cooperation should address these challenges by intensifying activities to provide tailored support and information to members, including through joint technical seminars for delegates handling health, trade and IP issues.
Climate Finance Report Launched: Developed countries fail to meet climate finance targets for 11th year in a row (The Business Standard)
Wealthier nations, who are historically more responsible for climate change, are failing to meet the international climate funding obligations they agreed to in Copenhagen in 2009, stated the recently published new report on “Fair Share” by ODI and Zurich Flood Resilience Alliance. A target of providing $100 billion a year in climate finance – agreed by developed nations– has now been missed for the 11th year in a row.
The report is being released following the G20 leaders’ summit in Delhi, held over the weekend, where the G20 countries once again said that they will meet the $100bn goal in 2023. However, only eight developed countries out of 23 currently pay their fair share of climate finance, with the USA, Spain, and Australia continuing to fall hugely short.
ODI report shows, that despite needs amounting to an estimated $4 trillion by 2030 to keep to a 1.5 degree C trajectory, the $100 billion target has been missed every year to date. In 2020, the target should have been reached, provision and mobilization amounted to $ 83.3 billion. Cumulatively over 2011–2020, the climate finance gap totals $409.8 billion. The report mentioned that the failure to meet the climate finance goal can be attributed to developed countries collectively, and this failure has far-reaching consequences.
Beyond merely achieving their ‘fair share’ of the $100 billion target, developing countries must contend with the fact that historically, adaptation funding has been vastly overshadowed by mitigation support. In fact, the underfunding of adaptation is so pronounced that provider countries were implored to double their flows of adaptation finance during the 2021 Glasgow COP. This underscores the pressing need for a more equitable and comprehensive approach to climate finance, one that aligns with the actual needs and priorities of those most vulnerable to the impacts of climate change.
Civil society criticizes African Climate Summit for promoting false solutions, not fossil fuel phaseout (Oil Change International)
Last week, some 30,000 delegates and 25 African heads of state, as well as the European Commission President, UN Secretary-General, and US Special Envoy on Climate, gathered in Nairobi for the inaugural Africa Climate Summit. The event was seen as an opportunity for African countries to agree on a unified position ahead of the upcoming COP28 conference later this year.
The Summit and wider African Climate Week was held from the 4th to the 8th of September. Alongside the summit, some 500 African Civil Society Organisations from across the continent came together for a concurrent Real Africa Climate Summit to put forward community solutions for real climate action.
The language during the summit was bold. Kenyan President William Samoei Ruto said, “Climate action is not a Global North issue or a Global South issue. It is our collective challenge, and it affects all of us. We need to come together to find common, global solutions.”
The response by many activists was highly critical. The People’s Assembly declared that the African Climate Summit “ought to have been the opportunity to put forward a real and progressive stance on African climate action and integrated development in a way that centers African solutions and strategies and breaks from the business as usual of Africa being a pawn in the plans of others.”
The alternative People’s Declaration noted that “Real solutions to climate change cannot be designed in boardrooms and ivory towers – they must come from genuine consultation with people and communities and must put people-centered (not profit-centered) goals at their core.”
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‘The world is not waiting for us’ on digital technology – Minister Gungubele (News24)
South Africa will become an irrelevant trading partner if the country does not keep up with the pace of global technological development says Communications and Digital Technology Minister Mondli Gungubele. “Digital transformation is moving fast globally. It is not informed by our spirit, it is informed by the speed of the world,” he said in Durban on Tuesday. “The world is not waiting for us ladies and gentlemen, from both connectivity and broadband, and real connectivity.”
Gungubele said digital intervention was a tool to reduce unemployment in South Africa, adding that more investment in technology was required. The R3 billion that was allocated to South Africa Connect over the 2023/24 and 2024/25 financial years was not enough, the minister said. SA Connect is the country’s broadband policy and strategy that aims to create a “universally accessible” communication system.
Kenya institutes reforms to shore up tax revenue to 25 pct of GDP (The Star)
The Kenyan government on Tuesday announced a strategy of tax reforms that it seeks to use to shore up revenue in the financial years 2024/2025 and 2026/2027 and over the medium term. Njuguna Ndung’u, the cabinet secretary for the National Treasury, said the government will use the reforms to raise revenue to up to 25 percent of the gross domestic product (GDP).
“Kenya’s revenue yield is still below the desired East African Community (EAC) target of 25 percent of the GDP. This strategy outlines reforms of the tax system aimed at reversing the trajectory of the tax to GDP ratio and achieving the ratio of 25 percent by 2030,” Ndung’u said of the document, dubbed Medium Term Revenue Strategy, released in Nairobi, the capital of Kenya.
Downloads:
Public Notice: The Medium-Term Revenue Strategy (MTRS) - 11 September 2023
The Medium-Term Revenue Strategy: An approach for enhancing domestic revenue, FY 2024/25 - 2026/27
He said the reforms that will be implemented during the strategy period are aimed at promoting investments across various sectors by removing market distortions. The official added that the tax reforms would enable Kenya to achieve the desired revenue growth that will reduce the fiscal deficit over the medium term to the EAC regional target of 3 percent of GDP.
Recovery of global economy boosts Nigeria’s exports (Ventures Africa)
Nigeria’s trade sector has shown remarkable resilience and dynamism in the second quarter of 2023, despite economic challenges. Nigeria’s exports and imports in the second quarter of 2023 reveal some interesting trends and patterns in the country’s trade performance.
According to a report from the National Bureau of Statistics, Nigeria’s total exports increased by 8.15 per cent in the second quarter of 2023 compared to the first quarter, reaching N7.015 trillion. It is also an improvement from the 5.2 per cent decline in exports in the second quarter of 2022. This indicates a positive growth in the country’s export earnings, which could boost its foreign exchange reserves and balance of payments.
The main export products were petroleum oils and natural gas, accounting for 79.63 per cent and 9.11 per cent of the total exports respectively. Nigeria’s oil exports rose by 13 per cent in the second quarter of 2023 compared to the first quarter, driven by higher crude oil prices and increased production quota from OPEC. This shows that Nigeria’s economy is still heavily dependent on its oil and gas sector, which is vulnerable to fluctuations in global prices and demand. Despite the continuous increase in oil exports, this was not enough to offset the decline in non-oil exports.
The ECOWAS Commission Accelerates AfCFTA’s Implementation in the ECOWAS Region (ECOWAS)
The 90th Session of the Economic Community of West African States (ECOWAS) Council of Ministers endorsed the ECOWAS Implementation Strategy for the African Continental Free Trade Area Agreement on the 6 and 7 July 2023, in Bissau, Guinea-Bissau.
The ECOWAS Implementation Strategy for the AfCFTA is timely, as it responds to the African Unions 2023 ambition geared towards the “Acceleration of AfCFTA’s Implementation” which came into operation on 1 January 2021, marking the commencement of trade in a single African market of 54 countries, including 13 ECOWAS Member States.
The strategy is geared towards improving the effectiveness of the region’s trade integration framework, increasing coordination between Member States on their national AfCFTA implementation strategies, strengthening the productive capacity of Member States, building the capacity of Member States to engage in strategic African trade policy and ensuring the AfCFTA is a positive tool for women’s and youth economic empowerment.
The 10th COMESA Annual Research Forum kicks-off (COMESA)
The 10th edition of the COMESA Annual Research Forum began on Monday as part of capacity building initiatives in economic and trade policy research and analysis to strengthen integration and trade in COMESA region and the African continent. A total of eight research papers which has been prepared by researchers from across the African region will be presented at the two-day forum themed: “30 Years of COMESA Regional Integration: Retrospect and Prospects”.
Speaking at the opening of the forum, Secretary General of COMESA, Chileshe Kapwepwe stated that it is important to take stock of its regional integration journey, its achievements, its challenges, and the prospects for promotion of further regional economic integration as an instrument for sustainable economic growth and development. She cited the growth of intra-COMESA exports from US$1.5 billion in 2000 to US$12.8 billion in 2021 as part of the significant achievements under the free trade area regime.
“Despite this growth, intra-COMESA exports remain low at about nine percent of its total exports. Recent studies indicate that inter-COMESA export potential is in excess of US$100 billion,” she noted. She added that a lot more work, including research was required to unlock the potential and enable Member States to better utilize the preferences embedded in the Free Trade Area regime.
ACCI set to host 18th Abuja international trade fair (Voice of Nigeria)
The Abuja Chamber of Commerce and Industry, ACCI in Nigeria has announced its upcoming 18th Abuja International Trade Fair (AITF) scheduled for 29th September to 9th October 2023 in Abuja the nation’s capital.
The president of the chamber, Dr Al-Mujtaba Abubakar who made the announcement during a press briefing in Abuja said the Fair with the theme “Sustainable Financing and Taxation as Drivers for the New Economy,” would serve as a platform for businesses to engage with financial and tax institutions, discuss current trends and solutions, and foster sustainable approaches to the African Continental Free Trade Area (AfCFTA).
According to him, “This year’s theme is centered on financing and taxation which is the cornerstone of any prosperous nation and immense importance to the business community as it is critical to addressing climate-friendly initiatives, the ease of doing business, and attracting foreign direct investment.”
Driving Africa’s Industrialisation: Special Economic Zones And Transport’s Vital Role In Advancing AfCFTA Agenda (Africa.com)
Special Economic Zones (SEZs) can accelerate Africa’s industrialisation and increase economic growth. Through using designated SEZs and collaborations like the African Continental Free Trade Agreement (AfCFTA), there are opportunities to boost trade, investment, infrastructure, employment, and entrepreneurship, and to remove barriers to doing business. Transport has a vital role to play.
The continent requires a unique approach to see progress in industrialisation, including harmonising trade policies and facilitating the free movement of goods and services as the AfCFTA envisions.
With a prosperous future in mind, the 11th Transport Evolution Africa Forum & Expo takes place from 20-22 September at the Inkosi Albert Luthuli ICC Complex in Durban. The event serves as the exclusive platform for global, public and private participants to engage in advancing and upholding Africa’s port, rail, and road infrastructure. These need to function to see Africa thrive.
“The industry will gather to deliberate trends, obstacles, and opportunities across the continent,” says Le-Ann Hare, Portfolio Director at dmg events. “In collaboration with AfCFTA, the event aligns with encouraging partnerships and a borderless Africa. Sustainable and reliable transport is key to the future of the continent overall.”
Transport is one of five priority services under the AfCFTA.
Trade synergy to take centre stage at Africa-Korea summit today (Daily Trust)
As African countries round up preparations for the takeoff of the African Continental Free Trade Area (AfCFTA), key players are set to discuss how the continent will maximise benefits from trade at the forthcoming Africa-Korea business summit in Paris, France.
The summit, with the theme ‘Africa-Korean Partnership in an Era of Great Transformation’, is set to explore how Korean players can enable and synergize with deeper trade integration in Africa and build a complementary partnership for the 21st century through technological leadership across sectors including agriculture, mining and renewable energy to manufacturing and digitization.
“The Africa Continental Free Trade Area (AfCFTA) reached major ratification milestones in 2023 on the back of unprecedented political momentum for closer regional integration to see the emergence of Africa as a global growth hub representing a quarter of the world’s population and a $16.5tn dollar market by 2050.
World Trade Report 2023 makes case for “re-globalization” amid early signs of fragmentation (WTO)
The 2023 edition of the WTO’s World Trade Report presents new evidence of the benefits of broader, more inclusive economic integration as early indications of trade fragmentation threaten to unwind growth and development. The flagship publication features findings on how re-globalization — or increased international cooperation and broader integration — can support resilience, inclusiveness, and environmental sustainability.
“The WTO is not perfect — far from it. But the case for strengthening the trading system is far stronger than the case for walking away from it,” DG Okonjo-Iweala says. In introducing the report at the opening of the WTO’s annual Public Forum on 12 September, WTO Chief Economist Ralph Ossa said: “The main conclusion is that we need to embrace trade instead of rejecting it if we want to overcome the most pressing challenges of our time.”
