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Agro-processing Master Plan will help SA sow AfCFTA benefits (IOL)
Targeted Spatial Agricultural development in South Africa: operationalising the Agriculture and Agroprocessing Master Plan and capitalising on the Africa Continental Free Trade Agreement.
South Africa is land characterised by a dichotomous and dualistic economy and the contrast cannot be more striking than in the agricultural sector.
Recently, South Africa has undertaken significant steps in developing a coherent inclusive strategy for agriculture in the country. The sector, led by the Minister of Agriculture, Land Reform and Rural Development has developed the Agriculture and Agroprocessing Master Plan (AAMP), which is just short of a White Paper for agriculture.
The AAMP is a huge step in the right direction in terms of supporting an inclusive growth of the agricultural sector and it follows a value chain approach. This value chain approach enables the isolation and targeting of individual value chains while not losing sight of their interconnectedness within the sector and the broader economy.
Kenya’s export development levy sparks trade diversion fears across East Africa (Business Insider Africa)
The Kenyan government’s intention to impose an Export Development and Promotion Levy (EIPL) on imports, which might result in Kenya losing trade with its EAC allies, has been contested by the Kenya Association of Manufacturers (KAM), the Federation of Kenya Employers, and tax consulting businesses.
The EIPL on all items brought into the nation for domestic use has raised under the new law from 10% to 17.50% of the customs value. However, products with EAC partner state provenance that adhere to the Rules of provenance are exempt.
“The Act has imposed a 10 percent levy under the Export Levy while the rest of East Africa is at zero percent,” the Kenya Association of Manufacturers relayed via a statement. “The immediate impact of that is that the levy will create trade diversion in favor of neighboring countries. It will also promote investment in Comesa countries,” the statement adds.
Envoy assures traders of improved ports efficiency (Tanzania Daily News)
Tanzania has assured the business community in Zambia and SADC countries of increased efficiency in its ports following huge infrastructure improvements in the country’s gateways.
Tanzania’s High Commissioner to Zambia, Lieutenant General Mathew Mkingule said recently during the Agricultural and Commercial Show in Zambia that the improved port infrastructures especially at the Dar port are facilitating easy movement of imports and exports in the region.
“When we talk about the Africa Continental Free Trade Area, we cannot reach there if we don’t start at a regional level, it is high time that African countries traded among themselves,” he said, adding that there is already big trade between many African countries.
Why Nigeria’s export cargo face rejection in foreign markets (Businessday NG)
Export cargo leaving Nigeria, Africa’s most populous nation, is largely rejected in the international markets especially in Europe and America due to quality concerns. According to the National Agency for Food Drugs Administration and Control (NAFDAC), the Nigerian economy and exporters are recording huge financial losses as over 70 percent of the food items and agricultural products exported out of Nigeria are rejected by potential buyers.
Mojisola Adeyeye, director general of NAFDAC blamed the poor export trade facilitation at the nation’s airport and seaport for the challenges faced by regulated products that are leaving the country.
BusinessDay findings show that it takes export containers over one month to have access to the seaport and make their way out of the country. This delay, caused largely by the bottlenecks experienced by truckers lifting export containers from the exporters’ warehouses to the port, not only eats into the time the products are supposed to have left the shores of the country to its destination port but also compromises the quality of the products.
NACCIMA warns against lowering issuance of certificates of origin standard (The Guardian Nigeria)
The Nigerian Association Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has warned that deviating from the globally-acceptable standards in the issuance of certificates of origin for goods being traded internationally portends danger for Nigerian businesses and the economy.
The National President of NACCIMA, Dele Kelvin Oye, who spoke during a courtesy call on the Acting Comptroller General of Nigeria Customs Service (NCS), Bashir Adewale Adeniyi, also warned that such a move could deprive the country of its ability to compete and attract foreign direct investments (FDI).
He said NACCIMA is globally recognised as the representative of the business community and plays an important role in the administration of the certificate of origin system issuance and providing other services to businesses engaged in international trade.
Oye said attempts to take over the globally-acceptable duty imposed on the chambers of commerce under the African Continental Free Trade Agreement (AfCFTA) could be disastrous for businesses. The NACCIMA boss, however, appreciated that government by treaty can change the rules for issuing the certificates, noting that such deviation makes the certificates issued under such policies unacceptable, thereby depriving Nigeria of the ability to compete and attract foreign direct investment.
EAC private sector seeks to streamline business under Africa free trade area (Monitor)
East African Community (EAC) private sector players have said classification of which goods need protection and which do not need under the African Continental Free Trade Area is an important step the government must expedite.
Speaking on the sidelines of a two-day consultative meeting in Kampala yesterday, Mr Simon Kaheru, the East African Business Council Uganda Chapter chairman, said engaging the private ahead of the EAC partner states meeting in Bujumbura, Burundi next week, is one of the ways through which the region will form a voice in identifying which kind of products need to be put under the sensitive products category.
“It’s fantastic that the private sector is sitting a head of governments to see where we can seek protection and where we can seek promotion of trade with the rest of Africa,” he said, noting that partner states must agree, which has prevented the region from benefiting from the AfCFTA two years since signing of the treaty.
African coffee nations push for intra continental trade of coffee products (Xinhua)
Delegates from Africa’s 25 coffee-producing countries are meeting in the Ugandan capital of Kampala with the aim of influencing the African Union to make coffee a priority crop on the continent that will pull millions of people out of poverty. Experts argue that once the continent’s political leadership understands the power of coffee in transforming economies, it will bolster the continent’s efforts to internally trade the “strategic commodity” but also speak with a united force on the international market.
The meeting, dubbed the 2nd G-25 Heads of State Africa Coffee Summit, is convening from Aug. 7 to Aug. 10 under the theme “Transforming the African Coffee Sector through Value Addition,” which is in line with the theme of the 2023 African Union agenda that focuses on accelerating the implementation of the African Continental Free Trade Area (AfCFTA).
Ugandan President Yoweri Museveni said at the meeting that Africa is losing a lot of income to the international market that continues to prefer taking coffee in its raw form. He told the delegates that out of the 460-billion-U.S.-dollar global coffee value, the coffee-producing countries only take 25 billion dollars and Africa gets only 2.4 billion dollars.
Ethiopian President Sahle-Work Zewde urged international coffee trading companies to support coffee-producing African farmers technically and financially in the value-addition process.
Zenith Bank inks MoU with AfCFTA to showcase African products via smart trade portal (Technext)
Nigeria’s Zenith Bank has announced a signed Memorandum of Understanding(MoU) of $1 million with the African Continental Free Trade Area (AfCFTA). The deal signed by the Group CEO of Zenith Bank, Dr. Ebenezer Onyeagwu, and the Secretary-General of the AfCFTA, Wamkele Mene at the ongoing 2023 Zenith Bank International Trade Seminar, is to develop a trade portal in Africa.
Speaking at the event, the Group Managing Director talked about the need to bolster Africa’s wealth. He established that one of the many ways to channel this vision into reality is to create a single African trade portal. According to him, the portal will significantly facilitate trade among African countries, and demonstrate the bank’s commitment as a bank to digitization in African countries.
According to the Zenith Bank Group CEO, Zenith will develop the smart AfCFTA portal which will serve as a straight portal. The purpose of this portal is to showcase African products and services as well as the locations they can be found.
“Through the development of this portal, one of the capabilities we are going to build in there is that you can see it in every part of Africa and market your products and services. You can see it in every part of Africa and identify whatever products and services you require that are in Africa”, he explained.
Why African nations should collaborate to make e-cars (The Star)
South Africa and Morocco, two of Africa’s leading automotive centres, are considering building mega and giga factories in their bid to keep up with the increasing demand for electric vehicles worldwide. A growing question, however, is whether those countries can scale fast enough, on their own, to make a difference.
Meanwhile, mineral-rich countries like the Democratic Republic of Congo (DRC), Zambia, and Mozambique are also eyeing the market with big intentions of becoming significant suppliers of electric vehicle batteries.
Industry experts suggest that for these countries to effectively compete for a significant portion of the global electric vehicle market, they should establish regional value chains to reduce investment barriers and cross-border trade expenses.
According to the African Development Bank, Africa has several key global vehicle supply chain strengths. These include existing expertise in internal combustion engines, proximity to key auto markets, access to raw materials, and participation in the AfCFTA. But, the AfDB emphasises in its latest Economic brief dubbed ‘Strengthening Africa’s Role in the Battery and Electric Vehicle Value Chain,’ there is a pressing need for countries to rev up value addition of green mineral resources to unlock Africa’s real potential.
AUC and Partners Communication Experts Meet to discuss Strategic Communications for the Comprehensive Africa Agriculture Development Programme (CAADP) (The Guardian Nigeria)
The African Union Commission recently organised a meeting of communications experts from across the African Union entities and partners to discuss strategic communications for the Comprehensive Africa Agriculture Development Programme (CAADP). The gathering of communications experts focused on refining communication workplans and methods to enhance awareness and understanding of CAADP’s goals and initiatives. The experts highlighted the pressing need for improved strategies for communication and enhanced collaborative efforts to drive agricultural development across the continent.
The event, which marked the first CAADP communications experts meeting, emphasized the importance of bridging communication gaps and forming a formal working group to address these issues. Participants emphasized the need to develop targeted content and products tailored for various stakeholders and especially the small-scale farmers. The importance of capturing best practices and sharing them across the continent was highlighted.
The meeting underscored the significance of youth, women, farmers associations, and Civil Society Organizations (CSOs) and other non-state actors as important voices in agriculture who should be integral to these processes especially at the grassroots level. As the 4th Biennial Review (BR) cycle of the Malabo Declaration is underway, participants stressed the need for effective communication and visibility strategies to ensure the wide dissemination of results. With CAADP having existed for over two decades, there was a consensus that many farmers are still unclear about the program’s objectives, significance and impact.
The importance of engaging national communication experts, tailoring messages to targeted audience, and collaborating with various stakeholders was stressed throughout the discussions.
Deglobalisation will hurt Africa (Nation)
The fragmentation of world trade has culminated in the formation of rival blocs, giving impetus to an emerging deglobalisation phenomenon. At the World Chambers Congress 2023, in Geneva, the WTO director-general, Dr Ngozi Okonjo-Iweala, opined that global prosperity is at risk of being curtailed by simmering geopolitical tensions that continue to birth rival trade blocs.
Deglobalisation refers to a shift towards a less-connected world characterised by border controls. Bloc members reach a mutual agreement to eliminate barriers with a view to promoting free trade among them. But despite the immense benefits to members, it can distort the world economy as regards the specialisation of national economies. Countries prefer to trade with their fellow bloc members.
African economies would be greatly imperilled if deglobalisation escalated. A salient feature of globalisation is the reshoring of value chains that has the risk of curtailing the war against global poverty. The poorer regions will have several lost opportunities in global trade. Europe’s and the US firms, especially manufacturers, are reshoring their value chains, risking pushing more Africans into poverty.
BRICS Summit set to benefit Africa and global South (SAnews)
International Relations and Cooperation Minister, Dr Naledi Pandor, says she is confident that the upcoming BRICS Summit will strengthen the bloc’s partnership and benefit the people of South Africa, BRICS, Africa and the global South.
Pandor told the media that President Cyril Ramaphosa has confirmed South Africa’s readiness to host the upcoming BRICS Summit, which will be hosted in person for the first time since the COVID-19 pandemic.
Leading up to the summit, Pandor said the Department of Trade, Industry and Competition and the BRICS Business Council will host a BRICS Business programme from 19 to 23 August 2023. The gathering, according to the Minister, seeks to foster economic growth, promote collaboration, attract investment, and display opportunities within South Africa, Africa, and BRICS countries.
South Africa’s overall trade with its BRICS partners, Pandor said has increased by an average growth of 10% between 2017 and 2021. She told the media that the South African trade with BRICS reached R830 billion in 2022 from R487 billion in 2017. “Last year, BRICS accounted for 21% of South Africa’s global trade.”
MOC Says BRICS Reach Consensus in Recent Meeting, Major Results (teleSUR)
On Tuesday, China’s Ministry of Commerce (MOC) said that BRICS (five emerging economies - Brazil, Russia, India, China, and South Africa) ministers of trade and economy reached a consensus and achieved significant results at a recent ministerial meeting.
On Monday, during a video conference, the ministers agreed to expand cooperation in the digital economy and green development and make joint efforts to promote a stable supply chain and support micro, small, and medium-sized enterprises.
According to several reports, the ministers agreed to strengthen the multilateral trade system with the World Trade Organization (WTO) at its core and participate in the WTO reform with a constructive attitude.
Furthermore, they stressed that the policymaking related to climate change be consistent with the principle of common but differentiated responsibilities and the WTO rules. They also reached a consensus to invite non-BRICS countries to discuss the digital economy and explore cooperation with other developing countries and the least developed countries.
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South African farmers want WTO dispute declared over EU citrus rules (Engineering News)
South African citrus farmers want their government to lodge a complaint against the European Union at the World Trade Organisation over the European bloc’s citrus black spot regulations which they say threaten thousands of jobs.
The measures imposed by the EU in June 2022 require enhanced cold treatment for citrus exports due to concerns over False Codling Moth, a pest commonly found in sub-Saharan Africa, and Citrus Black Spot (CBS), a fungal disease which leaves dark spots on fruit. The EU’s plant health rules could cut South Africa’s orange exports to Europe by 20% this year, according to the Citrus Growers Association of Southern Africa (CGA).
South Africa’s citrus industry says its current pest and disease control measures are highly effective and accuses the EU of protectionism.
South African farmers are currently battling electricity and logistics challenges and increased input costs and cannot absorb the additional R2-billion annual cost for CBS risk management, Deon Joubert, the CGA’s special envoy on market access and EU matters, said in a statement. “The CGA calls on the South African government to work with the industry to put a stop to these CBS regulations and fight for South African jobs and revenue. Declaring a WTO dispute is truly a matter of urgency,” Joubert said.
Namibia: African exports reached N$4.9 billion in June (Windhoek Observer)
Namibia exported goods worth N$4.9 billion to African markets in June. At the same time, the country sourced goods from the rest of Africa worth N$4.9 billion, the Namibia Statistic Agency said. In terms of regional composition, the Southern African Customs Union (SACU) emerged as the largest export market during the month of June, contributing 38.8 percent to total exports.
The Organisation for Economic Co-operation and Development (OECD) ranked second with a market share of 23.7 percent while the European Union and the South African Development Community excluding SACU accounted for 20.7 percent and 17 percent, respectively. Common Market for Eastern and Southern Africa (COMESA) absorbed 15.8 percent of Namibia’s total exports.
On the demand side SACU maintained its position as the largest source of Namibia’s imports with a share of 47.2 percent of the total import bill followed by the OECD market with a contribution of 22.3 percent while (Brazil, Russia, India, China and South Africa (BRICS) came third in the list with a share of 14.3 percent. European Union (EU) and COMESA markets had a share of 13.6 percent and 1.0 percent, respectively.
Namibia’s trade by mode of transport revealed that in June, vast goods were exported via air transport, accounting for 40.9 percent of total exports, followed by sea transport with 34.1 percent and road transport with 25 percent. From the demand side, road transport was the most frequent mode of transport accounting for 59.6 percent of total imports followed by sea transport with 33.8 percent and Air transport with 6.6 percent.
Farmers jittery over plans to import maize from Tanzania, Uganda (Nation)
The government is faced with a difficult balancing act of increasing agricultural production and achieving food security by reducing fertiliser prices, while at the same time maintaining attractive producer prices for farmers by protecting them from losses due to low market prices caused by the influx of cheap imported produce.
While the reduction in fertiliser prices from Sh3,500 to Sh2,500 per 50kg bag will reduce production costs, farmers have expressed fears that the entry of cheap maize under the East African Community (EAC) Common Market Protocol ahead of this season’s harvest will destabilise prices and expose them to losses.
Farmers are opposed to allowing market forces of supply and demand to determine maize prices, arguing that the arrival of cheap produce will disadvantage them as they struggle to break even. “The cost of production in the other EAC member states — Tanzania and Uganda — is lower and they harvest their produce before us, allowing them to enjoy favourable market prices,” said Mr Jackson Kosgei in Moiben, Uasin Gishu County.
New AfCFTA protocols will create a level-playing field for businesses (GhanaWeb)
The Phase 2 of the AfCFTA agreement has been agreed and approved with the various protocols fashioned to promote fair trade and competition among businesses in the Free Trade Area. The agreed protocols, namely intellectual property rights (IPRs), investment and competition policy are expected to enhance competition within the free trade area for improved market efficiency, inclusive growth, and the structural transformation of the African economies, among other objectives.
Breaking the subject down to the public on the Eye on Port TV program, West African Regional Director for global research and advocacy institution, CUTS International, Appiah Kusi Adomako says the competition protocol will present tremendous benefits for not only businesses and corporations but the consuming public in Africa. He explained that it will ultimately ensure that businesses compete freely on the basis of highest possible quality of products for lowest possible price.
He said, presently a number of competition concerns exist citing examples in the maritime transport sector of Ghana. “For example a shipping company, sets up its own logistics firm in the port as well as a freight forwarding firm in a horizontal integration scheme. A problem that can arise is when they decide to give rebates to customers for using their services, driving away competition.”
UN official calls for new approaches to reap benefits of AfCFTA (Xinhua)
African nations need to adopt new approaches to realize the benefits of the African Continental Free Trade Area (AfCFTA) and accelerate the continent’s development, a UN official said Thursday. Ozonnia Ojielo, the UN resident coordinator in Rwanda, told a development policy dialogue in Kigali, Rwanda’s capital, that Africa needs to build integrated, diversified and resilient economies more than ever before.
“AfCFTA is a game-changer but translating it into reality requires preparedness and readiness supported by accompanying measures to ensure that countries make the most of this agreement. This is where we all have a role to play,” Ojielo said. “It is not about time to think outside the box. It is time to think without the box.” Ojielo highlighted a range of potential benefits of the AfCFTA, such as providing productive employment and poverty reduction, which he said are some of the urgent challenges that the continent has to address. “But without preparedness, no benefit can be realized,” he warned.
Prohibitively expensive intra-African trade major impediment to continental free trade (Namibia Economist)
The Chief Executive of the Namibian Ports Authority (Namport), Andrew Kanime stated that the Africa Continental Free Trade Area would boost intra-African trade which is currently not sustainable. Kanime made this statement during the nineteenth Dr Theo-Ben Gurirab lecture series on the Africa Continental Free Trade Area agreement (AfCFTA) held in Swakopmund on Thursday.
“The lion-share of African states trade with countries from outside the continent and this is detrimental to the growing African population,” he said. According to Kanime, a mere 15% of trade is intra-African and this is due to several trade barriers that make it difficult to trade among each other.
“It costs US$6000 to move a container from Walvis Bay to Ivory Coast, which is just around the corner. It first has to be shipped to Singapore before being transferred to Ivory Coast. However, from Walvis Bay to China it would only cost US$1400, meaning it is more than four times more expensive to trade with another African country,” said Kanime.
Ukraine grain saga: Brace up for higher food prices, USAID tells African countries (TheCable)
The United States Agency for International Development (USAID) has warned Nigeria and other African countries to prepare for higher food prices. Speaking at a media briefing on Thursday, Isobel Coleman, USAID’s deputy administrator for policy and programming, attributed the development to Russia’s recent decision to abandon the Black Sea Grain Initiative.
Coleman said the impact of the hike in food prices would be more felt in developing countries that were import-dependent, and had conventionally relied on grain imports from Ukraine. She said just in the last few weeks since pulling out of the initiative, the government of Ukraine estimated that Putin’s missiles and drone attacks have destroyed 180,000 metric tons of Ukrainian grains sitting in storage. According to her, the grain is sufficient to feed almost 12 million people for a month.
“It is very, very important to keep in mind is that countries that import grains, those grains are global commodities and they are priced globally. And taking off from the market one of the world’s largest breadbaskets – Ukraine – by doing that, Russia is increasing global food prices,” Coleman said.
China isn’t the only Asian country expanding its trade with Africa (Atlantic Council)
When it comes to Asia-Africa trade, many think of China first. But Beijing is not the only country growing ties. Take South Korea, traditionally a minor partner to the continent. In recent years, Seoul has accelerated trade, investment, and development initiatives—expanding trading volumes significantly. For African economies, this means another potential partner—and an alternative source of financing—as the continent seeks jobs for its growing population. In 2022, year-over-year growth of bilateral trade volumes was 29 percent, totaling over $20 billion.
While China has historically accounted for the largest share of trade growth between Africa and Asia, trade has also grown rapidly with other major economies in Asia. India has emerged as a particularly important partner. Since 2000, India-Africa trade has grown more than twenty-fold to over $97 billion in bilateral trading volumes, now exceeding that with the United States.
African trade patterns with these other partners are similar. As is the case for China, countries like India and South Korea mostly import raw materials (especially fuels and commodities) from Africa, while exporting more manufactured goods. But there are key differences. Unlike with China, these trade relationships with Africa are also considerably more balanced. Africa’s $47 billion trade deficit with China in 2022 (16.7 percent of total trade volume) far exceeded its $4.5 billion (4.6 percent) and $1.7 billion (9.6 percent) deficits with India and South Korea, respectively.
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Industrial policy changes needed, TIPS forum hears (Engineering News)
Academics and researchers have highlighted some of the policy changes needed within a changing global economy during economic research nonprofit institution Trade & Industrial Policy Strategies’ (TIPS’s) yearly forum.
Management consultancy firm RB Africa director Odwa Mtati told delegates that the contribution of small and medium-sized enterprises (SMEs) to manufacturing production and reindustrialisation could only be achieved if the broader economy was growing.
The contribution of manufacturing to gross domestic product (GDP) had fallen from 30% in 2011 to 11.3% in 2022, while the contribution of SMEs to total manufacturing turnover has grown from below 40% in 2008 to 53% in the fourth quarter of 2022.
Meanwhile, University of Cape Town Nelson Mandela School of Public Governance research fellow Vuyiswa Mkhabela detailed some of the changes in sourcing by clothing retailers and the impact on clothing and textile manufacturing in the country.
“Manufacturing competitiveness is not helped by trade policies unless these are paired with policies that can help manufacturers become more competitive,” she said.
However, the diversification of retailers’ supply chains not only included offshore sources, but also near-shore sources. Retailers sourced clothing from Southern African countries that had built up productive capacity to participate in the US African Growth and Opportunity Act. South African retailers sourced clothing and textiles from Mauritius and eSwatini that were exported to South Africa. The demands from US buyers on suppliers meant that the products were of high standards and that the suppliers built up their capabilities. South African retailers take advantage of the capabilities built up under preferential trade agreements in other regional countries.
Additionally, the global green energy transition is set to be minerals-intensive and Africa is well endowed with most of the critical energy minerals, said University of Johannesburg Centre for Competition, Regulation and Economic Development senior researcher Elvis Avenyo. “African countries can take advantage of the transition to green production processes to transition to medium- and higher-value chains by implementing minerals-led industrial strategies,” he said.
Consumers warned to brace for chicken price hikes as anti-dumping duties set to kick in (Fin24)
A 12-month suspension on anti-dumping duties for poultry from five countries has ended, which has raised warnings that consumers should brace for massive price hikes for the protein. Minister of Trade, Industry and Competition Ebrahim Patel on Tuesday issued a notice indicating that with the suspension period ending, the anti-dumping duties would become effective.
The duties are based on recommendations from the International Trade Administration Commission (ITAC) of South Africa. This followed an investigation into allegations of dumping “frozen bone-in” chicken portions, like leg quarters, imported from Brazil, Denmark, Ireland, Poland and Spain. ITAC found that the poultry was indeed being dumped into the Southern African Customs Union (SACU) market, of which South Africa is part.
Patel approved the commission’s recommendation to impose anti-dumping duties – which would be as high as 265% on imports from Brazil (additional to an existing 62% tariff), 67.4% on Denmark, 85.8% on Spain, 96.9% on Poland and 158.4% on Ireland. But he decided to delay the implementation (from August 2022) by a year, given the impact it would have on consumers at the time. He reiterated this in a notice issued on Tuesday this week, which also explains why the 12-month suspension was implemented.
“The purpose of this notice is to advise all interested parties that the 12-month period is ending, and in the circumstances, the minister is of the view that the anti-dumping duties should now become effective,” the notice read.
Govt grants local sugar firms licenses to import sugar out of COMESA (Capital Business)
The Government has granted licenses to Kenyan sugar companies to import the commodity out of the Common Market for Eastern and Southern Africa (COMESA). This is meant to cool the high prices of products that retail for about Sh510 for a two-kilo packet.
President William Ruto said on Wednesday that the supply of the product in COMESA has declined, thus the need to target international markets. “There is concern around sugar and we have heard issues around the whole sugar sub sector, there has been a lot of confusion and chaos since the sector has been riddled and poaching of sugarcane from one corner to the other, and others refusing to work in accordance to the law,” he said at State House.
“In fact the reason why many companies have closed shop temporarily is because there is no can to harvest and others were even harvesting cane that has not matured.” Ruto added that the government is working to create a roadmap that will be discussed in the cabinet meeting in the coming week to sort out the sugar issues in the country.
Central Africa achieved real GDP growth of 5.0 percent in 2022, compared with 3.4 percent in 2021. The rebound in economic activity was driven by favourable prices for raw materials, in a region that is home to net exporters of crude oil, minerals and other commodities. The region’s growth rate was higher than the African average, which is estimated at 3.8 percent in 2022, down from 4.8 percent in 2021. It is set to settle at 4.9 percent in 2023 and 4.6 percent in 2024.
These are some of the findings of the Central African Economic Outlook 2023 report, published on 31 July by the African Development Bank. The report has the theme “Mobilizing Private-Sector Financing for Climate and Green Growth in Africa”.
The Central Africa region achieved the best budget performance, including the smallest deficit. The deficit – despite improvements in the prices of the main exports from the region – can be explained by an increase in total primary spending owing to budget support measures undertaken by governments in response to persisting harmful effects of the Russian invasion of Ukraine on energy prices and food products.
Hervé Lohoues, Lead Regional Economist for Central Africa and Acting Division Manager for the Southern Africa, East Africa and Nigeria Country Economists, said: “Overall, the economic outlook for the Central Africa region is positive for 2023 and 2024. This performance is the result of the structural reforms implemented to support the non-extractive sectors, and the increase in external demand and the prices of the main products exported by the various countries in the region.”
COMESA Ministers of Gender meet to review progress (COMESA)
The 12th Meeting of the COMESA Ministers Responsible for Gender and Women’s Affairs was held Thursday 3 August 2023 as the region took stock of the progress it has made in advancing gender equality, empowerment of women and girls, as well as social and cultural development. The meeting, which was being held for the first time since 2021, was virtual.
COMESA Secretary General HE Chileshe Mpundu Kapwepwe delivered the opening remarks. “The pandemic pushed more women out of employment because they dominate the services sector which were shut down to prevent the spread of COVID. Moreover, according to a 2021 survey by the International Labour Organization, only 43.2 per cent of the world’s working-age women were likely to be employed post-COVID, compared to 68.6 per cent of working-age men. Women were also more likely to lose their jobs permanently compared to men,” she said.
“If women are equipped with the necessary resources, skills and opportunities to start stronger businesses, and pursue the growth potential of these enterprises, this would contribute significantly to poverty reduction, wealth creation and employment generation, and improved well-being for millions of the citizens of our region,” the Secretary General affirmed.
Actions speak louder than words – how the EU-AU partnership really works for Africa (Delegation of the European Union to the Kingdom of Eswatini)
Europe and Africa need each other to build a solid and lasting response to global and common challenges, from climate change to peace and security or economic development that affect us all. The partnership between the European Union and the African Union, rooted in dialogue and multilateralism, is solution-oriented and forward-looking.
While others seek to divide, the EU in its partnership with Africa seeks to deliver and foster cooperation. The commitments made by some countries have not stood up to the test of time. While the EU and its Member states have consistently invested in Africa and facilitated the duty free access of African exports in the EU, others only afford to invest in disinformation.
As of today, the EU is by far the main trade partner of the African continent, with a total volume of 268 billion Euro in 2021 (approx. 5. 225 trillion SZL) and 90% of African exports entering the European Union duty free. The EU is encouraged by the potential of the AfCFTA (African Continental Free Trade Area) and has been supporting it since the beginning, contributing, under a Team Europe (EU and Member States) approach, with expertise, institutional capacity and exchanges on lessons learned.
Afreximbank Sees Growth Opportunities For MSMEs In €41.8bn Factoring Industry (Leadership News)
Micro Small and Medium Enterprises (MSMEs) have more opportunities to grow by leveraging the factoring industry for operations, Peter Olowononi, head, client relations, Anglophone West Africa at the African Export-Import bank (Afreximbank) has said.
Factoring is when a funding source or financier acts as an intermediary agent that provides cash or financing to companies by purchasing their account receivables. Consequently, businesses suffer issues around lack of finance skills in preparing bankable proposals, risk-averse banks with excessive collateral requirements, lack of specialized financial institutions, shallow capital markets or a weak financial sector in general, amongst others.
“Ensuring the availability of adequate and appropriate financing to SMEs is essential to help them develop to their full potential; Factoring provides an important alternative to the other external financing sources available for SMEs such as bank loans, leasing, venture capital etc,” he said.He noted that while factoring is an emerging market, it has significant potential as its volume in Africa is above €41.8 billion and is expected to reach €50 billion by 2025.
AU Regional Economic Community capacity building on Data Policy Framework (Research ICT Africa)
July also saw the start of a two-year capacity building programme driven by RIA as part of the GIZ-funded implementation phase of the African Union Data Policy Framework in Addis Ababa. The Data Policy Framework is inclusive and forward-looking to enable member states to participate in a single African digital economy by cooperating to share data responsibly and co-create the infrastructure necessary for Africans to participate equitably in the continent’s digital economy.
As part of the implementation phase, the AU Commission has also developed a responsibility matrix to which the AU’s Regional Economic Communities and other affected parties are contributing. This will be finalised over the next few weeks and will provide another layer of guidance for domestication of the Framework at the national level.
BRICS agriculture meeting to promote sustainable production (SAnews)
Agriculture, Land Reform and Rural Development Minister, Thoko Didiza, will next week host the 13th BRICS Ministers of Agriculture meeting aimed at increasing cooperation among its member countries to promote sustainable and fair growth.
The 13th BRICS Ministers of Agriculture meeting will take place from 8-12 August 2023 in the Waterberg District, Limpopo. Held under the theme, ‘Strengthening collaborations towards sustainable agricultural production and increasing productivity’, the meeting will seek to pursue issues of common interest relating to food security, climate change, rural development, economic challenges, poverty, and population growth. The department said the BRICS mechanism aims to promote development cooperation, security, peace, and establishment of a more equitable economic world.
“The overall aim of BRICS agriculture cooperation is to improve access to food and increase comprehensive food production. The event will showcase rural development and climate change programmes,” the department said.
$31 TRILLION: Goods and services trade jumps 13% (Trade Arabia)
Trade in goods and services amounted to $31 trillion in 2022, a 13% rise year-on-year, according to a new report from World Trade Organisation (WTO). While trade in goods exceeded pre-pandemic levels already in 2021, trade in services caught up in 2022.
The share of manufactured goods in world merchandise exports fell to 63% in 2022 (versus 68% in 2018) mainly due to high energy prices limiting demand. Trade in transport services continued to grow in 2022, although at a slower pace than in 2021 as shipping rates returned to pre-pandemic levels, the report said.
Africa’s trade deficit in intermediate goods shrank to $4.4 billion in 2022. This is partly due to growth in its exports of intermediate goods, which totalled US$ 292 billion in 2022, an increase of 47 per cent compared with its pre-Covid-19 level in 2019. A rise in value terms is largely due to high commodity prices.
Least-developed countries’ (LDCs) exports of goods increased by 41 per cent in 2022 compared with pre-pandemic levels in 2019 while commercial services remained depressed (-14 per cent). This was due to subdued recovery of international travel to Asian LDCs (74 per cent below 2019).
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Global demand for coal is bringing mayhem to South African towns (Engineering News)
An often impenetrable logjam of trucks laden with coal at South Africa’s crossing with Mozambique has brought chaos to a sleepy border town.
The trucks began trundling through in ever greater numbers on their way to Maputo port, where their cargos are loaded onto ships and sent around the world, after South Africa became one of Europe’s main alternatives to Russian coal following Moscow’s invasion of Ukraine in February 2022. The procession continues even though European fears of an energy crisis have faded for now. Suppliers are finding new buyers in India and China. And miners of chrome, used to manufacture stainless steel, are increasingly using the same routes.
President Cyril Ramaphosa described the rail constraints as “a crisis of catastrophic proportions” in a meeting with key exporters in April and created a task force that includes private companies to look for solutions. They will take time to find, his spokesman said in response to questions in late July, adding “this is not a challenge you can resolve overnight.”
South Africa’s coal industry is the world’s fifth largest. In all, about 15 million tons of coal last year arrived at ports by road and another 50-million tons by train, earning its miners R227-billion after prices reached a record high of $450 per ton. That boosted South Africa’s economy – and for the first time, coal came close to rivalling platinum as the country’s most valuable export.
But the failures of Transnet resulted in lost opportunities. Shipping by road costs about 40% more. And if the rail network had been running at full capacity, the miners would exported more than R100-billion worth of minerals, according to the chief economist of Minerals Council of South Africa, Henk Langenhoven.
IMF praises Tanzania’s compliance with economic reform plan (The East African)
The International Monetary Fund (IMF) Deputy Managing Director Bo Li has concluded his visit to Tanzania with a firm commitment towards supporting the country’s efforts in unlocking its development potential. Mr Bo applauded the Tanzanian authorities’ efforts in implementing the country’s economic reform agenda.
The IMF also encouraged Tanzanian authorities to enhance domestic revenue mobilisation through tax reforms to help create the fiscal space needed to finance social spending and priority investment, particularly scaling up investment in human capital through increased spending on education and health.
Uganda has third highest level of income inequality in EAC (Monitor)
Uganda has third highest level of inequality in East Africa after South Sudan and Rwanda, according to a report by the African Development Bank (AfDB).
In details contained in the East Africa Economic Outlook 2023, AfDB indicates that the East African Community has a relatively high Gini coefficients that other African regions, which mirror the high-income inequality and poverty on the continent.
“Most of the East African countries … income is relatively concentrated in the hands of a few while the majority are struggling to meet their basic needs, such as food, energy, health care, housing, and education,” the report reads in part, noting that rising energy and food prices and prolonged droughts, compounded by adverse aftershocks of Covid-19 have been major headwinds to reducing extreme poverty in the region.
AfDB further notes that with a Gini coefficient of 42.7, Uganda only ranks better than South Sudan and Rwanda but is relatively in a worse position than Tanzania, Burundi and Kenya.
Angola: TAAG strengthens air link with DRC to boost commercial exchanges (Medafrica Times)
TAAG, Angolan airlines, will reinforce with a new frequency the connection between Angola and the Democratic Republic of Congo (DRC) to promote trade between the two neighboring countries, the company announced Tuesday August 1.
According to a note from the Angolan airline, an additional frequency will be made available on the connection between Luanda and Kinshasa, capitals of Angola and DRC, respectively, from the 14th of this month.
The document emphasizes that the increase in frequency between the two countries is also based on the development of business and mobility between Angola and the DRC, as well as a response to market demand indicators.
ECOWAS develops road information systems to boost AfCFTA (GhanaWeb)
ECOWAS Road Information Technical Experts have concluded a validation workshop in Accra to put in place measures in improving and digitalizing a one-stop shop source of information on road transport among member states to serve as a catalyst for economic development for the ECOWAS community.
The ECOWAS Commission believes transportation by road continues to serve as the main mode through which trading and movement of persons, services and goods in the ECOWAS Region are carried out. Thus to facilitate the wish of a Community Citizen to move freely, enjoy holidays, access services, it is necessary to ensure an interconnected and harmonized network of regional roads which are well maintained, managed and in good condition.
Speaking at a validation workshop for ECOWAS Regional Road Information System (ECRIS) in Accra, Mr. Chris Appiah, Acting Director of Transport at the ECOWAS Commission emphasized that in order to ensure optimum management of the road network in the ECOWAS Community the following ought to be considered: I. Identify all regional economic corridors connecting key economic centers, capital cities and open up new economic zones among others. II. Define and set key decision-making elements III. Automate the planning, programming, and implementation of their maintenance.
Rwanda hosts Cybertech Africa to advance innovation and combat cyber crimes on the continent (The New Times)
As Africa advances through technological innovations, it is becoming one of the world’s fastest-growing regions in terms of innovation and cyber capabilities. However, this progress has also led to a surge in cybercrimes, highlighting the critical importance of integrating cyber security into business strategies and policy considerations.
Recognising the challenges, Cybertech Africa 2023 was organised for the first time on the continent. The two-day conference, which kicked off on August 1, brings together key players from the business, innovation, tech, and cyber ecosystems, including dozens of companies, start-ups, esteemed speakers, renowned universities, senior government officials, C-level executives, industry trailblazers, and prominent decision-makers.
Ahmed Afif, Vice President of Seychelles, commended the revolutionary impact of cyber technology on communication, business, and information sharing, emphasising that technology’s constant evolution offers immense opportunities for entrepreneurs to reach a global market.
Whilst the AfCFTA is the engine driving economic growth, the Peace Fund is a linchpin mechanism that together with other mechanisms instituted by the African Union such as the with the Peace and Security Council, the African Standby Force, the Military Staff Committee, the Continental Early Warning System, and the Panel of the Wise, works to support the prevention, management, and resolution of conflicts, and facilitates timely and effective responses to conflict and crises in Africa. Recognizing that the prosperity of Africa is intricately linked to its stability and security, and as a key pillar of the African Peace and Security Architecture (APSA), the Peace Fund delivers timely and effective support in the areas of mediation and preventive diplomacy, AU led peace support operations, and in the development of core institutional capacities that strengthen responses to conflict and build resilience.
