All News
tralac Daily News
Bilateral set to cement SA-US relations (SAnews)
Anti-money laundering, climate financing and sovereign debt resolution in Africa are expected to top the agenda when Finance Minister, Enoch Godongwana, engages United States Secretary of Treasury, Janet Yellen, during a bilateral meeting on Thursday.
Addressing media ahead of the closed meeting today, Godongwana described the bilateral as a “momentous occasion”. He said there had been constructive cooperation between the two countries through the G20 and the Financial Stability Board, including making appropriate regulatory standards for the financial sector. “There has also been broader cooperation between the US and the African region,” said the Minister.
“The USA ranks among South Africa’s top trading partners with a diverse flow of goods, services and knowhow between the two States, serving as a critical launch pad for the development of both economies. My hope is that this may continue,” said Godongwana.
FG moves to end relocation of automobile industries (Daily Trust)
The federal government has initiated moves to reform the automobile industry to attract companies to invest in the country.
Speaking during a stakeholder consultative yesterday, the Permanent Secretary of the Ministry of Finance, Budget and National Planning (FMFBNP), Engr. Nebeolisa Anako, said the increasing rate of relocation of manufacturing companies from Nigeria to neighboring countries such as Ghana, Benin Republic, among others due to the high cost of doing business is worrisome.
“In order for us to benefit maximally from the Industry, especially in view of the African Continental Free Trade Area (AfCFTA) window, there is a need for experts and stakeholders in the industry to deliberate, identify, and fashion out a roadmap that will enable government addresses the specific issues affecting the Industry.
“The sector needs to be revived to increase its contributions to the National development as well as the Gross Domestic Product (GDP). The crucial role of the Automobile Industry in the development of Nigeria’s economy cannot be over-emphasized.
Ghana summit on Africa’s prosperity opens in Accra (Africa Feeds)
African political and business leaders gathered in Ghana’s capital Accra on Thursday for a summit on the continent’s prosperity agenda. Dubbed the “Africa Prosperity Dialogue Series” participants have been discussing how Africa can achieve deeper economic integration between different states. Ghana is the host nation of the AfCFTA (The African Continental Free Trade Area) Secretariat, which is spearheading an agenda of reducing trade barriers on the continent.
The vice president of Ghana, Dr. Mahamadu Bawumia who spoke at the start of the summit said the continent must get serious in reducing poverty through what he called “smart investments.”
“As a continent, we need to produce and trade our way out of poverty and underdevelopment, and we cannot do that without investing in smart infrastructure across the continent,” he said.
The Ministers responsible for Transport and Corridor Development from Angola, Democratic Republic of Congo and Zambia with support and coordination of the Secretariat of the Southern African Development Community (SADC) will sign the Lobito Corridor Transit Transport Facilitation Agency (LCTTFA) Agreement at Lobito Port, Province of Benguela, Angola, on the 27th January 2023.
Lobito Corridor stretches from the Port of Lobito lying on the Atlantic Ocean, and passes through Angola from West to East through the Provinces of Benguela, Huambo, Bie’ and Moxico. It covers the mining areas of the Katanga Province of DRC and the Copperbelt of Zambia.
Lobito Corridor Transit Transport Facilitation Agency Agreement will accelerate growth in domestic and cross-border trade along the Corridor through the implementation of harmonised trade facilitation instruments, strengthening coordination of joint corridor development activities, and fostering effective participation of small and medium enterprises (SMEs) in value chains.
The signing of the corridor governance instrument will create a framework for the three SADC Member States to jointly develop harmonised corridor laws, policies, regulations and systems including infrastructure development in a coordinated and coherent manner aligned to the SADC Treaty, Protocols and development frameworks such as the Regional Indicative Strategic Development Plan 2020-2030, Regional Infrastructure Development Master Plan 2020-2027 and SADC Industrialization Strategy and Roadmap 2020-2063.
More Countries Keen to Join the TFTA (COMESA)
There is renewed momentum and willingness by COMESA-EAC-SADC Member States that are yet to ratify instruments of the Tripartite Free Trade Area (TFTA) to finalize internal consultations and join the eleven countries that have already signed the Agreement. Once 14 countries sign, the TFTA will be set into motion.
As Chair of the COMESA-EAC and SADC Tripartite Taskforce, COMESA has increased engagements with the remaining countries to ratify their instruments to join the TFTA.
“We are engaging and strategically approaching all the remaining member states who are yet to sign to do so as soon as possible so that by mid this year we can have the three or more remaining to bring the countries required to 14 for the Agreement to enter into force,” said Dr Christopher Onyango, the Director of Trade and Customs at COMESA Secretariat.
Draft Tripartite Protocol on Competition Policy Moves to next Stage (COMESA)
The proposed Tripartite Protocol on Competition Policy has been reviewed by the Tripartite Committee of Senior Trade Officials and will be recommended to the Tripartite Sectoral Ministerial Committee meeting for consideration before being submitted to the Council of Ministers for adoption.
The Protocol on Competition Policy does not provide for the creation of a Supra-national competition authority but is based on cooperation in the enforcement of competition and consumer protection matters by the Member/Partner States and Regional Economic Communities (RECs). It also guides Member/Partner States and RECs on the competition and consumer protection provisions that they should have at national and RECs level as well as to set up enforcement institutions.
Following the finalisation of the Protocol on Competition Policy, the Member/Partner States and the RECs are in the process of developing Regulations and Guidelines to guide the implementation its. Two meetings have since been held between September 2022 and January this year to discuss the Regulations and Guidelines.
African Development Bank Group plans to invest $10 billion over the next five years to boost Africa’s efforts to end hunger and become a primary food provider for itself and the rest of the world, Bank Group President, Dr Akinwumi Adesina, announced on Wednesday at the Dakar 2 Africa Food Summit in Diamniadio, east of the Senegalese capital of Dakar.
Adesina called on more than 34 heads of state, 70 government ministers, the private sector, farmers, development partners, and corporate executives to work out compacts that would deliver food and agriculture transformation at scale across Africa. He encouraged them to take collective action to unlock the continent’s agricultural potential to become a global breadbasket.
The Dakar 2 summit—under the theme Feed Africa: food sovereignty and resilience—takes place amid supply chain disruptions caused by the Covid-19 pandemic, climate change, Russia’s invasion of Ukraine.
China-Africa trade soars on spike in commodity prices (Nikkei Asia)
Africa’s bilateral trade with China surged to a record high last year, highlighting how Beijing’s commercial influence over the continent continues to dwarf that of the U.S. Rising commodity prices and Beijing’s push to promote imports from Africa pushed trade up 11% to $282 billion in 2022. China’s exports to Africa were $164.49 billion, according to Chinese customs authorities, while imports reached $117.51 billion.
Yellen says Africa to shape world economy as US reengages (KTAR.com)
U.S. Treasury Secretary Janet Yellen watched Ford cars and pickup trucks being assembled at a plant in South Africa on Thursday, citing it as an example of cooperation between Washington and Africa as she begins the Biden administration’s big push to reengage with a continent that has 1.3 billion people and an abundance of economic potential.
“The United States’ strategy towards Africa is centered around a simple recognition that Africa will shape the future of the global economy,” Yellen said at the Ford plant in the suburb of Silverton in the South African capital, Pretoria.
“We know that a thriving Africa is in the interest of the United States. A thriving Africa means a large market for our goods and services. It means more investment opportunities for our businesses like this Ford plant, which can create jobs in Africa and customers for American businesses.”
African mining investors see opportunity amid rising insecurity and recession fears (Mining Weekly)
The “world’s largest investment conference”, the Investing in African Mining Indaba, looks to entice investors to Cape Town’s International Convention Centre in hopes of righting “Africa’s myriad economies” following successive years of geopolitical shifts and economic disruptions, says international exhibition organiser Hyve Group’s Mining Indaba portfolio director Simon Ford.
This year’s theme – ‘Unlocking African Mining Investment: Stability, Security and Supply’ – speaks to the promise of African mining that sees recent changes “create pressure points and opportunities”, says Ford, noting that global economies are seeking security of supply for their energy transitions, as well as raw materials and precious metals to bolster their economic power.
“We would say that – in many reaches of Africa – the potential of mining is still untapped, and that there is significant opportunity for mining to attract capital and be transformative.” However, the global uncertainty and instability have yet to subside, with both the Russia-Ukraine conflict and the consequences of the Covid-19 pandemic lingering longer than many anticipated. There is also the niggling threat of a global recession.
IFAD and AfDB aim to boost productivity in Africa (Fruitnet)
The African Development Bank (AfDB) and the UN’s International Fund for Agricultural Development (IFAD) have signed a letter of intent in support of the pan-African Mission 1 for 200 (M1-200), a joint initiative to “reduce Africa’s food import dependency, and build sustainable, inclusive and climate-adapted food systems”.
“The current convergence of crises has exposed the underlying structural issues affecting agriculture and food systems,” said IFAD President Alvaro Lario. “Many countries in Africa need to find solutions now to avert more extreme consequences.”
In Africa, high fertiliser prices are hampering production in many low-income countries, while food supplies are impacted by the war in Ukraine and the effect of the climate crisis in many countries. The result has been an 8.5 percent rise in the cost of a typical food basket in Africa since 2020, according to data from the International Monetary Fund.
Africa’s energy access struggles a development stumbling block (ESI-Africa)
An African Development Bank Group team recently met with Swiss envoys working in West Africa to discuss Africa’s development agenda and energy access was highlighted as still being a big stumbling block to development.
Daniel Schroth, Director for Renewable Energy and Energy Efficiency, said Africa is not on track to meet United Nations’ Sustainable Development Goal number seven on universal energy access. He explained that as a result of the COVID-19 pandemic, for the first time in recent years the number of people without access to energy actually increased. He added that Africa’s lack of access to energy is slowing down the achievement of the other development goals.
“In view of the critical role of energy for development at large, the African Development Bank placed energy at the top of its agenda for the continent,” said Schroth.
Africa needs to adopt Open Skies policy, says EAC SG Mathuki (KBC)
Africa needs to adopt the Open Skies policy to improve air transport and in a united front, collaborate on the interconnectivity of the road networks to facilitate trade and movement of goods and services, EAC Secretary General has said.The East African Community Secretary (EAC) General Dr Peter Mathuki further called on the continent to deepen collaboration and address some of the issues hampering the region’s growth.
African countries have also been asked to provide investment incentives to businesses operating in the agribusiness, green and blue economy in order to reduce the soaring costs of basic foodstuffs coupled with rising inflation in Africa.
Global economic uncertainty remains elevated weighing on growth (IMF)
The shocks that have shaken the global economy in recent years have introduced a new normal for turbulence, driven in some cases by political fragmentation between countries. These episodes have also lifted uncertainty to exceptionally high levels, which in turn hurts economic growth as our research shows.
To better track the evolution of these conditions, we updated our World Uncertainty Index to show more frequent readings that are monthly, instead of quarterly, and incorporate data for 71 economies dating back to 2008.
A series of severe and mutually reinforcing shocks — the COVID-19 pandemic, the war in Ukraine and resulting food and energy crises, surging inflation, debt tightening, as well as the climate emergency — battered the world economy in 2022. Against this backdrop, world output growth is projected to decelerate from an estimated 3.0 per cent in 2022 to 1.9 per cent in 2023, marking one of the lowest growth rates in recent decades, according to the United Nations World Economic Situation and Prospects (WESP) 2023, launched today.
“This is not the time for short-term thinking or knee-jerk fiscal austerity that exacerbates inequality, increases suffering and could put the SDGs farther out of reach. These unprecedented times demand unprecedented action,” said António Guterres, United Nations Secretary-General. “This action
Related News
tralac Daily News
The 53rd Annual Meeting of the World Economic Forum (WEF) in Davos, Switzerland, concluded on Friday, 20 January 2023. World leaders and corporate executives expressed hope that the looming recession facing the global economy could be avoided if countries collaborated to boost global trade and investment.
A high-level South African government and business delegation has returned home from the meeting more upbeat than before that the current economic slowdown and rising inflation could be resolved if nations addressed global supply disruptions that are leading to commodity shortages and driving up energy and food prices.
“The South African delegation did a fantastic job in Davos where it sold our country to global investors as a favourable market to do business and invest in. Notwithstanding the energy supply constraints that our country is currently grappling with, South Africa remains an attractive investment destination given its excellent infrastructure, sophisticated financial markets, and a skilled workforce,” says Sithembile Ntombela, Acting CEO of Brand South Africa.
“The structural reforms that are currently being implemented by the government are making progress in removing investment bottlenecks and reducing the cost of doing business. These reforms will enable South Africa, a preferred destination by local investors and global multinationals looking to expand across Africa, to take advantage of the opportunities presented by the African Continental Free Trade Area (AfCFTA),” says Ntombela.
Cargo ship to boost TZ-Comoros trade (Daily News)
The government has said it will deploy a cargo ship to ply between Mtwara Port and Comoros Islands from next month to serve traders in the two countries. “The ship is ready; it only awaits the clearance of some minor issues such as operation permits for it to be officially launched come February this year,” Mtwara Regional Commissioner Colonel Ahmed Abbas said.
According to the RC, the coming of the cargo ship is part of the government’s efforts to address long-lived challenges facing businesspeople operating their businesses between Mtwara and Comoro.
Trade deficit widens on fuel, cooking oil imports surge (Business Daily)
Kenya’s trade deficit in the 11 months to last November widened by 20.4 percent amid a surge in fuel and cooking oil imports and a weakening shilling. Data from the Central Bank of Kenya (CBK) show the gap between imports and exports widened to Sh1.49 trillion from Sh1.23 trillion in the corresponding period in 2021.The county’s total import bill — both public and private sector — rose by 20 percent to Sh2.29 trillion in the country, led by goods such as fuel and lubricants, vehicles, industrial inputs and edible oils.
Guinea 2022 Article IV Consultation (IMF)
Following a coup d’état in September 2021 and a year of socio-political tension, the situation has stabilized after the authorities agreed with ECOWAS on a revised, shorter (24-month) transition calendar. While the non-mining sector remains weakened by the subsequent shocks—the pandemic, political uncertainty, the global food and fuel price shock and ensuing food insecurity—overall growth remains buoyant, driven by strong mining production. Inflation hovered around 12 percent for most of 2021 and 2022, despite significant international prices pressures. Food insecurity became increasingly acute during 2022 stemming from the price shock and could be exacerbated next year.
Algeria and Libya’s strategic ‘‘gateway’’ location and sub-Saharan Africa’s huge potential heralds great potential for transit trade, Yassin Bousrewiel, Chairman of the African Economic Forum and General Supervisor of the Forum and Exhibition for Transport and Transit Trade in Africa (AFRO-TT), told Libya Herald in an exclusive interview today.
This forum comes due to the importance of the strategic location enjoyed by the two neighbouring countries as a gateway to Africa and the great potentials and human and natural resources of sub-Saharan Africa, he expanded. Sub-Saharan Africa contains about 30 percent of the world’s mineral wealth, 12 percent of oil reserves, 43 percent of gold and 50 percent of diamonds and 67 percent of arable land. The value of African exports and imports amounts to about US$ 1,016 billion, of which 6.8% is intra-trade, Bousrewiel added reinforcing the case for increased trade.
He explained that the forum will shed light on important African trade issues, diagnose the reasons for the low level of African transit trade, and encourage the private sector to enter African markets with the aim of promoting growth and economic diversification, providing new job opportunities, and reducing inflation in government funding spending in Libya and Algeria.
The East African Business Council (EABC) and the GIZ- Support to East African Market-Driven and People-Centered Integration Programme II kicked started the National Private Sector Sensitization Workshop on African Continental Free Trade Area (AfCFTA) Agreement on Trade in Goods Protocol in Kigali, Rwanda.
In his remarks, EABC Vice Chair, Mr. Denis Karera said, the AfCFTA Agreement envisages to boost intra-African trade through the gradual elimination of over 90 percent tariffs on goods and the removal of non-tariff barriers and trade restrictions on good and services. He urged Rwanda private sector players to educate themselves on AfCFTA and take the leading role in the AfCFTA agenda.
Mr. Kajangwe said sectors such as Manufacturing and agro processing are perceived to be less competitive but under AfCFTA these sectors in Rwanda can be very competitive when compared with other western African countries due to economies of scale. “Let’s take advantage of the market of the 1.2 billion people with a combined Gross Domestic Product valued at USD3.4 trillion which will be created by AfCFTA” guest of honor Mr Antoine Kajangwe the Director of General of Trade and Industry from Ministry of Trade and Industry, Republic of Rwanda said.
The East African Community (EAC) today officially launched the verification mission to assess the Federal Republic of Somalia’s readiness to join the Community. The verification team comprising of experts from the EAC Partner States shall be in Somalia from 25th January to 3rd February, 2023, to establish the country’s level of conformity with the criteria for admitting foreign countries as provided in the Treaty for the establishment of the EAC.
The Secretary General further said that the team will assess Somalia’s development strategies and plans in key areas of collaboration including infrastructure, energy, education and science, peace and security, and international cooperation.
AU roots for effective partnerships in South-South co-operation (New Vision)
The African Union (AU) has called on global south nations to continue creating partnerships that will effectively address the issues on the African continent and equally have partnerships that will deepen the delivery of tangible outcomes.
The call was made at the three-day second high-level forum on the South-South and Triangular Co-operation (SSTC) organised by AU Commission deputy chairperson Dr Monique Nsanzabaganwa at the Speke Resort Munyonyo in Kampala via a recorded video.
The AU is currently reviewing Agenda 2063 strategic partnerships for the first decade to establish the creation of more effective partnerships that are expected to enable improved synergy and co-ordination in the financing and implementation of the development frameworks at the national, regional and continental levels.
Morocco, one of the key African states, has come to New Delhi’s rescue, after China suspended exports of a key component to manufacture fertilisers essential for Indian farmers. India has turned to Morocco to secure fertilizers after China suspended the export of ammonium phosphate, a key component in the manufacturing of fertilizer. Over the weekend during the visit of Fertiliser Minister Mansukh Mandaviya Morocco, Morocco’s phosphate giant OCP Group announced signing a deal with India to supply New Delhi with 1.7 million metric tonnes of phosphate-based fertilizer over the coming 12 months.
Under the deal, OCP Group will supply India with 700,000 tonnes of fertilizer. The fertilizer would be tailor-made to meet the needs of the plants and crops they are intended for. The Moroccan fertilizer producer is set to provide another one million tonnes of fertilizer directly to the Indian farmers, according to a statement by OCP.
Ukraine/Russia war opportunity for Africa to ramp-up production: AU (Farmers Review Africa)
The disruption of grain deliveries from Ukraine is an opportunity for countries African countries to increase their food production at home, the African Union’s Commissioner for rural economy and agriculture, Josefa Sacko, has said.
Speaking to the European media, she said Ukraine and Russia made up significant of worldwide grain and oilseed exports and countries, mainly from Africa, dependent on imported wheat and other products imports were seriously affected by the disruptions and price spikes.
Some of the affected countries were Egypt, Algeria, Tunisia, Nigeria, Kenya, and Benin.
Africa: China, Russia and the U.S.’s Top Officials Scramble for Appointments With Africa (allAfrica)
Last week the new Foreign Minister of China, Qin Gang made his first international tour as the foreign minister to Africa. The visit was significant, it was symbolic in a way; it emphasized China’s foreign policy priorities. This week two very senior officials from Russia and the US will be in Africa almost the same time. The US Secretary of the Treasury Janet Yellen kicked started her visit in Senegal on Saturday. Her visit comes to as Biden’s administration continues to advance its charm offensive in Africa. The visits also mark a new scramble by China, Russia and the US as the competition development alternative energy infrastructure in Africa begins. Africa, led by South Africa, has committed to transition to clean energy harnessing its fast natural energy resources in this regard.
US Envoy Heads to Africa to Advance Joint Priorities (VOA)
U.S. Ambassador to the United Nations Linda Thomas-Greenfield will travel to Ghana, Mozambique and Kenya this week to advance joint priorities following December’s U.S.-Africa Leaders Summit.
Her tour, from January 25 to 29, will focus on regional security issues, food insecurity, humanitarian issues, and supporting African efforts to mitigate climate change, a senior administration official told reporters on Monday.
Thomas-Greenfield’s trip is happening in tandem with Treasury Secretary Janet Yellen’s ongoing mission to Senegal, Zambia and South Africa that will continue through January 28. Yellen is seeking to deepen U.S.-Africa economic ties, including by expanding trade and investment flows.
President Joe Biden announced over $15 billion in two-way trade and investment commitments, deals and partnerships at the three-day December summit that drew delegations from 49 African nations to Washington.
Africa has deeply felt the impact of Russia’s invasion of Ukraine as fuel, food and fertilizer prices rose in its aftermath. This year, U.N. agencies have warned that the impact of the fertilizer crunch could reduce the size of harvests on the continent.
The U.N. and Turkish-brokered Black Sea Grain Initiative has seen more than 18 million metric tons of Ukrainian wheat and other food stuffs exported to international markets since it was signed in mid-July.
India, Egypt agree to elevate bilateral relations, boost trade (Anadolu Ajansı)
Indian Prime Minister Narendra Modi and visiting Egyptian President Abdel Fattah El-Sisi on Wednesday discussed bilateral relations and agreed to boost trade. Addressing a press conference after a meeting in the capital New Delhi, Modi said they have decided to take the bilateral trade between India and Egypt to $12 billion in the next 5 years.
“We’ve decided that under India-Egypt Strategic Partnership we will develop a long-term framework for greater cooperation in the fields of politics, security, economics, and science,” he said.
Bilateral trade between India and Egypt reached $7.26 billion in 2021-22. The trade was fairly balanced with $3.74 billion in Indian exports to Egypt and $3.52 billion in imports from Egypt to India. More than 50 Indian companies have invested around $3.15 billion in diverse sectors of the Egyptian economy, including chemicals, energy, textile, garment, agri-business, and retail.
A slew of urgent reforms to carbon pricing, import tariffs and regulatory issues are needed to decarbonize supply chains in time for the 2030 goals, said Ngozi Okonjo-Iweala, Director-General, World Trade Organization, when she addressed the World Economic Forum’s Annual Meeting.
“Because countries tend to impose higher tariffs on relatively clean finished goods, but lower tariffs on often more-polluting inputs and intermediates, trade policy skews in favour of dirtier products – resulting in an implicit subsidy for CO2 production of $550 billion-$800 billion per year,” she said. Eliminating this bias, she added, would reduce global carbon emissions by 3.6% while increasing global income by 0.65%.
Speed, Cooperation and Resilience Can Mend a Fragmented World (WEF)
World leaders gathered at the World Economic Forum Annual Meeting 2023 in the first major international gathering of the year to address ongoing economic, energy and food crises while laying the groundwork for a more sustainable, resilient world. While many economists forecast recessionary risks in 2023 and see geopolitical tensions continuing to shape the global economy, there are glimmers of hope that pressures on food, energy and inflation may be peaking.
“Our world is plagued by a perfect storm on a number of fronts,” said United Nations Secretary-General António Guterres, who called for urgent action on a number of interconnected challenges, including the global economic crisis, climate, income and gender inequality, US-China relations, Russia’s invasion of Ukraine and the lingering effects of the COVID-19 pandemic. “Now more than ever, it is time to forge the pathways to cooperation in our fragmented world.”
The Commonwealth Secretary-General yesterday called for an unprecedented level of international co-operation to reach timely and orderly resolutions to the interlocking crises of environmental breakdown, economic insecurity and rising inequality. Secretary-General the Rt Hon Patricia Scotland KC was delivering a keynote address at the 2023 Cumberland Lodge Residential Conference in Windsor, UK, on the theme ‘Commonwealth and Global Challenges’.
“We gather in the midst of new and decisive shifts in the world. The human damage, economic dislocation of COVID-19 and mounting debt confront us all. The rapid intensification of climate change poses an existential danger. The tremors of conflict and instability in our world, the spiralling costs of food and fuel, and economic uncertainty threaten a serious and protracted crisis.”
The Secretary-General continued that each of these crises can be met through international co-operation. However, she cautioned that the multilateral system is under immense pressure, calling for a reinvigoration of multilateralism. “People are anxious about the capacity of governments and international institutions to provide the leadership and action required,” she added.
Colombia finance minister Ocampo spells out actions to tackle global economic crisis (UNCTAD)
Colombia’s Minister of Finance and Public Credit, José Antonio Ocampo, has called for urgent policy actions to tackle the economic dimensions of the current cascade of global crises. Mr. Ocampo delivered on 23 January the 18th edition of the prestigious Raúl Prebisch Lecture, a series organized by UNCTAD and named after the organization’s first secretary-general. Watch the lecture.
He underscored the need to strengthen international tax cooperation, improving on the 2021 agreement in the Organisation for Economic Co-operation and Development’s Inclusive Framework in its two dimensions: limiting tax competition and fair taxation of multinational companies.
Related News
tralac Daily News
Pandor hopes SA will learn from Greece’s renewables-based energy system (SAnews)
International Relations and Cooperation Minister, Dr Naledi Pandor, believes that the experience Greece has acquired over time in green power resources would be of immense value to South Africa as the country diversifies its own energy.
This comes as government announced a series of interventions aimed at solving the country’s worsening power crisis and expanding electricity availability to ease the ongoing load shedding.
According to some reports, Greece relies on a range of sources for electricity, with no one source accounting for more than 50%. In August of 2022, the non-profit online publication NPR said natural gas and renewable sources, such as wind and solar, accounted for the most power.
Pandor also spoke about shipbuilding, which is at the heart of the Greece economy and ranks as the world’s largest ship-owning nation.
Trade minister takes pride in Gambian made products (The Point)
Minister Baboucarr Ousmaila Joof, while speaking to the members of the press who accompanied him on the tour, said: “I feel proud of being a Gambian and I think that is the thing we need to support. The government in whatever forms will make sure it supports the local or domestic producers and create jobs.”
Minister Joof described the visit as another great day that signals a lot to him in terms of the potential to create jobs in this country and also to address food security. “Because a lot of what we eat is connected to flour which we know the raw materials are not available in the country yet.”
Deep Sea Port, Rice Mill in Lagos to generate $200 billion (Voice of Nigeria)
President Muhammadu Buhari says the newly inaugurated Lekki Deep Sea Port and the Imota Rice Mill are projected to generate economic benefits valued at 200 billion dollars. He spoke on Monday night at a State Dinner in his honour during his two-day official visit to Lagos State to commission landmark infrastructure projects undertaken by the State Government and the private sector, MRS Holdings Limited.
According to him, the projects will create more than 300,000 direct and indirect jobs adding that these labour-intensive projects, which will contribute to job creation in the country, fit well with his Administration’s plan to lift 100 million Nigerians out of poverty in 10 years.
He expressed delight that the alignment between Lagos State and the Federal Government, since 2015, has more than delivered the dividends of democracy for the good people of the State.
Through various policies, legislation and executive orders, we have worked very hard to facilitate private enterprise in Nigeria. ‘‘The results of this can be seen in the many thriving businesses across Lagos State, in manufacturing, oil and gas, creative industries, services, digital economy and many more, creating tens of thousands of jobs and economic opportunities for Nigerians. ‘‘I have no doubt whatsoever that posterity will be kind to us on account of these landmark projects and successes,” he said.
Diaspora remittance now among top earner for Kenya – Report (Garowe Online)
New data released by the Central Bank of Kenya reveals that the country’s diaspora remittances rose by 8.34 percent to $4 billion in 2022. This now places diaspora remittance as the second top earner of foreign currency closing in on exports, which brought in $5.8 billion worth of foreign currency in the same period.
Tea still remains the top leading export for Kenya, having earned the country a whopping $1.2 billion in 2022 last year. Horticulture followed closely at $901 million, chemicals $521 million, coffee $301 million, and petroleum products $77 million.
The creation of the diaspora state department by President William Ruto’s administration is meant to boost diaspora relations for Kenyans.
Botswana: A Hidden Gem Of Africa (Forbes Africa)
Botswana has made use of its wealth to build a robust social welfare system in the country, providing free education to its citizens and availing reliable health care. The mere existence of diamonds, however, is not the secret to Botswana’s miraculous growth. Oduetse Motshidisi, CEO of Non-Bank Financial Institutions Regulatory Authority says the role of Botswana’s institutions made the definitive difference in the country’s success. “Our institutional strength and legitimacy assures that there is proper governance, rule of law and most importantly, stops corruption and other activities that are harmful. The institutional structure and the resilience of those institutions and their ability to withstand challenges and threats makes a great difference,” he says.
Apart from mining, Botswana also relies on tourism and agriculture.
“Early this year, we imposed a two-year import ban on horticultural products. Now tomatoes, ginger, garlic, potatoes are locally produced and it is encouraging how people have responded to the ban,” states Fidelis Molao, Minister of Minister of Agriculture, Development and Food Security. “The agricultural sector currently contributes 2% to the GDP. The sector is undergoing transformation and there are a lot of opportunities. We are targeting communities who seem to be low on the economic ladder because agriculture is a major employer for these groups of people,” mentions Professor Julius R. Atlhopheng, CEO of National Agricultural Research and Development Institute.
Port of Maputo achieves new handling record, sees soaring chrome throughput (Engineering News)
The Port of Maputo achieved a new handling record in 2022, registering growth of 20% over 2021. The total volume handled last year was 26.7-million tons, compared with 22.2-million tons in 2021. This growth reflects the efficient use of rehabilitated berths 6, 7, 8 and 9, inaugurated in May last year, and the implementation of 24-hour operations at the Lebombo/Ressano Garcia border in April.
“The port has definitely been reaping the fruits of the major infrastructure developments performed in the last four years,” says Maputo Port Development Company (MPDC) CEO Osório Lucas.
“The decision of the government of Mozambique to establish a 24-hour border operation has also positively impacted the whole Maputo Corridor. “Paired with the investments made by the port in systems, including system integration with entities such as Customs and Km4, which contributed to the improvement in efficiencies, we have registered this growth in port volumes.”
Africa requires new strategy to optimise investment – Yofi Grant (Ghana News Agency)
Heads of African Investment Promotion Agencies, businessmen and women as well as academia will meet in Accra on Wednesday, January 25, to strategise on how African nations can add value to natural resources through Foreign Direct Investment (FDI) to boost their economies and create jobs. The discussions will be held during the First Assembly of African Investment Promotion Agencies (AAIPA) meeting at the Kempinski Gold Coast City Hotel, Accra. This will take place alongside the Africa Prosperity Dialogue series, to discuss ways to enhance economic growth and transformation of the continent.
The GIPC Boss noted that even though Africa had many natural resource endowments, including lithium, bauxite, and gold, and with 70 per cent of the world’s arable lands, it was still a small player in terms of global FDI attraction with only 5.2 per cent.
“We need to take advantage of the AfCFTA for wealth creation on the continent. If you look at the 480 major companies in Africa generating a billion dollar per year, most of them are multinationals and so we need indigenous ones to grow and create jobs for the teeming youth in Africa,” Mr Grant said.
He lamented the low percentage of intra-African trade, hovering around 18 per cent, and urged African leaders to leverage on the huge population of the continent; 1.4 billion, for wealth creation.
Countries Validate Green Pass Implementation Modalities for Fish Trade (COMESA)
Zambia, Zimbabwe and the Democratic Republic of Congo (DRC) have validated the implementation modalities of the Green Pass – an initiative meant to attest conformity to specific Sanitary and Phytosanitary (SPS) requirements as the region promotes small scale cross border fish trade.
COMESA Secretariat is implementing the Green Pass Project under the EU funded Small-Scale Cross Border Trade Initiative (SSCBTI), with a pilot on fish originating from Luangwa District in Zambia and traded across several borders, including the DRC through the Kasumbalesa border post.
To date, the Secretariat has implemented different activities of the project which includes establishment, procurement and commissioning of a mini-lab facility at Luangwa Border post. The lab contains rapid test kits, weighing scales, a container office and IT equipment.
They have also conducted capacity building of SPS and Technical Barriers to Trade (TBT) Regulatory Authorities for the DRC, Zambia, Zimbabwe and fish traders on risk-based food safety and self-regulation.
During the workshop, SSCBTI Project Team Leader Mr Tasara Muzorori made a presentation on the Simplified Trade Regime Programme under which the Green Pass Initiative is being implemented. He gave a highlight of the main objectives of the STR which includes enabling small scale traders to benefit from preferential tariffs of the free trade regime of COMESA, simplifying trade and customs processes and helping in bringing the informal trade into formal trade among others.
“The STR is a good programme and we commend Member States for embracing the Green Pass initiative which aims at facilitating and fast-tracking small-scale cross border trade across with minimum disruptions. Through this initiative, there is a reduction to overall trading costs for small scale traders, through simplification and consolidation of SPS/TBT measures and border verification procedures,” Mr Muzorori added.
Tripartite Free Trade Area – Taking Stock of Progress (COMESA)
Trade experts from seventeen countries under the COMESA-EAC-SADC Tripartite Agreement met in Nairobi, Kenya on 23rd and 24th January 2023 for the Tripartite Trade Negotiation Forum (TTNF) were they reviewed progress made on various thematic areas needed to make the TFTA operational and unlock enhanced trade and investment opportunities. This is intended to benefit the 29 COMESA-EAC-SADC Tripartite Member States.
The 21st Meeting of the TTNF discussed matters from the previous conference which included the exchange of tariff offers, signature and ratification of the TFTA Agreement, the Tripartite Resource Mobilisation Strategy, establishment of the Simplified Trade Regime and the study on trade in services.
High on the agenda was the need for Member/Partner States to re-commit themselves to the full operationalization of all the three pillars of the Tripartite namely; Market Integration, Infrastructure Development and Industrial Development.
Speaking during the opening of the meeting, Principal Secretary in Kenya’s State Department for Trade Mr Alfred K’Ombudo commended the eleven countries that have ratified the TFTA and urged the others to do the same.
“This year, let us ensure that we achieve the necessary signature, ratifications, and exchange of tariff offers. Let us consolidate our efforts toward the implementation of trade facilitation instruments and create room for businesses to trade and the private sector to invest,” said Dr Christopher Onyango, Director of Trade and Customs at COMESA Secretariat. He used the opportunity to commend the African Development Bank (AfDB) for its financial support to the Tripartite programme.
Ghana tops West African countries in 2022 Digital Competitiveness Index (Citinewroom)
Ghana is leading Anglophone West Africa scoring 66.0% in the 2022 digital competitiveness index, according to Digital Foundation Africa’s survey According to the survey, Ghana topped other African states including Cote D’Iovire, Nigeria, Burkina Faso, Niger amongst others, by implementing good policies to enhance its digital sectors. The second country in line is Carbo Verde with 65.5%, followed by Nigeria which ranked third with 65.0%. Niger, Burkina Faso and Mauritania were ranked the worst digital competitive West African states.
A statement issued by Digital Foundation Africa said, “The Index measures, access and rank which of the West Africans states is implementing, adopting while using good policies among other uses of digital services while mapping the growth of its digital development sectors for socio-economic transformations”.
Africa airlines must partner up and meet Abuja safety targets (The East African)
Airlines are constantly developing innovative ways to drive partnership benefits and African airlines should be no exception. The partnership options available are diverse and sometimes complex, involving increasingly integrated structures that require careful consideration and upfront due diligence. The extent to which African airlines have progressed along the partnership continuum varies.
The economic growth, tourism and intra-African trade potentials are good new traffic opportunities in the intra-African air transport market. Trade and tourism support air transport, and efficient services generate additional tourism development. In other liberalised markets, intra-regional trade led to increased traffic.
Trade and air transport have a symbiotic relationship and are closely linked. Air transport and trade sectors are modest within Africa. Policymakers have adopted the SAATM and AfCFTA as flagship programmes; stakeholders need to work smart to boost these sectors.
Air transport is among the priority services sectors selected as the subjects of the first round of liberalisation under the AfCFTA trade-in services negotiations. A well-functioning air transport service sector also delivers positive effects on intra-African passenger travel that is likely to spark growth in education, healthcare, and tourism services.
Minister pledges UK support at Africa summit to fight food insecurity (GOV.UK)
The UK Minister for Development and Africa will emphasise the importance of the UK working with African countries to grow economies and boost food security, on a 2-day visit to Senegal, starting today (Tuesday 24 January). Arriving in Dakar, Andrew Mitchell will hail the important relationship between the UK and Senegal, a country, with huge economic potential.
Representing the UK at the Dakar 2 Feed Africa Summit, an African-led initiative, the Minister will listen to African leaders talk about the causes of rising food insecurity and hear their vision for accelerating agricultural transformation, with the aim of maximising the UK’s impact in alleviating food shortages across the continent. The UK is working with regional organisations like AGRA, Regional Economic Communities and the Africa Continental Free Trade Area (AfCFTA) to help strengthen food trade in Africa.
Economic development is crucial to tackling challenges like food insecurity and climate change and on his visit Mr Mitchell will explore opportunities to expand UK investment into the country to make a real and lasting positive impact. The UK-Africa Investment Summit in 2020 announced 27 deals worth over £6.5 billion from across Africa. It also announced £9 billion worth of investment decisions.
During his visit, he will see the impact of such investment to date, including a $1.7 billion partnership between British International Investment and DP World which features a new container port at Ndayane, Senegal’s largest onshore investment. The port will enable the creation of over 20,000 new jobs and help unblock barriers to greater economic growth.
Germany’s Africa aid strategy highlights need for green jobs (DW)
German Development Minister Svenja Schulze on Tuesday outlined Germany’s overarching development policy vision for the African continent. Berlin aims to work with national governments and organizations to address challenges that could lead to mass migration, new conflicts and pandemics, and higher global carbon emissions.
The development minister said that, with the continent’s young, rapidly growing population, the core of Germany’s new strategy should be job creation. Schulze praised Africa as an emerging continent, rich in wind, sun, and mineral resources, with a population that would rise to 2.5 billion by 2050 with just under half of Africans being under 20 years old. As such, she said, some 25 million jobs need to be created each year.
Meat import ban in Africa hurts local population (Newswise)
The EU regularly exports large quantities of poultry meat to West African countries. These exports have been criticized for harming importing countries in West Africa and exacerbating poverty there. The reason: Cheap imports depress the local price of chicken, making life difficult for local smallholders.
Researchers at the Universities of Bonn and Göttingen have now used the example of Ghana to calculate the effects that would result if the country were to significantly increase its import tariffs for poultry meat or even stop imports completely.
The EU mainly exports chicken parts in large quantities to various West African countries, including Ghana. “The topic is much discussed when it comes to poverty, international trade and Europe’s role for the agricultural sector in Africa,” says Prof. Dr. Matin Qaim of the Center for Development Research (ZEF) at the University of Bonn.
The researchers calculated what the effects would be if Ghana were to significantly increase its import tariffs for poultry meat or even stop imports completely. The result: Domestic prices would, in fact, rise. If imports were stopped, local producers would get over a third more for selling their chicken – though most households in Ghana would not benefit.