“In particular, the report makes the case for extending trade integration to more economies, people, and issues, which is a process that we call “re-globalization”,” Mr Ossa added. Trade integration “is a powerful tool to improve living standards, which helped lift hundreds of millions of people out of poverty.”
Former UK PM Gordon Brown calls for new era of international cooperation, multilateralism (WTO)
The world needs to enter a new era of international cooperation and renewed multilateralism, former British Prime Minister Gordon Brown told a large audience on 12 September, delivering the Presidential Lecture at the WTO Public Forum. “I want to suggest now is the time for reconstruction, for a new era, even if it may seem at first sight we are striving against the odds,” said Mr Brown, highlighting the need to forge a “new multilateralism”, particularly at a time when international cooperation is facing considerable resistance from various quarters.
AFEX calls for ease of trade to foster Food Security in Africa at AGRF 2023 (Farmers Review Africa)
AFEX, Nigeria’s leading commodities player, has highlighted the need for streamlined trade, harmonised standards, and improved infrastructure in African agriculture to foster food security across the continent. AFEX took this position during a high-profile “The Real Cost of Food Security” session at the African Food System Forum (AGRF) 2023. The event, co-hosted by the Alliance for a Green Revolution in Africa (AGRA) and the government of Tanzania, unfolded from October 4th to 8th, bringing together global agriculture stakeholders for insightful panel discussions and presentations.
Presently, intra-African trade stands at just 14.4% of total African exports. The United Nations Conference on Trade and Development (UNCTAD) forecasts show the African Continental Free Trade Area (AfCFTA) could boost intra-African trade by about 33% and cut the continent’s trade deficit by 51%.
Speaking at the session, President of Rest of Africa at AFEX, Sanne Steemers, said, “Currently, Africa lacks essential infrastructure for inter-continental trade, which is hindering the achievement of robust food security across the continent. By implementing a more efficient agreement with African communities, we can promote sub-regional production networks and encourage cooperation initiatives, while promoting good agricultural practices throughout the continent.”
Related: Transforming Africa’s Food Systems: The AASR23 Report (Taarifa Rwanda)
Window to reach climate goals ‘rapidly closing’, UN report warns (UN News)
Simon Stiell, Executive Secretary of the UN Framework Convention on Climate Change (UNFCCC) which issued the report, called for “greater ambition and accelerating action”. “I urge governments to carefully study the findings of the report and ultimately understand what it means for them and the ambitious action they must take next. It is the same for businesses, communities and other key stakeholders.”
The report summarizes 17 key findings from technical deliberations in 2022 and 2023 on the implementation status of the Paris Agreement on climate change and its long-term goals, based on the best scientific information. The report comes ahead of the “global stocktake” at the upcoming UN climate change conference COP28, which will be held in Dubai, United Arab Emirates, in November-December.
Quick links
Why Africa needs trade integration – Awani
SADC central bank governors caucus on sustainability in financial systems amid climate change
Ghana, West Africa food security concerns rise on Niger sanctions
A New Financing Pact for Climate-Vulnerable Countries
Extreme heat fast becoming a threat to global fuel security
Market Reforms Can Stabilize Debt and Foster Growth in Developing Countries
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tralac Daily News
SA losing $62bn a year due to illicit financial flows (Moneyweb)
South Africa is losing more than $62 billion a year because of illicit financial flows (IFFs), which could be used to fund the building of schools, hospitals and safer roads. This was highlighted at a conference on increased illegal trading in automotive components, at the Automechanika event in Johannesburg.
Tyre Import Association of South Africa (Tiasa) chairperson and MD of Treadzone Charl de Villiers said a pilot study by the United Nations Convention on Trade and Development (Unctad) focused on measuring tax and commercial IFFs, revealed that South Africa is losing out on $21.9 billion per year in inward flows and $40.9 billion in outward flows.
These inward flows are being lost because of misdeclarations (either on purpose or by mistake), undervaluation of invoices, tax evasion, round tripping and many other things, De Villiers told a conference hosted by the Tyre, Equipment, Parts Association (Tepa) at Automechanika last week.
“There is a gap in the port operations particularly on those two [issues on misdeclarations and audit/reviews of containers]. We have reported these items but we never see any traction. That means we are losing income from a country perspective, and we are also losing competitiveness together as local manufacturers and importers that are doing the right thing,” he added.
New report says localisation policy locking South Africa into ‘wrong path’ (Engineering News)
A new Centre for Development and Enterprise (CDE) report argues that the South African government’s policy of localisation is locking the country “into the wrong path” of rising protection and rising inefficiency. The report comes as the Department of Trade, Industry and Competition (dtic) continues to prioritise localisation as a central pillar in South Africa’s industrial policy and amid growing concern over what some are describing as the country’s premature de-industrialisation.
Government has responded with a series of initiatives, including a 2021 approach to the social partners represented in the National Economic Development and Labour Council with a call for a 20% reduction in nonfuel imports over a five-year period. In addition, the dtic has for some time been working across various sectors, from steel and automotive to renewable energy and clothing, to develop masterplans to identify opportunities for local industrial development.
Nevertheless, CDE executive director Ann Bernstein argues that, instead of compelling the local manufacture of products, government should be working to shape a business environment that attracts and rewards investment shaped by strong competitive pressures and which is more often export-oriented.
More on South Africa:
South African citrus producers struggled to meet demand in Europe this season (Engineering News)
Agriculture was the fastest growing sector of the SA economy in the second quarter (Engineering News)
Auto sector should consider increased import substitution (Engineering News)
Kenya’s investment allure dips further in EAC region (People Daily)
Kenya has been ranked as the second most difficult country for businesses after South Sudan, according to the Ease of Doing Business in the East Africa Community (EAC) report by the East African Business Council, highlighting concerns about the nation’s business. The report shows that Kenya received a moderately low index score of 3.43, placing it at the sixth position out of the seven partner states surveyed. South Sudan, with a slightly higher index score of 3.5, was ranked seventh.
The report, which surveyed a total of 252 select companies in EAC between June 13 and July 21, 2023, places Rwanda as the best in terms of ease of doing business in the region, with a score of 2.08. It was followed by the Democratic Republic of Congo (DRC) with a score of 2.75.
This means Kenya, the region’s biggest economy, has slipped from the top two positions it held back in 2019 to the bloc’s new member, DRC, which joined in March 2022 and has since become an attractive destination for most companies, including Kenyan banks.
“Based on the analysis of the responses, companies from Trade in Goods and Trade in Service ranked the ease of doing business within their countries, notably Rwanda as Easy (Rank 2.08), DRC as Moderate (Rank 2.75), Uganda as Moderate (Rank 3.05), Burundi as Moderate (Rank 3.18), Tanzania as Moderate (Rank 3.32), and Kenya as Moderate (Rank 3.43),” reads the report in part.
More on Kenya:
Courier service provider says operations in the country unsmooth (The Star)
Kenya exports its first 52-tonne of ‘omena’ to China (The Star)
Ports collapsing, we must rehabilitate them — Minister (Vanguard)
The Minister of the newly created Marine and Blue Economy, Adegboyega Oyetola, has said the Lagos seaports are in dilapidation and called for urgent rehabilitation of the facilities.
Speaking in Lagos while on a tour of the Lagos Ports, Oyetola said that government will engage the terminal operators to see how the rehabilitation of the ports can be funded. The Minister also said that he will engage the Minister of Works on rehabilitating the port access roads which are also dilapidated.
“The infrastructure is almost collapsing from what I have seen... However, I am impressed with the management of the NPA (Nigerian Ports Authority) but we need to support them. I am looking forward to a situation where the terminal managers will be willing to contribute to the rehabilitation of the ports. So it is going to be a collaboration between the government and the terminal operators.
Tough conditions, lack of finances hurting EAC’s small traders- lobby (The Star)
Lack of access to information on trade regulations, violence and harassment and lack of access to finance are hurting women and youth-led businesses in East African Community’s cross-border trade. This is according to the East African Women in Business Platform (EAWiBP).
Women cross-border traders also often face discrimination at the borders where they have high chances of being harassed by border officials, especially when they travel alone, with cases where they are charged higher fees than men. Among the biggest impediments however is lack of information they need to navigate the complex trade rules and regulations despite the existence of a Simplified Trade Regime (STR) on customs procedures and documentation, leading to delays and penalties.
According to TradeMark, the majority of the traders are unaware of Simplified Trade Regime (STR) on customs procedures and documentation, hence avoiding formal border posts leading to a higher cost of business.
DRC makes slow steps in integrating with EAC states (The East African)
On the margins of the Partnership for Global Infrastructure and Investment (PGII) event at the G20 in India, the United States of America and the European Union welcomed the recent commitment by Angola, Zambia and the Democratic Republic of the Congo to develop the Lobito Corridor connecting southern Democratic Republic of the Congo and northwestern Zambia to regional and global trade markets via the Port of Lobito in Angola.
To accelerate this work in partnership with the three African countries, the European Union and the United States are teaming up to support the development of the Corridor, including by launching feasibility studies for a new greenfield rail line expansion between Zambia and Angola. This represents a powerful evolution of the Partnership element of the Partnership for Global Infrastructure and Investment with a collaborative approach that could be replicated in other strategic corridors around the world.
The U.S.-EU partnership will upgrade critical infrastructure across sub-Saharan Africa to unlock the enormous potential of this region. We are excited to join forces to generate economic benefits with our partners in Angola, the Democratic Republic of the Congo and Zambia.
Afreximbank Earmarks $41bn To Finance Local Vehicle Manufacturers, Support Intra-African Trade (The Whistler Newspaper)
The African Export-Import Bank (Afreximbank) has earmarked $1bn to fund local vehicle manufacturers in the continent. The bank has also doubled its financing for intra-African trade from $20bn to $40bn, the Executive Vice President of intra-African Trade, Afreximbank, Kanayo Awani said.
Awani made the disclosure on Monday at IATF 2023 Business Road Show in Lagos with the theme, ‘Positioning Nigeria to Harness the Opportunities at the African Continental Free Trade Area,’ monitored by THE WHISTLER. The road show aims at creating awareness for Nigerian businesses ahead of the IATF – Intra-African Trade Fair 2023 in Cairo, Egypt between November 9-15, 2023.
The IATF is one of the tools adopted by Afreximbank to bridge issues like information asymmetry among companies in the continent. Businesses in the continent remain unaware of the opportunities that exists in each country but more aware of opportunities available in other continents, she said.
She said, “If I were to ask a Ghanian footware manufacturer to source leather, he is most likely to look to New Zealand and South America for supply yet, countries like Nigeria, Ethiopia, Burundi and Sudan have the supply capacity to meet this demand."
Border checks, varied rules choke intra-Africa trade plan (Nation)
Businesses have flagged lengthy border checks and varied quality standards as the biggest threats to Africa’s dream of a seamless market. Companies in countries participating in the African Union-backed pilot initiative to accelerate trade on the continent said it takes several months to get some of the approvals needed.
The African Continental Free Trade Area (AfCFTA) secretariat launched a year-long Guided Trade Initiative (GTI) in October 2022 aimed at stress-testing operational, institutional, legal and trade policy environment under the envisaged world’s largest single market of about 1.4 billion people. The programme covers trade in tens of products like tea, coffee, tiles, batteries, processed meat, sugar, pasta, glucose, dried fruits and sisal fibre
Traders, however, say bureaucratic red tape at border posts are erecting bigger bumps for the free movement of goods than the weak transport and logistics capacity. Africa’s underdeveloped transport networks have been blamed for the rising cost of goods and services by as much as 40 per cent, rendering trade within the continent uncompetitive compared with Europe and other regions.
Digital solutions for safer African roads (The Independent Uganda)
Lusaka, Zambia set to host the Largest Fintech Event in Africa Happens this November. (TechCabal)
Can AI address Africa’s agricultural trade deficit? (African Business)
African leaders bank on carbon taxes to raise climate finance (The East African)
African leaders are eyeing a new “sin” tax on global emitters as a way of raising money from those who pollute the environment. The Nairobi Declaration – the culmination of the three-day Africa Climate Summit held this week in Kenya – called on the global community to support Africa’s push for carbon taxation to “provide affordable and accessible finance for climate positive investments at scale.”