The relationship between AfCFTA and the Peace Fund creates a virtuous cycle that enhances economic prosperity and ensures peace and stability. Peace and stability is enhanced by the utilization of the Peace Fund, and it is a prerequisite for AfCFTA’s seamless implementation. At the same time economic prosperity spurred by AfCFTA can diminish conflict triggers and expand the resource base available for Peace Fund, reinforcing its efforts towards peace and security.
Clock Is Ticking For Food Security In Africa, Says New IITA Head (Inter Press Service)
“My key message is really simple,” says Dr Simeon Ehui, the newly-appointed director general of the International Institute of Tropical Agriculture, which works with partners across sub-Saharan Africa to tackle hunger, poverty and natural resource degradation. “The clock is ticking,” Ehui tells IPS in an interview from Washington DC on his last day at the World Bank, urging Africa’s leaders to recognise the “absolute, paramount” importance of increasing funding for agriculture.
As the African Development Bank recently noted, Russia’s invasion of Ukraine resulted in fertiliser prices rising two to three times over 2020 levels, creating serious supply gaps across the continent and driving food inflation. In sub-Saharan Africa, households spend up to 40% of their budget on food, compared to 17% in developed economies. Africa, the bank says, is over-reliant on food staples and agricultural inputs, importing over 100 million tonnes of cereals a year.
“My vision is thriving agricultural food systems in Africa,” says Dr Ehui, and, specifically for IITA and CGIAR, this means fostering the conditions to sustain centres of research excellence where scientists will be excited to work, with transparency of management and gender equality.
Balancing act: AfCFTA lures US investment (The Namibian)
The United States (US) government says the Africa Continental Free Trade Area (AfCFTA) agreement attracts US companies to invest, although analysts are cautioning against big companies taking advantage of the agreement, sidelining small businesses.
Judd Devermont, the special assistant to the US president, who was speaking at a press conference in Washington on Monday, said the reach of the AfCFTA agreement is attractive for US companies.
“But as you remove tariffs, trade barriers and non-trade barriers as you create bigger and bigger markets, it gives our companies the ability to invest in multiple countries. “If you invest in The Gambia, you’d probably also want to invest in Guinea-Bissau and Senegal. As the free trade area harmonises some of the regulations, it makes it easier for our companies to invest in multiple countries,” Devermont said.
US assistant secretary of state for African affairs Molly Phee said the US is eyeing the continent’s manufacturing of critical medical supplies and improving its agricultural activities.
Namibian trade economist Maria Lisa Immanuel yesterday warned that big companies could take advantage of these opportunities, and that this should rather be done by homegrown pan-African companies. “The West still has much of the money, by the way, in Africa’s investment deficit. This requires achieving all goals at continental level.” Immanuel said the US is playing a bigger role in the West, and also has its own interests at heart.
The Black Sea Grain Initiative Is Not About Hungry Kids in Africa (Foreign Policy)
On July 17, the Russian government announced that it was pulling out of the Black Sea Grain Initiative, an agreement brokered by the United Nations and Turkey that ensured Ukrainian grain could still be exported despite the conflict. Russia has also been carrying out deadly attacks on storage facilities in the Black Sea region. The grain deal, agreed to a year ago, allowed the flow of Ukraine’s maize, wheat, and a host of other staples to global markets.
In 2022, before the deal was brokered, media coverage and political conversations centered on how African countries depended heavily on grain imports from Ukraine, a country known as the breadbasket of Europe.
The United States, in a bid to score political points and sensationalize the news, has focused on the misguided, decades-old “starving African kids” narrative. It has ignored who the biggest beneficiaries of the deal are as well as the nuances of food security in African countries.
Africa has never really been the target consumer for Ukrainian grain. According to data by the United Nations, all the grain sent to Africa since the Black Sea deal was implemented accounts for less than 13 percent of total exports, and only a fraction of this went as food aid to so-called troubled countries.
Egypt and Kenya, both of which do not exactly fit into the picture of poor aid-consuming African countries, have been the biggest African importers under the initiative and account for roughly half of the 4 million metric tons sent to Africa. In comparison, Ethiopia has gotten just over 282,000 metric tons. Countries such as Djibouti and Sudan, which receive this grain chiefly as food aid, account for even less.
India’s rice export ban to hurt millions globally. These countries will be the worst hit (CNBC)
India’s rice export ban could ripple across global rice markets — and millions are expected to be impacted, with Asian and African consumers set to bear the biggest brunt. India, the world’s largest rice exporter, banned the exports of non-basmati white rice on Jul. 20, as the government sought to tame surging domestic food prices and “ensure adequate domestic availability at reasonable prices.” The country accounts for more than 40% of the global rice trade.
“Malaysia appears to be the most vulnerable according to our analysis,” Barclays said in a recent report, highlighting the country’s sizable reliance on Indian rice. “It imports a substantial portion of its rice supply, and India accounts for a relatively large share of its rice imports,” the analysts wrote.
The markets highly exposed to India’s export restrictions are concentrated in Sub-Saharan Africa and in the Middle East and North Africa (MENA) region, said BMI, a Fitch Solutions research unit. The firm cited Djibouti, Liberia, Qatar, the Gambia, and Kuwait as being the “most exposed.”
US Apparel Retailers Break Up With China Amid Worries (Bloomberg)
A record number of US fashion companies no longer list China as their top supplier, the result of growing diplomatic uncertainty and concerns about forced labor.
About 61% of apparel retail CEOs haves stopped using China as their primary supplier, up from 30% before the pandemic, according to a new survey by the US Fashion Industry Association and Sheng Lu, an associate professor of fashion and apparel studies at the University of Delaware.
Almost 80% plan to reduce their sourcing from China over the next two years. Those companies are primarily leaving China for Vietnam, Bangladesh and India, which have relatively large-scale production capacity and stable economic and political situations, according to the report.
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South Africa: Trade balance dipped unexpectedly in June (The Citizen)
South Africa’s merchandise trade balance unexpectedly dipped in June, with the value of the country’s exports and imports shrinking to register a trade shortfall of R3.5 billion. Lower export figures were mainly due to fall in the value of mineral goods, precious metals and stones, as well as vehicle and transport equipment exports.
Economic research group, Oxford Economics Africa, expected little change in the surplus but has noted that monthly merchandise trade flows will remain volatile for the time being. The group also says mineral producers find it difficult to get their goods to local ports, which are constrained by backlogs and inefficiency.
“The knock-on effects are undermining industry, a salient contributor to merchandise exports, which is already curtailed by scheduled power outages. What’s more, fixed investment intended to expand existing production capacity is undermined by weaker demand and unforeseen capital expenditure to source alternative energy generation.”
South Africa’s trade deficit of R3.5 billion in June is in sharp contrast to a downwardly revised merchandise trade surplus of R9.6 billion in May. The trade deficit was also much lower than the consensus forecast of R11.9 billion and marks the second goods trade deficit this year.
Final anti-dumping duties on tyres from China announced (Moneyweb)
Tyre importers and manufacturers in China have been slapped with anti-dumping duties for the next five years following an investigation by the International Trade Administration Commission (Itac). The commission recommended that Minister of Trade, Industry and Competition Ebrahim Patel impose anti-dumping duties on new pneumatic tyres imported from China for cars, buses and lorries ranging between 7.18% and 43.6%.
The application was lodged by the South African Tyres Manufacturers Conference (SATMC), representing Bridgestone, Continental, Goodyear and Sumitomo. These firms are responsible for the production of these tyres in the Southern African Customs Union (Sacu) area. They allege that the dumping causes material injury in terms of price undercutting, decline in sales volumes, market share, employment, output and productivity.
SATMC submitted its application on 24 November 2021, and Itac introduced provisional duties of 38.33% on the back of prima facie evidence of dumping. These duties expired on 8 March this year.
Itac’s investigation showed that dumped tyres with different rim sizes for cars, buses and lorries from China ranged between 36% and 81% of total imports for the period 1 August 2020 to 31 July 2021.
SATMC said in a statement it welcomes the final decision to introduce the anti-dumping duties that will remain in place until July 2028. “Fairly traded imports from other countries will continue unaffected into the Southern African Customs Union,” says SATMC managing executive Nduduzo Chala.
Egypt ensures food security amid global trade challenges (ZAWYA)
Egypt has been facing food security challenges for years as it heavily relies on imported wheat to meet domestic demand. Egypt also imports a good amount of rice and other grains to cover local needs. Russia’s recent withdrawal from the Black Sea grain-export initiative and India’s restrictions on rice exports have raised concerns about the future of food security in Egypt. However, the government has already taken steps to secure grain supplies and ensure market stability.
Egypt increased wheat imports by about 34% from the beginning of 2023 until July 18th, reaching 5.66 million tons, compared to 4.22 million tons in the same period last year, Asharq Business cited an official document.
Aya Zoheir, Research Section Head at Zilla Capital, tells Arab Finance: “Russia’s exit from the Black Sea grain-export initiative could have negative impacts on Egypt. It could result in increased competition from other grain-exporting countries trying to fill the void left by Russia, leading to increased wheat prices. In addition, Russia is considered the world’s second-largest wheat exporter, so exiting such an initiative would also result in a drastic decrease in supply, leading to a food shortage worldwide as well as an increase in Egypt’s import bill while finding alternative markets for wheat.”
Private Sector: Tanzania’s agro-trade policies distabilising regional trade (The Independent Uganda)
The move by the government of Tanzania to restrict food exports to Uganda and Kenya is facing opposition from the private sector and politicians that it is not progressive. This financial year, Tanzania reintroduced food export restrictions including new tariffs and forcing traders to open up offices in Dar es Salaam, as well as applying for export permits is they have to export.
At a recent dialogue with farmers, processors and traders in Dar es Salaam, agriculture minister, Hussein Bashe announced that whoever wanted to buy food anywhere in Tanzania, had to do so through a locally registered company. “And this directive also affects buyers from countries like Uganda, DRC, Burundi, Kenya and Rwanda,” he said, adding that the move is aimed at protecting farmers against exploitation and would also help in price regulation.
Several members of the Tanzania parliament have criticised the move as capable of hindering free trade, with others saying farmers in many areas are already stuck with huge stocks of food amidst price falls, since it’s harder to sell. The East African Business Council (EABC) however welcomes the move by Tanzania saying it is aimed at making agriculture trade formal.
Intra-EAC trade down by $1.8bn on barriers, taxation (The East African)
East African economies are losing millions of dollars as stiff trading policies, including slow implementation of agreed taxation rules, yet again force a drop in intra-regional commerce. A new report on regional commerce shows that policymakers have not been putting their words into action, agreeing on significant policies but delaying implementation. In turn, this has seen East African Community member states frequently flout the Common Market Protocol and undermine the regional integration agenda through imposition of non-tariff barriers (NTBs) to trade and repeated requests for preferential tax treatment and exemptions.
The Intra-EAC Trade Brief Analysis report by the East African Business Council (EABC) shows that the value of trade among the EAC members states fell by more than 33 percent ($1.8 billion) to $3.6 billion in 2022, from $5.4 billion in 2021. The report seen by The EastAfrican shows the intra-EAC trade was mainly impacted by trade in cereals, which fell to $285.5 million from $607.2 million and trade in mineral fuels, which fell to $175.1 million from $618.2 million in the period.
AfCFTA: Why Nigeria’s missing, as 8 countries commence guided trade (Vanguard)
Nigeria’s absence from the from the first batch of participating countries under the Guided Trade Initiative (GTI) of the Africa Continental Free Trade Area (AfCFTA) has been attributed to failure to meet the minimum requirements for trade under the agreement. The requirements include submission of a Schedule of Tariff Concessions (STCs) to the AfCFTA Secretariat and approval of the same and gazetting of the STCs or Provisional STCs.
Acting Chairman of Manufacturers Association of Nigeria’s Export Promotion Group (MANEG), Mrs. Odiri Erewa-Meggison said Nigeria is missing out from the first batch of participating countries because it is yet to meet the minimum requirements for the trade agreement.
“Nigeria has ticked most of the boxes but it is yet to gazette the STCs. The mobilisation and connection of local businesses with other members of the GTI is ongoing but progress has been slow. “There are some housekeeping issues that should also be sorted with the AfCFTA Secretariat. We believe that all outstanding actions can be completed within a short period if the political will is present and deliberately exercised,” she added.
Kenya among painful nations for suppliers in Africa (The East African)
Kenya is one of the most painful countries for suppliers on the continent given the time it takes to get money paid for goods delivered. A new report by Duplo, a payments platform for African businesses, shows that over 80 percent of Kenyan companies are taking more than a day to process invoices and the waiting can take nearly a year for some firms before the money is received. This highlights the struggles suppliers are facing to get their dues after delivery of goods.
The latest Duplo report: Exploring the State of B2B Payments in Africa shows that only 19.7 percent of Kenyan companies’ process invoices within 24 hours, with 57 percent of them taking up to a week to prepare them for payment.
South Africa has a better showing after the report found 39.9 percent of firms taking a day or less to process invoices compared with Nigeria’s 39.7 percent and Ghana’s 38.4 percent.
The agricultural sector, branding and communications, and consumer goods and retail, stand out as the most efficient invoice processors, mainly attributable to streamlined operational procedures, efficient administrative practices, or the nature of the businesses in these sectors, which may require prompt payment and transaction clearances.
Closing Africa’s gender tech gap will boost agri-food systems (Africa Renewal)
Women in agriculture still have significantly less access than men to mechanised equipment, according to The Status of Women in Agrifood Systems, a report released in 2023 by the Food and Agriculture Organisation (FAO).
The report is based on an investigation of the agri-food systems, the role of gender and work in the sector, the existing inequalities in resource distribution, women’s agency, norms and policies, and resilience to shocks and stresses. It shows that both men and women are equally likely to adopt new technologies when enabling factors are in place, underscoring the importance of ensuring equal access to productive resources for both genders.
The study shows that internet access has increased globally for both men and women while the gender gap has reduced slightly. As of 2022, 63 per cent of women globally were using the internet, compared with 69 percent of men, according to Statistica, a leading provider of market and consumer data. Unfortunately, the report highlights that the gender gap in internet use in Africa remains the largest. In 2022, 25 percent fewer women used the internet compared to men, a gap that has remained constant since 2019, according to the study.
This disparity extends to the agricultural sector, where the study established that as more women take up employment in non-agricultural segments of agri-food systems, gaps in access to relevant technologies become more evident.
West Africa experienced slower economic growth over the past year except for Cabo Verde, The Gambia, Guinea, Mali, and Niger, according to the African Development Bank’s 2023 West Africa Economic Outlook report.
Titled “Mobilising Private Sector Financing for Climate and Green Growth in West Africa,” the report provides key economic trends in 2022 as well as medium-term (2023-2024) economic forecasts for the region. It also evaluates strategies to accelerate the mobilisation of private sector financing for climate and green growth in West Africa.
The report notes that West Africa’s average gross domestic product decelerated to 3.8% in 2022 from 4.4% in 2021, implying that the growth recovery from the 2020 downturn had slowed. It attributes decelerating growth to, among other factors, such successive shocks as the resurgence of Covid-19 in China, a major trade partner for the region’s countries. Russia’s invasion of Ukraine has also spurred inflationary pressures on the cost of food, fuel and fertilizer in many West Africa region countries.
The 2023 West Africa Economic Outlook notes that adapting to climate change and the depletion of the region’s natural resources present an opening for businesses and governments to embrace sustainable and green growth.
Mineral-rich African states to explore new markets after EU changes its buying rules (The East African)
The European Union, the world’s largest single market, has introduced new measures to reduce their “dependency” on mineral imports from outside the bloc. The European Council adopted the Critical Raw Materials Act on June 30, a regulation that seeks to utilise the bloc’s Common Market and partnerships to “diversify critical raw material supply chains, which currently rely on imports from a handful of third countries.” A spokesperson of the European Commission told The EastAfrican that the bloc has taken this route because of the lessons they have learnt from the recent supply-chain disruptions that significantly impacted their supply and consequently costs of products associated with the raw materials.
Under the new regulations, EU will source up to 65 percent of its annual consumption of critical and strategic raw materials from within the bloc, dealing a blow to countries in the region that have been exporting to the region. At least 10 percent of the minerals used in the bloc will now be extracted from countries in the union, 40 percent will come from processing, and 15 percent will come from domestic recycling of the critical and strategic minerals.
According to the spokesperson, domestic extraction of the minerals in the EU has been low due to a number of factors, including “long permitting procedures, local opposition, high energy costs, high labour costs, and high costs of regulatory compliance.” The Act now seeks to address most of these hurdles.
SA outlines its BRICS approach ahead of Summit this month (IOL)
Working at reducing the trade deficit between South Africa and its BRICS counterparts – Brazil, Russia, India, China – while establishing strategic economic partnership to expand trade is key, according to the BRICS Business Council.
This view was emphasised at the BRICS Business Editors’ Breakfast in Johannesburg yesterday ahead of the BRICS Summit taking place at the Sandton Convention Centre in Johannesburg from August 22-24, under the theme: “BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development, and Inclusive Multilateralism.”
Stavro Nicolaou, a member of the BRICS Business Council, said the statistics showed that South Africa was benefiting from BRICS. “As we begin to mature as a BRICS formation across the five markets, it is important to see what the trade patterns look like and see how South Africa can benefit from export opportunities,” he said. South Africa ran a trade deficit with the four BRIC partners. Trade deficits were to be expected and should be seen as a positive business, commercial trade and investment opportunity, Nicolaou said.
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Trade statistics for June 2023 (South African Revenue Service)
South Africa recorded a preliminary trade balance deficit of R3.5 billion in June 2023. This deficit is attributable to exports of R167.6 billion and imports of R171.1 billion, inclusive of trade with Botswana, Eswatini, Lesotho and Namibia (BELN).
The year-to-date (01 January to 30 June 2023) preliminary trade balance surplus of R5.6 billion is a deterioration from the R129.6 billion trade balance surplus for the comparable period in 2022. On a year-on-year export flows for June 2023, were R167.6 billion, which were 8.3% lower compared to R182.9 billion for June 2022, whilst import flows were 6.5% higher having increased from R160.7 billion in June 2022 to R171.1 billion in the current period.
Confidential document reveals SA fears that Agoa trade pact status is under threat (Daily Maverick)
The document about South Africa’s Agoa status informed deliberations by high-level envoys sent to the US by President Cyril Ramaphosa to explain South Africa’s stance on the Russian invasion of Ukraine and to lobby to retain South Africa as part of Agoa. “The debate around the renewal of Agoa has provided Congress with an opportunity and a powerful tool to cajole and pressure South Africa to speak out against Russia more forcefully and publicly,” the document, dated March 23, reads.
“In addition, the new power dynamics in Congress, the current geopolitical context and big power competition for strategic influence, including in Africa, have afforded the Republicans a platform to use their narrow majority in the House of Representatives to put the Democrats under pressure to take stronger [measures],” it reads.
On Monday this week, the United States Trade Representative, which is responsible for developing and coordinating US international trade, began its annual review of the eligibility of sub-Saharan African countries to receive the benefits of Agoa
Ruto cuts on weigh bridges, roadblocks on Mombasa-Kla route (The Independent Uganda)
Kenya has agreed with neighbouring countries, a raft of measures to be implemented immediately to improve cargo handling through the Port of Mombasa to the hinterland. Among them, Ruto directed the immediate removal of all weighing points save for only Merikhani and at the borders for all transit cargo. He also directed that all the roadblocks along the transit highways within Kenya’s borders be removed immediately. These would be replaced by Mobile Police Security.
At a meeting held on Saturday at the port city, where Uganda was represented by Gen Edward Katumba Wamala, the Minister for Works and Transport, Kenya President William Ruto said they will convince again in 90 days to review the progress.
The directives President Ruto gave were aimed at facilitating faster movement of goods and services by reducing the non-tariff barriers to trade.
Morocco’s trade deficit widens 61.6% over first half of year (ZAWYA)
Morocco’s trade deficit widened by 61.6% in the first half of 2023 to 138 billion dirhams ($14 bln) despite a slight drop in imports, data from the foreign exchange regulator showed on Friday. Imports contracted 1.6% from a year earlier to 359 billion dirhams, overshadowing exports of 221 billion dirhams, up 1.9%, the regulator said in a monthly report.
Morocco’s energy imports stood at 61 billion dirhams, down 14.8%, while the cost of wheat imports slightly dropped by 0.7% to 45.7 billion dirhams. The automotive sector led Morocco’s exports with 70.9 billion dirhams, up 34.3%.
Breaking free of the dollar: PAPSS and intra-African trade, By Odewale Abayomi (Premium Times Nigeria)
At a recent forum on the African Continental Free Trade Area (AfCFTA) in Nairobi, Kenya, the Kenyan President, William Ruto called on African leaders to expedite the adoption of the Pan-African Payments and Settlement System (PAPSS) by both their central and commercial banks, in order to decrease pressure and reliance on the bullish US dollar for intra-African trade. The Kenyan president is deeply concerned about the fragmented African payment landscape, with nearly 40 currencies being used across 54 countries, under diverse payment structures and cumbersome processing strategies – thereby making free trade a herculean task.
During the forum referred to above, Ruto queried, “From Djibouti selling to Kenya or traders from Kenya selling to Djibouti, we have to look for US dollars. How is US dollars part of the trade between Djibouti and Kenya? Why?” “That is why Kenya champions the Pan African Payment and Settlement System that is done by our own institution — the Afreximbank. Why, members? Why is it necessary for us to buy things from Djibouti and pay in dollars? There is no reason,” he stated.
Before PAPSS, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) was the primary platform for African banks to conduct cross-border transactions, with an estimated loss of close to $5 billion annually, which undermines trade in Africa countries. It is quite an irony that it is faster and cheaper for Nigerians to receive and transfer money to far away Western countries than to those within Africa.
Currently, only nine countries, which are Nigeria, Ghana, Liberia, Guinea, Sierra Leone, The Gambia, Djibouti, Zimbabwe, and Zambia are part of the PAPSS’s network, out of the 54 African countries billed to trade under AfCFTA through a single and open market that allows for the unrestrained movement of goods, services, capital, and persons, and which supports investment opportunities. Every central bank on the continent is expected to enrol with and become part of PAPSS by the end of 2024, while all commercial banks are to follow suit by the end of 2025. But, the adoption process remains at a slow pace.
Civil servants urged to work towards maximising AfCFTA benefits (The Namibian)
Prime minister Saara Kuugongelwa-Amadhila has called on civil servants to prepare themselves for Namibia to reap the full benefits of the African Continental Free Area agreement (AfCFTA). She made these remarks in a speech read on her behalf by the deputy industrialisation minister, Verna Sinimbo, during the four- day 2023 Africa Public Service Day commemoration, which concluded at Katima Mulilo yesterday.
African Union (AU) member states commemorate Africa Public Service Day on 23 June annually to mark and recognise the role of public sector organisations and their positive contributions and benefits to communities, as well as the contributions of civil society and the private sector to national development efforts. This year, the day was celebrated under the theme, “The African Continental Free Trade Area (AfCFTA) will Require a Fit-for-purpose African Administration to Succeed”.
“Preparedness through the development of public systems and institutions, among others, is required. Further, we must align and coordinate our efforts at all levels and promote a spirit of partnership with other stakeholders beyond the public service in order to leverage the resources and capabilities of all Namibians to optimise economic growth and development. The public service is at the centre of the success of AfCFTA,” she said.
EABC organises forum on AfCFTA rules of origin (Tanzania Daily News)
THE East African Business Council (EABC) has commenced a three-day workshop on the African Continental Free Trade Area (AfCFTA) Rules of Origin. The workshop convened together National Associations, Chambers of Commerce from the Region, and delegates from the European Union and EAC Secretariat.
“Partnership in this endeavour is of vital importance for capacity building and knowledge sharing in fostering a vibrant, inclusive trade environment,” said EABC Board Member, Mr Paul Makanza in his opening remarks,
to fully realise the advantages of AfCFTA, it is crucial to understand a number of aspects related to the agreement, and the most fundamental aspect is the Rules of Origin, he said. “It plays a crucial role in ensuring fair competition, preventing trade deflection, and safeguarding products originating from the Region. A comprehensive understanding of this training will help the region navigate through the complexities of trading and harness the potential of the AfCFTA,” he added.
Strategic partnerships key to unlock EU’s market for agricultural produce (Tanzania Daily News)
When it comes to the economies of the East African Community (EAC), agriculture stands tall as the backbone. Not only does it contribute to food security, but it also fuels employment, industrial development, trade and investment. In a recent report by Eurostat, the European Union’s statistics authority, it was revealed that in 2022, the EAC exported agri-food products worth a staggering 2.16 billion Euros (Sh330b) to the EU. This figure represented an impressive increase of 26.2 per cent from the previous year. Moreover, intra-EAC trade in agricultural products witnessed a remarkable 33 per cent growth from 2018 to 2022.
However, despite the significant strides made in value addition, a considerable proportion of agricultural products from the region are still exported in their raw form, due to a combination of demand and supply-side challenges. These statistics highlight the EAC’s untapped potential if supply side and market access obstacles are effectively addressed. The hurdles encompass access to market information, enhanced productivity throughout the value chain, compliance with international standards, improved post-harvest handling, logistics, branding, and more.
East Africa will register the highest regional economic performance on the continent in 2023 and 2024, with growth figures at over 5 percent, according to the newly published African Development Bank 2023 East Africa Economic Outlook.
The report, launched on Thursday 27 July, projects mid-term economic growth in the region to accelerate to 5.1% in 2023 and 5.8 % in 2024, outpacing all the other African regions. This will be largely driven by growth in Rwanda, Uganda, Ethiopia, Kenya, Djibouti, and Tanzania.
According to the report, East Africa’s real GDP was propelled by its services sector, contributing almost half of the economic growth in 2022. The sector contributed 2.0 percentage points to GDP growth, lower than 2.5 percentage points on average for the period 2015-2021. The region’s natural and cultural attractions draw tourists from around the world, creating a demand for services like accommodation, food, and entertainment.
The report outlines four common challenges faced by the region’s economies, which justify a strong, inclusive green growth agenda. They include reliance on agriculture for livelihoods, natural resource dependence, energy, and water scarcity. It urges East African countries to adapt green growth pathways by tapping into key sectors like renewable energy; sustainable agriculture and infrastructure; and forestry.
23rd Meeting of SADC Ministerial Task Force calls for accelerated industrialisation (SADC)
The 23rd Ministerial Task Force (MTF) on Regional Economic Integration of the Southern African Development Community (SADC) held its meeting on 26th July, 2023 with Ministers calling for accelerated implementation of the industrialisation agenda to spur economic growth and poverty eradication in the SADC region.
In his opening remarks, Honourable Mr. Julien Paluku Kahongya, Minister of Industry of the Democratic Republic of Congo and Chairperson of the Ministerial Task Force (MTF) on Regional Economic Integration, highlighted the need for the SADC region to redouble its efforts in industrialising the regional economy in order to limit importation of finished products and reduce the export of raw materials.
He further called for the development of regional value chains, taking advantage of the region’s abundant minerals and natural resources which offer opportunities for trade, investment, and industrial development in the SADC region.
President Bola Ahmed Tinubu, President of the Federal Republic of Nigeria and Chairman of the Authority of Heads of State and Government of the Economic Community of West African States (ECOWAS) has convened an Extraordinary Summit of the Authority on the political situation in the Republic of Niger. The Summit held in Abuja, on July 30, 2023. The ECOWAS Leaders considered and discussed the political situation and recent developments in Niger during the Extraordinary Summit.
Forum report highlights need to properly assess Africa’s place in the global world (ZAWYA)
The Mo Ibrahim Foundation has released the 2023 Forum Report, Global Africa: Africa in the world and the world in Africa. The Report outlines the key takeaways from the 2023 Ibrahim Governance Forum, alongside the latest available data around the theme of ‘Global Africa’.
The Forum was held in Nairobi as part of the Foundation’s annual Ibrahim Governance Weekend, which took place between 28-30 April. The event brought together African leaders, politicians and thought leaders to discuss the ‘Global Africa’ theme across three sessions, with participants considering Africa’s weight in the current world, the world’s presence in Africa, as well as the continent’s place within the multilateral architecture.
“The world is changing around us. Time is gone to underestimate Africa, talk down to Africa or give instructions to Africa. Do not take Africa for granted.” - Mo Ibrahim, Founder and Chair of the Mo Ibrahim Foundation (MIF)
Russia-Africa 2023 Summit: Progress & Joint Declaration (Russia Briefing)
The 2023 Russia-Africa Summit has finished in St.Petersburg, with 49 of the 55 African nations attending, up from 43 at the previous 2019 event.
On a regional basis, the BRICS grouping is willing to discuss expanded membership to include several African nations. At present, Egypt already has equity in the BRICS New Development Bank, while Algeria, Morocco, Nigeria, and Senegal are all known to have made official applications to join.
Russia plans to increase exports of food and fertilizers, vehicles, and industrial machinery to Africa. These commercial transactions will be increasingly settled in national currencies, including the Ruble, as opposed to the US Dollar and Euro. Moscow intends to send both commercial and humanitarian shipments of grain to “African friends”, according to the Russian president. This includes free deliveries and shipping of Russian grain to six African nations as soon as possible, and the delivery of free fertilizers and shipping to a further six. Russia is set for a record grain harvest this year, with President Putin stating that Russia will provide sustainable and affordable deliveries to Africa.
Russia has written off US$23 billion of African debt and is in discussions to allocate a further US$90 million for lowering the overall debt burden of African countries. According to Oleg Ozerov, Chair of the Russia-Africa Partnership Forum Secretariat, African countries’ debt issues involve restructuring “some financial issues, but we are not talking about the direct debt. We are talking about certain financial agreements and the obligations of both sides.”
There was considerable attention paid to having various East African countries officially join the International North-South Transportation Corridor (INSTC) which provides multi-modal logistics and transport between the Caspian Sea and the Persian Gulf, effectively connecting Russia with the Middle East. Extending this from the Gulf to Africa – Egypt would be a primary destination – would make Russia-Africa trade far more effective and discount the use of the longer, and more expensive Suez Canal option. It would also assist African nations access Central Asian markets, an issue of interest especially to Africa’s Muslim nations.
The two sides agreed to the further strengthening of trade, economic, and investment cooperation between Russia and the African States, including with the African Union, and the leading African regional organizations
Russia specifically mentioned the operations of the African Continental Free Trade Area (AfCFTA) which came into effect in 2021 and has reduced intra-African tariffs on 95% of all products. Moscow is ahead of the game here in terms of recognizing the benefits of this, as it effectively means that goods can be sourced on a pan-African basis, consolidated into one area – such as a Free Trade or Economic Trade Zone (ETZ), producing a final product either for export or resale on the African market. Russia has such a ETZ at Port Said in Egypt, with the first exports from that facility due later in the year. Similar Russia ETZ have been proposed in Ethiopia, Namibia, and Malawi, while China is also doing the same. In contrast, European businesses appear to have missed the significance of the AfCFTA, perhaps wanting to concentrate on intra-EU trade and a more protectionist attitude.
In terms of boosting what AfCFTA means for Russian investors, the summit stated that it was important “in order to enhance the market integration, industrialisation and economic development of the African continent by facilitating technology transfer and encouraging investment, promoting the development of value added chains, and boosting mutual capacity to produce and export value added manufactured products.”
Russia is ahead of the game here in terms of understanding what Africa has done in this regard. Consequently, Russian auto manufacturers are already looking at establishing manufacturing plants in east Africa, taking advantage of both AfCFTA as well as the INSTC transport routes.
With the prevalent dependency of African economies on external supply of fertilizers and grains and up to 30% of cereals imported from Russia, ensuring that critical trade flows continue uninhibited, remains the priority of Afreximbank and its African member states. The lingering global food security challenges and the critical role trade with Russia plays in guaranteeing Africa’s food security was at the core of discussions for Afreximbank at the second Russia African Economic and Humanitarian forum which held at St. Petersburg from the 27th to the 29th of July, 2023.
Addressing the summit, Prof. Benedict Oramah, President and Chairman of the Board of Directors of the Bank, said in his remarks that “ Afreximbank is working with the African Union Commission, the United Nations System and Russian partners to use the Africa Trade Exchange (ATEX) e-commerce platform to facilitate seamless flow of goods and payments in any currencies chosen by sellers and buyers in a transparent manner. The platform pools Africa’s demand for grains and fertilizers, and the Bank has placed an aggregate credit limit of US$3 billion to support these transactions.”
Trade flows between Africa and Russia reached almost US$20 billion in the four years to 2021, as against about US$10 billion in 2015, despite the COVID-19 pandemic and other significant global crises, bringing it closer to the target of US$40 billion by 2026. It is expected that the trade flows could double over the next four years.
Developing countries all set to start trading in national currencies - BRICS bank head (IOL)
There are no obstacles for developing countries to switch to trade in national currencies, the president of BRICS’ New Development Bank (NDB), Dilma Rousseff, said on Wednesday.
The NDB is an international financial institution established in 2014 following the BRICS summit after an agreement between Brazil, Russia, India, China and South Africa. It aims to mobilise resources for infrastructure and sustainable development projects in BRICS countries, as well as other emerging markets and developing countries, through the provision of loans, guarantees and other financial instruments as part of state and private projects.
Members of the BRICS group do not cooperate against third parties, and this concerns financial issues as well, Russian President Putin said during the meeting with Rousseff.
Putin added that settlements in national currencies among BRICS countries were on the rise, and the development bank could play a key role in this issue.
E-commerce co-convenors to issue updated negotiating text (WTO)
In his opening remarks, Ambassador Hung Seng Tan of Singapore, co-convenor of the initiative and chair of the 2023 plenary meetings, said: “We need to exercise greater flexibility and we need to really put our shoulders to the plough and push together as we head towards the finishing line.”
In closing the meeting, he said that the co-convenors will take time to reflect over the summer and take stock of progress made so far. He added: “We will develop a roadmap for us to double down our efforts from September to November.” He also announced that a text on “single windows” — the practice of establishing a single entry point for the exchange of information between trader and government — has been “parked”, meaning the technical work on this topic has been finalized.
WTO issues 2023 edition of the World Trade Statistical Review (WTO)
The World Trade Statistical Review 2023 presents recent trends in international trade at a time of geopolitical and macroeconomic strains and technological challenges affecting the global economy and supply chains. The data cover merchandise and services trade broken down by geographical origin, main product groups and sectors, along with related data on key economic developments such as GDP growth, commodity prices, and exchange rate fluctuations.
Director-General Ngozi Okonjo-Iweala says in the foreword to the report: “As a succession of crises buffet the global economy, with the COVID-19 pandemic giving way to the war in Ukraine, inflation, monetary tightening, and widespread debt distress, world trade has lost momentum, with trade growth slowing in 2022 and remaining weak into early 2023. That said, global trade growth has remained positive, underscoring how trade has been a force for economic recovery and resilience. Nevertheless, numerous downside risks, from geopolitical tensions to potential financial instability, are clouding the medium-term outlook for both trade and overall output.”
New publication sets out common framework for measuring digital trade (WTO)
The measurement of digital trade offers policymakers statistical evidence on the significant impact of digital trade on the global economy. Digital technologies have made it increasingly feasible for buyers and sellers to place and receive orders on a global scale. They also enable the instantaneous remote delivery of services directly into businesses and homes.
The Handbook focuses on two key elements: digitally ordered trade and digitally delivered trade. Furthermore, it highlights the important role of digital intermediation platforms (DIPs) in facilitating digital trade and addresses particular compilation challenges in measuring DIP transactions.
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Somalia’s Institutions get a Boost to Help Bring the Country Closer to Debt Relief (World Bank)
Somalia's efforts toward building strong institutions received a boost with a new $75 million grant, the second in a series of two grants that is helping the country make progress on its path to qualify for full and irrevocable debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative.
In a context of multiple and overlapping shocks related to frequent climatic hazards, as well as widespread fragility, the Somali government is implementing an ambitious reform program to build institutions, attract investments, and achieve inclusive economic growth and job creation, aligned with the ninth National Development Plan which outlines numerous priority areas for moving the country forward, several of which are supported by this Development Policy Financing (DPF).
To develop high-potential sectors for economic growth, Somalia has approved new laws that establish the institutional environment in key sectors such as fisheries and electricity. To mobilize much needed private capital to develop these sectors, a new investment and investor protection law was enacted. To increase access to finance, a digital identification law was approved, which can support better know-your-customer protocols, alongside a data protection law to provide safeguards on the use of personal data.
Strategic partnerships key to unlock EU’s market for agricultural produce (Tanzania Daily News)
When it comes to the economies of the East African Community (EAC), agriculture stands tall as the backbone. Not only does it contribute to food security, but it also fuels employment, industrial development, trade and investment. In a recent report by Eurostat, the European Union’s statistics authority, it was revealed that in 2022, the EAC exported agri-food products worth a staggering 2.16 billion Euros (Sh330b) to the EU. This figure represented an impressive increase of 26.2 per cent from the previous year. Moreover, intra-EAC trade in agricultural products witnessed a remarkable 33 per cent growth from 2018 to 2022.
However, despite the significant strides made in value addition, a considerable proportion of agricultural products from the region are still exported in their raw form, due to a combination of demand and supply-side challenges. These statistics highlight the EAC’s untapped potential if supply side and market access obstacles are effectively addressed. The hurdles encompass access to market information, enhanced productivity throughout the value chain, compliance with international standards, improved post-harvest handling, logistics, branding, and more.
Can AI address Africa’s agricultural trade deficit? (African Business)
A majority of African countries are losing billions of dollars of foreign exchange annually through food imports. In 2022, 38 countries had a negative trade balance in agricultural products, with Algeria, Egypt, Nigeria, Morocco and Angola leading the ranking with more than $3bn lost over the year.