Coinciding with the final days of the 2023 World Economic Forum, which was aptly themed “Cooperation in a Fragmented World”, the Africa Collective event aimed to identify concrete means of cooperation between attendees. The Collective convened a cross-section of over 80 key decision-makers from international and African corporations and pan-African governmental agencies to discuss how regional integration efforts, including the AfCFTA, are propelling opportunities in Africa..
H.E. Wamkele Mene said: ‘The African Continental Free Trade Area enables deeper value chain generation in Africa and makes the continent a larger, more relevant counterparty for international trade.’
Iain Williamson, CEO of Old Mutual Group said: ‘Let’s all be aware of the big prize that an integrated regional market represents. Even if the path may be difficult, there are quick wins and milestones to take right away.
The African Development Bank Group’s Acting Chief Economist and Vice President for Economic Governance and Knowledge Management, Professor Kevin Chika Urama, shares his thoughts on the inaugural Africa’s Macroeconomic Performance and Outlook report, released on Thursday 19 January.
The new biannual publication aims to provide African policymakers, global investors, researchers, and other development partners with an incisive, timely, evidence-based evaluation of the continent’s recent macroeconomic performance and short-to-medium-term outlook amid dynamic global economic developments.
Like other world regions, Africa continues to face overlapping shocks such as the COVID-19 pandemic, climate change-related impacts, rising geopolitical tensions, supply chain disruptions and the tightening global financial conditions impacting key macroeconomic indicators.
Africa’s Macroeconomic Performance and Outlook Report responds to a critical need for timely information to help decision-making in a context of heightened global and regional uncertainties.
Global macroeconomic conditions have recently become uncertain, with persistent multiple shocks that make policymaking and investment decisions challenging. With these global shocks and their interaction with prevailing pockets of domestic and regional risks, the need for regular diagnosis and targeted policy actions to address their impacts on African economies is critical.
All member countries of the G20 group of economic powers seem to be buying into the idea of restructuring Ghana’s debt, alongside the Paris Club, a group of officials from major creditor countries, which is taking the forefront in setting up a creditor committee for the aforementioned objective. This step forward follows Ghana’s request for a debt restructure under a G20 Common Framework, a framework founded to aid low-income countries. Ghana’s petition for the debt restructure under the G20 Common Framework came last week, effectively making it the fourth country after Chad, Ethiopia and Zambia to do so.
This framework was created in 2020, following the global pandemic, and allows a streamlined process of coordinating creditor governments to restructure the debts of low-income countries.
It was recently reported that the country’s producer price index dropped by a whopping 25.9% in December, following the country’s currency revaluation against the dollar in the same month. Also in the same month, Ghana had introduced a debt swap program which was lauded as intuitive, and shortly after secured a staff-level agreement with the International Monetary Fund for a $3bn relief fund.
‘Let’s all become the champions the ocean needs’ – UN chief Guterres (UN News)
Let’s all become the champions the ocean needs. Let’s end the ocean emergency and preserve this precious blue gift for our children and grandchildren,” urged the UN chief. The Secretary-General was speaking from the Ocean Science Centre Mindelo, in São Vicente
For the UN Secretary-General, the Summit was also an opportunity to sound the alarm: “The ocean is life. The ocean is livelihoods. And the ocean is in trouble.” The UN chief explained that some 35 per cent of global fish stocks are over-exploited, global heating is pushing ocean temperatures to new heights, fueling more frequent and intense storms, rising sea levels, and the salinization of coastal lands and aquifers. “Meanwhile, toxic chemicals and millions of tons of plastic waste are flooding into coastal ecosystems – killing or injuring fish, sea turtles, seabirds and marine mammals, making their way into the food chain and ultimately being consumed by us,” Mr. Guterres stated. According to UN estimates, by 2050, there could be more plastic in the sea than fish.
DDG Paugam: Trade is crucial to ensure sustainable food supplies in times of crisis (WTO)
DDG Paugam outlined the WTO’s pivotal role in opening up trade and strengthening the global trade environment. The WTO rulebook promotes market transparency, which is a “must-have to alleviate pressure on prices,” he said. The WTO is committed to keeping markets open and limiting trade restrictions to the extent possible, he added.
“If restrictions need to be implemented, dialogue with the affected countries, especially the most vulnerable ones, is essential to find solutions. The WTO Committee on Agriculture provides an effective forum for these discussions,” he said.
Rising trade tensions between the U.S. and the European Union, two of the most important global leaders when it comes to climate policy, could undermine key climate initiatives of both governments and make it harder for the world to put the brakes on climate change. The two have clashed over the 2022 Inflation Reduction Act’s requirements that products be made in America to receive certain U.S. subsidies. The EU recently announced plans for its own domestic-only clean technology subsidies in response.
The U.S. and EU also now have competing carbon tariff proposals, and these could end up undermining each other.
Metals, mining industry execs pessimistic about global growth, CRU study finds (Engineering News)
More than half (52%) of global commodities business intelligence company CRU’s clients in the metals and mining industries expect global gross domestic product (GDP) to grow by no more than 1% this year, according to its yearly macroeconomic survey of clients, which polled global clients from the metals and mining industries in December. The outlook is bleaker than CRU’s forecast for global GDP growth in 2023, which sits at 1.6%.
The main risks identified are closely related to each other, with energy prices driving inflation and the Russia-Ukraine war contributing to higher energy prices.
Notably, the impact of climate change this year and a further deterioration in US-China relations has slipped down the list of threats in the view of those in the metals and mining industry, with only 11% and 4% citing these issues as downside risks.
Related News
tralac Daily News
The construction industry plays a critical role in creating an enabling business environment. It is also a vital sector for the country’s economy, responsible for creating jobs, stimulating investment and improving infrastructure. This was said by the Investment Lead in the Private Office of the President, Dr Anthony Costa
According to Costa, the construction sector is a significant contributor to the Gross Domestic Product and plays an important role in the country’s development. “In addition to its economic contribution, the construction industry also plays a critical role in creating an enabling business environment. A well-functioning construction sector is essential for attracting investment, supporting small and medium-sized enterprises, and promoting innovation. By making it easier for businesses to navigate the construction permit process, we are helping to create a more conducive environment for entrepreneurship and economic growth,” said Costa.
China-South Africa trade hits record high (CAJ News Africa)
THE trade volume between China and South Africa reached US$56,7 billion in 2022. This represents an increase of 5 percent from the previous year and a record high. Chinese Ambassador to South Africa, Chen Xiaodong disclosed the figures the Chinese Embassy in South Africa held the “2023 Happy Chinese New Year and Overseas Chinese New Year Reception.” He noted China had been South Africa’s largest trading partner for 14 consecutive years.
Chen said China will continue to maintain its status as the world’s second largest economy in 2023, and its economy will develop steadily. He projected that the annual gross domestic product (GDP) will be about US$18 trillion.
“The mutually beneficial and win-win friendly cooperative relationship between South Africa and China has brought benefits not only to the people of the two countries, but also to the people of the world,” Former South African president, Kgalema Motlanthe, said.
Economy to rebound next year – Ken Ofori-Atta (Graphic)
The Minister of Finance, Ken Ofori-Atta, says the economy will rebound in 2024. He projected a steady growth of 4.8 per cent in the medium-term, between 2024-2026. Ofori-Atta said growth was projected at 3.9 per cent, 4.9 per cent, and 5.6 per cent, in 2024, 2025, and 2026, respectively. Ghana’s economy has been facing severe challenges in the last few years, with debt rising to GH¢467 billion, and the local currency depreciating by over 50 per cent in 2022. This prompted the country to seek help from the International Monetary Fund (IMF) who late last year gave a staff approval for a US$ 3 billion programme for the government. The programme is however dependent on the country’s ability to restructure its debts which has reached unsustainable levels.
Members commend Comoros’ efforts to clear final hurdles on path to WTO accession by MC13 (WTO)
Under the chairmanship of Ambassador Omar Zniber of Morocco, the Working Party welcomed a high-level delegation from Comoros led by Mr Ahmed Ali Bazi, Minister of Economy, Industry, Investment, and WTO chief negotiator.
Ambassador Zniber said: “My wish for the new year, which I hope is shared by all of you, is to help our Comorian friends conclude their accession. I am sure that this objective is within reach. It goes without saying that in the end the bulk of the effort will have to be made in Moroni where important legislative and technical work will have to be carried out in the coming months.”
“At the same time, we all recognize that the Secretariat, WTO members and the broader international community of bilateral and multilateral development partners must also intensify their support for Comoros’ efforts, including to prepare it to meet the challenges of the immediate post-accession period,” he added.
African blocs discuss challenges to realising single currency territories (The East African)
Africa’s main regional economic blocs say monetary unions will raise the value of trade and shield them from fluctuating exchange rates and are pushing to establish single currency territories. Gathering in Nairobi under the African Union, representatives from various member states of regional economic blocs (RECs) said exchange rates should be considered a barrier to trade and addressed with urgency. Some of the RECs such as the East African Community have identified a monetary union and a single currency as one way of boosting integration and eliminating the exchange shortfalls that routinely befall traders across the borders.
“We have debunked the myths about Africa being a continent of darkness, centre of disease, and it is now time to debunk the myth that there is no hurry in Africa,” CS Kuria said. “Other regions and continents have caught up and are interested in Africa, but Africa is still dragging its feet. The only way to do this is to establish linkages and bridges within Africa.”
US checkmates China in Africa by bolstering trade ties (Devdiscourse)
In order to counter China in Africa, which has made inroads with investments and trade, the US sought to expand its influence by bolstering trade ties in the continent, writes Arianna Skibell in Politico. Biden administration is planning investments in the supply chain for electric car batteries in Africa. The US want to wrest control of the supply chain for electric car batteries from China in Africa, where reports of child abuse and forced labour are rampant, writes Politico’s E&E News reporter David Iaconangelo. Notably, China is playing out in African mines. Zambia and Congo are major sources of cobalt and copper, key ingredients for lithium-ion batteries.
Once extracted, the bulk of those minerals are exported to China, where 75 per cent of the world’s lithium-ion batteries are made, writes Skibell. The US wants to disrupt that flow by helping Congo and Zambia not only extract minerals but also process, manufacture and assemble them into batteries.
Local startups seek funding to tap into AfCFTA (The New Times)
There is a need for funding and enhanced access to finance for young entrepreneurs with startups so as to increase both production and quality as a way of tapping into the African Continental Free Trade Area agreement (AfCFTA). Local young entrepreneurs made the request recently during the closing of a private sector conference organized by the East African Business Council (EABC) aimed at furthering the engagement and bringing on board the primary implementers of the continental agreement. “There is still the issue of getting funds to be able to increase both quality and production to be able to tap into the African Continental Free Trade Area agreement. The private sector needs to first grow and increase exports.
The Southern African Development Community (SADC) Secretariat fully complies with appropriate systems, controls, rules and procedures for ensuring protection of personal data in line with the globally recognised General Data Protection Regulation (GDPR) of the European Union (EU).
This was validated by the recent audit report for the period of November 2021 - October 2022 produced by Deloitte Reviseurs d’Enterprises which found the SADC Secretariat to be fully compliant. The EU conducts Pillar Assessments in order to evaluate whether to fund or conclude specific agreements with organisations such as SADC. This particular audit sought to assess if the SADC Secretariat complied with Pillar 9 which is a criterion set by the European Union to protect personal data privacy and security.
The SADC Secretariat amongst other risk mitigation actions, developed a Policy on the Protection of Personal Data, which was approved by the Council of Ministers in March 2022. This Policy provides guidance on how the Secretariat, its staff members, consultants, and stakeholders obtain, process, restrict, dispose or store personal data.
20 African heads of state, private investors meet in Dakar for food security (The Guardian Nigeria)
About 20 African heads of state and private sector leaders are among around 1,500 delegates meeting in Dakar, Senegal, this week, for a high-level discussion on roadmaps for achieving food sovereignty in the continent. The three-day meeting, under the auspices of the second edition of the Feed Africa Summit (Dakar 2), lays out action-driven discourse on how heads of state would mobilise government resources and leverage development partners and private sector financing to harness Africa’s food and agriculture potential and turn advocacy efforts into concrete actions.
With the theme, ‘Feeding Africa: Food Security and Resilience’, the summit is organised by the African Development Bank (AfDB) Group. It will be held from Wednesday to Friday at the Abdou Diouf International Conference Centre (CICAD) in Diamnadio.
World Economic Forum 2023: Key takeaways for Nigeria as new regime sets in the horizon (Vanguard)
As Nigeria prepares to see the back of the current political regime, the just ended 2023 World Economic Forum, WEF’23, held in Davos, Switzerland, appears to be setting agenda for a new leadership in the country expected to be in place in four months time. But the key takeaways from the WEF’23 also seems to show a world moving on a pathway to a better future while Nigeria looks like an onlooker going by the conclusions at the meeting against both present and possible future of the country especially in socioeconomic parameters.
Farmers from Kenya, Uganda & Mozambique to Get Fertilizers (East African Business Week)
The African Fertilizer Financing Mechanism (AFFM) has received a $10.15 million financing support from the Norwegian Agency for Development Cooperation (NORAD).The financing will target Agricultural projects for Small Scale Farmers in Uganda, Kenya and Mozambique.
NORAD’s contribution will enable the Africa Fertilizer Financing Mechanism to provide credit guarantees for up to 36 months in Uganda, Kenya and Mozambique, with the expected leverage of at least ten times the credit guarantee amount, enabling access to at least 85,000 metrics tons of fertilizer for 850,000 smallholder farmers in the three countries.
The Africa Fertilizer Financing Mechanism received a first instalment of $8.73 million through the African Emergency Food Production Facility window, on 27 December 2022.The role of the Africa Fertilizer Financing Mechanism is to strategize on innovative financial solutions to foster access
9th ARFSD to review implementation of 2030 Agenda and Agenda 2063 (UNECA)
The Ninth Session of the Africa Regional Forum on Sustainable Development (ARFSD-9) will be convened in Niamey, Niger, from 28 February to 2 March 2023. The Forum is organized jointly by the Economic Commission for Africa (ECA) and the Government of Niger, in collaboration with the African Union Commission, the African Development Bank and other entities in the United Nations system. The theme of the ninth session of the Regional Forum is “Accelerating the inclusive and green recovery from multiple crises and the integrated and full implementation of the 2030 Agenda for Sustainable Development and Agenda 2063.”
The Forum will review progress made in the implementation of five selected Sustainable Development Goals on clean water and sanitation; affordable and clean energy; industry, innovation, and infrastructure; sustainable cities and communities; and partnerships for the Goals. This review is also situated within efforts to deliver climate action, and build resilience in a challenging era of ‘polycrises’.
WTO must bolster cooperation in a fragmented world: DG Okonjo-Iweala in Davos (WTO)
Topics for further work include the follow-up negotiations provided for in the Fisheries Subsidies Agreement; a decision on extending the TRIPS waiver compromise beyond COVID-19 vaccines to cover therapeutics and diagnostics; food security and agriculture reform; WTO and dispute settlement reform; development, in particular topics of interest for least developed countries; and e-commerce and a forward-looking agenda covering digital trade and climate change. DG Okonjo-Iweala suggested focusing on a few target areas for results at MC13.
Countries to meet in Abu Dhabi for UNCTAD’s World Investment Forum (UNCTAD)
UNCTAD will hold its 8th World Investment Forum in Abu Dhabi, the capital of the United Arab Emirates (UAE), from 16 to 20 October 2023.
Taking place under the theme “Investing in sustainable development”, the forum will bring together government leaders, global CEOs and other investment stakeholders. They will tackle the key challenges brought about by multiple global crises, including the need to invest in food security, energy, health, supply-chain resilience, infrastructure and productive capacity growth in the least developed countries.
“At a time when much of the world is struggling with contracting markets and a post-Covid recovery that has yet to fully take hold, UNCTAD’s 8th World Investment Forum is an important opportunity to take a long-term perspective,” Dr. Al Zeyoudi said. He said the challenges the world faces, whether systemic issues such as climate change, inequality and food security or mitigating the pandemic’s impact on trade, investment and supply chain resilience, require unity of purpose and action on an unprecedented scale.
“Against the backdrop of a highly volatile global economic landscape, the international community shares a collective responsibility to address the challenges facing the multilateral trading and development system,” Mohamed Ali Al Shorafa, chairman of the Abu Dhabi Department of Economic Development, underscored.
More investment needed to get global goals back on track, says UNCTAD chief (UNCTAD)
Mitigation strategies such as adopting renewable energy account for more than 90% of international climate investments, according to UNCTAD estimates. The UN Sustainable Development Goals (SDGs) can get back on track with more funding and targeted large-scale green investment in developing countries, also known as the global South. “True investments at scale are the only way to really get back in the race,” said UNCTAD Secretary-General Rebeca Grysnpan.
Ms. Grynspan spoke at an event entitled “Promoting investment for Sustainable Development Goals: Repurposing capital”, held on 17 January on the margins of the World Economic Forum’s 2023 annual meeting in Davos, Switzerland. Secretary-General Grynspan urged the global investment community to help rescue the SDGs by reversing current investment trends.
“A pandemic. A cost-of-living crisis. A war in Ukraine. A new geopolitical trade order. Basically, everything that could have gone wrong has gone wrong,” Ms. Grynspan noted. According to a recent report by UNCTAD, the multitude of crises on the global stage inevitably affected global foreign direct investment (FDI) in 2022.
To better implement the SDGs, more money needs to flow more from developed to developing countries, Secretary-General Grynspan emphasized. Developing countries face a $4 trillion annual SDG investment gap, according to UNCTAD estimates. But with rising interest rates in advanced economies, money left developing countries at record speed in 2022. That loss could mount to a staggering over $500 billion in foregone income, cutting foreign reserves and global investment outflows – even by the most conservative estimates.
Switzerland is first WTO member to formally accept new Agreement on Fisheries Subsidies (WTO)
DG Okonjo-Iweala said: “I am very grateful to Switzerland for its leadership in being the first WTO member to submit its instrument of acceptance of the historic new Agreement on Fisheries Subsidies. Switzerland’s action will create real momentum for more WTO members to formally accept the Agreement. Given that the landmark agreement was adopted during the 12th Ministerial Conference in 2022 held in Geneva, the location of the WTO, Switzerland is a fitting pioneer in the acceptance process, allowing the WTO to finally deliver our contribution to safeguarding global fish stocks and the livelihood and food security of millions of people worldwide.”
Related News
tralac Daily News
SA mining output tanks 9% in year to November as power and other woes bite (Daily Maverick)
On an annual basis, the 9% fall in South African mining output in November points to an overall contraction in output for 2022. The Minerals Council SA, the main industry group representing mining companies, said last week that it estimated South African mining production declined 6% last year. November marked the 10th consecutive monthly annual output decline in the sector, and it was the first month since June in which mineral sales fell on a yearly basis. Annual mineral sales had been rising, even as output fell, because of prices and time lags between output and sales.
Wine export volumes hold up despite port challenges, cost pressures (Engineering News)
The main reason for the decline in export volumes year-on-year is shipping constraints at the Port of Cape Town, particularly during what had been an extended period of adverse weather conditions, which prevented ships from docking during most of April. The two-week strike at Transnet’s operations in October last year also hampered wine export volumes.
The South African wine industry exported 368-million litres of wine, valued at R9.9-billion, in 2022. Exports were 5%, or 20-million litres, lower than in 2021. The value of exports in 2022 was also lower compared with R10.2-billion worth of wine exports in 2021. However, Wines of South Africa (WoSA) deems it positive that export value only decreased by 2.4%, while the rand per litre on the whole showed marginal growth as producers navigated rising costs, shipping challenges and shortages in the supply of packaging goods.
Tanzania registers record $63 million diamond exports (The East African)
Tanzania diamond exports increased significantly to $63.1 million (Sh147.46 billion) by November 2022, the Bank of Tanzania has revealed.This is more than seven times of the $8.4 million (Sh19.63 billion) export value that was recorded in the year to November 2021. The good performance has been attributed to the country’s diamond producer Williamson Mines which is currently under suspension.
Rwanda’s economy to grow at 7.8 percent in 2023 – AfDB (The New Times)
The Ministry of Finance implied that the economy grew by 6.8 percent in 2022. In a report on Africa’s Macroeconomic Performance and Outlook released on January 19, the continental development bank says Rwanda will lead economic growth in the region mainly due to higher infrastructure spending.
2023 Economic Outlook For Nigeria (Business Post Nigeria)
In conjunction with the IMF/World Bank annual meetings, forecasts released at the July World Economic Outlook in 2022 projected Nigeria’s inflation to fall to 17% and an increase in its Gross Domestic Product GDP by 3.4% in 2022 and 3.2% in 2023. Reprojected in October’s World Economic Outlook, Nigeria’s GDP is projected to drop to 3.2% in 2023, with a difference of 0.2% in the July 2022 projection. The IMF estimates that by 2023, Nigeria’s inflation will have decreased to 17% from a projected 19%.
According to the African Development Bank Group (AFDB), growth will slow, averaging 3.2% from 2022 to 2023, because of the continued low oil production and rising insecurity. The conflict between Russia and Ukraine, rising food, gas, and diesel costs, and continuous supply disruptions are all anticipated to play a part in keeping inflation high in 2022 at 16.9% and above pre-pandemic levels in 2023.
While oil exports are anticipated to slightly increase and capital inflows to rebound, an expected positive oil price shock on exports may be substantially outweighed by a poor output effect caused by lower oil production, which is fueled by inadequate infrastructure and increased insecurity.
Increasing the share of manufactured goods in total exports would be beneficial to least developed countries (LDCs), but achieving industrial growth remains elusive. This goal can be jeopardized by the increasing use of trade policy measures to achieve climate or environmental goals. While these goals are legitimate, uncoordinated measures by systemically important traders can have adverse consequences for LDCs.
To attenuate them, these traders should adopt special measures to help LDCs adapt to the evolving international regulatory scene. LDCs should invest more on upgrading their productive capacities and intensify trade with regional markets.
The Utilization of Trade Preferences by COMESA Member States (UNCTAD)
Governments are increasingly negotiating Free Trade Agreements (FTAs) and mega-regionals to create and expand market access for their economies. The African Continental Free Trade Area (AfCFTA) is the latest attempt in the region. Only recently, Governments have realized the importance of using utilization rates to monitor the effective use of FTAs by their firms. The utilization of trade preferences is an instrument to measure how firms effectively use an FTA. As such, it is an essential tool that assists policymakers and administrations in establishing the effectiveness of trade agreements; and firms to realize the extent of the missed trade opportunities.
This study stems from a long-standing relationship between the Common Market for Eastern and Southern Africa (COMESA) and the UNCTAD Secretariat in trade and trade facilitation.
It aims at shedding light on one important aspect of regional integration, namely, the effective use of the trade preferences provided by free trade agreements (FTAs) such as the COMESA FTA and other preferential trade arrangements (PTAs) granted by QUAD Developed countries1 such as AGOA, EBA, and GSP preferences.
Morocco targeting 50% renewable use by 2030, PM tells Davos (The Rahnuma-E-Deccan Daily)
Morocco has “become a leader” in sustainable development and is targeting 50 percent reliance on renewable energy by 2030, the country’s prime minister has told a Davos forum. Moroccan Prime Minister Aziz Akhannouch said during a special address on Wednesday: “Renewable energies now account for 38 percent of our energy mix, and our ambition is to reach 50 or 52 percent by 2030.”
Morocco’s strategic position “gives it a place of choice in the value chains of the world,” he said, adding that the country “has one of the most abundant and cheapest resources in the world, which will help in the development of green hydrogen (and) will also play into the de-carbonization of the world.” WEF President Klaus Schwab described Morocco as “a brick in the connection between nations of the world” through its location in Africa, the continent with the fastest growth worldwide.
UK Export Finance has agreed a post-Brexit deal with one of Egypt’s biggest construction and engineering firms, Hassan Allam Holding, to increase cooperation across Africa.
The agreement aims to secure investment into the UK, to promote cooperation on financing projects and encourage trade between the UK and Africa. UKEF has up to £2bn available to support projects in Egypt, as Britain looks to spread its wings after leaving the European Union and trade globally.
Tim Reid, chief executive of UKEF said it “has supported projects in Egypt and across Africa that have transformed local infrastructure and supported livelihoods. We want to build upon these achievements, and this partnership will help us to identify future opportunities in the region where UK exporters can bring substantial benefits.”
AfCFTA is key in cushioning African LDCs from external shocks, says ECA’s Karingi (UNECA)
The Economic Commission for Africa (ECA) is supporting regional trade integration through the African Trade Exchange Platform (ATEX), a platform enabling bulk procurement of commodities. Speaking at a session on integrating regional trade during the regional consultation on LDC5 for Least Developed Countries (LDCs) in Africa and Haiti, ECA Director for Regional Integration and Trade Division, Mr. Stephen Karingi, highlighted the importance of trade within the LDCs of which 33 are in Africa.
“Mirroring Africa more broadly, the LDC’s largely import manufactured products and export goods low along critical value chains like fuel products, ores and metals, and food items,” Mr. Karingi said, expressing concern that current trade patterns have exposed African LDCs to commodity price volatilities and global shocks.
The ATEX trade platform has been established on the back of the establishment of the AfCFTA, which, if fully implemented, is set to accelerate industrialization in Africa and increase the value of intra-African trade by 400 percent and the share of intra-African trade to 26 percent by 2045. This is compared to the share of intra-African trade which was at 15 percent in 2020.
SADC continues to encourage Member States to ratify the Protocol on Industry (SADC)
The Southern African Development Community (SADC) aims to achieve regional integration and eradicate poverty within the Southern African region and to attain these goals, Member States must work together for effective results on common problems and issues. Industrial development is at the centre of SADC’s regional integration agenda alongside competitiveness and market integration. The Regional Indicative Strategic Development Plan (RISDP2020-2030)’s endeavour has to strengthen this position by ensuring that industrialisation-related initiatives are front-loaded. The SADC Industrialisation Strategy and Roadmap (SISR 2015-2063) also aims to promote SADC’s economy and deepen regional integration through structural transformation.
As of December 2022, only five Member States had ratified, namely Angola, Botswana, Namibia, Seychelles, and Mauritius. The success of the Industry Protocol depends on the involvement of all SADC Member States to take advantage of the economies of scale that accompany a high number of Member States involved in executing activities associated with the Protocol.
Non-ratification of AU treaties slows down Africa flagship projects' implementation (The East African)
After many years of adoption, several treaties negotiated and agreed upon at African Union (AU) level remain on paper amid lack of required threshold of ratifications by the member States to pave the way for their domestication and subsequent implementation.Lack of political will has also been singled out as the reason treaties and decisions adopted at continental level cannot enter into force or are not binding in many countries, definitely denying millions of people across the continent a chance to claim rights enshrined in these policy frameworks.
Africa is set to outperform the rest of the world in economic growth over the next two years, with real gross domestic product (GDP) averaging around 4% in 2023 and 2024. This is higher than projected global averages of 2.7% and 3.2%, the African Development Bank Group said in Africa’s Macroeconomic Performance and Outlook report for the region, released in Abidjan on Thursday.
With a comprehensive regional growth analysis, the report shows that all the continent’s five regions remain resilient with a steady outlook for the medium-term, despite facing significant headwinds due to global socio-economic shocks. It also identified potential risks and called for robust monetary and fiscal measures, backed by structural policies, to address them.
In remarks during the launch, African Development Bank Group President Dr. Akinwumi Adesina said the release of the new report came at a time when African economies, faced with significant headwinds, were proving their resilience.
“With 54 countries at different stages of growth, different economic structures, and diverse resource endowments, the pass-through effects of global shocks always differ by region and by country. Slowing global demand, tighter financial conditions, and disrupted supply chains therefore had differentiated impacts on African economies,” he said. “Despite the confluence of multiple shocks, growth across all five African regions was positive in 2022—and the outlook for 2023–24 is projected to be stable.”
African countries have been asked to provide investment incentives to businesses operating in the agribusiness, green and blue economy in order to reduce the soaring costs of basic foodstuffs coupled with rising inflation in Africa. African Governments have further been urged to facilitate access to capital and crowd-funding to support SMEs in Africa, through the use of Government Guarantee Funds (GGFs) and Privately Driven Guarantee Funds (PDGFs) including subsidizing agricultural production for key sectors such as cereals, vegetable, and palm oil to reduce the costs of production to enhance global competitiveness.
“The economic prospects for Africa in 2023 look promising, Africa is coming out as resilient and is bound to transform the three major sectors of economic activities into a much more sustainable economic model; the extraction of raw materials (primary), the manufacturing sector (secondary) and the service industries (tertiary sector),” he said.
As Kenya, Tanzania battle for logistical superiority, inland EAC countries benefit (The Observer)
Before Kenya and Tanzania realise the fruits of their economic competition for the East and Central African logistics market, the inland countries are the major beneficiaries sooner than later. The two coastal countries have in recent years intensified efforts to improve their infrastructure networks, both hard and soft, targeting landlocked countries in Uganda, Burundi, Rwanda and South Sudan, and more recently, the Democratic Republic of Congo (DRC).
Ugandan imports account for more than 25 per cent of Mombasa's transit cargo business, while South Sudan's imports take another 9 per cent. However, Kenya's Mombasa port is poised to lose a big chunk of the trade volume attributed to South Sudan, as Juba pursues alternative routes.
Here's how Africa can get back on the growth trajectory (WEF)
Could Africa be on the cusp of another long stretch of growth? Perhaps. The last sustained stretch took place in the first part of the 21st Century. Since then, the continent has experienced growth in fits and starts, with changing priorities, shifting bilateral alliances and global ‘polycrises’ coming into play.
All things considered, the 54 nations on the continent, despite a well-documented list of setbacks, hold the capacity to develop while shielding their populations from socioeconomic shocks. But what will it take? And what stands in the way?
WEF Day 3 report: Guterres' plea, trade not aid and Africa's jobs conundrum - African Business (African Business)
On the third day of the World Economic Forum’s annual meeting in Davos, the secretary-general of the United Nations, António Guterres, called for deeper global cooperation and a greater role for the private sector as the world grapples with a period unprecedented crises.
Guterres said the world faces “a category five” storm of challenges that need urgent action. These include the risk of recession and economic slowdown, rising inequality, the cost of living crisis –especially for women and girls – and the disruption in global supply chains. Other challenges highlighted by Guterres are rising inflation, interest rates and debt levels that are straining the economies of poorer countries.
These challenges are compounded by accelerating climate change and the lack of preparedness for a future pandemic, even as the last one, Covid-19, still lingers.
Russia’s invasion of Ukraine, which he said was in violation of international law, has also added to global turmoil, increasing the uncertainty around food and energy security, trade and nuclear safety. All these problems are interlinked, he said, adding that “it will be difficult to find solutions at the best of times and when the world is united, but these are not the best of times and the world is far from united”.
Once dominated by aid, discussions around developing Africa now focus to a much larger extent on investment – even when they feature high profile representatives of aid organisations. A panel discussion examined how investment and aid can be best deployed into frontier markets, and the roles that aid organisations can play in collaboration with governments and the private sector.
The hesitation that some investors have about Africa has been attributed to the policy environment in the continent. However, according to Vera Songwe, many countries in the continent have now adopted the reforms necessary to support investment. “Frontier markets are the most profitable these days but because of the perception of risk, they look difficult to break into,” she said.
Samaila Zubairu, who said many countries have made structural changes to their economies and are now ready to absorb capital investments. However, capital remains elusive to many frontier economies. The approach of the AFC, he said, has been to support the provision of infrastructure that
5 step-guide to shape the future of global industrial strategies (WEF)
It goes without saying that 2022 was a challenging year on many fronts. Climate change, wars and conflicts, hunger and a global energy crisis following hard on the heels of the COVID-19 pandemic, with the poorest suffering the worst impacts.
These challenges are all symptoms of long-term, underlying megatrends. We are seeing threats emerge at an unprecedented scale and pace. Meeting these challenges head-on will require all the resources at our disposal.
For a successful transition to a more stable and resilient global economy, we need more than simple, short-term “emergency measures”. Accelerating progress towards Sustainable Development Goal (SDG) 9 – encompassing industry, innovation and infrastructure – has never been more crucial and requires a new way of thinking about industrial strategies.
Trade and Climate: EU and partner countries launch the ‘Coalition of Trade Ministers on Climate' (European Commission)
the European Commission, EU Member States, and 26 partners countries will launch “The Coalition of Trade Ministers on Climate”, the first Ministerial-level global forum dedicated to trade and climate and sustainable development issues. The Coalition will foster global action to promote trade policies that can help address climate change through local and global initiatives.
The Coalition aims to build partnerships between trade and climate communities to identify the ways in which trade policy can contribute to addressing climate change. It will promote trade and investment in goods, services and technologies that help mitigate and adapt to climate change.
A prominent element of the Coalition's agenda is to identify ways in which trade policies can support the most vulnerable developing and least developed countries that face the greatest risks from climate change.
G20's Think 20 summit concludes with Bhopal Declaration (The Siasat Daily)
The two-day Think 20 convention which was being held under the aegis of G20 concluded in Bhopal on Tuesday. Conclusion of the convention was marked by issuance of the Bhopal Declaration and a review of the last ten declarations of G20 as well. The key recommendations of the Bhopal Declaration include the need for development transformation to support transitions towards ‘Global South and Global Governance for LiFE (Lifestyle for Environment), and responsible consumption.
The subjects related to trade, triangular cooperation, climate change, environment, financing, sustainable development goals, inclusive model for development, changing geo-political scenario etc. dominated the various sessions of the two day Think 20 meeting organised under the aegis of G20.
In the plenary session 5, South Asia Watch on Trade, Economics and Environment (SAWTEE), Nepal Chairman Dr. Posh Raj Pandey threw light on the adverse impact of changing geopolitical, geo-economic environment on trade and value chain.
Advanced technology, reducing the cost of communication and transport systems along with universal access to digitization will be helpful in empowering the value chain, said Pandey. He also stressed on South-South, North-South triangular cooperation.
Oluseun Andrew Ishola, from Centre for Management Development (CMD), Nigeria was of the opinion that promoting global business in a participatory environment rather than a competitive one is the need of the hour.
Related News
tralac Daily News
Niger 2022 Article IV Consultation and Second Review under the Extended Credit Facility (IMF)
Niger’s political landscape is broadly stable, but the country continues to face daunting development challenges against a backdrop of fragility, which are exacerbated by a decade of conflict in the Sahel and exposure to climate shocks. Low rainfall in 2021, pushed an estimated 4.4 million people into acute food insecurity this year. Russia’s war in Ukraine added to food, petroleum, and fertilizer price pressures. Economic growth is projected to accelerate from 1.4 percent in 2021 to 7.1 percent this year, driven by private investment and the recovery in agriculture. While debt vulnerabilities have increased, the updated DSA deems debt as sustainable, and the risk of external and overall debt distress is still rated “moderate”.
Working group meets to discuss AU-AfDB study on driving inclusive growth in Africa (AfDB)
The African Union Commission (AUC) and the African Development Bank Group have a concluded a technical session on how to conduct an upcoming joint study on driving development in Africa. The goal of the study, titled Key Actions to Drive Inclusive Growth and Sustainable Development in Africa, is to identify key actions that will allow Africa to rise and remain at a growth level of 7% GDP.
The meeting, held from 12 -13 January 2023, brought together global experts in economic development theory and practice.
Acting Chief Economist and Vice President for Economic Governance and Knowledge Management of the African Development Bank Group, Professor Kevin Chika Urama told participants that Africa needs a new path to inclusive growth and sustainable development over the next three to four decades if the continent is to transition from low to high-income status.
He told the experts that Africa has the potential to achieve these goals and has a lot of strategies and policies to achieve them but has not been able to sustain growth rates at the levels required to sufficiently create decent jobs for citizens and achieve the structural transformation required to eradicate poverty in countries.
Despite the many challenges - structural, governance and sectoral issues that need to be addressed- Urama remains optimistic that the study results, backed by the leadership of the African Union Commission and the Bank Group, will lead to the desired outcomes. “There are several examples of successes in Africa and elsewhere to draw on as case studies to inform actionable, implementable, and transformative recommendations from the study,” Urama said.
Second international summit on food production in Africa to open in Dakar (AfDB)
African heads of state and government together with development partners will gather in Senegal to strategically map plans to unlock Africa’s food-producing potential and position the continent to become a breadbasket to the world. President Macky Sall of Senegal, and Chairperson of the African Union, will host the three-day Dakar II Food summit from 25 January, with the African Development Bank Group as co-host.
The agenda of the Summit whose theme is, Feed Africa: Food Sovereignty and Resilience, is the improvement of Africa’s food nutrition and security; leveraging the continent’s huge agricultural resources; boosting international trade, expanding market share, and production and processing value addition. The continent is home to a third of the world’s 850 million people living with hunger.
With the removal of barriers to agricultural development aided by new investments, Africa’s agricultural output could increase from $280 billion per year to $1 trillion by 2030.
Traders get two weeks to export avocado in off-season period (Business Daily)
The Horticulture Directorate has opened a two-week window for the export of off-season mature avocados following the closure of exports in November last year. The move is to allow farmers and orchards that have mature avocados to export the fruits within the issued time frame. Head of the directorate Benjamin Tito said the survey conducted in the first week of January showed that there is at least 10-35 percent of mature avocado in the east of Rift and 10-30 percent in the west of Rift, which needs to be exported.
The main season for the export of avocado starts on March 15 this year, and this has compelled the regulator to offer relief to exporters who have ready fruits.
The exporters are required to apply to the directorate for field inspection and approval before harvesting. The move is aimed at curbing the export of immature crops that have previously had a negative impact on Kenya’s export markets, risking a ban on the country’s produce.
Global steel prices increase 30pc over low production (Business Daily)
Global steel prices have increased 29.5 percent in three months amid declined production indicating a spike in the cost of constructing houses and other infrastructure.
This comes amid a slowed global crude steel production, especially in China, which is the top-producing nation at 52 percent of international output, and the leading import source market for Kenya.
The rise is expected to increase costs for developers, home buyers and infrastructure projects while further bogging down the construction sector, according to the Architectural Association of Kenya (AAK).”That means an increase in the cost of construction, which is transferred to the end user as our rates suffer because of international prices. It could also affect projects such as affordable housing and infrastructure unless the government waives some of the costs,” said Patience Mulondo from AAK.
Kenya remains a net importer of raw steel mainly from China and India with local companies manufacturing various finished products.
Wheat prices to remain high on sharp drop in production (Business Daily)
The price of wheat is expected to remain high following a sharp decline in the production of the commodity in Ukraine, one of the world’s top exporters. Production of grain in Ukraine has dropped to 65 million tonnes in the latest crop season from 108 million tonnes a year earlier, according to an official.
The decline, according to officials, has been attributed to a number of factors including high prices of fertiliser and war that interrupted farming activities.
The prices of wheat globally had shot to a high of $540 at the peak of the war between the two countries last year as the grain supply was cut short with the closure of the Black Sea corridor- a major grain route for grain to the world market. However, a United Nations-brokered deal saw the corridor opened in June with another extension issued in November, a move that helped to ease global prices that have now settled at $370 a tonne.