The leaders also demanded that other world leaders implement “a mix of measures that elevate Africa’s share of carbon markets” in similar efforts to improve the bloc’s access to climate finance. Kenyan President William Ruto said both carbon taxes and carbon credits have the potential of providing the continent with the resources they need for climate change mitigation but are still underdeveloped and untapped.
“To be able to unlock the resources that we need to be able to drive these new investment and financing opportunities, especially for green energy, we believe it is time to have a conversation about carbon tax,” President Ruto said.
Africa’s vast mineral resources remain untapped (The Standard)
Africa, the world’s richest region for renewable energy potential has a vast untapped resource to drive sustainable development and industrialization. The Africa Climate Summit 2023 served as a platform for fruitful discussions on the Africa Green Minerals Strategy (AGMS) and its potential to reshape the continent’s economic landscape.
With the urgent need to industrialise and enhance economy-wide productivity, reliable energy is paramount, especially for priorities like food and water security. To meet these demands, Africa must diversify its energy sources, with a growing focus on renewable energy alongside fossil fuels, particularly natural gas.
Speaking at a side event during the summit, Paul Jourdan, emphasized AGMS’s alignment with key frameworks such as the Africa Mining Vision (AU 2009), the Africa Commodity Strategy (AU 2021), and the African Continental Free Trade Area (AfCFTA). He highlighted the importance of “green” minerals, including aluminium, chromium, cobalt, copper, graphite, iron–steel, lithium, manganese, nickel, Platinum Group Metals (PGMs), rare earth elements (REEs), vanadium, and zinc, which are central to AGMS.
Africa Food Systems Summit 2023: African Development Bank leads charge for better food systems (AfDB)
The 2023 Africa Food Systems Summit held recently in Dar es Salam has called on African leaders to build better food systems and promote food sovereignty, with youth and women at the centre. On the sidelines of Africa’s annual agriculture summit, the African Development Bank Group hosted a food sovereignty and resilience event. This follows the Dakar 2 Food Summit held in Dakar, Senegal early this year.
Dr. Martin Fregene, the African Development Bank’s Director of Agriculture and Agro-Industrialisation, said: “The 2023 Africa Food Systems Forum is a defining moment for highlighting and unlocking innovation. It allows us to take stock of the political, policy and financial commitments African countries have made to achieve productive, nutritious, inclusive, resilient, and sustainable food systems in the continent.”
AU ropes debt management into Agenda 2063 (The East African)
The African Union is pitching what it touts as a local solution to survive mounting debt for members. And the proposals could be tabled to member states as soon as the next summit, signaling the latest concerns about the potential of debt to drain economic targets. The revelations emerged last week at a conference on debt in Dakar, Senegal where officials explained the policy direction.
“As the AUC, we are setting up the African Debt Mechanism that will be adopted next year which will be a platform that will allow us to have information on debt and also to plan on how countries will engage in debt negotiations before getting the loans,” said Dr Olomo at the ‘African Conference on Debt and Development’, an annual forum.
While the decision to establish some form of debt observatory was announced earlier this year, African Union members are expected to adopt it from January 2024 to be in line with AU’s Agenda 2063. “It will also guide African countries on how they are going to engage in discussions when it comes to debt treatment. The AUC is playing that economic role of bringing together African countries to address issues related to debt,” said Dr Patrick Dzana Olomo, the Policy Officer for Investment and Resource Mobilisation, Economic Affairs Department of the African Union Commission.
ECOWAS Unity Put to Test as West African Coup Crisis Deepens (VOA)
A series of coups in Western Africa is putting the unity and capability of the Economic Community of West African States, ECOWAS, to the test as it seeks to restore civilian rule in countries such as Burkina Faso, Guinea, Mali and Niger. These four nations have joined forces to resist economic sanctions and potential military action by the other 11 countries within the bloc.
On July 26, the military junta in Niger placed President Mohamed Bazoum under house arrest, accusing his administration of mismanaging the country’s resources and allowing the security situation to deteriorate. In response, ECOWAS imposed trade sanctions on Niger and even threatened military intervention.
But the ongoing political and security crises in Niger, as well as in Burkina Faso, Guinea and Mali, are proving to be challenging for the other ECOWAS member countries.
DDG Ellard: International trade and WTO indispensable to resolving global crises (WTO)
Deputy Director-General Angela Ellard discussed the important role of international trade in addressing global crises at the Vilnius Conference in Lithuania on 8 September. She also stressed the need to reform the WTO to ensure it continues to be fit for purpose and underlined the importance of achieving outcomes at the WTO’s 13th Ministerial Conference to take place in Abu Dhabi next February.
“Our economists estimate that if the world were to decouple, real GDP loss would be at least 5% on average, and more for developing and least developed countries. And the opportunity cost of decoupling as opposed to further economic liberalization is 8.7% of real income at the global level. By contrast, reinvesting in multilateral trade liberalization can create significant income gains compared to fragmented trade scenarios. Deconcentrated and more diversified global chains, and those that include countries and communities that are now at the margins of the global economy, are key to better resilience, especially in times of crisis. In short, the world needs to re-globalize instead of de-globalizing.
At the WTO, we have a vision for such re-globalization: it will be green, digital, services-based, and inclusive. Last year, global trade in services grew by 15 per cent and reached $6.8 trillion, or just over one-fifth of total world trade in both goods and services. We estimate that the share of services in world trade grow further to reach one-third by 2040.”
G20 Summit
G20’s New Delhi Declaration is a successful balancing act (Peoples Dispatch)
The 18th Summit of G20 (Group of 20) concluded in New Delhi with the adoption of a joint declaration on Sunday, September 10. The declaration reiterated the G20’s commitment to UN Sustainable Development Goals and raised the need to reform global decision-making with the inclusion of more voices from the Global South.
pdf G20 New Delhi Leaders’ Declaration - 10 September 2023 (1.41 MB)
Host nation India was able to pull together all the participants to agree to the New Delhi declaration, despite earlier speculation that the war in Ukraine may play a spoiler. Russian foreign minister, Sergey Lavrov, who attended the summit instead of president Vladimir Putin, praised New Delhi for preventing the West from pushing its agenda and “politicizing” the forum at the cost of the Global South on many issues including the war in Ukraine. The declaration omitted the use of the word aggression in the context of the Ukraine war, which had been a major point of contention.
The declaration reiterated that the G20 is the “premium forum for international economic cooperation” and not “the platform to resolve geopolitical and security issues” while acknowledging the impact of these issues on the economy. The attempt by the West to use the G20 platform to push its agenda on geopolitical issues has often been criticized by some members of the G20.
Noting that “no country should have to choose between fighting poverty and fighting for our planet” the declaration pressed for greater cooperation to tackle the issues related to climate change and to ensure “sustainable, inclusive and just transitions” in the world. The declaration underlined the need to have increased efforts and financing to achieve the Paris Agreement to tackle the rise in global temperature and other climate issues. The G20 agreed to take steps to limit the rise of temperature to 1.5 degree Celsius by 2030 but rejected any push to have a time-bound phasing of fossil fuels as demanded by some countries and the UN earlier.
India’s G20 Presidency opens up trade opportunities to African Union as a permanent member (The Sunday Guardian Live)
India’s G20 Presidency on Saturday witnessed a transformative change with the induction of the African Union as a permanent member of the grouping, a move which will strengthen the G20 and also strengthen the voice of the Global South, of which India has been a staunch advocate. “The African Union has been made a permanent member of the Group of 20 countries,” Prime Minister Narendra Modi said on Saturday in opening remarks at the 18th G20 Leaders’ Summit, as he invited the AU, represented by Chairperson Azali Assouman, to take a seat at the table of G20 leaders as a permanent member.
Bringing in the African Union—a bloc of 55 countries from the African continent that was launched in 2002—as a member of G20, has been a key India objective to fructify during the ongoing G20 summit. In June 2023, Modi said that he had written to G20 counterparts to provide the African Union with full membership at this G20 Summit.
The two partners are opportunely placed with India committed to deepening trade and investments with Africa and increasing knowledge and technology transfer with the region. The India-Africa trade volume that stood at nearly USD 100 billion in 2022-23, has the capacity to go beyond doubling the trade volume to USD 200 billion by 2030, considering that both regions together have 3 billion population with very favourable demographics.
The induction of AU in the G20 comes amidst implementation of the Africa Continental Free Trade Area (AfCFTA) agreement, which complemented with the strong transportation and logistics networks, will help boost bilateral trade flows between the two sides.
Markus Engels, Secretary General of the Global Solutions Initiative stated: “As the focus of the G20 shifts to the Global South, we need to ensure that southern voices, perspectives and issues are right at the top of the global agenda – especially for problems like climate change that disproportionately affect nations from the Global South. Both regions need to work together if we want to have an impact.” Furthermore, with India, Brazil and South Africa at the helm of the G20 from 2023 to 2025, it will also be crucial to build bridges between the G7 and G20, Engels adds.
G20 leaders add African Union as permanent member at summit divided over Ukraine (PBS NewsHour)
10 benefits for African Union as a member of the G20 (The New Times)
New US-backed India-Middle East trade route to challenge China’s ambitions (CNN)
Russia rejects UN proposal, sticks to demands on Black Sea grain deal (Daily Sabah)
G20 leaders commit to WTO reforms; to have a fully functional dispute settlement system by 2024 (Deccan Herald)
Related News
Africa Climate Summit 2023 – Nairobi: Resource page
Background
Climate change and global warming pose significant risks to the global community. Its effects are felt in the physical environment in the form of increasing droughts, floods, wildfires, desertification and rising greenhouse gas emissions, among other things, but importantly also significant economic losses. The impact of climate change is evident in increasing displacement, mass migration, conflict and instability, environmental degradation, and food crises. Urgent action is required by the global community to curb climate-related risks and improve resilience to its effects. It is for this reason that 'Climate action' is included as Goal 13 of the United Nations' 2030 Sustainable Development Goals (SDGs) agenda
Africa is disproportionally affected by the global rise in temperatures and escalating climate-related risks. Unfortunately, many African governments have shown limited ability to respond to the climate crisis and economic shocks it has caused.
Africa Climate Summit 2023
Driving green growth and climate finance solutions for Africa and the world
The inaugural Africa Climate Summit, championed by H.E. President Ruto of Kenya, took place from 4-6 September 2023 in Nairobi, focused on delivering climate-positive growth and finance solutions for Africa and the world. It sought to address the increasing exposure to climate change and global warming, and its associated costs, both globally and particularly in Africa.
The Summit focused on the following thematic areas:
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Climate action financing
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Green growth agenda for Africa
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Climate action and economic development
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Global capital optimisation
Alongside the official programme, several side events were organised by African and international organisations, including AUDA-NEPAD, UNECA, the African Development Bank, World Resources Institute, WWF, IEA, various UN agencies as well as development partners.
Visit the official website here.