Set this against two important facts: that agriculture remains a main source of revenue for many households, contributing close to 23% of sub-Saharan Africa’s GDP and employing more than 60% of its population; and that the continent has 65% of the world’s remaining uncultivated arable land.
The trade imbalance also weighs on countries’ fiscal health. When they cannot compensate through other exports – such as oil in the case of Nigeria, Angola, and Algeria – countries become extremely vulnerable to external shocks. Recent disruptions in the cereal value chain due to the Black Sea blockade resulting from the conflict in Ukraine are seen as the straw that broke the camel’s back for many leaders across the continent. These disruptions coincided, however, with a year marked by unprecedented development in the field of artificial intelligence (AI).
Though AI has recently been the subject of much hype, it was being considered as a tool to help farmers improve their income two years ago. In 2021 Daphney-Stavroula Zois, a professor of electrical and computer engineering at the State University of New York at Albany in the US, worked with the non-profit AGRI-WEB to help smallholder farmers in Ghana develop better prediction models for their crop yields using artificial intelligence. But “there are many other uses of AI,” she says.
“As I have already said, Russia can well fill in the gap left by the withdrawal of the Ukrainian grain from the global market, either by selling its grain or by transferring it for free to the neediest countries in Africa, especially considering that this year we once again expect to have a record-high harvest.
To be more specific, let me say that in the next three to four months, we will be ready to provide, free of charge, a supply of 25,000–50,000 tonnes of grain each to Burkina Faso, Zimbabwe, Mali, Somalia, the Central African Republic and Eritrea, delivered at no cost,” said President Putin.
Why SADC countries should protect women cross-border traders (Daily Maverick)
For decades informal cross-border trade has been a cornerstone of African economies. It is an occupation dominated by resilient and resourceful women.
Numerous studies have demonstrated the significant role informal cross-border trade plays in reducing poverty and food insecurity for millions of households that are excluded from formal employment opportunities. Yet women traders like Chenai continue to face a host of challenges, including gender-based violence, administrative harassment, corruption and excessive taxation.
This month marks two decades since the adoption of the Maputo Protocol, arguably the most progressive instrument on women’s rights in international law. Adopted by the African Union (AU) on 11 July 2003, the protocol seeks to guarantee the empowerment of women in southern Africa by upholding their rights to inheritance, economic and social welfare, education and training and equal protection before the law, among others. Despite some progress, many challenges persist in realising the rights enshrined in this treaty.
Public finance management transformation needed in Africa (Engineering News)
African governments are unable to finance the $2.8-trillion needed for climate responses beyond the 10% of costs, or $250-billion, they have already committed as of 2022, owing to existing high levels of public debt.
However, public finance management transformation can help to correct these countries' fiscal trajectories, free up domestic capital for the climate agenda and create transparency and confidence around the management of fiscal funds that international funders will look for, management advisory and services company PwC Africa states in its 'Implementing Green Public Finance Management in Debt Distressed Countries' report.
The remaining $2.5-trillion is what the region needs to implement climate action commitments and achieve Nationally Determined Contributions. This figure is equal to the value of total gross domestic product during 2022 in sub-Saharan Africa, says PwC Ghana assurance, government and public services leader Hayfron Aboagye.
However, public finance management transformation can help to correct these countries' fiscal trajectories, free up domestic capital for the climate agenda and create transparency and confidence around the management of fiscal funds that international funders will look for, management advisory and services company PwC Africa states in its 'Implementing Green Public Finance Management in Debt Distressed Countries' report.
President Ramaphosa calls for shift to high value exports (SAnews)
President Cyril Ramaphosa has boldly declared Africa’s intention to prioritise the export of valuable finished products instead of raw materials from the continent’s minerals. President Ramaphosa told his Russian counterpart, President Vladimir Putin, that Africa wants to export finished products, which will set Africa on a path to unlock unparalleled opportunities for the continent’s economies. The President was speaking during a plenary session at the second Russia-Africa Summit held in St. Petersburg in the Russian Federation. The two-day summit kicked off on 27 July.
“We no longer want to export ore, soil, dusts and rocks from the minerals of our continent. We want to export finished products that have value. “There must be respect also for what we do as countries, and we must stop those countries that count their wealth and their assets in terms of minerals that reside in the African soil like they did in the past when they counted their wealth in the number of slaves that they owned, taken from the African continent. “Respect and mutual benefit underpin what we as Africa do when we relate to other countries in the world,” the President said.
“African countries should, as sovereign States, be able to pursue their own independent foreign policy approaches that are not beholden to any of the major global powers or blocs.
Moscow Has Forgiven $23Billion Debts Owed By African Countries - Russian President, Putin (Sahara Reporters)
The Russian government has written off over $20 billion of debt historically owed by African nations, President Vladimir Putin said on Friday.
President Putin who announced the debts forgiveness at a plenary session of the Russia-Africa forum in St. Petersburg, also said that Moscow would allocate more funds to help with the development of the continent, according to RT report. “The total amount of debt of the African countries written off by Russia amounts to $23 billion dollars with another $90 million to be allocated for the same purposes,” Putin stated, with reference to historical trade and finance links between Moscow and Africa.
Russia-Africa Agric trade grows despite Western sanctions (The Chronicle)
Speaking during a plenary session of the Russia–Africa Economic and Humanitarian Forum at the Second Russia-Africa Summit here on Thursday, President Putin said his government, businesses and the public are interested in further deepening multifaceted trade, investment and humanitarian ties with the continent to promote stable growth and prosperity.
“Friends, the numbers speak for themselves: last year Russia’s trade with African countries in agricultural products increased by 10 percent to $6.7 billion, and has already demonstrated record growth in January-June of this year by increasing by 60 percent. Russia exported 11.5 million tonnes of grain to Africa in 2022, and almost 10 million tonnes in the first six months of 2023. All this has been taking place despite the illegal sanctions imposed on our exports, which constitute a serious impediment for exporting Russian food, complicating transport, logistics, insurance and bank transactions.”
Singapore woos Africa for mutual benefits (BusinessGhana)
A Director at Enterprise Singapore (EnterpriseSG), Rahul Ghosh, has called for a strong collaboration between Singapore and Africa to establish global firms for mutual benefits.
The collaboration should precede the creation of a robust environment that will thrive on strong commitment to accelerate economic growth but resilient enough to birth international firms to serve both markets, Mr Ghosh who is in-charge of Middle East and Africa, said at a virtual media briefing on July 20.
He was speaking ahead of the seventh Africa Singapore Business Forum (ASBF) scheduled between August 29 and 31, 2023 at Singapore. On the theme “Driving Africa’s growth through digitalisation, manufacturing and sustainability,” the forum seeks to bring together more than 500 business and government leaders on a single platform to interact and propel solutions for mutual benefit.
Mr Rahul Ghosh stated that Africa was a very important market that should not to be ignored. He said the African Continental Free Trade Area (AfCFTA) has created the largest free trade area in the world with a combined gross domestic product (GDP) value of $3 trillion. He explained that Singapore companies were drawn by its potential and were eager to explore new opportunities for collaboration in areas such as manufacturing and digital solutions. According to him, Singapore companies can also share knowledge and innovative solutions with Africa, contributing to the continent’s development and creating mutually beneficial partnerships.
He added that companies in Africa should use Singapore as the gateway to reach consumers in Asia.
E-commerce co-convenors to issue updated negotiating text (WTO)
In his opening remarks, Ambassador Hung Seng Tan of Singapore, co-convenor of the initiative and chair of the 2023 plenary meetings, said: “We need to exercise greater flexibility and we need to really put our shoulders to the plough and push together as we head towards the finishing line.”
In closing the meeting, he said that the co-convenors will take time to reflect over the summer and take stock of progress made so far. He added: “We will develop a roadmap for us to double down our efforts from September to November.” He also announced that a text on “single windows” — the practice of establishing a single entry point for the exchange of information between trader and government — has been “parked”, meaning the technical work on this topic has been finalized.
Developing countries cannot preserve biodiversity without support from developed counterparts (Engineering News)
In an address to delegates of the G20 Environment and Climate Sustainability Ministers Meeting, in India, on July 28, Forestry, Fisheries and the Environment Minister Barbara Creecy said ambitious targets to preserve the planet were meaningless unless they are backed with enabling means of implementation for developing countries.
Creecy added that 17 of the major biodiverse countries in the world are developing countries. She emphasised further that developed countries need to assist with securing at-scale, predictable and appropriate funding streams for developing countries’ efforts to conserve and protect biodiversity. Particularly, she said, the G20 countries can work together to protect biological diversity.
In South Africa’s case, mega-diversity is both a natural and cultural asset, as well as a source of socioeconomic development through the use of plants, marine living organisms and wildlife, which the South African government has vowed to protect in the White Paper on the Sustainable Use of South Africa’s Biological Diversity.
DRC mobilising stakeholders for COP28 (CAJ News Africa)
The Democratic Republic of Congo (DRC) is encouraging local companies to capitalise on the potential of green business models and create opportunities from the carbon credit prospects. Sama Lukonde, Head of Government and Prime Minister of the DRC, made the call at the recent Economic Forum on the New Climate Economy.
“The DRC’s solution to the global climate threat must first be locally beneficial before it can be considered on a planetary scale,” Lukonde said. “Our climate action must therefore respond to internal and external challenges to sustainable economic development because solidarity between nations must consider the principle of responsibility towards our respective populations and the requirements of community development.” In addition, the just-concluded forum offered a unique opportunity to identify and select the Congolese companies that will accompany President Felix-Antoine Tshisekedi to the upcoming COP28 in Dubai.
“The energy and digital transitions are two major transformations underway,” said Patricia Katshabala, Head of External Relations at Vodacom Congo.
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South Africa Seeks to Halt Used Rail Track Exports to Curb Theft (Bloomberg)
South Africa’s trade minister proposed new regulations to prohibit the export of used rail tracks and increase restrictions on copper-product shipments as the government tries to combat theft and vandalism of public infrastructure. Trade and Industry Minister Ebrahim Patel proposed banning the export of the rail tracks until Dec. 15 and limiting the sources of copper that can be used to produce semi-finished products for export, so the source of the metal can be more easily verified when issuing permits.
Exporters are shipping ferrous scrap rail tracks that may have been stolen, using a loophole in measures that currently prohibit scrap-metal exports, Patel said a request for comment published in the Government Gazette on Wednesday. The theft and export of copper cables and other infrastructure has been a major contributor to power cuts and disruptions on rail lines that hamper transportation by companies such as Kumba Iron Ore Ltd. and Exxaro Resources Ltd.
Genesis Analytics has estimated that copper theft cost the South African economy more than 46 billion rand ($2.6 billion) in 2020-21, according to the notice.
FedEx Enhances International Priority® Service in South Africa (WebWire)
FedEx Express, a subsidiary of FedEx Corp. and the world’s largest express transportation company, announced the enhancement of its International Priority® (IP) service in an effort to improve the efficiency of goods circulation and enable customers to seize global opportunities.
FedEx has improved transit time of FedEx International Priority (IP) for exporters in South Africa. With this enhancement, shipments can now be delivered to major markets and territories around the world within two to three business days. This represents at least a one-day improvement compared to previous transit times for major markets
Shipments from South Africa to the U.S. and major markets in Europe can now be delivered within two to three business days. Shipments to major markets in AMEA can be delivered within two to four business days.
As part of its mission, the Africa Continental Free Trade Area Agreement (AfCFTA) member states have committed to lifting tariffs and barriers to trade. This will boost intra-Africa trade and increase demand. Now more than ever, African businesses require timely delivery solutions to meet the increasing and evolving demands of global markets.
Zambia’s success in restructuring its $6.3 billion bilateral debt under the G20 Common Framework continues to draw support from regional and global institutions. These institutions seek to ensure that the country sticks to the agreed debt arrangement, tackles debt owed to private commercial creditors—including Eurobond holders—and implements reforms critical to its economic recovery and growth.
The African Development Bank Group convened meetings in Lusaka last week
African Development Bank President Dr Akinwumi Adesina led a delegation to the meetings. “The starting point is to now make sure the debt treatment works, and that Zambia does not again return to a debt crisis,” he said.
Adesina outlined several measures that, once approved by the Bank’s Board of Directors, will deliver a total of $318 million comprising $150 million for budget support to Zambia from the Bank. The remaining annual allocation of $168 million will be drawn from its concessional window, the African Development Fund, to finance large transformative infrastructure, including energy, road and rail transport connections with Mozambique, Angola and the Democratic Republic of Congo.
Sibling rivalry: Is Kenya losing investment deals to Tanzania? (The Standard)
Tanzanian President Samia Suluhu does not shy away from throwing jibes at Kenya from time to time. Her recent remarks claiming that Tanzania is seeing an influx of foreign investors in the wake of the opposition-led protests in Kenya have kicked up another political storm between the two neighbouring countries that have had an uneasy trade relationship over the years.
Speaking during celebrations to usher in the new Islamic Year, President Hassan emphasised the importance of peace in a nation, saying it creates the right environment for investors. “If we fight, those [investors] who show up will say ‘that is not a good business environment’,” she said.
Tanzania Investment Centre (TIC) Director General Gilead Teri, during the interview referenced by President Hassan aired by Tanzania Broadcasting Corporation, detailed how the country between January and March saw investments worth $1.3 billion (Sh195 billion), equivalent to Tsh2.8 trillion. This is from 93 projects, which will provide employment to about 16,000 Tanzanians.
Weighing in on the supposed influx of investors to Tanzania over Kenya’s unfriendly political environment, Kenya Association of Manufacturers (KAM) Chairman Rajan Shah said the lobby body is continuously striving to advocate for reduced costs and ease of doing business.
“Whether is power, taxation or regulatory environment, we continue to do that. And whilst Kenya still remains a preferred destination, we are also opening up the region and for sure, there will be investments which will go to our neighbouring countries as well based on the competitive advantage of what are the resources available.”
Report: Nigeria Increases Share of ECOWAS GDP to 62.7% (THISDAYLIVE)
Nigeria’s share of the Gross Domestic Product (GDP) of the Economic Community of West African States (ECOWAS) grew to 62.7 per in 2022. This was revealed in the 2023 West Africa Development Outlook (WADO) released on Monday by the ECOWAS Bank for Investment and Development (EBID). The report also revealed that poverty worsened in West Africa in 2022, as the number of the working poor increased by 3.9 per cent (5.4 million persons) to 142.3 million persons in 2022.
The theme of the report was, “A Mixed Bag Outlook: Debt Distress, Flagging Growth and Declining Inflation.” According to the report, “Nigeria increased its share of the sub-regional GDP to 62.7 per cent in 2022 from 60.6 per cent in 2021 at the expense of Côte d’Ivoire, Ghana and the rest of ECOWAS, with Ghana being the biggest loser from 10.9 per cent in 2021 to 9.6 per cent in 2022). The report, however, added that, “on a more positive note, no ECOWAS Member State recorded a negative growth in 2022, in spite of the very turbulent socio-economic environment.”
Congo & Rwanda consider waiving visas to nationals (FurtherAfrica)
Rwanda and the Republic of Congo announced last week that citizens from the two countries may be exempted from Visas while entering both sides. “President Kagame met with President Sassou Nguesso for bilateral discussions aimed at strengthening cooperation in various sectors including trade and investment, agriculture, air service, visa exemptions and more,” said the Rwandan Presidency.
The Presidency added that the two Presidents also witnessed the signing of an agreement of cooperation on accelerating the implementation of the African Continent Free Trade Area (AfCFTA) agreement, before addressing members of the press.
While addressing the Rwandan Parliament both chambers, President Sassou-Nguesso pushed for free movement of all Africans on the continent. “We should work towards irreversible integration of African people, an option that defies borders, brings people together and enables solidarity and complementarity,” the Congo leader said.
How intra-EAC exports thrived despite Covid-19 (The Citizen)
In the face of the Covid-19 pandemic, exports within the East African Community (EAC) bloc showcased remarkable resilience, surging from $3 billion in 2019 to $5.2 billion last year. The growth of exports within the region led to an increase in intra-EAC export share, reaching 24 percent of the total exports in 2022, up from 22 percent in 2019. This encouraging development was announced in Kampala during the official launch of the East African Business and Investment Summit and Expo, scheduled to take place from August 31.
With the theme “Private Sector-Driven Regional Integration for Increased Intra-African Trade, Investment,” the summit is set to be a critical facilitator of trade and business promotion. The summit will gather stakeholders to discuss successes, challenges, and opportunities in trade and investments not only within the EAC but also in the African Continental Free Trade Area (AfCFTA).
Africa pursues free trade amid global fragmentation (World Bank Blog)
Defying the trend toward deglobalization and economic fragmentation, African nations are uniting to form a free trade area. The project promises to offer the rest of the world a renewed message of hope on the benefits of removing – not erecting – barriers to free flows of goods, services, investment, and ideas across borders.
Turning the aspiration into reality will require sustained effort and strong collaboration among African governments, the private sector, civil society, and the international community. That was the consensus among leaders representing those stakeholder groups during a forum in Washington in April alongside the Spring Meetings of the World Bank and the International Monetary Fund.
“The agreement is riding on a wave of unprecedented political support and will,” AfCFTA Secretary General Wamkele Mene told the forum. “But delivering on its promise needs the effective and aggressive implementation of its protocols.”
No doubt, Africa faces myriad challenges. Some countries are plagued by persistent conflict. Difficulties in transacting among 42 currencies impose an estimated $5 billion a year in extra costs on traders. Border procedures can be cumbersome and time consuming. Small-scale cross border trade is flourishing but comes rife with risks, especially for women, who often face harassment and violence.
But Africa has made a start: Its eight Regional Economic Communities can serve as building blocks. It will be incumbent on wealthier African nations, who are likely to be the first to benefit from freer trade, to catalyze opportunities for economically weaker states, Amany al-Wassal, executive director of Egypt’s Export Development Fund, told the forum.
“We have to lift the small countries and emphasize to them the importance of implementing the agreement,” she said.
North African countries are projected to see a slight increase in economic growth to 4.6 percent in 2023 and 4.4 percent in 2024, and should make green growth an urgent priority, according to the African Development Bank. The pan-African institution published its 2023 North Africa Economic Outlook report in Tunis on Thursday 27 July, under the theme “Mobilizing Private-Sector Financing for Climate and Green Growth in Africa”.
“To sustain inclusive growth, the region should implement structural reforms that support the development of the private sector, improve productivity and employability, and create job opportunities,” stressed Ms Verdier-Chouchane.
According to the Bank Group, growth in the region is essentially driven by the service sector, particularly trade and tourism. Growth in North Africa in 2022 was moderate: 4.1 percent compared with 5.4 percent in 2021.
North Africa should take full advantage of its significant natural resources while making green growth an urgent priority. North African governments, foreign and domestic private investors, multilateral development banks and development finance institutions, as well as the private sector, should invest in green growth. Private-sector financing, in particular, can play a crucial role by investing in green energy infrastructure, energy efficiency, sustainable agriculture and land restoration.
The private sector can also provide the expertise, technology and management skills needed for effective and efficient implementation of green development projects.
African countries unite to close revenue leakages in post Covid-19 recovery (Monitor)
African countries have demonstrated a strong post-Covid-19 recovery, with an average economic growth of approximately 5 per cent between 2020 and 2021 among the countries participating in the African Tax Outlook (ATO) initiative, aimed at closing revenue leakages in tax collection.
During the same period, tax revenue mobilised by the ATO participating countries increased by 7.7 per cent. This growth was attributed to the fiscal stimulus measures implemented by countries to counter the impact of the pandemic.
Uganda is among the 37 ATO countries which provided data for ATO 2022 and type of revenue administration agency. According to the report, Uganda posted a six percent increment in GDP in 2021 and a 10 per cent growth in nominal tax.
African Union calls on Russia to reinstate Ukrainian grain deal (POLITICO)
The African Union called today to urgently reinstate a United Nations-brokered deal allowing Ukraine to export millions of tons of grain that was terminated at Russia’s behest.
“The problem of grains and fertilizers concerns everyone,” Comoros President Azali Assoumani, who heads the 55-nation African Union, told Russian state newswire RIA Novosti. He was speaking in St. Petersburg, where Russian President Vladimir Putin is hosting a summit with African leaders.
Putin last week pulled out of the Black Sea Grain Initiative that had allowed Ukraine — one of the world’s breadbaskets — to export grains and oilseeds through three Ukrainian ports on the Black Sea: Odesa, Chornomorsk and Yuzhny/Pivdenny.
Russia-Africa 2023-24 Trade and Development Prospects (Russia Briefing)
The 2023 Russia-Africa summit is currently taking place in St.Petersburg, with delegations from 49 African countries (from a total of 54), 17 of which are led by their respective heads of state. Despite a dip in trade in 2021, due to shipping disruption created as a result of the Ukraine conflict and Western sanctions, Russia’s trade with continental Africa rebounded somewhat in 2022 to reach US$18 billion.
With over 330 major infrastructure and industrial facilities in Africa, Moscow has a significant historical contribution in the region. However, recent Russian investment is less than 1% of Africa’s total foreign direct investment and significantly less than European, American, and Asian competitors. The St.Peterburg event will be looking at stimulating this.
Creating a more efficient system of logistics and passenger and cargo transportation has a significant impact on the development of cooperation. Therefore, it is possible for East Africa countries such as Egypt to join the North-South International Transport Corridor (INSTC) project. That feeds directly into the Persian Gulf, heads north via Iran to the Caspian Sea and to markets in Russia, Turkiye, and Central Asia. Coordinating east African ports and logistics to the INSTC will be a major development area.
Moscow has welcomed economic relations with individual countries in Africa as well as regional-African associations (SADC-ECOWAS), greater economic integration, the formation of the African Continental Free Trade Agreement (AfCFTA), and the establishment of mutual relations in the framework of the Eurasian Economic Union (EAEU).
The cooperation of African associations with Russia, as an EAEU member state, is also being strengthened, as this also opens up markets in Armenia, Belarus, and Kazakhstan in particular. The EAEU and African Union have already signed agricultural agreements.
Africa’s commercial infrastructure is also a way to circumvent sanctions, and the banking sector, government and monetary and financial system, while safe mutual settlement mechanisms, including free from adverse external influences can help Russia. These include proposals such as a joint Russian-African Trade Bank and discontinuing the use of the US dollar and Euro in multilateral trade. Russia and Africa are also establishing a US$5 billion online trading platform to further facilitate trade.
WTO members facilitate imports, reduce trade restrictions, but food export curbs persist (WTO)
The Director-General’s mid-year report on trade-related developments shows that WTO members continued to facilitate imports and generally exercise restraint in the use of trade-restrictive measures from mid-October 2022 to mid-May 2023. However, while the number of export restrictions on food, feed and fertilizers has come down substantially, many such measures remained in place, contributing to supply uncertainty and price volatility.
Speaking at the launch of the report, DG Okonjo-Iweala said: “The fact that WTO members have been taking more steps to facilitate imports illustrates how trade is a valuable tool for pushing back against inflationary pressures.” Pointing to the introduction of export restrictions on food, feed and fertilizers since the start of the war in Ukraine in February 2022, DG Okonjo-Iweala noted that several such restrictions have been phased out.
The UN Food Systems Summit +2 Stocktaking Moment (UNFSS+2) closed on Wednesday at the Food and Agriculture Organization of the United Nations (FAO) after three days of high-level events, meetings and dialogues bringing together over 2000 participants from 180 countries, including over 20 Heads of State and Government and 125 Ministers, to explore challenges and opportunities to transform agrifood systems.
“The path is long and we need to accelerate our step,” added FAO Director-General, QU Dongyu, underscoring that the Organization is committed to supporting members along with their national pathways toward better production, better nutrition, a better environment, and a better life- leaving no one behind.
The United Nations Deputy Secretary-General, Amina Mohammed, officially closed the UNFSS+2 Stocktaking Moment by presenting Call-to-Action on behalf of the UN Secretary-General, António Guterres.
She advocated for urgent action at scale to close the implementation gap, highlighting the linkages to financing for development, debt relief, inclusion, engagement with non-state actors, and access to science, technology and innovation for all. She also outlined key priorities for further action, including establishing food system strategies across all national policies and promoting multi-stakeholder partnering.
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SA’s manufacturing sector and the golden opportunities for SMEs (Bizcommunity)
South Africa’s manufacturing sector is one of several areas of interest, identified in the National Development Plan (NDP) as an industry poised for job creation and GDP growth. Despite several hurdles having thwarted the industry’s progress over the past few years, efforts by the public and private sectors to revitalise and expand South Africa’s manufacturing capabilities, present an encouraging prospect for small- and medium-sized (SMEs).
Last year saw South Africa’s manufacturing sector being put through its paces, with the industry’s gross value showing a decline of 1.3 percentage points during the first six months of the year when compared to the same period in 2022. Persistent load shedding, input cost pressures and the Durban floods during April this year dealt deafening blows to the sector’s progress in several key performance areas.
The industry did, however, show signs of recovery during the latter part of 2022, with an almost 3 percentage point year-on-year increase in September.
For Jeremy Lang, chief investment officer at Business Partners Limited, as sectors such as manufacturing seek to follow the country’s renewed impetus towards economic recovery, a vital component of the solution lies with small businesses.
As he asserts: “Going forward, the strategic positioning of small businesses along the industry’s supply and value chains will serve to unlock the sector’s potential as a bolstered contributor to our country’s GDP, socioeconomic development and the broadening of the fiscal base.”
Recent data presented by Stats SA saw South Africa’s manufacturing sector taking its place as the second highest contributor to total turnover (25%), after trade.”Now is the ideal opportunity for local entrepreneurs to seek out and harness the opportunities that exist within the manufacturing space,” says Lang, who encourages SME owners to look into sub-sectors such as agriculture, pharmaceuticals, renewable energy, and steel.
Considerations, opportunities for South Africa’s entrenched automotive manufacturing industry (Engineering News)
South Africa’s automotive manufacturing sector has been a real success story for the country but there are several challenges and considerations that stakeholders must grapple with, as well as opportunities that can be capitalised on, as changes unfold, including a move towards electric vehicles. This was noted by speakers during Creamer Media’s webinar, titled ‘The Automotive Industry: Building on South Africa’s success and facing the challenges of the future’, and held on July 26.
National Association of Automotive Component and Allied Manufacturers executive director Renai Moothilal attributed the success of the sector thus far to the country having a long-established history of automotive production and a very sophisticated network, both from an original equipment manufacturer (OEM) perspective and the supplier base that had developed over a very long period of time.
Importantly, and supporting the strong private sector presence, there had been recognition and active involvement by various administrations of the South African government to provide serious levels of policy and incentive support, he pointed out. Therefore, Moothilal said, the country had a fairly stable supporting mechanism.
Toyota Wessels Institute for Manufacturing Studies Manufacturing Ambassador Professor Justin Barnes posited that the South African automotive industry’s opportunity lay in Africa and in creating regional value chains. He pointed out that an important area of focus for the country needed to be on increasing its domestic market, as this was tied to the number of vehicles it could export owing to rebates.
South Africa asks US for early renewal of key trade agreement (Engineering News)
South Africa asked the US government to consider an early extension of the African Growth and Opportunity Act to help stimulate investment across the continent, Trade, Industry and Competition Minister Ebrahim Patel said.
The request was made during a visit by South African officials to the US earlier this month to discuss the trade pact and finalize preparations for an AGOA forum that’s scheduled to be hosted in SA this year. An early renewal of AGOA in its current form would be preferable to a revised agreement that may take time to conclude, Patel said in an interview with the Johannesburg-based Business Day newspaper.
“If we extend AGOA largely in its current form, we can incrementally improve the terms over the next few years,” the paper cited Patel as saying. “Many African countries are keen on an early extension because it gives investors certainty to commit additional investment on the continent.”
South Africa ships cars and agricultural produce to the US under the accord. Last year, it exported $2.7 billion of goods using AGOA and the so-called Generalized System of Preferences.
IFC partners with Banking Association South Africa to boost climate finance (Engineering News)
Development finance institution the International Finance Corporation (IFC) is joining forces with local body the Banking Association South Africa (BASA) to help increase climate finance in the country and pave the way for a transition to a low-carbon economy.
Under the terms of the agreement between the IFC and BASA, IFC will provide advisory support to strengthen the climate risk assessment, mitigation and adaptation practices of South Africa’s banks and help them reduce their exposure to climate change-related risks. The partnership will also promote investment in green, climate-friendly assets, in line with the country’s National Development Plan and its commitments to the Paris Agreement.
Through the programme, the IFC aims to facilitate at least $500-million in climate investments by South African banks, and at least $300-million in climate-themed bonds issued by South African corporates, by 2027.
The country needs an estimated R1.5-trillion ($84-billion) over the next five years to transition from coal to renewable energy, reduce carbon emissions, adopt new green technologies and support affected communities.
World Bank Says Mali’s Economy Showed Signs of Resilience Despite Sanctions and Climate Shocks (World Bank)
Mali’s economy showed signs of resilience despite Economic Community of West African States (ECOWAS) sanctions, high food inflation, and parasite infestations that affected cotton production. According to the World Bank’s 2023 Economic Update for Mali, entitled “Strengthening Financial Resilience of Pastoralists to Drought,” GDP growth is estimated at 1.8%, driven by the recovery of food agriculture and the resilience of the gold and telecommunications sectors. Average annual inflation increased to 9.7% in 2022, owing primarily to rising food prices.
In terms of projections, the report notes that the outlook for 2023 is fraught with risks associated with the electoral timetable and tighter financial conditions. The rising cost of financing on the regional market, given Mali’s high gross domestic financing needs, is a significant risk that has emerged in the last 12 months.
The second chapter of the report focuses on disaster risk financing and insurance instruments designed to reduce the adverse socioeconomic impacts of climate shocks. It notes that Mali experienced at least 40 major climate shocks between 1970 and 2020 and that each year droughts are estimated to have affected about 400,000 persons and reduced crop revenues by $9.5 million. Financial resilience to drought could, however, be strengthened by establishing instruments to protect key sectors such as pastoralism and agriculture.
Douala-Bangui corridor: Truckers spend up to CFAF255,000 at checkpoints, survey reveals (Business in Cameroon)
Truckers traveling along the Douala-Bangui corridor disburse an average of CFAF64,000 and a maximum of CFAF255,000 at checkpoints along the corridor, a recent survey reveals. According to the survey published by the European Union (EU)-funded Observatory of Abnormal Practices (OPA) on the major corridors in Central Africa, these expenses average just CFAF22,941 with a maximum of CFAF126,000 on the Douala-Ndjamena corridor, which connects Cameroon and Chad.
Based on those figures, the OPA concludes: “Checks on the Douala-Bangui corridor (1,435 km) remain more costly than on the Douala-N’Djamena section (1,934 km), even though this route is shorter (400 km less).”
According to the OPA, payments made at road checks are the most abnormal practices corridor users mostly report in the Central African region.
Uganda to host a freight conference next month (The Independent Uganda)
Uganda Freight Forwarders Association (UFFA) in partnership with the International Federation of Freight Forwarders Associations (FIATA), will host the RAME2023 an international conference that brings together freight logistics stakeholders from the Region Africa and Middle East (RAME) at the Commonwealth Resort, Munyonyo, next month
RAME represents over 1,000 freight forwarders in over 30 countries in the Middle East and Africa. The three-day conference starting on August.01 will provide an opportunity for companies in the shipping business to discuss current and emerging global supply chain trends concerning resilience, adaptability, and diversity.
The conference will also provide an opportunity for Ugandan companies to participate in the heavily standardized oil and gas industry by forging partnerships with more established foreign players. Uganda, which is currently developing its oil and gas industry, hope to start production in 2024.
A strong African voice on global financial architecture reform (Mo Ibrahim Foundation)
The COVID-19 pandemic, the cost-of-living crisis fuelled by the war in Ukraine, the tightening of global financial conditions… Since the beginning of the new decade, Africa has been hit by a series of shocks that has stalled progress on the Sustainable Development Goals (SDGs), threatening to lead to a lost decade for the continent, rather than one of action.
62 million Africans were pushed into poverty in just one year after the COVID-19 outbreak, with an additional 18 million estimated to have joined their ranks by the end of 2022. Economies have been hit hard and many African countries are burdened with elevated levels of debt and insufficient fiscal space to make essential investments in critical infrastructure projects, education, and healthcare.
To respond to those challenges, the United Nations Economic Commission for Africa (ECA) created the Africa High-level Working Group on Global Financial Architecture (the Group) at the beginning of 2022.
The Group serves as a forum to develop reform proposals for the global financial architecture as well as to unify the African voice on the global stage. Many of the Group’s proposals have been echoed in a resolution passed by African Ministers at ECA’s Conference of Ministers in Addis Ababa in March 2023. Those proposals were also presented during the Africa Consultative Group meeting with the IMF Managing Director in Washington DC during the 2023 Spring Meetings of the WBG and the IMF. At the heart of those proposals are three key asks, centring on unlocking liquidity, reforming the global debt architecture, and enhancing representation for African countries in global financial institutions.
East African business body launches business, investment summit to boost trade (Xinhua)
The East African Business Council (EABC), a regional apex body of the private sector, has in collaboration with its partners launched the East African Business and Investment Summit 2023, aimed at charting out a common agenda to take trade to higher heights for increased prosperity, the EABC said in a statement on Wednesday. Themed “Private Sector-Driven Regional Integration for Increased Intra-African Trade, Investment & Economic Growth,” the summit is slated for Aug. 31 to Sept. 1 in the Ugandan capital of Kampala, said the statement.
“This summit is organized in close collaboration with all investment promotion authorities in East Africa, who will showcase investment opportunities and present viable projects ready for investment to East African, African, and international investors,” said the statement.
The hybrid Meeting of the Committee of Ministers of Justice/Attorneys General of the Southern African Development Community (SADC) was held on the 20th July 2023 in Kinshasa, Democratic Republic of Congo, to review progress made on decisions taken at its previous meeting and considered the draft legal instruments to be recommended to SADC Council of Ministers and Summit of Heads of State and Government for consideration, approval, adoption and signature.
Among the legal instruments was the Draft Amendments to Annex VII to the SADC Protocol on Trade which was also considered and recommended to the Committee of Ministers of Trade for approval and adoption. The draft amendments to Annex VII the Protocol on Trade seek to incorporate the agreed provisions on the Preferential Trade in Sugar in the SADC region such as preferential access to be established for SADC surplus sugar producing countries to markets of deficit SADC sugar producing and non-sugar producing countries (surplus to deficit trade in sugar) amongst others.
Food crisis in Africa: the high cost of imported fertilisers is adding to the problem (The Conversation)
Global fertiliser suppliers have made incredibly high profits in 2022/23 on the back of price spikes attributed to the Russia-Ukraine war. The profits of the world’s top nine producers trebled in 2022 from two years previously.
The wide gaps between fertiliser prices in the region and international fertiliser prices point to major issues within the supply chain with excess margins of some 30%-80% being earned on sales to many African countries.
High fertiliser prices undermine production, contribute to high food prices, and exacerbate food insecurity.
High prices for fertiliser inputs are squeezing African farmers who are cutting back on fertiliser use meaning low yields and supply, and high food prices. International action is therefore urgently required on fertiliser prices to improve food security in Africa.
Boosting trade with Morocco is a big Brexit benefit (Politics Home)
When it comes to post-Brexit trade opportunities, the government is right to prioritise building on the UK’s unique 800-year-old relationship with Morocco.
Morocco is well positioned not only by its proximity to the UK but as the “Gateway to Africa” to support and help catalyse UK-Africa trade, business, and commercial ties, offering both proximity and privileged access to the African market.
Importantly Morocco is a unique trading partner. In fresh food alone it produces ‘green/climate friendly agriculture’, utilises sustainable farming and produces an array of fresh products. It has a wonderful array of trade infrastructure.
Since the association agreement was signed in 2021, total trade in goods and services between the two countries has increased by 50 per cent. In 2022, the UK and Morocco did about £3.1 billion-worth of bilateral trade and the UK is using the association agreement with Morocco to boost that even further.
Minister Pandor outlines key elements ahead of 2nd Russia-Africa Summit (SAnews)
A number of key elements in areas of collaboration, including digital innovation, space science, as well as strengthening people-to-people exchange will form part of the subjects to be discussed at the second Russia-Africa Summit in St. Petersburg.
Speaking to SAnews in St. Petersburg, Department of International Relations and Cooperation (DIRCO) Minister, Dr Naledi Pandor, said that a wide spectrum of areas of partnership are a rationale for South Africa’s presence at the summit.
“We’ve also added a much stronger focus on matters of trade. All of these will be part of the subjects that we will discuss during this second summit,” Pandor told SAnews.
The Minister emphasised that it was important to mention that for the first time, it is not just Heads of State attending the summit, but there are also a number of enterprises from various African countries as well as the Continental Development Finance institutions present.
“Interestingly, we also have the brand new president of the New Development Bank or the BRICS Bank, as it is sometimes called. This will be President Dilma Rousseff’s first detailed interaction with African leaders, particularly the BRICS leaders. This (meeting comes ahead of the) BRICS summit that will occur in Johannesburg in South Africa, next month,” Pandor said.
Russia to continue to supply grain, food, fertilisers to Africa – Putin (IOL)
Russia was able to replace Ukrainian grain and would continue to supply grain and fertilisers to African countries despite sanctions, Russian President Vladimir Putin said yesterday.
“I want to give assurances that our country is capable of replacing the Ukrainian grain both on a commercial and free-of-charge basis, especially as we expect another record harvest this year,” Putin wrote in an article titled “Russia and Africa: Joining Efforts for Peace, Progress and a Successful Future” published by the Kremlin yesterday.
The Russian city of St. Petersburg will host the Russia-Africa summit from July 27–28. Putin emphasised that Russia was ready to build mutually beneficial relations with the AU, including within the framework of the Eurasian Economic Union.