The official said that it is important for the corridor to remain open even with the ongoing aggression because of the key role that it plays in the world’s food security.
Sh3bn revamp of Kisumu port starts paying dividends (Business Daily)
The Sh3 billion rehabilitation of the Kisumu inland port has started paying dividends following the start of MV Uhuru 1 wagon ferry operations, which is eyeing the Uganda petroleum trade. With a capacity to ship over a million litres of fuel to the landlocked country, the historic vessel built in 1966 has rekindled the fortunes of Lake Victoria as a viable transportation route.
The vessel, which was officially relaunched by former President Uhuru Kenyatta in 2019 can make up to 10 round trips in a month.
The port has also been equipped with forklift trucks, mobile cranes and tractor-trailers ready for imports and exports business.
Members of the private sector in Africa have called for the completion of negotiations on schedule of tariff offers, finalisation of work on Rules of Origin, full operationalisation of the Pan African Payment Platform and the speedy resolution of all outstanding issues germane to the effective implementation of Africa Continental Free Trade Area (AfCFTA). They made the call yesterday at the Lighting of the Africa Trade Torch for the implementation of AfCFTA, held in Zambia and other member state countries simultaneously.
The President of Pan-African Manufacturers Association (PAMA), Francis Meshioye, called for support for the African Union and AfCFTA Secretariat in the quest to evolve strategic approaches that will ensure trading in the AfCFTA corridor stimulates inclusive development in Africa through a strategic framework.
The framework is expected to facilitate inflow of investment into the continent, ensure upscaling of trade in manufactured goods through improved industrial capacity, as well as inclusion of women, youth, innovation and technology development in the implementation roadmap.
Others include addressing macroeconomic environment, poor competitiveness and dearth of trade facilitation infrastructure prevailing in many African countries, deliberate development of industrial inputs to reduce the intensity of reliance on the global supply chain, intentionally bringing down all the historical physical borders in Africa, facilitating peaceful co-existence and security of lives and property, as well as effective support for all organised private sector organisations in Africa.
He said the private sector plays a critical role in transforming trade in Africa, even as he affirmed their commitment to the seamless operationalization of AfCFTA.
Secretary-General Calls Group of 77 Developing Countries and China Multilateralism in Action (UN)
As we begin 2023, we must be brutally honest. Our world faces a series of difficult and deeply intertwined challenges. Rising poverty, widening inequalities, a persistent pandemic and a looming global recession.
Food, energy and cost-of-living crises exacerbated by the war in Ukraine. Mounting sovereign debt and a morally bankrupt global financial system that undermines recovery in so many developing countries. Climate chaos, biodiversity loss, conflicts and human rights abuses. And a world that continues to deny women and girls their fundamental rights across every walk of life.
First, we need to re-energize the global economy through massive support to the developing world. Progress towards the Sustainable Development Goals has been thrown dramatically off-track. Rescuing the SDGs [Sustainable Development Goals] means ensuring that developing countries receive massive support to reduce poverty and hunger, and invest in systems like health care, education, social protection, gender equality and renewable energy.
Second, we need real, credible and ambitious climate action. Reminders of the climate emergency are everywhere. Floods, droughts, wildfires and heatwaves have struck countries across the world, hitting the poorest and most vulnerable hardest.
So, 2023 must be focused on two goals -- justice and ambition. We need justice for those who did so little to cause the crisis. An important step towards justice -- thanks in great part to the leadership of the [Group of 77] -- was the decision at COP27 [twenty-seventh Conference of the Parties to the United Nations Framework Convention on Climate Change] to establish a loss and damage fund.
Justice means turning this decision into effective reality. Justice means the delivery of the $100 billion commitment by the developed world. Justice means a clear and credible road map to double adaptation finance. Justice means a successful second replenishment of the Green Climate Fund. And justice means ending the war on nature and supporting developing countries in protecting the ecosystems and species that call them home.
2023 must also be focused on ambition. Ambition to close the emissions gap. And ambition to phase-out coal and accelerate the renewables revolution.
And for that, developed countries must provide -- together with international financial institutions and the private sector -- the financial and technical assistance that is needed to help major emerging economies accelerate their renewable energy transition.
And third -- we need to use the many global gatherings this year to re-energize progress towards the Sustainable Development Goals.
The UN-brokered Black Sea Grain Initiative signed last July along with a Memorandum of Understanding, aimed at suppling markets with food and fertilizer amid global shortages and rising prices exacerbated by the Ukraine war, has now allowed 17.8 million tonnes to reach millions in need worldwide.
The critical food supplies, mostly from farms in Ukraine heavily disrupted by the continued fighting in the wake of Russia’s full-scale invasion last year, have reached 43 countries since August – more than 40 per cent of them low and middle-income nations, the initiative’s Joint Coordination Centre (JCC) said in a Note to Correspondents on Wednesday.
In December, exports through Ukraine’s Black Sea ports rose to 3.7 million metric tonnes, up from 2.6 million in November, and in just the last two weeks, nearly 1.2 million metric tonnes have left port. “However, unfavourable weather conditions both in Odesa ports as well as in Turkish inspection areas have curbed some movements in the last week”, the JCC said.
To date, China has led the way in terms of receiving exports through the grain deal mechanism, based in Turkey’s largest city - the gateway to Asia and Europe, Istanbul. Spain has been the second most common destination, with Türkiye itself, third. Nearly 44 per cent of the wheat exported has been shipped to low and lower-middle income countries – 64 per cent to developing economies, the JCC reported.
US, DRC and Zambia sign MoU to strengthen EV battery value chain (Engineering News)
The US has signed a memorandum of understanding (MoU) with the Democratic Republic of Congo (DRC) and Zambia to strengthen electric vehicle (EV) battery value chains. Under the terms of the MoU, the US will support the commitment between the DRC and Zambia to develop jointly a supply chain for EV batteries.
The MoU, signed during the US-Africa Leaders Summit in December, supports the DRC’s and Zambia’s goal of building a productive supply chain, from the mine to the assembly line, while also committing to respect international standards to prevent, detect and take legal action to fight corruption throughout this process.
The DRC produces more than 70% of the world’s cobalt, and Zambia is the world’s sixth-largest copper producer and the second-largest cobalt producer in Africa. These resources, and this commitment to cooperation, are crucial components of the urgently needed global energy transition.
Full operationalisation of afcfta will promote html (Modern Ghana)
Principal Policy Advisor of the Economic Commission of Africa, Joseph Atta-Mensah has called for the removal of the VISA requirements among African countries. According to him, the free movement of people on the continent is necessary to propel the economic growth of Africa. Mr Atta-Mensah called for this rectification when discussing the topic ‘Africa Prosperity Dialogues: All you need to Know” on Accra-based Asaase Radio.
Mr Atta-Mensah further urged business owners in Ghana to embrace the newly-established African Continental Free Trade Area (AfCFTA) which has its office situated in the country.
New twist for EAC monetary body timeline (The Citizen)
The East African Community (EAC) has issued a new date for the setting up of its monetary body that will spearhead the single currency project. This time around the regional organisation said the East African Monetary Institute (EAMI) is to be established this year.
EAMI will be tasked to pave the way for the single currency economy in the seven nation economic bloc. The region now plans to have a single currency regime in four year’s time, as revealed by the EAC boss, Dr Peter Mathuki.
Although the single currency is set for adoption in four years, EAMI will be in place this year “to allow us to harmonise member states’ fiscal and monetary policies.”
The single currency is one of the projects earmarked for implementation under the East African Monetary Union Protocol. It is aimed to ease business and movement of persons within the region as envisioned in the Common Market Protocol.
Why EAC is eager to admit Somalia to the regional bloc (The Citizen)
After connecting the Indian Ocean and the Atlantic Ocean through the admission of DR Congo, the East African Community (EAC) is now eyeing one of the longest coastlines in Africa. The drive to admit Somalia into the bloc aims to bring under control the Horn of Africa coast line that is abundantly rich in fisheries.
Somalia’s long Indian Ocean/Red Sea route that links the EA region to the Arabian Peninsula is seen as a vibrant economic zone. “It will bring immense benefits for the EAC through the exploitation of Somalia’s blue economy resources such as fish,” said the EAC secretary general, Peter Mathuki.
India to play crucial role in technology sector in G20 (Rising Kashmir)
India has a crucial role to play in its G20 presidency in the technology sector. As a country with a strong focus on technology and innovations, it has a significant role to play in bridging the digital divide. Harsh Shringla, India’s Chief Coordinator for G20, earlier said the principle of data for development will be an integral part of the overall theme of India’s presidency of the group of the world’s developed and emerging economies.
Shringla said that it was important to focus on the benefits that technological progress and evidence-based policy can provide when it comes to expanding access to healthcare and nutrition.
As G20 president, India now has the opportunity to extend its digital revolution to low and middle-income countries, which still face a significant digital divide.
CS Miano calls for new, bold ideas to tackle drought (The Star)
East African Community, ASALs and Regional Development CS Rebecca Miano has called for new and bold ideas to tackle the drought that has continued to hit various parts of the country.Miano spoke during a high-level meeting organised by the National Drought Management Authority and USAID to develop phase two of the ending drought emergencies strategy.The meeting brought together local and international experts from various sectors to come up with a strategy to address the perennial drought problem in Kenya and the region.
The experts are expected to come up with strategies and a framework to address drought emergencies going into the future.
Exploring Multilateral Platforms for Cross Border Payments (IMF)
This report provides an assessment of whether and how multilateral platforms could bring meaningful improvements to the cross-border payments ecosystem. It was written by the Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) in collaboration with the BIS Innovation Hub, the International Monetary Fund (IMF) and the World Bank. The report analyses the potential costs and benefits of these platforms and how they might alleviate some of the cross-border payment frictions. It also evaluates the risks, barriers and challenges to establishing multilateral platforms and explores two paths for their evolution. The analysis is based on a stocktake, conducted by the CPMI, of existing and potential multilateral platforms as well as bilateral discussions with existing platform operators.
Related News
tralac Daily News
The support that government provides to black-owned companies operating in the poultry industry will contribute significantly in transforming the industry and ensuring that there is food security in the country. However, it is imperative for government to realise that the sustainability of these businesses depends on black companies occupying the entire value chain of the industry. This is the view of the 37-year-old North West industrialist, Mr Ofentse Moloko.
Baramakama received support to the tune of R50 million from the Department of Trade, Industry and Competition (the dtic) and its development finance institution, the Industrial Development Corporation (IDC), as part of the Black Industrialists Programme. The programme is part of government’s efforts to accelerate the quantitative and qualitative increase and participation of Black Industrialists in the South African economy, selected industrial sectors and value chains.
“The government support needs to cut across the value chain if we want meaningful transformation of the industry, and if we want the Black Industrialists to play an important and discernible role in food security in the country. This includes feed production, hatcheries, abattoirs, chick rearing, processing, as well as market access. Although we regard ourselves as a success after obtaining the support, we are left at the mercy of our key competitors from whom we source feed and hens. That makes us vulnerable as the supply tabs can and are regularly switched on and off depending on how they want to control and benefit from the market conditions,” adds Moloko.
Moloko does not pin all his hopes on the Poultry Sector Master Plan, which was developed in close partnership between government and several stakeholders in the industry, including poultry producers, processors, exporters, importers and organised labour. One of the objectives of the plan is to increase the level of black participation and particularly ownership across the value chain and increase employment and worker share-ownership in the sector.
Moloko believes that most strategic decisions taken within the Poultry Master Plan depend much on the existing large players in the industry, who through their actions do not easily allow black players into the more profitable value chain channels. But he remains resolute and hopeful that with more black players in the value chain, the industry will not only transform, but allow healthy competition to the benefit of all participants.
Rising prices push consumers to the brink (New Era)
Comparative consumer prices for the festive season, December 2022, increased to 6.9% when matched to 4.5%, recorded in December 2021. This is an increase of 2.4 percentage points on the pocket, with the main contributors being transport and food and non-alcoholic beverages, which both recorded 2.2 percentage point increases. The monthly inflation rate increased by 0.3%, compared to 0.5% registered a month earlier.
These figures were released by the Namibia Statistics Agency (NSA) last week in the Namibia Consumer Price Index (NCPI) for December 2022. The highest changes in the annual inflation rate were mainly witnessed in the categories of transport (14.8%); food and non-alcoholic beverages (11.8%); hotels, cafes and restaurants (11.7%); furnishings, household equipment and routine maintenance of the house (10.6%); recreation and culture (5.6%), and miscellaneous goods and services (4.5%).
The astronomical increase in prices for household oils and fats takes a toll on informal traders, especially those in the vetkoek business, who derive the majority from informal trading.
Mining sector employment grow by 96 per cent (Daily News)
EMPLOYMENT in the mining sector has grown by 96 per cent to over six million people, thanks to the changes in the 2017 Mining Law. The changes in the mining laws that included also the adoption of the Local Content regulations have made the local purchases reach 92 per cent. The Mining Commission Executive Secretary, Yahya Samamba said in Dodoma recently that the changes in the mining laws have contributed to the sector’s growth and its contribution to the Gross Domestic Product. “Before changes in the mining laws, most mining companies were employing many foreign nationals even in jobs that could be done by Tanzanians,” he said.
He added, the situation led the government to make changes in the mining laws to increase the participation of Tanzanians in the mining economy through employment, provision of services in the mines such as food and the distribution of mining equipment. He added that the changes also led to an increase in local purchases up to 92 per cent compared to less than 50 per cent before the changes in mining laws where most of the products were imported even though they were available in the country.
SMEs policy under review, Minister says (Daily News)
THE government is undertaking a review of policy for Small and Medium Enterprises (SMEs) to cope with the existing investment environment in the country. The Deputy Minister for Investment, Industry and Trade, Mr Exaud Kigae said in a statement that they were in a dialogue to discuss how to continue improving investment relations between Tanzania and the United Kingdom (UK). The dialogue that was coordinated by the Tanzania Investment Centre (TIC), also discussed the progress achieved by Tanzania in improving the business and investment environment, as well as identifying the challenging areas that require rapidity to ensure the country attracts more investors.
“In effort to create an enabling environment for investors, the ministry is reviewing various policies including SMEs policy, to ensure they correspond to existing investment needs,” Mr Kigae said. In the same line, the deputy minister also noted that the government will continue to set specific strategies for the execution of the reviewed policies. Tanzania SMEs Development Policy was developed in 2003, focusing on competitiveness, upgrading and partnership unit, business, investment and technology.
Private sector should gain in the next Budget (Monitor)
From Covid-19 to double digit inflation coupled with external factors such as Ebola and the geopolitical conflict in Eastern Europe (Russia-Ukraine war) which brought about imported inflation, subdued global growth, Uganda’s economy has been in turmoil. This three-some tragedy has led to slower economic growth and overall development in Uganda.
To avert slowdown in economic growth, the Finance Ministry says the overall objective of the FY 2023/24 Budget Strategy is to restore the economy back to the medium-term growth path of 6-7 percent per annum and improve the economy’s competitiveness. The Finance Ministry says in the Budget Framework Paper for Financial Year 2023/24 in the medium-term, increasing the wealth of households and eliminating poverty, particularly using the Parish Development Model and small and medium enterprises economic recovery programmes is key for socioeconomic transformation. In addition, diversifying the economy and Uganda’s exports are key to achieving the planned economic growth trajectory.
Nigeria leads Africa as the highest generator importer (Nairametrics)
The International Renewable Energy Agency (IRENA) said Nigeria is the highest premium motor spirit (PMS) and diesel generator importer in Africa. The agency disclosed this in a new report developed in partnership with the Energy Commission of Nigeria (ECN) and titled ’Renewable Energy Roadmap: Nigeria’.
The IRENA report also revealed that Nigeria’s on-grid generation is dominated by natural gas power stations at 86% and large hydropower plants at 14%. However, unavailability of gas, machine breakdowns, seasonal water shortages and limited grid capacity have severely limited the operational performance of these power plants, thus affecting the power supply.
As Nigeria struggles with power supply access, stakeholders in the sector insist that alongside other challenges, lack of financing is a major issue that needs to be tackled to power the country for the benefit of its over 200 million inhabitants.
According to IRENA, the low rate of power infrastructure and capacity in Nigeria, provides a context for a paradigm shift towards renewable energy. IRENA says that Nigeria has much to gain from pivoting towards domestic renewable energy sources in place of domestic fossil fuels.
Why China and Egypt Are Growing Closer (Foreign Policy)
As the Egyptian economy falters, Sisi is turning to the Chinese government for support.
Last month, Cairo agreed on a $3 billion bailout package with the International Monetary Fund. China stands to lose if Egypt’s economy were to collapse, given the level of trade between the two countries and because China is the heaviest user of the Suez Canal—a crucial link for shipping its goods to Europe.
Qin underscored Beijing’s commitment to help boost Egypt’s economy through the import of Egyptian products and the increase of Chinese tourists to Egypt, a major source of revenue for the country, which significantly struggled during the pandemic but has gradually recovered despite a drop in the number of Chinese travelers.
On Sunday, China’s new foreign minister, Qin Gang, ended his five-nation African tour in Egypt, where he held separate meetings with Egyptian President Abdel Fattah al-Sisi and Arab League Secretary-General Ahmed Aboul-Gheit. The visit came at a precarious moment for Egypt’s economy and currency, which the government has allowed to drop precipitously—17 percent since Jan. 1 and 50 percent in the last 10 months—in an apparent newfound embrace of a flexible exchange rate policy.
As the United States seeks to regain influence across Africa, China has been reaffirming its ties with the continent as well as looking outward toward the Middle East. “China appreciates Egypt’s decision to welcome Chinese tourists. We believe that in the near future, the number of Chinese tourists and flights to Egypt will return to or even surpass the pre-pandemic level,” Chinese foreign ministry spokesperson Wang Wenbin told reporters at a news briefing in Beijing on Monday.
Liberia: Govt Suspends Tariffs on Rice and Other Commodities (FrontPageAfrica)
President George Manneh Weah has issued two Executive Orders affecting critical national issues germane to the security and well-being of citizens. President on Friday, January 6, 2023, issued Executive Order #113 suspended the import tariff on rice, and Executive Order #114 established the West African Police Information System (WAPIS). Executive Order #113 is in consideration of the expiration of Executive Order #105 and the government’s commitment to ensuring that the prices of certain basic commodities on the market are affordable, and do not impose an unnecessary burden on the citizens.
“Now, therefore, the government of Liberia in its desire to continue bringing relief to the public, hereby issues this Executive Order #113, suspending import tariff on rice as classified under tariff Nos 1005.30,00 (in packing of more than 5kg or bulk); 1006.30.00 (in packing of at least 5kg); and 1006.40.00 (broken rice) under the Revenue Code of Liberia Act with immediate effect,” asserts the President.
According to President Weah, based on the findings of the assessment, the government has seen the need to curb “the continuous increase in the price of rice, to make it affordable to the public for purchase”.
AfCFTA: ‘Africa Must Dismantle Tariff Barriers Hindering Continental Trade’ (Leadership News)
To harness the potentials inherent in African Continental Free Trade Agreement (AfCFTA), African countries in West, Central Africa sub-region must fast-track the dismantling of various tariff and non-tariff barriers hindering intra-Africa trade.
Speaking at the ongoing the 9th United African Shippers’ Council (UASC), meeting holding in Lagos, tagged ‘African Continental Free Trade Agreement: A veritable platform for African Shippers to Mainstream into global trade’, the executive secretary, Nigerian Shippers’ Council (NSC), Hon. Emmanuel Jime, said African leaders must embrace tariff liberalisation for intra African trade to thrive.
According to him, trading within African countries is presently at a paltry 11 per cent while Africa’s trade to global trade is at ridiculous per cent. He, however, advised that re-orientation and re-organization of intra-Africa trade should start from West and Central Africa sub-region, saying should the region get it right, it will be easier for other sub-region in the African continent to trade among themselves.
“We need to create smooth integration of our transport infrastructures and trade policies as well as the required awareness among the economic operators in the sub-region. There is need to sensitise our various governments to fast track the dismantling of various tariff and non-tariff barriers that are hindering international trade. We should always look at the holistic impact which tariff liberalization would have on our economy rather than just considering the immediate shortfall.”
Implementing the AfCFTA Agreement will boost intra-African trade and industrialization (UNECA)
The implementation of the African Continental Free Trade Area (AfCFTA) should be expedited as the free trade zone will boost intra-African trade and accelerate industrialization, the Economic Commission for Africa (ECA) Acting Executive Secretary, Mr. Antonio Pedros, has urged. “While the AfCFTA’s promise is high, that promise can be realized only if the Agreement is implemented efficiently,” Mr. Pedro said, admitting that implementing the AfCFTA Agreement and supporting African economies, particularly Least Developed Countries (LDCs), was no small task.
In remarks at the opening of the Regional consultation on LDC5 for LDCs in Africa and Haiti, Mr. Pedros said the Doha Programme of Action for Least Developed Countries was timely for Africa whose economies have been impacted by the Covid pandemic and the Ukraine war.
AfCFTA: FG Calls for Trade Liberalization, Inter-Regional Synergy to Reap Benefits (This Day)
Esther Oluku President Muhammadu Buhari, has called for trade liberalization and deepening in inter-regional synergy to reap the benefits of the African Continental Free Trade Agreement (AfCFTA). Speaking at the 9th edition of the African Shippers’ Day held in Lagos, the president stated that as African trade moves to a single market window, nations who are party to the agreement must ensure better inter-regional synergy hence stemming the fallbacks in trade as was experience during the Covid19 pandemic.
Ruto, EAC ministers pledge to end trade barriers (The New Times)
Kenyan President William Ruto on Tuesday, January 17 issued a rallying call to regional leaders, citing that it will require joint forces to end the current trade and investment bottlenecks in the region. President Ruto was speaking to the East Africa Community (EAC) council of ministers, during a meeting he hosted in Nairobi, Kenya. “We have a common destiny as East Africa. We must, therefore, work together towards eliminating impediments to trade and investment within the region for the prosperity of the people,” President Ruto said in a tweet.
MPs reject sh1.4b budget for EAC affairs sensitization (New Vision)
Parliament’s budget Committee MPs have rejected a request of sh1.4b from the East African Community Affairs (EAC) Committee meant for sensitization and public awareness by the Ministry of East African Community Affairs in the 2023/2024 financial year. This was during a meeting in which the EAC Committee Chairperson, Noeline Kisembo presented the Budget Framework Paper for the Ministry of East African Community Affairs on Tuesday. January 2023.
She pointed out that the approved funds of sh 720 million are not sufficient enough, saying that one of the main problems facing the Ministry of East African Affairs is visibility.
The 45th Ordinary Session of the PRC begins (AU)
The 45th Ordinary Session of the Permanent Representatives’ Committee (PRC) kicked off on 16 January 2023, in preparation for the 42nd Ordinary Session of the Executive Council and the 36th Ordinary Session of the Assembly of the African Union (AU) to be held from the 15-19 February 2023.
Addressing the ambassadors in his opening remarks, the Chairperson of the AU Commission, H.E. Moussa Faki Mahamat noted the resilience of the members of PRC and the Commission in the new working method imposed by the COVID-19 pandemic that is to work virtually.
The official opening ceremony of the 45th Ordinary Session of the PRC meeting, was attended by the Deputy Chairperson of the Commission, the AU Commissioners, representatives from AU organs and AU officials.
Until 27th January, the ambassadors will consider different reports including: the activities of the PRC Sub-Committees, reports of the Specialized Technical Committees (STCs) held in the year 2022, the reports of the AU Commission, the Annual report on the implementation of activities on the roadmap of the AU theme of the year 2022 on nutrition, the evaluation report of the First-Ten Year Implementation Plan (FTYIP) of Agenda 2063 and the development of the Agenda’s Second-Ten Year Implementation Plan (STYIP), the report on the social and humanitarian situation (humanitarian situation and humanitarian agency), reports from other AU organs and the AU specialized agencies. The session will also consider the draft agenda and draft decisions of the 42nd Ordinary Session of the Executive Council scheduled to take place from 15th to 16th February in Addis Ababa.
Green hydrogen an answer to Africa’s energy poverty (New Era)
Mines and energy minister Tom Alweendo says Namibia is one of the front-runners in becoming a continental green hydrogen hub. In this respect, he has invited potential investors to seize the opportunity that intends to make Namibia self-sufficient in terms of energy generation to supply the remaining electricity to the rest of southern Africa.
Alweendo said when it comes to the African continent, especially Sub-Saharan Africa, the continent is associated with negative attributes – either underdevelopment or poverty.”This narrative completely ignores the strengths and resilience of the African people. The result of this misconception about us is that as a member of the global communities, our voice is not always heard; consequently, we have not been able to take our rightful place as a respected voice of the global community – a voice that deserves to be heard,” said Alweendo virtually during the Voice of Global South Summit.
Alweendo added: “We have found it unreasonable when some countries and global individuals try to dissuade Africa from leveraging some of its natural resources. They suggest and at times demand that we give up our fossil for energy resources. They press us to as soon as possible switch to clean renewable energy sources, such as wind and solar – and that it is for our good.”
The Africa Fertilizer Financing Mechanism (AFFM) has welcomed $10.15 million in new funding from the Norwegian Agency for Development Cooperation (NORAD). The financing will target projects in Uganda, Kenya and Mozambique, which will be receiving AFFM support for the first time.
NORAD’s contribution will enable the Africa Fertilizer Financing Mechanism to provide credit guarantees for up to 36 months in Uganda, Kenya and Mozambique, with the expected leverage of at least ten times the credit guarantee amount, enabling access to at least 85,000 metrics tons of fertilizer for 850,000 smallholder farmers in the three countries.
The NORAD contribution will buttress the African Emergency Food Production Facility, the African Development Bank Group’s rapid response initiative for addressing Africa’s current food crisis, which has been exacerbated by climate change, conflicts, pests and disease.
Why used car exports to Africa are a development opportunity (WEF)
Used cars are often exported to lower income countries after 10-15 years in developed markets, meaning their emission levels tend to be higher. Air quality degradation is driven by old cars in Africa, home to 40% of global used vehicles, and 80% of these do not meet basic emissions standards. As we transition to electric vehicles, public-private collaboration is key to ensure this happens equitably in both the Global North and Global South.
As China Reopens, African Countries Gear Up for Business (VOA)
After three years of closed borders under its strict “zero-COVID” policy, China reopened its doors to allow international travelers in — and Chinese with cabin fever out — a move with economic implications around the world, including in Africa. On the continent, which counts China as its largest trade partner, African importers who sell cheap Chinese-made goods said they were itching to return to China to stock up while many African countries are also hoping to attract Chinese tourists.
While fears about the spread of COVID-19 caused some countries in Asia, Europe and North America to implement negative testing requirements for Chinese travelers, drawing the ire of Beijing, countries like Kenya and South Africa said they would not be implementing any travel restrictions for travelers from China.
“We are open to going there now and we are looking forward to do that to make sure that we get our businesses back on track,” Samuel Karanja, the CEO of the Importers and Small Traders Association of Kenya, told VOA, adding that the pandemic years have been a “roller coaster” for traders. “For the past three years, it has been a very difficult moment for those traders because they lost touch with their suppliers. Ideally, the traders could go to China, meet their suppliers or manufacturers, go with samples of the goods that they need to be produced for them, some of them could wait for even weeks to be able to see that the production is completed, and the goods are loaded in containers and they’re coming back to Kenya,” he said.
US Treasury Secretary Heads to Senegal, Zambia and South Africa (VOA)
U.S. Treasury Secretary Janet Yellen is headed to Senegal, Zambia and South Africa this week to discuss trade expansion, investment and the U.S. commitment to African economies. This comes after a promise from President Joe Biden at the U.S.-Africa Leaders’ Summit last month that he and members of his Cabinet would visit Africa in 2023.
“I think this is the first in many steps to engage Africans on the continent,” said Cameron Hudson, a senior associate with the Center for Strategic and International Studies’ Africa Program. But he told VOA, “There’s an overall message [U.S. officials] are trying to send as well, which is Washington is present, and that message is not only for the Africans but for the Chinese, Russians competing with the U.S. in these markets.”
Senior U.S. Treasury officials maintain that the purpose of the trip is to exchange ideas with African government officials, private sector leaders, entrepreneurs and youth, and to deepen economic ties between the U.S. and Africa, charting new opportunities for trade and investment.
Tackling health poverty risks in Africa: 4 experts weigh in (WEF)
Africa’s push towards public health autonomy is gaining momentum. With the creation of the Africa Centres for Disease Control and Prevention (CDC), African Medicines Agency and the proposed African Pandemic Preparedness and Response Authority, governments on the continent are coming together to reduce Africa’s dependency on other countries for its health security.
African nations import over 70% of their medicines, vaccines and other health products. But despite being a net importer of medical products, the continent has shown a level of success in managing disease outbreaks.
Looking ahead, African governments need to focus on strengthening their public health institutions to support rapid and effective responses to disease threats and outbreaks. There is scope for governments to leverage public/private partnerships to create robust health systems based on data-driven interventions.
WTO Director-General Says Future of Trade Is ‘Digital, Green and Inclusive’ (WEF)
A challenge for the 2023 trade outlook is not only slowing global growth but also the uncertainty surrounding those statistics. The war in Ukraine, concerns about COVID and fragile supply chains have caused many nations to rethink their approach to trade and question the future of globalization. The World Trade Organization and others have warned that deglobalization would negatively impact the world and especially emerging economies. The question for global leaders is how to create a new agenda for global growth.
Ngozi Okonjo-Iweala, Director-General of the WTO, said: “We say the future of trade is services; it’s digital; it’s green. And it should be inclusive.” Many nations have seen a push to relocate manufacturing closer to consumers’ demand, after supply shocks associated with port blockages, the war in Ukraine and the pandemic. Moreover, concerns about national security have caused many nations to question their over-reliance on certain countries for critical goods and services, such as European dependence on Russian energy. Okonjo-Iweala said the future of trade must also prioritize inclusivity.
Industrial policy has become a major focus for many nations rethinking their approach to trade. “Five years ago, [industrial policy] was not a very sexy topic. Today it’s top of the agenda,” said Alexander De Croo, Prime Minister of Belgium
Ensuring that sustainability remains at the top of the global trade agenda will require coordination with multilateral agencies. As many nations seek out bilateral trade agreements, there is a risk of global trade splintering into trading blocks. Promoting a trade agenda that is fair, inclusive and sustainable will require institutions such as the WTO to establish clear ground rules for all nations.
Trading-up: taking the high road out of trade doldrums (WEF)
As we enter 2023, with the World Economic Forum’s Annual Meeting in Davos taking place under the banner of “Cooperation in a Fragmented World”, the future of global trade and investment is murky. Geopolitical tensions and industrial policy have cast a long shadow on economic openness.
Teetering on the brink of a painful downturn, the global economy and broader society need evidence that we can work better together. The importance of trade and investment in delivering growth, development and sustainable outcomes must be re-established to avoid deglobalisation policies that will erode past gains.
The cracks in the trade system show even in the disconnect between data and narrative. Both global merchandise and services trade volumes are at record highs. Both exports and imports between the US and China, between the US and Europe and between China and Europe, are at their highest ever. But the rhetoric is of fracture and disengagement. And that narrative is clearly influencing investors, with investment flows continuing to trend down.
Globalisation shifting owing to supply chain disruptions, research finds (Engineering News)
New research has revealed the emergence of major shifts in globalisation, as companies rush to move manufacturing closer to home to protect against supply chain disruptions, while increasingly protectionist policies are breaking the world into trade blocs.
The latest ‘Trade in Transition’ study, commissioned by supply chain logistics provider DP World and led by Economist Impact, captured the perspectives of company leaders as they navigate the latest disruptions to global trade – from the conflict in Ukraine to inflation and extended Covid-19 lockdown policies in some markets. Its key finding is that 96% of companies have confirmed they are making changes to their supply chains owing to geopolitical events.
The fragmentation of the world into trade blocs was also cited by 10% of respondents as limiting the growth of international trade. Beyond the war in Ukraine, US-China tensions and cyber warfare are preventing the efficient functioning of economies worldwide. This is leading to increasingly protectionist policies globally, leading to further fragmentation of the global trade system.
The widespread and increasing adoption of technology is indicated to be another way to build resilience into the supply chain. Some 35% of respondents said they were currently implementing Internet of Things solutions to facilitate the tracking and monitoring of cargo, while another 32% of companies are adopting digital platforms to enable direct business with customers or suppliers.
The State of Climate Ambition: Snapshots for Least Developed Countries (LDCs) and Small Island Developing States (SIDS) provide analysis for these groups of Climate Promise-supported countries surrounding their NDC status and implementation readiness. The Snapshots build upon, and update information, from UNDP’s The State of Climate Ambition published in 2022. Each Snapshot explores NDC submission, ambition and quality status while assessing progress on key systems and architecture for NDC implementation. They also look at areas of past and future Climate Promise support and showcase champion countries.
Representatives of G20 countries pitched for South-South cooperation and asked the developed nations to fulfil their commitment towards funding SDG progress in the developing countries in the “Bhopal Declaration” on the last day of the “Think-20” event on Tuesday. The theme of the event was: “Global Governance with LiFE (Lifestyle for Environment), Values and Wellbeing: Fostering Cooperation in Framework, Finance and Technology”.
“The world is passing through turbulent times of multiple crises- food, fuel and pandemics. Post-COVID recovery has become uncertain and prolonged, and progress in SDGs has reversed and slowed down drastically across many countries of the world,” the declaration issued at the end of the two-day event said.
The transformation of economic systems is required for achieving SDGs. Further, there are high linkages between such transformation and sustainable development, it said. The diversification of Global Value Chains (GVCs) is necessary but with special and differential treatment to developing countries exporting nations, it said. Foreign Direct Investment (FDI) in services, infrastructure sectors and logistics could facilitate the effective participation of countries in regional GVCs, as per the declaration.
Revised Industry Standards Reflected in 2023 Edition of IATA Manuals (IATA)
The International Air Transport Association (IATA) announced that it has completed the annual revision of its air transport industry manuals for cargo, ground handling, and operations, thus incorporating the updates made to many of the underlying industry standards over the past year. These revisions reflect the sector’s commitment to further improving safety, introducing more sustainable operations, as well as enhancing the passenger experience and cargo handling.
“Aviation is a unique industry with its global footprint covering operations from mega-hubs, through regional airports to small and even remote airfields. Nevertheless, the same standards and procedures need to be applied across the globe, in order to maintain smooth operations and a high level of safety. The IATA manuals are the reference materials, accurately reflecting agreed global standards, which the industry abides by,” said Frederic Leger, IATA’s Senior Vice President for Commercial Products and Services.
Key stakeholders in the aviation value chain – such as airlines, airports, ground service providers, freight forwarders, shippers, and manufacturers – rely on the IATA standards to ensure robust and efficient operations. The IATA manuals are based on the recommendations devised by standard setting bodies such as the International Civil Aviation Organization (ICAO) and other industry working groups.
Economic slowdown may force workers into ‘lower quality’ jobs (UN News)
According to the International Labour Organization (ILO), global employment is set to grow by just one per cent in 2023, which is less than half last year’s level. The number of people unemployed around the world is also expected to rise slightly, to 208 million. This corresponds to a global unemployment rate of 5.8 per cent – or 16 million people - according to ILO’s World Employment and Social Outlook Trends report.
The UN report warns that today’s economic slowdown “means that many workers will have to accept lower quality jobs, often at very low pay, sometimes with insufficient hours”.
An equally worrying development is the probability that efforts will be dashed to help the world’s two billion informal workers join the formal employment sector, so that they can benefit from social protection and training opportunities. “While between 2004 and 2019 we observed decline in incidence of informality globally of five percentage points, it is very likely that this progress will be reversed in the coming years,” said Manuela Tomei, ILO’s Assistant Director-General for Governance, Rights and Dialogue.
New guide to help governments manage costly oil and gas closures (The Commonwealth)
The Commonwealth Secretariat has released a new practical guide to help governments manage costly oil and gas decommissioning activities, which are expected to surge as a result of the global energy transition.
Decommissioning is a complex and costly process at the end of the economic life of an individual oil and gas project. It involves the safe plugging and abandoning of oil wells, removal of structures and restoration of the surrounding areas.
For many oil-producing developing countries, the decommissioning process could cost billions of dollars, and if monies are not specifically set aside to pay for these activities, taxpayers may have to foot the bill. If poorly executed, decommissioning can also have disastrous consequences for the environment and communities. Furthermore, as the world transitions away from fossil fuels and the demand for oil and gas declines over the long-term, it becomes increasingly likely than many oil and gas assets could become uneconomic sooner than expected, resulting in “stranded assets”. Having robust systems in place to deal with decommissioning is therefore critical.
Developed countries should walk the talk on transforming food systems by helping smallholder farmers in developing countries with cheaper access to irrigation, fertilizers and markets, said Raj Kumar Singh, India’s Minister for New and Renewable Energy, in a session on “Interplay of Food, Energy and Water” at the 53rd World Economic Forum Annual Meeting.
Calling for an international agreement whereby every country would become accountable for transforming its food system, Ramon Laguarta, Chairman and CEO of PepsiCo, USA said it is imperative to put the farmer at the centre, and make sure the farmer makes good money while using fewer resources and producing fewer carbon emissions.
Anne Beathe Tvinnereim, Minister of International Development of Norway, said it was absurd that “the very people who go hungry are food producers”, adding that “now, with increasing cost of inputs, it will get worse.”
Cyber resilience delivering through disruption (IMF)
Cyber incidents could come with great uncertainty and complexity. Perpetrators and their motivations are often obscure. Cyber operations could involve commercial, government, or military targets. Recent incidents demonstrate the ability of computer hackers to cripple a country’s critical infrastructure. Electricity, water, telecommunications, and transportation are among these essential infrastructures—those that help a society and economy function. Third-party service providers that are part of the complex supply chains could also be disrupted.
The financial sector continues to be a target of choice for criminal gangs and other types of attackers. For the financial sector, critical infrastructure includes systems for clearing, settling, or recording payments, securities, derivatives, or other financial transactions. Given their systemic importance in most jurisdictions, their operations and cyber resilience are subject to a high degree of oversight to ensure their safety and efficiency. Preparedness is key across the different types of cyber-attacks—phishing, supply chain attacks, or ransomware, for example—that could unfold because of geopolitical conflicts.
Related News
tralac Daily News
South Africa: Renewables industrialisation plan to be aligned to expected surge in private projects
The newly appointed facilitator of the South African Renewable Energy Masterplan (SAREM) expects a draft document to be completed by mid-2023 and for the final masterplan to be negotiated before year-end. Gaylor Montmasson-Clair has also indicated that the industrialisation plan will be adjusted to the emerging reality that private rather than public procurement is likely to underpin a significant portion of future demand. Appointed SAREM facilitator by Mineral Resources and Energy Minister Gwede Mantashe in December, Montmasson-Clair tells Engineering News that significant progress has already been made in researching specific industrialisation opportunities linked to South Africa’s public procurement of renewable energy and storage.