Outcomes
Leaders at the Summit were called upon to make ambitious pledges and commitments, as well as present a framework to guide these actions. The Summit produced an outcome document – the Nairobi Declaration of 6 September 2023.
pdf The African Leaders Nairobi Declaration on Climate Change and Call to Action (272 KB)
Select extracts from the Declaration:
The Leaders made the following commitments:
We commit to:
21. Developing and implementing policies, regulations and incentives aimed at attracting local, regional and global investment in green growth and inclusive economies;
22. Propelling Africa's economic growth and job creation in a manner that not only limits our own emissions but also aids global decarbonization efforts, by leapfrogging traditional industrial development and fostering green production and supply chains on a global scale;
23. Focusing our economic development plans on climate-positive growth, including expansion of just energy transitions and renewable energy generation for industrial activity, climate-aware and restorative agricultural practices, and essential protection and enhancement of nature and biodiversity;
24. Strengthen actions to halt and reverse biodiversity loss, deforestation, desertification, as well to restore degraded lands to achieve land degradation neutrality;
25. Strengthening continental collaboration, which is essential to enabling and advancing green growth, including but not limited to regional and continental grid interconnectivity, and further accelerating the operationalization of the Africa Continental Free Trade Area (AfCFTA) Agreement;
26. Advancing green industrialization across the Continent by prioritizing energy-intense industries to trigger a virtuous cycle of renewable energy deployment and economic activity, with a special emphasis on adding value to Africa's natural endowments;
27. Redoubling our efforts to boost agricultural yields through sustainable agricultural practices, to enhance food security while minimizing negative environmental impacts;
28. Taking the lead in the development of global standards, metrics, and market mechanisms to accurately value and compensate for the protection of nature, biodiversity, socio-economic co-benefits, and the provision of climate services;
29. Finalising and implementing the draft African Union Biodiversity Strategy and Action Plan, with the view to realizing the 2050 vision of living in harmony with nature;
30. Integrate climate, biodiversity and ocean agendas and instruments at national plans and processes to assure their full potential to support sustainable development is realized and support nature-based ocean solutions for climate, livelihoods and sustainability objectives, that support and increase the resilience of local communities, coastal areas and national economies;
31. Supporting smallholder farmers, indigenous peoples, and local communities in the green economic transition given their key role in ecosystems stewardship;
32. Identify, prioritize and mainstream adaptation into development policy-making and planning, including in the context of national plans and Nationally Determined Contributions (NDCs);
33. Building effective partnership between Africa and other regions, to meet the needs for financial, technical and technological support, and knowledge sharing for climate change adaptation;
34. Promoting investments in urban infrastructure including through upgrading informal settlements and slum areas to build climate resilient cities and urban centres.
35. Strengthening early warning systems and climate information services, as well as taking early action to protect lives, livelihoods and assets and inform long-term decision-making related to climate change risks. We emphasise the importance of embracing indigenous knowledge and citizen science in both adaptation strategies and early warning systems;
36. Accelerating implementation of the African Union Climate Change and Resilient Development Strategy and Action Plan (2022-2032)
Reactions from civil society and related organisations
Real Africa Summit 2023
The first African Climate Summit ends with Global North interference, but ignites African grassroots and peoples movements
The first ever African Climate Summit ended with a weak and inadequate declaration and clear that old colonial attitudes from Global North continue to dictate Africa’s climate policy, imposing failed and dangerous carbon markets on the continent, according to the People’s Press Release. The debates around the summit have however also brought some tangible benefits. It has boosted awareness of the climate crisis and exposed the vested interests in play.
A selection of responses to the outcome of the Africa Climate Summit are available here.
The African People’s Climate and Development Declaration 2023
Prior to the Summit, more than 300 organisations from across Africa petitioned President William Ruto of Kenya on the credibility of the Africa Climate Summit and ask him to take charge of the Africa Climate Summit whose agenda has been hijacked by foreign interests.
In a demand letter, the civil society organisations (CSOs) called for a reset of the focus and narrative being advanced by the Africa Climate Summit Secretariat which they argue has been hijacked by Western governments, consultancy companies, Global North think tanks and philanthropy organisations/foundations.
The Declaration outlined what Africa needs to pursue moving forward, it outlines what we as peoples need/commit to strive for, and what we demand our governments to do both domestically and in multilateral spaces such as COP28, IMF-WB meetings etc.
The CSOs recognised that if Africa doesn’t have a plan for our own destiny and future, we will continue be the subject of others’ plans, with continued exploitation, extraction and colonisation.
This People’s Declaration is a living document that seeks to voice aspirations and concerns of a wide diversity of movements and organisations, across all kinds of themes and constituencies. It conveys a subset of the many struggles and themes we are involved with.
Intergenerational Dialogue: Africa Driving Climate Adaptation Solutions
Young People Demand Global Leaders Double Adaptation Finance by 2025 to Secure Africa’s Future
Young people from 135 countries around the world are calling on leaders to urgently scale up adaptation finance and include young people in adaptation decisions and action, according to a press release. The Youth4Adaptation Communiqué presented at the Intergenerational Dialogue: Africa driving climate adaptation solutions & jobs convened by the Global Center on Adaptation (GCA) and the Wangari Maathai Institute (WMI) during the Africa Climate Summit, presents the views of young people from 51 African countries. Their message to decision-makers is clear: Young people are critical partners in adapting our world, a vision that can only become a reality by doubling adaptation finance by 2025.
Speaking during the event, Ban Ki-moon, 8th Secretary General and Chair of the Global Center on Adaptation emphasized the global importance of Africa’s youth climate leadership: “When young people are given negotiating muscle and real influence in the world, they will create a better future for all of us. Young people are forced to bear the brunt of climate change. They should be given the chance to successfully adapt.”
Doubling down through Africa Adaptation Acceleration Program (AAAP) Compacts (GCA)
African Leaders joined top representatives of global and regional institutions during the Africa Climate Summit to guide a resilient transformation for Africa in light of the climate emergency fallout on the region. Leaders highlighted the following key messages in the Leaders Communiqué:
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Accelerating adaptation action at speed and at scale is Africa’s number one climate priority – A climate secure Africa benefits the whole globe
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Doubling down on adaptation means turbo-charging the flagship Africa Adaptation Acceleration Program, unlocking private finance and boosting grant-based funding for adaptation
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AAAP Compacts cement domestic and international commitments towards the delivery of highly strategic and comprehensive adaptation responses country-by-country
Other responses
Africa Climate Summit fails to deliver on African solutions for a clean energy future (Greenpeace)
Civil society reaction to the Declaration of Nairobi:
“The Declaration insists that Africa has a chance to be part of the solution with its renewable energy potential. African civil society has known this and has been demanding a 100% renewable future for Africa. At the same time, we see that Africa has been and is currently still being used as an extraction hub for gas and other fossils to close energy gaps in the Global North. The Declaration also mentions biodiversity hotspots, but these areas are not being spared in the quest for more oil and gas by the fossil fuel industry. Deltas in Namibia and Senegal are set to become regions of environmental degradation and human rights violations just like the Niger Delta after it was pummelled by oil extraction. Additionally, the East African Crude Oil Pipeline (EACOP) is cutting through transboundary protected sites.”
Civil society criticizes African Climate Summit for promoting false solutions, not fossil fuel phaseout (Oil Change International)
“Suggestions of solutions mean little without any mention of phasing out ALL fossil fuels, not just coal. Any solution that allows business as usual from the fossil fuel industry and that emphasizes clean-up instead of closing sources of dirty energy is bound to fail and cause even more havoc on the environment and communities. The African Union needs to be bold and discuss decolonising Africa’s energy sector instead. We need strong and clear calls for reparations and system change in this critical moment instead of lukewarm self-contradicting statements. It is time that world leaders and financial institutions put in the work and money to ensure that Africa has a just transition to renewable energy instead of being locked into more fossil fuels.” – Thuli Makama, Africa Senior Advisor, Oil Change International.
Statement From GEAPP On The Africa Climate Summit 2023
The summit has showcased the leadership and agency of citizens across the continent. This summit was not about a vision for the future, it was about action that is happening right now, and GEAPP is determined to do what it takes to unlock barriers and speed up progress with new technologies, flexible financing, and new green jobs that power business and progress with the continent’s abundant renewable energy sources.
As an organisation built around collaboration, we applaud the diverse range of organisations joining together determined to drive urgent action that scales investment and expands opportunity.
Prof. Yemi Osinbajo, Global Advisor to GEAPP said: “The past three days at the Africa Climate Summit have shown the commanding role Africa can play in the climate crisis that impacts us all. The Nairobi Declaration published today reflects many hours of debate and discussion, as people from across the continent have spoken up and shared not only the challenges they face day to day, but the ideas, innovation and technologies that will carry the world forward. This is only the beginning of what needs to be done and we resolve to take all we have learnt into the global meeting series of the next few months, culminating in COP28. For the Global Energy Alliance for People and Planet, that means continuing our work to accelerate the green energy transition on behalf of the 3.6 billion people on earth who currently lack clean, reliable, affordable electricity.”
NSAS take note of progress as captured in the declaration of the Africa climate summit, calls on further action areas (The ForeFront Mag)
The Africa Climate Summit-Non-State Actors’ Committee (NSAC) welcomes the Declaration of the Africa Climate Summit, issued by the Heads of States on September 6, 2023, as a positive step towards a more ambitious, fair, equitable, ecologically just and inclusive global response to the climate crisis.
We recognise the pressing need for the global community to decrease emissions, decarbonise economies and align with the Paris Agreement, and appreciate the Declaration for reaffirming the principles of common but differentiated responsibilities and equity, which are vital for a just and efficient global response.
We also commend the Declaration for acknowledging the problem of loss and damage caused by climate change, which is already affecting several African communities. We urge the international community to put into effect the Loss and Damage Facility established during COP27 and to provide sufficient and consistent assistance to the countries and individuals who are most vulnerable.
We express our disappointment that the Declaration does not prioritize adaptation as a critical concern for Africa and leaves it a mere peripheral issue. We would like to remind the Heads of States that adaptation is not only crucial for survival but also a matter of justice. Africa is one of the regions that are most affected by climate change, even though it contributes the least to its causes. Therefore, we urge the authorities to accord equal attention and resources to both adaptation and mitigation in their national and international actions. Additionally, we demand that adaptation strategies are designed-based on local knowledge, needs, capacities, and human rights principles.
CARE International: First Africa Climate Summit falls short on delivering for the most vulnerable
Chikondi Chabvuta, Regional Advocacy Advisor, Southern Africa, CARE International: “We called on [African leaders] to listen to the voices of their people, especially the youth, women, and other vulnerable groups, who have been hit the most by the consequences of climate change. However, it was disappointing to witness most of the discussions throughout the summit, including the final declaration, focusing heavily on business and investments in carbon trading, while negating the interests of the most vulnerable populations.”
In the points of the declaration that addressed climate finance – funding to support mitigation or adaptation to climate change impacts – CARE’s Climate Policy Advisor Obed Koringo, applauded the pressure for increased international support. However, Koringo stressed there were key missing issues to guarantee urgent support to all people impacted by the climate emergency:
“The summit missed a golden opportunity to call for enhanced, flexible, new and additional finance for adaptation, and lacked the commitment to put in place what is needed to channel adaptation finance to the local level, where it is required the most.”
How Africa can help drive global climate change solutions (ONE Campaign)
Climate change poses an existential threat to life on earth. Hotter temperatures, persistent droughts, historic floods, and failed crops are happening with greater frequency. More than 3 billion people are highly vulnerable to climate change.
“Climate change isn’t an abstract or future threat to the African continent. Having neither caused nor benefited from causing climate change, African countries now bear the brunt of its impacts.” – ONE Campaign
But with the right support, investments, and policies, Africa could become a driver of climate solutions not just for itself but for the whole world. Given its significant reserves of critical minerals used to produce renewable energy, significant solar generation potential, and ecosystems capable of sequestering significant amounts of carbon, the African continent could become a green energy powerhouse.
To avoid the worst consequences of climate change, we need global collective action on three fronts: Limiting global warming; Reducing environmental degradation; and Supporting communities to adapt to the present and future impacts of climate change.
Africa and the Caribbean share deep historical and people-to-people ties. Indeed, the African Union has identified the Caribbean as Africa’s sixth region. The shared experience of the climate emergency has created another commonality, and one that presents an existential threat to both regions, particularly for small states.
African governments, similar to their Caribbean counterparts, have limited capacity to respond to the climate crisis due to debt distress and economic shocks, necessitating urgent action including debt relief and increased liquidity.
Building on Bridgetown 2.0 and the Paris Pact, the Africa Climate Summit (ACS) in September can help advance a transformational agenda to reset and reshape trade and investment relationships to build climate resilience.