DG Okonjo-Iweala underlines role of trade in transforming food systems at UN summit (WTO)
Addressing a session on trade for agri-food systems transformation via a virtual connection, DG Okonjo-Iweala emphasized that open and predictable trade is an indispensable mechanism for people to access affordable food because “one in five calories consumed around the world is traded across an international border”. Furthermore, “farm trade rules and policies shape the incentives influencing production, investment and consumption decisions at the centre of the food systems transformation,” she added.
The Director-General said trade is “a key factor” in driving development and income gains for people in poor countries and in supporting better access to nutritious food, as evidenced in the decades of trade-enabled growth up until the COVID-19 pandemic.
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R78.9m disbursed to citrus growers under the economic transformation programme (Engineering News)
Over the past three years, more than R161.3-million in funding has been approved under the Economic Transformation of Black Citrus Growers (ETBCG) Programme and R78.9-million disbursed to support black grower citrus operations, creating 78 permanent and 625 seasonal jobs in total, as well as enabling 208 ha of new trees to be planted.
Industry organisation the Citrus Growers Association (CGA) in 2019 launched the R307-million ETBCG Programme in partnership with the Jobs Fund, the Land Bank, the Department of Agriculture and Rural Development, AgriSETA, the LIMA Rural Development Foundation and FNB, said CGA CEO Justin Chadwick.
While the ETBCG Programme was launched in 2020, the Covid-19 pandemic impacted its roll-out, as well as a number of new challenges faced by the local citrus industry over the past three years, which has threatened the sustainability and profitability of farming operations. These include a major hike in farming input costs and freight rates as well as loadshedding and operational issues at ports.
Additionally, the local industry has predicted that citrus exports could grow to 260-million 15 kg cartons a year by 2032, if all role-players work together. With transformation of the industry a key priority over the next ten years, a target for black citrus growers’ contribution towards the overall 260-million cartons a year has been set at 50-million cartons a year.
inDrive launches name-your-price freight service in South Africa (Engineering News)
California-based mobility and urban services platform inDrive has launched a name-your-price freight service in South Africa, targeting small businesses and individuals. InDrive is already active as a set-your-price e-hailing service in the country.
“The [freight] service aims to deliver reliability and efficiency on last-mile, in-city routes, with same-day delivery available on demand,” says the company. inDrive.Freight’s operations have now been launched in Cape Town and Johannesburg, with a programme to expand the offering to more cities by the end of the year. inDrive.Freight promises the delivery of small parcels or large shipments of non-liquid freight, varying from 20 kg to 20 000 kg.
“At inDrive, we understand the unique logistics challenges that small businesses and individuals face,” says inDrive business representative Southern Africa Vincent Lilane. “We have introduced inDrive.Freight in South Africa to address these challenges. It is a comprehensive solution offering competitive pricing, timely delivery, and the flexibility and scalability needed in today’s fast-paced world.”
DTIC aims to improve awareness on AfCFTA through outreach programme (Engineering News)
The Department of Trade, Industry and Competition (DTIC) has embarked on provincial outreach and awareness workshops in collaboration with provincial governments, wherein it hopes to have engaged all provinces on the African Continental Free Trade Area (AfCFTA) by the end of July.
The DTIC is also developing an AfCFTA implementation plan, including the establishment of a national implementation committee and a targeted strategy for the implementation of the AfCFTA.
“The AfCFTA brings us a step closer to realising the historic vision of an integrated market in Africa. For sustainability and legitimacy, Africa’s integration must deliver shared benefits,” DTIC director-general Malebo Mabitje-Thompson said during a webinar on the operationalisation of the AfCFTA on July 25. She added that trade integration and liberalisation should be accompanied by programmes to support African industrialisation and regional value chains. “Coordinated efforts and inclusion of AfCFTA across all of government and relevant stakeholders to ensure the benefit of AfCFTA opportunities to all of South Africa’s private sector is imperative,” Mabitje-Thompson said.
She explained that, for the successful implementation of the AfCFTA, a doubling of road freight will be necessary, increasing from 201-million tonnes to 403-million tonnes. The agreement also calls for the provision of about 1.8-million trucks for bulk cargo and 248 000 trucks for container cargo by 2030. The estimated investment required for the road freight aspect amounts to about $345-billion.
SA views BRICS as a key strategic partner – Minister Ntshavheni (SAnews)
South Africa has assured its BRICS partners that it continues to view the bloc as a crucial strategic partnership through which a just, peaceful and more equitable world order can be pursued and realised.
South Africa, led by Minister in the Presidency responsible for State Security Agency, Khumbudzo Ntshavheni, today hosted a BRICS National Security Advisors meeting in Sandton, Johannesburg. Delivering the opening remarks, Minister Ntshavheni told her BRICS counterparts that state and non-state actors are hard at work in certain parts of the globe using various role players to promote their agenda whilst undermining countries’ national security.
“As an African country, we firmly believe in the need to promote peace and sustainable development as well as deepened political, economic and social relations. South Africa remains deeply committed to multilateral diplomacy, in principle and in our demonstrable actions - particularly through our close collaboration in the bloc,” the Minister said.
Foreign investors withdraw $345m from faltering Kenya economy (The East African)
Kenya lost over $345 million worth of foreign direct investment (FDI) and other investment inflows in three months as economic growth plummeted over increased political noise and unfriendly policies. The latest Central Bank of Kenya (CBK) data shows that the country’s net financial account inflows dropped by 34 percent ($345 million) to $660 million in the first quarter of this year, compared with net inflows of $1 billion in the same period in 2022. Economic growth fell from 6.2 percent to 5.3 percent, according to the Kenya National Bureau of Statistics.
Foreign investors, on the other hand, have voiced concerns over a dollar shortage in the country, difficulties in accessing short-term loans to shore up their working capitals, restrictions on capital repatriation and the high cost of doing business.
China envoy Wang Yi calls Kenya economic ties a ‘win-win’ (The East African)
China’s top diplomat Wang Yi during a visit to Kenya on Saturday praised the two countries’ economic partnership as a “win-win”, according to a statement from the Chinese authorities. Kenya and China have “become good friends with mutual trust in politics and good partners with win-win economic cooperation”, according to the statement from the Chinese embassy in Kenya.
With the most dynamic economy in East Africa, Kenya is considered by the international community as a stable democracy in a troubled region. China is the second-largest donor to Kenya after the World Bank.
China has also loaned $5 billion (4.7 billion euros) toward the most expensive infrastructure project in the country since its independence in 1963: a train line that since 2017 has connected the port city Mombasa with Naivasha, in the Rift Valley, via the capital Nairobi. ”The landmark project of the Mombasa-Nairobi Railway has completely changed the face of Kenya,” the embassy’s statement said.
Cameroon’s customs revenues went up 19.3%, to CFAF486.4bln, in H1-2023 (DGD) (Business in Cameroon)
The Directorate General of Customs, housed at the Ministry of Finance, collected CFAF486.4 billion in customs revenues between January and June 2023. The revenue is up 19.3% year-on-year compared to the CFAF 407.8 billion collected by the end of June 2022. It also exceeded, by CFAF16 billion, the CFAF470.4 billion target set for the customs administration over the period under review.
This performance was achieved in an economic context that was rather unfavorable to revenue mobilization. In detail, this context, according to the General Directorate of Customs, is notably “marked by the slowdown in world trade volume growth, the continued dismantling of tariffs following international trade agreements (EPA between Cameroon and the European Union and the AfCFTA), as well as the implementation of salutary measures to combat inflation, such as subsidies for petroleum products and tax and customs duty exemptions.”
Addis-Djibouti corridor upgrade to improve regional integration (ESI-Africa.com)
The Addis-Djibouti corridor, a vital trade route and a lifeline for Ethiopia’s 120 million people, will upgrade significantly thanks to the newly approved Horn of Africa Initiative’s Regional Economic Corridor Project. The project, endowed with a $730 million grant from the International Development Association (IDA), aims to improve regional connectivity and logistics efficiency in Ethiopia along this key trade route connecting landlocked Ethiopia to the port of Djibouti.
“Improved regional connectivity and trade are essential to unlocking Ethiopia’s economic potential,” said Ahmed Shide, Minister of Finance of the Federal Democratic Republic of Ethiopia. “This project is important to support our commitment to fostering inclusive growth and regional integration, as we are now fully focused on sustaining the growth and reaping the peace dividends,” he added.
Over 95% of Ethiopia’s import-export trade (by volume) uses the Addis-Djibouti corridor. The project aims to upgrade the road to Djibouti, including the Mieso-Dire Dawa section, which is currently in poor condition and unsuitable for growing truck traffic. This section forces road users to take a longer route through Mille, adding 146km to their journey.
Africa headed to miss own deadline on food security (The East African)
African countries are headed to miss their own target of reducing hunger through better agricultural investments. The revelations emerged on Monday at a meeting of the African Union meant to evaluate Africa’s path to towards better nutrition and eradication of extreme hunger. And it emerged just four Member States are on track to deliver key nutrition targets, just two years to the deadline agreed on it the Malabo Declaration on Accelerated Agricultural Growth and Transformation for Shared Prosperity and Improved Livelihoods.
At the event organised by the African Union InterAfrican Bureau for Animal Resources (AU-IBAR) and the Bill and Melinda Gates Foundation at Naivasha hotel, participants were told of imminent ramifications: prolonged poverty. “It is now imperative that we prepare to account for how the livestock sector has contributed to delivering against key targets,” said Dr Nick Nwankpa, the African Union-InterAfrican Bureau for Animal Resources (AU-IBAR) Acting Director.
Malabo Declaration is supposed to end by 2025. Incidentally, it is also the mid-way point of implementation of the Livestock Development Strategy for Africa (LiDeSA), a continental vision to tap into the value of livestock as a key source of food, ending poverty. But the continent has suffered more droughts, more floods, more pest invasion and lower food production, also owing to global events such as Covid-19 and the Russian invasion of Ukraine.
“The multiplicity and increasing frequency and severity of shocks and their complex and interlocking effects demands an approach that will also strengthen resilience in feed and fodder systems,” Dr Nwankpa said. “Unfortunately, we only produce 40 per cent of the required amount thus having a deficit of 60 per cent,” he revealed.
Weather, aborted Ukraine grain deal spell doom to EA food basket (The East African)
East African economies are staring at a fresh spike in food prices and a further deterioration in inflation outlook in the wake of adverse weather conditions that have heavily impacted the region, compounded by the collapse of a crucial grain export deal between Russia and Ukraine last week.
Latest data by the United Nations Food and Agriculture Organisation (Fao) shows that Cereal production in the East African region is expected to decline by four percent to 52.8 million tonnes this year from 55 million tonnes in 2022, according to the Fao latest quarterly report on ‘Crop Prospects and Food Situation’ around the world.
The UN agency, through its quarterly report on ‘Crop Prospects and Food Situation’ around the world dated this month shows that the region faces steep grain deficit with cereal import requirements for this year standing at around 13. 68 million tonnes and 14.77 million tonnes in 2024.This signals East Africa’s huge demand for wheat, maize, rice, barley and sunflower whose global supply chain has now been disrupted by the collapse of the Russia-Ukraine Black Sea grain export agreement.
Among African Low-Income Food Deficit Countries (LIFDCs) total cereal production in 2023 is forecast at a slightly below-average level of 106.1 million tonnes largely as a result of erratic rain distribution in East Africa which has curbed harvest expectations in Kenya, Ethiopia, the Sudan, Uganda and Tanzania.
Kenya, Uganda and Tanzania face unfavourable cereal production prospects in 2023 due to adverse weather conditions, according to the report.
The Southern Africa region has seen a slowdown in economic growth over the past year as its largest economy, South Africa, confronts multiple challenges. Civil unrest, electricity crisis and natural disasters have contributed to dampen prospects for the region, which is lagging behind the others in Africa, according to the African Development Bank’s new economic report.
The 2023 Southern Africa Economic Outlook, launched on Monday 24 July, analyses the recent economic trends and developments in Southern Africa. In line with this year’s theme for the annual outlook: mobilizing private sector financing for climate and green growth in Africa, the report also explores the potential role of the private sector in financing the region’s climate action and green growth ambitions.
In 2022, the Southern Africa region’s GDP growth barely reached 2.7 percent, a level much lower than global and African averages of 3.4% and 3.8 %. Growth in the region is expected to slow down further in 2023 to 1.6%, followed by a slight improvement - 2.7% - in 2024. Weighing down the environment further is the external debt burden which is forecast to remain high across the Southern Africa region. In 2022 it stood at 48%.
Speaking during the launch, Kevin Urama, African Development Bank vice president and chief economist commended African governments for their “remarkable resilience,” in the face of recent challenges.
Quoting from the report he said financial needs for climate action in southern Africa stood at $1 trillion, with an annual requirement of $90.3 billion for 2020-2030. Average annual climate finance flows to Southern Africa stand at $6.2 billion, a mere 6.9% of what is required. Southern Africa, in addition, received the least financial flows relative to its financial needs, compared to other African regions.
“We estimate that the continent will need about $235-$250 billion annually between now and 2030 to meet investments needed under the Nationally Determined Contributions. So this leaves Africa, the African private sector and the global private sector with an investment opportunity of up to $213.4 billion annually to address climate change alone,” he said.
Africa’s regional integration realized through the implementation of the African Continental Free Trade Area (AfCFTA) is imperative to the continent’s economic growth and development, says outgoing Joe Attah-Mensah, Principal Policy Adviser at the Economic Commission for Africa (ECA).
“What many Africans aspire for is that the 55 fragmented economies on the continent become integrated into one strong, robust, diversified and resilient economy,” said Mr. Attah-Mensah, in a farewell seminar on the theme: ”Is Africa Integrating or Disintegrating? A Reflection over the last 20 years and the future”. The seminar was organized by ECA staff to mark his retirement.
In a presentation punctuated by sayings and statements by Africa’s founding leaders, Mr. Attah-Mensah stressed that an integrated Africa is underpinned by a first-class trans-boundary infrastructure, a highly educated, flexible and mobile workforce as well as highly mobile financial capital. Furthermore, sound health facilities, peace and security are vital in supporting an integrated Africa.
Mr. Attah-Mensah, called for investment in and ”strengthening of the supply chain infrastructure, such as transportation, communication, utilities and technology to support the AfCFTA.”
What next for EAC after EU-Kenya trade deal? (Monitor)
In the first part of the Economic Partnership Agreement (EPA), a pact that is looking to flung open the domestic market of Least Developed Countries (LDCs) like Uganda for the European Union (EU) countries manufactured goods, we revealed how this deal is silently disintegrating the East African Community (EAC) bloc instead of unifying it in the spirit of regional integration.
After showing her hand for all to see because of fear of attracting tariffs on mainly flower and vegetable exports to European Union (EU) countries if she doesn’t sign the Economic Partnership Agreement (EPA), Kenya has sacrificed what some have termed as “long-term success for a short term gain.”
According to continental trade and investment treaty analysts, Kenya should factor in the long term losses that the EPA will inflict on itself and the region in terms of loss of revenue, negative impact on industrialization and intra-regional trade, and on overall development.
Following thorough review of the EPA, experts conversant with trade and investment treaties as well as multilateral and bilateral negotiations from the continent (Africa) still came to a conclusion that it is not worth it for Kenya and the region to append their signature on the dotted line for as long as the agreement is in its current form.
The service sector has emerged as the driving force towards reshaping economic landscapes across the world. With 54 African countries, 1.3 billion people, and $3.4 trillion in GDP, it’s time to leverage significant opportunities for export-led growth, economic diversification, inflows of foreign direct investment (FDI) and integration into regional and global value chains.
At the Thirteenth COMESA Meeting of the Committee on Trade in Services, that kicked off today in Mombasa, Kenya, COMESA Director of Trade and Customs, Dr Christopher Onyango, remarked that trade in services is a game changer towards unlocking the potential of regional and global trade.
“The service trade has been proven to promote greater inclusiveness, particularly for female and young workers and entrepreneurs as well as micro, small and medium-sized enterprises (MSMEs). The importance of the sector has been fuelled by technological changes and its increasing role as intermediate inputs into production and delivery of other goods and services’’ he stated. “But these attributes can only be realized if services are mainstreamed in regional and national development strategies. It is evident that services are still absent in national development strategies. Such are those countries in which there exist no rules and regulations in the service sector, or in only a few select sectors and, if available, are not considerate of current developments in the sector’’ he remarked.
ECOWAS Parliament Speaker Advocates Inclusion Of Vulnerable Groups In Decision Making (Voice of Nigeria)
The Speaker of the Economic Community of West African States, ECOWAS)l Parliament, Sidie Mohammed Tunis has advocated for the inclusion of vulnerable and marginalized groups in decision making in the region. According to Dr Tunis, supporting the participation of people from vulnerable and marginalized groups in the decision-making and democratic processes of the societies was key to continued peace, security and sustainable development.
“As we all know, inequality has been one of the bases or causes of subversive acts in our region.” The marginalization of vulnerable groups from important decision-making processes, particularly ethnic or religious minorities, women and young people, provides fertile ground for conflict of violent extremism, according to Dr. Tunis. “We must convince ourselves that supporting the participation of people from vulnerable and marginalized groups in the decision-making and democratic processes of our societies is imperative for peace, security and sustainable development.”
UK-Pan Africa region development partnership summary, July 2023 (GOV.UK)
The Strategy for International Development (IDS) places development at the heart of the UK’s foreign policy. It sets out a new approach to development, anchored in patient, long-term partnerships tailored to the needs of the countries we work with, built on mutual accountability and transparency. This approach goes beyond aid and brings the combined power of the UK’s global economic, scientific, security and diplomatic strengths to our development partnerships.
By 2030, one in 5 of the world’s population will be African. The continent will play an increasingly important role in shaping global dynamics. Geostrategic competition in Africa will intensify over the next decade. This competition will also shape – and be shaped by – the actions of African actors.
Many African countries are already suffering from the long-term economic impact of the COVID-19 pandemic, which has been exacerbated by the Russian invasion of Ukraine. Almost half of sub-Saharan African countries are either in debt distress or at high risk of debt distress. Poor infrastructure, a weakly developed private sector, and barriers to trade continue to limit the potential for economic growth, investment, and job creation.
Sub-Saharan Africans are amongst the least responsible for causing climate change, but many are expected to be the most vulnerable to its impacts. Increasingly frequent and severe droughts and floods are driving new patterns of displacement and leading to greater numbers of people facing acute food insecurity outcomes. Adapting to address these trends is vital for our long-term interests.
Our support to trade and investment in Africa includes support to the AfCFTA, which will help the world’s largest trading area finalise key negotiations between member states and move the agreement into operation. The Africa Food Trade and Resilience programme is working to build the resilience of food systems across the region, which will help to address some of the priorities set out at the Dakar 2 ‘Feed Africa’ Summit in January 2024. We will also facilitate investment into Africa by supporting engagement with BII and British Investments Partnership (BIP) tools across Africa as well as supporting delivery of the UK-Africa Investment Summit in April 2024.
Arab-Africa Trade Bridges Program invests $1.5bn in food security initiative (FoodBev Media)
The Arab-Africa Trade Bridges Program (AATB) – a programme aimed at promoting and increasing trade and investment between African and Arab member countries – has launched a $1.5 billion programme to address ongoing challenges amid the global food security crisis.
During a hybrid launch event, which took place at the headquarters of the African Export-Import Bank in Cairo this month, members of the AATB’s executive committee emphasised the relevance of the new food security programme to their member countries.
With the launch of the programme, AATB hopes to leverage its expertise, resources and partnerships to implement targeted actions that address the specific food challenges faced by each member country. The programme is centred around AATB’s four pillars: Trade, Investment, Insurance and Infrastructure.
Digital Skills Provide a Development Path for Sub-Saharan Africa (Harvard Business Review)
Sub-Saharan Africa is urbanizing with massive rural-urban migration. But unlike the urbanization of the Western world, Sub-Saharan Africa is missing a critical component: industrialized urban cities. Because of this, these urban areas have become overcrowded with substandard housing and severely inadequate infrastructure to cope with unplanned population growth.
Fortunately, a new development playbook to solve this problem is already evolving, and it is anchored on the young people equipped with advanced digital skills in Sub-Saharan Africa. These young workers are digitally savvy, creative, and can lead a massive transformation — if they’re equipped and supported to unlock their potential.
They can export digital skills to Western Europe, United States, and Asia through the unbounded and unconstrained opportunities the internet has provided through “digital jobs” from music to software development to prompt engineering. But to scale this and make it a success, changes must be taken into consideration at both the policy level and in implementation in the areas of quality digital education, tax treaties and harmonization, and outsourcing-focused startups.
Growing telecom infrastructure in Africa is a huge opportunity (Bizcommunity)
One of the key findings of a market study by TeleGeography is the substantial increase in transit route capacity across the continent and the growth of intra-Africa traffic. More digital content is being serviced within Africa than ever and at a rapidly growing rate.
The expanded capacity in both subsea cable and terrestrial fibre has translated into large IP bandwidth growth, price declines in bandwidth, growth in localised data centres and, as a result, enhanced connectivity and improved user experiences.
Subsea cable, terrestrial fibre and data centre investments are making Africa the top-growing bandwidth market globally, with projected compound growth of 42% between 2022 and 2029, surpassing the global average projections of 32%. Content providers have experienced 80% compound annual growth rates in African bandwidth between 2018 and 2022.
Introducing new submarine cable systems is expected to increase capacity for coastal and landlocked countries, increase the number and size of intra-African routes, decrease transit prices along key African routes, and boost localised digital content growth.
The report also highlights that despite the historical internet traffic routes from Europe to Africa, South Africa has become a growing regional hub for intra-Africa internet capacity, with the percentage of traffic servicing sub-Saharan Africa becoming more intra-Africa than traditionally serviced from Europe.
Russia-Africa summit: Here’s what Vladmir Putin and Moscow stands to gain (The East African)
Forty-three African heads of state attended the 2019 Russia-Africa summit. They had high hopes that Russia would emerge as a new source of investment and trade for the continent. Russian President Vladimir Putin promised to double Russian trade with Africa in five years to US$40 billion.
Since then, Russian trade with the continent has contracted to US$14 billion. It is lopsided, with Russia exporting seven times as much as it imports from Africa. Additionally, 70% of this trade is concentrated in just four countries: Egypt, Algeria, Morocco and South Africa.
Russia invests very little in Africa. It accounts for 1% of the foreign direct investment that goes to the continent. Mauritius is a larger source of foreign direct investment for Africa. Additionally, Russia’s gross domestic product has shrunk in value from US$2.3 trillion in 2013 to US$1.8 trillion in 2021.
Despite these diminishing economic ties, Russia’s influence in Africa has rapidly expanded since 2019. It has deployed troops to the continent and become the dominant external partner in a handful of countries. Russian disinformation campaigns in at least 16 African countries are shaping the information environment on the continent.
Caricom pleased with African talks (Jamaica Observer)
The Caribbean Community (Caricom) Secretary General Dr Carla Barnett says there has been progress in trade and investment between Africa and the 15-member regional integration grouping following the commitment given by the leaders during their first Caricom-Africa summit in 2021.
In a virtual address to the annual Global Africa People-to-People Forum 2023 held over the last weekend, Barnett described the inaugural summit in 2001 as a “landmark occasion” allowing both regions to engage on matters of mutual interest and determine the direction for deeper cooperation.
“Caricom and Africa have made progress in trade and investment relations, with strong support from Afreximbank. A formal partnership has been established, and the Caribbean headquarters is scheduled to be opened in Barbados in a few weeks’ time,” Barnett said. She said this will allow Caricom countries to access financing for trade promotion in a range of sectors.
“The possibility of utilising the pan-African payment and settlement system as a method of intra-regional payments within the Caribbean is also being explored,” she said, adding that as a a follow-up to the summit’s discussions on strengthening trade and investment.
Global Economy on Track but Not Yet Out of the Woods (IMF)
The global economy continues to gradually recover from the pandemic and Russia’s invasion of Ukraine. In the near term, the signs of progress are undeniable. The COVID-19 health crisis is officially over, and supply-chain disruptions have returned to pre-pandemic levels. Economic activity in the first quarter of the year proved resilient, despite the challenging environment, amid surprisingly strong labor markets. Energy and food prices have come down sharply from their war-induced peaks, allowing global inflation pressures to ease faster than expected. And financial instability following the March banking turmoil remains contained thanks to forceful action by the US and Swiss authorities.
Yet many challenges still cloud the horizon, and it is too early to celebrate. Under our baseline forecast growth will slow from last year’s 3.5 percent to 3 percent this year and next, a 0.2 percentage points upgrade for 2023 from our April projections.
The slowdown is concentrated in advanced economies, where growth will fall from 2.7 percent in 2022 to 1.5 percent this year and remain subdued at 1.4 percent next year. By contrast, growth in emerging markets and developing economies is still expected to pick-up with year-on-year growth accelerating from 3.1 percent in 2022 to 4.1 percent this year and next.
This average, however, masks significant differences between countries, with emerging and developing Asia growing strongly at 5.3 percent this year, while many commodity producers will suffer from a decline in export revenues.
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Duty-free maize imports plan flops on costly supplies (Business Daily)
Kenya’s plan to import about 900,000 tonnes of white maize by next month has run into headwinds on costly global supplies. The latest data from the Ministry of Agriculture and Livestock Development show barely one-third of the desired imports had landed in the country by the end of June, ahead of closure of the duty-free import window next month. Between February and the end of June, the ministry reported importation of a mere 259,470 tonnes of maize, which represents just 29 percent of expected imports.
Moreover, the bulk of imports has come from the region as opposed to being sourced from outside the East African Community and Comesa as earlier expected.
“All imports (in June) were from East Africa Community countries, mostly Tanzania. According to the Kenya Grain Millers Association, the reduced imports are due to a generally tight global market, coupled with reduced local demand which is attributed to lower purchasing power,” the ministry said in its latest food and nutrition security bulletin.
“It is further noted that although the government gave a duty-free import window for maize outside the EAC and Comesa, very little has been imported by the legible millers and traders as they report inadequate global supplies, higher freight and insurance costs as well as a shortage of the dollar. The imported maize arriving at Mombasa is slightly more expensive compared to local supplies.”
Uganda’s dairy sector counting losses as Kenya blocks exports (The East African)
On June 23, 2023, Brookside Dairy Uganda sent home at least 200 workers saying it has been forced to cut production by 75 percent as it has been unable to export the milk produced since March. Kenya is Uganda’s largest market in East Africa and Brookside says Nairobi has declined its 116 export permit applications.
This development, which is blamed on the supremacy battle between the regime of President William Ruto and his predecessor Uhuru Kenyatta, whose family owns Brookside, has left Ugandan milk farmers and processors on the brink of economic ruin, and Kampala is now aggressively looking for markets farther outside the region.
An earlier milk export deal brokered by President Yoweri Museveni with Algeria seems to have fallen through, and on Wednesday this week, Museveni asked visiting Senegal President Macky Sall to allow Ugandan milk into his country. President Sall pledged to buy milk powder from Kampala, giving a glimmer of hope to the local producers.
“In Senegal, we import things from New Zealand and Brazil. We import powdered milk from these countries. We need to see how we can come and buy your milk,” the President said at State House Entebbe, where he was gifted samples of Uganda’s milk by his host.
Uganda registers Shs463.7b trade surpluses with EAC states (Monitor)
Uganda’s Trade Balance with the East African Community indicates that the country registered a surplus of $127.3 million (Shs463,734,932,300) with the four countries. The Ministry of Finance Planning and Economic Development has revealed that Uganda registered trade surpluses with all the East African Community partner states except for Tanzania and Burundi, which implies that trading activities are steadily growing with other member states.
“The largest trade surplus was with DR Congo ($55.1 million), followed by South Sudan $51.0 million), Rwanda ($17.6 million) and Kenya ($3.6 million) respectively,” said the Ministry of Finance. The EAC remains Uganda’s main trading bloc in the continent because of regional integration. Regional integration helps countries overcome divisions that impede the flow of goods, services, capital, people and ideas.
Rwanda, Congo-Brazzaville sign deal to trade under AfCFTA (The New Times)
Rwanda and the Republic of Congo on July 22 signed an agreement to fast-track trade and economic cooperation under the African Continental Free Trade Area (AfCFTA).
The agreement was signed by Jean Chrysostome Ngabitsinze, Rwanda’s Minister of Trade and Industries, and Denis Christel Sassou Nguesso, the Minister of International Cooperation in Congo-Brazzaville. The deal’s signing was presided over by President Paul Kagame and President Denis Sassou Nguesso.
The Minister of Foreign Affairs and International Cooperation, Vincent Biruta, said the Congolese President’s visit was an opportunity to take stock of the progress made so far in terms of implementation and to identify strategic areas to focus on.
He said the signing of the memorandum of understanding on preferential trade to enhance economic cooperation between the two countries under the AfCFTA, will be based on key strategic areas. The latter include economic projects that reflect a commitment to sustainable development, responsible resource management, and economic growth.
Nigeria is not maximising AfCFTA opportunities - Experts (Businessday NG)
Nigeria has fallen behind its regional counterparts in harnessing the full potential of intra-African trade, despite signing the African Continental Free Trade Area (AfCFTA) agreement in 2019.
As intra-African trade remains sluggish, a key factor contributing to the stagnation is the limited information available to manufacturers and the bureaucratic hurdles hindering their participation in the ambitious trade pact. And although the first practical trade activity under the AfCFTA regime was held in September 2022, neighbouring Rwanda, Cameroon, Egypt, Ghana, Kenya, Mauritius, Tanzania, and Tunisia are already operating without Nigeria, having met the minimum requirements for trade under the Agreement.
“So far, the practical implementation of AfCFTA started in September 2022, with the export of coffee products from Rwanda to Ghana; and export of Exide Battery from Kenya to Ghana, under the Guided Trade Initiative (GTI) within the eight state parties that have met the minimum requirements for trade under the Agreement,” said Odiri Erewa-Meggison, Ag. chairman, MAN Export Promotion Group. “These countries are already operating on the GTI without Nigeria,” she added, during her opening speech at the two-day capacity-building training for members of the Manufacturers Association of Nigeria Export Promotion Group (MANEG).
Franca Achimugu, coordinator, strategy & planning, AfCFTA Nigeria Secretariat has said the government of Nigeria will have to set in more initiatives that will encourage people to produce for Nigeria, as export is more economically viable and will before long, have many manufacturers looking its way. “It’s going to be a lot of disservice to Nigeria if we do not saturate our domestic market and we head for other markets, because in the whole of Africa, we are the ones that have the population, and that means latent demand, and that means that other countries are looking at us to send their products here,” Achimugu said.
EAC currencies gain against dominant Kenyan shilling (Business Daily)
The Kenya shilling has lost nearly 20 percent of its value against regional currencies in under a year, weakening its dominant position in the region in a trend that is serving pain to traders importing goods from Uganda and Tanzania. The Kenyan currency is now priced at about 19.7 percent lower than the Uganda shilling when compared with mid-July last year while its value against the Tanzania shilling and Rwandese franc has also dropped by 12.1 percent and 4.4 percent respectively in the same period.
The continued weakening of the Kenyan shilling against the currencies of Uganda, Tanzania and Rwanda means that Kenyan exports into the region are fetching far much less than before. For instance, goods that used to cost Ugandan traders Sh1 million to import around March 2020 now cost less by about Sh292,000 thanks to the weakened Kenyan shilling. However, Kenyans buying from Uganda are disadvantaged since they now spend about Sh1.3 million to buy the same quantity of goods that they could get from the landlocked East African country for Sh1 million in March 2020.
“Importing goods in the region is becoming difficult for business. Many of us have had to cut on the volume of goods we are importing or have had to increase money to get the same volume of goods we used to get say a year earlier,” said Mr Karanja in a phone interview.” And since selling prices for these goods are not changing that much here in Kenya, our profit margins have been dropping. We are worried that reversing this free fall of the shilling is going to be difficult.”
EA ministers approve $4m Northern Corridor budget (The East African)
Northern Corridor Council of Ministers has approved $4.35 million budget for the next fiscal year, some $1.18 million less than it did in the past fiscal year. The executive committee has also approved an entity that seeks to address non-physical barriers to trade to enable the Northern Corridor to compete with the Central Corridor. The entity, Northern Corridor Transit and Transport Coordination Authority (NCTTCA), is expected to streamline customs procedures, reduce bureaucracy, and harmonise trade policies and regulations.
In a joint communique after the 35th meeting of the Northern Corridor Council of Ministers in Kigali, the council also delved into how to improve intermodal transport in the Northern Corridor region and the need to work on joint railway projects.
“The secretariat should continue bringing together all the six member states to promote rail and inland waterways transport to ease the pressure on the road network and work towards enhancing a seamless movement of goods along the corridor and reiterated the need to fast-track and operationalise the use of oil jetties on Lake Victoria in the transfer of oil products,” said the ministers. In May, Kenya and Uganda begun seeking an alternative financier for the standard gauge railway to connect Naivasha and Kampala via Malaba.
Nigeria, Benin Meet on ECOWAS Trade Liberalisation Scheme Monday (THISDAYLIVE)
Nigeria and the Benin Republic have agreed to meet on Monday, July 24, on the provisions of the ECOWAS Trade Liberalisation Scheme (ETLS).
Adeniyi explained that the meeting, which would hold in Benin Republic, would set the tone for trade agreements beneficial to both countries to deepen the provisions of the ETLS as a precursor to the African Continental Free Trade Area (AfCFTA). He pointed out that preferential trade agreements “has been the bedrock of prosperous nations across the world.” He added that the development of geopolitical blocs “is hinged on policies and agreements which grant trade benefits to nations believed to share complementary needs.”
He said such symbiotic relationship “is needed to enhance the efficiency of the customs services of both countries as behoves neighbours and to strengthen the process of trade facilitation and economic development.
ACHPR75: A human rights-centred approach to the implementation of the AfCFTA (ISHR)
The panel started with Commissioner Solomon Ayele Dersso highlighting that while implementing the African Continental Free Trade Area (AfCFTA) project, States have an obligation to prevent exploitative economic relations, particularly with international monopolies. In addition, he stated that trade liberalisation should not lead to commodifying essential social services, including health, education, water and food.
“Trade and human rights have tended to remain on ‘the parallel, separate and sometimes inconsistent tracks’ on which they developed”, stated Brenda Kombo, a fellow of the Institute for Global Law and Policy, quoting Professor Makau Mutua and Professor Robert Howse.
Additionally, Kombo referred to Professor Babatunde Fagbayibo, who characterised the AfCFTA processes as State-centric, and to the 2016 statement of civil society actors, which described the AfCFTA as a project excluding civil society and private sector involvement until now. The African Union and the AfCFTA Secretariat have undertaken efforts to encourage greater participation in the processes. However, Kombo called for the meaningful participation of a broad range of actors, who are the beneficiaries of free trade, in the AfCFTA processes.
US-EAC trade pact comes into life amid disharmony (The East African)
The Trade and Investment Framework Agreement (Tifa) between the US and the East African Community has begun taking shape, with a section of the bloc’s members keen on it and others still biding their time. This week, US officials were in Nairobi to conduct part of the negotiations on the US-Kenya Strategic Trade and Investment Partnership and to meet Trade ministers from the region.
“The EAC members have their own very important dynamics in terms of engaging as a region on economic matters. This is really important for the US to show up as a partner that wants to strengthen regional integration, and our partnership with the region and other specific engagements,” she said.
US Trade Representative Katherine Tai
The meeting addressed market access issues, labour, environment, protection and enforcement of intellectual property rights and capacity building.
Dr Mathuki told The EastAfrican that the forum was important to the US because the EAC “is becoming attractive to others because of market size and improved business environment.”
They also used the forum to discuss the future of the African Growth and Opportunity Act (Agoa), which expires in 2025.
U.S. plans trade missions in South Africa, Ghana; unsure of Nigeria (Peoples Gazette)
The U.S. government says it will embark on a global entity of trade enterprise with African nations, including South Africa and Ghana, but it is sceptical about Nigeria due to the country’s foreign currency rate barrier. The United States Department of Commerce, International Trade Administration (ITA) disclosed this in a statement published on the U.S. government federal register in February. According to the statement, the ITA will be responsible for recruiting, organising and implementing the global trade mission between August 6-15, 2023.
“After South Africa, the mission will proceed to Ghana in West Africa,” it said. “In Ghana, mission participants will have the opportunity to participate in pre-arranged B2B meetings with potential partners and customers, as well as a potential site visit to a manufacturing facility.”
It added, “Given recent government regulations imposing additional tariffs on automotive imports, this sector is no longer considered viable for American automotive exporters. Companies involved in ICT and Safety & Security will be better situated for B2B meetings in Ghana.”
“After Ghana, mission participants have the option to proceed to the optional stop in Nigeria for two days after a weekend break. In Nigeria, participants will have B2B meetings with potential partners and customers. ”This stop will be optional as some of the target sectors for this mission face foreign exchange barriers, making it difficult to enter and compete in the Nigerian market. ”It is noted that some consumer goods, including textiles and cosmetics/toiletries, are among the products that face this difficulty. The mission will conclude in Nigeria,” the U.S. statement read.
President Ramaphosa to lead delegation to Russia-Africa Summit (SAnews)
“This second summit is expected to consider four declarations and a three-year Action Plan, which will be presented for consideration. These submissions will focus on strengthening cooperation between Russia and African States in politics, security, trade, science, IT, humanitarian support, education, culture, sports, youth and the environment.
“The declarations also seek to strengthen cooperation in the fight against terrorism, the prevention of an arms race in outer space, and in information security,” the President’s office said in a statement.
President Cyril Ramaphosa is expected to lead the South African delegation to the second Russia-Africa Summit to be held at St Petersburg in the Eastern European country on Thursday and Friday.
Could Supply Chain Security Take U.S. Firms to Africa? (RealClearDefense.com)
Beginning in August, China will levy export controls on two critical minerals: gallium and geranium. These metals are essential to semiconductor technology and restricting access to them marks Beijing’s latest volley in its strategic power competition with Washington and will significantly disrupt U.S. and Taiwanese chip manufacturers.