That document sets an aspirational target to progressively localise 70% of the components used in solar photovoltaic and wind projects procured under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) by 2030, as well as a goal of localising 90% of the balance of plant by that same date.
Kenya and South Africa are working to address trade barriers: where to start (The Conversation)
Trade volumes between Kenya and South Africa have always been minimal compared to each country’s engagement with its other major trading partners. But in recent years, leaders of the two countries have been taking steps to stimulate trade. South Africa’s President Cyril Ramaphosa was on the same mission late last year when he addressed the Kenya-SA Business Forum in Nairobi.
What are the major imports and exports between South Africa and Kenya? Paul Odhiambo: Kenya’s exports to South Africa (in 2020) included gold, soda ash and cut flowers. In 25 years, the exports of Kenya to South Africa increased at an annualised rate of 0.49%, from US$30.7 million in 1995 to US$34.6 million in 2020. Kenya also unveiled its plans to start exporting meat to South Africa from December 2022. South Africa exported US$513 million to Kenya in 2020. The main products exported from South Africa to Kenya were coal briquettes, delivery trucks and semi-finished iron. Over the last 25 years, South Africa’s exports to Kenya increased at an annualised rate of 2.94%, from US$249 million in 1995 to US$513 million in 2020. The two countries have rarely traded in services with each other.
Vietnam – South Africa trade hoped to take strides: Ambassador (VietnamPlus)
Trade between Vietnam and South Africa is expected to further expand on the basis of the current solid foundation, Vietnamese Ambassador to the country Hoang Van Loi has said. In an interview granted to the Vietnam News Agency, the diplomat said Vietnam is likely to boost its export of farm produce, ceramics, furniture, and consumer goods, and it will import fresh fruits, coal, minerals, and chemicals from the African nation.
He noted that Vietnamese enterprises are exploring opportunities to not only import goods from South Africa but also take into account the possibility of investment in production and taking advantage of raw materials and preferential tax policies for producing export goods. Two-way trade between Vietnam and South Africa in 2022 hit 1.3 billion USD. Loi said that there is an ample room for Vietnam and South Africa to further strengthen economic, trade and investment cooperation.
Kenya risks sugar crisis on shortage in global market (Business Daily)
Kenya might fail to secure stocks of sugar at the international market even with the opening of duty-free imports owing to high prevailing global prices and a shortage of the commodity world over, a move that will keep the cost high on the shelves. Sugar Directorate head Willis Audi says the cost of sugar in the global market remains high and this may hinder imports. The government opened an import window in December that would see traders ship in 100,000 tonnes of sugar outside of the Common Market for Eastern and Southern Africa (Comesa) region to curb an imminent shortage that has pushed up its cost.
“We are not sure if there is that sugar in the market and if it is there, the prices might be higher and this may impact imports,” he said. Last year, traders struggled to ship in the quota Kenya had been allocated by the Comesa, bringing in 115,000 tonnes against the required 180,000 tonnes by the end of last November.
Non–oil Exports Rose to $4.8bn in 2022 (Voice of Nigeria)
Nigeria’s non-oil exports grew by 39.91 percent in 2022 to $4.820 billion, the Nigerian Export Promotion Council NEPC revealed on Friday. Semi-processed/manufactured products made up 36.61 percent of the exports beating Agriculture’s 30.12 percent volume of non-oil exports, while precious stones made up 17.06 percent, and others 13.21 percent.
This was revealed by the Executive Director/CEO of the Nigerian Export Promotion Council, Ezra Yukusak, during the presentation of the non-oil export performance for the year 2022 in Abuja. According to the NEPC boss, figures were retrieved from various Pre-shipment inspection agents appointed by the Federal Government under the Pre-shipment Inspection Act, of 2004.
Yakusak noted that the country’s non-oil export record for 2022 reached its highest since the establishment of the NEPC 47 years ago, acknowledging export intervention programmes by the NEPC over the years. He said, “About 214 different products ranging from manufactured, semi-processed, solid minerals to raw agricultural products were exported in 2022.
AfCFTA to boost Nigerian exports by 15% – Buhari (Nairametrics)
The African Continental Free Trade Agreement (AfCFTA) will increase Nigeria’s exports by more than 15 percent in fishery, textile, leather, wood and papers, metals, electronics, vehicles and transport equipment. African leaders must also build the requisite infrastructure and also actively promote productive employment and a decent workplace, to explore the benefits of the African Continental Free Trade Agreement (AfCFTA).
This was disclosed by Nigeria’s President Muhammadu Buhari at the ninth African Shippers’ Day with the theme: “African Continental Free Trade Agreement: A Veritable Platform for African Shippers’ to Mainstream into Global Trade,” on Monday in Lagos.
Poor quality agric export rejection costs Nigeria $700m (The Niche)
Nigeria has suffered $700 million loss over rejection of agricultural produce export to Europe alone, according to African Export-Import Bank (Afrixembank) Board of Trustees (BoT) Chairman Benedict Oramah. But he disclosed at the commissioning of the Africa Quality Assurance Centre (AQAC) in Sagamu, Ogun State that Afrixembank is addressing the problem. “Due to poor quality over $700 million worth of agro-produce are rejected from Europe alone. “About 76 per cent of exports from Africa are rejected annually. We are working with a lot of organisations to create the framework for the harmonisation of standards across the continent,” he disclosed.
A new era for global business and investment in Africa (WEF)
The Africa Continental Free Trade Area (AfCFTA) was established in 2018 to provide opportunities for the world to benefit from the continent’s economies and businesses.
A new report from the World Economic Forum, AfCFTA Secretariat and Forum partners provides tools and strategies for leveraging the new trade area’s opportunities. Four sectors – the automotive industry, agriculture and agro-processing, pharmaceuticals, and transportation and logistics – were analyzed in the report as they are expected to accelerate in production and trade volumes under the AfCFTA.
Africa’s free trade on track, more efforts needed (Africa Renewal)
It’s the second year of business on Africa’s biggest trading platform – the African Continental Free Trade Area (AfCFTA) - and it isn’t going to be business as usual in the continent’s single biggest trading bloc. Expectations are high and a new push by African ministers may have just provided the AfCFTA with the much-need impetus. It’s also expected to top the agenda at the African Union Heads of State and Government Summit in Addis Ababa, Ethiopia, early this year. Critically, the new year provides an opportunity to reflect on the journey so far, and also look ahead.
So far eight countries—Cameroon, Egypt, Ghana, Kenya, Mauritius, Rwanda, Tanzania and Tunisia—are already participating in the AfCFTA’s Guided Trade Initiative (GTI), representing five regions across the continent.
The AfCFTA, an opportunity for Africa’s youth to accelerate trade and industrialization (UNECA)
The African Continental Free Trade Area (AfCFTA) is an opportunity for young people to accelerate Africa’s industrialization and economic transformation through entrepreneurship, youths say, calling for an enabling policy framework. Through its Youth Protocol, the AfCFTA recognises that young people can play a critical role in the achievement of the free trade zone by initiating youth-led initiatives in agriculture, financial technology, IT and in the creative industry.
AfCFTA: Buhari urges Africa to diversify boost trade (SUN)
President Muhammadu Buhari has urged African countries to expand and diversify their participation in international trade to explore the benefits of the African Continental Free Trade Agreement (AfCFTA). Buhari made the call at the ninth African Shippers’ Day with the theme: “African Continental Free Trade Agreement: A Veritable Platform for African Shippers’ to Mainstream into Global Trade,” on Monday in Lagos. Buhari said that the participation of African countries in international trade would create wealth, generate employment and reduce poverty.
The turning point for Africa’s air cargo (Logistics Update Africa)
Africa closed out 2022 with remarkable achievements in driving air transport liberalisation, harmonisation of air services agreements and harmonisation of air transport economic regulation. This unprecedented turn-of-events has raised strong hopes across the continent and viewed as a prelude to more outstanding achievements in air transport liberalisation and aviation development in 2023.Africa has in recent years sought to establish a workable and updated framework to actualise unfettered air transport market access within Africa for African airlines, and for the benefit of Africa’s economy.
Liberalisation in Africa had continually stalled since the concept was established by Africa’s top political leaders as a Declaration in 1988, which was firmed up as the Yamoussoukro Decision (YD) in 1999. Africa has painstakingly rejigged the YD liberalisation framework under a new implementation mechanism called the Single African Air Transport Market (SAATM) which was launched by the African Union (AU) in January 2018 in Addis Ababa. Towards the end of 2022, the SAATM, with the approval of the AU, was fitted out with updated and improved vital instruments including the dispute settlement mechanism and competition rules which were previously lacking in the YD and largely caused stagnation of the YD. With this, Africa is set to implement its liberalisation under the SAATM.
African eLogistics Platforms Improve Fragmented Supply Chains for B2B Firms (PYMNTS.com)
Africa’s e-Logistics platforms are expanding across the continent looking to streamline cross-border supply chains. In a region of 17 landlocked countries embedded in long and often complex supply chains, the continent faces a number of unique logistical challenges. Companies like Ghanaian startup Jetstream, which announced Tuesday (Jan. 10) that it secured $13 million in a pre-Series A funding round, are looking to tackle those inefficiencies by digitizing African logistics networks and connecting importers, exporters and freight companies.
In addition to the more pure-play logistics startups that have arisen in recent years, fully integrated end-to-end supply chain platforms are also proving popular. B2B marketplaces have developed digital solutions that take much of the hassle out of juggling multiple suppliers and distributors by creating Amazon-style eCommerce and delivery platforms for businesses.
Instead of businesses having to shop around with multiple suppliers and having to stay on top of their various delivery partners, the new generation of B2B eCommerce platforms are simplifying procurement processes for African companies while looking to add value with the addition of payment and credit services.
A PYMNTS study, “New Payments Options: Why Consumers Are Trying Digital Wallets” finds that 52% of US consumers tried out a new payment method in 2022, with many choosing to give digital wallets a try for the first time.
African trade encouraged by improved 2023 country risk outlooks (Trade Finance Global)
PANGEA-RISK CEO Robert Besseling anticipates some positive risk trends in Africa in 2023. Indeed, African economies will exceed global growth averages on the back of resilient commodity prices. Distressed debt will be treated to avoid chaotic default scenarios, while more foreign investment will return as diverse investors seek higher yield. Moreover, maturing democratic systems ensure that socio-economic grievances will increasingly be aired in the political arena, i.e., at elections, rather than on the street.
EAC to set up regional central bank this year (The East African)
A decision to set up the East African Monetary Institute — the Central Bank of East Africa — will be made this year, a key establishment required in implementing a single currency regime. East African Community (EAC) Secretary-General Dr Peter Mathuki said the Council of Ministers is expected to plan on the location of the EAMI this year. Over the recent past, member states have been jostling to host the EAMI, each angling to avail themselves of the massive potential to attract foreign capital and become the region’s financial hub.
“The EAMI will be in place this year in what will allow us to harmonize member states’ fiscal and monetary policies, then in about three years we will have a common currency in place,” he told journalists last week. The single currency will ease business and movement of persons within the region, which would achieve the bloc’s goal of becoming as envisioned in the Common Market Protocol.
EAC startups raised $1.2 billion in 2022 – Report (Garowe Online)
The startups within the Eastern African region raised $1.2 billion in 2022. This is a 115 percent increase compared to 2021 when startups raised $600 million. Current data from The Big Deal reveals that this is a huge milestone as the region reached the $1 billion mark for the first time resulting in its revenue share for continental funding more than doubling from 12 percent in 2021 to 26 percent in 2022.
Kenya occupied the second position in the continent as start-ups raised a record $1 billion from international investors in 2022. Nigeria retained position one with $1.1 billion (Sh148.1 billion) while Egypt came in third place with $818 million ($101.2 million) and South Africa $548 million (Sh62.9 billion).
Africa Carbon Markets Initiative builds on momentum from COP27 (New Business Ethiopia)
Today, the Africa Carbon Markets Initiative (ACMI) announced 13 action programs. Steering committee members, made up of African leaders, CEOs, and carbon credit experts, met at Abu Dhabi Sustainability Week to build on early momentum and set out further ambitions.
ACMI was inaugurated in November 2022 at COP27 with a bold, long term-ambition for the continent – to reach 300 million credits retired annually by 2030. This level of ambition would unlock $6 billion in income and support 30 million jobs. By 2050, ACMI is targeting over 1.5 billion credits annually in Africa, leveraging over $120 billion and supporting over 110 million jobs.
Vaccine manufacturing in Africa — strategies to achieve the 2040 vision (Businessday)
The Africa Centres for Disease Control and Prevention (Africa CDC) has set an ambitious target to manufacture 60% of Africa’s routine vaccine needs by 2040. The African Union and Africa CDC therefore launched Partnerships for African Vaccine Manufacturing (PAVM), planning an investment of $1.3Bn to develop the vaccine industry on the continent. Considering this, concerted efforts are being made by the Africa CDC to translate this ambitious 2040 goal into a strategic roadmap with workable solutions for the development of vaccine manufacturing in Africa.
In recent years, the impact of Covid-19 and Africa-specific outbreaks have resulted in increasing conversations among African and global public health leaders on the need for Africa to become self-reliant by providing its own vaccine supplies. Other factors have also contributed to this sense of urgency. One factor is the strong rise in demand for vaccines, as the African population continues to grow rapidly despite persisting gaps in immunisation coverage.
New technologies have led to a growing economics in support of local vaccine manufacturing. In the last few years, fast pace technology innovations, such as small scale disposable technologies, high-density bioreactors, and innovation in fill-and-finish, seen at every step of the bio-manufacturing workflow, are reducing vaccine production costs. Another critical factor is the deepening political and regulatory support. The last few years have seen an increase in political commitments in steering the local vaccine manufacturing agenda. Continental initiatives, such as AfCFTA and integration of vaccine markets across the continent, are improving.
6 steps to expanding health product manufacturing in Africa (WEF)
From the onset of the COVID-19 pandemic, Africa has remained among the last in line to access necessary medical supplies and tools — from personal protective equipment and diagnostics to treatments and vaccines.
Limited local manufacturing means that many countries were, and continue to be, reliant on imports. These challenges are not new — the pandemic merely highlighted the continent’s long-standing, inequitable access to lifesaving medical products. Vaccination rates in Africa are still far too low.
As a result, concerted efforts are underway to strengthen Africa’s capacity to develop and produce health products that meet its needs. Several countries already have capabilities in vaccine and drug manufacturing and fill and finish capacity — the steps that follow production, such as filling syringes, labelling, packaging and quality inspection. But there remains a significant gap to close.
China is now the African continent’s largest trading partner, accounting for US$254 billion in 2021. It’s also the main country of origin for African manufacturing imports, providing 16% of Africa’s total in 2018. In most African countries the influx of Chinese products has become a major concern because of the implications for industrialisation. A flood of cheaper Chinese products could set back Africa’s infant or domestic industries. Domestic manufacturers that couldn’t compete would be forced to exit the market and would not create jobs. There are serious implications for the continent’s economic development, because industrialisation is widely seen as critical to improving living standards. There are also concerns about the impact Chinese manufactured exports are having on wages in importing countries.
The present session that opens now will remain marked by the issues of the day that continue to considerably impact the Continent, among which are the COVID-19 pandemic, the conflict between Russia and Ukraine and its impacts on multilateralism and food security.
The completion of the Institutional Reform of our Union must further engage our attention. The adoption, through you, of the First phase of the Transition Plan and the Financing Strategy of the new Departmental Structure of the Commission made it possible to provide the Commission with a managerial team selected according to the new evaluation rules established by the Executive Council.
In view of the Institutional Reform, we should take note of the establishment of our new structures, in particular the African Medicines Agency (AMA) which supplements the architecture of health systems on the Continent. Added to this is the African Humanitarian Agency, whose full operationalisation will respond to the numerous needs provoked by all manner of natural disasters and the multiple ongoing conflicts on the Continent.
Africa seeks bigger US trade slice for Agoa to make sense (The East African)
African countries may need more trade privileges with the US even as Washington reviews the African Growth and Opportunity Act (Agoa) meant to expand what the continent will export. At the end of the US-Africa summit in December, Washington pledged to renew Agoa, bringing clarity to uncertainties that had befell exporters from countries such as Kenya.
But now experts say the narrow view of Agoa should be expanded to allow them to export more goods and hence benefit more countries that are able to make a diversified list of goods.”Agoa has to be expanded in two ways; expanded in its product coverage and in terms of country coverage,” said Melaku Desta, Coordinator of the African Trade Policy Centre, UN Economic Commission for Africa.
It offers almost 6,500 products duty-free access to US markets. Many of these exporters are small and medium enterprises, enterprises that can grow by leveraging Agoa to their benefit. As of December 31, 2022, only 36 sub-Saharan Africa countries are eligible for the Agoa.
US delists Burkina Faso from its Africa trade preference program (The North Africa Post)
The United States has dropped Burkina Faso from its trade preference program citing deep concerns over “unconstitutional change” in government in the West African country, according to a statement by the office of the US Trade Representative (USTR). The USTR’s office said Burkina Faso had failed to meet the requirements of the African Growth and Opportunity Act (AGOA) statute and would be given “clear benchmarks” for a pathway towards reinstatement to the trade program, adding that Washington would work with Ouagadougou.
The United States had halted nearly $160 million in US aid to Burkina Faso after determining the ouster of President Roch Kabore in January 2022 constituted a military coup, triggering aid restrictions under US law.
The Making of an African-European Energy Trade Route (The Maritime Executive)
In the past year, there has been a significant shift in European energy policy triggered by Russia’s war in Ukraine. With Europe moving swiftly to reduce dependency on Russian gas imports, finding new sources has been imperative. Indeed, with European and US sanctions on Russian exports, a new energy era is in the offing. As the Western world implements its new oil cap policy on Russian crude, 2023 heralds a partitioned global oil market.
Traditionally, oil and gas has freely flowed around the world, guided by the usual market forces of supply and demand. However, there is now an apparent division between the East and the West in energy supply. Russia is now directing most of its energy to India and China. On the other hand, the U.S, the Middle East and some shipments from Africa are helping to plug the energy gap in Europe.
In an interview with the Financial Times last week, Eni CEO Claudio Descalzi said the EU should look to Africa as a new source for its energy. Descalzi believes that a Europe-Africa collaboration on energy matters offers a better option or replacing Russian imports than the U.S market.
“Africa offers potential for a new south-north axis connecting the continent’s abundant renewable energy and fossil fuel sources with the energy-hungry markets of Europe. We don’t have the energy, they have the energy…There is a strong complementarity,” commented Descalzi. Reflecting this shift, Eni has intensified its focus on African energy resources over the past year. When the Italian government sought to replace over 20 billion cubic meters of gas it previously imported from Russia, Eni quickly looked to its African partners for extra deals.
Trade partners see red over Europe’s green agenda (POLITICO)
The EU’s green ambitions are, for its trading partners, turning into a case of the road to hell being paved with good intentions.
Developing nations, especially, worry that Brussels is throwing up trade barriers in its pursuit of climate neutrality and sustainable food production. To them, it looks like all the EU can export is rules that will hold back their own economic progress.
The EU’s ambitions to become climate neutral by 2050 — its so-called Green Deal — herald a huge economic transformation for the world’s largest trading bloc. Now that the Green Deal is being translated into actual legislation, developing nations are waking up with a hangover of its effects.
The EU’s carbon border levy is the latest, and most symbolic, measure to upset the EU’s trade partners. The idea is that producers importing carbon-intensive products into the bloc will have to buy permits to account for the difference between their domestic carbon price and the price paid by EU producers.
Global trade faces a stagnant decade lagging the world economy (Moneyweb)
International trade will grow more slowly than the global economy over most of the next decade as the war in Ukraine reshapes strategic alliances and alters the flow of cross-border commerce, a new report says. World trade’s annual expansion rate will average 2.3% through 2031, compared with an increase in global gross domestic product of 2.5% on average each year over the same period, according to forecasts from Boston Consulting Group. Trade largely tracked the growth rate of world GDP during the decade preceding the pandemic. So the report predicts the worst stretch of stagnant globalisation since the World Trade Organisation was established more than a quarter century ago. “After nearly 30 years of a comparatively secure trade environment, we are in the midst of a new East versus West dynamic, with a US- and EU-led community and a China-Russia counterpart, along with the potential emergence of a third grouping of non-aligned nations,” said Nikolaus Lang, a BCG managing director and a co-author of the report.
Here’s how to stimulate and sustain supply chain resilience (WEF)
Businesses looking to optimize their global value chains have always had to find a way to circumvent trade tensions and bottlenecks. Most recently, there has been a shift towards reshoring operations to increase resilience while decreasing transport costs to meet the growing demand for locally-made products and faster delivery times. But public and private entities would be mistaken in believing that trade will find a way to flow. As our research with Economist Impact shows, more than half of the cargo owners say tightening monetary policy due to rising inflation will make imports and exports contract in 2023.
The global cargo community is all set to converge at air cargo Africa 2023 (Engineering News)
The continent of Africa offers limitless opportunities for trade and commerce due to rapid economic growth, rising middle class population, and expanding domestic demand. Against this backdrop, Messe Muenchen India brings the sixth edition of air cargo Africa, a leading trade fair for the global air cargo community. This platform provides the international air cargo industry with an opportunity to explore and strengthen business connections in the African continent through knowledge-rich conferences, discussion forums, and an exciting awards night.
In keeping with the latest challenges in the sector as well as existing opportunities, this edition of air cargo Africa will focus on increasing digitalisation of cargo operations, emerging technologies in logistics operations, track-and-trace solutions for a wide range of products, regulatory and policy-level discussions to improve cross border trade, and many other topics. This year the theme of air cargo Africa 2023 is ‘Move and deliver fast and fresh, better and bigger – Africa is ready’. The STAT Times Awards night on 22 February 2023 will felicitate industry leaders who have outperformed against all odds.
Review of Maritime Transport 2022: Navigating stormy waters (UNCTAD)
COVID-19, the war in Ukraine, climate change and geopolitics have wreaked havoc on maritime transport and logistics, clogging some ports and closing others, reconfiguring routes, extending delays and pushing up shipping costs.
Ships deliver over 80% of world trade, so disruptions in ports and on shipping lanes mean food, energy, medicine and other essential items don’t reach those in need. Businesses are left without supplies. And prices for producers and consumers soar. Although delays have improved and dry cargo rates are coming down, maritime transport – and thus world trade – remains vulnerable. The industry must invest now to shore up its resilience to future crises and climate change.
UN highlights need for enabling legal environment for FTAs (The Manila Times)
The United Nations said that there is a strong need for developing countries to create an enabling legal environment for electronic transactions, as digital trade and cross-border e-commerce become increasingly crucial components in trade deals, according to a legal expert. “E-commerce is increasingly being recognized and promoted in global and regional free trade agreements (FTAs) through provisions for adopting an enabling environment,” Secretariat of the United Nations Commission on International Trade Law (Uncitral) legal officer Luca Castellani explained in his presentation on “Uncitral legal instruments for e-commerce and paperless trade.”
“An enabling legal environment for digital trade can be established through adopting treaties and harmonizing national laws based on uniform legal standards,” Castellani pointed out. “These uniform legal standards may have global coverage, such as the Uncitral legislative texts, or regional, such as the APEC (Asia-Pacific Economic Cooperation) Data Privacy Pathfinder and APEC Cross Border Privacy Rules.”
A Missing Middle or too much Informality? (World Bank Blogs) (World Bank Blogs)
In the quest to identify plausible explanations for the gap in total factor productivity (TFP) between advanced and developing economies, recent studies have focused on cross-country differences in the size distribution of firms
A rooted conjecture is that the size distribution of firms in developing countries exhibits a missing middle, reflecting market frictions and policy distortions that discourage production at an intermediate scale. However, the literature evaluating this hypothesis has not been conclusive.
We argue that the missing middle is an elusive concept. A binary existence statement arguably obscures the relevance of the matter. In that sense, we take a step back from the controversy and uncover three key findings. First, we find evidence of missing middle in the distribution of employment shares. Second, the preponderance of informal firms is the main driver of the missing middle. Third, the missing middle does not arise at entry.
Low-carbon product demand presents opportunities for early-movers (Engineering News)
Many low-carbon products will likely be in short supply over the next decade, warns a new report from global body the World Economic Forum (WEF) and management consulting company Boston Consulting Group (BCG). “This decade presents the opportunity to see a massive scale-up of climate solutions and the creation of large markets for low-carbon materials, products and services,” says WEF head of climate change Antonia Gawel.
Heading BRICS Is an Opportunity and a Risk for South Africa (Bloomberg)
South Africa’s chairmanship of the BRICS club of nations has come at an opportune time. There’s fierce competition between the world’s powers for influence on the continent.
Already the country has set out its stall. The ruling African National Congress wants the group to be expanded and relations between the BRICS nations and the African Continental Free Trade Area member states strengthened. President Cyril Ramaphosa said this week that other African nations will be invited to the summit he will host this year.
‘SA should advance agri trade as Brics chair’ (Food for Mzansi)
With South Africa now in the driving seat of the Brics grouping of nations, the nation’s farming hotshots are hopeful that this also presents an opportunity to advance agricultural trade. This, after President Cyril Ramaphosa yesterday said that South Africa will use its role as the 2023 chair to advance the interest of Africa as a whole. Other African nations will be also invited to the Brics summit in South Africa later this year.
Agbiz chief economist Wandile Sihlobo told Food For Mzansi that as the Brics chair, South Africa has an ideal opportunity to influence the agenda and advance the agricultural trade interests of the country. “China and India are some of the key markets South Africa is interested in. They are growing economies, with large populations. We will be pushing our fruits, beef, and wine interests in these markets. “South Africa’s agriculture sector is export-oriented. We already export half of what we produce in value terms. So, as we push expansion in production domestically, we will be pushing our export interests in platforms such as Brics,” he said.
The price of food has increased everywhere, reaching historic levels in 2022, as stated by the Global Crisis Response Group. This is a challenge for food security globally, but particularly for net food-importing developing countries. And unlike in previous food crises, they now face a double burden. They not only pay higher prices for the food they import, but the price increase is exacerbated by the depreciation of their currency vis-à-vis the US dollar. This erodes the fiscal space that many developing countries need to face the concomitant challenges of recovering from the COVID-19 pandemic, the cost-of-living crisis, and the climate emergency.
World Bank: Recognizing and tackling a global food crisis
A combination of factors—including greater poverty and supply chain disruptions in the wake of the COVID-19 pandemic, the war in Ukraine, rising inflation, and high commodity prices—has increased food and nutrition insecurity. Urgent action is needed across governments and multilateral partners to avert a severe and prolonged food crisis.
For most countries, domestic food prices have risen sharply in 2022, compromising access to food—particularly for low-income households, who spend the majority of their incomes on food and are especially vulnerable to food price increases. Higher food inflation followed a sharp spike in global food commodity prices, exacerbated by the war in Ukraine. At the same time, food availability is declining. For the first time in a decade, global cereal production will fall in 2022 relative to 2021. More countries are relying on existing food stocks and reserves to fill the gap, raising the risk if the current crisis persists. And rising energy and fertilizer prices—key inputs to produce food—threaten production for the next season, especially in net fertilizer-importing countries and regions like East Africa.
Globally, food security is under threat beyond just the immediate crisis. Growing public debt burdens, currency depreciation, higher inflation, increasing interest rates, and the rising risk of a global recession may compound access to and availability of food, especially for importing countries. At the same time, the agricultural food sector is both vulnerable and a contributor to climate change, responsible for one-third of global greenhouse gas emissions. And agricultural productivity growth is not staying ahead of the impacts of climate change, contributing to more food-related shocks. For example, an unprecedented multi-season drought has worsened food insecurity in the Horn of Africa, with Somalia on the verge of famine.
Transforming agrifood systems requires changing policies, mindsets, and business models (FAO)
The UN Food Systems Coordination Hub (the Hub) convened today a virtual dialogue between the Food Systems National Conveners and the Director-General of the Food and Agriculture Organization of the United Nations (FAO), QU Dongyu. Attended by over 200 participants, the dialogue welcomed Ministers for Agriculture and high-level national officials. “We can turn the tide through the transformation to more efficient, more inclusive, more resilient, and more sustainable agrifood systems,” Qu told representatives from around 100 countries.
The officials came together to share their efforts and ideas in planning and implementing their national pathways for agrifood systems transformation to reduce hunger, poverty, and food loss and waste, protect biodiversity and tackle climate change.
“To achieve the ambitious, transformative changes required, we need to change policies, mindsets, and business models, and each of you must take the lead in this,” the FAO DG underscored.
Global flour trade to match recent low, IGC says (BakingBusiness.com)
With significantly lower import totals projected to occur in Africa and South America, the International Grains Council (IGC) forecasts global wheat flour trade in marketing year 2022-23 to match the recent low of 13.8 million tonnes (wheat equivalent) recorded in 2020-21 during the height of the COVID-19 pandemic. If realized, it would be 300,000 tonnes lower than the previous year and 200,000 below the IGC’s estimate in October.
“Amid difficult economic conditions and with elevated prices for wheat-based products seen hampering consumer demand, updated trade statistics showed slower-than-anticipated deliveries to (sub-Saharan Africa) through October-November last year, with downward adjustments incorporated for Angola, Benin, and Ghana,” the IGC said. At 1.8 million tonnes, projected aggregate deliveries to the region would be the lowest in at least 12 years, the IGC said.
The persisting regional gaps in gender equality (UNCTAD)
Over the years, developed economies have reinforced their leading position. But some developing countries have made significant progress on gender equality.
UNCTAD’s Inclusive Growth Index shows that, while economic and social inequalities between women and men persist everywhere, the gaps between countries and regions are wide. The index is a relative measure of gender equality taking the best performer, Iceland, as a reference. The position of regions relative to each other has not changed much in the last two decades, though developed economies as a group have reinforced their leading position.
Africa remains the least gender equal region. But the region’s average hides stark differences. Rwanda, Ethiopia and South Africa score above the median for all countries. A dozen developing countries have made significant progress, climbing more than 10 spots. Seven of them are in sub-Saharan Africa.
Related News
tralac Daily News
Economic growth facing challenges – Godongwana (SAnews)
Finance Minister Enoch Godongwana says international and local challenges continue to pose as obstacles in the growth of the economy. This as real Gross Domestic Product (GDP) grew by some 1.6% in the third quarter of 2022.
Speaking at the Pre-World Economic Forum (WEF) business breakfast held in Johannesburg on Thursday, the Minister said the impact of the COVID-19 pandemic on employment and investment continue to have an impact on growth and warned that the ongoing war between Russia and Ukraine could have a devastating impact.
“The theme [for the WEF meeting], Cooperation in a Fragmented World, captures the combination of economic, geo-political and social challenges that are facing the world. Our common challenges here at home are being compounded by all these risks.
“In the face of all of these challenges, this government has been clear that rebuilding investor confidence and mobilising investment, is among the chief priorities this government must achieve for growing our economy,” he said.
Trade Statistics for November 2022 | South African Revenue Service
Farming in South Africa: 6 things that need urgent attention in 2023 (Down to Earth Magazine)
SMEs key for Sudan’s ability to harness the AfCFTA (UNECA)
The Economic Commission for Africa office for North Africa and the Sudanese ministry of Trade launched on 18 December in Khartoum a four day, joint workshop on Export Promotion and Access to Finance for the benefit of 50 Sudanese SME owners, mostly women.
Sudanese exports, which consist mostly of primary commodities such as gold, oil seeds or cattle, are currently very low, below 3% of GDP in 2021. Most exports go to China and Gulf countries, and only less than 20% to Africa, with Egypt being the main export destination on the continent.
“In an enabling environment, SMEs have a high potential for creating employment and innovation. They can also contribute to reducing poverty and to empowering the poor so that they can realize their productive capacities and integration into society, said Zuzana Brixiova Schwidrowski, Director of the ECA office for North Africa. “It is imperative that the climate for SMEs start-ups and growth is enhanced considerably, with the assistance of the public sector and key players in the private sector, especially finance”, she added.
Since evidence from the rest of the continent shows that Intra-African exports tend to be less commodity focused and have more added value than exports outside the Continent, the AfCFTA is an opportunity for Sudan to boost value adding trade and diversify it, both in terms of commodities and trading partners, said Amal Elbeshbishi, economist at the ECA Office for North Africa. Increased SME contribution to trade and industry are of significant interest for Sudan. Government efforts to support SMEs growth and competitiveness are therefore critical, she added.
Algerian Economy: Staying the Course for Transition (World Bank)
Algeria’s economy continued to recover in the first half of 2022, led by a return of oil production to pre-pandemic levels and a continued recovery of the service sector along with a more vigorous agricultural activity. The recovery should continue into 2023, supported by the nonhydrocarbon sector and public expenditure growth, according to the latest edition of the World Bank’s Algeria Economic Update.
External balances recovered and continued to grow on the back of higher global hydrocarbon prices. After growing by an estimated 59% over the first six months of 2022 and peaking in June, the average price of Algerian hydrocarbon exports lost around 26% in Q3-2022. External balances were also buoyed by a notable rise in non-hydrocarbon exports. Algeria’s terms of trade also improved as the dinar appreciated relative to the U.S. dollar and the Euro.
The World Bank’s Economic Update projects Algeria’s economy to grow by 2.3 percent in 2023. Yet the macroeconomic outlook remains vulnerable to fluctuations in global hydrocarbon prices. In the medium to long term, the report says, the non-hydrocarbon private sector must become the motor for Algerian growth and diversification of the economy.
Continued implementation of government structural reform programs, creating greater openness to the private sector, improving the economy’s competitiveness, and strengthening investment in human capital are all essential to the flourishing and resilience of the Algerian economy.
EAC Secretary General Hon. (Dr.) Peter Mathuki attributed the increase in intra-regional trade to political goodwill among the members of the Summit of EAC Heads of State and the relaxation of Covid-19 restrictions in the region amongst other factors.
Intra-regional trade within the East African Community (EAC) is on an upward trajectory, standing at US$10.17 billion in September 2022. The intra-EAC trade, accounting for imports and exports in the 7 EAC Partner States, grew from 13% in 2019 at a value of $ 7.1 billion to 15 % in 2021 at a value of $9.5 billion. By September 2022, the EAC trade value was recorded at $10.17 billion representing a 20% share of Intra-trade to global trade.
Dr. Mathuki disclosed that EAC’s total trade with the rest of the world stood at US$62 billion, adding that there was still room for improvement.
He said that following the High-Level Summit on the Common Market Protocol held in July 2022, the EAC is reviewing the issues impeding integration, adding that the issues would be discussed in the next Council of Ministers. “257 NTBs have been cumulatively resolved since 2007. This is in tandem with the bloc’s goal to increase the volumes of intra-regional trade,” he said. Dr. Mathuki further said that EAC Ministers/ Cabinet Secretaries in charge of Trade and Finance had adopted 35% as the 4th Band of the EAC Common External Tariff (CET).
Senior Officials from SADC discuss Finance and Investment Protocol (SADC)
Senior Officials from the Southern African Development Community (SADC) attended a workshop to consider the outcome of the assessment of the implementation and relevance of the SADC Protocol on Finance and Investment in light of new demands of industrialisation and deeper regional integration, in Johannesburg, South Africa, from 21st to 22nd November 2022.
The SADC Protocol on Finance and Investment seeks to foster harmonisation of the financial and investment policies of the State Parties in order to make them consistent with objectives of SADC and ensure that any changes to financial and investment policies in one State Party do not necessitate undesirable adjustments in other State Parties. Among others, this outlines SADC policy on investment, requiring Member States to enact strategies to attract investors and facilitate entrepreneurship among their populations. Member States are encouraged to implement legislation that creates a favourable environment for investment, such as tax incentives that ease financial burdens for private firms seeking to invest in the Region.
The workshop deliberated on the presentation made by the consultant concerning the consolidated regional report on the assessment of the implementation of the SADC Protocol on Finance and Investment. The presentation underscored that the evolving context within which the Protocol is being implemented is important for its future orientation; the Protocol itself has undertaken various shifts which have shaped its orientation; and that regional structures implementing the Protocol have been highly supportive. A number of recommendations were provided for enhancing implementation of each Annex.
Over 1,282 Regional Customs Transit Bonds, amounting to US$1billion have been executed in the Northern and Central transport corridors in 2022 alone signifying a reduction in cost of transit and transport of goods by between 15 and 20 percent. The two Corridors link Kenya, Uganda, Rwanda, Burundi, Tanzania and DR Congo which are part of 13 countries that have joined the COMESA Regional Transit Guarantee (RCTG) Scheme. Other countries in the scheme are Djibouti, Ethiopia, Madagascar, Malawi, South Sudan, Sudan and Zimbabwe.
The RCTG, also known as Carnet, is a Customs transit regime designed to facilitate the movement of goods under Customs Seals in the region. It provides a uniform basis for transit movement through the region, where only one guarantee is used to cover goods in transit throughout all transiting countries. Currently, it is fully operational in Burundi, Kenya, Rwanda, Tanzania and Uganda.
Currently, 1,077 Clearing and Forwarding Agents and Sureties are participating in the scheme with over 80% of them being small and medium-sized businesses. Fifty-one insurance companies are participating while the Premium collected as of 31 December 2021 amounted to US$833,530.
Connecting the free movement of goods and services and the free movement of persons is essential to harness the benefits of intra-African trade and economic integration. But while many African countries have ratified or signed the African Continental Free Trade Area (AfCFTA) agreement, the AU’s free movement protocol (AU-FMP) has not received as much attention.
This briefing note analyses the links between the AfCFTA and AU-FMP and the free movement protocol’s role in facilitating labour mobility, with a view to enhancing intra-African trade and economic integration. It provides insights on the mobility-related challenges and opportunities that have been created by the AfCFTA, as well as recommendations on how to strengthen the implementation of labour mobility-related aspects of the AU-FMP and the AfCFTA.
African Export-Import Bank (Afreximbank) on 15 December 2022 in Cairo operationally launched the Afreximbank TRADAR Club, a prestigious member-driven network aimed at empowering international businesses and executives to transform trade and investments in Africa through trusted trade intelligence and advisory services. According to Afreximbank, TRADAR Club will deliver innovative digital tools and networking opportunities, helping members to discover new markets; grow their business; save time; access dedicated expert support; post and respond to new business opportunities; network; meet business/trading partners; and more.
Afreximbank described TRADAR Club as the primary gateway through which exporters, importers and investors will access curated trade intelligence and advisory services to support their market expansion decisions and network with other businesses.
The operational launch event featured a high-level panel discussion on ‘Why better African trade data is needed to deliver enhanced decision making and growth for businesses.’
The African Development Bank Group has formally introduced its new initiative that will join hands with the African Union to boost Africa’s capacity to produce drugs, vaccines, diagnostics, and therapeutics all along the value chain, to help build its pharmaceutical sector.