However, we need to move swiftly from high-level policy discourse to tangible actions, where it matters on the ground. The private sector must be a central driver of this transformation, supported by appropriate policy frameworks. Whilst commitments at the highest levels must be secured, direct business-to-business engagement is imperative, particularly in deepening South–South trade and investment relationships. – Deodat Maharaj, Executive Director, Caribbean Export Development Agency
Reports
UNFAIR SHARE: Unequal climate finance to East Africa’s hunger crisis (Oxfam International)
The stark reality of climate change has highlighted the financial obligations rich polluting nations, especially in the global North, owe communities and countries most impacted and now unprepared to deal with the unavoidable cost of the climate crisis. East Africa is one of the world’s worst-hit regions by climate change and is now experiencing its worst climate-induced extreme weather, fuelling an alarming hunger crisis, despite contributing almost nothing to global carbon emissions. Over 31.5 million people are currently facing acute hunger across Ethiopia, Kenya, Somalia, and South Sudan.
The global climate crisis, caused in large part by greenhouse emissions because of human reliance on fossil fuels for energy and manufacturing, has led to a 1.1-degree Celsius increase in average temperature worldwide. This has resulted in extreme weather patterns, leading to food insecurity and hunger for vulnerable populations, including for 31.5 million people in East Africa who are currently experiencing crisis levels or worse of hunger due to drought and flooding. Despite contributing the least to climate change, these countries are suffering the extreme hardship and economic losses which they can ill-afford. The paper argues for greater accountability from polluters to cover the costs of averting environmental and human damages and to support long-term development efforts to build climate resilience in affected communities.
A roadmap for African resilience: addressing transboundary and cascading climate risks (SEI)
This roadmap proposes key actions towards realizing an ambition of the African Union Climate Change and Resilient Development Strategy and Action Plan (2022–2032) to “Enhance coordination between the Regional Economic Communities and Member States in addressing and managing transboundary and cascading climate risks”.
The Africa Carbon Markets Initiative: A Wolf in Sheep’s Clothing (Power Shift Africa)
Carbon credits are, essentially, pollution permits – an imaginary commodity created to benefit the wealthy, not the climate. They are a financialisaton of African nature and the climate crisis, dealing in an imaginary commodity of tonnes of carbon ‘saved’. Africa Carbon Markets Initiative claims its purpose is to create a market for a ‘high-value export commodity’. In truth, however, there are two biggest winners from carbon markets. Firstly, fossil fuel companies. The scheme allows oil and gas companies across the world to continue to burn their polluting products with impunity for profits. Secondly, financial brokers. These buy and sell the credits with huge markups. Even so, their obscene profits never trickle down to communal and even individual owners of land.
Accelerating Adaptation Finance – Africa and Global Perspectives (Global Center on Adaptation)
In the context of the Africa Climate Summit, this policy brief highlights the need to dramatically increase the amount and efficacy of adaptation financing to Africa. This brief also spotlights the persistent challenges related to adaptation finance flows in Africa, and highlights priority actions for the global finance community to undertake to address them.
Strategy and Planning to Redouble Adaptation in Africa: A Review (Global Center on Adaptation)
This study provides a detailed review of the national strategic adaptation documents prepared by governments in the African continent. It examines the main characteristics of these strategic adaptation plans, their depth and coverage, and the degree to which these documents demonstrate a supportive environment to implement the most critical adaptation programs at scale for each country.
News
A selection of news items covering the Africa Climate Summit 2023 is available below:
Inaugural Africa Climate Summit dominated by debt and finance – Eco-Business, 13 October
Climate efforts enable Africa to transform into global green hub – China Daily, 26 September
Themes of the Africa Climate (Finance) Summit: Loans, Taxes, Credits – tralac, 20 September
A Time To Change Africa’s Climate Narrative – Africa.com, 14 September
Southern Africa to benefit from big oil and gas deposits in Namibia – IOL, 14 September
The Africa Climate Summit promised the Earth, but delivered very little – Daily Maverick, 13 September
Nairobi declaration is a resounding victory for African countries – The Standard, 10 September
Africa refines its demands for the climate: financing, debt and taxes – Africanews, 8 September
A New Financing Pact for Climate-Vulnerable Countries – Project Syndicate, 8 September
Africa Climate Summit: Nairobi Declaration makes strong push for accelerated climate action and financing mechanisms – UN Africa Renewal, 8 September
Africa Climate Summit 2023 ends with ‘Nairobi Declaration’, but not everyone is happy – Down to Earth, 7 September
$23 billion pledged at Africa Climate Summit, but leaders warn of need ‘to act with urgency’ – CNN Connecting Africa, 7 September
Africa Climate Summit ends with call for action and pledge of $23bn in investment – Daily Maverick, 6 September
Africa Climate Summit 2023: Invest in resilient, efficient and sustainable food system, leaders urge – Down to Earth, 6 September
African leaders skirt over fossil fuels in climate summit declaration – Climate Home News, 6 September
At Africa Climate Summit, global leaders unite to put continent at heart of fight against climate change – AfDB, 6 September
Cross-border electricity trade key to universal access in Africa – ESI-Africa, 5 September
Hundreds of millions of dollars pledged for African carbon credits at climate summit – Reuters, 5 September
Africa Can Be ‘at Heart of a Renewable Future’, Says Secretary-General in Remarks to Nairobi Climate Summit – United Nations, 5 September
Africa must optimise all it has to achieve universal energy access, says African Development Bank head – AfDB, 5 September
In Nairobi, ECA’s Antonio Pedro calls on Africa to accelerate climate action and ensure a just transition – UNECA, 4 September
A battery swap scheme is turning Africa’s roads electric – CNN, 4 September
Africa Climate Summit to Kick off In Nairobi on 4th September – African Union, 3 September
Africa’s intensifying heatwaves show urgent need for finance – China Dialogue, 1 September
Resource-rich countries facing a double transition – Engineering News, 1 September
Related News
tralac Daily News
South Africa to Face Pressure from Trade Partners to Ditch Coal (Supply Chain Brain)
South Africa must accelerate its transition to renewable energy to avoid export penalties being threatened by key trading partners, a government official said September 6. “We’re doing this for ourselves because it is absolutely the right way to go,” said Vukile Davidson, the National Treasury’s chief director of financial markets and stability. “But we are also going to increasingly have to deal with external pressure.”
The European Union plans a levy on certain carbon-intensive imports, though South Africa has argued the so-called carbon border adjustment mechanism may break World Trade Organization rules. South Africa, which gets 80% of its electricity from coal, is trying to increase its supply of renewable energy to reduce greenhouse gas emissions and its reliance on Eskom Holdings SOC Ltd.
The country is suffering from its worst power outages on record because the state-owned utility’s poorly maintained and aging power stations can’t meet demand. Part of preparing for the country’s energy transition is legislation to provide the regulatory certainty necessary to draw capital from the private sector.
New Trans Kalahari Corridor takes a significant step towards economic development (Windhoek Observer)
Namibia, Botswana, and South Africa have taken a significant step toward boosting trade and regional development with the inauguration of new offices of the Trans Kalahari Corridor Secretariat offices in Windhoek. Namibia’s Minister of Works and Transport, John Mutorwa along with his counterparts from Botswana and South Africa marked the occasion with optimism and a shared commitment to the corridor’s growth and impact on the Southern African region.
The Trans Kalahari Corridor (TKC) represents a tripartite transboundary corridor management institution with a vision to foster deeper regional integration programs, including those of the Southern African Development Community (SADC), the Southern African Customs Union (SACU), and the New Partnership for Africa’s Development (NEPAD). The agreement encapsulated a shared commitment to eradicating poverty and promoting sustainable growth and development in the region.
The inauguration of the Trans Kalahari Corridor Secretariat offices represents a significant milestone in the ongoing effort to enhance trade and regional cooperation among Namibia, Botswana, and South Africa. As this vital transport corridor continues to ease the movement of goods and people, it is poised to play a central role in propelling the development agendas of these nations and fostering greater integration in Southern Africa.
Ruto touts cross-border trade, youth in agriculture (Tanzania Daily News)
Kenya’s President William Ruto has called African leaders to utilise their country’s territorial borders as the bridges for cross-border trade and not barriers, while also insisting that there is no future in agriculture, unless the continent brings young people on board.
Dr Ruto commended President Samia Suluhu Hassan for swiftly facilitating smooth flow of goods between Tanzania and Kenya. President Ruto noted that Kenya is a major consumer of Tanzania’s food despite the fact that few years back, there were few people in the borders, who delayed consignments entry in either country. He made the statement while addressing delegates who took part in hybrid form during the presidential summit at the Africa Food Systems Forum 2023 at the Julius Nyerere Convention Centre (JNICC) in Dar es Salaam, on Thursday.
Mr Ruto said swift flow of food crops through the border from Tanzania to Kenya will bring balance of trade between the two nations. To increase agro production in Africa, he underscored youth inclusion in the sector, referring to the fact that in many African countries including in Tanzania, there is enough untapped arable land, which upon fully utilisation will offer stable employment and food security.
Zambia key to Namibia’s trade objectives – Iipumbu (New Era)
Namibia and Zambia this week signed four agreements in the fields of industrial development cooperation as well as competition and standards in a bid to boost trade and cooperation between the two countries. This is part of a continuous effort to strengthen bilateral relations as sister countries. Trade and industrialisation minister Lucia Iipumbu emphasised the recent agreements must be implemented for progress to be provided at the next Namibia-Zambia Joint Trade and Investment Committee (JTIC) ministerial meeting.
“Namibia recognises trade as an economic catalyst for most of the developmental activities in the country. In this regard, Namibia prioritised trade and investment with her neighbours and Zambia is one of the countries of strategic importance with the potential to further improve trade benefits,” said Iipumbu on Tuesday in Lusaka. Iipumbu noted the two countries must identify and leverage key priority business, trade and investment opportunities in various sectors. This, she said, should be done while focusing on collaborative efforts specifically targeting value chain development in a bid to diversify the two economies. “We must also consider enhancing supply chain exchanges at a technical level to focus on manufacturing and value addition,” Iipumbu added.
Nigeria has potential to increase value of cocoa, says Thompson (The Guardian Nigeria)
Nigeria has a lot of potential to increase the value of cocoa, as the produce is yet to be well understood, appreciated and consumed in Africa. This was the submission of the Oloni of Eti-Oni, Osun State, Oba Dokun Thompson Gureje IV, delivered at the Nigerian British Chamber of Commerce (NBBC) 2023 Trade Mission to the UK, held at the Hilton London Kensington Hotel, stating that the value of most of the products is in its consumption even at the farm gate and not just in export as raw materials.
“The Nigerian market is a dynamic one that requires innovation and clear understanding of the people,” he said. Oba Thompson revealed that the agric sector offers incredible opportunities in production, processing and manufacturing, with a land mass of 923,768sq.k and 38.43 per cent reported as arable land in 2020.
“There is a lot of potentials to increase that value because cocoa as a product like coffee though produced in Africa is yet to be well understood, appreciated and consumed in Africa and the value of most of these products is in its consumption even at the farm gate and not just in export as raw materials.”
Africa Food Systems Forum 2023: Minister Mivedor Promotes Togo in Tanzania (Togo First)
The Togolese Minister for the Promotion of Investment, Rose Kayi Mivedor, is in Dar es Salam, Tanzania. She is attending Africa’s Food Systems Forum 2023 (AGRF) which started on Tuesday, September 5, and ends today, September 8. Mivedor, on Thursday, told the forum’s participants about business opportunities available in Togo. Among others, she said her country positions itself as West Africa’s natural gateway regarding the African Continental Free Trade Area (AfCFTA).
According to the official, Togo is the obvious choice because of its main port, the Autonomous Port of Lomé, which is the only deep-water port in West Africa. She added that the port gave access to surrounding landlocked countries, Mali, Niger, and Burkina Faso. “We play a pivotal role as a communication corridor between coastal countries, passing through Nigeria, Benin, Togo, Ghana and Côte d’Ivoire. Therefore, we position ourselves as a platform that facilitates the storage of goods for redistribution to other countries,” Mivedor declared.