The global mineral supply chain is already narrow and China has an overwhelming lead with respect to rare earth metal extraction and processing. This market dominance enables Beijing to manipulate access seemingly at-will. Beyond minerals, China’s status as the world’s top manufacturer also makes raw material building blocks like plastics, chemicals, and agriculture products vulnerable to Beijing’s geopolitical ambitions.
For U.S. industry dependent upon reliable supply chains, this vulnerability underscores the need to pursue a pivot. Decoupling is unrealistic, but diversifying supply is a necessary long-term strategy. For American interests pursuing new, secure supply chains, Africa represents a key opportunity.
For the American firms also interested in engaging Africa as a supply chain partner, support exists for their first steps.
During the past 20 years, U.S. government efforts have encouraged safer trade and investment conditions, and current initiatives such as Prosper Africa and Power Africa align American industry with tools like risk insurance, business intelligence, and matchmaking. The Africa Growth and Opportunity Act also adds import provisions, and the African Continental Free Trade Area‘s further facilitates supply avenues and promotes trade through tariff removal between African states, regional cooperation, common rules, and regulatory reform.
Like any emerging market, Africa is not without risk.
Brics opportunities must not be at expense of other trade relations (Engineering News)
South Africa’s representatives do not seem to realise that the opportunities presented by the Brazil, Russia, India, China and South Africa (Brics) trade bloc must not be at the expense of other trade relationships and that South Africa’s trading relationships with the West are essential to its economic well-being, said business organisation Business Leadership South Africa (Busa) CEO Busi Mavuso.
“The Brics bloc is a positive opportunity for South Africa and it is right for government to cultivate relationships with Brics. India and China, in particular, are massive and fast-growing markets that South African businesses can benefit from. “However, our relationship with Brics must not come at the expense of our relationships with the West because, while the opportunities in the East are clear, our trading relationships with the West are essential to our economic well-being,” Mavuso said in a July 24 newsletter.
For example, Minister in the Presidency for Women, Youth and Persons with Disabilities Nkosazana Dlamini-Zuma, during a presentation to the Brics Youth Summit, decried those countries that prefer South Africa to ship raw materials to them, rather than manufactured goods. “However, she did not pause to consider that our relationships with India and China are overwhelmingly characterised by South Africa exporting raw materials and importing manufactured goods,” illustrated Mavuso.
“Immense harm would be done to our industrial base if we collapsed the trade relationships that currently sustain it without any competitive access to new trading markets. China, India and Brazil have huge populations that create potentially massive demand for goods we could potentially provide,”
BRICS leaders to discuss sustainable payment mechanism: Russian Foreign Ministry (The Economic Times)
One of the crucial topics the BRICS nations will consider at their summit next month is the establishment of long-term payment systems for cross-border commerce, the Russian Foreign Ministry said.
“Given the current international situation, this issue will be addressed during the upcoming meeting of the bloc’s leaders,” the ministry said on Friday, referring to the summit in Johannesburg, South Africa, on August 22-24, RT reported.
The use of national currencies in cross-border commerce is hindered, according to the Russian Foreign Ministry, by things like their restricted convertibility and higher volatility than the US dollar. The government also admitted that it would be a “delicate” process to possibly launch a new BRICS common currency.
The BRICS nations have been seeking to shift further from the US dollar in mutual trade, with the de-dollarization trend gaining momentum following sanctions that effectively cut Russia off from Western financial mechanisms. Numerous developing nations - including Russia’s fellow BRICS members China, India, Brazil and South Africa - have started to move toward alternative currencies in trade, RT reported.
South Africa became Chair of BRICS on January 1 this year under the theme: “BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development and Inclusive Multilateralism”.
“The theme informs the Chair’s five priorities for 2023 - Developing a partnership towards an equitable Just Transition; Transforming education and skills development for the future; Unlocking opportunities through the African Continental Free Trade Area; Strengthening post-pandemic socio-economic recovery and the attainment of the 2030 Agenda on Sustainable Development; Strengthening multilateralism, including working towards real reform of global governance institutions and strengthening the meaningful participation of women in peace processes,” according to the official statement.
China vows to aid Ethiopian recovery and boost ties with Kenya, Nigeria (South China Morning Post)
As the West steps up its diplomatic ventures into Africa, China has renewed its commitment to the continent, with debt relief and reconstruction pledges for Ethiopia and calls on new administrations in Kenya and Nigeria.
The commitments came as part of senior Chinese diplomat Wang Yi’s four-nation African tour, which will also include a visit to South Africa.
The commitments came as part of senior Chinese diplomat Wang Yi’s four-nation African tour, which will also include a visit to South Africa.
During an unannounced stop in Addis Ababa on Friday, Wang said China supported Ethiopia’s domestic reconstruction and economic recovery after the deadly Tigray war.
In a meeting with Ethiopian Prime Minister Abiy Ahmed, Wang, a Politburo member and director of the Office of the Central Committee for Foreign Affairs, said China “is willing to play a positive role in easing Ethiopia’s debt pressure”, according to a readout from China’s foreign ministry.
Ethiopia has an estimated US$13.7 billion in debt to China, much of it advanced by China Exim Bank between 2000 and 2021. Chinese capital has funded the US$4.5 billion Addis Ababa-Djibouti railway, along with other projects such as the capital’s Riverside Green Development and a light-rail network.
Abiy said he appreciated China’s strong support whenever Ethiopia faced difficulties and “regards China as a reliable and great friend”, actively taking part in the Belt and Road Initiative, according to the Chinese readout.
What future for seeds under the African Free Trade Area? (CADTM)
Given that intellectual property rights privatise agricultural biodiversity - our collective heritage and the cornerstone of food sovereignty - the implications of this protocol on seeds and the rights of peasants and rural communities in Africa must be carefully analysed.
Around the world, free trade agreements are forcing the privatisation of seeds, whether through patents or plant breeders’ rights. These rights enable seed companies to demand royalty payments from farmers for each generation of seeds they use, over a period of 20 to 25 years. According to seed companies such as Syngenta and Bayer, without these payments they will be unable to invest in research.
This same system is now rapidly gaining ground in Africa, potentially upsetting relationships between citizens within members states, and even between the member states themselves. Article 8 of the draft protocol addresses this issue. It stipulates that state parties shall provide protection for new plant varieties through a legal system that includes farmers’ rights, plant breeders’ rights, and rules on access and benefit sharing “as appropriate”.
Furthermore, it adds that states shall comply with “additional obligations” set out in an annex to be developed once the protocol is adopted. Upon adoption, this annex, along with the annexes on traditional knowledge and genetic resources, will have the same legal value as the protocol (article 41 of the protocol).
In a world of plenty, it is outrageous that people continue to suffer and die from hunger. The Food Systems Summit two years ago helped shine a spotlight on a core truth: global food systems are broken and billions of people are paying the price.
without access to financing and debt relief, developing countries are struggling to invest in food systems that can reach all people with the nutrition they need to live healthy lives. Meanwhile, unsustainable food production, packaging and consumption are feeding the climate crisis, generating one third of all greenhouse-gas emissions, using 70 per cent of the world’s freshwater and driving biodiversity loss on an epic scale. Many communities are one shock away from plummeting into food insecurity or even famine.
And that dire picture has grown bleaker with the Russian Federation’s termination of the Black Sea Grain Initiative that enabled the safe export of more than 32 million metric tons of food on more than 1,000 vessels from Ukrainian ports.
Broken food systems are not inevitable. They are the result of choices we have made. There is more than enough food in the world to go around. More than enough money to fund efficient and sustainable food systems to feed the world, while supporting decent work for those who grow the food we eat. And more than enough agricultural innovations and technology that can place healthy food within reach of every person.
Climate change: Which countries will foot the bill? (Hellenic Shipping News)
Record-breaking heat in China. Wildfires forcing Swiss villages to evacuate. Drought ravaging Spanish crops. As the costs of climate change rack up, a debate is surging among governments: who should pay?
The question has been in the spotlight amid this week’s climate talks between the U.S. and China, where the world’s two biggest economies tried to find ways to work together on issues ranging from renewable energy deployment to climate finance ahead of this year’s U.N. climate summit, COP28, in Dubai.
Given China’s rapid economic growth and increasing emissions, pressure has grown on Beijing to join the group of countries providing this funding.
“It’s difficult to argue that countries like China, Brazil or Saudi Arabia should still be put at the same level as the least developed countries and small island developing states,” a diplomat from one European Union country told Reuters. The EU, today the biggest contributor of climate finance, has
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Demand aggregation, pricing clarity, standardisation needed to drive hydrogen infrastructure investment (Engineering News)
Infrastructure is needed to enable the global energy transition to meet climate goals by 2050, but commercial banks and senior debt funders are deterred from investing in hydrogen infrastructure owing to uncertainty surrounding pricing, offtake demand and stranded assets as research and development take place in this nascent industry, financial experts outlined during the 2023 Hydrogen Economy Discussion event this week.
This was a nascent industry and green hydrogen was not a single term. However, while it was evolving, hydrogen did present opportunities for the private sector to invest for industrialisation, said financial services firm Nedbank corporate and investment banking infrastructure, energy and telecommunications head Mike Peo.
“Green hydrogen presents significant private-sector-led opportunities, including for mining houses. South Africa has proven that it is capable of building a renewable energy market that can compete globally in terms of price. “Given South Africa’s mineral and resources endowments, green hydrogen represents similar opportunities. However, there is no well-priced market for green hydrogen currently and most commercial banks in South Africa do not fund early-stage developments,” he noted.
Zim economic growth seen at 5,3pc in 2023 (The Herald)
ZIMBABWE’S economy is projected to grow by 5,3 percent this year, better than initial estimates, on the back of improved farm yields, better electricity supply, and strong mineral prices, according to the Ministry of Finance and Economic Development.
The revised economic growth is ahead of estimates by the International Monetary Fund (IMF), the World Bank, and the African Development Bank (AfDB), which have projected the economy would expand by 2,5, percent 3,6 percent and 2,8 percent, respectively.
Zimbabwe had a strong performance in agriculture, with key crops surpassing output targets due to a better season. For instance, tobacco production has reached 290 million kilogrammes, significantly higher than the 230 million kg initially projected. Similarly, wheat and maize output is also expected to breach record levels while cotton production is expected to increase by 100 percent to 100 000 tonnes this year.
Tanzania emerges as top choice for investors, backed by President Suluhu’s confidence (Business Insider Africa)
In a now-viral video that sparked mixed reactions from neighbouring nations, President Suluhu confidently proclaimed Tanzania as a magnet for investors, witnessing an unprecedented influx of businesses that promised to reshape the nation’s economy.
Her call for unity and constructive addressing of grievances took centre stage during the address. She emphasised that discord and confrontations among leaders could deter potential investors from considering the affected country, opting instead for Tanzania’s welcoming investment landscape.
Nigeria maintains largest African economy for fifth year in a row as Egypt catches up (Nairametrics)
Nigeria maintained the position of the largest economy on the African continent for the fifth consecutive year in 2022, with a nominal GDP of $477.4 billion. The giant of Africa, as it is mostly referred to, accounted for 17.4% of the African economy in the review year ($2.7 trillion). This is according to data released by the World Bank. Nigeria has topped this list since 2018 when it overtook South Africa as the largest African economy.
According to the World Bank, Nigeria’s economy grew by 8.3% year over year in 2022 from $440.8 billion recorded in the previous year. Egypt followed with a GDP estimate of $476.7 billion, having recorded a 12.3% growth in its GDP from $424.7 billion in 2021. In third position was South Africa with an estimate of $405.9 billion.
Nigeria still imports 80 per cent of pharmaceutical inputs (Tribune Online)
Pharmacist and Chief Executive Officer (CEO) of ST. Racheal’s Pharm. Mr. Akinjide Adeosun, has expressed concern over the state of Nigeria’s Pharmaceutical industry whereby 80 percent of inputs used in manufacturing are still being imported.
Specifically, he lamented that just about 30 percent of pharmaceutical brands were manufactured locally, leaving about 70 percent to importation, hence the need for support to change the narrative as “we cannot constantly be dependent on others”
Speaking at St. Racheal’s Pharma Finance Forum held on Wednesday, July 19, with the theme: “Manufacturing Renaissance in Nigeria,’’ Adeosun called on national and sub-national governments to support pharmaceutical industries through Public Private Partnership (PPP) models, adding that there is also a need for industry operators to network with the government to have a good grasp of policies and how to align with them.
First shipment of resin exported to Cameroon under AfCFTA (TAP)
Tunisia on July 17 exported its first shipment of resin to Cameroon under the African Continental Free Trade Area (AfCFTA), announced the Export Promotion Centre (CEPEX). Customs clearance of the shipment, which includes 60 tonnes of resin worth €90,000 (around TND 204,000), was carried out by the Cameroonian institution of the “Port Autonome de Kribi” (PAK). This operation marks a decisive step towards closer economic cooperation within the AfCFTA, added CEPEX in a press release issued on Tuesday.
“It will offer opportunities for fruitful exchanges between the participating countries and pave the way for a promising future for Africa’s economic integration.” Tunisia’s Ambassador to Yaoundé Karim Ben Bécher underlined the importance of this first operation between Tunisia and Cameroon, which remains Tunisia’s leading partner in Central Africa and its 4th largest client in sub-Saharan Africa.
Liberia Nearing Domestication of Continental Free Trade Agreement (Liberian Observer)
The Liberian legislature has ratified the African Continental Free Trade Area (AfCFTA), which aims to create one of the largest free trade zones in the world since the World Trade Organization was created in 1995. The move by the 54th legislature, which now paves the way for the President’s signature, comes at a time when Liberia is yet to fully domesticate the agreement — being the only country in Africa not to have done so — since AfCFTA entered into force on May 30, 2019.
The AfCFTA, which aims to eliminate trade barriers and boost intra-Africa trade, would greatly benefit the country as it opens up a vast continental market for Liberian products — forcing the country directly to diversify its export base and reduce its dependence on traditional trading partners. It also presents Liberia with a unique opportunity to improve its infrastructure and logistical capabilities.
African energy experts make progress on continental power system masterplan (The North Africa Post)
Energy stakeholders from across Africa who convened at a recent meeting in Benin’s capital, Cotonou, managed to made significant strides in the establishment of the African Single Electricity Market (AfSEM) and the development of the Continental Power Systems Master Plan (CMP), paving the way for major developments to come in the energy sector.
The importance of a well-coordinated strategy to modernize Africa’s power infrastructure cannot be overstated. It is projected that the demand for electricity in the continent will triple by 2040, with industrialization, rapid urbanization, the growing middle class, and climate change being among other driving factors. To that end, the African energy experts attending the 3-day workshop managed to chart the path forward for the CMP and AfSEM initiatives, aiming to provide Africa with a reliable and sustainable power supply to meet the growing demands of its population.
Major developments are on the horizon as the CMP work plan enters its final development phase to produce an optimized integrated generation and transmission expansion plan for the 2023-2040 period.
Concern mounts in East Africa over halted Black Sea grain deal (Al Jazeera)
Russia’s decision on Monday to pull out of an agreement which allowed the export of Ukrainian agricultural goods via a safe channel through the Black Sea amid the continuing war is already reverberating far from the front lines of fighting in Ukraine.
For years, East African countries rattled by global climate change have relied on Ukrainian grain exports for sustenance. Now, an end to the agreement could lead to rising consumer prices, and further strain farmers and cash-strapped aid organisations already struggling to respond to challenges like conflict to drought, analysts say.
“We already know or can predict to a fair degree the impact the pausing of exports from that region to the rest of the world, especially East Africa and the Horn of Africa, will have on food prices,” said Debisi Araba, a food policy strategist and former managing director at the African Green Revolution Forum (AGRF).
With the grain initiative in the balance, African activists and economists are calling for climate-smart solutions to support local farmers and ramp up production, reducing import dependency. “We have to try and build self-sufficiency. Most of our constraints are on the supply side,” said Brain Sserunjogi, a fellow at the Economic Policy Research Centre in Uganda. “We have to invest in irrigation measures to make sure that we strengthen our production base for some of the food that we eat. We have to develop our local fertiliser industries.”
What Works to Narrow Gender Gaps and Empower Women in Sub-Saharan Africa? (World Bank)
Supporting Women Farmers to Maintain and Grow their Businesses
Employment in agriculture in Sub-Saharan Africa, although decreasing over the past 30 years, is still much higher than anywhere else in the world for both women and men. Productivity in agriculture in the region is low in general, and research focusing on selected countries shows that it is particularly low in female-managed farms. Giving women farmers the same access as men to productive resources and services could significantly increase agricultural output, boost economic growth, increase food security, and alleviate poverty in developing countries.
Facilitating knowledge exchange among farmers and providing participatory learning approaches have the potential to improve crop productivity and/or agricultural income of female farmers. Providing cash or in-kind transfers to female farmers are likely to improve female farmers’ ownership of animals and agricultural assets.
DG Okonjo-Iweala: Africa has many of the ingredients for digital success (WTO)
Director-General Ngozi Okonjo-Iweala said on 21 July that digital trade holds great promise to act as a catalyst for inclusive economic growth and sustainable development. “This promise is especially palpable in Africa,” she added. The Director-General was speaking at the launch of a joint WTO-World Bank policy note entitled “Turning digital trade into a catalyst for African development”.
The Director-General noted that reaping the opportunities of digital trade requires an adequate ecosystem, starting with good connectivity and encompassing other elements, such as sufficient skills, logistics and payments systems, and an enabling policy framework. Acknowledging the challenges that African countries face in this regard, she said that it is imperative that the international community steps up its action to support African countries’ efforts to benefit from digital trade.
The Southern Africa Development Community (SADC) Ministers of Finance and Investment and Governors of Central Banks has called for increased financial investment and portfolio diversification to achieve economic stability, stimulate growth and build economic resilience in the region.
In support of the implementation of the SADC Protocol on Finance and Investment, Honourable Kadima-Nzuji emphasised that, for SADC to attract investment capital, Member States must adopt prudent policy frameworks, promote harmonisation of financial and investment policies, enhance government efficiency and implement long-term financial regulations.
Ms. Angèle Makombo N’Tumba, SADC Deputy Executive Secretary for Regional Integration highlighted the importance of harmonising policies and improving the investment and business environment to achieve the microeconomic convergence, urging Member States to continue implementing essential frameworks, policies and recommendations. She also emphasised the significance of the Regional Development Fund in mobilising resources to finance the development of climate-smart infrastructure and technologies that increase agricultural production and industrial productivity and enhance intra-regional trade.
SAATM is the way forward (Africa Aviation News)
I believe that the SAATM and the AfCFTA are indissociable flagship projects of the African Union. In fact, the AfCFTA cannot be effective without the SAATM as the latter rests on the elimination of the non-physical barriers to the development of the air transport sector, the creation of a safe and reliable air transport industry, and the liberalisation of the aviation market in Africa, amongst others. These are equally the sine qua non conditions for the successful implementation of the AfCFTA.
My wish is that Africa can double its current air cargo figures over the next 5 years. The present forecast of ACI Africa for the air cargo sector in Africa unfortunately does not project such a robust growth despite the AfCFTA constituting the largest free trade area in the world in terms of participating countries.
Coming out of the pandemic, as airports look to ensure long-term financial sustainability through the diversification of their revenue streams, cargo has effectively become an important area to be explored. In light of the recent developments, many airports are now asking how they can capitalise on cargo’s resilience. The answer is not straightforward, and it will probably depend on many factors. Some of these factors are not even within the airport’s control which makes the process even more complex. There is, however, one consideration that applies to most airports, i.e. developing cargo takes time and effort.
On the positive side, with the newfound importance for air cargo, there is willingness from aviation stakeholders to invest in or contribute to its development. The development of a clear, well-thought-out cargo strategy, including a cargo master plan, is essential to growing this segment of airport’s portfolios.
Intra-African trade to liberate continent from foreign aid (Monitor)
The Deputy Speaker of Parliament, Thomas Tayebwa, has challenged African leaders to prioritise unrestricted trade with one another to save the continent from the burden of foreign aid.
He illustrated that whereas elite Africans criticize neocolonialism, several African governments have introduced foreign stockholders to usurp investment opportunities on the continent while undermining and ignoring natives with the same capability.
Mr Tayebwa also opined that trade, especially intra-African trade is the only instrument that African countries must embrace to liberate the continent from the burden of exploitation by foreign powers. “As Africa, trade not aid will liberate us - and for you to trade, you start with your neighbour. Many governments in Africa introduce investors who come with USD $1 million in investment but later claim investments worth USD $100 million,” he said.
According to Mr Tayebwa, intra-African trade can only be smoothly facilitated by travel and free movement of goods and services. He expressed concern over the fact that African governments impose unnecessary travel restrictions which continue to hinder the achievement of a united Africa.
A dialogue meeting that took place in Gaborone, Botswana, from 18th to 19th July 2023, involved the African Union InterAfrican Bureau for Animal Resources (AU-IBAR), the AUDA-NEPAD Planning and Coordinating Agency (NPCA), and the Regional Economic Communities. The meeting, held under the FishGov 2 Project was supported by the European Union, and attended by a total of twenty-five participants.
According to Dr. Domingos Dove, the Director of Food, Agriculture, and Natural Resources, who represented the SADC Executive Secretary, it is evident that our fisheries resources are facing significant challenges. These challenges include the detrimental effects of overfishing, the presence of illegal, unreported, and unregulated (IUU) fishing activities, pollution, the impact of climate change, and the degradation of habitats.
The delegates were provided with instructions to implement specific measures in order to guarantee the sustainable management of our fisheries and aquaculture resources.
ICCIMA calls for establishing new monetary mechanisms to boost trade with Africa (Tehran Times)
Head of Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) Hossein Selahvarzi has called for forming innovative monetary mechanisms in order to expand trade ties with Africa. Selahvarzi made the remarks in a meeting with Nigeria’s Ambassador to Tehran Yakubu Santuraki Suleiman on Thursday, the ICCIMA portal reported.
Speaking in this meeting, the ICCIMA head pointed to transportation and banking problems as the two main obstacles in the way of developing business relations between Iran and African countries, including Nigeria, and emphasized: “We must focus on finding innovative monetary mechanisms.”
Pandemic Fund Allocates First Grants to Help Countries Be Better Prepared for Future Pandemics (World Bank)
The Pandemic Fund’s Governing Board has approved grants under its first round of funding allocations aimed to boost the resilience to future pandemics in 37 countries across six regions. The selected projects will receive funding to strengthen disease surveillance and early warning, laboratory systems, and health workforce.
Established in September 2022, and formally launched under Indonesia’s G20 Presidency at the G20 meetings in Bali, Indonesia last November, the Pandemic Fund is the first multilateral financing mechanism dedicated to providing multiyear grants to help low- and middle-income countries become better prepared for future pandemics. The Fund, which is hosted by the World Bank, has already raised $2 billion in seed capital from 25 sovereign and philanthropic contributors.
Chair praises “more concrete” farm trade talks as members explore ways forward (WTO)
At agriculture negotiating meetings open to all WTO members on 17-18 July, the Chair — Ambassador Alparslan Acarsoy of Türkiye — praised the more concrete discussions among members on possible ways forward in the run-up to the 13th Ministerial Conference (MC13) in February 2024. He highlighted that MC13 is an important milestone in the negotiating process. “It should deliver on the MC12 commitment of trade ministers to take ‘concrete steps’ to facilitate trade and improve the functioning and long-term resilience of global markets for food and agriculture,” he said.
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IMF Executive Board Concludes 2023 Article IV Consultation with Kingdom of Lesotho
Lesotho’s economy continues to face a number of challenges in the wake of the pandemic. Climate shocks, delays to infrastructure projects, high food and fuel prices, declining diamond prices, layoffs in the textiles sector, and weak regional and external demand are weighing on activity. High public expenditure also continues to distort incentives and hinder private sector development.
The government is prioritizing fiscal consolidation on the back of windfall transfers from the Southern African Customs Union (SACU), which have helped alleviate near-term pressures on financing and reserves. However, the fiscal deficit deteriorated to 7.7 percent in FY22/23, due to lower revenue and rigid expenditure, with public debt increasing to almost 60 percent of GDP.
Looking ahead, the outlook is subdued with real GDP projected to grow at 2.1 percent in FY23/24 and average the same over the medium term. In the absence of stronger consolidation, the fiscal position is projected to deteriorate over the medium term due to lower SACU transfers, wage bill pressures, and recapitalization of the pension fund. The government is encouraged to push ahead with upfront growth-friendly fiscal adjustment to ensure debt sustainability and safeguard the exchange rate peg, alongside broad-ranging structural reforms to support the transition from government-centric to private sector-led growth.
Nestlé building $4.5m South Africa plant to boost local production (Supply Management)
Nestlé is spending R79m (around $4.5m) to build a production plant in Babelegi, Hammanskraal to meet local demand and support economic development. The factory will produce a range of coffee mixes in a bid to meet growing demand for the drink in the region, streamline supply chain operations and reduce its environmental impact.
Nestlé, which owns brands including Nescafé and Häagen-Dazs, has seen demand rocket in South Africa since the onset of the pandemic, with three-quarters (75%) of its revenue from across southern and eastern Africa originating from the country.
Nestlé East and Southern Africa region business executive officer for coffee and beverages, Carl Khoury, said: “We are excited to officially open our Nescafé coffee mixes manufacturing plant and demonstrate our dedication to the local market.” He said the move follows national policies including South Africa’s Reconstruction and Recovery Plan to develop infrastructure and industry and enhance its energy and food security. “We take pride in our investment in this production plant as it reflects our dedication to nurturing the potential of the region and contribution to rebuilding the economy,” he continued.
Brics: ‘Farming can fix SA’s post-Covid economic ruin’ (Food For Mzansi)
South Africa’s post-pandemic economic recovery has been sluggish since plummeting in the second quarter of 2020 – when lockdown restrictions were at their most stringent. Supporting agriculture, some believe, is key to turning the tide for South Africa’s economy. This is because it accelerates the development of the agro-food system and creates broad-based welfare gains for all people, agri-economic consultant Tlale Matseke said. Matseke was speaking during a panel discussion at this year’s Brics Youth Summit.
“A key strategy for post-pandemic recovery is supporting growth led by agricultural productivity, because this accelerates the development of the agro-food system and creates broad-based welfare gains for all people,” he said.
Tanzania jumps seven positions in the 2023 ranking of most powerful passports (The Citizen)
In a significant leap, the Tanzanian passport has advanced seven positions in the latest 2023 Henley Passport Index, now securing the 69th spot among the world’s most powerful passports. This marks a substantial improvement from its previous ranking of 76th in 2022. According to the updated ranking, Tanzanian passport holders enjoy visa-free travel to 73 countries.
Within the African continent, South Africa boasts the most powerful passport, holding the 51st position globally, with visa-free access to 106 countries. Botswana follows at 58th place, granting its passport holders access to 89 countries visa-free, while Namibia ranks 62nd, providing visa-free access to 81 countries. Lesotho stands at 64th place, offering visa-free access to 79 countries, and Eswatini occupies the 66th position, granting visa-free access to 77 countries.
US guarded on Kenya trade deal past Agoa expiry (Business Daily)
The US is non-committal about when negotiations for a free trade deal with Kenya will be concluded despite Nairobi earlier saying the talks would be finalised by December. The United States Trade Representative Katherine Tai, who concluded her three-day tour in Nairobi on Wednesday, indicated the US negotiators do not have a deadline for concluding talks or signing the proposed US-Kenya Strategic Trade and Investment Partnership (STIP).
The proposed trade deal, which does not have clauses on tariffs, is expected to shield Kenya in the event that the US Congress chooses not to renew the African Growth and Opportunity Act (Agoa), which gives countries in the sub-Saharan Africa duty- and quota-free access to the American market, when it expires in 2025. Kenya’s Trade Cabinet Secretary Moses Kuria had in March said he expected the negotiators to finalise talks in December to pave the way for the signing of the deal by April 2024.
Global supply constraints bite as maize prices rise in June (KBC)
Kenya’s maize imports fell to 386,864 bags last month compared to a high of 1,169,072 bags reported in March this year according to latest data by the Ministry of Agriculture. The drop last month is despite the government granting importers a four month to bring in maize from outside COMESA and EAC duty-free in order to stabilize maize flour prices.
According to the Food and Nutrition Security Report for June by the ministry, millers attribute the reduction to low supplies in the global market coupled with reduced local demand on account of low consumer purchasing power. “It is further noted that although the government gave a duty-free import window for maize outside EAC and COMESA between April to August 2023, very little has been imported by the legible millers and traders as they report inadequate global supplies, higher freight and insurance costs as well as shortage of the dollar. The imported maize arriving at Mombasa is slightly more expensive compared to local supplies,” the ministry stated in the report.
Trade between UK and Nigeria rises by 78.2% in one year (Businessday NG)
Total trade in goods and services (exports plus imports) between the UK and Nigeria rose by 78.2 percent (or £3.3 billion) to £7.5 billion in the four quarters to the end of Q4 2022, from the four quarters to the end of Q4 2021, according to data from UK’s Trade and Investment Factsheet.
Britain’s export finance agency in 2018 said it would add the naira to its list of “pre-approved currencies”, allowing it to provide financing for transactions with Nigerian businesses denominated in the local currency. The naira will become one of three West African currencies that UK Export Finance has pre-approved for its programme of funding transactions that promote trade with Britain, it said.
Of this £7.5 billion, total UK exports to Nigeria amounted to £4.3 billion in the four quarters to the end of Q4 2022 (an increase of 58.8 percent or £1.6 billion in current prices, compared to the four quarters to the end of Q4 2021). Total UK imports from Nigeria amounted to £3.1 billion in the four quarters to the end of Q4 2022 (an increase of 114.4 percent or £1.7 billion in current prices, compared to the four quarters to the end of Q4 2021).
Equitable Trade Agreements, Regional Trade Will Drive Investment in Africa - Deputy Minister Wolokollie Addresses London Forum (FrontPageAfrica)
Equitable Trade agreements, transparent governance, and regulations driving regional trade are among the policies critical to stimulating trade and investment across Africa. Delivering the keynote address during the thematic discussion on investment and trade in Africa, at the African Achievers’ Awards Annual Lecture in London, United Kingdom, Deputy Finance Minister for Fiscal Affairs, Hon. Samora P.Z. Wolokolie, advanced strategies and partnerships to ensure the benefits of Africa’s vast natural resources for all.
He identified robust infrastructure that will connect the economies of Africa and facilitate regional trade; heralding the African Continental Free Trade Area (AFCFTA) as a vehicle to foster economic integration while enhancing Africa’s competitiveness on the global stage. The engine of the African economies will be led by qualified and trained manpower.
Minister Wolokolie insists that the regulatory framework is also critical for attracting Foreign and Direct investment. “African Governments can create an enabling environment for FDI by implementing transparent regulations, ensuring the rule of law, and providing incentives for investors.” He noted. He advanced public-private partnerships as another dynamic to accelerating economic transformation. He pointed to renewable energy, agriculture, healthcare as well as technology.
How can the East African Community fulfil its FDI potential? (Investment Monitor)
The East African Community (EAC) is a seven-nation bloc that comprises some of the most highly populated and resource-rich countries in Africa. Its combined population of more than 300 million (according to some estimates), its strategically advantageous location, and the access it offers to materials such as liquefied natural gas (LNG), copper, cobalt and nickel means that the bloc is very much on the radar of investors.
However, despite interest from the likes of the EU, the US, the UK and the EAC’s largest foreign investors, China and India, foreign direct investment (FDI) accounts for less than 3% of the EAC’s gross domestic product (GDP) and remains uneven among its members: Burundi, the Democratic Republic of Congo, Kenya, Rwanda, South Sudan, Tanzania and Uganda. Adding to this, sectors vital to EAC economies, such as agriculture, receive little to no foreign investment.
The 2023 Edition of the Africa’s Dynamic Development Report is now available. The latest edition offers a comprehensive overview of economic policies on the continent focusing on the five regions. Drawing from a wide range of data sources to analyse public, private, domestic and foreign sources of investments, the report proposes a new narrative assessing Africa’s economic, social and institutional performance aligned to the African Union Agenda 2063 targets, and explores innovative ways to attract investments that are economically, socially, and environmentally sustainable. It a resource document to inform decision makers, business analysts, private investors, journalists, and other stakeholders on the development trajectories of African countries.
The report whose overarching theme is “investing in sustainable development” shows that Africa’s sustainable financing gap until 2030 is about USD 1.6 trillion, and estimates that the continent needs additional financing of about USD 194 billion annually to achieve the Sustainable Development Goals by 2030. It further shows that the annual sustainable financing gap is equivalent to 7% of Africa’s gross domestic product (GDP) and 34% of its investments in 2021.
Sustainable investments are essential for Africa’s economic, social and environmental development. The report argues that when mobilising and allocating investments, African countries need to manage tensions between economic, social and environmental goals such as productive transformation, social inclusion and resilience to climate change.
Recognizing the fundamental role that agriculture plays in development, the African Union Member States established the Comprehensive Africa Agriculture Development Programme (CAADP), which is a continent wide framework for accelerating broad-based economic growth and progress toward poverty reduction and food and nutrition security through an agriculture-led growth within the decision made by the African Heads of State and Government for 10 year consecutive period made in Maputo (2003-2014) and in Malabo (2014-2025).
In his opening remarks, Dr. Godfrey Bahiigwa, Director of Agriculture and Rural development said that “We need to discuss the various intervention required, outcomes and how to operationalise these outcomes, using our comparative advantage to advance the process.” Dr. Bahiigwa also presented the draft roadmap and emphasized the need for advocacy efforts to improve the understanding of the CAADP value proposition, core principles and values, which in turn should allow member states and other stakeholders adopt and domesticate it widely across the continent, as the overarching policy framework for agricultural transformation.
The 5th AU-EU Agriculture Ministerial Conference convened on 30th June 2023 at the FAO headquarters in Rome, Italy. The Conference brought together representatives from the African Union and European Union Member States as well as the, private sector and civil society to take stock of the achievements made from the last Agriculture Ministerial Conference, and share their experiences towards more sustainable food systems, in light of the responses to the COVID-19 pandemic and to the food security crisis brought by the Russian – Ukraine crisis.
In her opening remarks, H.E Amb. Josefa Sacko emphasised the need to renew commitment to advance agriculture transformation in Africa and Europe, through promoting sustainable investment in agri-food systems, boosting trade and integration, fostering science and innovation, and building climate resilient food systems Trade. “Agriculture, as we all know, lies at the heart of both Africa and European economies and societies. As such, deepening the two continents’ partnership and cooperation in the sector, is of paramount importance for our shared future” she said.
The conference concluded with the announcement of the establishment of an EU-AU Joint Task Force on Fertilisers. This task force aims to address challenges related to fertilizer accessibility and affordability and propose solutions. The key recommendation and actions from the conference included; to strengthen cooperation and accelerate the implementation of AfCTA and global trade, this being the year of trade in Africa, to collectively shape the action and push joint leadership, to identify opportunities to strengthen this cooperation and promote innovative forms of EU-AU partnership in strengthening agri-food systems and to operationalize multilateralism, sustainable and inclusive development, and sustainable growth as key drivers for the achievement of the Comprehensive Africa Agriculture Development Programme (CAADP) Malabo Declaration, Agenda 2063 and the SDGs.
EU concludes Africa-Pacific treaty after Poland drops veto (EURACTIV)
More than two years of delay in ratifying the new EU treaty with African, Caribbean and Pacific countries ended on Thursday (20 July) after Poland confirmed its approval of the agreement. The treaty is set to be formally signed by leaders at a summit in Samoa in the coming weeks.
The Cotonou Partnership Agreement between the EU and 78 African, Caribbean and Pacific (ACP) countries should have expired in February 2020 but was extended until December 2021 after negotiations on a successor deal took longer than planned. Following the delays in ratification in Europe, Cotonou was rolled over until September 2023. The new treaty covers political and economic relations with the 79-member ACP but, unlike its predecessor, does not have an aid component or change EU-African trade relations.
The EU has struggled to finalise Economic Partnership Agreements with various states across the ACP, primarily over fears that they would force developing countries to open their markets to EU firms.
Brics nations considers new members ahead of summit (The East African)
More than 40 countries have expressed interested in joining the Brics group of nations, South Africa’s top diplomat in charge of relations with the bloc said on Thursday. South African Ambassador for Asia Anil Sooklal and officials from the Department of International Relations and Cooperation were addressing journalists in the main commercial city of Johannesburg, a day after South Africa confirmed Russia’s Vladimir Putin would not attend the Brics summit due to take place on August 22-24.
The question of how far and fast to expand the club - centred around Brazil, Russia, India, China and South Africa - is top of the agenda at the summit of nations seeking to offset the perceived hegemony of the US-led West in global affairs.
Aside from the 22 countries that had formally asked to join, Sooklal -- South Africa’s top diplomat in charge of relations with the bloc -- said there was “an equal number of countries that have informally expressed interest in becoming Brics members ... (including) all the major global south countries.”
Ukraine War Looms Large Over Russia-Africa Summit (VOA)
African leaders are to meet with Russian President Vladimir Putin in St. Petersburg at the end of this month for a summit, billed as strengthening cooperation in peace, security, and development. But the second Russia-Africa Summit comes as Moscow continues to wage war against Ukraine. Russia’s invasion has led to higher food and oil prices for many African nations – and prices could rise further after Russia this week pulled out of the Black Sea Grain Initiative, a U.N.-brokered deal that allowed Ukrainian food exports to reach international markets.
Steven Gruzd, who leads the Africa-Russia project at the South African Institute of International Affairs in Johannesburg, said: “They [Russia] are under a lot of pressure with what’s happening in Ukraine and the ramifications of the conflict there in terms of commodity prices, particularly for Africans — and also what’s happening with Wagner and so on — so this an opportunity for Russia to try to assert its place on the global stage as well.” Trade likely will be discussed. “I think there would be talk about trade ... Russia’s trade with Africa is really negligible. China and the EU are by far much bigger trading partners with Africa.”