The African Pharmaceutical Technology Foundation (APTF) was the focus of a forum hosted by the African Development Bank under the theme: “Technology Access for Pharmaceutical Manufacturing: The African Pharmaceutical Technology Foundation.” The event was part of the 2nd International Conference on Public Health in Africa in Kigali, Rwanda, on 14 December.
According to the African Development Bank, the continent imports more than 70% of the medicines it needs at the cost of $14 billion annually. Changing the game to enable African countries develop their capacity to manufacture pharmaceutical products has public health, strategic and economic rationales.
Independent Oil and Gas Companies Are Here to Stay (TankTerminals)
In late 2019, Africa Oil Corp president and CEO Keith Hill told Petroleum Economist that, given Africa’s unproven oil and gas basins, the continent was probably ‘the greatest frontier’, with outstanding opportunities for exploration, production and development companies, including independents
Three years later, the organisation is driving oil and gas exploration in the nation. It is part of a growing trend of independent oil and gas companies recognising the tremendous promise of the underexplored continent, finding ways to thrive, and making a positive impact.
As David Christianson so eloquently put it in a recent blog for Trade Law Centre (tralac), a South Africa-based think tank, “Africa’s gas future is floating offshore”. Floating liquified natural gas (FLNG) units are an ideal way to capitalise on Africa’s abundant natural gas resources. They can be deployed rapidly and more affordably than onshore LNG trains, creating a practical pathway to gas monetisation. London-headquartered independent, Perenco, which has operated in Cameroon for nearly 30 years, is capitalising on these opportunities.
A Year of Opportunity for Africa | by Landry Signé - Project Syndicate
Afreximbank and U.S EXIM sign a US$500 million MOU - African Export-Import Bank (Afreximbank)
African Export-Import Bank (Afreximbank) has signed a Memorandum of Understanding (MoU) with the Export-Import Bank of the United States (U.S. EXIM) to enhance trade between Africa and the United States of America as well as expand commercial engagements of the African Diaspora community in the U.S. towards facilitating transactions critical to the
Exim President and Chair Reta Jo Lewis signed the agreement with the heads of the African Export-Import Bank, Africa Finance Corporation, and Africa50 at the three-day US-Africa Leaders Forum convened by the Biden Administration on 13 December 2022. During the event, African Development Bank Group Senior Director Chinelo Anohu, who heads the Africa Investment Forum, built on the momentum of the 2022 Africa Investment Forum Market Days – which drew $31 billion of investment interest – meeting with business leaders to explore further investment opportunities to close Africa’s infrastructure gap.
United States Seeks Enhanced Trade Ties with Africa (JD Supra)
The US-Africa Leaders Summit took place from December 13-15, 2022 in Washington DC, and featured top-level government-to-government talks, private sector engagements, and resulted in a number of trade-related outcomes pointing to enhanced trade and investment ties between the United States and African countries. While not explicitly addressed in the public portions of the meetings, China’s massive investment in African industrial and digital infrastructure provided pointed subtext to the United States’ economic overtures.
The private sector-focused segment of the Summit – the US-Africa Business Forum – was marked by announcements of new investments and initiatives totaling US $15.7 billion.
On December 14, USTR Tai signed a MOU with the AfCFTA Secretariat. The three-year MOU establishes an annual high-level engagement between the United States and the AfCFTA Secretariat, as well as regular meetings of technical working groups “to exchange information on best practices and have an open dialogue to enhance the relationship between the United States and the AfCFTA Secretariat, the AfCFTA member states, and related stakeholders.” The MOU states that areas of cooperation “may include” trade facilitation, digital trade, and regional value chain development.
The US-Africa Leaders Summit: Fostering a Closer Relationship with ... (International Banker)
Why U.S.-Africa Relations — and Africa — Matter More Now Than Ever (Inter Press Service)
DG Okonjo-Iweala: During these difficult times, the WTO “cannot afford to stand aside” (WTO)
In her capacity as chair of the Trade Negotiations Committee, the Director-General expressed disappointment with the lack of progress made since the 12th Ministerial Conference (MC12) in June, where members achieved breakthroughs on issues such as fisheries subsidies, WTO response to emergencies — including a waiver of certain requirements concerning compulsory licensing for COVID-19 vaccines, food security and WTO reform.
While MC12 remains a highlight of the year, “we’ve not done much serious negotiating in the past six months,” she told members. “We have a lot of ground to cover and will have to intensify our efforts when we return from the winter break”.
“During these difficult times of economic slowdown, food and energy crises, climate change, and persistent development challenges, the WTO cannot afford to stand aside,” she told members. “We must begin to lay the ground for concrete results before, at and beyond MC13.”
Food prices have hit record levels in 2022, creating challenges for food security worldwide, especially for people in the developing countries that import most of their food. An index published by the UN Food and Agriculture Organization (FAO) tracking the prices of the most traded food commodities remained at historically high levels in November (135.7 points) after reaching an all-time high in March (159.3 points).
Although the world has suffered food crises in the past, the current one, triggered by the COVID-19 pandemic and the war in Ukraine, is different, a new UNCTAD report says, because of a stronger US dollar. During past crises, the value of the US dollar fell as food prices climbed. Since the dollar is the main currency for international trade, its devaluation lowered the final price in local currency that people paid for imported food. This provided some relief.
The UNCTAD report says the combination of high food prices and a strong dollar is a “double burden” that many people in developing countries cannot bear, leaving them to face even harder choices to make ends meet – such as skipping meals or taking a child out of school. “For net food-importing developing countries, the international market is a lifeline,” the report says. “As it becomes more expensive to buy US dollars, it also becomes harder for these countries to prevent millions of people from going hungry.”
Global growth is slowing sharply in the face of elevated inflation, higher interest rates, reduced investment, and disruptions caused by Russia’s invasion of Ukraine, according to the World Bank’s latest Global Economic Prospects report.
Given fragile economic conditions, any new adverse development—such as higher-than-expected inflation, abrupt rises in interest rates to contain it, a resurgence of the COVID-19 pandemic, or escalating geopolitical tensions—could push the global economy into recession. This would mark the first time in more than 80 years that two global recessions have occurred within the same decade.
In Sub-Saharan Africa—which accounts for about 60% of the world’s extreme poor—growth in per capita income over 2023-24 is expected to average just 1.2%, a rate that could cause poverty rates to rise, not fall.
30 developing countries to watch in 2023 (Brookings)
Strong headwinds suggest that 2023 will be a difficult year for global economic development. Avoiding setbacks will be at least as important as making renewed progress. Developing countries will continue to face overlapping crises with little to no fiscal space for addressing them. In the short term, debt and humanitarian distress are pressing threats, while in the longer term, climate action and
UN chief calls for renewable energy ‘revolution’ for a brighter global future (UN News)
“Only renewables can safeguard our future, close the energy access gap, stabilize prices and ensure energy security,” he said in a video message to the 13th Session of the International Renewable Energy Agency (IRENA) Assembly, taking place this weekend in Abu Dhabi, United Arab Emirates.
The world is still addicted to fossil fuels and the goal of limiting global temperature rise to 1.5 degrees Celsius is fast slipping out of reach, the UN chief warned. “Under current policies, we are headed for 2.8 degrees of global warming by the end of the century. The consequences will be devastating. Several parts of our planet will be uninhabitable. And for many, this is a death sentence,” he said. Renewable energy sources currently account for about 30 per cent of global electricity.
His Five-point Energy Plan first calls for removing intellectual property barriers so that key renewable technologies, including energy storage, are treated as global public goods.
Confronting fragmentation where it matters most trade debt and climate action (IMF Blog)
WTO issues information note on steel decarbonatization standards, readies for March event (WTO)
The Secretariat’s information note titled “Decarbonization standards and the iron and steel sector: how can the WTO support greater coherence?” indicates that more than 20 different standards and initiatives exist to support steel decarbonization efforts or are under development. This may create uncertainty for producers, increase transaction costs, and risk trade frictions. Further work is needed to enhance the alignment of standards, including by finding areas for further convergence on specific measurement methodologies, definitions and performance thresholds for decarbonization, the note states. It is also crucial to ensure that developing countries’ perspectives and challenges are considered and addressed.
New commitments for domestic regulation of services move step closer to entry into force (WTO)
Improved schedules of services commitments under the WTO’s General Agreement on Trade in Services were submitted for certification by 59 participants(1) in the initiative, accounting for 87 per cent of world services trade. The WTO membership has 45 days to review the improved schedules. The remaining 10 participants will aim to start their respective certification procedures as soon as possible.
“The launch of certification procedures for such a large number of participants is a real success,” said Jaime Coghi Arias of Costa Rica, the coordinator of the initiative. “It moves us one step closer to giving legal effect to a set of disciplines that will increase transparency and predictability in the regulation of services trade and remove red tape for our business communities. This will in particular help micro, small and medium-sized enterprises and women entrepreneurs.”
The global economy is expected to slow further in the coming year as the massive and historic energy shock triggered by Russia’s war of aggression against Ukraine continues to spur inflationary pressures, sapping confidence and household purchasing power and increasing risks worldwide, according to the OECD’s latest Economic Outlook.
The Outlook highlights the unusually imbalanced and fragile prospects for the global economy over the next two years. The global economy is projected to grow well below the outcomes expected before the war – at a modest 3.1% this year, before slowing to 2.2% in 2023 and recovering moderately to a still sub-par 2.7% pace in 2024.
Related News
tralac Daily News
Local news
AfreximBank earmarks $100 million to tackle Nigeria’s export challenges (The Guardian Nigeria)
The African Export and Import Bank (Afreximbank), yesterday, announced plans to invest up to $100 million for the establishment of quality assurance centres in Nigeria.
Already, the bank has deployed $11 million for the completion of the first African Quality Assurance Centre in Ogun State. President and Chairman of the Board of Directors of Afreximbank, Prof. Benedict Oramah, who spoke at the unveiling of the facility, yesterday, said the state-of-the-art facility would offer testing, certification, inspection and training services covering agricultural products.
According to Oramah, the project will also support the transformation of the structure of Nigeria and African businesses, accelerating industrialisation and intra-regional trade, thereby boosting the nation’ s competitiveness and economic expansion in global market.
Burundi takes the lead in subsidising farmers (Food For Mzansi)
The Burundian government has thrown its support behind farmers by subsiding as much as 70% of farmers’ day-to-day operating costs. Burundi’s President Évariste Ndayishimiye has now called on Africa’s leaders to do the same, including South Africa.
Agriculture is the landlocked country’s main industry, and during the United States-Africa Leaders Summit, Ndayishimiye proudly shared how his administration is looking after the country’s food producers.
“With the stance that the government has taken, we have seen that 90% of [their] food production that the people of Burundi are consuming, is produced in Burundi. It is therefore important that government works together with farmers,” he said.
World Bank Says 80 Million Nigerians Risk Job Loss In 2030 (Economic Confidential)
The World Bank has disclosed that 80 million working-age Nigerians will not have a full-time job by 2030 if the nation doesn’t improve its employment rate.
According to the bank, most poverty in Nigeria is in-work poverty, and having any job does not guarantee a way out of poverty. It stated that employment in agriculture is far more prevalent among those that are poor.
The global bank stated that while Nigeria was one of the best growth performers globally in the 2000s, it failed to build institutions that could foster structural transformation and job creation. It said because of this the nation is struggling to keep pace with growth rates and transformation of its peers since the early 2010s with GDP per capita dropping from US$2,280 in 2010 to US$2,097 in 2020, and the number of Nigerians living below the poverty line rising from 68 million to about 80 million.
Report warns of negative impact on trade due to increase in immigration barriers (Monitor UG)
The African Development Bank has said increased immigration barriers are likely to derail Uganda’s trade ambitions within East Africa and Africa at large.
In data prepared by AfDB and African Union Commission it was noted that between 2021 and 2022, Uganda put more immigration restrictions, which do not correspond with its trade ambitions.
For instance, data collected between July and August indicated that Uganda’s immigration grade fell from 0.853 to 0.377 with only citizens from 20 African countries allowed to enter visa-free while 33 other African nationals were not permitted entry without a visa.
IFC to help Egypt's garment-textile chamber attract $50 mn FDI by 2026 (Fiber 2 Fashion)
The Readymade Garment and Textile Chamber of the Federation of Egyptian Industries (FEI) recently signed a cooperation protocol with the International Finance Corporation (IFC) to develop value chains in the technical and specialised textile industry in Egypt. IFC will help the chamber attract foreign direct investment to Egypt worth $50 million by 2026.
It will assist the chamber rehabilitate factories and provide them with the technology, technical expertise and training to master the sector.
Vocational training will be offered to raise skills of workers in these specialised fields, head of the chamber Mohamed Abdel-Salam said.
Egypt has joined BRICS’ de-dollarisation campaign (TFIGlobal)
It is widely known that how the United States uses its economic clout to achieve foreign policy goals. The world has seen the US often imposing sanctions on countries that don’t align with its interests. The dominant role of the petrodollar in the global economy also provides the opportunity to exert significant influence over other economies.
However, now more and more countries in the world are joining the “de-dollarisation” campaign. Major economies like India, China and the EU bloc are important players in this already. Now it looks like Africa too doesn’t want to be left behind. In a significant development Egypt has now joined the New Development Bank of BRICS.
Egypt has recently ratified its participation in the New Development Bank which was created by Brazil, Russia, India, China and South Africa (BRICS) in 2014. Thus, Egypt becomes the second African country to join the BRICS New Development Bank. With this BRICS’ de-dollarisation campaign gaining momentum. Some BRICS states have already switched to local currencies in order to reduce their dependence on the U.S. dollar and Euro. BRICS is working to develop its own financial infrastructure, including a joint payment network. In this backdrop, Egypt joining the BRICS bloc only further boosts the campaign.
African trade and integration
African businesses set for boom with AfCFTA — Prof. Oramah (Vanguard Nigeria)
The President and Chairman, the Board of Trustees, African Export–Import Bank, Afrixembank, Prof. Benedict Oramah, has said that African businesses are set for a major step-change as the African Continental Free Trade Agreement (AfCFTA) opens up new markets across the continent and the globe.
Speaking at the official commissioning of the Africa Quality Assurance Centre (AQAC) in Sagamu, Ogun State, yesterday, he said to make their mark in countries around the world, African products must meet international standards and that informed why they are working with a lot of organisations to create a framework for harmonisation of standards across the continent.
“The AQAC in Ogun State will help deliver the highest quality African goods, strengthening their competitiveness and providing confidence to buyers.
MSC Group completes acquisition of Bolloré Africa Logistics (Yahoo Finance)
GENEVA, Dec. 21, 2022 /CNW/ -- MSC Group is pleased to confirm that its wholly owned subsidiary SAS Shipping Agencies Services has completed the acquisition of Bolloré Africa Logistics. The transaction was approved by all applicable regulatory authorities.
MSC's acquisition of Bolloré Africa Logistics SAS and its affiliates ("Bolloré Africa Logistics Group") highlights the long-term commitment of MSC to invest in African supply chains and infrastructure, supporting the needs of clients of both businesses.
MSC reiterates that it will operate Bolloré Africa Logistics Group as an autonomous entity with its portfolio of diversified partners, under a new brand to be unveiled in 2023. Philippe Labonne will continue his longstanding role at the helm of the business as President of Bolloré Africa Logistics.
TDB agrees US$100mn trade finance facility with Export Trading Group (Global Trade Review)
The Eastern and Southern African Trade and Development Bank (TDB) has provided a US$100mn trade finance facility to commodity trader Agri Commodities and Finance in a bid to support smallholder farmers.
The borrower is a wholly owned United Arab Emirates-based subsidiary of agricultural supply chain manager Export Trading Group (ETG).
According to TDB, the facility aims to combat supply chain disruption and rising inflation while helping to bridge the trade finance gap. It will target smallholder farmers in Africa by funding the import of fertilisers and seeds as well as the purchase of commodities like coffee, cocoa and cashew nuts from farmers in TDB member states.
The loan “will facilitate intra and extra-regional trade flows, and boost forex revenues, to the benefit of member states’ balance of payments”, TDB says.
IMF sees Central Africa's economic growth at 3.4% this year (Reuters)
DAKAR, Dec 22 - Economic growth in the Central African CEMAC zone is expected to reach 3.4% in 2022 and rise gradually to above 3.5% in the medium-term, the International Monetary Fund (IMF) said on Thursday.
The Central African Economic and Monetary Community (CEMAC) includes Cameroon, Central African Republic, Chad, Republic of Congo, Gabon and Equatorial Guinea. Most are oil-producing nations that rely on oil and gas exports for revenue.
"The outlook for 2023 is broadly positive, driven by high oil prices, the lifting of COVID-19 containment measures, and assumed continued prudent management of the oil windfall," the IMF said in a statement following annual discussions with the member states.
Global economy
Services trade activity likely to weaken with slowing growth in major economies (World Trade Organization)
World services trade activity appears to have weakened in the fourth quarter of 2022 and is likely to remain soft in the opening months of 2023, with slowing growth in major economies weighing on the post-pandemic recovery, according to the latest WTO Services Trade Barometer released on 22 December.
The Barometer index reading for the month of October fell to 98.3, slightly below its baseline value of 100 and well below the previous reading of 105.5 from the last release in June. The findings are line with the Goods Trade Barometer issued in late November which indicated slowing merchandise trade volume growth in the closing months of 2022 and into 2023.
World services trade volume finally surpassed its pre-pandemic peak in the second quarter of 2022 and was expected to remain strong in the third quarter, buoyed by spending on travel, information and communication technology (ICT) services, and financial services. However, the Barometer rather indicates that year-on-year growth in real commercial services began moderating in the third quarter and may slow further in the fourth — as well as into the new year — due to declining growth prospects in major service industry economies.
Russia Lays Out Terms For Future Bilateral Trade & Investment (Russia Briefing)
Russian President Vladimir Putin has laid out the criteria for foreign countries and businesses who wish to develop trade and investment with the country, saying that Russia will emphasize mutual investments in the development of foreign economic ties.
Speaking at a meeting of the Council for Strategic Development and National Projects, Putin said that “For all the importance of the energy and food sectors, we will be emphasizing non-resource goods and mutual investments in the development of foreign ties.”
Russia sees the development of convenient and independent payment infrastructure in national currencies as a firm basis for strengthening international cooperation, essentially meaning that non-Euro and US Dollar payment mechanisms would be required to facilitate trade.
India's unpredictable farm export policy likely to affect farm income (Xinhua)
MUMBAI, Dec. 23 -- India's unpredictable farm export policy is likely to affect farm income with a recent report by the World Trade Center (WTC) Mumbai pointing out that it may affect the export performance of over 100 districts in the country.
"The government of India's restriction on export of primary and processed agriculture commodities such as rice, wheat, semolina, refined wheat flour and sugar in recent months may affect exports and farm income in 112 districts which are dealing in shipment of these commodities," said the WTC Mumbai in the report.
"In order to prevent shortage of essential primary and processed food commodities in the domestic market, the government of India prohibited or imposed export duty on shipment of these commodities in recent months."
Saudi Arabia’s non-oil exports increase by 4.4% in October to $6.62bn: GASTAT (Arab News)
RIYADH: Saudi Arabia’s non-oil exports, including re-exports, increased by 4.4 percent to SR24.9 billion ($6.62 billion) in October 2022, compared to SR23.9 billion recorded in October 2021, according to the latest report released by the General Authority for Statistics.
In its report, GASTAT noted that the Kingdom’s non-oil exports were driven by chemical and allied industries, accounting for 40.9 percent of non-oil merchandise exports in October.
The report further pointed out that overall merchandise exports increased by 13.9 percent in October to SR120.7 billion, up from SR106 billion in October 2021.
India, Bangladesh discuss trade settlement in rupee, free trade agreement (Business Standard)
Union minister of Commerce and Industry Piyush Goyal and his Bangladeshi counterpart Tipu Munshi discussed the settlement of trade in Indian rupees in New Delhi on Thursday. The two countries will also likely develop a free trade agreement (FTA) soon.
"A joint feasibility study on a Comprehensive Economic Partnership Agreement (CEPA) has been carried out after the two countries agreed to explore a bilateral FTA," said the commerce ministry.
India and Bangladesh agreed to start discussions on CEPA "at an early date" as it "would provide a sound basis for substantial enhancement of trade and commercial partnership".
Related News
tralac Daily News
Local news
Zimbabwe Sanctions | Activists denounce new sanction regime (ENCA)
HARARE - The United States has slapped new targeted sanctions on Zimbabwe.
This is despite calls by President Cyril Ramaphosa and other SADC leaders to scrap them.
This time, the Biden Administration is targetting people and companies including President Emmerson Mnangagwa's son.
South Africa 2022 wheat harvest forecast 1.6% lower than last year (Engineering News)
South African farmers are expected to harvest 1.6% less wheat in the 2022 season compared with the previous season, the government's Crop Estimates Committee (CEC) said on Wednesday.
The CEC's fifth winter wheat crop forecast estimates the 2022 wheat harvest at 2.249-million tonnes, down from the 2.285-million tonnes harvested last year.
Nigeria Must Break Bottlenecks and Barriers to Access AfCFTA $3.4 Trillion, Company Boss Says (Legit.ng)
The Chief Operating Officer of MicCom Cables and Wires, Bukola Adubi said this while featuring on a pane at the 2022 Practical Nigerian Content (PNC) Forum in Uyo, in Akwa Ibom.
"Ideally, AfCFTA should be fantastic for us as a country. For cable industry, we are seen as one of the industries in Nigeria already set up exceptionally well. If you ask anyone, they will tell you that made-in-Nigeria cables are fantastic.”
She praised the AfCFTA agreement but expressed fear that it may not work because of issues around tariffs and government policies, citing the failure of the ECOWAS trade liberalization scheme as an example.
Kenya pushes for ban on radioactive waste imports (Business Daily Africa)
The Kenyan government has renewed a push to ban the importation of hazardous materials, including radioactive waste into the country, in line with a continental pact to protect Africa’s borders from becoming a dumpsite for global manufacturers.
This is after the Ministry of Foreign Affairs asked the National Assembly to ratify the Bamako Convention, which bans the transboundary movement of hazardous wastes.
The convention, which was adopted under the auspices of the Organisation of African Unity in 1991 (now African Union) and came into force in 1998, imposes an obligation of State parties to ban the importation into, and transit through, their territory, of hazardous wastes and substances for human health and environmental reasons.
Nigeria: AfCFTA targets $12bn trade in 4 years –Experts (The Sun)
Stakeholders have said the African Continental Free Trade Area Agreement (AfCFTA) has the potential to grow trade value in Nigeria to the tune of $12 billion by 2027. This was disclosed during the Nigeria AfCFTA implementation strategy validation in Lagos, where they said the agreement could also reduce trade cost by 20 per cent by facilitating the enactment of an omnibus bill on the AfCFTA.
In his remarks, Senior Advisor in the Regional Integration and Trade Division (RITD) of Economic Commission for Africa (ECA), Mr. Adeyinka Adeyemi, highlighted that the ECA, through its African Trade Policy Centre (ATPC) has been working with member states to deepen Africa’s trade integration and effectively implement the agreement through policy advocacy and national strategy development.
“Nigeria has demonstrated high commitment to the implementation of AfCFTA,” Adeyemi noted, adding, “it is my conviction that the feedback from the workshop will further enrich the strategy and form the basis for an upgraded document for the Government’s consideration and eventual adoption.”
Republic of Congo President Hopeful After US-Africa Leaders Summit (VOA News)
Republic of Congo President Denis Sassou Nguesso says significant developments came out of this year’s U.S.-Africa Leaders Summit in Washington.
In an interview with VOA this week, Sassou Nguesso said that during this summit, the goals were more defined, including helping the African Union gain a greater voice at the United Nations.
“For example, President [Joe] Biden declared that Africa [African Union] is certainly going to be a member of the G-20. I believe this is a clear orientation that we appreciate. Mr. Biden also declared that in the next few years, America is going to get involved with Africa [the African Union] finding its right place at the Security Council of the United Nations as a permanent member," he said in French.
African trade and integration
Nigeria, Germany Agree to Deepen Bilateral Ties as Germany Returns 22 Benin Bronzes (Arise News)
Nigeria and Germany have both agreed to deepen their bilateral ties, meet the energy transition target, tackle climate crises and strengthen collaborations across all sectors.
Minister of Foreign Affairs, Geoffrey Onyeama and his German counterpart, Annalena Baerbock revealed this on Tuesday moments after some 22 historic bronze sculptures were returned by the European country to Nigeria.
Onyeama, speaking during a bilateral meeting in Abuja, said that strengthening bilateral ties, people-to people relations, strengthening partnership in the energy, economic sectors, tackling climate change, insecurity, strengthen collaborations across all sectors were the focus of the bilateral meeting.
Africa accounts for only 2.4% of global GDP, says ECOWAS (The Sun)
Economic Community of West African States (ECOWAS) yesterday, said that Africa accounts for only 2.4 per cent of global Gross Domestic Products (GDP) and that the continent has approximately 30 per cent of the earth’s remaining mineral resources.
In his presentation at a one-day workshop for journalists, organised by AfCFTA in Abuja, a consultant to the ECOWAS Common Investment Market (ECIM), Professor Jonathan Aremu added that Africa also has the largest reserves of precious metals with over 40 per cent of the gold reserves, over 60 per cent of cobalt and 90 per cent of platinum reserves.
To this extent, African Continental Free Trade Area (AfCFTA), the first in the series of the African Economic Community (AEC) economic integration initiative, provides an opportunity for expanded market for goods and services for Nigerians by building on progress achieved through similar Free Trade Area (FTA).
Global economy
High food prices and strong US dollar are ‘double burden’ for developing countries, UNCTAD says (UNCTAD)
Food prices have hit record levels in 2022, creating challenges for food security worldwide, especially for people in the developing countries that import most of their food.
An index published by the UN Food and Agriculture Organization (FAO) tracking the prices of the most traded food commodities remained at historically high levels in November (135.7 points) after reaching an all-time high in March (159.3 points).
Although the world has suffered food crises in the past, the current one, triggered by the COVID-19 pandemic and the war in Ukraine, is different, a new UNCTAD report says, because of a stronger US dollar.
Algorithmic Trading Global Market Report 2022: Ukraine-Russia War Impact (Yahoo Finance)
New York, Dec. 21, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Algorithmic Trading Global Market Report 2022: Ukraine-Russia War Impact" - https://www.reportlinker.com/p06374654/?utm_source=GNW
The global algorithmic trading market is expected to grow from $14.13 billion in 2021 to $15.93 billion in 2022 at a compound annual growth rate (CAGR) of 12.7%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, surge in commodity prices, and supply chain disruptions, effecting many markets across the globe. The algorithmic trading market is expected to reach $24.79 billion in 2026 at a CAGR of 11.7%.
The algorithmic trading includes revenues earned by entities by providing automated trading services, financial services, trade executions, system architecture management. The market value includes the value of related goods sold by the service provider or included within the service offering.
WTO issues information note on steel decarbonatization standards, readies for March event (World Trade Organization)
The WTO Secretariat on 21 December published a new information note mapping the proliferation of standards for decarbonizing the steel industry and outlining how the work of the WTO could support harmonization efforts and help prevent trade frictions. The note also underscores the importance of addressing developing countries’ needs with respect to decarbonization standards. It is released ahead of the WTO’s global stakeholder event on steel decarbonization standards to be held on 9 March 2023.
The Secretariat's information note titled "Decarbonization standards and the iron and steel sector: how can the WTO support greater coherence?" indicates that more than 20 different standards and initiatives exist to support steel decarbonization efforts or are under development. This may create uncertainty for producers, increase transaction costs, and risk trade frictions. Further work is needed to enhance the alignment of standards, including by finding areas for further convergence on specific measurement methodologies, definitions and performance thresholds for decarbonization, the note states. It is also crucial to ensure that developing countries' perspectives and challenges are considered and addressed.
At the United Nations Climate Change Conference (COP27) held last month in Sharm el-Sheikh, Egypt, Director-General Ngozi Okonjo-Iweala called for greater international cooperation on trade-related climate policies, including decarbonization standards. Achieving global net-zero targets will require consistent and comparable greenhouse gas emissions measurement. However, the proliferation of divergent carbon standards and certifications across countries and sectors risks fragmentation, undermines environmental credibility and creates barriers to trade and investment.
WTO dispute panel issues report regarding US origin marking requirements (World Trade Organization)
On 21 December the WTO circulated the panel report in the case brought by Hong Kong, China in “United States — Origin Marking Requirement” (DS597)
Find the summary of key findings here
Building CO2-neutral, defossilised supply chains for chemicals (European Pharmacological Review)
Manufacturers of (bio)pharmaceuticals, medical devices and in vitro diagnostics have the opportunity to lead the way in the defossilisation of organic chemicals. Here Martin Held from the Institute of Biotechnology of the Swiss Federal Institute of Technology and Roche’s Stefan Koenig, Martin Olbrich and Jan Backmann propose how to reduce the environmental footprint of the pharma industry by establishing a market and infrastructure for the large-scale production of defossilised organic chemicals, benefitting other industries too.
The healthcare industry is successful in innovating new treatment paradigms ranging from small molecular to biological therapeutics to personalised medicines. Over the past quarter century, the industry has increasingly adopted green chemistry practices in a continuing effort to improve process efficiency and reduce its environmental footprint. However, most of these efforts relating to catalysis, process waste metrics, lifecycle assessments, pharmaceuticals in the environment and the phase out of substances of concern mainly mitigate the consequences of pharmaceutical manufacturing. They do not address the underlying issue responsible for global warming, namely that almost all organic chemicals including plastics originate from fossil resources.
Egypt Looks Forward to Arab Industrial Integration (Asharq Al-Awsat)
Egypt’s Minister of Trade and Industry Ahmed Samir inaugurated on Tuesday the 13th Kuwait Week Exhibition in Cairo.
More than 60 major Egyptian and Kuwaiti companies have taken part in the two-day event, which is held under the theme “Kuwait in Egypt” and organized by the Kuwaiti embassy in Cairo and Jabriya Exhibition Group.
Samir said Cairo is keen to bolster economic cooperation and integration among Arab states, which would contribute to achieving food security and launching an industrial system based on exchanging expertise, technologies, and production inputs to reach the level of Arab industrial integration.
Related News
tralac Daily News
Local news
Port concession saves Nigeria over $1.6bn in 16 years, says Haastrup (The Guardian Nigeria)
Chairman of the Seaport Terminal Operators Association of Nigeria (STOAN), Princess Vicky Haastrup, has said the efficiency and other benefits brought by the port concession exercise saved the economy over $1.6 billion in the last 16 years.
Haastrup, who was represented by the spokesman of STOAN, Dr. Bolaji Akinola, at a maritime stakeholders’ event in Lagos, said the exercise has been a huge success and brought tremendous improvements to the nation’s port system.
She said the port concession programme has reduced the waiting time of vessels coming into the nation’s ports from an average of 45 days before 2006 to less than three days at present.
Kenya’s trade deficit widens to $11.3bln in first 10 months of 2022 (ZAWYA)
Kenya’s trade deficit reached 1.37 trillion shillings ($11.13 billion) for the first 10 months of 2022, up by 23.09% from a year ago, The Kenyan Wall Street newspaper reported, citing data from Kenya National Bureau of Statistics.
Essential commodities, such as petroleum products, wheat, edible oil and steel, saw prices surge year-on-year on the back of COVID-induced disruptions in global supply chains and the Russia-Ukraine war.
Expenditure on imports exceeded 2 trillion shillings, primarily driven by the cost of fuel, industrial supplies and foodstuffs.
SMEs key for Sudan's ability to harness the AfCFTA (UNECA)
Khartoum, 21 December 2022 (ECA) - The Economic Commission for Africa office for North Africa and the Sudanese ministry of Trade launched on 18 December in Khartoum a four day, joint workshop on Export Promotion and Access to Finance for the benefit of 50 Sudanese SME owners, mostly women.
The workshop aims to strenghten Sudanese SMEs' capacity to trade with the rest of the African continent and the world, seize new export opportunities within the framework of the AfCFTA and contribute to the transformation of the national industrial sector. Sudanese exports, which consist mostly of primary commodities such as gold, oil seeds or cattle, are currently very low, below 3% of GDP in 2021. Most exports go to China and Gulf countries, and only less than 20% to Africa, with Egypt being the main export destination on the continent. To help SMEs move upwards in the value chain, the training focuses on market access in Africa and product development strategies for SMEs as well as their access to finance.
"In an enabling environment, SMEs have a high potential for creating employment and innovation. They can also contribute to reducing poverty and to empowering the poor so that they can realize their productive capacities and integration into society, said Zuzana Brixiova Schwidrowski, Director of the ECA office for North Africa. "It is imperative that the climate for SMEs start-ups and growth is enhanced considerably, with the assistance of the public sector and key players in the private sector, especially finance", she added.
Export of raw lithium banned (The Herald)
Zimbabwe: Exports of lithium ore and unpurified lithium salts have been banned unless the producer can prove there are special circumstances, and even then exporters would have to pay the special 15 percent export tax, where the normal exporter of purified tradable product would be exempted.
The ban, except for ore samples being sent for analysis, came into effect on Monday with the gazetting by Mines and Mining Development Minister Winston Chitando of Statutory Instrument 213 of 2022, the Base Minerals Export Control (Lithium Bearing Ores and Unbeneficiated Lithium) Order, 2022.
The move implements the general policy of the Second Republic that mineral exports should be refined or beneficiated within Zimbabwe to the standard levels required for international trade, with this processing adding value to the finite mineral resources and ensuring that the value addition is done in Zimbabwe, creating jobs as well as making the export a lot more valuable.
African trade and integration
EAC Partner States urged to address huge financing gaps facing MSMEs in the region (EAC)
East African Community Headquarters, Arusha, Tanzania, 18th December, 2022: East African Community (EAC) Partner States have been called upon to seek local solutions to the huge gap in financing facing Micro, Small and Medium Enterprises in the region.
Uganda’s Minister of State for EAC Affairs, Hon. James Magode Ikuya, further urged the Partner States to address the twin issues of limited skills for production and poor standards and quality of products among others.
Hon. Ikuya said that addressing the challenges was critical, adding that MSMEs have a high mortality rate as they do not get to live and grow into sustainable businesses that can contribute to the economic development of the region.
AfCFTA, ITC partner on small business mapping (The Nation)
The African Continental Free Trade Area (AfCFTA) Secretariat and International Trade Centre(ITC) have announced the mapping to profile firms and the business ecosystem that supports them.
Both organisations have also launched the AfCFTA glossary to unpack the legal Agreement for small businesses.
According to Secretary-General, AfCFTA Secretariat, Wamkele Mene, “The AfCFTA glossary fills a void where knowledge material around the AfCFTA Agreement has failed to be small business-friendly thus far. I reaffirm our commitment as the Secretariat, to ensuring inclusivity in trade regarding African small businesses, particularly women and young entrepreneurs, whereby they will be able to be competitive, resilient and able to achieve their full potential.”
EAC Identifies Govt Policies For Trade Growth (The Tide)
The Economic Commission for Africa (ECA) has stated the need for government policies to support the harmonisation of regional value chains in order to further trade under the African Continental Free Trade Area (ACFTA).
According to a statement, the Chief Technology Section, Technology, Climate Change and Natural Resource Division, ECA, Mactar Deck, disclosed this during the launch of two publications: “Annual Economic Report for Africa 2022” and “The Existential Priorities of the AfCFTA” in Mauritius recently.
“AfCFTA provides new opportunities for local businesses to build new linkages in the supply chains on inter-African trade and that governments must create enabling policies and support the harmonisation of regional value chains”, he said.
Speaking at a session, Principal Economic Affairs Officer, Macroeconomic and Governance Division at ECA, Joseph Atta-Mensah, said integrating 55 economies on the continent into one was a powerful development.
MOWCA, AfDB explore common interests in maritime infrastructure development (The Guardian Nigeria)
The Maritime Organisation of West and Central Africa (MOWCA) and the African Development Bank (AfDB) have jointly identified areas of collaboration for maritime infrastructural development and employment creation.
This was part of the resolutions of the meeting between the Secretary General of MOWCA, Dr. Paul Adalikwu, and officials of the AfDB in Abidjan.
Adalikwu explained MOWCA’s importance and strategic positioning in harnessing the benefits of maritime transport development and the blue economy concept.
He disclosed AfDB’s plan to establish Regional Maritime Development Bank (RMDB) with headquarters in Abuja to serve as an avenue to provide funding for the African shipping industry to enable indigenous investors to own ships and play an active role in the industry.
Adalikwu stated further that nine member states have signed the bank’s charter document with 51 per cent equity share allotment to member states and 49 per cent equity set aside for private sector investors.
Border barriers within EAC hamper its trade ambitions with Africa — AfDB report (North Africa Post)
Immigration restrictions between citizens of East African Community (EAC) member states could derail the efforts by the bloc to align with the continental free trade policies, according to new data prepared by the African Development Bank (AfDB).
The report released by the AfDB and African Union Commission on Sunday shows that while the EAC is generally supportive of integration and regional trade, members of the bloc have retained certain barriers on movement of people within partner states. The Africa Visa Openness Index (AVOI), which tracks readiness of countries to accept each other’s citizens, shows that while the EAC had one of the highest openness scores in 2017, that grade dropped last year as member states increased and individual member states imposed their own restrictions.
The expansion of the EAC by South Sudan and the Democratic Republic of Congo (DRC) seems to have derailed wider openness in the bloc. Both countries still require visas from some of the EAC member states but overall, each of the seven-member states still ask for visas from at least one other member states. It means that EAC member states are only 76% open to each other’s citizens. To that end, experts have warn that the slow pace of opening up may in fact hurt trade ambitions.
Global economy
DG Okonjo-Iweala: During these difficult times, the WTO “cannot afford to stand aside” (World Trade Organization)
Speaking at the final 2022 meeting of the WTO’s General Council on 19-20 December, Director-General Ngozi Okonjo-Iweala urged Geneva-based delegates to use the upcoming year-end break to reach out to their respective capitals for guidance and instructions and get the organization “back on track” in the new year.
In her capacity as chair of the Trade Negotiations Committee, the Director-General expressed disappointment with the lack of progress made since the 12th Ministerial Conference (MC12) in June, where members achieved breakthroughs on issues such as fisheries subsidies, WTO response to emergencies - including a waiver of certain requirements concerning compulsory licensing for COVID-19 vaccines, food security and WTO reform.
While MC12 remains a highlight of the year, "we've not done much serious negotiating in the past six months," she told members. "We have a lot of ground to cover and will have to intensify our efforts when we return from the winter break.
New commitments for domestic regulation of services move step closer to entry into force (World Trade Organization)
Following the successful conclusion of negotiations in December 2021 on a set of disciplines aimed at cutting trade costs for service providers, participants in the Joint Initiative on Services Domestic Regulation submitted to the WTO on 20 December 2022 their improved schedules of commitments for certification. This is the final step required to give these commitments legal effect.