Report stresses trade agreements to boost imports, exports (Tanzania Daily News)
THE African trade agreements have been cited as among major initiatives that can help boost agricultural imports and exports as well as curb the adverse effects of climate change by including actionable provisions, according to the latest. However, the report has underscored that the East African Community (EAC) has one of the highest ratios of agriculture to GDP among the regional economic communities examined, as well as the highest introversion index, indicating a high intensity of intraregional trade.
Published by AKADEMIYA2063 and the International Food Policy Research Institute (IFPRI) at the 13th Africa Food Systems Forum (AGRF), the 2023 AATM calls for concerted regional- and continental-level action toward sustainable trade flows and more environment-friendly trade policies. The report has also delved into the negative impacts of the Russia-Ukraine war on fertilizers and food trade and recommends action to lessen the effects of the shocks on African countries and consumers.
“The 2023 AATM analyzes opportunities to “deepen” trade agreements to increase intra-African trade while prioritizing import diversification by tapping into the continent’s natural endowments and the deployment of new and greener technologies to lessen the impact of global shocks like the Ukraine crisis. With the African Continental Free Trade Area (AfCFTA) agreement underway, there will be added value in policy reforms to streamline and harmonize agriculture-relevant frameworks toward increased food security and a larger agrifood global market share for Africa,” said Executive Chairperson of AKADEMIYA2063, Dr Ousmane Badiane.
EAC standards national agencies agree on new measures for smooth trade (The Independent Uganda)
The East African Community partner states have through their standards regulators agreed on 11 measures aimed at improving the standard of food products on the market. The move is also aimed at ensuring the protection of local consumers against food-borne diseases and a smooth flow of trade within the region.
For years, the EAC has been debating the need for the harmonisation of product standards but a concrete outcome is yet to be realised. This in turn continues to play as an advantage for individual states to restrict the flow of products from one to another. Presiding over the high-level regional meeting for policy and decision makers on Food Safety and Codex activities in the EAC was Minister for Health Jane Ruth Aceng.
The meeting, hosted by the Uganda National Bureau of Standards (UNBS) in Entebbe also adopted four policy briefs that provide recommendations on mitigating the impact of current Food Safety issues of interest in the region. They recommended improved government engagement in regional and international standard-setting activities to contribute effectively to the development of food safety standards and increased investment in Food Safety and Codex, including capacity building for value chain actors, to manage risks and ensure compliance with food standards.
The Minister of Trade, Industry and Cooperatives, Francis Mwebesa pledged government commitment to investing in quality standards and infrastructure like food safety laboratories to ensure accessibility and availability of safe food in Uganda and exports to the region.
More seven years of waiting: Is EAC stuck on realising single currency? (Monitor)
In only four months, the East Africa Community (EAC) would be adopting a single monetary union. However, this won’t be the case. Beginning next year, enforcement of the EAC Monetary Union, according to timelines, would have been on the agenda after it was adopted in accordance with the EAC Treaty and signed on November 31, 2013. However, the plan to have the single currency in 2024 has since collapsed with the EAC Council of Ministers pushing it further to 2031.
The delay, according to the 43rd meeting of the EAC Council of Ministers was informed by the presumption that it would be too soon to attain all necessary requirements. Experts interviewed for this article say the monetary union is an important stage in the EAC integration because it allows partner states to progressively converge their currencies into a single unit. Experts also believe there are overlapping fears of loss of employment resulting from labour mobility and competition, land grabbing and overlapping regional membership.
Illegal Pharmaceutical Trade Taking Over Across West Africa (OCCRP)
An extraordinarily lucrative industry, on both sides of the law, pharmaceuticals has taken West Africa’s criminal underworld by storm. Illicit medical product sales are now estimated to have eclipsed US$1 billion, more than the value of the region’s crude oil and cocaine trafficking markets combined.
The problem is not isolated within Africa alone; the World Health Organization has estimated that 10% of all medical products sold in low and middle income countries either do not meet medical standards or are falsified entirely. Nearly half of the reported counterfeits, however, were traced back to Africa, where a lack of proper infrastructure, production facilities, and transportation access has resulted in criminal enterprises seizing more than 40% of the market.
“Substandard and falsified medicines particularly affect the most vulnerable communities,” said WHO Director-General Dr. Tedros Adhanom Ghebreyesus. GI-TOC’s report estimated that 90% of African countries do not possess the necessary resources to regulate their respective pharmaceutical industries. This further opens the door for organized crime to step in to fill market demand, as well as corrupt local government and regulatory officials mandated to work with legitimate medical distributors and retailers.
Amidst the pursuit of sustainable development and energy security, Africa is undergoing transformation, with regional integration playing a pivotal role. Regional power pools, epitomizing collaborative efforts, address the continent’s energy challenges effectively. As new energy supplies are brought on the market, this year’s edition of the African Energy Week (AEW) conference – scheduled for October 16-20 in Cape Town – will explore the role regional power systems play in Africa.
Under efforts to connect markets, African countries put in place regional power pools, all of which have been instrumental in facilitating energy access and distribution. The emergence of innovative energy resources, such as gas-to-power technologies, holds promise for the continent. These innovative solutions have the potential to revolutionize the energy landscape, providing cleaner and more sustainable alternatives. However, the integration of these resources into the existing infrastructure presents its own set of challenges.
This is where the role of regional power pools becomes even more crucial. Power pools act as streams for the efficient distribution and utilization of these new energy resources. Gas-to-power technologies, for instance, require a robust infrastructure for transportation, distribution, and utilization. By leveraging the existing interconnectivity facilitated by power pools, African nations can streamline the integration of these technologies, ensuring their seamless adoption across borders.
The 2nd Africa Business and Human Rights Forum called for Inclusive Growth that respects Human Rights (African Union)
The second African Business and Human Rights Forum has concluded with a call for action from all stakeholders to promote robust, inclusive growth that respects human rights and increases prosperity Under the theme ‘For Africa, from Africa’, this year’s forum held from 5 to 7 September 2023,for people across Africa.
At the opening of the Forum, on behalf of AU PAPS Commissioner Bankole Adeoye, Mme Patience Chiradza, Director of the Governance and Conflict Prevention Directorate of AU PAPS, expressed the need to adopt the AU policy on business and human rights to promote coherence at the national and regional levels. “This forum is the Testament to our collective resolve, shared vision and unbreakable commitment to fostering responsible business conduct in the continent bustling with potential,” she stressed.
At the closing session, representatives of different stakeholder groups expressed commitments moving forward, indicating a strong willingness and need for greater collaboration and coordination among different countries, regions, and sectors to continue the push for greater corporate accountability and to accelerate momentum in business and human rights across Africa.
G20: positive signals on the integration of the African Union (Africanews)
The African Union (AU) seems well on its way to becoming a permanent member of the G20, several officials suggested Friday, on the eve of a summit of this organization bringing together the largest developed and emerging economies on the planet.
Indian Prime Minister Narendra Modi, whose country holds the presidency of the G20 this year and is hosting the heads of state and government this weekend, has shown in recent days his desire to expand this group with “ inclusion of the African Union as a permanent member. A senior official at the Indian Ministry of Foreign Affairs, Vinay Kwatra, said he expected a decision on Saturday morning at the summit. However, it is still possible that a G20 member vetoes.
Green trade will be the focus of this year’s WTO Public Forum. Here’s everything you need to know (The European Sting)
“The future of trade is green,” says World Trade Organization (WTO) Director-General: Ngozi Okonjo-Iweala. “Trade can support national and international efforts to keep the ambition of limiting global warming to 1.5°C alive.”
The specific ways in which trade can contribute to a greener and more sustainable future will be the focus of the WTO’s Public Forum on 12-15 September. Taking place at the WTO’s headquarters in Geneva, Switzerland, the Public Forum will feature around 90 interactive sessions, with topics including The Route to Transport Decarbonization, Green Energy Investments in Africa and Promoting Smallholders’ Inclusion in the Advancement of Green Trade.
Some of the green trade highlights of this year to be discussed during the Forum include supply chains – the social dimension; green subsidy race; zero-emission cargo ships; FDI and climate goals; and trade buzzwords: friendshoring, nearshoring, reshoring and offshoring.
MSMEs, GVCs, and digitisation: Outcomes from the G20 trade and investment ministerial (ORF)
The G20 Trade and Investment Ministers Meeting (TIMM) concluded in Jaipur on 25 August 2023. The pdf Outcome document (839 KB) from the Ministers meeting highlighted key areas of cooperation including, Trade for Growth and Prosperity, WTO Reform, and Logistics for Trade. Most notably, the document highlighted five deliverables, namely, the G20 Generic Mapping Framework for Global Value Chains (GVCs), the Jaipur Call for Action for enhancing access to information for Micro Small and Medium Enterprises (MSMEs), the High-Level Principles on digitalisation of trade documents, the development of a Presidency’s Compendium of best practices on Mutual Recognition Agreements (MRAs) for Professional Services, and the suggestion to hold a G20 Standards Dialogue in 2023.
In a post-COVID world that has witnessed critical supply chain disruption, the G20 Generic Mapping Framework for GVCs proposes coordination and preparedness to limit future disruption of value chains. It seeks to identify vulnerabilities and build more resilient value chains by proposing high level principles including analysis, collaboration, coordination, preparedness, inclusion, and sustainability. The framework also lays emphasis on increased participation and greater value generation by Least Developed Countries (LDCs) in GVCs.
While this framework remains voluntary and non-binding, it lays down the guiding principles for a coordinated effort to create more resilient value chains. In October 2021, supply chain turmoil was identified as the “greatest threat“ to growth for the company and the country’s economy by corporate CEOs. This threat was considered greater than geopolitical instability, the pandemic, and labour shortages.
Quick links
Africa refines its demands for the climate: financing, debt and taxes
Officials say Africa, CARICOM need to work together more
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Africa Climate Summit
Outcome document
Africa Climate Summit ends with call for action and pledge of $23bn in investment (Daily Maverick)
The inaugural Africa Climate Summit concluded on Wednesday with the adoption of the Nairobi Declaration, a document that highlighted Africa’s vulnerability to the climate crisis and called for more ambitious and progressive action from the developed world. Leaders of nations and their governments adopted the declaration, which called on the international community to assist Africa through investment in its decarbonisation agenda.
In addition to the declaration, the summit secured $23-billion in investment from various stakeholders. The funds will go towards “green growth, mitigation and adaptation” across Africa. The commitments included a $4.5-billion initiative from the UAE’s COP28 president towards 15GW of clean energy in Africa by 2030.
The declaration calls on countries to “invite development partners from both the Global South and North to align and coordinate their technical and financial resources directed toward Africa to promote sustainable utilisation of Africa’s natural assets for the continent’s progression toward low carbon development, and contributing to global decarbonisation”.
Africa Climate Summit fails to deliver on African solutions for a clean energy future (Greenpeace Africa)
The African Union released The African Leaders Nairobi Declaration on Climate Change and Call to Action on the last day of the Africa Climate Summit. This week, 17 Heads of State, Ministers and Members of Parliament came together to discuss the nuanced issues of climate change, climate change finance and the future of Africa’s energy system.
Alongside this summit, 500 African Civil Society Organisations (Africa People’s Climate Assembly) organized the Real Africa Climate Summit to highlight the disregard of the interests and voices of the African people and to provide an alternative space to share experiences and provide solutions for real climate action.
During the summit, the overarching sentiment has been that Africa has to become a hub for clean energy and a leader in low-carbon economy-based development. However, civil society has been concerned about the agenda on false solutions such as carbon markets, carbon credits and the use of technology as a viable alternative to phasing out harmful fossil fuels. These concepts are led by Global North interests and are being marketed as African priorities when in reality they will embolden wealthy nations and large corporations to continue polluting the Africa.
As a response to the agenda that did not represent the people’s interest, civil society actors organised a People’s March and Assembly and launched a People’s Declaration to counter the official Declaration of the Summit.
Related: Natural gas is key to Africa’s industrialisation process and to ending the region’s massive energy poverty (Namibia Economist)
Africa’s vast natural gas reserves are key to bringing energy to Africa’s poorest countries, to a solid industrialisation process throughout the region, and significant poverty reduction.