Behind at halftime, but all still to play for in race to 2030 goals as top political forum closes (UN News)
Over the past ten days, world leaders, policymakers, and key stakeholders gathered to review progress, share experiences, and discuss strategies for advancing sustainable development. Focused on the theme of Sustainable and Resilient Recovery from the COVID-19 Pandemic, this year’s HLPF recognized the unprecedented challenges posed by the global health crisis.
Admitting that the world is “woefully off track” to achieve the SDGs by the 2030 deadline, the Forum discussed the ways to push forward the implementation of five out of the 17 SDGs. They put under scrutiny progress made so far in universal access to clean water, sanitation and power, and reviewed ways to take advantage of new technology, also discussing the crucial role of urban development.
Lachezara Stoeva, President of the Economic and Social Council (ECOSOC), who spearheaded the work of the Forum, emphasized the importance of innovation, technology, and high-impact partnerships. ”We are halfway to 2030 and yet nowhere near to achieving the SDGs. The bad news is we’ve lost seven years. The good news is, we still have seven years and victory is within our reach,” she said.
Trade’s role in climate action in the spotlight at COP28 (UNCTAD)
The Intergovernmental Panel on Climate Change (IPCC) – a body of the world’s leading climate scientists – warns that limiting global warming to 1.5°C will require achieving net-zero CO2 emissions worldwide by 2050. To achieve this, trade must play its part since the global production and distribution of goods and services contributes to roughly a quarter of all emissions.
The upcoming COP28 UN climate summit, slated for 30 November to 12 December in Dubai, will spotlight the role of trade in good and services and trade policy can play in bolstering and accelerating the clean energy transition. The conference, hosted by the United Arab Emirates (UAE), will dedicate an entire day to discussions on trade, the first of its kind within the context of a UN climate conference. “Trade Day” at COP28 will highlight trade’s potential as a catalyst for climate-smart development, focusing on issues like value-chain decarbonization and resilience.
UNCTAD estimates show that trade in environmentally friendly goods – those designed to use fewer resources or cause less pollution – increased by about 4% in the second half of 2022, reaching a record $1.9 trillion. Goods like electric vehicles, non-plastic packaging (+20%), and wind turbines (+10%) saw especially high growth. Trade can provide more countries with access to environmentally preferable goods and services, as well as facilitate the transfer of technologies and know-how to support mitigation and adaptation efforts in all countries.
DG Okonjo-Iweala calls on members to “narrow down realistic deliverables” for MC13 (WTO)
Speaking at a meeting of the WTO’s Trade Negotiations Committee on 20 July which she chairs, Director-General Ngozi Okonjo-Iweala called on members to use a senior government officials’ meeting to take place in October to “narrow down realistic deliverables” for agreement at the WTO’s 13th Ministerial Conference (MC13) in early 2024. Acceptance of the Fisheries Subsidies Agreement by two-thirds of the membership is an area where senior political push will be essential on the road to MC13, the DG told WTO members.
Wheat prices soar for a third day as Russia-Ukraine tensions stoke fears of major food crisis (CNBC)
Wheat prices rose on Thursday after Russia threatened to treat ships heading for Ukrainian ports as military cargo carriers, deepening fears of a global food security crisis. It marks the third consecutive day of price rises. The most actively traded wheat contract on the Chicago Board of Trade was last seen trading around 1.4% higher at 737.6 cents per bushel, notching a three-week high.
The rise follows the Kremlin’s decision Monday to pull out of the Black Sea Grain Initiative, a critically important wartime deal that provided a maritime humanitarian corridor for the export of Ukrainian grain. U.N. chief António Guterres said he “deeply” regretted Russia’s decision to terminate the initiative, which in effect ended a “lifeline” for hundreds of millions across the globe facing hunger, as well as those already struggling with spiraling food costs.
European Union foreign policy chief Josep Borrell said Thursday that Russia’s decision to pull out of the pact would imperil global food security. “What we already know is that this is going to create a big and huge food crisis in the world,” Borrell said Thursday ahead of an EU foreign minister’s meeting.
Food security work programme enters decisive phase (WTO)
The Committee on Agriculture’s food security work programme has entered a decisive phase, with the release of the coordinator’s report outlining his views on where there could be convergence among members. At a meeting on 19 July, members reviewed the report, which focuses on the needs of least-developed countries (LDCs) and net food-importing developing countries (NFIDCs), for the first time, welcoming its circulation and considering it a good basis for further discussions. The aim is to find agreement on recommendations by November 2023.
Third Fossil Fuel Subsidy Reform meeting discusses concrete next steps to advance work (WTO)
At an 18 July meeting, WTO members participating in the Fossil Fuel Subsidy Reform (FFSR) initiative exchanged views on three key areas where work in the WTO could contribute to efforts to advance FFSR, both in the run-up to the WTO’s 13th Ministerial Conference (MC13) in February 2024 and beyond.
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South Africa dare not fail in securing future demand for platinum (Engineering News)
South Africa dare not fail in securing future demand for its “incredible” platinum group metals (PGMs) endowment, the Hydrogen Economy Discussion heard on Wednesday.
Anglo American Platinum projects and environment executive head Prakashim Moodliar outlined the widespread marketing effort under way to boost PGMs demand as well as the hugely positive benefit of adoption of the hydrogen economy. Moodliar, a keynote presenter along with German Embassy deputy head of mission Enrico Brandt, revealed the considerable work under way to map South Africa’s Hydrogen Valley further, while Brandt provided insight into the momentous acceptance of hydrogen in Germany.
“The significant growth forecasts for the hydrogen economy will offer significant demand opportunities for metals, including aluminium, copper, iridium, nickel, platinum, palladium and zinc, to support these hydrogen technologies. “This would include metal for renewable electrical technologies, and the electrolysis for renewable hydrogen, carbon storage for low carbon, nitrogen, or fuel cells using hydrogen to power transport.
Anti-dumping duties on frozen chicken up for review (Moneyweb)
Local chicken producers and importers of frozen bone-in chicken portions are gearing up for the upcoming review to reimpose anti-dumping duties against several key trade partners.
The Association of Meat Importers and Exporters (Amie) published a lengthy report arguing that the duties will have a detrimental impact on consumers and food security. The South African Poultry Association (Sapa) prepared an equally lengthy report warning against “superficial and overstated” assumptions about chicken price increases due to import duties without a proper analysis of all the factors.
The International Trade Administration Commission (Itac) introduced provisional duties against Brazil, Denmark, Ireland, Poland and Spain for six months from January to June last year. Following input from the affected countries, Itac recommended the imposition of final anti-dumping duties for a period of five years against these countries. Minister of Trade, Industry and Competition Ebrahim Patel agreed that the countries were in fact dumping their produce in the South African Customs Union (Sacu) market, causing material harm to the local industry.
However, Patel suspended the imposition of the duties for 12 months until August this year. His reason: the impact of high food inflation on struggling South Africans.
Climate commission welcomes publishing of draft SA renewable energy plan (SAnews)
The Presidential Climate Commission (PCC) has welcomed the publishing for comments of the draft South Africa Renewable Energy Masterplan (SAREM). The Department of Mineral Resources and Energy published the draft masterplan for comments on Monday. The SAREM is a document 18 months in the making with the DMRE holding extensive consultations with stakeholders, industry experts, labour and other government departments.
“The SAREM heralds a new impetus for our country’s renewable energy drive and ambition. To this end, as PCC we welcome the four priorities as outlined in SAREM being: Supporting the local demand for renewable energy by unlocking market demand and system readiness, driving industrial development by building renewable energy value chains, and supportive trade and industrial policy, fostering inclusive development through transformation, supporting the development of emerging suppliers and building local capabilities in skills and innovation and associated industrial development.
“The PCC therefore acknowledges the SAREM as a catalytic contribution to our country’s transition to a net zero carbon future and provides a baseline for social consensus and further detailed planning and implementation of essential projects and programmes to achieve our objectives by 2030,” the commission said.
EU-Kenya deal paints gloomy picture for EAC trade ties (Monitor)
The Economic Partnership Agreement (EPAs), a pact that is looking to flung open the Least Developed Countries (LDCs) market for the European Union (EU) countries manufactured goods, has started disintegrating the East African Community (EAC) bloc silently, Prosper Magazine can reveal.
According to the agreement, the EAC has offered to liberalise 82.6 per cent of her imports from the EU over a 25-year transition period by initially liberalising 65.4 per cent on entry into force of the agreement. An expert analysis of the agreement in a paper titled: ‘The inherent dangers for the EAC signing the EAC-EU EPA,’ reveals that this liberalisation is taking a static approach to development, considering that it does not envisage Uganda and the East African region as whole graduating to producing either industrial inputs or capital goods – which is absurd.
On June 9th, 2023, the EU and Kenya announced the political conclusion of the negotiations for an Economic Partnership Agreement. The Agreement will undergo legal scrubbing and translation before signature and conclusion by the EU Council, upon which the EU and Kenya can sign and ratify. This has since renewed debate on whether the EPA, which the EU has been relentlessly pushing as its cardinal trade policy instrument, is the right tool to shape the Afro-Euro relationship.
Kenya-COMESA Deal To Increase Cross Border Trade (Kenyan Wallstreet)
Fish traders are among those set to benefit from an agreement recently signed between COMESA and the government aimed at improving participation in cross-border trade within the Eastern Africa Region.
The agreement provides technical assistance to enhance market access, expansion of value chains through the RECAMP (Regional Enterprise Competitiveness and Access to Markets Programme).The project is aimed at increasing the effective participation of Fish Traders in cross-border trade within the Eastern Africa Region by working with Non-State Actors through the Eastern Africa Platform of Non-State Actors in Fisheries and Aquaculture (EARFISH).,
With an allocation of EUR 142,177.2, the project is part of the EUR 8.8million RECAMP which aims to increase private sector participation in sustainable regional and global value chains through improved investment/business climate and enhanced competitiveness in the COMESA region.
A total of €2,349,790 million has been allocated to the sub-delegation agreement under the European Union funded Trade Facilitation Programme (TFP), a project aimed at enhancing Kenya’s progressive participation in the regional and international integration agenda through the progressive removal of trade barriers at the border.
Uganda records its largest investment in green oil field, earning Shs 5.57 trillion ($1.5 billion) in 2022 (Business Insider Africa)
According to the United Nations Conference on Trade and Development (UNCTAD), the Shs 1.55 trillion was the largest recorded in the East African sub continent, during the period under review.
The investment was majorly fueled by the joint venture between the China National Offshore Oil Corporation (CNOOC) and the Ugandan National Oil Company in Lake Albert’s oil field worth Shs23.7 trillion. Other comparable oil investments in Uganda include the Shs 12.8 trillion, 1440-kilometer East African Crude Oil pipeline, which is intended to transport oil from Uganda’s Lake Albert to Tanzania’s Tanga ports for export.
According to UNCTAD, the subcontinent’s FDI was an impressive Shs 31.7 trillion, with increases recorded across different countries. Kenya increased to Shs 2.77 trillion, Tanzania’s FDI rose to Shs 4 trillion, and Uganda’s FDI exceeded EAC’s growth projection of 3%. Regardless of the growth, the country via the Uganda Investment Authoruity (UIA) notes that the country’s FDI has underperformed, as more is required to foster the level of development Uganda aspires to.
New Malawi Economic Update Calls for Urgent Action to Address Macroeconomic Imbalances and Increase Energy Access (World Bank)
Malawi’s path towards achieving the goals of its long-term development vision, Malawi 2063, remains feasible but narrow, according to the latest World Bank Malawi Economic Monitor (MEM), Powering Malawi’s Growth: Rapidly and Sustainably Increasing Energy Access. This is because a prolonged macro-fiscal crisis, exacerbated by extreme weather events, a slow debt restructuring process, and delayed governance reforms have subdued economic growth. The new MEM says improvements in political commitment and investment, and reforms in the energy sector could help growth by pushing access to electricity above 50% by 2030.
“Malawi’s economy is weakened by foreign exchange shortages that constrain the import of essential commodities and inputs, and that lower agricultural output, as well as by erratic electricity supply and the increasing frequency of natural disasters. Its ‘polycrisis’ needs urgent movement on reforms that promote macroeconomic policy and governance, as well as a wide range of policy responses in energy, agriculture, climate adaptation, and resilience to create a stronger foundation for economic growth,” says Hugh Riddell, World Bank Country Manager for Malawi.
Ghana’s Economy Expected to Recover Its Potential By 2025, says World Bank Report (World Bank)
A combination of domestic imbalances and external shocks in 2022, led to macroeconomic challenges in Ghana. The year was marked by currency depreciation, rising inflation, and tumbling investor confidence. Pre-existing fiscal vulnerabilities such as mounting debt burden, a rigid budget weakened by high energy sector costs and chronically low public revenues, were deepened by difficult global economic conditions notes the World Bank’s latest Economic Update.
The report titled “Price Surge: Unraveling Inflation’s Toll on Poverty and Food Security” states that Ghana faces an extremely challenging outlook, and the economic situation is likely to remain challenging before it rebounds.
The report recommends that in addition to managing the immediate macroeconomic crisis, the authorities would be well served by embarking on structural reforms to tackle its root causes, boost economic growth, and build economic resilience. “In the longer term, to mitigate the impact of inflation on food security, policymakers must enable farmers to adjust to global demand and take advantage of market opportunities” said Ashwini Sebastian, Senior Agricultural Economist, and co-author “This is particularly relevant since many of the poor are farming households. Policies should therefore be evidence based and aimed at alleviating the different constraints farmers face.”
Liberia Economic Update: Improved Rice Production Is Critical for Food Security and Poverty Alleviation (World Bank)
The World Bank today launched the Fourth Edition of its annual Liberia Economic Update, “Getting Rice Right for Productivity and Poverty Alleviation.” According to the report, growth in the agricultural sector accelerated to 5.9% in 2022 from 3.3% in 2021. Increased crop production, especially rice and cassava produced primarily for domestic consumption, was the main driver of growth in the agriculture sector.
“Despite the rebound in growth led by mining and a relatively good agricultural harvest during the year, food insecurity remains a major challenge for Liberia, with more than four-fifths of the population facing moderate or severe food insecurity,” said Mack Capehart Mulbah, Acting World Bank Country Manager for Liberia. “The strong preference for rice among Liberians makes it integral to the country’s food security, poverty alleviation, and efforts to address vulnerabilities.”
Guinea suspends agricultural exports to preserve stocks (Africanews)
Guinea’s ruling junta has suspended the export of several agricultural products, including rice, potatoes, and palm oil, for six months to preserve its “food sovereignty” and “social peace”. This decision is linked to the concern to preserve stocks before the next harvests, and “not at all” to the expiry on Monday of the agreement between Moscow and Kiev, which allowed Ukraine to export cereals, notably to Africa, despite the war, the Guinean Ministry of Trade said.
The suspension of exports concerns around fifteen staple foods (rice, onions, potatoes, dried chilli peppers, fresh chilli peppers, aubergines, okra, fresh tomatoes, taro, cassava, maize, cassava, and maize flours, yams, sweet potatoes, and palm oil), the ministry said in a statement dated Monday and sent to AFP on Tuesday. Exports of these products are “prohibited for a period of six months”, on pain of fines or even criminal prosecution, it warned.
Guinea, one of the poorest countries in the world despite its rich subsoil (iron, bauxite, and gold in particular), usually exports these agricultural products to many West African countries.
Tunisia narrows food trade balance deficit (Agência de Notícias Brasil-Árabe)
Tunisia narrowed its food trade balance deficit to TNT 538.8 billion (USD 177 million) at the end of June 2023, compared with TND 1,012.5 million (USD 332 million) during the same period in 2022, leading to an improvement in the coverage rate to 86.6%, the National Observatory of Agriculture (ONAGRI) said on Monday, as per reported by TAP state news agency.
In terms of value, food exports rose by 10.3%, while imports fell by 3.5%. The decline in the deficit is mainly the result of the rise by 36.3% in olive oil exports and the fall by 15.7% in grain imports, despite the increase in imports of sugar by 118.2%, and milk and milk by-products by 61.8%. Export prices were up for olive oil, tomatoes, citrus fruits, and dates. Import prices for grain were down by 22.1% for durum wheat, by 16.1% for common wheat, 12.8% for maize and 15.0% for corn.
Mozambique and UAE negotiate creation of free trade area (Club of Mozambique)
Mozambique and the United Arab Emirates (UAE) are negotiating a Comprehensive Economic Partnership Agreement (CEPA), creating a free trade area for goods, services and investment, the UAE Embassy in Maputo announced on Monday. In a statement, the Embassy of the United Arab Emirates said that the two countries are working on the “removal of trade and investment barriers in a wide range of goods and services with a view to promoting non-petroleum bilateral trade between the two”.
“For this purpose, the Embassy of the United Arab Emirates in Mozambique has added advantages to economic partnerships through ongoing negotiations which could culminate in the coming months with the signing of the Comprehensive Economic Partnership Agreement (CEPA) which covers several economic areas that have as a vision the establishment of a Free Trade Area that attracts opportunities for access to markets for goods, services and investment between the parties,” the statement reads.
“With the signing of the joint declaration of intentions for the launch of CEPA negotiations, the UAE undertakes to strengthen its long-term economic partnership with Mozambique”, the statement continues.
The African Union 5th Mid-Year Coordination Meeting, MYCM, concluded on 16th July with the adoption of a Declaration by the Heads of State and Government representing the Bureau of the Assembly of the African Union, and Chairpersons of the eight (8) Regional Economic Communities (RECs), and the Regional Mechanisms (RMs). The declaration emphasises on the need to hasten Africa’s integration process to tackle the challenges caused by globalization, and the importance of the harmonization of national and regional policies to promote socio-economic development.
H.E. Moussa Faki Mahamat, Chairperson of the African Union Commission stated that the integration process would be hampered by structural constraints such as the funding gap for the implementation of the infrastructure programme at the continental level, the deterioration of the peace and security situation in Africa, the delays in transforming productive structures in a logic that includes women and youth as entrepreneurs of progress and as a protective shield against extremism and terrorism, and the delay in the ratification of the Protocol on the free movement of persons and goods.
With efforts geared towards the acceleration of the AfCFTA, the African Union theme for year 2023, closing the infrastructure development gap is key to attracting investment and boosting intra-African trade.
H.E. Azali Assoumani, President of the Union of The Comoros and Chairperson of the African Union for 2023, noted that the development of maritime transport is one of the key factors for the success of Africa’s economic integration.
“Indeed, intra-African trade is mainly carried out by road and sea. It is now established that the implementation of the AfCFTA could double sea freight, from 58 to 131.5 million tonnes. The island states of Africa, despite their structural fragilities, are full of opportunities and potential, given the vastness of their maritime space.”
The Third (3rd) Extraordinary Meeting of the AfCFTA Council of Ministers Responsible For Trade (AfCFTA Secretariat)
The 3rd Extraordinary Meeting of the Council of Ministers of the African Continental Free Trade Area (AfCFTA), was held from 12-13 July 2023 in Nairobi, Kenya. The importance of this assembly is reflected in the need to conclude the outstanding Rules of Origin in the Automotive and Textiles sectors and to consider other crucial trade protocols.
The Rules of Origin are pivotal in defining the economic architecture of the AfCFTA. Simply put, they are the criteria used to determine the nationality of a product, meaning they decide whether a product can benefit from preferential treatment under the free trade agreement. This is especially relevant in sectors such as automotive and textiles, both of which are significant contributors to Africa’s industrial and manufacturing growth.
In textiles, a clear, stringent, and well-enforced Rules of Origin can help protect and nurture the local textile industries from being undermined by cheap imports. The same logic applies to the automotive sector, which has the potential to generate substantial employment and develop ancillary industries. Ensuring that the benefits of the AfCFTA flow to the manufacturers genuinely located within Africa, rather than those simply rerouting their products through it, is the primary purpose of these Rules of Origin.
Africa’s Energy Experts Forge a Common Strategy to Transform the Continent’s Power Infrastructure (NEPAD)
Significant strides have been made in the establishment of the African Single Electricity Market (AfSEM) and the development of the Continental Power Systems Master Plan (CMP), paving the way for major developments to come in the energy sector.
The importance of a well-coordinated strategy to modernise Africa’s power infrastructure cannot be overstated. It is projected that the demand for electricity in the continent will triple by 2040, industrialisation, rapid urbanisation, the growing middle class, and climate change, among other driving factors.
On the 3rd -5th July 2023, energy stakeholders convened in Cotonou, Benin, to chart the path forward for the CMP and AfSEM initiatives, aiming to provide Africa with a reliable and sustainable power supply to meet the growing demands of its population. Major developments are on the horizon as the CMP work plan enters its final development phase to produce an optimised integrated generation and transmission expansion plan for 2023-2040.
A regional review meeting recently took place in Cape Town to incorporate Africa’s perspective into the United Nations Global Digital Compact (GDC) and promote a more inclusive and equitable digital future. The meeting reflected on key themes: Africa’s infrastructure development, digital public goods, digital trust, data protection, human rights, regulation of emerging technologies such as AI. Experts, policymakers, and stakeholders from 32 member states representing government, private sector, civil society, and academia attended the meeting to provide technical inputs.
In his opening remarks, Fayaz King, representing the Office of the Secretary General’s Envoy on Technology, emphasized the need for Africa to take a central role in shaping the GDC. He highlighted the importance of ensuring that Africa is “not just a provider of data to a small group of entities’ but should also actively participate in shaping its digital future. He called for the “development of standards for data interoperability and effective regulations that go beyond self-regulation,” while also stressing the significance of regulating AI and handling data in a manner that informs decision-makers and serves the common good.
Agri trade to be new frontier in joint biz (China Daily)
China’s efforts to diversify its import of African agricultural products will enhance bilateral trade and create fresh opportunities for its companies to invest in countries in Africa, said government officials and business owners. Eager to boost trade value, China and a number of African countries including Madagascar, Zimbabwe, the Central African Republic and Ethiopia, jointly proposed the establishment of a liaison mechanism for sanitary and phytosanitary (SPS) cooperation in late June.
The initiative aims to align inspection and quarantine standards and rules, facilitating the export of agricultural food products from Africa to China. It represents a significant step forward in promoting trade and economic cooperation between the two sides, according to China’s General Administration of Customs.
The trade value of agricultural products between China and Africa has jumped from 33.3 billion yuan ($4.6 billion) in 2012 to 58.6 billion yuan in 2022, with an average annual growth rate of 5.8 percent, data from the GAC showed. Africa mainly exports aquatic products, honey, sesame, peanuts, tobacco, wool, cotton, soybeans, coffee and fruit to China. Trade volume in this category soared 20.4 percent year-on-year to 26.6 billion yuan in the first five months of this year.
The proposed liaison mechanism for SPS cooperation underscores the commitment of both China and African countries to create a more efficient and streamlined process for the export of agricultural food products, said Sam Dalitso Kawale, Malawi’s minister of agriculture.
Russian President will not attend BRICS Summit (SAnews)
The Presidency has confirmed that President of the Russian Federation Vladimir Putin will not attend the 15th Summit of BRICS - however, the Russian Federation will be represented by Foreign Minister Sergey Lavrov. “By mutual agreement, President Vladimir Putin of the Russian Federation will not attend the Summit but the Russian Federation will be represented by Foreign Minister, Mr Sergey Lavrov,” the Presidency said on Wednesday.
President Ramaphosa has in recent months and weeks held a number of consultations on the hosting of the Summit. The President’s most recent consultation in this regard took place on Tuesday night at the BRICS Political Party Dialogue in Gauteng.
This will be the first BRICS Summit to be hosted in person since the emergence of the COVID-19 pandemic and the subsequent global restrictions.
Multi-Year Expert Meeting on Transport, Trade Logistics and Trade Facilitation, tenth session (UNCTAD)
Trade facilitation reforms have been advancing considerably in recent years, in particular with the entry into force of the Agreement on Trade Facilitation of the World Trade Organization in 2017 and the inclusion of dedicated trade facilitation provisions in many regional trade agreements.
The implementation of trade facilitation reforms is challenging, as evidenced by experiences in implementing the Agreement on Trade Facilitation. In particular, developing countries and vulnerable economies, such as the least developed countries, landlocked developing countries and small island developing States, are required to address many trade facilitation implementation issues at the same time, and often embark on trade facilitation reforms from a less advanced starting point, thus facing the need for knowledge acquisition and the need to make policy and implementation decisions, as well as funding requirements related to all issues, in a relatively short time frame.
The tenth session of the Multi-year Expert Meeting on Transport, Trade Logistics and Trade Facilitation provides an opportunity to reflect on the key issues at stake, review good practices, provide recommendations on the best way forward, identify priority action areas, in particular for the most vulnerable group of countries, among these the least developed countries, landlocked developing countries and small island developing States, and define the role of relevant stakeholders, including from government, industry, the public and private sectors, development partners and financial institutions.
African Union expresses ‘regret’ over Russia’s exit from Ukraine grain deal (The Straits Times)
The African Union (AU) expressed “regret” on Tuesday over Russia’s decision to suspend a deal allowing safe passage for grain cargo ships from Ukrainian Black Sea ports. “I regret the suspension of the Black Sea Grain Initiative for which the African Union had been an early advocate,” AU Commission chair Moussa Faki Mahamat said on his official Twitter account.
“I urge parties to resolve any issues to resume the continued safe passage of grains & fertiliser from Ukraine and Russia to where it is needed, particularly in Africa.”
On Monday, Russia refused to extend that agreement, threatening to cut off already reduced food supplies on which vulnerable populations in grain importing nations are dependent. Humanitarian groups say it will be acutely felt in many parts of Africa, which is heavily reliant on grain from Russia and Ukraine, and where millions of people are already facing crisis levels of hunger.
MDBs need to provide $260 bn more annually to fund sustainable infra projects: G20 expert group (Devdiscourse)
Multilateral development banks (MDBs) need to provide an additional USD 260 billion annually to fund sustainable infrastructure and help nations achieve SDG targets, a G20 expert group report said. According to the report titled ‘Strengthening MDBs: The Triple Agenda’, additional spending of some USD 3 trillion per year is needed by 2030, of which USD 1.8 trillion represents additional investments in climate action, mostly in sustainable infrastructure, and USD 1.2 trillion in additional spending to attain other sustainable development goals (SDGs).
‘‘MDBs should provide an incremental USD 260 billion of the additional annual official financing, of which USD 200 billion in non-concessional lending, and help mobilise and catalyse most of the associated private finance,’’ the report said.
The report further said that the international development finance system should be designed to support this spending by providing USD 500 billion in additional annual official external financing by 2030, of which one-third in concessional funds and non-debt-creating financing and two-thirds in the form of non-concessional official lending.
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First shipment of resin exported to Cameroon under AfCFTA
Tunisia on July 17 exported its first shipment of resin to Cameroon under the African Continental Free Trade Area (AfCFTA), announced the Export Promotion Centre (CEPEX).
Customs clearance of the shipment, which includes 60 tonnes of resin worth €90,000 (around TND 204,000), was carried out by the Cameroonian institution of the “Port Autonome de Kribi” (PAK).
This operation marks a decisive step towards closer economic cooperation within the AfCFTA, added CEPEX in a press release issued on Tuesday.
“It will offer opportunities for fruitful exchanges between the participating countries and pave the way for a promising future for Africa’s economic integration.”
Tunisia’s Ambassador to Yaoundé Karim Ben Bécher underlined the importance of this first operation between Tunisia and Cameroon, which remains Tunisia’s leading partner in Central Africa and its 4th largest client in sub-Saharan Africa.
“This operation will be the cornerstone for the launch of a new era of pan-African trade,” he said.
Cameroon’s Minister of Trade, Luc-Magloire Mbarga Atangana reiterated for his part, the need to step up product export operations to ensure the effective inclusion of African countries in the AfCFTA.
He pointed to the need to develop the services associated with this trade, to help Africa produce what it consumes and consume what it produces.
The Ministry of Trade and Export Development announced on May 17, 2023 that two Tunisian export companies operating in the chemicals and food industries had been awarded the first certificates of origin under the AfCFTA agreement to export to Cameroon.
The certificate of origin, which is considered a key element in the effective entry into force of the agreement, will allow companies to benefit from the reductions in customs duties that are due to be abolished within two years.
Tunisia, Cameroon and six other member states (Egypt, Ghana, Rwanda, Kenya, Tanzania and Mauritius) joined the AfCFTA, which aims to facilitate trade through a selection of companies and products for export and import between member states.
The AfCFTA agreement came into force in May 2019. It was ratified by Tunisia on August 7, 2020. It is one of the African Union’s (AU) flagship projects that seeks to boost South-South cooperation for an “integrated, prosperous and peaceful” Africa, in line with the AU’s Agenda 2063, and to cement trade relations between the union’s 55 member states, in a market totalling over 300 million consumers and $3,400 billion in annual trade.
The agreement aims to remove customs barriers to the free movement of goods and services between African countries.
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South Africa needs to embrace more 4IR technology or fall behind (Engineering News)
Professional services and auditing firm PwC says that South Africa’s competitors are all adopting 4IR technologies and developing their workforces and, if South Africa fails to follow suit, the country’s industrial manufacturing sector will continue to fall behind and deindustrialise.
PwC believes South Africa has positioned itself as a prime manufacturing hub on the African continent, with its industrial manufacturing industry serving as a crucial multiplier of economic growth, an engine of development and a significant contributor to the country’s gross domestic product (GDP). In 2022, the sector contributed 11.4%, or R3-trillion, towards the country’s GDP. Today, about 1.5-million people work in industrial manufacturing, and are witnessing progression at a rapid pace within the sector.
“New technologies are changing the face of manufacturing. Factories are becoming increasingly connected, as machines talk to one another and to humans, and automation reaches new milestones with robots becoming more independent. “This has understandably left groups of employees jittery over the Fourth Industrial Revolution’s (4IR’s) impact on job security and changing roles,” PwC South Africa smart manufacturing lead Vinesh Maharaj says.
GITFiC draws action plan for succeeding months (Ghana News Agency)
After successfully hosting the 7th annual Ghana International Trade and Finance Conference (GITFiC) at Senchi in the Eastern region they have followed up with an action plan that will guide their activities in the coming days. A statement signed by Mr Selassi Koffi Ackom, Chief Executive Officer of the GITFiC and copied to the Ghana News Agency in Accra named creation of African Single Currency, trade investment and dispute resolution, as major issues to be tackled for its success.
The plan according to the statement will include the involvement of Existing Monetary Unions, promote research into progress and lessons by existing Monetary Unions such as WAEMU and CEMAC, to facilitate unified Single Currency and to harmonise local financial rules with AfCFTA protocols.
It said the Regional Monetary Institutes would also deal with missed deadlines on implementation of single currency, develop National Programmes to meet macroeconomic convergence criteria within the shortest possible time and set time-bound targets on single inflation rate, budget deficit reduction towards an African single currency.
Intra-Africa trade offers tea farmers golden opportunity (The Standard)
Intra-Africa trade presents a big opportunity for Kenyan smallholder tea farmers to secure an additional market and improve their income. According to Central Bank of Kenya figures, Africa accounted for only 19.4 per cent of Kenya’s Sh827.2 billion total trade value in the first three months of 2023, a slight growth compared to 18.3 per cent in 2022.
With about 1.4 billion people, Africa presents a huge market opportunity for our tea. Better still, Africa’s population is projected to reach 2.5 billion by 2050. Since assuming office, President William Ruto and his administration have held engagements with several African nations on matters trade.
The President has taken a leading role in championing removal of trade barriers among African countries to ease movement of goods, services and labour. Kenya’s profile at continental level has since, improved immensely. This is good news to our smallholder tea farmer. Kenya’s tea subsector can tap into this improved visibility to market local tea within the continent.
East Africa’s textile industry falters on low investments (The East African)
Although East Africa has a massive capacity to produce cotton textiles and apparel given the availability of raw materials and human capital, the region scores relatively low in consumption of local textile products. Over 70 percent of apparel sold in East Africa is imported second-hand clothes, while apparel companies based in Kenya export a majority of their products, particularly to the US.
Kenya and Ethiopia are the leading exporters of textiles and apparel to the US under the African Growth and Opportunity Act (Agoa), but with raw materials sourced outside at the expense of locally produced cotton and yarn.
According to the Kenya Institute for Public Policy Research and Analysis (Kippra), 70 percent of Kenyan apparel companies sell about 80 percent of their products to US markets. Nairobi’s export processing zones (EPZs) host 21 apparel companies that manufacture garments primarily for export under Agoa.
Africa, which ranks among the highest producers of raw materials for textiles and garments including cotton globally, ranks last in consumption of its own textiles, thanks to a thriving second-hand clothing industry dominated by the US and China.
Mobile money wallet users growing in Tanzania (The East African)
Mobile money wallets are gaining traction as the preferred mode of payment for business and other financial transactions in Tanzania compared to other electronic options or even cash, according to two newly released study findings. In its analysis of trade trends in Tanzania over 2022, Standard Bank (Stanbic) said Tanzania differed from other countries in Africa where cash payments have taken the lead and mobile money hasn’t really caught on as fast.
“In terms of the financial behaviour of traders (in Tanzania), when it comes to methods of payment for sales there was a shift from electronic bank transfers to mobile money. This indicates that mobile money has become more popular, and EFTs are falling out of favour for payment received from sales,” Stanbic said in its Trade Barometer report for Tanzania which became available during the last week of June.
Stanbic’s analysis effectively supported FinScope Tanzania’s 2023 report which said an increased uptake of mobile money services among adult Tanzanians, from 60 to 72 percent since 2017, has contributed “significantly” to the expansion of financial inclusion levels in the country.
Car dealers protest increase of import duty to 35 percent (Business Daily)
Car importers have protested a decision to increase import duty to 35 percent on motor vehicles, saying the new rates were implemented without public participation. Car Importers Association of Kenya chairman Peter Otieno said implementation of the 35 percent import duty on Kenyan car buyers must be halted because industry players were not consulted before implementation, which is against the Constitution.
The new import tax, he said, means that vehicle importers must adjust their sale prices upwards by between Sh50,000 to Sh100,000 for small models of cars and by more than Sh500,000 for fuel-guzzlers as they factor in the tax when selling their vehicles.
“What we mean to say is that no public participation was conducted and we cannot accept these amendments whether they have been done through Kenya or East African Community,” said Mr Otieno in a letter to the Kenya Revenue Authority (KRA). “We believe that the Constitution is supreme and the public participation was necessary as the Constitution so dictates that anything touching on the livelihood of the other, the involvement of key stakeholders is paramount.”
FDI flows from Russia to Ethiopia (New Business Ethiopia)
In recent years, Russian investors have shown an increasing interest in investing in Ethiopia, a country located in the Horn of Africa. Investment opportunities exist in sectors such as energy, mining, agriculture, and manufacturing. However, various challenges need to be addressed to fully realize the potential for increased trade and investment between the two countries.
Russian Foreign Direct Investment (FDI) in Ethiopia has been primarily focused on sectors such as energy, agriculture, manufacturing, and infrastructure development. One notable example is the involvement of Russian companies in Ethiopia’s energy sector. Furthermore, Russian investors have also shown interest in Ethiopia’s agricultural sector. Russian investors have also explored opportunities in manufacturing and infrastructure development.
Proactive collaboration needed to realise benefits of AfCFTA (SAnews)
Realising the benefits and opportunities of the African Continental Free Trade Agreement (AfCFTA) requires proactive collaboration between all levels of government and businesses, says Director of Africa Bilateral Economic Trade at the Department of Trade, Industry and Competition, Calvin Phume. Phume was addressing the AfCFTA awareness workshop, which took place in Bloemfontein, in the Free State.
Phume said beyond the policy transformation and reforms, the AfCFTA seeks to ensure inclusivity of women and youth, including youth in the rural areas, development of SMMEs and overall industrialisation of the Continent.
Phume said the AfCFTA encourages innovation, fosters competition and promotes the development of value-chains, thereby spurring industrialisation and job creation across sectors.
African Economic Outlook 2023: Opportunities abound for Asian investors in Africa, experts (AfDB)
Africa offers vast investment opportunities for Asian countries with the appropriate incentives for their private sectors, Prof. Kevin Urama, Chief Economist and vice president of the African Development Bank Group, has affirmed. Urama made the call during a webinar to discuss the 2023 edition of the African Economic Outlook report. The African Development Bank organized the session jointly with the Korea Institute for International Economic Policy (KIEP) in Sejong-Si, Korea.
The report shows that Africa has remained broadly resilient despite experiencing significant shocks, particularly from the Covid-19 pandemic, climate change, and the Russian invasion of Ukraine. From an economic growth of 3.8% in 2022, the continent is set to climb to 4.1% in 2023 and 2024, exceeding the global average by 2.9% and the European average by 1.1%, according to the report, which estimates that growth in Asia would be higher, at 4.3%.
Urama said, “Africa must play a key role in the green transition, given that it is home to 60% of the world’s unexploited arable land and the minerals needed for green growth.” He said these resources could stimulate sustainable development and investments. “This is virgin land, which can be easily used to build low-carbon infrastructure without large-scale expenditure.”
Sung-Chun Jung, vice president of KIEP, highlighted Africa’s vast potential for green growth, considering its fast-growing population and abundant renewable energy and natural resources. “The international community must provide strong support for the efforts by African countries to combat climate change, particularly through funding, technology transfers and capacity building,” he said, adding that the private sector must play a more significant role in covering the funding gap to tackle climate change.
Time to Revalue African Economies, African Development Bank Chief Says (VOA)
The year 2023 has so far not been a good one for Africa. Conflict has erupted in Sudan, deepened in the Democratic Republic of Congo and spread southward from the Sahel. Extreme weather, often attributed to climate change, has triggered devastating droughts and floods in places like Kenya and South Sudan, deepening poverty. Many African economies are struggling under massive debt.