Improved schedules of services commitments under the WTO's General Agreement on Trade in Services were submitted for certification by 59 participants(1) in the initiative, accounting for 87 per cent of world services trade. The WTO membership has 45 days to review the improved schedules. The remaining 10 participants will aim to start their respective certification procedures as soon as possible.
"The launch of certification procedures for such a large number of participants is a real success," said Jaime Coghi Arias of Costa Rica, the coordinator of the initiative. "It moves us one step closer to giving legal effect to a set of disciplines that will increase transparency and predictability in the regulation of services trade and remove red tape for our business communities. This will in particular help micro, small and medium-sized enterprises and women entrepreneurs."
Sino-African cooperation eyes more benefits (The Star)
BEIJING: Having seen African people benefit from decades of cooperation with China, which has ushered in new infrastructure, more job opportunities and greater momentum for the continent’s sustainable development, Malian Foreign Minister Abdoulaye Diop told Xinhua News Agency he deems the partnership “a friendly cooperation between brothers”.
Over the past few years, the China-proposed BRI has helped enhance infrastructure connectivity across the continent and boost intra-African trade in the long run. It has become even more attractive to Africans, given that China has aligned the initiative with Agenda 2063, an economic blueprint proposed by the African Union.
China has promised to provide zero-tariff treatment on 98% of taxable items originating in the least-developed countries, including Togo, Djibouti and Rwanda, and has become Africa’s second-largest agricultural export destination.
US-Africa Leaders Summit yields scores of business deals in diverse fields (North Africa Post)
Business from the United States and different African countries announced nearly 15 new commitments during last week’s US-Africa Leaders Summit, in fields ranging from mining to healthcare to basketball.
One of the biggest deals made at the summit was an investment by US-based Kobold Metals, which will be “a commitment of over $150 million dollars into Zambia’s mining sector,” according to Gina Raimondo, US Secretary of Commerce. “I think this is a model of what we need to be doing more. It’s a big deal.”
“This investment is in copper and cobalt, which are critical minerals to gravitating us from carbon-driven fuels to green fuels. Electric vehicles, that’s what we are talking about,” Zambian President Hakainde Hichilema said at the signing ceremony. Cobalt is an ingredient in lithium-ion batteries used in electric vehicles, tablets, laptops and smartphones.
Council approves reinforced rules on granting trade preferences to developing countries (Council of the EU)
EU member states’ ambassadors today agreed the Council’s negotiating mandate on the revised Generalised Scheme of Preferences (GSP) regulation that grants trade preferences to developing countries.
The new framework maintains the main features of the current system, but includes some improvements, such as stronger links to respect for human rights and the environment, and a better monitoring and transparency of the scheme. There will also be a new link between the trade preferences granted to beneficiary countries and their cooperation on migration and the readmission of own nationals illegally present in the EU.
“The EU will continue supporting vulnerable countries by giving them preferential access to the single market. The objective of the reinforced regulation is to help these countries grow in a sustainable manner and to encourage good governance, including respect for human rights and the environment.” -Jozef Síkela, Minister of Industry and Trade of the Czech Republic
Afreximbank, US EXIM Sign $500m MoU to Enhance Trade (THISDAY Newspapers)
The African Export-Import Bank (Afreximbank) has signed a memorandum of understanding (MoU) with the Export-Import Bank of the United States (US EXIM) to enhance trade between Africa and the United States of America (USA).
It is also expected to expand commercial engagements of the African Diaspora community in the US towards facilitating transactions critical to the economic growth of both the US and Africa.
According to a statement, the two banks would support trade and economic integration in Africa and across a broad range of trade-enabling sectors, including helping to revive and strengthen the African aviation sector.
Global Supply Chains Face ‘Hangover’ as Excess Demand Softens (Bloomberg)
“There’s a reliability hangover,” Bill Seward, the new president of supply-chain solutions at United Parcel Service, said in an interview. He was referring to lingering headaches from more than two years of shipping congestion, delivery disruptions and component shortages around the world.
While ports may be opening a bit and transportation rates may be coming down, there’s still plenty of angst. “A lot of senior execs feel very kind of battered by the last two years with regard to reliability and there’s a heavy emphasis on the ability to de-risk and to be able to flex in different ways,” Seward said.
For instance, UPS is seeing reshoring trends shift demand for its services to markets like Mexico, and the courier company is trying to adapt with the changes.
Excellent news on the exports front, pace of growth in imports moderating (Economic Times)
Merchandise exports were resilient in November, recovering from a dip in the previous month. The broad-based recovery is reassuring with half the principal sectors posting year-on-year growth. The October contraction had raised fears of exports plunging, as high inflation in destination markets affects demand and interest rate tightening squeezes inventories. Yet, the underlying factors persist, and exports are on course to meeting the full-year target on spectacular showing earlier in the year ..
when pandemic restrictions had diverted consumption from services to manufacturing. Resumption of contact-intensive services has reversed the trend, affecting merchandise exports, and imminent recession in major economies is affecting the growth outlook for technology services.
The pace of growth in imports also continued to moderate in November with energy prices and decelerating domestic growth. This has a positive bearing on inflation control and interest rate management. Import demand is strong against the global scenario with 19 out of 30 principal categories posting growth during the month. The import picture improves when energy and jewellery are excluded, providing a pointer to economic momentum. Support for imports is also emerging in accelerated infrastructure build-up as well as India's pivot to manufacturing exports. These themes could counteract any deceleration in domestic demand due to a global rise in borrowing costs.
GAC to ramp up efforts to boost foreign trade in 2023 (The Global Times China)
The General Administration of Customs (GAC) of China said it will optimize anti-COVID responses at ports and promote land border reopening amid government efforts to boost foreign trade.
Efforts will be made to ensure smooth customs clearance at ports and promote international trade while guarding against imported COVID cases from overseas, the GAC said on Monday.
“We will boost exports of competitive products, support companies to secure orders and expand markets, and give full play to the role of export in supporting the economy” the GAC said.
The optimized measures come as China steps up a push for foreign markets and encourages exporters to make overseas trips to grabmoreorders.
Members consider EU requests for dispute panels regarding Chinese trade measures (World Trade Organization)
WTO members considered two requests from the European Union for dispute panels at a meeting of the Dispute Settlement Body on 20 December: one regarding Chinese measures affecting trade in goods and services with Lithuania, and a second regarding China’s enforcement of intellectual property rights. In both instances, China said it was not in a position to accept the EU requests.
China: Growth of 6% possible if policies tailor-made, more evenly balanced (Hellenic Shipping News)
Due to the impact of COVID-19, economic recovery momentum has weakened in recent months, weighing on achieving this year’s GDP growth target. It is estimated that this year’s GDP will be around 3.3 percent, well below the pre-pandemic growth rate of 6 percent and the average growth rate of 5.1 percent over the past two years. Behind the relatively low growth forecast, we see not only the triple pressure of demand contraction, supply shocks and weakening expectations, but also the impact brought by COVID-19 resurgences, leading to more complex challenges for China’s economy.
However, China’s economy is resilient and has sufficient policy adjustment space. Looking forward, if the government can better minimize COVID-19 impacts on economic and social development, and make good use of policy space to help the economy return to a normal and reasonable growth track as soon as possible, the economy will see faster recovery. This is not only necessary to ensure employment and people’s livelihoods, but also a must to achieve the medium and long-term goals of high-quality development.
Then what is the possible and reasonable growth range of China’s economy next year? Many experts and scholars have suggested that the government set the economic growth target for next year at about 5 percent, while we think otherwise.
Indo-Pacific Trade Talks Get Underway (Sandler, Travis & Rosenberg, PA)
The first negotiating round for the Indo-Pacific Economic Framework was held Dec. 10-15 in Australia.
IPEF was launched this past spring with the aim of strengthening U.S. ties to the region and creating a stronger, fairer, more resilient economy for families, workers, and businesses. Australia, Brunei, India, Indonesia, Japan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and Vietnam are the current participants, and each of them except India has pledged to take part in all the initiative’s four pillars: trade (which India opted out of), supply chains, clean economy, and fair economy. An initial ministerial meeting held in September outlined the objectives in each of these areas.
Ahead of the recent meetings, U.S. officials shared trade negotiating text with IPEF partners for the following topics: trade facilitation, agriculture, services domestic regulation, and transparency and good regulatory practices. In addition, U.S. officials held detailed conceptual discussions for the following trade topics: environment, labor, digital economy, competition policy, and inclusivity. Also before the negotiating round the Department of Commerce shared text on supply chains and tax and anti-corruption as well as a concept paper on clean economy.
UAE-Israel trade more than doubles in 11 months of 2022 (ZAWYA)
Bilateral trade between the UAE and Israel has more than doubled in the first 11 months of this year, helped by the signing of the Comprehensive Economic Partnership Agreement (Cepa).
The UAE and Israel signed the Abraham in September 2020 to normalise relations and improve trade relations.
The UAE-Israel Cepa deal, signed earlier this year, will further build on the exponential growth in trade and investment the UAE and Israel have enjoyed since the signing of the Abraham Accords.
From September 2020 to March 2022, UAE-Israel non-oil trade surpassed $2.5 billion, while it reached $1.06 billion in the first three months of 2022 – five times the total from the same period in 2021.
Related News
tralac Daily News
Local news
Growing Demand from End Users: The cold chain market is expected to be fueled by increasing demand for temperature-controlled products in the country, the entry of several new players, and government initiatives and programs. The Government has initiated the National Transport Master Plan 2050 to guide the development of a multimodal transportation system to meet South Africa's long-term transport needs.
Analysts at Ken Research in their latest publication "South Africa Cold Chain Market Outlook to 2026F: Driven by Rising Meat and Seafood & Fruits and Vegetable Consumption, Owing to Growing Population and Infrastructural Development" By Ken Research observed that the Cold Chain market is an emergent market in South Africa at a rebounding stage from the economic crisis after the pandemic. The rising government policies and demand for Cold Chain, rising domestic consumption of meat and seafood, fruits and vegetables along with government initiatives are expected to contribute to the market growth over the forecast period. The market is expected to grow at an 11.5% CAGR during 2021-2026F owing to the rise in the economy of the country and growing population as well as infrastructural development by the government with investments in the sector.
Nigerian Cable Manufacturers Seek AfCFTA Market Opportunities (Business Post)
The Cable Manufacturers Association of Nigeria has tasked the federal government to play a crucial role in breaking tariff barriers for Nigerian companies to maximise the opportunities present for it in the Africa Continental Free Trade Area (AfCFTA).
This was made known by the Chief Operating Officer of MicCom Cables and Wires, Mrs Bukola Adubi, while speaking on a panel at the recent 2022 Practical Nigerian Content (PNC) Forum, which was held in Uyo, Akwa Ibom State.
“But then, my concern is with the Economic Community of West African States (ECOWAS) trade liberalization scheme. It doesn’t work. And the reason it doesn’t work is that there are so many issues regarding government policies – the tariffs and member country bureaucratic red tape. So, first and foremost, the governments have a huge role to play in terms of breaking these barriers to facilitate effective trade,” she said.
Minerals Council, Transnet to establish joint structures to improve rail, ports performance (Engineering News)
State-owned freight utility Transnet and the Minerals Council South Africa have agreed to form joint collaborative structures to ensure all possible actions are taken to stabilise and improve the throughput of South Africa’s rail and ports systems.
The parties agree that stabilisation and recovery of the ports and railways are in the interest of all parties in the value chain.
The entities will establish an oversight panel and a recovery steering committee, as well as continue with the work being done through channel optimisation teams for each of the country’s major commodities – coal, iron-ore, manganese and chrome.
Uganda registers Shs418b surplus in trade within EAC (Monitor)
Uganda’s trade balance within the East African Community during October 2022, indicates that merchandise trade resulted in a surplus of $114.54 million (about Shs418.337 billion), an increase from a surplus of $71.05 million (about Shs259.497 billion) recorded a year ago.
The above development demonstrates how trade activity has picked up in the region after suffering a decline in the past two years due to Covid-19.
The Ministry of Finance Planning and Economic Development said in the performance of the economy report for the month of November 2022 released Monday that over the same period, exports to EAC increased by 11.8 per cent whereas imports decreased by 22.5 per cent.
African trade and integration
Afreximbank launches TRADAR Club network to transform African trade and investments (Journal du Cameroun)
The African Export-Import Bank (Afreximbank) has in Cairo operationally launched the Afreximbank TRADAR Club, a prestigious member-driven network aimed at empowering international businesses and executives to transform trade and investments in Africa through trusted trade intelligence and advisory services. According to Afreximbank, TRADAR Club, launched on December 15, 2022, will deliver innovative digital tools and networking opportunities, helping members to discover new markets; grow their business; save time; access dedicated expert support; post and respond to new business opportunities; network; meet business/trading partners; and more.
The regional investment said that the unit was conceived to address one of the key barriers to intra-African trade – the lack of comprehensive African trade and investment information.
“Afreximbank’s Trade Intelligence Solutions is an end-to-end, integrated trade intelligence offering – supporting clients that are seeking to enter new markets in Africa or expanding into the continent.
YouLead Summit 2022 focuses on digital access and future of work (African Business)
The 6th edition of the YouLead Summit in Arusha highlighted the importance of empowering African young entrepreneurs and support them in accessing opportunities generated by the African Continental Free Trade Area (AfCFTA).
Under the theme “Digital Access & the Future of Work”, the five-day Summit is organized by YouLead Africa and supported by the International Trade Centre (ITC), East African Community (EAC), East Africa Business Council (EABC), act!onaid Denmark, the Independent Continental Youth Advisory Council on the AfCFTA, and others. The Summit brings together young leaders from across the African continent to share knowledge, exchange ideas, and create change.
Pamela Coke-Hamilton, Executive Director of the International Trade Centre said: “Africa’s well known young demographic dividend is the continent’s biggest resource – a treasure chest of innovative solutions to harnessing the full potential of the AfCFTA. It is in youths’ hands to generate ideas and solutions on how to deliver on the trade and industrialization aspirations contained in the AU Agenda 2063 – The Africa We Want.”
EAC: Burundi to Host the 23 Edition of EAC Micro, Small, and Medium Enterprises Fair in 2023 (RegionWeek)
The Republic of Burundi will host the 23rd edition of the EAC Micro, Small, and Medium Enterprise in December 2023. The announcement was officially made during the winding up ceremony of the 22nd EAC MSME Trade Fair Sunday, December 18, 2022, at the Kolola Independence Grounds in Kampala, Uganda.
Uganda’s Minister of State for EAC Affairs, James Magode Ikuya urged the East African Community (EAC) Partner States to seek local solutions to the huge gap in financing facing Micro, Small, and Medium Enterprises in the region and to address the limited skills for production and poor standards and quality of products among others.
The Minister, as mentioned in the press release, said that to ensure the full implementation of the EAC Common Market Protocol and maximize intra-regional trade, Partner States should harness their comparative advantages by focusing their efforts on the production of specific commodities and services at a lower cost than their trading partners even as he called for value addition to items destined for the regional and international market.
Global economy
WTO members accept UAE, Cameroon offers to host Ministerial Conferences (World Trade Organization)
At a meeting of the General Council on 19 December, WTO members agreed to a proposal from the United Arab Emirates (UAE) and Cameroon to host consecutive Ministerial Conferences. Under an arrangement agreed between the two countries, the UAE will host the 13th Ministerial Conference (MC13) the week of 26 February 2024 in Abu Dhabi and Cameroon will host the 14th Ministerial Conference (MC14) at a date still to be determined.
WTO Director-General Ngozi Okonjo-Iweala thanked the UAE and Cameroon for the “partnership, pragmatism, and flexibility they exhibited in trying to get together and agree on a mutually acceptable outcome. They provide an example to all of us as we work to move this organization forward.”
The Ministerial Conference, which is attended by trade ministers and other senior officials from the organization’s 164 members, is the highest decision-making body of the WTO. Under the Marrakesh Agreement Establishing the WTO, the Ministerial Conference is to meet at least once every two years.
Africa House Hosts Successful High-Level Event During President Biden's U.S.-Africa Leaders Summit 2022 (Black Enterprise)
Africa House, a project that convenes the best and brightest entrepreneurs, initiatives, and opportunities from Africa to leaders across industry and government, is excited to announce the successful completion of a high-level event held in Washington D.C. last week. Nikkole-Charlene Wilkerson, in collaboration with Africa House, brought together U.S. Black Mayors, top American business leaders, and investors in a private gathering with African ministers, organization heads, and executives.
The meeting sought to bolster economic relationships and access to capital, aligning with the Biden and Harris Administration’s focus on economic growth and development in Africa, including the African Continental Free Trade Area, and development financing and grants throughout the continent, according to a release.
“This meeting represents a significant step forward in strengthening economic ties between Africa and the U.S., specifically the African Diaspora,” said Wilkerson, who organized and hosted the event.
U.S. struggles to lure African nations over from China (Nikkei Asia)
KAMPALA, Uganda -- The U.S. pledge last week of $55 billion in development aid to Africa over the next three years surpasses similar pledges in recent years of $40 billion from China and $12.5 billion from Russia.
In contrast to China and Russia, the U.S. is likely to have included its payments to the World Bank and IMF as part of this $55 billion figure. Many African governments are concerned about these organizations' performance, particularly their track record of providing and facilitating major African infrastructure and industrialization projects.
For Shingirayi Kondongwe, an African Union Commission scholar from Zimbabwe, "the idea to lure African leaders away from China might not be practical at all," given the sheer size of the Chinese infrastructure investments across the continent.
China bets on private sector to boost Covid-hit economy (CNN)
Beijing has vowed to go all out next year to save its Covid-hit economy by boosting consumption and loosening control over private industry, including the struggling tech and property sectors. The new pledge marks a big shift from leader Xi Jinping’s years-long effort to rein in private businesses, which were perceived as too powerful and “disorderly.”
The world’s second biggest economy faces multiple challenges. Covid infections are surging in China after leaders unexpectedly eased its restrictive Covid policy earlier this month. At the same time, its exports have been hurt by a slump in global demand.
Dubai Trade, DCC collaborate to simplify services for exporters (Gulf Today)
Dubai Trade and Dubai Chamber of Commerce (DCC), one of three chambers operating under Dubai Chambers, have simplified trade services for exporters and re-exporters in the country by collaborating together to provide membership and Certificates of Origin (COO) services through the Dubai Trade portal.
The integration of the COO on Dubai Trade platform is part of their agreement, signed in March, to cement Dubai’s position as a leading global business hub and streamline the trade process for more than 180,000 customers.
Saif Al Hattawi, Executive Director of Digital and Commercial Services at Dubai Chamber of Commerce said: “Dubai Chamber of Commerce is constantly working to strengthen Dubai’s position as a global gateway for trade that supports business growth and enables local companies to access business opportunities in target markets. Certificates of Origin are crucial to facilitating and driving international trade.
Despite Lousy Trade Policy, U.S. Imports To Top $3 Trillion For 2022 (Forbes)
U.S. imports are poised to top $3 trillion for the first time this year, despite a trade policy that has tried to get in the way for six years.
Imports have continue to come this year despite the tariffs on Chinese imports, the lack of a functioning WTO appellate body to settle trade disputes and high inflation that has been stubbornly slow to squash business and consumer demand.
Gulf countries eye Africa for trade (cgtn.com)
The African Continental Free Trade Area has increased the appetite of Africa’s trading partners and the rush to secure more economic cooperation opportunities. The United Arab Emirates is leading the pack of Gulf countries who are eyeing such opportunities with the African continent.
William Stenhouse Chief Executive Officer at Stenhouse and Associates said that looking at the United Arab Emirates and specifically Dubai, it has become the epicenter when it comes to trade and investment in Africa.
For the UAE, Africa home to some of the world’s fastest-growing economies represents the future, thanks to the African Continental Free Trade Agreement expected to create the world’s largest single market with some 1.3 billion people and synergies in food security— crucial for the UAE which imports the majority of its food.
World will overcome challenges to keep trading: MSC CEO (ITLN)
At a time when the contraction of global economic growth, high energy prices and inflation are dominating the public agenda, a high-level meeting of CEOs and government officials in Paris in mid-December offered a few glimpses of optimism and underscored the continued importance of global trade.
"The future economy will still be globalised even if some supply chains are a little more distributed," Soren Toft, CEO, MSC said in a panel session on Charting a New Economy. "Trade has brought hundreds of millions out of poverty, enabled local producers to tap international markets and empowered local communities through economic prosperity."
Following the bust and boom volatility of the pandemic markets when consumers ploughed money into physical goods, the commercial shipping market has been normalising in the second half of this year compared with the extraordinary freight rates witnessed during the pandemic. "Nonetheless, container demand has shown a slight resurgence in recent weeks and countries will continue to trade, potentially still producing some modest growth in 2023," Soren said.
Key Takeaways from the U.S.-Africa Leaders Summit (JD Supra)
The Biden administration hosted the second U.S.-Africa Leaders Summit, Dec. 13–15, in Washington, D.C.; this event was the corollary to a similar summit hosted by President Obama in 2014. The summit, which included participation from 50 African country leaders, signals a return of U.S. foreign policy focus on Africa, which in part is aimed at strengthening U.S. partnerships in Africa to counter China’s growing role as a trade and diplomatic partner to the region. Over the course of the three days, the administration announced a number of new initiatives to grow two-way trade and investment, bolster African health systems, engage the diaspora and foster technological innovation in African countries, announcing plans to invest over $55 billion in Africa over the next three years. President Biden also announced he, as well as Vice President Harris and Secretary Blinken, would travel to Africa in 2023, although an official itinerary or timing of the trip has not been disclosed.
The wide range of new investments and projects will require a significant administration effort to operationalize the new programs, with President Biden appointing Ambassador Johnnie Carson, former assistant secretary of the State Department for African affairs and ambassador to Kenya, Uganda and Zimbabwe, to serve as the presidential representative for U.S.-Africa Leaders Summit Implementation and key administration official to coordinate these efforts. Many of the newly announced investments will also require congressional approval, leaving it unclear whether all of the programs announced during the summit will be fully endorsed by the upcoming divided Congress.
In a White House fact sheet, the spate of new initiatives were broadly classified into several categories, including global governance and diplomatic engagement, people-to-people ties, and technology and innovation, with an emphasis in the number of new announcements given to initiatives geared toward trade, investment and inclusive economic growth.
Related News
tralac Daily News
Local news
Uganda Seeks Sustainable Growth Through Regional Trade (Mirage News)
KAMPALA, December 15, 2022 – As the shock of the COVID-19 pandemic recedes, Uganda is returning to its pre-pandemic path to growth, with economic recovery boosted by the strong performance of the services and industrial sectors, buoyant private consumption, and an uptick in private investment.
The 20th edition of the Uganda Economic Update (UEU): Unlocking the Benefits of the African Continental Free Trade Area and Regional Integration, a twice-yearly analysis of Uganda’s near-term macroeconomic outlook, foresees sustained recovery driving real Gross Domestic Product (GDP) growth to 5.5% during fiscal year 2022/23 from 4.7% in fiscal year 2021/22, not very different from the forecast in June 2022.
This broad-based recovery started at the beginning of the year and accelerated throughout 2022. The medium-term outlook also remains broadly positive, hinged on continued implementation of the government’s Third National Development Plan (NDP III) and full recovery of global trade.
President Ruto in U.S. to Profile Kenya as an Investment Hub (Nairobi Wire)
President William Samoei Ruto is in Washington, D.C. for the U.S.-Africa Leaders Summit. He is expected to make a robust case for the expansion of trade between Kenya and the United States.
President Ruto will also be seeking to deepen the economic ties between the two countries during a meeting with his U.S. counterpart Joe Biden.
“We will be pitching to American companies to scale up and direct their investments to Kenya now that we are aggressively pursuing pro-business policies,” explained President Ruto.
‘COVID -19 unlocked innovation in industries’ (Zimbabwe Independent)
Industry and Commerce minister Sekai Nzenza says the outbreak of COVID-19 brought new opportunities and innovations to the manufacturing sector.
According to the state of industry and commerce report released on Wednesday, post COVID–19-induced lockdowns, Zimbabwe’s manufacturing sector remained highly diversified consisting of 94 sub-sectors producing over 6 000 products.
African trade and integration
Over $1 billion Worth of Customs Bonds Executed in the North and Central Transport Corridors (COMESA)
Over 1,282 Regional Customs Transit Bonds, amounting to US$1billion have been executed in the Northern and Central transport corridors in 2022 alone signifying a reduction in cost of transit and transport of goods by between 15 and 20 percent.
The two Corridors link Kenya, Uganda, Rwanda, Burundi, Tanzania and DR Congo which are part of 13 countries that have joined the COMESA Regional Transit Guarantee (RCTG) Scheme. Other countries in the scheme are Djibouti, Ethiopia, Madagascar, Malawi, South Sudan, Sudan and Zimbabwe.
The RCTG, also known as Carnet, is a Customs transit regime designed to facilitate the movement of goods under Customs Seals in the region. It provides a uniform basis for transit movement through the region, where only one guarantee is used to cover goods in transit throughout all transiting countries. Currently, it is fully operational in Burundi, Kenya, Rwanda, Tanzania and Uganda.
Over 2000 delegates, including Africans from across the continent, attended the World Circular Economy Forum 2022 in Kigali, Rwanda held from 6-8 December.
The event positioned Africa as a potential global leader in driving adoption of the circular economy paradigm owing to its youthful population, immense resources and entrepreneurial dynamism. It also showcased circular solutions from Africa and the global south, including reused construction materials, textile garment recycling and aquaponics food systems.
The African Circular Economy Alliance (ACEA), the Government of Rwanda and the Finnish Innovation Fund, Sitra, jointly hosted the Forum. The African Development Bank, which hosts ACEA’s secretariat, played a role in the event’s agenda.
West Africa poised for apparel sector investment (just-style.com)
Participants at the recent West Africa Roadshow validated the organiser’s vision for the West Africa Region, which comprises the need for a vertically integrated and sustainable industry with capabilities in recycling, renewable energy and traceability of materials.
“The textiles and apparel industry plays an important role in industrialisation,” said organiser the Tony Blair Institute (TBI). “Most countries that have industrialised have started with textiles and apparel before moving to higher value-add sectors. The industry is typically labour-intensive in the apparel segment and technology-intensive in the textiles segment (i.e., the production of fabrics by transforming cotton or producing man-made fibres).
“In a country like Bangladesh, textiles and apparel represents more than US$40bn in exports and employs more than 5 million people. West Africa has all the ingredients to be able to attract investment in the region, especially as the industry is moving out of China (which represents more than 40% of global T&A exports) and the consumer market is continuously growing. Bringing key industry leaders and decision-makers to the region is key for the region to be able to benefit from the current changes in the supply chains and seize this opportunity.”
China Grants Ethiopia Duty-Free Export Privilege (COMESA)
The Government of China has granted an opportunity for exporters in Ethiopia to export duty-free some 1,644 types of products to China.
The duty-free export privilege given to Ethiopia by the Chinese government doesn’t require Ethiopia to reciprocate or allow any Chinese products imported duty free to Ethiopia, according to Ethiopia’s Ministry of Trade and Regional Integration.
Most products listed to be exported duty free from Ethiopia are manufactured goods the country is not manufacturing at the moment.
These include parts and accessories of various machineries, electronics equipment, sunglasses, contact lenses, hand drying apparatus, cameras, projectors, electric smoothing irons, warships, vessels, sailboards, vacuum cleaner, soldering irons and guns, sound signaling equipment, etc.
Africa Business Forum: U.S., Benin, Niger sign $504 million Regional Investment (Millennium Challenge Corporation)
WASHINGTON (Dec. 14, 2022) — The Millennium Challenge Corporation (MCC) took center stage at today’s U.S.-Africa Business Forum as the United States, Benin, and Niger governments signed the first-ever MCC regional program — the $504 million Benin-Niger Regional Transport Compact.
Benin’s President Patrice Talon, Niger’s President Mohamed Bazoum, and MCC’s Chief Executive Officer Alice Albright were joined by U.S. Secretary of State Antony Blinken to sign the compact and celebrate taking a significant step in advancing two-way trade between the United States and West Africa.
“Connecting vibrant African regional markets is a critical piece of a broader and inclusive strategy to create sustainable economic growth,” said Albright. “Countries can grow faster, create more jobs, and attract additional private-sector investments when they are a part of dynamic regional markets. Nowhere is this more applicable than in West Africa. I am honored to be part of this historic partnership with Benin and Niger.”
EALA passes bill to set up financial services commission for EAC (The East African)
The East African Legislative Assembly (EALA) has passed a bill for the establishment of the East African Financial Services Commission as an institution of the community.
“This is one of the legacy bills this House has passed. It’s a bill that touches directly on a pillar of our integration. Therefore, we hope that the remaining step to assent by the heads of state will not be delayed,” said the EALA Speaker Martin Ngoga after the bill was passed.
East African Financial Services Commission Bill 2022 aims to establish the East African Financial Services Commission, pursuant to Article 21(a) of the Protocol on the Establishment of the East African Monetary Union, to provide for the functions of governance, funding and headquarters of the commission.
Kenya and Eritrea Reach Visa-Free Travel Agreement (Busiweek)
Authorities in Kenya and Eritrea have reached an agreement to facilitate the travel process by lifting the visa requirements for citizens of each other’s countries.
According to both countries’ authorities, the new decision would further tighten the bilateral relations, and also facilitate the travel process.
The decision was reached at a meeting held between the President of Kenya, William Ruto as well as his counterpart from Eritrea, Isaias Afwerki. The leaders also agreed to tighten cooperation in the African Union, “in the spirit of Pan-Africanism”.
“We will keep working together to promote regional trade and investment,” President Ruto said.
Global economy
US announces $1bn investment package to accelerate African innovation (Engineering News)
The US White House’s Prosper Africa initiative the US-Africa Business Forum’s Deal Room announced on December 14 a package of investments totalling $1-billion over the next five years, to boost African exports and infrastructure and mobilise private investment to accelerate African innovation.
Prosper Africa is a US government initiative to increase two-way trade and investment between African nations and the US.
Prosper Africa COO Leslie Marbury says Africa offers some of the greatest growth opportunities for shared prosperity in African nations and the US.
FACT SHEET: U.S.- Africa Partnership in Promoting Two-Way Trade and Investment in Africa (The White House)
Africa’s integration into global markets, demographic boom, and continent-wide spirit of entrepreneurship and innovation present an extraordinary opportunity for the United States to invest in Africa’s future. The United States will support and facilitate mobilizing private capital to fuel economic growth, job creation, and greater U.S. participation in Africa’s future. Together, business and government leaders will strengthen trade- and investment-enabling environments, including fostering the development and implementation of effective policies and practices across all sectors, and identify and promote new opportunities for Africans and Americans. Through initiatives such as the Partnership for Global Infrastructure and Investment (PGII) and Prosper Africa, the United States will provide timely, coordinated support that meets the needs of businesses and investors, including micro-, small- and medium-sized enterprises and diaspora- and women-owned businesses, to advance infrastructure priorities and boost two-way trade and investment.
Afreximbank, U.S. Eximbank sign $500m MoU for revival of African airlines, others (Daily Trust)
The African Export-Import Bank (Afreximbank) and U.S. Eximbank have signed a $500m Memorandum of Understanding (MoU) to boost trade and investment, especially to help revive and strengthen African airlines through re-fleeting.
Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank said this in an interview with the News Agency of Nigeria (NAN) on the sidelines of the ongoing U.S.-Africa Leaders’ Summit.
Oramah said through the renewed partnership, the two banks would support trade and economic integration in Africa by helping to provide other technical supports and facilitate strategic investments in healthcare.
Members highlight progress on trade and gender, aim for long-term work programme in 2023 (WTO)
At their last meeting of the year held on 12 December, members of the Informal Working Group on Trade and Gender took stock of the work undertaken in 2022 and considered their next steps. The co-chairs highlighted that the mandate of the Informal Working Group was strengthened by the 12th Ministerial Conference (MC12) outcome document, which recognizes the importance of women’s economic empowerment. They announced that 2023 should be dedicated to developing a long-term work programme containing concrete actions and deadlines.
Several WTO observers, representatives from the private sector, and academia gave presentations on issues related to women and digitalisation, female exporters, links between free trade agreements, disability and gender.
Reporting on the work carried out by the WTO Secretariat, Anoush der Boghossian, Head of the Trade and Gender Unit, said a publication with some of the research papers presented at the World Trade Congress on Gender held on 5-7 December will be released in 2023 as well as a full report highlighting the new data and findings discussed at the event.
U.S. trade chief Tai calls for improvements to African trade program (Yahoo Finance)
WASHINGTON, Dec 13 (Reuters) - U.S. Trade Representative Katherine Tai told African counterparts on Tuesday that she wants to improve participation in the U.S. trade preferences program that provides access to U.S. markets for nearly 40 African countries.
Tai said she wanted to conduct an "honest assessment" of the African Growth and Opportunity Act (AGOA), which has underpinned U.S.-Africa trade for more than two decades, during remarks to a meeting of trade ministers from Africa at the start of a regional leaders summit in Washington.
Tai said in her remarks that she was "interested in discussing today ways in which we can improve AGOA – including how we can increase the utilization rates, particularly among smaller and less-developed countries, as well as ensure that the program’s benefits fully reach all segments of society."
Trade Policy Review: United States of America (World Trade Organization)
The fifteenth review of the trade policies and practices of the United States of America takes place on 14 and 16 December 2022. The basis for the review is a report by the WTO Secretariat and a report by the Government of the United States of America.
China’s 2023 outlook clouded by global recession, developing world debt risk (South China Morning Post)
Uncertainty facing the global economy next year will exacerbate challenges at home for China, economists in Beijing say, while urging swift support to help counter external headwinds.
As the risk of global recession looms, China should stay alert to turbulence in international markets and the potential of another financial crisis, said former vice-finance minister Zhu Guangyao at a forum organised by web portal Sina on Wednesday.
“There could be greater challenges for 2023,” he said.
Debt crises have broken out in some less developed countries following US monetary policy tightening, while war in Ukraine has roiled energy and food markets.
Supply Chain Latest: Port Operator Sees Headwinds in 2023 (Bloomberg)
One of the world’s largest port operators in emerging economies sees some signs of weaker demand but heads into 2023 in a stronger position to charge higher rates and weather a surge in energy costs.
The profit windfall that container shipping lines made through the pandemic “made it easier for us to bring up what we call a lot of the mandatory charges in the ports,” said Christian Gonzalez, executive vice president at Manila-based International Container Terminal Services Inc. “That situation allowed us to mitigate the impacts of inflation early on, and a lot of that pricing is going to stick.”
After two years of improving profits, terminal operators globally are bracing for hits to their margins. “The ports industry now faces the dual challenge of skyrocketing costs and market downturn,” the maritime consultancy Drewry said in report on Tuesday.
China-Kyrgyzstan-Uzbekistan Railway - symbol of regional co-op, Turkish think tank says (Trend News Agency)
BAKU, Azerbaijan, December 15. China-Kyrgyzstan-Uzbekistan Railway is a symbol of regional cooperation, Trend reports citing the Ankara Center for Crisis and Policy Studies (ANKASAM), a think tank based in Türkiye.
According to ANKASAM, the implementation of transport and logistics projects helps to strengthen regional ties, as well as economic interests. Both the governments of Kyrgyzstan and Uzbekistan are keen on the construction of the railway.
"Kyrgyzstan and Uzbekistan will become a bridge that provides the connection between Europe and Asia. Therefore, as stated by the President of Uzbekistan Shavkat Mirziyoyev, global challenges and new challenges make alternative transport corridors essential," ANKASAM said.
Global Gateway: EU and its Member States to mobilise €10 billion for South-East Asia (European Commission)
During the EU-ASEAN Commemorative Summit, the EU and its Member States, in a Team Europe approach, announced the mobilisation of €10 billion as part of Global Gateway to accelerate infrastructure investments in ASEAN countries.
This package will focus on the green transition and sustainable connectivity in South-East Asia, underpinned by two Team Europe Initiatives: the Sustainable Connectivity Initiative and the Green Team Europe Initiative.
Investments will focus on energy, transport, digitalisation, education and promote trade and sustainable value chains. They will support South-East Asia's transition to a green economy, better access to essential services, and economic opportunities and jobs.
RCEP - Hong Kong seeks early accession to world's largest free trade agreement (Lexology)
The Hong Kong government expects to begin discussions next year to join the Regional Comprehensive Economic Partnership (RCEP). RCEP, the largest free trade agreement ever, should have the effect of lowering tariffs, expanding services trade, harmonising rules of origin and, for Hong Kong, establishing its role as a vital gateway into the fifteen cities of the Greater Bay Area. The Hong Kong government is predicting an early accession to the agreement.
Hong Kong is readying itself to join RCEP, the world's largest free trade agreement. The agreement, which entered into force on 1 January 2022 for most of its member states, covers 30 per cent of the world's population (2.2 billion people), with a combined gross domestic product (GDP) of US$38 trillion, about a third of global GDP.
Accession into RCEP will offer Hong Kong preferential tariffs for its member countries; improved mechanisms for addressing non-tariff barriers, including customs procedures, quarantine, and technical standards; and a common set of rules on intellectual property, trade, and e-commerce.
Global value chains in turbulent times (EBRD)
Two large shocks to the global economy – the Covid-19 pandemic and Russia’s invasion of Ukraine – have caused major disruptions to global value chains (GVCs) in the EBRD regions.
But how are firms in GVCs coping, and what is the EBRD doing to help them survive and even prosper through the turmoil?
A new paper by EBRD economists Beatrice Ravanetti and Peter Sanfey provides answers by drawing on a recent EBRD enterprise survey, covering more than 800 firms across 15 EBRD countries, and on selected examples of recent interventions by the Bank.
China calls US 'destroyer' of global trading system at WTO (Reuters)
GENEVA, Dec 14 - China accused Washington on Wednesday of using subsidies to prop up national industries and refusing to abide by the rules of the World Trade Organization.
China's ambassador to the WTO Li Chenggang said in a speech that he was disappointed in the U.S. trading record, saying it had not lived up to President Joe Biden's inaugural pledge to lead "by the power of our example".
"The United States puts 'America First' by prevailing its domestic laws over international rules and (the) laws of others, disregarding WTO rules and concerns of other members," he told a closed-door U.S. trade policy review at the Geneva-based WTO.
Explainer: What Nigeria-Seychelles deal means for tourism (Businessday)
The Federal Government of Nigeria recently signed a Bilateral Air Service Agreement (BASA) with Seychelles, one of the biggest tourism destinations in the world.
BASA is an air transport agreement between two countries that allows designated airlines to operate commercial flights, covering transportation of passengers and cargoes.
Advocates for BASA say if well utilised, it will promote air services and connectivity between two countries, enhance business, and promote tourism.
Dubai International Chamber opens new Cairo office, boosting bilateral trade between Egypt, UAE (ZAWYA)
The Dubai International Chamber — one of the three chambers operating under Dubai Chamber — has opened a new international representation office in Cairo on Sunday, reinforcing strong business links between Egypt and the UAE.