The region is home to 33 of the world’s 46 least-developed countries (LDCs) with an average income per head of less than $1,018 a year. The continent’s poorest countries must expand at 6-7% a year if poverty is to be reduced in a big way and if the life chances of hundreds of millions of people are to be improved. To achieve this goal, these countries require abundant and cheap energy. Luckily, for many African states, the answer lies on their doorstep — natural gas. Gas has remained a niche fuel in sub-Saharan Africa — contributing only 5% of the total energy mix against a global average of 20-25% — but its potential is enormous.
A new vision for Africa is required — a crisscrossing network of natural gas pipelines that brings energy to all corners of the region. The continent’s contribution to global greenhouse gas emissions is tiny and will only become slightly bigger if the region’s natural gas reserves are exploited. There is also a massive opportunity to wean poor Africans away from the use of biomass fuel and to help protect the region’s forests through the rollout of small, liquified petroleum gas (LPG) stoves. Climate change is an issue in Africa but poverty reduction is a bigger one. Poverty is the biggest killer in Africa today.
How SA’s trade relations with China are strengthening (Bizcommunity)
Trade between China and South Africa is set to grow further after several announcements on trade were made at the Brics summit, held in South Africa in August 2023. At the summit, the countries agreed to narrow the trade deficit by increasing access to Chinese markets for South African products.
In this regard, China has recently begun importing South African beef after a block on the product (due to foot and mouth disease) was lifted. The two countries also agreed to allow avocados to be exported from South Africa to China. China also announced at the summit that it would donate energy equipment worth around R167m ($8.97m) and a grant valued at around R500m ($26.9m) to South Africa to assist with its energy crisis, although no deadlines were given.
Kenya horticulture exports rebound on stronger euro (The East African)
Kenya’s earnings from horticultural exports for the half-year period through June recovered from a double-digit fall in the prior year amid a strengthening euro and moderating inflationary pressures, official data shows.
Sales from horticultural exports amounted to Ksh69.48 billion ($476.1 million) in the review period, according to data collated by the Central Bank of Kenya (CBK), a modest 7.16 percent rise from Ksh64.84 billion ($444.3 million) in a similar period last year.
The increased earnings came at a time when the euro appreciated 16.54 percent against the shilling between January and June, boosting revenue for Kenyan producers who largely earn in the eurozone currency. About 70 percent of Kenya’s horticulture exports are paid in euros, according to industry estimates, while nearly a fifth of the consignments are paid in the British pound.
Mobile money now at 70% of Kenya’s GDP – report (The Star)
Mobile money transactions in Kenya has hit 68 percent of GDP as remittances continue to drive growth, according to data company Global Voice Group (GVC). It is estimated that Kenyans make an average of Sh21.7 billion worth of mobile money transactions, highlighting the pivotal role mobile money plays in the economy.
Data from the Kenya National Bureau of Statistics for the year 2022 shows that the overall value of mobile money transactions reached an astounding Sh7.91 trillion, marking a 15 percent surge compared to the figures reported in 2021.Increasing use of mobile money has sparked competition between mobile money wallets and commercial banks, as Kenyans gradually abandon cash-based transactions, which remain dominant, in favour of digitally enabled alternatives, particularly mobile money.
A paper titled “Data-Driven Transparency and Compliance in the Digital Financial Ecosystem in Africa”, by GVC shows that mobile money and remittances will continue to dominate Africa’s economic development if supported with tools to boost data-driven transparency and compliance.
AfCFTA’s success hinges on industrialisation – expert (The Business & Financial Times)
The African Continental Free Trade Area’s (AfCFTA) success hinges on the continent’s ability to embrace industrialisation and focus on boosting productive capabilities, Global Chair of Brazil, Russia, India, China and South Africa (BRICS) Business Council, Busi Mabuza, has reiterated. Equally important, she stressed, is the need for collaboration and cooperation to unlock the economic potential of respective nations. Also, embracing partnerships and alliances can create new avenues for investment and mutual growth, she said.
“We cannot afford to fail in unlocking the opportunity of industrialising the African continent. It is important that we move away from extractive relationships that the continent had in the past to where our partners come and help us industrialise... To make it a reality, we need a regional value chain; we need infrastructure to enable logistics, the transportation of goods and ease of providing services,” she told the B&FT in an exclusive interview. “Most especially, we need to unlock the energy opportunity in a manner that enables a sustainable future for us,” she added.
African trade agreements can boost agricultural imports and exports and curb the adverse effects of climate change by including actionable provisions, according to the latest Africa Agriculture Trade Monitor 2023. Published by AKADEMIYA2063 and the International Food Policy Research Institute (IFPRI), the 2023 AATM calls for concerted regional- and continental-level action toward sustainable trade flows and more environment-friendly trade policies. The report also delves into the negative impacts of the Russia-Ukraine war on fertilizers and food trade and recommends action to lessen the effects of the shocks on African countries and consumers.
Unveiled at this year’s Africa Food Systems Forum (AGRF) in Dar es Salaam, Tanzania, the 2023 AATM provides high-quality trade statistics using consistent indicators to monitor trends in Africa’s participation in global trade as well as the status of intra-African trade. The report finds that Africa’s regional trade agreements (RTAs) do not exert a significant impact on its agricultural trade. The analysis attributes this to “shallow” trade agreements that focus on tariff reductions only, with limited impact on the agri-food market. The research highlights opportunities to include provisions on non-tariff measures and enhance their legal enforceability to accelerate intra-African agri-food trade. The report also calls for RTAs to include climate-related provisions to boost the contribution of trade to combat the negative impacts of climate change.
Africa’s poor interest in agriculture blamed for continual food shortage (The East African)
Africa’s low-level investments in agriculture is fueling continual food shortage on the continent, in what could indicate that lack of political will, rather than weather patterns or conflict is directly at fault. Leaders and experts gathering in Dar es Salaam, the commercial capital of Tanzania, have been told this week that continued poor investments in agricultural production including use of modern technology are hurting continental ambitions to feed itself. And its rising population is not helping.
Since Monday, Africa’s top brains in food security have been discussing proper policy in agriculture at the Africa Green Revolution Forum. And they have been consistent in calling for huge investments in agriculture to ward off food insecurity caused by the prolonged droughts.
Tanzania’s Vice-President Dr Philip Mpango told the forum inadequate financing of food value chains is also still a major constraint, mainly due to high cost of borrowing for the agriculture sector. Additionally, women and youth tend to be the most financially excluded segments of the population. The looming food deficit, coupled with rising import bills and a wide range of nutritional challenges, undermine regional output growth and the continent’s drive towards Agenda 2063.
Advancing a developed African Fisheries and Aquaculture (AU-IBAR)
The second meeting of the revised African Fisheries Reform Mechanism (AFRM), Think Tank Executive Committee (TTEC) is currently underway in Naivasha, Kenya. The event organized by the African Union Interafrican Bureau for Animal Resources (AU-IBAR) in collaboration with AUDA-NEPAD seeks to review and enrich position papers and knowledge products that support sustainable fisheries and aquaculture across the African continent.
AU-IBAR conducted research on 53 AU Member States and reviewed best practices on fisheries and aquaculture. The findings provided essential insights into the challenges and opportunities facing the sector. The study revealed that many African countries currently lack fundamental institutions and management required to achieve the objectives set out in the African Union’s Policy Framework and Reform Strategy (PFRS). Long-term commitment is crucial for building human and institutional capacity and realizing PFRS outcomes. Public sector programs often have short lifespans, whereas long-term programs are required for sustained growth.
The effectiveness of governance in the fisheries and aquaculture sector, as well as the development of value chains, now significantly rely on the efficiency of regional fishery management organizations (RFMOs), agreements within Regional Economic Communities (RECs), and the implementation of certification schemes. A comprehensive understanding of existing value chains, particularly in rapidly growing aquaculture sectors, is essential for designing effective interventions. Collaboration between strong governance institutions, including national governments, regional fisheries bodies, and non-state actors, is pivotal for building robust fishery and aquaculture value chains.
Technology can boost agric in Africa – Bagbin (The Business & Financial Times)
The Speaker of Parliament, Alban Sumana Kingsford Bagbin, has called on African governments to focus on innovation and technology in farming if Africa is to attain its potential as the world’s food basket. He was speaking at the Convention and 30th anniversary of the Council of Ewe Associations of North America (CEANA) in Atlanta, Georgia, under the theme ‘Empowering our youth toward innovative entrepreneurship in transformational agriculture’.
The Speaker said technologies such as GPS, sensors, drones and data analytics must be deployed in agriculture to optimise resource use, monitor crop health and improve yields. It will also enable the youth in agriculture to make informed decisions based on reliable data, reduce waste and increase efficiency.
“If governments direct resources into modernising agriculture and infuse technology into farm practices, more youth will opt for the sector. This will address the challenges of feeding a global population sustainably, create economic opportunities for rural communities and transform how we produce, distribute and consume food,” he said.
Turkish President Recep Tayyip Erdogan’s meeting with his Russian counterpart Vladimir Putin on Monday failed to yield a breakthrough in the revival of the Black Sea Grain Initiative, according to experts. Following the meeting, Erdogan expressed optimism about the initiative, but concrete evidence of a breakthrough remains elusive. Meanwhile, Putin reiterated accusations against the West for failing to meet its obligations under the agreement.
Analysts are concerned that the absence of the grain deal will threaten food security in low-income nations in the Middle East and Africa, urging the West to offer Russia the necessary guarantees to maintain a crucial food supply chain. The failure to resurrect the Black Sea grain deal could have far-reaching consequences on low-income countries which heavily rely on Ukrainian and Russian grain exports.
Before its suspension, the original deal facilitated the export of nearly 33 million tonnes of grain from Ukraine to global markets, benefiting developing countries, particularly in the Middle East and Africa. Russia’s withdrawal from the agreement in July had already impacted global grain prices, raising concerns about food security and a potential worldwide food crisis.
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Facelift for land ports of entry (SAnews)
Home Affairs Minister, Dr Aaron Motsoaledi, says officials are committed to making the country’s border posts safer, less porous and more efficient in the facilitation and easing of trade, as well as the legitimate movement of people. “The South African government is committed to putting in the latest infrastructure and relevant technology in its efforts to modernise and upgrade our ports to be on par with the current global best practices on border management,” Motsoaledi said.
Addressing media in Pretoria on Wednesday, Motsoaledi said the main objective of upgrading border posts is to make it easier for law-abiding people and companies to easily enter and exit South Africa through the borders, while the illicit movement of persons and goods is nipped in the bud.
“Since the advent of democracy, there has been an exponential increase in the number of people moving between South Africa and the countries in the region. The volume of regional and international trade has similarly increased. “As a result, our land ports of entry are very congested and that continues to stifle trade, instead of enabling it. If you want to understand what we are talking about, just take a visit to the Lebombo Border Post between SA and Mozambique, where you will see trucks lining up for kilometres, bumper to bumper, for hours on end, on the N4 Corridor,” Motsoaledi said.
Zimbabwe Beitbridge border post project a flagship PPP (Engineering News)
South African infrastructure development and construction materials supply group Raubex CEO Felicia Msiza enthuses that the project Raubex completed for the Zimbabwean government’s road authority Zimborders at the Beitbridge border post last year is a testament to Raubex’s 49 years of experience. She hopes this project will be the first of many public-private partnerships (PPPs) for the company, as the experience gained on this project will position the company well to contribute to PPPs in the South African market going forward.
She also emphasises the importance of the meticulous planning and stakeholder engagement that was required to complete the $172-million contract. The overall scope of the project was to build a modern border post that facilitates trade, tourism and enhances the traveller’s border crossing experience through the “gateway of Africa”.
South Africa to Face Pressure From Trade Partners to Ditch Coal (Daily Maverick)
“We doing this for ourselves because it is absolutely the right way to go” said Vukile Davidson, National Treasury’s chief director of financial markets and stability. “But we are also going to increasingly have to deal with external pressure.” The European Union plans a levy on certain carbon-intensive imports, though South Africa has argued the so-called carbon border adjustment mechanism may break World Trade Organization rules.