But the head of the African Development Bank, or AfDB, prefers to focus on the continent’s promise: notably, how to better harness its assets — from its massive natural resource wealth to its large and young workforce — to fight climate change, invest in sustainable development and green and grow economies.
“I’ve been pushing that we need to revalue our countries based on their natural capital,” the bank’s president, Akinwumi Adesina, told VOA during a recent trip to Paris. “This fundamentally for me is how we are going get a lot of capital going into Africa,” he added, “by the greening of African economies, by the proper valuation of carbon” that contributes to rising emissions but can also be stored and sequestered in areas rich in land and forests.
Adesina also denounced loans repaid by depleting Africa’s rich trove of natural resources — from timber and oil and gas to diamonds and rare earth metals, like cobalt, that are key for electric vehicles — with often disastrous environmental consequences.
“Natural resource-backed loans should stop completely,” said Adesina, without naming any particular country. “They should never be on the table. They are toxic, non-transparent debt, which mortgages the future of countries.”
The Regional Economic Communities (RECs) and the African Union Development Agency (AUDA-NEPAD) recently convened in Nairobi, Kenya to review the proposed programme for their joint resource mobilization campaign. This campaign is designed to accelerate the execution of the Agenda 2063 Second Ten-Year Implementation Plan (STYIP) and foster regional integration towards the African Economic Community (AEC).
H.E Ms. Nardos Bekele-Thomas, the CEO of AUDA-NEPAD emphasized the pressing need for coordinated collective action to tackle Africa’s development challenges. She stressed the importance of partnerships, aligning priorities, and harnessing and deploying resources effectively to accelerate the achievement of Agenda 2063.
The joint sitting highlighted the significance of the Agenda 2063 STYIP as the continental strategy guiding the joint resource mobilization programme document and its implementation. The need for a continental Project Preparation Unit covering all priority sectors was also discussed along with the establishment of a comprehensive project database similar to PIDA.
African Development Bank Group President Dr Akinwumi Adesina on Sunday, outlined the Bank’s significant achievements and commitments to Africa, underscoring the Bank’s determination to mobilise resources for driving economic transformation, climate resilience, and addressing the continent’s debt challenge, among other priorities.
Addressing the 5th Mid-Year Coordination Meeting of the African Union (AU) in Nairobi, Kenya, Adesina spoke about the Bank’s significant investments, including spending $44 billion in regional and national infrastructure projects over the past seven years.
Since last year, African leaders have been calling for an additional $100 billion in SDRs for the continent, and that a share of this be re-channelled through the African Development Bank, which is a prescribed holder of SDRs. The initiative, which won plaudits from United Nations Secretary-General António Guterres and other world leaders, would enable the African Development Bank to leverage the SDRs by a factor four and deliver significant resources for the continent.
“We must decisively tackle Africa’s rising debt challenge,” Adesina urged, expressing concern at the continent’s total debt stock, which stands at $1.3 trillion. The cost of debt servicing reached $22 billion in 2022 and is expected to rise this year.
However, the Bank President said Africa needed to change its approach to debt and called for an end to all natural resource-backed loans. He said: “They are not in the interest of Africa, as they are non-transparent. They undervalue resource assets, and pawn national assets.” He said natural resource-backed loans had led to “predatory creditor lending practices that are leaving borrowing countries worse off.”
Development partners not responding appropriately to African economic transformation needs: Sisi (Ahram Online)
El-Sisi made the remarks on Sunday during the Africa Blue Economy Strategy session as part of the Fifth Mid-Year Coordination Meeting (MYCM). The president highlighted the African needs for implementing economic transformation, redirecting sectors like energy, transportation and agriculture and preserving biodiversity and the ecosystems, while also achieving the sustainable development goals.
El-Sisi presented Egypt’s vision about what is needed to achieve economic transformation. Equity and justice must be the focus. The required transformation must take into consideration economic and social aspects. Unilateral measures that impact international trade flows must be avoided, especially with regard to exports of the developing and African states.
Regional cooperation must be enhanced to ensure the development of capabilities for preserving shared ecosystems and also to ensure that the states achieve integrated benefits and contain any negative transboundary effects.
We can build a thriving Africa with our resources (The Star)
President William Ruto has said it is possible to build a more integrated, prosperous, and stable Africa using the continent’s resources. He said this will be done by first reforming the African Union to empower it and enable its performance to align with its goals. “We must free the AU from constraints so that it can pursue urgent and critical interventions in the continent using internally generated resources,” he said.
He spoke during the 5th Mid-Year Coordination Meeting of the African Union, the Regional Economic Communities, the Regional Mechanisms, and the African Union Member States at the UN Complex in Gigiri, Nairobi. Ruto regretted that over five decades after independence, the continent still relies on external funding to drive its agenda. He frowned upon the financing of over 60 per cent of AU programmes by overseas partners.
“The chronic dependence on well-meaning partners is inconsistent with this aspiration,” he added. The President said African integration will open doors for unprecedented transformation, adding that the African Continental Free Trade Area (ACFTA) will be the world’s largest free-trade area, bringing together 54 countries.
AU: Tinubu rejects fresh scramble for Africa, pledges to strengthen ECOWAS (Tribune Online)
President Bola Tinubu on Sunday in Nairobi, Kenya strongly rejected the notion of a new scramble for Africa as various countries including China, United States, Russia, France and Iran, are establishing new blocs between them and the continent.
Speaking at the Fifth Mid-Year Coordination Meeting (5th MYCM), he called for good governance to ensure a prosperous future for Africa, free from the exploitations of the past. “As Africans, we forge ahead no matter the barriers thrust before us. The world we inhabit is often unkind and uncertain. Past history and current global difficulties argue against our future success. “Lessons of the past few years teach us that the world economy can be disrupted in ways that halt progress and invite downturn. Our nations can suddenly find themselves in dire situations if we choose to be passive observers of our fate.
“We sit here in meaningful discussion of vital economic matters. Yet, it will be impossible to bring full meaning to what we attempt unless we give due consideration to the instability and conflict that now scar many of our nations. “The fullness of the integration we seek will elude us as long as several of our nations stand in the midst of violence and war. “The trade and commerce we talk of today refers to valued goods and services that improve life. The trade and commerce these nations suffer is of destruction and disorder that takes lives and steals opportunity.
Africa urged to strike a balance between green hydrogen exports, developing local industries (Engineering News)
Africa has the potential to become a major player in the global green hydrogen economy, with the potential to generate more than 1 000 GW of renewable energy and could produce up to 5 000 megatonnes of green hydrogen a year at less than $2/kg, says business advisory company Frost and Sullivan Africa energy consultant Patrick Prestele.
The growth potential of green hydrogen presents significant opportunities for Africa. With abundant renewable energy resources, such as solar, wind and hydropower, the continent can produce vast amounts of cost-competitive green hydrogen for various offtaker markets and industries. “This presents a tremendous growth opportunity for the continent, as green hydrogen is expected to play a crucial role in the global energy transition going forward,” Presele says.
Africa's strategic geographic location favours its position as a hub for green hydrogen exports to global markets. However, there are concerns about Africa becoming a "battery" for the rest of the world. “If the continent heavily relies on exporting green hydrogen alone, it could miss out on the benefits of local value addition and industrialisation. Therefore, African countries must strike a key balance between exporting hydrogen and developing local industries that can benefit from this renewable energy source in the long-term,” he emphasises.
Africa’s green growth market size is at $2.97 trillion (Nairametrics)
The African Development Bank (AfDB) has said that Africa’s green growth market size is at $2.97 trillion. Kevin Chika Urama, AfDB’s Chief Economist and Vice President of Economic Governance and Knowledge Management said this during his presentation at the Mobilizing Private Sector Financing for Climate and Green Growth in Africa to the South Korean Institute for Economic Policy (KEIP) in South Korea. Urama highlighted the fact that green growth positively correlates with real gross domestic product (GDP) growth, climate resilience, and readiness.
While addressing Africa’s lack of green investments, particularly from the private sector, Urama said that the continent needs up to $2.7 trillion cumulatively (that is $242.4 billion annually), over 2020–30 to implement its updated nationally determined contributions (NDCs). He also said that out of the cumulative green bonds’ issuance estimated at $2.2 trillion globally between 2006 and 2022, Africa accounted for only about 0.2% (or $4.7 billion), which is the lowest among world regions.
Africa should harness investment and tapping vast green energy resources to drive sustainable industrialization and trade across the continent, the Economic Commission for Africa (ECA), Acting Executive Secretary, Antonio Pedro, has said.
Addressing the 43rd Ordinary Session of the African Union Executive Council in Nairobi, Kenya Mr. Pedro noted that the African continent had significant resources to power a green and sustainable industrialization and make the African Continental Free Trade Area (AfCFTA) work, but these investments must be prioritized. Mr. Pedro stressed that enabling infrastructure, strong productive capabilities, expanding exports and intra-African trade through the AfCFTA must be accompanied by effective industrialization and trade policies to stimulate private sector investments.
Why domestic solar manufacturing could turbocharge Africa’s energy transition (Energy Monitor)
In May, the International Energy Agency (IEA) released a special report: The State of Clean Technology Manufacturing – An Energy Technology Perspectives Special Briefing. The report offers an “update on recent progress in clean energy technology manufacturing in key regions”, says the IEA, with the aim of “keep[ing] decision makers informed of investment trends and the impact that recent industrial strategies are having in these highly dynamic sectors”.
For decades, experts have made the case that challenges around establishing industrial bases in Africa are too profound for it to be worthwhile. According to Amir Bahr, programme manager at UN Energy, the challenges include: “Limited access to finance, lack of supportive policy and regulatory environment, infrastructure constraints, limited local supply chains, and a lack of skilled workforce and technical expertise.”
Olumide Abimbola, from the Africa Policy Research Institute (APRI), agrees that “production factors, supply chain concerns, a lack of incentives, regulations, complex business environments” has made establishing renewable energy manufacturing capabilities complicated in many African nations. However, despite a complicated investment environment, manufacturing on the continent is growing fast. Manufacturing in sub-Saharan Africa has increased in value fourfold since the turn of the century – much faster than the rest of the world.
When it comes to solar manufacturing specifically, a recent report from the UN-backed international organisation Sustainable Energy for All finds that solar module manufacturing in some African countries is already cost competitive with equivalent manufacturing in China.
African Leaders At Business Summit Call For Extension Of Trade Deal With US (iAfrica)
Leaders at the U.S.-Africa Business Summit in Botswana have urged renewal of the long-standing Africa Growth Opportunities Act (AGOA).The trade deal gives some African countries preferential or even tax-free access for their exports to the U.S. market. The agreement is due to expire in 2025, and African delegates at the summit want the deal renewed.
“It is also our earnest hope that in consonance with the letter and spirit of the U.S.-Africa Leaders Summit, the Biden administration will renew the African Growth and Opportunity Act initiative, which expires in 2025,” he said. “The AGOA renewal now, with expanded mandates, will give a strong signal and confidence to the markets and serve as a catalyst for Africa’s industrialization and inclusion into the global value chains.”
Florie Liser, chief executive and president of the Corporate Council on Africa, which organizes the U.S.-Africa Business Summit, said there is a need to examine AGOA in light of an agreement known as the African Continental Free Trade Area.”A lot has changed” in Africa and beyond since AGOA came into being, she said. “The advent of the African Continental Free Trade Area is fostering much closer economic and commercial integration on the continent, which will spur the creation of regional and continental value chains and increase value added across key sectors. In many ways, the question is how best we can support this development.”
United States AGOA and Private Sector Collaboration as Backbone for Strengthening Relations with Africa (Modern Diplomacy)
With over 1300 delegates at the US-African Business Summit held mid-July in Gaborone, Botswana, the main focus was on mapping out strategies to strengthen trade and economic relations between the United States and Africa. Majority of the speakers emphasized reviewing and widening collaboration between governments, while others underlined the importance of the private sector as the key driver in achieving robust economic growth in African countries.
African leaders together with corporate business executives and majority of the participants called for extension of the Africa Growth Opportunities Act (AGOA) which grants African countries the freedom to export products tax free into American market. It is the traditional market from where most of them earn revenues for their national budget.
Chairman of the Board of Directors for the US Corporate Council on Africa (CCA), Dr. Jeffrey L. Sturchio, underlined the importance of collaboration between governments and private sectors, describing partnerships as vital ingredient for achieving robust trade and economic targets during the previous years.
BRICS Business Council aims to better balance SA’s trade patterns (IOL)
The BRICS Business Council would like to even out some of the uneven trade patterns that exist, according to Stavros Nicolaou, the head of the council. Nicolaou said South Africa exported more raw materials and imported more finished manufactured goods.
“That is even with the BRICS countries. We would like to see more of our finished products being exported and less of the finished products being imported. We need to even out the trade imbalances that exist,” he said in an interview. “In the period 2017 to 2021, there has been a 44% growth in trade across the five BRICS countries,” he said.
The council’s mandate is to promote and enhance economic growth across the five BRICS countries and to improve trade and investment between the five countries. Nicolaou said the theme of the conference was Africa and BRICS: promoting multilateralism.
UN chief regrets Russia’s decision to withdraw from grain deal (UN News)
Following weeks of negotiations, the UN-brokered accord that facilitated the export of more than 30 million tonnes of Ukrainian grain to global markets via three Black Sea ports expired on 17 July. “Today’s decision by the Russian Federation will strike a blow to people in need everywhere,” said Mr. Guterres, speaking to journalists at UN Headquarters in New York.
The Black Sea initiative was agreed by Russia, Ukraine, Türkiye and the UN in Istanbul last July along with a parallel accord between the UN and Russia on grain and fertilizer exports from that country. By its decision, Russia has also withdrawn security guarantees for ships navigating in the northwestern part of the Black Sea.
The grain initiative and the Memorandum of Understanding with Russia were “a lifeline for global food security and a beacon of hope in a troubled world,” he said. “At a time when the production and availability of food is being disrupted by conflict, climate change, energy prices and more, these agreements have helped to reduce food prices by over 23 per cent since March last year,” he added.
Statement by WTO Director-General
“The abrupt termination of the implementation of the Black Sea Grain Initiative is a matter of grave concern. I share UN Secretary-General Antonio Guterres’s deep regret and disappointment. Global food security should not become a casualty of war. Ukraine and the Russian Federation are important suppliers of food, feed, and fertilizer to international markets. People in poor countries struggling with food and energy price inflation stand to be hit hardest by the termination of the initiative: prices for future delivery of wheat and corn are already rising. Therefore, I urge all parties to make every effort to come back to the negotiating table.”
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Transnet container terminals remain optimistic of strong citrus season finish (Engineering News)
Average year-on-year comparisons of citrus handling volumes show a 9.2% volume increase in the Eastern Cape region and, despite heavy rains across the country, the Eastern Cape Container Terminals are handling higher citrus volumes than the previous three years mid-season, said State-owned Transnet Port Terminals (TPT).
“With exception of the Eastern Cape, we have noted a slow start to the citrus season in general. There are a number of factors at play, including lower crop yields owing to weather, as well as the European Union’s cold treatment legislation, which have reduced export opportunities,” said TPT commercial and planning GM Michelle van Buren Schele.
However, Transnet remained optimistic of a strong, albeit later, finish with three months before end of season, she added. “Volumes are starting to pick up in Durban after delayed production of valencia and mandarin fruits. This will also contribute to peak export flows,” she said. The citrus season is one of South Africa’s biggest, as the country ranks among the top suppliers of citrus fruits in the world. During this season, TPT handles vessels destined for over 100 markets.
Regional Collaboration Consolidates Angola’s Position as an Oil and Gas Hub (ZAWYA)
One of Africa’s major oil and gas producers, Angola is demonstrating commendable efforts in prioritizing regional collaboration to ensure energy security and stimulate growth across the regional energy sector. By leveraging its position, resources and experience, Angola is forging strategic partnerships with neighboring countries, signing significant agreements, and initiating cross-border collaborations. These endeavors serve as an inspiring example for other African nations to enhance cooperation and foster sustainable development.
In a notable development, Angola’s signing of a Memorandum of Understanding (MoU) with the Democratic Republic of the Congo (DRC) on July 13 for the joint development of offshore Block 14 marks a significant milestone in the country’s pursuit of energy security. Angola, for its part, has demonstrated its commitment to strengthening cooperation and promoting sustainable development and growth within the energy sector. This strategic alliance will not only boost the energy sectors of both countries but also promote economic growth and stability across the continent.
IMF Staff Completes 2023 Article IV Mission to Botswana (IMF)
“Following a strong recovery of almost 12 percent growth in 2021, Botswana’s economy grew by 5.8 percent in 2022, significantly above the long-run average of 4 percent. The recovery from the pandemic primarily reflects elevated mining production, but also robust manufacturing and construction.
“Going forward, growth is projected to slow to 3.8 percent in 2023. The expected slowdown reflects a decline in diamond production and prices this year, with weaker global growth likely to depress other exports. This will be partly offset by growth in the non-mining sector, with a fiscal relaxation supporting household consumption and public investment. Growth is forecast to rebound gradually in 2024 and 2025, to above 4 percent, due to higher prices and quantities of diamonds produced.
Namibia is open for business says Mbumba at 2023 U.S.-Africa Business Summit (Namibia Economist)
The Vice President Dr Nangolo Mbumba reiterated that Namibia is open for business and that it welcomes investors interested in exploring potential prospects for shared economic growth. Mbumba emphasized the government’s unwavering commitment to creating a conducive environment for business, noting that “we are doing this by removing legal or administrative impediments, and ensuring that our trade and investment landscape remains fit for purpose.” Mbumba made these remarks at the U.S.-Africa Business Summit in Botswana on Thursday, where he led the Namibian delegation.
“Namibia is a land of vast potential that offers trade and investment opportunities in multiple sectors beyond energy. From tourism, mining, agriculture and agro-processing, transport and logistics, amongst others, a key objective for Namibia is to leverage the existing capital-intensive industries to set the basis for productive diversification towards industries that can employ more people with higher capabilities and jump-start the economy,” he said.
Following the positive economic growth observed in 2022, Equatorial Guinea is projected to re-enter recession this year with an average real GDP growth of about -4% over the period 2023 to 2025.
While the country registered a fiscal and current account surplus in 2022 amid the recovery of the hydrocarbon sector, the projected gradual decrease in oil production and lower commodity prices are expected to deteriorate both the fiscal and external balances over the medium term. The medium-term outlook is subject to downside risks, including lower-than-expected oil production and prices, increases in international food prices, and a further tightening of global financial conditions.
Cameroon predicts nearly CFAF200bln YoY drop in oil revenues in 2024 (Business in Cameroon)
On July 13, 2023, the 2024 budget preparation workshop was officially opened, in Yaoundé, by Finance Minister Louis Paul Motaze (photo). During his opening address, he described national and international uncertainties that could lead to a significant drop in Cameroon’s oil revenues in 2024. “The uncertainties weighing on the global economy call for caution regarding the forecast of a substantial increase in domestic revenues in 2024, in a context of falling prices and a crumbling potential for the mobilization of oil revenues, which are projected - in the latest budgetary framework - to drop by more than CFAF195 billion compared to 2023,” Minister Motazé said.
The projections need to be taken with caution considering the uncontrolled fluctuations in the dollar exchange rate and even crude oil prices, which may evolve favorably in the coming months, as long as the war between Russia and Ukraine persists. Apart from oil revenues, budget support and funds raised are also expected to drop in 2024.
Cabo Verde’s Sustainable Growth relies on Economic Diversification and Resilience to External Shocks (World Bank)
In 2022, Cabo Verde witnessed strong economic growth, led by the sectors of tourism, transport, and commerce. This surge in economic activity boosted the country’s GDP and contributed to poverty reduction. However, the need for economic diversification and for resilience to external shocks, particularly climate related, posed significant threats to the sustainability of growth. These are the key issues tackled by the 2023 Country Economic Memorandum and the 2023 Economic Update, two new reports published by the World Bank.
Cabo Verde has achieved significant social and economic progress since its independence in 1975, despite its geographical challenges and limited resources. However, there are still challenges that need to be addressed to ensure sustainable and inclusive long-term economic growth. Three priorities discussed in the CEM are (i) the importance of increasing firm-level productivity to generate more and better jobs; (ii) the need to reduce economic fragmentation by reduction transportation costs among islands; and (iii) the significance of building economic resilience to climate shocks.
“By implementing the recommendations outlined in these reports, in line with the national development policy (PEDS II), Cabo Verde has the potential to gradually diversify its economy, improve firm-level productivity, and prepare better for the impacts of climate shocks. These efforts will foster sustainable and inclusive growth, reduce poverty, and promote shared prosperity for the country and its people”, said Eneida Fernandes, World Bank Resident Representative in Cabo Verde.
Seychelles signs SADC Charter for fisheries monitoring and control centre (Seychelles News Agency)
Seychelles is set to partake in more regional cooperation in its fight against illegal, unreported, and unregulated (IUU) fishing with the signing of the Charter for the SADC Fisheries Monitoring Control and Surveillance Coordination Centre (MCSCC).
The SADC Council of Ministers approved the Charter in August 2017 in Pretoria, South Africa, and entered into force on April 8, 2023. The Charter aims to provide a legal framework for establishing and operationalising an institution that will coordinate measures relating to fisheries monitoring control and surveillance (MCS) in the SADC region.
Through the years, Seychelles has made progress in monitoring, control and surveillance matters by improving the implementation of trade-related measures to prevent IUU fishing and reorganising the setup of the MCS department to allow the performance of crucial international obligations.
Digitalisation, manufacturing to take centre stage at 7th Africa Singapore Business Forum (Businessday NG)
Driving Africa’s growth through digitalization, manufacturing and sustainability will take the centre stage at the 7th Africa Singapore Business Forum (ASBF) orgainsed by Enterprise Singapore, the Singaporean agency championing enterprise development. This year’s edition themed ‘Driving Africa’s Growth through Digitalisation, Manufacturing and Sustainability’ is schedule to be held between the 29th to the 31st of August in Singapore.
According to the organisers, the theme is in line with the opportunities arising from Africa’s digital boom, sustainability development, and the boost in manufacturing brought about by the African Continental Free Trade Area agreement.
“Singapore companies are drawn by its potential and are eager to explore new opportunities for collaboration in areas such as manufacturing and digital solutions. “Singapore companies can also share knowledge and innovative solutions with Africa, contributing to the continent’s development and creating mutually beneficial partnerships. “We also welcome African companies to leverage our established business ecosystem and connectivity to set up their regional base in Singapore and expand into Asia,” Rahul Ghosh, director for Middle East and Africa, Enterprise Singapore said.
Ministerial meeting of the African Union Commits to More Continental Trade and Integration (AU)
The African Union 5th Mid-Year Coordination Meeting bringing together Regional Economic Communities (RECs), Regional Mechanism (RMs) and member states kicked off on the 13th of July 2023 with the Ministerial Meeting of the Executive Council.
H.E. Moussa Faki Mahamat, Chairperson of the African Union Commission, in a statement read on his behalf by his Deputy, Dr. Monique Nsanzabaganwa, lauded the satisfactory progress of the implementation of the African Continental Free Trade Area, evidenced by among others, the successful conclusion of negotiations on rules of origin, the strengthening of infrastructure through the corridor approach, and the involvement of the private sector.
H.E. Dhoihir Dhoulkamal, Minister of Foreign Affairs and International Cooperation of the Republic of Comoros and the Chairperson of the African Union’s Executive Council for 2023, noted that the Protocol to the Treaty Establishing the African Economic Community Relating to Free Movement of Persons is a catalyst to stimulate the potential of the AfCFTA to benefit millions of Africans.
Mr. Antonio Pedro, the Acting Executive Secretary of the United Nations Economic Commission for Africa stated that industrialization would accelerate Africa’s structural transformation with a potential to contribute an increased share of tradable goods in total exports, more productive and decent jobs, value addition, larger volumes of intra-African trade, greater product complementarity between African economies and the emergence of strong and well-linked regional value chains to break Africa’s dependence on the export of raw materials. He emphasized that industrialization backed with actionable trade policies would attract private sector investments for sustainable development.
NEPAD, AUDA partner to combat food insecurity (The Nation)
The African Union Development Agency (AUDA) and the New Partnership for Africa’s Development (NEPAD) have disclosed plans to establish strong partnerships to ensure that farmers adhere strictly to African Union Agenda 2063 goals. This, the agency said, is in conformity with the Federal Government Agricultural Revolution for Food Sufficiency in the country.
The National Coordinator (AUDA-NEPAD)/APRM, Gloria Akobundu disclosed this at a one day national workshop on mainstreaming of African Union Comprehensive African Agricultural Development Programme (CAAPM) held in Owerri, the Imo State capital.
Also, speaking, the state Coordinator of the Nigeria Export Promotion Council (NEPC)-Anthony Ajuruchi, argued that the non-oil export sector holds immense potential for driving economic growth, diversification and sustainable development in Africa.
Ajuruchi said that it had become crucial for the nation to shift focus to non-oil sectors such as agriculture, manufacturing, solid minerals and services, stressing that the transition had become vital to reduce dependency on oil, create employment opportunities and foster inclusive economic growth.
Infrastructure experts have reiterated the need for conducive policy and business environment in Africa, which they say, is a critical first step to attract the private sector in urgently needed renewable energy investments needed for economic and social development.
“We must address the critical challenge of our policy and regulatory environment that often inhibit scaled investment and effective private sector participation,” Mr. Lisinge said in opening an event on Advancing Regulatory Improvements to Accelerate Private Sector Investment to Meet SDG7 and Energy Transition Goals in Africa on the sidelines of the High-Level Political Forum on Sustainable Development in New York this week.
“We must close the energy access gap that has left more than 600 million people in Africa without access to electricity,” Mr. Lisinge stressed, noting that the climate goal of 1.5 0C warming calls for significant changes in how energy is produced and consumed globally and in Africa.
African Union’s inclusion in G20 could become a reality: Officials (Deccan Herald)
There has been no disagreement thus far among various G20 nations over the African Union’s inclusion into the global group, officials aware of the development said on the sidelines of the 3rd Sherpa Meeting being held in Hampi.
Bringing the AU to the table has been one of the main agendas India has been pushing for after Prime Minister Narendra Modi wrote to his counterparts proposing the union be given full membership of the grouping at its September summit in New Delhi.
The push for AU’s inclusion has received significant momentum after India hosted the ‘Voice of the Global South Summit’ earlier this year to ascertain the needs of developing nations that it could pitch to leading countries during its G20 presidency. Major economies including the US, France, Japan, and China, have also backed the proposal.
Members review how to boost developing economies’ participation in global trade (WTO)
WTO members discussed how to better integrate developing economies and least-developed countries (LDCs) into the global trading system at a meeting of the Committee on Trade and Development on 11 July.
Members continued discussions on “policy space” for developing economies to promote industrial development on the basis of submissions by the WTO’s African Group. A first submission, circulated earlier this year, makes a case for rebalancing trade rules to promote industrialization and to address emerging challenges, such as climate change, concentration of production and digital industrialization.
The WTO Secretariat presented the recently-launched Global trade data portal, a tool intended to complement customs data and enhance market transparency. The portal provides access to real-time data on trade, allowing users to monitor supply chain activities and providing advance warning of potential disruptions.
Why the shipping industry’s increased climate ambition spells the end for its fossil fuel use (The Conversation)
A revised strategy to reduce global shipping emissions has emerged from two weeks of intense talks in London. It marks a significant increase in the industry’s climate ambition. The revised strategy has been criticised for not being ambitious enough. However, the forecast growth in global trade and the world’s shipping fleet means the reductions required of individual ships are much greater than the overall greenhouse gas emission targets.
The revised strategy was negotiated at the London headquarters of the International Maritime Organization (IMO), the United Nations agency that regulates shipping. Backed by the Science-Based Targets initiative, several Pacific Island states, New Zealand, the US, the UK and Canada had proposed emission cuts of at least 37% by 2030, 96% by 2040 and to absolute zero by 2050. (An initial strategy adopted in 2018 aimed to reduce shipping emissions by at least 50% by 2050.)
Shipping volumes have grown by more than 50% since 2008, with further growth expected. Increasing numbers of ships mean average emission reductions per ship will need to be 54-60% by 2030 and 86-91% by 2040.
Before the revised strategy, IMO policy focused on improving the energy efficiency and carbon intensity of new and existing ships. These tools failed to rein in shipping emissions.
UN scrambles to save Black Sea grain deal, with EU help, ahead of Monday deadline (Reuters)
The European Commission is helping the United Nations and Turkey try to extend a deal allowing the Black Sea export of Ukraine grain and is open to “explore all solutions,” a European Union spokesperson said on Thursday, ahead of the deal’s possible expiration on Monday.
The U.N. and Turkey brokered the Black Sea Grain Initiative with Russia and Ukraine in July 2022 to help alleviate a global food crisis worsened by Moscow’s invasion and blockade of Ukrainian ports. Ukraine and Russia are among the world’s leading grain exporters.
U.N. Secretary-General Antonio Guterres proposed in a letter to Russian President Vladimir Putin on Tuesday that Moscow allow the Black Sea grain deal to continue for several months to give the EU time to connect a Rosselkhozbank subsidiary to SWIFT, two of those sources familiar with discussions told Reuters.
“Governments should rethink how they can allocate their existing public budgets to make them more cost-effective and efficient in reducing the cost of nutritious foods, and increasing the availability, accessibility and affordability of healthy diets,” FAO Director-General QU Dongyu said at a side event held on the margins of the United Nations High-Level Political Forum on Sustainable Development (10-19 July).
Higher prices have increased the global food import bill to an estimated all-time high, surpassing $1.94 trillion, further stressing the balance of payments and increasing debt burdens, especially for net-importers of food. The participants touched upon the need to provide the enhanced support to the most vulnerable countries whose resources and budgets are under serious constraints ensuring that they have financial tools and safety nets especially at times of shocks (climate, economic, conflict and other unexpected factors) that result in higher prices.
They also agreed that global agrifood systems needed to be urgently transformed through effective policies, targeted investments and strengthened institutions. These actions are crucial since they are key to creating the conditions for an inclusive and sustainable transformation of economies and societies, and to achieving the Sustainable Development Goals (SDGs) by 2030.
122 million more people pushed into hunger since 2019 due to multiple crises, reveals UN report (FAO)
Over 122 million more people are facing hunger in the world since 2019 due to the pandemic and repeated weather shocks and conflicts, including the war in Ukraine, according to the latest State of Food Security and Nutrition in the World (SOFI) report published today jointly by five United Nations specialized agencies. If trends remain as they are, the Sustainable Development Goal of ending hunger by 2030 will not be reached
The 2023 edition of the report reveals that between 691 and 783 million people faced hunger in 2022, with a mid-range of 735 million. This represents an increase of 122 million people compared to 2019, before the COVID-19 pandemic.
“There are rays of hope, some regions are on track to achieve some 2030 nutrition targets. But overall, we need an intense and immediate global effort to rescue the Sustainable Development Goals. We must build resilience against the crises and shocks that drive food insecurity-from conflict to climate, said UN Secretary-General António Guterres through a video message during the launch of the report at the UN Headquarters in New York.
Fisheries subsidies negotiations ramp up ahead of text-based discussions in the autumn (WTO)
WTO members demonstrated an increased sense of urgency in their discussions at the fourth of a series of “Fish Weeks” held on 10-14 July regarding the second wave of fisheries subsidies negotiations, the chair, Ambassador Einar Gunnarsson of Iceland, reported at the end of the week. Members’ submissions and discussions are helping pave the way for text-based negotiations in the autumn ahead of the 13th Ministerial Conference to be held in February 2024, the chair said.
“Members came to this week with deepened reflections on various ideas on the proposals and texts on the table. It was clear that members have devoted considerable attention to all the elements before them. This effort remains a real indication of the sense of urgency and seriousness with which we are approaching this process,” Ambassador Gunnarsson said at the 14 July meeting of the Negotiating Group on Rules, bringing to a close the fourth Fish Week before the August break.
Second update of information note on integrated health, trade, IP response to COVID-19 launched (WTO)
The second update traces developments up until 17 May 2023. It provides an overview of the challenges encountered during the COVID-19 pandemic as well as the responses and initiatives taken to deal with the pandemic. Topics covered include the impact of COVID-19 on health systems and responses at the global level, policy challenges, meeting the demand for health technologies and medical services, international trade, intellectual property aspects, international initiatives to support research and development and equitable access, regulatory responses, transparency and mapping the way forward.
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UK-SA Tech Hub renews funding for South African startups group (Engineering News)
The UK-SA Tech Hub, an initiative of the British High Commission (Embassy) in South Africa, has announced that it will provide a second round of funding for South Africa’s Startup Act Movement (SUA). “Our role is to support South Africa’s high-growth startups – whether in the tech industry or by enabling SMEs [small and medium-sized enterprises] in rural and township communities to become tech-enabled businesses – to maximise the value and impact they have on the South African economy and job creation,” explains UK-SA Tech Hub director Milisa Mabinza.
Kenya to Abolish Visas for AU Member States (Foundation For Investigative Journalism)
By the end of the year, Kenya will open its borders to all African Union member states. Alfred Nganga Mutua, the cabinet secretary for Foreign & Diaspora Affairs of the Republic of Kenya, made this known in his welcome address at the 43rd ordinary session of the African Union Executive Council in Nairobi on Thursday.
“Kenya is committed to progressively, and we are moving very fast, to the end of this year, to abolish visas to citizens from African Union member states to make it easier to invest and do business in Kenya and across the continent,” Mutua said.
This, according to him, was Kenya’s contribution to the union’s free continental trade aspirations. “We are going to open the borders of Kenya. We do not fear our fellow Africans,” he said.
To roar again, Nigeria must unleash an industrial revolution, says African Development Bank chief (AfDB)
Nigeria urgently needs to revolutionise its industrial sector to become an economic giant. When it does, this will transform the lives of its people and Africa as a whole, the President of the African Development Bank, Dr. Akinwumi Adesina, said in Lagos on Thursday. Giving examples from some countries, he said this was doable.
Adesina said: “Malaysia and Vietnam have used aggressive horizontal and vertical diversification of industrial production to move from low-value to high-value market products. The result is reflected in the comparative wealth of the three countries. While the per capita export value is $7,100 for Malaysia and $3,600 for Vietnam, it is only $160 for Nigeria.”
Speaking on the theme ‘The Day the Lion Roared: making Nigeria a global industrial and economic giant,’ Adesina emphasised that Nigeria’s prosperous future could only be secured by strongly supporting the private sector to unlock wealth that would lift all its people.
Sierra Leone Taps Fast Payment Systems to Promote Fast Progress with Financial Inclusion (World Bank)
Earlier this month, Sierra Leone’s President Bio announced the launch of the National Payment Switch. This new financial infrastructure, which is part of a $12 million funding program from the World Bank, interconnects six commercial banks and enables payments interoperability among banks, microfinance institutions, mobile money operators and financial technology firms.
In the first phase of what President Bio defined as a “major step forward in this era of the fourth industrial revolution”, the new infrastructure will cover processing of card transactions carried out through point-of-sale and Automated Teller Machines managed by different financial institutions.
Walton Gilpin, managing director of Rokel Commercial Bank and chair of the Sierra Leone Association of Commercial Banks said the new payments infrastructure will advance financial inclusion and encourage a greater share of formal economic activity.
Thailand pursues FTA with East African community (Pattaya Mail)
Thailand has set its sights on establishing a free trade agreement (FTA) with the East African Community (EAC), in a bid to enhance trade and investment opportunities.
According to Department of Trade Negotiations Director-General Auramon Supthaweethum, discussions regarding an FTA recently took place between Thai officials and Kenyan Ambassador to Thailand, Kiptiness Lindsay Kimwole. The primary objective is to boost trade ties between Thailand and the seven-nation EAC bloc, which includes Burundi, the Democratic Republic of Congo, Kenya, Rwanda, South Sudan, Tanzania, and Uganda.
Recognizing the potential of the African market, Thailand’s Commerce Ministry has received requests from the private sector to pursue FTAs with African countries. Auramon expressed Thailand’s keen interest in an FTA with the EAC and outlined plans to convene a joint trade committee meeting with Kenya in the first quarter of next year. The meeting, to be hosted by Kenya, will serve as a platform to discuss trade and investment matters.
African Economic Outlook 2023: Opportunities abound for Asian investors in Africa, experts (African Business)
Africa offers vast investment opportunities for Asian countries with the appropriate incentives for their private sectors, Prof. Kevin Urama, Chief Economist and vice president of the African Development Bank Group has affirmed.
Urama made the call during a webinar to discuss the 2023 edition of the African Economic Outlook report. The African Development Bank organized the session jointly with the Korea Institute for International Economic Policy (KIEP) in Sejong-Si, Korea.
The report shows that Africa has remained broadly resilient despite experiencing significant shocks, particularly from the Covid-19 pandemic, climate change, and the Russian invasion of Ukraine. From an economic growth of 3.8% in 2022, the continent is set to climb to 4.1% in 2023 and 2024, exceeding the global average by 2.9% and the European average by 1.1%, according to the report, which estimates that growth in Asia would be higher, at 4.3%.
Urama said, “Africa must play a key role in the green transition, given that it is home to 60% of the world’s unexploited arable land and the minerals needed for green growth.” He said these resources could stimulate sustainable development and investments. “This is virgin land, which can be easily used to build low-carbon infrastructure without large-scale expenditure.”
Africa: U.S.-Africa Business Summit Looks to Enhance Africa’s Value in Global Chains (allAfrica)
Over 1,000 participants from the U.S. and across the African continent, including government officials, private sector executives, investors, and multilateral stakeholders, are meeting in Botswana’s capital city of Gaborone at the U.S.-Africa Business Summit to explore investment opportunities and strengthen business relationships between Africa and the U.S.
“The U.S. is focused on what we will do with African nations and with African people and not for African nations and people as we work to deepen and expand our partnerships, amplify African voices, and support the empowerment of Africans,” said Scott Nathan, Chief Executive Officer of the United States, International Development (DFC).