- The strategic step is part of the Dubai Global initiative launched by Dubai to attract foreign investment, talent, and new business to reinforce the emirate’s position as one of the world’s leading commercial hubs while enabling Dubai-based companies to expand their business in 30 priority markets overseas.
Related News
tralac Daily News
Local news
Kenya plans to remove all trade barriers with Tanzania by the beginning of 202
(Business Insider Africa)
The decision was made to bolster trade between the two nations and increase the volume of locally made goods exchanged between them. According to Kenya’s High Commissioner to Tanzania, Mr. Isaac Njenga, both governments have already set plans in motion to remove all outstanding trade tariffs between them before the end of January. He stated during the Jamhuri Day celebrations in Dar es Salaam, that the visit from the President of Kenya, already propelled the removal of over 50 non-tariff obstacles, thereby enhancing the bilateral trade between Kenya and Tanzania.
Our commitment to resolving Non-Tariff Barriers (NTBs) has significantly contributed to the growth in trade between our two countries,” the high commissioner said.
Breaking down fiscal figures Mr. Njenga disclosed that Kenya’s exports to Tanzania increased to Ksh45.6 billion in 2021 from Ksh 31.4 billion in 2020. He also added that imports from Tanzania have practically doubled from Ksh27.2 billion in 2020 to Ksh50.1 billion in 2021, while total trade was boosted from Ksh58.6 billion in 2020 to 95.7 billion in 2021.
According to the high commissioner, one of the key reasons for removing the trade barriers is to encourage citizens from both economies to participate in free trade and look within Africa for solutions they might otherwise have had to import from an overseas market.
Kenyan High Commissioner urges promotion of intra-African trade to boost job creation …as Kenyan tea
(BusinessGhana)
The Kenyan High Commissioner in Accra, Mr Eliphas Mugendi Barine, has urged Africans to promote intra-Africa trade activities to boost job creation within the region. He said to collectively contribute to the prosperity of the continent, Ghanaians like all people of Africa, must buy made in Africa goods to create jobs, incomes and retain wealth in Africa. Mr Barine made the appeal at the launch of the Kenya Value Added Tea dubbed “Ketepa’’ into the Ghana market in Accra yesterday.
The Ketepa tea which was imported into Ghana from Kenya, the biggest exporter of tea, by a tea merchant, Mr Michael Nartey. Ketepa has 15 varieties of flavours including lemon, ginger, caramel, mint, and mango.
Ghana to deepen economic ties with Kenya
(BusinessGhana)
Ghana will continue to strengthen its economic corporation with Kenya by harnessing the potential of intra-African trade, the Deputy Minister for Tourism, Arts and Culture, Mr Mark Okraku Mantey has said.
“The African Continental Free Trade Area AfCFTA headquartered in Accra, provides yet another incentive to strengthen economic corporation, explore trade and investments opportunities, and contribute to Africa’s accelerated socio-economic growth”, he added.
He further said that, he was hopeful the establishment of the Ghana-Kenya Business Council and the Bi-National Commission would enhance the trade and economic dimensions of the bilateral relationship between the two countries.
Mr Barine in his remarks said African governments had worked hard to provide the needed enabling environment in transacting business which included the establishment of AfCFTA. He therefore urged the industries in the private sector to take advantage and leverage on AfCFTA to improve their businesses with a much more focus on value addition.
80 per cent poultry ventures fold up — Association
(BusinessGhana)
The increasing importation of cheap frozen chicken for the local market, coupled with the lack of adequate support to the industry in the country, has led to about 80 per cent of poultry farmers’ businesses folding up, with the rest struggling to cope. According to an EU data on chicken exports, Ghana has been the leading importer of chicken in Africa for the past five years, with 227,903 tonnes imported in 2021.
In line with that, the Ghana National Association of Poultry Farmers (GNAPF) has made a passionate appeal to the government and other stakeholders to intervene to save the sector from total collapse. The Chairman of the association, Victor Oppong Adjei, who made the appeal, said apart from the high cost of inputs, unfair competition from importers of chicken had deprived the country of over one million jobs along the value chain.
Higher productivity can shape the future of Côte d’Ivoire’s growth
(World Bank)
Productivity is the ultimate driver of economic growth. Almost half of the difference in per capita income across countries is explained by differences in total factor productivity (TFP). The creation of higher productivity jobs is central to achieve sustained inclusive growth in sub-Saharan Africa (SSA) as countries face the challenge of progressing along the income per capita ladder and reaping demographic dividends, with millions of youths entering the labor force.
How can countries achieve this? A recent World Bank Country Economic Memorandum (CEM), Sustaining the Growth Acceleration, asks this question for Côte d’Ivoire. As the country envisions to double its GDP per capita by 2030, how can the recent growth acceleration - dubbed “the second Ivorian miracle”- be sustained?
African trade and integration
New report shows need for greater action if Africa is to hit SDG, Agenda 2063 targets
(AfDB)
The coronavirus pandemic, the war in Ukraine, and climate change have all hampered Africa’s progress toward meeting the Sustainable Development Goals (SDGs). With 2030 less than 8 years away, most African countries are struggling to meet the SDG targets. Without renewed efforts, nearly 492 million Africans will be left in extreme poverty with at least 350 million still in that condition in 2050.
The African Union Commission (AUC), the United Nations Economic Commission for Africa (ECA), the African Development Bank and the United Nations Development Programme (UNDP) jointly released a status report on the SDGs during the African Economic Conference 2022 taking place currently in Mauritius.
Building Back Better from the Coronavirus Disease, While Advancing the Full Implementation of the 2030 Agenda for Sustainable Development evaluates Africa’s progress towards the SDGs and the African Union’s Agenda 2063 in the context of the triple crises of COVID-19, climate change, and the war in Ukraine. All three have hampered the continent’s performance toward both sets of targets.
“Africa can no longer wait on the margins, and the time is now for the continent to rechart its development path and own its development agenda”, said Ms Ahunna Eziakonwa, Assistant Administrator and Regional Director for Africa, UNDP.
Transform challenges into opportunities, says ECA Executive Secretary
(UNECA)
The United Nations Economic Commission for Africa, (ECA) Acting Executive Secretary, Antonio Pedro, has called for the forging of strong partnerships and innovative strategies to tap new opportunities in the wake of economic and environmental crises affecting African countries. Opening the three-day ECA Expo at the United Nations Conference Center in Addis Ababa today, Mr. Pedro said with technological advancement and digitalization of the economy, it was clear during the pandemic that the crisis ‘was a low hanging fruit for regional integration and for harnessing the demographic dividend on the continent’.
Conceding that Africa was that the world, in general and the African continent in particular, was facing new and complex challenges and opportunities as reflected in the impacts of climate change geopolitical tensions with ramifications in food and energy crises, Mr. Pedro said innovation was needed to manage the challenges.
He said COP27 presented new investment opportunities on the continent to create carbon credit markets, deploy renewable energy and find solutions to the energy transition for the rest of the world. At the same time Covid 19 demonstrated opportunities in Africa to participate in the development of the pharmaceutical value chain, for instance.
The African Continental Free Trade Area (AfCFTA) agreement which he described as Africa’s Marshall Plan, will ensure seamless operation of new vehicles to make trade and investments within the continent and the global market.
Food security is national security
(CGTN)
Despite containing 60 percent of the world’s uncultivated arable land, Africa has been a net food importer for decades. According to the most recent estimates, food imports are the biggest budget item for many countries across the continent. Amid surging food prices and an appreciating U.S. dollar, Africa’s food bill has soared as well, undermining African countries’ economic growth, debt sustainability, and political stability.
According to the Brookings Institution, Africa spent around $43 billion on food imports in 2019. Due to the current inflationary environment, most recent estimates are probably higher, especially in a region where high import dependence exacerbates the pass-through from global to local food prices.
At the same time, the supply-chain disruptions caused by the COVID-19 pandemic and exacerbated by the war in Ukraine have highlighted the potential costs of Africa’s reliance on food imports. Food security is, after all, national security. African countries have learned this the hard way over the past two and a half years, as supply-chain bottlenecks and protectionist policies have reduced access to key agricultural commodities and led to dramatic price increases.
Africa’s green economy necessary to develop infrastructure
(ESI-Africa)
Africa is full of potential infrastructure project opportunities, many of them investment-ready to support the continent’s burgeoning green economy.
So says Hendrik Malan, CEO and partner at Frost & Sullivan, one of the expert speakers who will address the upcoming Africa’s Green Economy Summit which takes place from 22 to 14 February, 2023.
“There is a great need and availability of funding to be spent on the continent. We just need to fix the missing link and carry through projects to a financial close to finally close the infrastructure gap,” continued Malan.
Frost & Sullivan recently presented a report at COP27 entitled Showcasing AFRICA’S Investable Infrastructure Opportunities in which they point out that African governments’ progress on achieving both SDGs and African Union Agenda 2063 has been to slow and inconsistent at both regional and industry levels.
(Farmers Review Africa)
The African Development Bank and the Worldwide Fund for Nature (WWF), have launched a regional report on the performance of African countries under the Strategic Plan for Biodiversity 2011-2020 . The report highlights the important role that multilateral development banks can play in meeting biodiversity targets by providing advisory services, capacity building, market research, and linkages with other relevant partners. The assessment, launched on the sidelines of the UN Biodiversity summit (COP15) in Montreal, Canada, is based on the 6th National Reports on biodiversity submitted by African countries in 2018 -2020.
Prof. Kalemani Jo Mulongoy, President and co-founder of the Institute for Enhanced Livelihoods and former Head of the Scientific, Technical and Technological Matters Division of the Secretariat of the Convention on Biological Diversity, presented the findings of the report.
She said, “For Africa, it is critical to adopt a framework with targets that will not only curb the loss of biodiversity but will enhance opportunities to improve the lives of many Africans, especially those depending on biodiversity for their survival, bearing in mind Africa’s biodiversity priorities.”
Africa has lowest travel restrictions since 2016
(ICLG.com)
Travel is easing throughout Africa, with visa restrictions at their lowest level since 2016, according to the African Development Bank’s (AfDB) annual Africa Visa Openness Index (AVOI). The index, produced in collaboration with the African Union Commission, confirmed that two-thirds of African nations introduced less restrictive visa requirements compared to six years prior.
The AVOI, published every year since 2016, measures the level of restrictions for citizens from other African nations to visit each country in the continent. The report considers the number of visa requirements each nation holds, including which nationalities need a visa to enter, which do not, and which may gain a visa upon entry.
This year marked a return to pre-pandemic norms, with the report noting Africa’s AVOI aggregate score had exceeded its pre-pandemic level as the continent opened and economies welcomed the influx of fresh business, tourism and investment opportunities.
Significant barriers have been lowered in the years since 2016, with 27% of all Africans conducting intra-Africa travel able to travel without a visa, rising from 20% in 2016. Meanwhile, an additional 27% of travel situations allow for a visa to be secured upon arrival, a rise from 25% in 2016. Across intra-Africa travel, 47% of scenarios required a visa before travel, compared to 55% in 2016.
AAFA calls for prioritising AGOA Renewal at US-Africa Leaders Summit
(Fibre2Fashion)
The American Apparel & Footwear Association (AAFA) and more than 20 organisations have appealed for long-term renewal of the African Growth and Opportunity Act (AGOA). The apparel industry of US, in a letter to President Joe Biden, urged the government to prioritise this request at the ongoing US-Africa Leaders Summit that will end on December 15, 2022.
The organisations emphasised on the timely renewal of AGOA for a 10-year period, so that it would be impactful for companies hoping to grow commitments towards a vertical, responsible, and competitive industry in Africa over the next dozen years, according to AAFA president and CEO Steve Lamar.
Steve Lamar said: “AGOA’s expiration date is less than three years away. September 2025 may sound like a distant date, it is actually no time at all for the continuity, certainty, and commitment needed for our industry’s supply chains to grow and thrive in the region.”We are also at a pivotal juncture to significantly enhance the work opportunities for a traditionally underserved population – African women.”
Prosper Africa Plans to Invest $170M to Boost African Exports
(East African Business Week)
At the U.S.-Africa Business Forum’s Deal Room, the White House’s Prosper Africa initiative announced today an ambitious set of multimillion-dollar investments to boost African exports and infrastructure and mobilize private investment to accelerate African innovation.Prosper Africa is the U.S. Government initiative to increase two-way trade and investment between African nations and the United States.The announcement was made in the Business Forum’s Deal Room – held on the second day of the U.S.
Africa Leaders’ Summit – which brought together African heads of state, and U.S. and African investors, business leaders, and government officials to advance trade and investment partnerships that create jobs and drive inclusive and sustainable growth on both sides of the Atlantic.
In the Deal Room, hosted by Prosper Africa, U.S. and African businesses and investors announced new and expanded commitments for the first time in a live, five-hour broadcast.
FACT SHEET: New Initiative on Digital Transformation with Africa (DTA)
(The White House)
At the U.S.-Africa Business Forum on December 14 in Washington, DC, as part of the U.S.-Africa Leaders Summit, President Biden announced the launch of a new Digital Transformation with Africa (DTA) initiative. A signature initiative of the Biden-Harris Administration, DTA will expand digital access and literacy and strengthen digital enabling environments across the continent. Working with Congress, this initiative intends to invest over $350 million and facilitate over $450 million in financing for Africa in line with the African Union’s Digital Transformation Strategy and the U.S. Strategy Toward Sub-Saharan Africa.
Africa’s digital ecosystem offers massive potential to spur economic recovery, promote opportunity, advance social equality and gender equality, and create jobs. Africa’s digital transformation has opened new markets for U.S. exports and services; deepened partnership among African governments, the U.S. private sector, educational institutions, and the African diaspora; and increased productivity, competitiveness, and e-government service delivery.
With new technologies transforming the way Africans live and work, DTA will foster an inclusive and resilient African digital ecosystem, led by African communities and built on an open, interoperable, reliable, and secure internet.
This initiative will also seek to empower women and other marginalized people through and within the digital ecosystem. DTA aims to help countries rebuild economies impacted by the COVID-19 pandemic and advance U.S. national security, diplomatic, commercial, and development priorities. It will also advance commitments to invest in global infrastructure, including digital connectivity, under the Partnership for Global Infrastructure and Investment.
(Ahram Egypt)
The US lawmakers stressed that Egypt is a main ally for the US in the Middle East region, praising Egypt’s balanced and wise endeavours to reach settlements for different regional crises, Egyptian presidential spokesman Bassam Rady said in a statement. They also hailed the successful Egyptian efforts in countering terrorism and extremist thought and promoting religious tolerance.
El-Sisi has been in Washington since Tuesday night to participate in the three-day US-Africa Leaders Summit, during which President Joe Biden is set to announce his administration’s support for the African Union (AU) to become a permanent member at the Group of 20 (G20).
The summit, hosted by US President Joe Biden, aims to enhance cooperation between the two sides, including in economic engagement and commitment to democracy and human rights.
During the summit, El-Sisi will be focusing on a host of issues of concern to African countries amid the current global challenges to strengthen African-American partnership in confronting the food security crisis, Rady said on Tuesday. El-Sisi will also stress on means to facilitate the integration of African countries into the global economy to benefit from the available opportunities to achieve economic growth, transfer technology, and drive foreign investment.
Cooperation with China brings better infrastructure, more jobs, sustainable development to Africa
(Xinhua)
Having seen African people benefit from the decades-long cooperation with China, which ushered in newer infrastructure, more job chances and greater momentum for the continent’s sustainable development, Malian Foreign Minister Abdoulaye Diop told Xinhua he deems the partnership “a friendly cooperation between brothers.”Indeed, a slew of cooperation projects and productive mechanisms for equal dialogue have all become clear proof of China-Africa cooperation that is carried out in line with the principles of sincerity, real results, affinity and good faith, and with commitment to the greater good and shared interests.
“Today, the outcomes of China-Africa cooperation are all over the African continent. The roads, railways, airports, ports, high-rise buildings, stadiums and other structures that China helped build can be seen everywhere,” said Chinese Ambassador to Liberia Ren Yisheng in a recent article published in Liberian media.
Since the existing infrastructure gap acts as a drag on Africa’s economic growth, cooperation in upgrading infrastructure is of particular relevance for the continent. The African Development Bank reckoned that improved infrastructure will facilitate Africa’s domestic and international trade, reduce business costs and enhance competitiveness both as an exporter and an investment destination.
Global economy
Global trade set to hit record $32 trillion in 2022, but outlook increasingly gloomy for 2023
(UNCTAD)
Global trade should hit a record $32 trillion for 2022, but a slowdown that began in the second half of the year is expected to worsen in 2023 as geopolitical tensions and tight financial conditions persist, according to the latest Global Trade Update, published by UNCTAD on 13 December. Despite the war in Ukraine and the lingering impact of the pandemic, trade in both goods and services have seen strong growth this year. Trade in goods grew 10% from last year to an estimated $25 trillion, due in part to higher energy prices. Services were up 15% to a record $7 trillion.
“Economic growth forecasts for 2023 are being revised downwards due to high energy prices, rising interest rates, sustained inflation in many economies, and negative global economic spillovers from the war in Ukraine,” the report says. “The ongoing tightening of financial conditions is expected to further heighten pressure on highly indebted governments, amplifying vulnerabilities and negatively affecting investments and international trade flows.”
(US Chamber of Commerce)
The U.S. Chamber of Commerce’s U.S.-Africa Business Center (USAfBC) and the African Continental Free Trade Area Secretariat (AfCFTA) signed a Memorandum of Understanding (MoU) today to launch a working group to help advance trade and investment between the U.S. and Africa and reaffirm commitment to elevating a strong private sector voice in AfCFTA implementation.
Scott Eisner, President of the U.S.-Africa Business Center, said, “Coordination between the private sector and the AfCFTA is key to unlocking Africa’s full economic potential. As the world’s leading business organization, the U.S. Chamber of Commerce is proud to be a strong voice for private sector business, which is a major stakeholder and beneficiary of the AfCFTA. The creation of today’s working group will provide a key platform for members of the U.S.-Africa Business Center to engage with policy experts and senior government officials on issues critical to the U.S.-Africa trade and investment space, with a particular focus on the digital economy, trade facilitation and customs modernization, and value chains development.”
Related News
tralac Daily News
Local news
South African economy slowly recovering post-pandemic – TIPS (Engineering News)
The latest ‘Real Economy Bulletin’ (REB), published by economic research institution Trade and Industrial Policy Strategies (TIPS) on December 8, points to an upswing in South Africa’s economy and its trade and investment performance, with gross domestic product (GDP) exceeding pre-Covid-19 levels for the first time. This outcome points to considerable resilience, especially around private-sector adaptations to the extraordinarily high levels of loadshedding over the past quarter. The latest REB points out that GDP grew by 1.6% in the third quarter, reaching R6.7-trillion and showing stronger-than-expected resilience to loadshedding and continuing volatility in the global economy.
Manufacturing sales grew 12.7% in real terms between September 2020 and September this year, being 7% higher in September than before the pandemic. The key sectors contributing towards this included food and beverages, and automotive sales.
In terms of international trade, South Africa’s trade balance has continued to narrow, with export prices softening while growth has brought a surge in inputs.
In the third quarter, South Africa’s trade surplus narrowed to R50.7-billion from R73-billion in the second quarter, but remains extraordinarily high by historic standards.
Illicit and counterfeit trade fuels organised crime and is a growing threat to SA’s economic recovery (Daily Maverick)
One of the cornerstones of a functional economy is a supportive regulatory and policy environment that supports business growth, job creation and improves the living standards of the majority. In a South African context, this also means protecting businesses from the growing threat and risk to economic order and the fiscus from the impact of illicit trade.
Although the Consumer Goods Council of South Africa (CGCSA) has previously highlighted the destructive impact of illicit trade to businesses, job security and the health of consumers, the magnitude of the problem now requires an even more robust response and intervention from the government, working together with other stakeholders, among them business and law enforcement.
The problem has become so pervasive that it is now estimated more than R100-billion is being lost annually to illicit trade in a wide range of products in South Africa.
South Africa tops list of Iran’s African trade partners (Mehr News Agency)
“Imports from the African country during the same period stood at $6.5 million,” Rouhollah Latifi was also quoted as saying by the news portal of Iran Chamber of Commerce, Industries, Mines and Agriculture, Financial Tribune reported. Last fiscal year (ended March 2022), he added, $255 million tons of products were exported from Iran to South Africa with the main product being urea ($218 million).
Ghana’s structural transformation gets boost with economic enclave project (Ghana Business News)
Ghana’s quest to transform the structure of her economy from import-driven to a self-sufficient and export-oriented one, has received a boost by a public-private partnership to enhance the agriculture value chain. The Government on Friday launched the Economic Enclave Project, in the Eastern Region under the GH¢100 billion Ghana COVID-19 Alleviation and Revitalisation of Enterprises Support (Ghana CARES) programme to anchor such projects. The public-private partnership project, which has the Millennium Development Authority (MiDA), as the implementation lead, has 10,000 acres of land under development for end-to-end improvement in the agriculture ecosystem.
It is aimed at increasing productivity, enhancing storage, processing of major food staples and enabling access to ready market – to improve food security, reduce importation and increase the income of farmers and others in the agriculture value chain.
The project seeks to expand Ghana’s productive capacity in rice, tomato, maize, soya, vegetables and poultry – mostly imported, add value to those staples and make markets to then easily accessible.
Gabon Country Economic Memorandum: Toward Greener and More Inclusive Growth (World Bank)
In recent years, Gabon has positioned itself as a climate champion, undertaking a series of actions toward a green economy – with a strategy centered on agriculture, mining, sustainable fishery and timber resources, clean energy, and ecotourism. Its commitment to protecting forests and reducing greenhouse gas emissions is bearing fruit, as Gabon is the first country in Africa to receive a payment from the UN-hosted Central African Forest Initiative (CAFI). The country can continue to embrace a green economic transformation to reduce growth volatility and over-reliance on natural resources, unlocking opportunities for diversification, job creation, and stronger economic resilience.
Yet, despite its abundant natural wealth, growth has been slow to reduce poverty. Gabon is an upper-middle income economy, but real GDP per capita was 20% lower in 2020 than in 1990 and a third of its citizens live below the $5.50/day poverty line. Although Gabon’s economic base has expanded to wood, mining and services industries, lack of economic diversification remains a challenge. Gabon is one of the most highly commodity-dependent economies in the world, with oil, manganese and other extractives accounting for 98% of merchandise exports in 2021. As a result, the country’s growth, exports, and finances are still highly vulnerable to volatile global commodity prices.
African trade and integration
Africa: Industrialization Trapped in Limbo Despite All Efforts (IDN InDepthNews)
Jobless and weighed down by idleness, 53-year-old Jasper Mhandu, in the Zimbabwean capital, now has to spend time sited at a street corner chatting with gangs of drug-taking jobless youths in Highfield, a poor income suburb here. Mhandu used to work for a clothing factory that shut its operations in 2007 when Zimbabwe’s comatose economy forced many firms to close down. 15 years later, nothing has changed for many Zimbabweans like Mhandu, with no functioning industry to turn to while more and more jobless young people join him. Yet that is not the story for Zimbabwe alone.
In neighbouring South Africa, despite the country being famed for being Africa’s economic powerhouse, industries have been closing down as the economy falls apart.
Even as South Africans have over the years blamed foreigners for taking their jobs, economists there have painted a gloomy picture of the country’s deteriorating industrialization. De-industrialization is happening instead.
Digitalization will turbocharge the African Continental Free Trade Area (UNECA)
The Economic Commission for Africa (ECA) has launched two key publications making a case for Africa’s participation in global value chains and leveraging digitalization and furthering trade under the African Continental Free Trade Area (AfCFTA)
In remarks at the launch of the two publications, Deputy Executive Secretary and Chief Economist of the Economic Commission for Africa, Hanan Morsy, highlighted how Africa can leverage digital technologies and participate in global value chains.
Burundi ranks as second most visa-open in East Africa (The East African)
Burundi’s immigration policies for other Africans have improved significantly, with the country’s visa openness ranking rising by 32 places in the year and becoming the second most open country in the East African Community (EAC) bloc.
According to a new report by the African Development Bank (AfDB), Burundi’s rise, mostly since 2021, is a result of Bujumbura accepting all travellers from Africa into the country either on visa-free travel (all East Africans) or visas on arrival (all other Africans). Burundi does not have electronic visas yet, but it does not require Africans to apply for entry permits before travelling to its territory.
Burundi’s decision to allow all Africans to travel without visa applications helped it rise from position 44 to 12, making it one of the most improved countries on the continent’s visa openness ranking alongside Benin, Nigeria and Ethiopia.
In the bloc, The Africa Visa Openness Report 2022 shows that Rwanda is still the highest-ranked country on visa openness, allowing visitors from 18 African countries without visas, while granting visas to all other Africans on arrival. It was ranked 5th in Africa, behind Benin, Seychelles, the Gambia and Ghana.
SA ranks among the lowest for Africa visa openness (BusinessLIVE)
Countries that have removed visa requirements have seen their tourism and travel economies thrive 12 December 2022 - 05:05 Thuletho Zwane SA continues to rank among the lowest in Africa for visa openness — a measure that refers to the percentage of other countries in Africa whose citizens are permitted to enter a country’s territory without having obtained a visa before arrival. African states a
ISS TODAY OP-ED: Free trade and cross-border mobility must be enabled for Africa to prosper (Daily Maverick)
Africa Has Resolved to Implement Single Air Transport Market, Says Sirika (This Day)
The Minister of Aviation, Senator Hadi Sirika, has said that Africa had resolved to implement a Single Air Transport Market in Africa (SAATM) to advance liberalisation. This is coming as the Nigerian Civil Aviation Authority (NCAA) disclosed that it was seeking its removal from the public service sector.
Sirika made this known at the weekend during his closing remarks at a five-day International Civil Aviation Organization (ICAO) Air Services Negotiation Event (ICAN2022) in Abuja.
He said that SAATM, being a flagship project of the African Union Agenda 2063, would boost the continent`s economic integration agenda. “It will also open the borders to connect the whole world. “Aviation ought to play its role in connecting our markets, places, friends and families among others,” the minister said.
Effective logistics key to a more connected, diverse EAC market (Business Daily)
On March 29, 2022, the Democratic Republic of Congo, sub-Sahara’s largest country, officially joined the East African Community (EAC), making it the 7th member after Kenya, Uganda, Rwanda, Tanzania, Burundi, and South Sudan. This move was welcomed in the region and is a testament to the increasing maturity of the EAC. Over the years, the EAC has made tremendous progress in terms of investments in trade-related infrastructure.
As the DRC becomes integrated into EAC’s trade infrastructure, manufacturers within the partner states stand to benefit greatly from economies of scale, making them increasingly efficient and competitive. For one, DRC’s entry into the EAC offers a new market with a combined GDP of approximately $275 billion and an economy of over 285 million people (World Bank report, 2020).
The opening up of these trade routes means that more cargo will traverse these African blocs, and regional business owners and investors can participate in a robust value chain that stimulates business growth, cooperation, and unlimited investment opportunities.
Africans in diaspora are the continent’s largest financiers through remittances – AfDB President (Businessday)
The President, of the African Development Bank Group, Akinwumi Adesina, has said that Africans in Diaspora are critical for Africa’s economic development as they constitute the continent’s largest financiers through remittances. Adesina stated this at the event, on ‘Development Without Borders: Leveraging the African Diaspora for Inclusive Growth and Sustainable Development in Africa’ organised by the Bank in collaboration with the African Union Commission, the International Organisation for Migration, and the African Continental Free Trade Area Secretariat.
The AfDB President said: “The value of remittances from the African diaspora doubled from $37 billion in 2010 to $87 billion in 2019, reaching $95.6 billion by 2021. Yet official development assistance to Africa in 2021 was $35 billion, or 36 percent of the remittances from the diaspora. Egypt and Nigeria are among the top-ten remittance recipients globally, with $31.5 billion and $19.2 billion, respectively in 2021. The African diaspora has become the largest financier in Africa! And it is not debt, it is 100 percent gifts or grants, a new form of concessional financing that is the key for livelihood security for millions of Africans.”
The 17th African Economic Conference ended on Sunday with a charge to the development community and governments to take decisive actions to address climate change. The African Development Bank, United Nations Economic Community for Africa, and United Nations Development Programme, the conference hosts, called on participants to walk the talk by producing concrete solutions for climate-smart development on the continent. Participants asserted that achieving net zero emissions—the crux of the three-day conference—can be accomplished if all stakeholders are robustly engaged, including providing the right environment for public-private partnerships.
“Africa is the region that is most vulnerable in the face of climate change,” said Mauritius’ Minister of Finance, Economic Planning and Development, Renganaden Padayachy. The scourge of climate change poses a threat to lives, he cautioned.
“And if we limit climate change, we will change lives,” he said at the closing of the three-day conference, which had an in-person attendance of over 350 delegates, with thousands more participating online. AEC 2022 provided a timely forum to discuss innovative solutions to support climate-smart development in Africa.
Africa faces hurdles to energy transition (DW)
During a recent “Africa Roundtable,” meeting, politics, business, and civil society experts discussed strategies for achieving a just energy transition on the African continent. They also talked about strengthening the resilience of countries in the face of food insecurity. The talks — entitled “Europe and Africa, together for a just energy transition” — were head in the capital of Senegal, Dakar. DW was the media partner for the event — it was a first on the African continent. While Europe is working on its Green Deal, many African countries still face challenges with electrification. Nearly half of the sub-Saharan region (which has a population of approximately 600 million) has no access to electricity.
Energy experts said that African countries would only be able to achieve the transition towards a sustainable economy, which at the same time conserves the environment, if they had access to new production technologies, such as electric batteries, solar panels, or wind turbines.
“The paradox is that the continent has strong underexploited potential for energy production, but lacks the necessary technologies for their use,” Al-Hamndou Dorsouma, head of the climate change and green growth department at the African Development Bank (AfDB), told DW. “During this roundtable, Europeans and Africans were able to identify how to move forward concretely on the issue,” he added.
Developed countries asked to finance climate change in Africa (UNECA)
The African Economic Conference 2022 kicked off on Friday in Balaclava, Mauritius, with speakers in the first plenary session calling for the continent to find alternative models of climate financing away from debt instruments. Speaker after speaker reminded developed countries to keep their promise to help pay for the damages caused by climate change in Africa. African governments were also advised to improve their governance systems to attract private financing to mitigate against climate change. The theme of the three-day conference is “Supporting Climate-Smart Development in Africa” and comes at a time when the continent’s challenge of climate change has been aggravated by the war in Ukraine and the Covid-19 pandemic.
Building inclusive innovation and technology ecosystems must be at the heart of efforts to leverage the potential of innovation and technology to support the economic, social, and political development of women and girls in Africa. These were some of the key issues highlighted at the 67th pre-Commission on the Status of Women in Africa (Pre-CSW67) Ministerial consultations convened by the African Union Commission in partnership with UN Women, ECA, ITU, and UNDP from 29 November to 1 December 2022.
Consultations heard that technology and innovation have proved a positive disruptor in Africa, accelerating progress in terms of financial inclusion, creating new jobs, improving access to healthcare, providing information on agricultural practices, and opening virtual spaces for citizens to engage on governance concerns.
Delegates further noted that while technology and innovation are being hailed as crucial means to accelerate the achievement of the Sustainable Development Goals, the statistics on access, beneficiaries and who influences their development are pointing to disparities between and among the sexes. According to the International Telecommunications Union (ITU), in Africa, women account for only 24% of the population using the internet, while men account for 35% of users. Thus, delegates stressed that ensuring that these technological developments do not widen the digital gender divides was crucial.
Speaking at the opening ceremony of the ministerial segment of the consultations, Ms. Prudence Ngwenya, Ag. Director, African Union Commission – Women, Gender and Youth Directorate called for the Common Africa Position to be translated into implementable actions and mainstreamed into the work that governments are doing towards achieving gender equality and women’s empowerment, “Empowering women and girls through the provision of meaningful access to the internet and innovative technologies could undoubtedly provide them with opportunities to start businesses, and to access education, health, social as well as financial services.” said Ms. Ngwenya
The Economic Commission for Africa’s Deputy Executive Secretary, Hanan Morsy, has called for investment in climate-smart development for Africa to achieve economic transformation amidst economic and environmental challenges. “Climate-smart development in Africa is the only development model that will unleash the continent’s potential to achieve its development aspirations,” Ms. Morsy said at the opening of the 2022 African Economic Conference on 9 December in Balaclava, Mauritius. The three-day conference is being held under the theme, Supporting climate-smart development in Africa.
Noting that African countries were the most vulnerable to climate change while they contributed the least to global greenhouse gas emissions, Ms. Morsy remarked that Africa needs to close huge development gaps by investing substantially in climate-vulnerable key sectors such as energy, agriculture, transport, water and cities.
Farmers to get cheaper fertiliser via e-wallets (Business Daily)
Farmers will receive fertiliser subsidies for the main season through e-wallets as the government moves to curb theft and misappropriation by middlemen of the crucial planting material through the use of technology. President William Ruto has directed the Ministry of Agriculture to ensure that the technology to aid this process is ready by the end of the year. The government had in 2020 rolled out the e-voucher programme in a pilot phase, but it was only directed to small-scale farmers in selected counties who received money through their mobile phones to purchase the farm inputs from approved agro vets.
Agoa comeback under threat from Africa free trade deal (The East African)
The US government is exploring ways of renewing a preferential trade programme that gives countries in sub-Saharan Africa preferential access to US markets, allowing them to export products tariff-free. President Joe Biden wants to improve on the African Growth and Opportunity Act (Agoa) which comes to an end in 2025, to tap into Africa’s expanding integration. The proposals could be put on the table as Biden prepares to host his first physical US-African Summit to be held on December 13 in Washington. This is despite the fact that, after nearly two decades of Agoa benefits, many East African Community states have failed to fully utilise the programme.
Rwanda, Ethiopia, Guinea and Mali, across the continent, were even suspended from the trade facility. Now these countries are a part of the fledgling Africa Continental Free Trade Area Agreement (AfCFTA), a 2018 trade deal meant to link up regional blocs to one another through trade.
US-Africa set to face-off on duty-free trade pact at summit (Engineering News)
The US’s resolve to claw back lost influence in Africa will be put to the test this week when dozens of the continent’s leaders and officials gather for three days of talks with their American counterparts in Washington. A top priority of President Joe Biden’s US-Africa Leaders Summit, which aims to increase cooperation on some of the world’s most pressing issues, will be to map out the future of market access.
Global economy
It’s time to put productive capacities at the heart of every development strategy (Trade for Development News)
Over the past two decades, the 46 least developed countries (LDCs) have recorded relatively robust economic growth, averaging an annual rate of 5.7% from 2001 to 2019. However, this growth has not necessarily translated into improved development outcomes: many LDCs are still plagued by poverty, food insecurity and inequality. These conditions worsened during the COVID-19 pandemic, when LDCs registered their worst socio-economic performance since the 1980s. Barring a few exceptions, LDCs have a limited capacity to react to exogenous shocks, which makes their socio-economic progress fragile. A number of factors undermine their resilience, notably limited economic diversification and human capital development and weak production systems.
This situation can be explained by a low level of productive capacities. These are the productive resources, entrepreneurial capabilities and production linkages that determine a country’s ability to produce goods and services that, ultimately, help it grow and develop.
UNCTAD’s index reveals that LDCs have the weakest productive capacities in the world, with a median productive capacity index (PCI) score of 23.6, compared to 32.4 for other developing countries. Furthermore, LDCs lag behind other developing countries across all PCI sub-categories, including natural capital, human capital, energy, ICTs, transport, private sector, institutions and structural change.
World Trade Congress on Gender closes with call for further action on women’s empowerment (WTO)
“Trade has the power to change women’s lives for the better. I am convinced of this. But it works only if trade policies incorporate gender equality issues to level the trade field for women. This has yet to occur, inequalities persist, as indeed we learnt over the last few days of this Congress,” said Anoush der Boghossian, the Head of the WTO Trade and Gender Unit.
“The Congress marks the first time that we put in direct contact WTO members and researchers in the area of trade and gender,” DDG Ellard said. Civil society representatives also featured as speakers in the Congress and in the closing session. “I hope that you found the Congress useful in allowing you to exchange ideas,” DDG Ellard added.
DDG González: Multilateral trading system must do more to avert food security crisis (WTO)
In her opening remarks, DDG González highlighted the seriousness of the food crisis that the world is facing due to an array of factors, the COVID-19 pandemic, the war in the Black Sea region, high inflation and a potential economic recession, and the effects of climate change. Citing the latest figures of the UN Food and Agriculture Organization, she noted that food prices, despite dropping from their peak in March this year, still remain 2 per cent higher than last year. Notably, the global food import bill is forecast to surge to an all-time high in 2022, exceeding USD 2 trillion, and the global agricultural input import bill (mainly fertilizer) is forecast to reach around USD 424 billion in 2022, a leap of 50 per cent compared to 2021.
DDG González said that in the face of pressing challenges, trade has a crucial role to play in ensuring global food security, since “trade feeds one in every six people around the world”. She drew attention to WTO members’ quick action in response to the food crisis, highlighting their success in reaching three outcomes at the 12th Ministerial Conference (MC12) in June this year which have food security at their core. These include a declaration on the emergency response to food insecurity, a decision to support World Food Programme food purchases, and a sanitary and phytosanitary (SPS) declaration to modernize the SPS Agreement, which regulates food, animal and plant standards.
She warned of the worrying trend of export restrictions since the outbreak of the war in Ukraine, noting that 33 members and observers had introduced 72 export-restrictive measures on food and feed and six on fertilizers, of which only 20 have since been phased out. She urged governments to implement the MC12 outcomes, refrain from export restrictions and promote free trade at a time of crisis. “No one country can go it alone, whether on food, vaccines and pharmaceuticals, or any other product,” she emphasized.
DDG Ellard welcomes launch of first-ever study on trade and disability (WTO)
‘Just Transition’ policies needed to create 20 million green jobs: UN report (UN News)
Launched by the International Labour Organization (ILO), UN Environment Programme (UNEP) and International Union for Conservation of Nature at the UN’s Biodiversity Conference (COP15) in Montreal, the Decent Work in Nature-based Solutions report underscores the need for greening the economy in a way that is fair and inclusive, creating meaningful work opportunities for all. “It is critical that as we scale up the use of Nature-based Solutions (NbS) we make sure we do not also scale up decent work deficits, such as the informal work, low-pay and low productivity conditions that many workers in NbS currently face”, said Vic van Vuuren, Director, ILO Enterprises Department.
“The ILO’s Just Transition Guidelines provide a framework to help us do this”.
Tackling debt and climate challenges in tandem: A policy agenda (UNCTAD)
Climate-related shocks are growing in intensity and frequency while the ability of developing countries to address mounting climate challenges is heavily impaired by unsustainable debt burdens. Achieving climate-resilient structural transformation will require many of them to take on more debt. This policy brief highlights the growing overlap between debt and climate vulnerabilities in developing countries and the urgent need for improved access by vulnerable countries to financing on terms consistent with both long-term sustainable development and debt sustainability.