South Africa, which gets 80% of its electricity from coal, is trying to increase its supply of renewable energy to reduce greenhouse gas emissions and its reliance on Eskom Holdings SOC Ltd. The country is suffering from its worst power outages on record because the state-owned utility’s poorly-maintained and aging power stations can’t meet demand.
Part of preparing for the country’s energy transition is legislation to provide regulatory certainty necessary to draw capital from the private sector.
Steel industry is central to South Africa’s industrialisation path says government (Metalworking News)
“Steel is one of the most important materials in the world. It is present in most aspects of the economy, from transportation and other infrastructure to more simple aspects like containers. Steel is used in the production of colossal structures, as well as small components for precision instruments,” said Trade, Industry and Competition Deputy Minister Fikile Majola in an address at the South African Iron and Steel Institute’s Southern African Steel Summit, held in Johannesburg recently.
“South Africa is endowed with one of the most diverse and valuable mineral resource portfolios globally. These range from precious metals, ferrous and non-ferrous metals and other industrial metals. At the peak of the industry’s performance in 2010, South Africa accounted for 0.59% of global steel production. Due to the decline, our country accounts for just 0.23% of global steel output and is ranked 34th in the world.”
“We have a massive challenge on our hands and we need to work tirelessly to regain our position as one of the top producers of steel globally. South Africa’s steel value-chain, with backward and forward linkages, is critical in building a sustainable economy that is underpinned by multiple sectors that are dependent on the steel industry. The sectors that should support our quest to build a sustainable economy include construction, mining, automotive, energy, packaging and transport.”
NamRA clarifies import procedures for goods from non-SACU Member States (Windhoek Observer)
Importing goods from non-Southern African Customs Union (SACU) member states into Namibia involves a series of procedures and regulations governed by the Customs and Excise Act, 1998 (Act No. 20 of 1998). In a notice, the Namibian Revenue Agency said regulations aim to ensure transparency, tax compliance, and adherence to health and environmental standards. Navigating these importation procedures is crucial for ensuring compliance with Namibia’s customs regulations and fostering trade while protecting public health and the environment. Importers and travellers are encouraged to familiarize themselves with these regulations to facilitate smooth and lawful importation processes.
In accordance with the Customs and Excise Act (section 40(2)(e)), commercial goods valued at N$500 or more that attract duties as per Schedule 1 must be paid upon importation into SACU. For example, when importing dry wild berries (eembe) or bird plum (scientific name: berchemia discolor) under HS code 0813.40.00 for commercial purposes from outside SACU, the importer is subject to a 10 percent general rate of customs duty. Informal traders, however, must pay the normal rate of 10 percent customs duties and 16.5% value-added tax (VAT) or opt for a 20% flat rate based on the imported goods’ value.
East African govts to fast track single currency (New Vision)
East African Community (EAC) governments have been asked to fast-track the implementation of a single currency to facilitate trade in the region. According to the East African Budget Network (EABN), the East African countries have not done enough to deliver on the pending actions of the East African monetary union roadmap for an East African single currency.
“We find that countries are still lagging behind. All the targets we were supposed to have by 2024 have now been pushed to 2031. We believe the way we do work, we might not even achieve that. There should be some different strategy that the countries need to do to work so hard to achieve the targets that we want,” Julius Mukunda, he executive director Civil Society Budget advocacy Group (CSBAG), said. He made the remarks over the weekend during the East African Monetary Union Civil Society Summit held in Kampala.
The plan to have a single East African currency in 2024 collapsed in 2019 after the EAC council of ministers, the central decision-making and governing organ of the EAC, resolved the deadline was not attainable, sending member countries back to the drawing board. This extended the deadline for attaining a single currency regime to 2031 to eliminate transaction costs of exchanging currencies and remove volatility in cross-border trading activities.
Isaka cargo volume surges 30pc in four months (Tanzania Daily News)
Isaka Dry Port has registered 30 per cent cargo volume increase in the last four months thanks to the Uganda-Tanzania crude oil pipeline project. The dry port in Kahama, Shinyanga saw the cargo volume rise to 8,000 metric tonnes per month registered recently from 6,000 tonnes in April.
The Dry Port Officer, Mr Abel Mshang’a, said at the just ended 2023 Mwanza East Africa Trade Fair (MEATF) exhibitions that oil pipeline was a blessing for the port and the volume is projected to increase further. “We are also in talks with more new clients—local and international,” Mr Mshang’a told the `Daily News’ on Monday.
The port is eyeing a transport deal of some 10,000 tonnes of fertiliser to Burundi and also another firm that will bring in trench digging machines for the oil pipeline. The East African Crude Oil Pipeline EACOP runs 1,443km from Kabaale, Hoima district in Uganda to the Chongoleani Peninsula near Tanga Port in Tanzania. Eighty per cent of the pipeline is in Tanzania. It is a buried thermally insulated 24 inches pipeline along with six pumping stations—two in Uganda and four in Tanzania—ending at Tanga with a Terminal and Jetty
“Isaka is expecting further increase of the cargo volume to at least 10, 000 tonnes, on a monthly basis, when the two new clients start using the port,” he said.
Stakeholders lament complex export levy, documentation (The Guardian Nigeria)
Stakeholders have lamented what they described as extremely complex export procedures and documentation processes by numerous government agencies in Lagos State. This is even as they urged the Federal Government to scrap export levy collections on agricultural products and collection of registration charges on Domestic Export Warehouses (DEWs).
The former Chairman of the Export Group of the Nigerian Association of Chamber of Commerce, Industries, Mines and Agriculture (NACCIMA), Kola Awe, said there is an imposition of export levy of $5 for five different cargoes, including Cocoa, Ginger, Cotton and Rubber, while every other one is $15. Awe also noted that exporters are avoiding taking their goods to the established government export warehouses because of the export levies. He said the cost of registering at the export warehouses is expensive while calling on the government to make it lower so that exporters can be encouraged to use it.
“Our ports are not yet paperless. When it comes to the examination side, the same number of agencies are there. It impedes the whole essence of global best practices and competitiveness, the processes are extremely too much,” he stated. “The Standard Operating Procedures (SOP) on export says that all exports must originate from export warehouses, but today, 80 per cent of exports do not originate from these warehouses,” he noted. Awe further highlighted the need for the government to deploy technology into the port process. He said the country must implement a single window platform for trade documentation that will reduce time and cost for cross-border trade.
Africa Climate Summit concludes with ‘Nairobi declaration’ (DW)
The landmark Africa Climate Summit in Nairobi, Kenya, came to a close on Wednesday with leaders adopting a joint “Nairobi declaration” to highlight the continent’s potential as a green powerhouse and encourage other world leaders to support new global carbon taxes. “This declaration will serve as a basis for Africa’s common position in the global climate change process,” read the final document. “No country should ever have to choose between development aspirations and climate action.”
Backed by the leaders of the continent of 1.3 billion people — a population set to double by 2050 — the declaration will form the basis of Africa’s negotiating position at November’s COP28 summit. “Decarbonizing the global economy is also an opportunity to contribute to equality and shared prosperity,” it said.
Agreed upon unanimously by leaders at the three-day summit, the declaration calls on the world’s biggest emitters of greenhouse gases and its richest countries to keep their promises — noting in particular an unfilled pledge of $100 billion in annual climate finance to developing nations, made 14 years ago — and for today’s world leaders to rally behind a global carbon tax on fossil fuels, aviation and maritime transport.
During the summit, governments and private investors committed billions of dollars to green initiatives, including a $4.5 billion (roughly €4.2 billion) pledge by November’s COP28 hosts the United Arab Emirates (UAE). But the declaration warned that unlocking green growth across the continent “on a scale that can contribute meaningfully to decarbonization of the global economy” required a massive increase in funding.
World leaders on the second day of the inaugural Africa Climate Summit in the Kenyan capital Nairobi have pledged their support to position the continent at the epicentre of the fight against climate change, urging greater consideration for Africa’s needs. Kenya’s President William Ruto said Africa’s youthfulness was “precisely the attribute that inspired African leaders to imagine a future where Africa steps onto the stage as an economic and industrial power, an effective and positive actor in the global arena”.
African Development Bank President Akinwumi Adesina has announced a new $1 billion fund to accelerate climate financing for Africa’s youth businesses. Adesina made the $1 billion announcement during a High-Level Intergenerational Dialogue: Africa Driving Climate Adaptation Solutions and Jobs, held at the Wangari Maathai Institute of Peace and Environment on the outskirts of Nairobi.
The AfCFTA, boosting regional integration through trade (UNECA)
The African Continental Free Trade Area (AfCFTA) is a development ticket that will boost intra-Africa trade and help reduce poverty across the continent when fully implemented, says Stephen Karingi, Director, Regional Integration and Trade Division of the Economic Commission for Africa. In a lecture at the Nordic African Institute on “Africa’s Trade Potential – An Interactive and Evidence-based “Deep Dive”, Mr. Karingi highlighted that the AfCFTA is a major driver of the African integration agenda through its promotion of trade in Africa.
While the continent had a low proportion in global trade, Africa’s trade composition was drawing more attention, especially heightened interest in sustainable development, climate change, and production for the future, Mr. Karingi said. “Africa has historically exported unprocessed and raw commodities with little value added, said Mr. Karingi noted that in 2022, primary commodities represented over 90% of goods exports in 25 African countries.
Africa has recorded a reduction in poverty. In 2010, 40% of African households lived on less than USD $1.90 per day, 13 years later that rate was below 34%. Besides, there has been a rise in incomes, development of skills and Africa’s agency globally was growing. But despite these positive developments, Africa has faced unique challenges stemming from the Covid-19 pandemic which highlighted its vulnerability due to its almost total dependence on the rest of the world for medical assistance. Furthermore, the global supply chain constraints of 2021 helped fuel inflation and the current Russia and Ukraine war pushed up the price of staple foods, reduced available quantities, and worsened an existing hunger crisis in parts of the continent.
Trade Finance Gap rises to $2.5 trillion USD - five key takeaways from ADB’s latest report on trade finance gaps, growth, and jobs (Trade Finance Global)
In its largest single-period increase since its inception, the Asian Development Bank’s (ADB) latest Trade Finance Gaps, Growth, and Jobs Survey indicates that the trade finance gap in 2022 rose to $2.5 trillion, up from $1.7 in 2020 and $1.5 trillion in 2018. The 2023 ADB report provides a comprehensive analysis of the current state of global trade finance, offering insights into the challenges and opportunities that lie ahead, particularly in the wake of a global pandemic that has disrupted trade flows and financial systems.
This latest report takes a global view, emphasising that the trade finance gap is a worldwide issue, suggesting that international cooperation is key to resolving these challenges, a point that resonates more strongly in the current geopolitical climate. It underscores the need for international cooperation to address the global trade finance gap and calls for a concerted effort from all stakeholders, including governments, financial institutions, and international organisations, to find sustainable solutions.
New WTO report underscores role of trade in meeting SDGs, bolstering economic recovery (WTO)
The WTO report analyses the trade performance of developing economies in 2022 and emphasizes the contribution of trade to achieving the five SDGs reviewed at the 2023 Forum:
On SDG 6, the report notes the essential role played by trade in services in supplying water for consumption and for the treatment of wastewater. It also underscores the importance of public-private partnerships to help developing economies improve water supply and sanitation services. The report also examines “indirect trade in water”, the trading of water-intensive products, particularly in the agricultural sector.
On SDG 7, the report emphasizes the role of international trade cooperation in facilitating trade and investment in affordable and clean energy products and services. Stepping up regional and multilateral cooperation will help address the trade barriers to adopting and diffusing low carbon and energy efficient technologies.
On SDG 9, the report stresses that industry innovation can be promoted through the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights, the WTO’s plurilateral Agreement on Government Procurement and initiatives such as Aid for Trade. These agreements and initiatives can help governments adopt and implement policies aimed at
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