The 15th U.S.- Africa Business Summit, hosted by the Corporate Council on Africa (CCA) and the Government of Botswana in Gaborone, is under the theme Enhancing Africa’s Value Chains.
US agency sees Lobito rail corridor helping to diversify critical minerals supply chains (Engineering News)
US International Development Finance Corporation (DFC) CEO Scott Nathan has reiterated the American government’s interest in helping to finance the Lobito rail corridor, linking the copper and cobalt mining regions of the Democratic Republic of Congo (DRC) and Zambia to Angola’s Lobito port. Nathan, who is heading the US Delegation to the US-Africa Business Summit in Botswana this week, made specific reference to the corridor during a virtual media briefing hosted on the sidelines of the summit.
Responding to a question related to what progress had been made since the signing, in December, of a memorandum of understanding (MoU) signalling America’s support for the joint development by DRC and Zambia of a battery metals supply chain, Nathan made a direct link between the MoU and the Lobito corridor.
African trade ministers push for revamp of AGOA trade act (Semafor)
African trade ministers are urging the United States to overhaul the sweeping trade deal that has opened the US market to African products and renew it this year rather than waiting until the duty-free pact expires in 2025.
Renewing the African Growth and Opportunity Act AGOA immediately would remove uncertainty about the future of the pact and allow for suppliers and partners to better plan and maintain investments in African economies, ministers said during this week’s U.S.-Africa Business Summit in Botswana.
“We are speaking with the same voice that AGOA should be extended,” said Botswana’s trade minister Mmusi Kgafela at a summit panel on Wednesday. He said he and other African ministers want “an indefinite period” for the act. This would do away with the uncertainty involved around the current 10-year renewal cycle.
“There is a compelling case to reauthorize the AGOA now,” wrote Daniel F. Runde and Thomas Bryja for the Washington DC-based Center for Strategic and International Studies (CSIS) in a new paper on calling for AGOA to be renewed.
Atlantic Council fellow Frannie Léautier, who launched an AGOA report on Wednesday said the act “should be renewed by the US Congress for at least a ten-year period as soon as possible.”
There was also a call by ministers yesterday for the AGOA rules to be streamlined and made less cumbersome in order for more countries to be able to benefit more from the program.
Weak Global Economy, High Inflation, and Rising Fragmentation Demand Strong G20 Action (IMF Blog)
When the G20 finance ministers and central bank governors meet in Gandhinagar next week, the world will be looking for joint action to address rising economic fragmentation, slowing growth, and high inflation. Agile multilateral support is vital to tackle common challenges posed by debt vulnerabilities, climate change, and limited concessional financing—especially for countries hit by shocks not of their making.
In April, the IMF projected global growth at 2.8 percent in 2023, down from 3.4 percent in 2022. The bulk of it–over 70 percent – is expected to come from the Asia-Pacific region.
Yet, recent high frequency indicators paint a mixed picture: weakness in manufacturing contrasts with resilience in services across the G20 countries and strong labor markets in advanced economies. At the same time, financial fragilities uncovered by tight monetary policy require careful management—particularly as restoring price stability remains a priority.
The IMF forecast for global growth over the medium-term is around 3 percent—well below the historical average of 3.8 percent during 2000-19. Moreover, economic fragmentation will both undermine growth and make it harder to tackle pressing global challenges, from rising sovereign debt crises to the existential threat of climate change.
BRICS: South Africa’s weak transport network limits its trade opportunities (IOL)
South Africa has the potential to become a manufacturing hub for the continent if it fixes its infrastructure and refuses to be bullied by larger nations.
Praveer Tripathi, president of the Indian Business Forum, spoke candidly at the BRICS colloquium in Sandton on Thursday, where he called on BRICS countries to assist South Africa in resisting the “bullying”. Tripathi was part of a panel discussing ways in which trade and investment can be eased between BRICS countries in an era of trade partnerships.
One of the key elements in trade is logistics and South Africa has been brought under the spotlight for its failing rail, road and shipping infrastructure. Tripathi said with its impressive coastline, South Africa could easily become a manufacturing hub in the shipping industry, easily supplying BRICS countries.
South Africa courts Chinese investment ahead of BRICS summit (South China Morning Post)
South Africa is seeking more Chinese investments as it struggles with the impact of rolling blackouts and high unemployment.
Chinese President Xi Jinping is expected to lead a large business delegation to South Africa later next month when he attends the annual summit of the emerging markets group BRICS, which also includes Brazil, India and Russia, in Johannesburg.
On Tuesday, Fikile Majola, South Africa’s deputy minister of trade and industry, spoke to a business seminar in Beijing via video link, saying the country was looking to improve infrastructure.
“We are well aware that we must prioritise economic infrastructure, especially scaling up renewable energy capacity, roads and railways, ports, and airports, telecommunications and water infrastructure.”
UN Warns of Soaring Global Public Debt: a record $92 Trillion in 2022 (UNCTAD)
According to the report, 3.3 billion people now live in countries where debt interest payments are greater than expenditure on health or education. This five-fold surge in public debt levels since 2000, demands immediate action to tackle the escalating crisis affecting developing countries in particular.
The United Nations Secretary-General underlined: “On average, African countries pay four times more for borrowing than the United States and eight times more than the wealthiest European economies. A total of 52 countries – almost 40 percent of the developing world – are in serious debt trouble.”
Addressing the high cost of debt and the mounting risk of debt distress is of utmost importance. Establishing a debt workout mechanism is crucial to expedite progress under the G20 Common Framework for Debt Treatment, which has faced challenges due to creditor coordination issues and the absence of automatic debt service suspension clauses.
Members discuss possible TESSD outcomes for delivery at MC13 (WTO)
WTO members taking part in the Trade and Environmental Sustainability Structured Discussions (TESSD) on 11 July considered possible outcomes to promote opportunities for environmentally sustainable trade for delivery by the 13th Ministerial Conference (MC13) to be held in February 2024. Members also welcomed Barbados as the newest participant in TESSD, which now includes 75 WTO members as co-sponsors.
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Exports surge to N$43 billion in five months (The Namibian)
During the first five months of 2023, Namibia experienced a remarkable surge in exports, reaching an impressive value of N$43 billion. This figure exceeded the N$36,3 billion reached during the same period the previous year. According to the most recent data released by the Namibia Statistics Agency, uranium, diamonds, and fish continued to play vital roles in the country’s export earnings.
Uranium emerged as the leading export commodity, accounting for a staggering 21,5% of total exports in May. Diamonds claimed the second spot on the list of top exports, constituting 21,1% of Namibia’s total exports. Fish, another crucial component of Namibia’s export portfolio, claimed the third position, contributing 12% to the nation’s total earnings.
The Southern African Customs Union (Sacu) emerged as the dominant destination for Namibia’s goods during the period under review, capturing a significant share of 36,8% of the country’s total exports. Following closely behind Sacu were the Organisation for Economic Cooperation and Development (OECD) and Brazil, Russia, India, and China (the Bric countries), claiming the second and third positions, respectively, with 26,4% and 18,3% shares of Namibia’s total exports.
“Exports to Sacu consisted mainly of diamonds, non-monetary gold and petroleum oils, whereas uranium, fish and copper were destined to the OECD. The export basket to the Bric countries was mainly made up of uranium and ores,” the statistics agency says.
Kenya to Exploit Ties with Iran to Expand Trade (ZAWYA)
Kenya will exploit the strong ties it enjoys with Iran to expand trade. President William Ruto said trade volumes between the two countries are still low but with potential to grow. He explained that Kenya and Iran will strike a formula that will facilitate higher exports of tea, coffee and meat. “This will bring about the much-desired trade balance that is in favour of Iran.”
President Ruto observed that Kenya will also use the West Asian country’s wealth in technology and innovation for its development.
He explained that Kenya and Iran are strategically located to be each other’s key points of entry into their respective regions. “We will seek to capitalise on this unique advantage for our prosperity.”
Rwanda Maintains Strong Growth Momentum in Early 2023 (World Bank)
Rwanda’s economy grew by 9.2% in the first quarter of 2023, following 8.2% growth in 2022. But recent floods, resulting in the loss of life and destruction of infrastructure, are expected to moderate this momentum to 5.8% in 2023 against a pre-disaster forecast of 6.2%.
The 21st edition of the World Bank’s Rwanda Economic Update (REU) highlights positive developments in the country’s economic landscape. Momentum in growth was supported by private consumption and the services sector, accompanied by improvements in the labor market.
As its special topic, this 21st Rwanda Economic Update examines the inclusiveness of Foreign Direct Investment (FDI). While FDI inflows slowed during the COVID-19 pandemic, the report says, at their peak in 2014 these were well above the Sub-Saharan and East African average. FDI inflows, supported by a favorable regulatory environment, have played a crucial role in generating higher-quality jobs and access to social security, compared to their domestic counterparts.
“To improve the inclusiveness of FDI, Rwanda needs policies that focus on institutional reforms and infrastructure investments that will stimulate FDI to create jobs for women and youth and expand investment into poorer districts,” said Rolande Pryce, World Bank Country Manager for Rwanda.
Despite AfCFTA, Nigeria’s intra-African trade down 12% (TheNiche)
Nigeria’s intra-African trade value dipped 11.95 per cent year-on-year (YoY) from N956.93 billion in the first quarter of 2022 (Q1 2022) to N842.6 billion in Q1 2023, despite operation of the African Continental Free Trade Area (AfCFTA) since 2021.
AfCFTA projects 52.3 per cent expansion in continental trade by 2025, according to the International Monetary Fund (IMF). However, more than two years after the commencement of AfCFTA Nigeria’s trade value with other African countries in relation to its total foreign trade remains low.
The National Bureau of Statistics (NBS) report on Foreign Trade in Goods Statistics for Q1 2023 shows that at N842.6 billion, Nigeria intra-African trade was 6.99 per cent of its total foreign trade (N12.047 trillion) in Q1 2023. This is against 7.4 per cent contribution to total foreign trade (N13.001 trillion) in Q1 2022. Nigeria’s trade with other African countries also declined 24.87 per cent from N1.122 trillion in Q4 2022 to N842.6 billion in Q1 2023.
But Nigeria exported more than it imported, with exports rising from N444.418 billion in Q1 2022 to N665.10 billion in Q1 2023 while imports slashed from N512.513 billion to N177.50 billion.
Senegal’s Growth Prospects are Strong (IMF)
After slowing to 4.7 percent in 2022, growth in Senegal is projected to rebound to over 5.3 percent this year, due in part to an emerging oil and gas industry. This makes Senegal one of the strongest growing economies in sub-Saharan Africa. The country is facing some challenges, however, including spillovers from the war in Ukraine, tighter financing conditions, and increased political instability in the region. A widening fiscal deficit and increasing government debt are two major concerns.
The country has strong prospects however, reinforced by the production of oil and gas, which will give the economy a boost for the next few years. Growth is projected to accelerate to 10.6 percent in 2024 and 7.4 percent in 2025, with non-hydrocarbon growth expected to reach around 6 percent, assuming prudent macroeconomic policies and steadfast structural reforms are implemented under the IMF-supported programs.
The additional revenues from oil and gas exports will be set aside, in line with the new fiscal rule adopted, to ensure public spending can be sustained in the future, as the country transitions to renewables.
Tunisia: Trade deficit narrows to $2.8bln, end-June 2023 (ZAWYA)
The trade deficit narrowed to TND -8,686.9 million at the end of June 2023, against TND -11,775.5 million during the first half of 2022. This deficit can be explained by the 10% rise in exports and the 0.6% fall in imports in H1 of 2023.
The results of Tunisia’s foreign trade at current prices in H1 of 2023 reveal that exports rose by 10% compared with a 24.6% increase in the same period in 2022. They reached TND 31,271 million compared with TND 28,432.4 million during the first half of 2022. Imports fell by 0.6% compared with an increase of 32.4% at the end of June 2022.
Improving debt management in Mauritania (UNCTAD)
A recently concluded UNCTAD project has helped Mauritania improve its public debt management. Implemented as part of UNCTAD’s Debt Management and Financial Analysis System (DMFAS) programme, the two-year project has helped improve the availability of the sub-Saharan African nation’s debt data.
It lead to the publication of the country’s debt statistics bulletin in line with international standards. The bulletin now provides more comprehensive information on Mauritania’s public debt in a timely manner, enhancing transparency to inform policymaking and debt restructuring negotiations.
While public debt can be vital for development, UN analysis highlights how it can become a heavy burden and divert government resources from essential services, such as education and health.
PAP delegation in Kenya to push continental freed trade area agenda (The Herald)
Pan African Parliament (PAP) president Chief Fortune Charumbira is heading a delegation of the continental legislative body that is in Kenya to attend the fifth mid-year coordination meeting of the African Union that seeks to accentuate the drive to create a continental free trade area.
The PAP delegation will join representatives of regional economic communities and AU member states at the meeting that will be convened under the AU 2023 theme,” Acceleration of African Free Trade Area(AfCFTA) Implementation.”
There has been a growing chorus for African countries to leverage their vast natural resources base, value add and get more returns to pivot the continent towards sustainable growth for the benefit of African people and achieve Agenda 2063 targets. Looming large at the meeting will be the discussion and presentation on the status of continental integration in Africa in accordance with the Abuja Treaty.
Eliminate Non-Tariff Barriers to boost intra-African food trade (EAC)
African Union Members States have been called upon to adopt policies to encourage intra-African trade in food production by among other things removing Non-tariff Barriers (NTBs) that currently make imports from outside the continent costly compared to locally produced food. AU Member States were further urged to invest in irrigation agriculture by moving away from the reliance on rain-fed agriculture.
African countries were called upon to adopt policies that motivate the youth to take part in agriculture to ensure increased production and reduce food insecurity. These were some of the resolutions by the 14th African Union High Level Private Sector Forum that was held at the Kenyatta International Convention Centre in Nairobi, Kenya from 10th – 12th July, 2023. The forum further encouraged AU Member States to build resilient food systems which are climate resilient by employing technologies which promote investments in technologies that also address post-harvest losses.
Top agri opportunities in EAC region revealed (Farm Kenya Initiative)
A study by East African Business Council (EABC) in partnership with Sequa GmbH under the Business Scouts Fund and GIZ Business Scouts for Development offers useful insights on investment opportunities in the region. The study aims to address the region’s low foreign direct investment in agriculture, its reliance on food imports and vulnerability to global shocks.
The study shows Foreign Direct Investment (FDI) into the EAC region increased marginally between 2015 and 2021, primarily driven by investments from China and India, but the majority of the money has been directed towards the manufacturing, construction, and services sectors, rather than the agricultural sector.
The study reveals significant potential for developing value chains in wheat, edible oil (soya beans, sesame, palm oil), fertilisers, tubers (potato and cassava) and leguminous plants within the EAC.
China’s participation key to AfCFTA implementation, development (Engineering New)
South African diplomat and ambassador of South Africa to Madagascar Gert Grobler has emphasised the importance of the African Continental Free Trade Area (AfCFTA) in advancing Africa’s integrated cooperation and development, as well as the vital role that China can play in advancing progress with the AfCFTA through cooperation and development.
“Despite headwinds, trade between Africa and China jumped to a record of $260-billion in 2022 and continues to grow. This is owing to Beijing’s recent push to boost imports from Africa, with 11% year-on-year growth,” Grobler noted during a webinar, titled ‘The Future of Africa-China Trade and How to Get There’, hosted by the South African Institute of International Affairs (SAIIA) on July 12.
Grober added that, in supporting Africa to advance integrated cooperation, China had agreed to actively participate in the development of the AfCFTA, and provide continued support to the secretariat of the AfCFTA towards the full integration of this trade initiative.
AU mid-year meeting in Nairobi to focus on continental integration and financing (Ahram Online)
The meeting brings together Regional Economic Communities (RECs), Regional Mechanism (RMs) and member states to review the progress of the continental integration agenda.
The meeting will explore ways to enhance integration, including promoting free movement and the African passport, as well as connecting infrastructure and financial markets. It will also explore establishing a common African market to accelerate trade, agriculture, establishment of businesses, and transfer of skills in Africa.
To accelerate these efforts, the meeting will discuss the division of labour between the AU, RECs, RMs, and member states, anchored on the principles of subsidiarity, complementary, and competitive advantage.
The division of labour is centred around six pillars: policy planning and formulation; policy adoption; policy implementation; monitoring, evaluation and reporting; resource mobilization; and partnerships.
Also on the agenda will be the financing of Agenda 2063, focusing on Africa’s economic recovery and the implementation of initiatives to address challenges in agriculture, infrastructure, debt, climate change, security, energy, and health. This year’s meeting will be preceded by the meeting of the AU’s Executive Council on 13-14 July.
The ministerial meeting will discuss the implementation of the African Continental Free Trade Area.
Africa needs an extra $194bln per year to 2030 to achieve SDGs (ZAWYA)
Africa needs an extra $1.6 trillion by 2030 - $194 billion annually - to achieve its Sustainable Development Goals (SDGs). To attract more and better investment and fill that gap, African governments and their partners should improve information to investors, increase the capacity of African development finance institutions, and boost regional projects, according to the 2023 edition of Africa’s Development Dynamics.
Africa’s real GDP growth is expected to reach 3.7% in 2023, a return to pre-Covid-19 levels. In addition to these positive economic perspectives, the continent boasts unique human and natural assets to attract investors: half of the African population is 19 years old or younger
As for natural capital, which accounts for 19% of Africa’s total wealth, it offers large opportunities for investing in sustainable development: for example, African forests increased the global carbon stock by 11.6 million kilotonnes of CO2-equivalent net emissions from 2011 to 2020, as the Congo Basin became the world’s largest carbon sink.
Despite that potential, global crises have been affecting investment in Africa more negatively than in the rest of the world. For instance, Africa’s share of global greenfield foreign direct investment has dropped to 6% in 2020-21 (the lowest share in 17 years), while high-income countries elsewhere have recorded their highest share ever (61%), compared to 17% for developing Asia and 10% for Latin America and the Caribbean. The cost of capital in Africa has also risen above the levels in other parts of the world, pricing some African governments out of bond markets while thwarting investments in transformational sectors such as renewable energy.
US to Adopt Instant Payments System (Business Post Nigeria)
The United States will join the likes of Nigeria, India, and Thailand, among others, with a banking system that supports instant payments following plans by the US Federal Reserve to roll out its FedNow Service.
The US is the largest economy in the world but it has one of the most rigid banking systems in the world as banking services are mostly conducted within business hours. This means that even if a transaction is done within seconds, it may take hours or several hours for the receiver to get the funds.
Money-moving apps like Venmo, Zelle, and CashApp have sprung up to cover this gap in recent years, but regardless, the problem persists since these transfers are operated on networks that work during working hours.
The US central bank with FedNow will offer banks a way to make instant payments available in the country, a feature that Nigerian customers have enjoyed for almost 10 years.
Gabon formally accepts Agreement on Fisheries Subsidies (WTO)
DG Okonjo-Iweala said: “I am grateful to Gabon for its formal acceptance of the WTO Agreement on Fisheries Subsidies. Illegal, unreported and unregulated (IUU) fishing costs Africa over $2.3 billion in economic losses every year, according to estimates from the African Union Commission, so I am particularly pleased to see another acceptance from the continent. This is the latest sign of Gabon’s commitment to building a truly sustainable ocean environment and economy: the country has created one of the largest marine reserves in Africa, and its Gabon Bleu programme includes measures to fight IUU fishing. Fish consumption in Gabon is above the global average, and food security in the country stands to gain from the agreement’s rapid entry into force. I hope this serves as an inspiration to other WTO members.”
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South Africa: SARS’s Authorised Economic Operators Programme (Global Compliance News)
Today’s global economy demands that businesses expand beyond borders, but they face hurdles from customs, as well as regulatory barriers in different countries and regions that make this expansion challenging. The South African Revenue Service Authorised Economic Operators (AEO) programme offers numerous benefits for businesses trading within the regional market of the Southern African Custom Union and internationally.
In May this year, Botswana, Eswatini, Lesotho, Namibia and South Africa, the Member States of the Southern African Customs Union (SACU), signed the Mutual Recognition Arrangement to recognise SACU importers and exporters that have been granted AEO status. The SACU Revenue Administration is also committed to facilitating cross-regional trade and being alert to all its risks to reduce poverty, inequality, and unemployment.
For South African businesses involved in trade within the regional market of the SACU and internationally, there is an opportunity to achieve AEO status. AEO status is available to businesses such as manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses, distributors and freight forwarders. In addition, Small, Medium, and Micro Enterprises (SMMEs) within the same trade zone are eligible for the AEO programme. However, SARS Customs approval is necessary before AEO status can be achieved. The AEO programme is divided into different accreditation levels, as explained below.
Manufacturing production increased by 2.5% y/y in May (Engineering News)
Statistics South Africa has reported that manufacturing production increased by 2.5% in May this year compared with May last year. The largest contributions were made by the motor vehicles, parts and accessories and other transport equipment (15.1% and contributing 1.4 percentage points) and the basic iron and steel, non-ferrous metal products, metal products and machinery (5.8% and contributing 1.2 percentage points) sectors.
South African Business Groups Concerned as US Reviews Trade Program (VOA)
South African business groups are pushing the government to make strong diplomatic efforts to ensure the country is not stripped of its duty-free access to the U.S. market.
A group of U.S. senators recently questioned South Africa’s status under the African Growth and Opportunity Act, citing Pretoria’s ties with Moscow. South Africa has invited Russia President Vladimir Putin to an August summit despite his invasion of Ukraine and his being wanted by the International Criminal Court.
Relations between Pretoria and Washington have so deteriorated in recent months that South African business groups are now scrambling to try and make sure the country isn’t kicked out of an important U.S. tariff-free program.
The U.S. Congress is beginning to review the renewal of the African Growth and Opportunity Act, known as AGOA, with a decision expected by the end of the year. Some U.S. senators recently wrote a letter saying South Africa should no longer host an AGOA forum set for later this year. They also raised the prospect that the country could lose access to its trade benefits entirely.
Busisiwe Mavuso, CEO of Business Leadership South Africa, an independent association of some of South Africa’s largest businesses, said she was preparing a submission urging the U.S. to renew South Africa’s participation in AGOA.
Mavuso said South Africa is the largest single beneficiary country under AGOA, with 25% of the country’s exports going to the U.S. and nearly a billion dollars’ worth of exports to the U.S. in the first three months of this year alone.
How Kenya and the EU can close the loop on textiles (ECDPM)
The costs of green technologies are going down, which creates opportunities for green industrialisation in Kenya and beyond. European foreign direct investment can contribute to such a journey, in line with the EU’s ambition to promote European private sector engagement for sustainable development worldwide, as outlined in its Global Gateway strategy. The Kenyan government could seek closer collaboration with the EU and its member states, including their private sector.
Traders shift from Northern Corridor to rail on high fuel costs (The East African)
Increasing cost of fuel in Kenya after enactment of the Finance Act 2023 will increase transport cost along the Northern Corridor by more than 30 percent, with some traders already opting to use rail to ferry cargo from the Port of Mombasa to the hinterland.
The Shippers Council of Eastern Africa (SCEA) has already shown more interest in using railway to cut cost of transportation as rail charges remain unchanged since the standard gauge railway freight train was introduced five years ago.
In March last year, long distance transporters increased transportation charges by five percent and the announcement to increase charges further will make the corridor one of the most expensive routes in the region.
According to latest traffic cargo report, Naivasha ICD recorded a sharp increase in usage by conventional cargo compared to containerised, with grain and fertiliser boosting throughput – an indication of a shift resulting from high cost of transporting cargo using trucks.
FG moves to scale up production of electric vehicles (Businessday NG)
Nigeria’s post-fuel subsidy era appears to be heading the way of electric as the federal government, through the National Automotive Design and Development Council (NADDC), has acquired locally-assembled electric vehicles with their charging infrastructure from Nigerian mobility technology company, Jet Motors, a move that may signal the future of mainstream mobility in the country.
Jelani Aliyu, director general of the NADDC, informed that government is set to put a policy in place to scale up the production of Electric Vehicles working in partnership with local automotive companies and other relevant stakeholders.
He informed that the NADDC will in the next two weeks, ratify Electric Vehicle Development Plan, which is a set of fiscal and non fiscal incentives and other programmes such as training of mechanics to support local production of electric vehicles.
Vibrant private sector crucial to economic growth in Africa (EAC)
Kenya’s Cabinet Secretary for East African Community and Arid and Semi-arid Lands, Hon. Rebecca Miano, has underscored the importance of a vibrant private sector in promoting economic growth at the national, regional and continental levels in Africa. Hon. Miano said that the Private Sector accounts for 80 per cent of Africa’s total production, two-thirds of investment and three-quarters of credit in addition to employing 90 per cent of the continent’s working-age population.
Ms. Miano said that a robust private sector was indispensable to the realisation of Africa’s sustainable and economic transformation. “The success of Africa’s economic integration is premised on the role of the private sector in achieving growth objectives of Africa’s economies, and by extension, creating greater wealth and expanding employment opportunities,” said the CS.
“Regional value chains are essential for promoting intra-African trade, economic integration, and industrial development. They offer opportunities for countries to leverage their comparative advantages, enhance productivity, create jobs, and increase their share of value-added activities within the global economy,” said Ms. Miano.
The CS was giving the keynote address during the opening session of the 14th African Union High Level Private Sector Forum at the Kenyatta International Convention Centre in Nairobi, Kenya.
EAC unveils an online Tool to measure performance of One Stop Border Posts (EAC)
The East African Community (EAC) has unveiled an online tool to measure the performance of the 22 One Stop Border Posts (OSBPs) across the region. The EAC Secretary General in charge of Customs, Trade and Monetary Affairs, Ms. Annette Ssemuwumba, unveiled the One Stop Border Post Performance Measurement Tool on behalf of the EAC Secretary General, Hon. (Dr.) Peter Mathuki, during the opening session of the 14th African Union High Level Private Sector Forum that is taking place in Nairobi, Kenya this week.
Ms. Ssemuwemba announced that the tool is now ready for use and that Partner States and stakeholders will embark on data collection, sensitisation on use and full roll out.
Customs administrators in the EAC region will use the data generated by the measurement tool to assess OSBP performance and institute improvement strategies. Specifically, the tool has been developed to provide the necessary mechanism to measure the performance of OSBPs on six fronts, namely: Time, Cost, Volume/ Throughput, Infrastructure, Inter-Agency Coordination and User Satisfaction.
Seychelles considers joining Single African Air Transport Market (Seychelles News Agency)
Seychelles is still evaluating whether or not to sign an agreement to be part of the Single African Air Transport Market (SAATM), an initiative of the African Union (AU), said a top government official on Tuesday.
The Single African Air Transport Market seeks to promote connectivity, boost intra-African trade and tourism, and enhance economic integration among African countries. “One of the reservations we have is that we are protecting our aviation industry, including Air Seychelles. We want to ensure that when we do sign this agreement, we will protect Air Seychelles, and at the same time we will do all that is necessary to expand as a regional airline,” said the Minister for Transport, Anthony Derjacques, at the opening of a two-day workshop.
AfDB, WAMI Advocate Capital Markets Integration To Boost Cross Border Investment (Leadership)
The African Development Bank(AfDB) and West African Monetary Institute (WAMI), have called for capital markets integration to boost cross border investment in the West African region. This will be done through West African Monetary Institute Capacity Building/Sensitisation Programme on West African Capital Markets Integration (WACMI) Phase II Project holding on July 11 to 12, 2023 in Lagos.
The director-general of WAMI, Dr. Olorunsola Olowofeso said, integrated capital markets will foster cross border investment, stimulate and deepen the regional financial markets through a series of activities aimed at harmonising capital market operational rules, while providing aggregated financial markets information.
Olowofeso stated that, “the project emphasises knowledge transfer and capacity building through workshops and technical training sessions to build the capacity of market operators, regulators, asset managers, financial infrastructure providers and other capital market participants on a range of financial market issues including regulations, supervision, innovative financing, cross-border investments and settlements.”
US-Africa Business Summit kicks off (Mmegi Online)
The US Africa Business Summit took off today in Gaborone, with over 1,200 delegates registered and the promise of deals being made across various economic sectors.
The summits, organised by the Corporate Council on Africa – a trade association focusing on strengthening commercial relationships between the United States and Africa – are the premier platforms for bringing together African heads of state and other senior US and African government officials with top African and American senior business executives.
On Monday, Botswana Investment and Trade Centre CEO, Keletsositse Olebile told media that the organisation is ready to capture the attention of an array of institutional investors seeking to channel capital investments into Botswana.
“Our value proposition is simple as we engage investors, pick Botswana as a landing pad for investments, and position Botswana as an investment hub for your capital,” he said.
“The recently ratified AfCFTA agreement strengthens our communication and should excite investors to come to the mainland so that they can launch into the rest of Africa from a stable jurisdiction,” he said.
Inside EU battle for resource-rich eastern Africa (The East African)
The European Union’s battle for influence in East Africa is taking shape with increasing private investment and funding across the region. This follows a €150 billion ($170 billion) pledge for investment pledge made in February last year at the EU-Africa Summit in Brussels, Belgium.
While Europe maintains that it is not in competition with China for influence on the continent, its priority sectors now include building infrastructure, including rapid bus transit systems, which have been dominated by China. It also targets health, education, and climate change adaptation.
The EU’s Global Gateway strategy, which has largely been seen as an answer to China’s Belt and Road Initiative, plans to mobilise up to €300 billion ($331 billion) in public and private investments by 2027, with half of it designated for African countries.
Leaders push for new global financing model that fits Africa (The East African)
Rising interest rates, inflation and commodity shocks have raised the likelihood of an overlap of debt crises in Africa. The International Monetary Fund estimates that 30 percent of emerging markets and 60 percent of low-income countries could face difficulty paying their debts.
Additionally, there has been a marked change in the global credit landscape over the past decade, with China and private bondholders -- who are the main creditors for the low-income economies – making the traditional structures less effective for present-day debt challenges.
At the Shareholders General Meeting of infrastructure lender Africa50 early this week in Lome, Togo, African financial and political leaders looked at different ways of enhancing financial and credit access and all agreed that a fundamental shift is required. The leaders have taken up the push for a re-engineering of the global financial architecture, seeking a model that works for the continent.
“It is failing the world,” said Dr Akinwumi Adesina president of the African Development Bank (AfDB). “It is not able to mobilise the capital that the world needs to meet all of its development needs.” “It is also failing developing countries because you can see that even after Covid, Africa still needs about $250 billion to recover. We need $277 billion a year to deal with climate change, plus you still have to deal with Africa’s debt: today countries have to pay a lot in terms of repayment and service of debt,” he added.
India ups lending to Africa in bid to counter China’s dominance (The North Africa Post)
Africa has become the second-largest recipient of credit from India while over the past decade 18 of the 25 new Indian embassies or consulates were opened in the continent, as the South Asian powerhouse tries to catch up with China’s massive sway in the resource-rich continent.
Many African nations received about $12 billion or 38% of all credit extended by India in the past decade, just a few percentage points below its neighbors, according to Harsha Bangari, Managing Director of India’s Export Import Bank. The bank is an instrument of India’s “economic diplomacy,” Bangari said, adding that the South Asian nation has also opened up 195 project-based lines of credit across Africa, three times the number it has in its own region in the last decade. These credit lines have been utilized for crucial projects in healthcare, infrastructure, agriculture, and irrigation, driving a steady increase in demand from Africa.
Despite these impressive figures, India has lagged behind its bigger and wealthier neighbor in making inroads in Africa. While China’s loans to Africa have dipped since 2016, overall between 2010-2020, it pledged $134.6 billion, or more than 11 times more than which India has offered, to African nations, according to data from Boston University’s Global Development Policy Center. China has also made an early move to tap mineral resources in Africa, including new centers of lithium supply, helping it navigate a tight market for a key metal for electric vehicles.
Cross-border e-commerce brings more opportunities for China-Africa trade cooperation (Global Times)
The traditional model for trade, which often involves manual placement of orders, is now unable to satisfy the growing trade demand between China and Africa, with cross-border e-commerce becoming another driving force for bilateral trade, which is facilitating booming growth in economic ties.
Mouhamadou Bassirou Pouye, a Senegalese businessman who is engaged in cross border e-commerce has witnessed a rising volume of business over recent years. With the help of e-commerce platforms, he brought popular agricultural products in his country, including peanuts and coffee, to China, while also shipping goods from Yiwu, the world’s largest commodities hub located in East China’s Zhejiang Province, to his country.
DRC will take advantage of China’s export limits on rare metals amid global supply concerns (The North Africa Post)
Invoking national security concerns, Beijing on Monday (4 July) announced export limits on select gallium and germanium components, raising concerns about global supply chain disruptions for semiconductor and defense industries. With China’s dominance in the production of the two obscure yet crucial metals, other countries like Australia, Europe, and the United States are exploring opportunities to develop their own projects in order to reduce their reliance on Chinese supply. Experts warn that China’s move is only the latest stage of an escalating trade war on technology with the US and Europe.
Africa: Boosting energy transition – initiatives, funding and investment (Global Compliance News)
In Africa, 43% of the population does not have access to electricity, mostly in sub-Saharan Africa, according to a recent report by the International Energy Agency. Increasing access to a clean, decarbonized, and decentralized energy supply is therefore critical for the continent.
The growing focus on the energy transition can benefit Africa in numerous ways, including that the continent is already in the process of harnessing its vast supply of renewable energy to generate power and is also gearing up to increase trade in its large store of critical minerals, needed for the global energy transition.
To enable this transition, countries across Africa are implementing policies that take into account the energy crisis, the need for a renewable energy supply that addresses climate change and the commitments made under the Paris Agreement. In addition, many countries in Africa and other jurisdictions are launching initiatives and providing funding, investments and grants for African renewable energy projects.
What does Climate Risk really mean for African economies? (OECD Development Matters)
Discussions on green and climate finance in Africa often dwell on two issues. The first is why it’s so difficult to scale-up this type of financing on the continent. The second is the issue of layered risk: some are not keen to layer ‘ESG’ risk on top of ‘Africa’ risk in investments.
The first concern on scaling green and climate finance in Africa is understandable. From a demand perspective, the Africa Development Bank estimates that the continent will require an average of USD 1.4 trillion between 2020-30, yet in terms of supply, climate finance committed and mobilised for Africa is falling short. As it stands, there will be an estimated annual climate financing gap of USD 99.9–127.2 billion between 2020–30. It follows that meeting climate financing commitments already made is likely to be a challenge.
Compounding this dilemma, is the continent’s seeming inability to absorb green and climate investors already interested in Africa. For climate financiers, risks associated with informality and the dominance of SMEs on the continent mean that investments originate and are implemented in an environment dominated by small ticket sizes, data holes, information asymmetry, lack of standardisation, limited line of sight to impact, and concerns about verification and compliance.
The market for minerals that help power electric vehicles, wind turbines, solar panels and other technologies key to the clean energy transition has doubled in size over the past five years, according to a new report by the International Energy Agency.
The first annual IEA Critical Minerals Market Review, released today along with a new online data explorer, shows that record deployment of clean energy technologies is propelling huge demand for minerals such as lithium, cobalt, nickel and copper. From 2017 to 2022, the energy sector was the main factor behind a tripling in overall demand for lithium, a 70% jump in demand for cobalt, and a 40% rise in demand for nickel. The market for energy transition minerals reached USD 320 billion in 2022 and is set for continued rapid growth, moving it increasingly to centre stage for the global mining industry.
In response, investment in critical mineral development rose 30% last year, following a 20% increase in 2021. Among the different minerals, lithium saw the sharpest increase in investment, a jump of 50%, followed by copper and nickel. The strong growth in spending by companies on developing mineral supplies supports the affordability and speed of clean energy transitions, which will be heavily influenced by the availability of critical minerals.
Rapid poverty reduction in some countries, data missing in many others (UN News)
According to the updated global Multidimensional Poverty Index, revealed on Tuesday by the UN Development Programme (UNDP) and the Poverty and Human Development Initiative at the University of Oxford, progress was seen in India, where 415 million people exited poverty in just 15 years, as well as in China (69 million) and Indonesia (8 million).
“As we reach the mid-point of the 2030 Agenda for Sustainable Development, we can clearly see that there was steady progress in multidimensional poverty reduction before the pandemic,” Pedro Conceição, Director of the Human Development Report Office, said.
But the lack of data for most of 110 countries covered by the index restricts the understanding of just how deeply the pandemic has impoverished millions, highlighting the urgent need to strengthen data collection.
One year of the Black Sea Initiative: Key facts and figures (UN News)
Nearly one year into the agreement, more than 32 million tonnes of food commodities have been exported from three Ukrainian Black Sea ports to 45 countries across three continents. The partial resumption of Ukrainian sea exports enabled by the Initiative has unblocked vital food commodities and has helped reverse spiking global food prices, which reached record highs shortly before the agreement was signed.
Although global food commodity prices have generally fallen, many factors influence food affordability and domestic food inflation, including exchange rates. The Initiative has helped reconnect foodstuffs from Ukraine to global supply chains, contributing to lower prices on world markets.
Before the conflict, Ukraine was one of the leading grain exporters and the leading global exporter of sunflower oil. Its produce must continue to flow unhindered to supply markets and help to contain prices. A lack of food supplies produces knock-on effects for the lives of millions of people, particularly the poorest, hitting them hard in the areas of health, education, and social cohesion. The Initiative has allowed the partial resumption of vital food supplies into the market. It has given Ukrainian farmers some level of predictability in production and harvest and has revived key shipping lanes.
Twin transition for global value chains: Green and digital (UNCTAD)
The green and digital transitions have developed in parallel to date, especially in latecomer countries, but green and digital technologies are increasingly becoming intertwined. Future policies should focus on aligning green and digital strategies, developing digital competencies and strengthening financial support and international partnerships.