It proposes a policy agenda that focuses on a reform of the international debt architecture and on scaling-up public-led and affordable development financing for climate investments.
G20 meet in Mumbai to focus on least developed, island nations (The Economic Times)
The G20 Development Working Group (DWG) meeting to be held in Mumbai under Indian presidency between December 13-16 will discuss developmental issues in developing countries, least developed countries and island countries, in keeping with the country’s leadership goals for the Global South.
India will focus on accelerating the progress on achieving the sustainable development goals (SDGs) of the United Nations, by raising the profile of development issues throughout the G20 working streams, said people aware of the matter. The emphasis will be on transformative areas and transitions that can catalyse multiplier effects on SDGs such as women-led development, digital transformations and just green transitions, they said.
According to experts, financing is key to achievement of the 2030 agenda goals. The Covid-19 pandemic has severely hampered efforts of developing countries towards meeting SDG targets by restricting fiscal space, with the SDG financing gap estimated to have increased at least 20%. During India’s presidency, one of the DWG’s priorities includes designing a strategy that will focus on finding solutions to accessing affordable development finance that “will not trap a country”.
Related News
tralac Daily News
Local news
‘Technology, innovation transforming Zimbabwe industry’ (Chronicle)
ZIMBABWE’S bold stance to harness innovation and technology as a medium for industrialisation through value addition is transforming the country’s economy and creating more job opportunities for locals, Industry and Commerce Minister, Dr Sekai Nzenza, has said.
In a presentation on “The potential of modern technology, accelerating Africa’s development” during the Fourth German-Africa Business Summit in Johannesburg, South Africa yesterday Dr Nzenza said embracing technology has become more critical as the country and the continent seek to enhance economic resilience to prevailing global shocks.
Leveraging innovation and technology has come under focus in view of climate change complications, the need to create jobs for the growing youthful population, enhancing food production systems and generating adequate energy, among others, said the minister.
Kenya eyes duty-free deal with 3 countries (Business Daily)
The cabinet says negotiations with the US, South Korea and the United Arab Emirates on the Free Trade Area are ongoing as Kenya seeks to expand access to its products beyond the regional and traditional markets. The cabinet on Tuesday noted that negotiations with these countries have started with the view to enhancing duty-free and quota-free access of Kenyan goods to these lucrative markets. The government also revealed that trade talks between Europe and the US are back on track as the country ramps up market access for its goods with the expected coming to an end of duty-free access of Kenyan products to America under the African Growth and Opportunity Act which is set to expire in 2025.
Kenya’s Economic Recovery Remains Strong, Although Slowed by Drought and Inflation (World Bank)
Kenya’s economy continued to rebound from the pandemic in 2022 with real gross domestic product (GDP) increasing by 6% year-on-year in the first half of 2022, driven by broad-based increases in services and industry. This recovery was dampened by global commodity price shocks, the long regional drought, and uncertainty in the run up to the 2022 general elections.
The 26th edition of the Kenya Economic Update (KEU) notes that the ongoing drought and the cost-of-living increases have affected households throughout the country. The agriculture sector contracted by 1.5% in the first half of 2022 and, with the sector contributing almost one fifth of GDP, its poor performance slowed GDP growth by 0.3%
One-stop borders are trade boosters (Zambia Daily Mail)
WHILE Zambia has recorded increased trade volumes over the past years, commerce with other countries in southern Africa and beyond still needs to be improved for it to attain desired development levels.
Surveys have identified impediments to trade growth and competitiveness and established that while the movement of goods and people along highways is relatively fast, time is lost at borders and checkpoints.
Zambia has been collaborating with some of its neighbouring countries in establishing OSBPs. So far, Zambia has established OSBPs at Nakonde-Tunduma border in collaboration with Tanzania, Kazungula OSBP with Namibia, and the Chirundu facility, which serves Zambia and Zimbabwe. The Chirundu facility is the first fully functional OSBP in Africa.
Angola’s Economic Diversification and Development Potential are Inextricably Linked to Climate Resilience (World Bank)
As the impacts of climate change increasingly threaten people’s lives and livelihoods across the country, it will be critical for Angola to use the revenues from its remaining oil wealth to invest in climate resilience and intensify efforts to diversify its economy, says the new World Bank Country Climate and Development Report (CCDR) for Angola.
To drive economic growth, create good jobs, and improve living conditions, Angola can tap into its renewable resources such as water, fertile land and solar and wind potential to boost productivity in agriculture and fisheries. At the same time, there are opportunities to significantly increase the production of renewable energy, while reducing gas flaring, venting, and fugitive methane emissions.
‘Nigeria loses 50% of crops produced yearly’ (The Nation Newspaper)
Director-General, Feed Nigeria Summit Secretariat, Richard Mbaram, says Nigeria loses about 50 per cent of crops yearly due to inadequate storage facilities which is impeding the growth of the agricultural sector.
Mbaram, who stated this yesterday in Abuja during a briefing with the All Farmers Association of Nigeria (AFAN), said microbes and fungi bring about the challenges. He stated that the challenges had led to a shortfall in production as demands were not being met by the suppliers from the localities. This, he said, made it impossible for consumption or export.
The combined effects of adverse weather, acute foreign exchange shortages, disruptions to electricity, and the high rate of inflation, mean Malawi continues to face an economic slowdown, according to the latest World Bank’s Malawi Economic Monitor (MEM). It says power cuts are affecting the industrial and service sectors and high inflation the private sector and households.
The 16th Edition of the Malawi Economic Monitor, titled, Planning Beyond the Next Harvest: Advancing Economic Stability and Agricultural Commercialization shows the emerging impacts of the economic crisis where higher government spending continues to widen the fiscal deficit, exerting pressure on the government’s fiscal consolidation plans. Malawi’s public debt is currently assessed to be in distress, though ongoing debt restructuring negotiations will help ensure debt sustainability over the medium term.
Tunisia, Cote d’Ivoire ink deal to strengthen trade relations (The North Africa Post)
Tunisia and Cote d’Ivoire’s Chambers of Commerce and Industry signed last Tuesday a Memorandum of Understanding (MoU) to bolster trade relations between the two countries as the North African country seeks to conquer the West African country’s market.
The signing took place on the sideline of a business trip to the West African country by 70 Tunisian business people operating agri-food, health, information and communication technologies (ICT), insurance and building and construction sectors, Dec. 04-08, Faapa news agency reports.
Union of Comoros declares its readiness to ride on the AfCFTA and expand its export base (UNECA)
Mr Ahmed Ali Bazi, Minister of Economy, Industry, and Investments of Comoros says that there is no doubt the country will soon ratify the Africa Continental Free Trade Area (AfCFTA) to facilitate greater trade opportunities to the rest of the continent as an important option for financing sustainable development. The Minister was speaking during a meeting organized by the UN Economic Commission for Africa (ECA) under the funding of the European Union.
The finalization of the Comoros AfCFTA Implementation Strategy follows a series of sensitization campaigns and technical review meetings that started early in 2022 and which rounded up various stakeholders from the public and private sectors.
African trade and integration
COMESA develops regional policy on solar products (The Herald)
The Common Market for Eastern and Southern Africa (COMESA) has developed regional policy frameworks to assist member states curb the proliferation of low-quality solar energy products in the region. The low-quality products have eroded the confidence in the reliability of solar energy as a viable solution to electrification challenges in the COMESA region.
The frameworks will also address the issue of variances in customs duties across the region and the proliferation of low-quality solar energy products which have eroded the confidence in the reliability of solar energy as a viable solution to electrification challenges in the COMESA region.
A call for African businesses to join global public procurement market (Africa Renewal)
As Africa continues to grapple with a myriad of challenges, several continental and broader international efforts have focused on not only helping countries get out of economic challenges, but to reach their aspirations for prosperous lives for their people.
The UN recognizes that “industrialization, with strong linkages to domestic economies, will help African countries achieve high growth rates, diversify their economies and reduce their exposure to external shocks. This will substantially contribute to poverty eradication through employment and wealth creation.” Against this backdrop, every UN Secretary-General has urged all parties to ramp up their efforts to increase the capacity of homegrown African companies to successfully bid on development projects in their own back yards.
AGOA and the US-Africa opportunity for accelerating shared prosperity (African Business)
The 2022 US-Africa Leaders Summit brings US-Africa economic relations into acute focus. The US aspires to become a premier economic partner to Africa and ranks as the top import market globally. Africa now represents the world’s largest free-trade area by population with over 1.3bn people and, based on the Africa Free Continental Trade Agreement (AfCFTA) of 2018, more African countries view increasing intra-Africa trade as the critical path to realising sustainable economic development.
How can these priorities of both regions be advanced? One step in the right direction is by increasing the utilisation of the Africa Growth and Opportunity Act (AGOA) through the following approaches: i) AGOA support of intra-Africa trade through strengthening supply chains in Africa; ii) African Diaspora engagement as a first order approach and not an ancillary strategy; iii) and the integration of trade policy with investment and marketing for African businesses.
Industrial development and climate action are ‘mutually dependent’ – Habeck (Engineering News)
German Vice Chancellor Robert Habeck, who is also Minister of Economic Affairs and Climate Action, argues that there can no longer be a trade-off between industrial development and climate action. Speaking at the fourth German-African Business Summit in Sandton on Wednesday, Habeck said that the approach being pursued by the German government was premised on creating new markets and industrial opportunities that included climate action. “My ministry is called the Ministry for Economic Affairs and Climate Action . . . and this is because we made a decision that climate action and industrial growth are not in opposition – they belong together.” The approach, he added, had been adopted on the basis that “environmental sustainability and economic prosperity will be mutually dependent”.
Cf as commodity prices surge again MENA countries can draw lessons from the past (IMF)
The current commodity price boom is affecting the region’s commodity exporters and importers differently. Commodity exporters are benefiting from a marked improvement in their terms of trade, while commodity importers are feeling the pain of higher imported energy and food prices. A key question is how countries are managing this boom relative to past experience, particularly as the current commodity price shock is occurring in a global and regional context that is distinct from previous episodes.
Our latest Regional Economic Outlook examines how MENA countries are responding to high commodity prices and protecting the vulnerable. This task is much harder for commodity importers, where fiscal space is limited. In contrast, the challenge for commodity exporters is to leverage the surplus from high energy prices to build buffers against future shocks and make progress with their transition and diversification plans.
Global economy
Developing countries face ‘impossible trade-off’ on debt: UNCTAD chief (UN News)
Speaking in Geneva, Rebeca Grynspan said that between 70 and 85 per cent of the debt that emerging and low-income countries are responsible for, is in a foreign currency. This has left them highly vulnerable to the kind of large currency shocks that hit public spending – precisely at a time when populations need financial support from their governments. Ms. Grynspan – speaking at the 13th UNCTAD Debt Management Conference - explained that so far this year, at least 88 countries have seen their currencies depreciate against the powerful US dollar, which is still the reserve currency of choice for many in times of global economic stress. And in 31 of these countries, their currencies have dropped by more than 10 per cent.
Overview of developments in the international trading environment (WTO)
The global economy continues to face multiple challenges: continuing impacts of the pandemic, the repercussions of the war in Ukraine, high inflation — particularly for food and energy prices, and several climate change-related events that disrupted economic activity. In October we downgraded our outlook for international trade: we now forecast merchandise trade volumes will grow by just 1.0% in 2023, well below the 3.4% we had estimated in April.
The Report shows that since 2020, Members have increasingly implemented new trade restrictions, in particular on the export side, first in the context of the pandemic and more recently in the context of the war in Ukraine and the food security crisis.
Trade and gender congress opens with call for inclusive, research-backed path to recovery (WTO)
“Crises are not gender neutral. We need to act, and we need to act now,” DG Okonjo-Iweala said to kick off the first international research conference on trade and gender, which is taking place on 5-7 December at the WTO in Geneva, Switzerland.
Thirty researchers from around the world are set to present their latest findings on harnessing gender-responsive trade policies to help economies recover from the polycrisis of the pandemic, the war in Ukraine, high energy and food prices, and climate change, which the Director-General noted has widened the economic and social divide between men and women.
Officials from least-developed countries outline trade priorities at Geneva seminar (WTO)
The seminar seeks to explore ways of enabling LDCs to become more integrated into the multilateral trading system. Discussions are focusing on the outcomes of the WTO’s 12th Ministerial Conference (MC12) from the perspective of LDCs, the evolving trading environment, trade capacity-building and ways of strengthening the multilateral trading system. A total of 35 government officials have travelled to Geneva from 24 LDCs across the world.
DDG Zhang highlighted that the MC12 Outcome Document refers to many topics of interest to LDCs, keeping them at the centre of WTO discussions.
“The LDCs face daunting challenges - be it accessing markets, producing goods, linking the small businesses to bigger platforms, tapping into the opportunities from digital trade and other emerging trends,” Finland’s Ambassador Kirsti Kauppi, chair of the Sub-Committee on LDCs said.
Food Security Has Become A Central Priority For Many Emerging Markets (OilPrice.com)
Food security became a central priority for many emerging markets in 2022, against the post-Covid-19 pandemic backdrop of supply chain shocks, natural disasters and high commodity prices. While the second UN Sustainable Development Goal, promulgated in 2015, aims to end hunger by 2030, The Economist’s Global Food Security Index (GFSI) has fallen consistently over the last three years from a peak its 2019.
the fifth day of the COP27 UN Conference on Climate Change in Sharm El Sheikh, Egypt, which took place in November 2022, focused on adaption and agriculture, aiming to boost the resilience of food systems in the face of increased climate-change-driven natural disasters, most notably flooding in Pakistan and West and Central Africa.
While the pandemic highlighted the importance of global supply chains and Russia’s invasion of Ukraine exacerbated these problems, climate change-driven disasters – especially drought and flooding – caused the most damage to global food security in 2022.
Significant funding will be needed to help emerging markets develop disaster-proof agriculture sectors. According to a 2021 report by the Global Centre on Adaptation, sub-Saharan Africa will require $15bn in annual investment to adopt climate-change resilient food and agriculture systems.
Related News
tralac Daily News
Local news
South African cement industry to approach Itac for general tariff protection (Engineering News)
Cement and Concrete South Africa (CCSA) is preparing an application for generalised tariff protection on imported cement, arguing that antidumping duties against exporters from specific countries are taking too long to secure and are failing to safeguard the industry from what it regards as unfair competition. Despite having a yearly cement production capacity of about 20-million tons, the domestic industry is producing only 12-million tons currently, with more than one-million tons of cement being imported yearly.
CCSA CEO Bryan Perrie tells Engineering News that no decision has been made regarding the level of protection that will be requested, with investigations still under way. He also stresses that any tariff decision, which is likely to face stiff opposition from importers, rests entirely with the International Trade Administration Commission of South Africa (Itac), which will have to weigh up the economic costs and benefits of introducing protection.
DRC reveals security and trade as drivers of Kenya’s strategic goals (Capital News)
Kenya defended its most recent deployment of troops to the Democratic Republic of Congo (DRC) saying the move was aimed at protecting her ‘strategic interests’ which is code for expanding trade between the two States. There is also the issue of safeguarding investments worth millions of dollars by Kenyan companies operating in DRC.
This is not the first time Kenya is sending boots to DRC. Since 1999, Kenya has been part of the UN peacekeeping missions in the troubled central African nation. This time, Kenya has deployed an active military contingent as part of the East African Community regional force to stabilize the eastern part of the country. However, Kenya has been cautious to frame its military involvement as being about securing her interests, perhaps alive to the risk of getting sucked into the vortex of competing local and foreign interests that have been feeding off the vast mineral and natural wealth of DRC for decades.
Nairobi appears keen on charting a different path focused on trade and investment as opposed to extraction of resources, which would put it in direct competition with local and foreign interests involved in the legal and illegal exploitation of gold, diamonds, timber and other natural resources, in the process getting mired in the seemingly interminable conflict in DRC.
Pursuing a stronger bilateral trade relationship gives Kenya significant economic leverage over Kinshasa without being perceived as a ‘foreign exploiter’ not to mention significantly reduced risk of full military engagement that would be costly in the long run.
And to buttress this trade-not-resources policy, some large Kenyan businesses in the financial and telecommunication sectors have recently invested millions of dollars in DRC.
DRC becoming a member of the EAC trading bloc this year opened more opportunities to accelerate Kenya’s economic interests in this large but untapped market of over 95 million people.
Govt. calls for greater collaboration to tackle woes in sugar sector (Kenya Broadcasting Corporation)
Crop Development Principal Secretary Kello Harsama has reiterated the need for a joint collaborative approach to address the challenges bedevilling the sugar industry. He decried the perennial problems and challenges plaguing Kenya’s sugar cane farmers despite the sector’s enormous potential in contributing to the national economy. “The sugar industry continues to face hurdles which have resulted in inadequate production of sugar for the national market,” Harsama stated. The challenges, Harsama said, manifest in form of the high cost of production, huge debt portfolio by state-owned millers, obsolete technologies, and small-scale farming that hampers the farmers to enjoy economies of scale.
He added that poor market integration and unfavourable market competition for cheaper sugar produced within COMESA countries and imports from other nations have led to higher inefficiencies that undermine the viability of the sector.
Niger Finance Minister Rebuffs Pressure To Drop Oil Drive (Barron’s)
Niger’s finance minister says lack of support from rich countries makes it impossible for his impoverished nation to abandon revenue from oil. The landlocked Sahel state has launched a scheme to build Africa’s longest pipeline, shuttling crude oil over nearly 2,000 kilometres (1,250 miles) to a port in Benin.
Environmental campaigners are dismayed about initiatives that perpetuate the use of climate-damaging fossil fuels. But in an interview with AFP, Finance Minister Ahmat Jidoud said Niger had no alternative. “Right now it’s not possible,” he said. “It is important for us to be able to exploit our own resources until the conditions are there for the climate transition to unfold,” he said.
Zambia opts for Carbon markets to empower communities (Farmers Review Africa)
As countries seek to mitigate and adapt to the impact of climate change, Zambia wants to tap into carbon trading to raise funds with due consideration for the beneficiation of various communities as it envisions to migrate into a green economy. The increasing surge of climate crisis on developing countries, chiefly in Africa and other Least Developed Countries beyond the continent has continued heightening but Zambia, like many of the affected countries on the African continent, and despite contributing a paltry 4% to the global emission, Africa is devising options of raising capital as part of the benefit sharing mechanism its people.
Permanent Secretary in the ministry of Green Economy and Environment, John Msimuko says it was vital for the country to prepare for now and the future on how to fight climate change effects by raise own capital for mitigation.
African trade and integration
Africa deserves right to use natural gas reserves – AfDB President (Blueprint Newspapers)
The right of African countries to use their natural gas reserves should be reflected in any deal at the COP27 climate talks, the president of the African Development Bank told Reuters, even as some nations push to see use of the fuel curtailed. Agreeing a deal on fossil fuels is among the key sticking points at the talks, with some countries including India keen to phase down the use of all such fuels, including gas, sources said.
A preliminary document from the conference hosts arrived late on Monday and made no mention of fossil fuels. While it forms the basis of any agreement, the all-important final wording has yet to be hammered out.
Agenda 2063: Africans ‘need to find synergies and work together’ (The Citizen)
Agenda 2063 may be 41 years ahead, but newly appointed African Union Development Agency (Auda) chief executive Nardos Bekele-Thomas is confident that the continent’s blueprint for transforming Africa into a global powerhouse of the future is not far-fetched.
Addressing a media briefing in Johannesburg yesterday – along with African Union goodwill ambassador and globally acclaimed artist Yvonne Chaka Chaka – Bekele-Thomas said although Africa was endowed with natural resources, it resembled “a continent of paradox, with very high poverty levels”. “Beneficiation of our natural resources is very crucial and Africa has to ensure that it has the right policies, legal framework and the right environment for businesses to operate,” said Bekele-Thomas.
Financing energy project development in Africa (Engineering News)
Raising capital for energy projects and building sustainable pipelines is complex in a market that is challenged by demand for fossil fuels, while simultaneously trying to satisfy carbon-neutral policies and commitments. Data shows that despite Africa’s sizeable population, it only attracts sub-5 % of global energy investment. Undoubtedly, Africa is abundant in opportunities and resources, but many of the continent’s countries have yet to unlock barriers to trade and prove themselves to be reliable global partners. The countries that stand to benefit from energy project development and attract meaningful investments are those with governments that seek to lower risks through pricing reforms, transparent tendering systems, strong anti-corruption law enforcement, and the development of skilled labour.
African e-payments Could Grow to Reach $40billion by 2025 (The Fintech Times)
The success of Africa’s fastest-growing start-up industry has been driven by a range of trends. Increasing smartphone ownership, reduced internet costs, expanded network coverage, and a young, fast-growing population have all helped grow African fintech. The African fintech industry’s continuing success has the potential to quickly advance Africa’s global competitiveness; with an increasing amount of fintech services exported globally. Despite the success, it has become clear that the industry is not without its obstacles. Regulatory differences between countries on the continent are slowing down the expansion of financial inclusion across Africa. Calls for a pan-African regulatory body that can define policies have been also been heard. However, a body such as this does not appear particularly close to being created.
According to McKinsey & Company’s ‘The future of payments in Africa’, Africa’s domestic e-payments market is expected to see revenues grow by approximately 20 per cent per year. By 2025, the market is expected to reach around $40billion.Despite the difficulties, Africa has made moves to ease payment constraints. The ‘PanAfrican Payment and Settlement System’ development by the African Continental Free Trade Area has made it easier to make payments across 50 countries and their 40 currencies.
African ministers call for urgent action to address liquidity and food challenges (UNECA)
African Ministers of Finance, Planning and Economic Development have called for a swift and decisive collective action to address the growing liquidity challenges and food and energy insecurity on the continent. They were speaking during a meeting of the High-Level Working Group on the Global Financial Architecture (the Group), held on the margins of the 2022 Annual Meetings in Washington DC to discuss Africa’s urgent financial needs amid worsening global economic conditions and recurring global shocks.
After a year of intense negotiations and a difficult global economic outlook, development partners of the African Development Fund (ADF) have agreed to commit a total package of $8.9 billion to its 2023 to 2025 financing cycle. It is the largest replenishment in the history of the Fund. ADF is the concessional window of the African Development Bank Group, providing grants and soft loans to the continent’s low-income countries.
The $8.9 billion replenishment package includes $8.5 billion in core ADF funding and $429 million for the newly created Climate Action Window.
SADC conducts electronic Certificate of Origin workshop (SADC)
A five-day training workshop for customs officers and customs brokers from four Southern African Development Community (SADC) Member States, namely Eswatini, Malawi, Namibia and Zambia was conducted in Johannesburg, South Africa, from 28th November to 2nd December 2022. The training was organised by the SADC Secretariat, Finance, Investment and Customs (FIC) Directorate with support by the European Union-SADC Trade Facilitation Programme under the 11th European Development Fund (EDF 11). The overall training objective was to equip border managers and key customs brokers from clearing firms that have a presence at the borders with the right skills and knowledge in handling clearance of goods which have been issued with a SADC Electronic Certificate of Origin (e-CoO).
The e-CoO was officially launched in Blantyre, Malawi, in September 2022 as a modern trade facilitation instrument which contributes to ease of doing business and promotes integrity and environmental protection, after the successful completion of the development and test of the e-CoO module of Eswatini, Malawi and Zambia.
New Frameworks to Harmonize Tariffs and Standards for Energy Products in the Region (COMESA)
The Common Market for Eastern and Southern Africa – COMESA has developed regional policy frameworks that will assist Member States to improve the quality of solar products that are allowed into the region and achieve the ease the doing of business across borders due to predictable duty regimes. This is intended to address the proliferation of low quality of solar energy products which have eroded the confidence in the reliability of solar energy as a viable solution to electrification challenges in the COMESA region. Studies have also revealed that the high level of variances in customs duties across the region has been a hindrance to trade and adoption of off grid renewable technologies.
The frameworks so far developed are the COMESA Model Solar Standards, the COMESA Model Common Customs Tariff Framework for Solar Products and COMESA Model Energy Policy. These were presented to experts in energy, customs and standards from Member States for validation in a workshop conducted in Lusaka, Zambia, on 5 – 7 December 2022.
The EAC Secretary General Hon. (Dr.) Peter Mathuki has handed over laboratory equipment and consumables to the Focal Points of the EAC Affairs Ministries on behalf of National Plant Protection Organizations (NPPOs) in the Partner States under an EAC-GIZ project called “Improvement of Regional Trade with Seed Potatoes in Eastern Africa.” The aim of the project is to provide framework conditions for the development of trade in seed potatoes through support to development of regional strategies and action plans, capacity development of NPPOs in SPS measure as well as development and harmonization of regional seed potato standards.
Speaking during the handover ceremony at the EAC Headquarters in Arusha, the Secretary General disclosed that the equipment is expected to be a game changer in the Partner States seed potato trade especially in strengthening the technical and implementation capacity of staff and laboratories to effectively operationalize required Sanitary and Phytosanitary (SPS) measures to facilitate seed potato trade in the region.
Germany to Boost Aid for African Deals in Move Against China (Bloomberg)
Germany is set to increase its state guarantees for business investments in African countries, a move aimed at diversifying trade relations and to make it more independent from China. “There will be additional incentives to invest in regions like sub-Saharan Africa where we want more German investments and more German trade,” Economy Minister Robert Habeck said opening a German-African business conference in Johannesburg on Wednesday.
The announcement reflects Germany’s strategy to diversify its global trade relations following Russia’s invasion of Ukraine. Habeck recently tweaked the country’s foreign risk insurance to reduce the country’s focus on China. Habeck, who is also Vice Chancellor, views the African continent as an ideal place to boost the production of renewable energies as an alternative to Russian gas.
Opening statement by Minister of State Katja Keul at the German-African Business Summit 2022 (Germany Federal Foreign Office)
New strategy to kickstart the bioeconomy in East Africa (Stockholm Environment Institute)
SEI played a leading role in a partnership to develop a Regional Bioeconomy Strategy for East Africa, the first of its kind for the continent. The Strategy will catalyze policies for sustainable, bio-based and inclusive economic growth in the region. In the face of rapid population growth, policymakers in Eastern Africa are under pressure to grow economies, create new jobs and provide better opportunities for young people and women. At the same time, it is crucial to protect the environment and ecosystems, and ensure resilience to climate change impacts and disease.
The bioeconomy will play a key role in overcoming these challenges. In Eastern Africa, as throughout the world, countries and businesses are making the bioeconomy a priority, and asking how to transform bio-based sectors to support sustainable economic growth and development. To achieve a transformation of this kind, policymakers in the region need to work in partnership and set out a strategic direction.
Global economy
Covid-19 spurs growth of e-commerce in Kenya, study reveals (Capital Business)
The Covid-19 pandemic has unlocked the growth of e-commerce opportunities, with millions of consumers preferring to shop online. This is according to a recent global survey conducted by MARCO, a Madrid-based communications agency. Dubbed “MARCO Survey: Post-COVID-19 Consumption Behaviour II”, the survey, conducted from May to June, covers more countries and is a sequel to “MARCO Research: Post Covid Consumer Behaviour” carried out in April to May 2022. In Africa, the survey was conducted in Kenya, South Africa, Morocco, and Ivory Coast.
World leaders call for stronger multilateral solutions to debt crisis (UNCTAD)
Stronger multilateral solutions are urgently needed to tackle the debt crisis facing developing countries, UNCTAD Secretary-General Rebeca Grynspan said at the opening of the organization’s 13th Debt Management Conference. The event, which runs from 5 to 7 December in Geneva and online, takes place as a wave of global crises has led many developing countries to take on more debt to address the needs of their populations.
Government debt levels as a share of GDP increased in over 100 developing countries between 2019 and 2021. Excluding China, this increase is estimated at about $2 trillion.
UNCTAD advocates for the creation of a multilateral legal framework for debt restructuring and relief. Such a framework is needed to facilitate timely and orderly debt crisis resolution with the involvement of all creditors, building on the debt reduction programme established by the Group of 20 major economies (G20) known as the Common Framework.
Debt-Service Payments Put Biggest Squeeze on Poor Countries Since 2000 (World Bank)
The poorest countries eligible to borrow from the World Bank’s International Development Association (IDA) now spend over a tenth of their export revenues to service their long-term public and publicly guaranteed external debt—the highest proportion since 2000, shortly after the Heavily Indebted Poor Countries (HIPC) initiative was established, the World Bank’s new International Debt Report shows.
The report highlights rising debt-related risks for all developing economies—low- as well as middle-income economies. At the end of 2021, the external debt of these economies totaled $9 trillion, more than double the amount a decade ago. During the same period, the total external debt of IDA countries, meanwhile, nearly tripled to $1 trillion. Rising interest rates and slowing global growth risk tipping a large number of countries into debt crises. About 60% of the poorest countries are already at high risk of debt distress or already in distress.
Member states press EU to amend sanctions to unblock Russian food shipments (Financial Times)
Leading EU member states are calling on Brussels to tweak its sanctions on Moscow to make a clearer exemption for supplies of Russian grain and fertiliser, claiming the current rules are delaying vital shipments to poor countries. Germany, France and the Netherlands are among the countries urging the European Commission to introduce an amendment clarifying the sanctions around Russia’s food exports, according to a position paper seen by the Financial Times. African nations struggling with shortages of food and agricultural feedstocks have attacked the EU sanctions. Macky Sall, Senegal’s president and chair of the African Union, claimed the continent had become “collateral damage” in the western allies’ clampdown on Russia.
Report shows increase in trade restrictions amidst economic uncertainty, multiple crises (WTO)
WTO Director-General Ngozi Okonjo-Iweala called on WTO members to refrain from adopting new trade-restrictive measures, particularly export restrictions, that can further contribute to a worsening of the global economic outlook and urged them to cooperate to keep markets open and predictable in order to allow goods to move around the world to where they are needed.
“Members have increasingly implemented new trade restrictions, in particular on the export side, first in the context of the pandemic and more recently in the context of the war in Ukraine and the food security crisis. Although some of these export restrictions have been lifted, many others persist,” she said. “Out of the 78 export restrictive measures on food, feed, and fertilizers introduced since the start of the war in late February, 58 are still in place, covering roughly USD 56.6 billion of trade. These numbers have increased since mid-October, which should be a cause for concern.”
Related News
tralac Daily News
Local news
South Africa could lose 100 000 jobs if car manufacturing doesn’t decarbonise, Gungubele warns (Engineering News)
South Africa’s manufacturing sector needs to move urgently towards producing electric vehicles, or around 100 000 jobs could be wiped out in the next five years as key export destinations move to ban petrol and diesel cars, Minister in the Presidency Mondli Gungubele has warned. The European Union has given local vehicle exporters until 2030 to decarbonise the sector, after which they will stop importing internal combustion engine vehicles assembled in South Africa.
GDP rises by 1.6% (SAnews)
South Africa’s gross domestic product (GDP) increased by 1.6% between July and September, Statistician-General Risenga Maluleke, announced on Tuesday. The main attributors, Statistics South Africa (Stats SA) said, were the agriculture, forestry and fishing industries, which increased by 19.2% in the third quarter, contributing 0.5 of a percentage point to GDP growth. During this period, said Stats SA, increased economic activities were reported for field crops and horticulture products.
Stats SA said the manufacturing industry during this period increased by 1.5%, contributing 0.2 of a percentage point to GDP growth.
“There was a R63 billion build-up of inventories in the third quarter of 2022 (seasonally adjusted and annualised value). Large increases in three industries contributed to the inventory build-up, namely trade, catering and accommodation; transport, storage and communication; and mining and quarrying. “Net exports contributed positively to growth in expenditure on GDP in the third quarter. Exports of goods and services increased by 4.2%, largely influenced by increased trade in mineral products; base metals and articles of base metals; vegetable products; and paper products,” Stats SA said. Imports of goods and services increased by 0.6%, driven largely by increases in mineral products and animal and vegetable fats and oils.
Cannabis has a Huge Potential for SMMES Based in Rural Areas (the dtic)
The Deputy Minister of Trade, Industry and Competition, Ms Nomalungelo Gina says the cannabis sector has a huge potential for the Small, Medium and Micro Enterprises (SMMEs) located in the rural areas where poverty is concentrated. Gina was speaking during the Agriculture and Land Summit in Bergville, KwaZulu-Natal today. The aim of the summit was to identify gaps and explore opportunities in the agricultural sector value chain within the district and the province. The summit was also aimed at promoting and developing the agricultural sector within the municipality for both commercial and small-holder farmers, as well as promoting youth and women participation in the agricultural sector.
Kenyan diaspora community unveils plans to bolster remittances (Capital FM Kenya)
The Kenyan diaspora community is exploring ways in which the government could bolster diaspora remittances and investment opportunities in the country, chairman of the Kenya Diaspora Alliance Shem Ochuodho has announced. Ochuodho who exuded confidence in the Kenya Kwanza regime’s creation of a diaspora portfolio said that they are set to engage the government on new investment opportunities and how to create jobs for Kenyans who are at home and abroad as
Through an upcoming investment conference, Ochuodho explained they were championing a mind shift from the negative African narrative and advocating for respect, building business partnerships on a win-win basis, and bringing back Africa into their rightful place in geopolitics and international trade.
This year’s convention dubbed Kenya Diaspora Alliance Homecoming is set around the Theme: Inclusive Growth – Leveraging Diaspora Resources.
Zambia’s Sensitization workshop discusses role of private sector in 8th NDP and SDGs (UNECA)
The private sector and more especially now, when the country is faced with a constrained fiscal position, is key to actualising our envisaged economic transformation and creation of jobs for our people,” says Zambia Minister of Finance and National Planning, Hon. Situmbeko Musokotwane in an official opening speech delivered on his behalf by the Permanent Secretary Mr. Trevor Kaunda.
Why Nigeria plans to simplify import substation for AfCFTA – NIPC (Nairametrics)
The Nigerian Investment Promotion Commission (NIPC) said that in order to attract FDI under the African Continental Free Trade Agreement (AfCFTA), FG will simplify import substitution to facilitate exports and save forex. This was disclosed by the Executive Secretary of the Nigerian Investment Promotion Commission (NIPC), Saratu Umar, after meeting with President Muhammadu Buhari on Friday. She disclosed that the President fully supports the drive to strengthen the investment drive in Nigeria.
Weak export drags down Nigeria’s trade balance by 86% (Vanguard)
Nigeria has recorded a negative trade balance quarter-on-quarter, QoQ, as export declined by 19.8 percent to N5.93 trillion in the third quarter of 2022, Q3’22, from N7.4 trillion in Q2’22, while import bill rose 4.2 percent to N5.66 trillion from N5.43 trillion.
As a result of the negative development in the export sector the total foreign trade recorded a 10 percent decline to N11.59 trillion in Q3’22 from N12.84 trillion in Q2’22, while the trade balance fell quarter-on-quarter (QoQ) by 86 percent to N269.3 billion in the Q3’22 from N1.97 trillion in Q2’22.
These were contained in the National Bureau of Statistics, NBS, Foreign Trade in Goods Statistics report for Q3’22 released yesterday.
Nigeria moves to become gateway to AfCFTA, signs MoU with Vietnam (Nairametrics)
The Nigerian government, in a bid to boost trade with South East Asia and maximize the African Continental Free Trade Area (AfCFTA) agreement, has announced plans to make $336 billion exporter Vietnam use Nigeria as a gateway into the African market. This was disclosed by Vice President Yemi Osinbajo in a statement on Monday night following his ongoing state visit to one of Asia’s largest exporters. The Nigerian government also stated it will support Vietnam’s quest to establish relations with ECOWAS and is prepared to sign, specifically trade and industry agreements. Vice President Osinbajo stated that there are vast opportunities for cooperation and collaboration between Nigeria and Vietnam, especially in the digital economy space.
Ethiopia: African Development Bank’s New 2023-2027 strategy to help spur economic transformation (AfDB)
On 17 November 2022, the African Development Bank Group Board of Directors approved the 2023-2027 Country Strategy Paper for Ethiopia. The key objective of the Strategy is to support Ethiopia in expanding inclusive and sustainable growth through agro-industrialization, improved connectivity and competitiveness and reduced vulnerability to shocks. The blueprint focuses on two priority areas: i. improving economic and financial governance for greater resilience, enhanced service delivery and private sector growth, and ii. developing quality and sustainable infrastructure to support Ethiopia’s agro-industrialization.
African trade and integration
Plans to put more One Stop Border Post at entry points (Capital FM Kenya)
The government is working on modalities to establish one stop border posts in all entry points to ease and promote trade and other mutual benefits with neighbouring countries. State Department of East African Community (EAC) Principal Secretary (PS) Abdi Dubat said that currently the operational One Stop Border Posts include Taveta, Lungalunga, Namanga, Isebania, Busia, Malaba and Moyale. Speaking in Nairobi on Monday when he took over from the immediate former EAC PS Dr. Kevit Desai, Dubat said that the operational one stop border posts have proved their worth by enhancing trade facilitation, promoting efficient movement of persons and goods and reducing the cost of doing business in the region and adjoining countries.
“We are working on ensuring that the one stop border posts continue being more efficient, more impactful and try to move a bit faster in guaranteeing that business across the East African partner states thrive and is beneficial for Kenya,” he said.
Why some agricultural projects don’t get funded (Food for Mzansi)
According to the African Development Bank (AfDB), Africa’s agricultural sector is brimming with investment potential but unfortunately many agricultural projects do make it past the funding hurdle because of unbankable propositions. As the premier development finance institution on the continent, the AfDB invests about$1.2 billion into the agricultural sector annually. While the bank has given many agri projects a leg up through their funding model, many projects do not make the funding cut. In an interview with Food For Mzansi, Atsuko Toda, director of agriculture finance and rural development at the bank, unpacks why agricultural projects often fail at securing funding from development finance institutions.
She also talks funding monitoring mechanisms and what’s needed to carry agriculture in Africa forward.
The SADC Secretariat through its Climate Services Centre (SADC-CSC), is convening the mid-term review of the twenty-sixth Southern Africa Regional Climate Outlook Forum (SARCOF-26) from 5-7 December 2022 in Johannesburg, South Africa. The SARCOF-26 mid-term review is being supported through the European Union (EU) funded Intra-ACP Climate Services and related Application Programme (ClimSA). SADC- CSC is the specialised SADC regional climate institution whose mandate is to develop, generate and disseminate hydro-meteorological products, which make valuable contribution to the safety and well-being of the people and communities in the SADC region. These products also support key socioeconomic sectors including agriculture, energy, water resources, health, among others and are also crucial for increasing resilience and adaptation to climate variability and change in the region which is prone to hydrometeorology hazards such as flash floods, heatwaves, tropical cyclones and droughts.
Economic Performance of the Timber Industry in East Africa (AfDB)
Aligning with the African Development Bank’s “Industrialize Africa” strategic priority, a study to analyse the performance of the timber industry in East Africa identifying trends on forest resource endowment and use, trade balances, challenges and opportunities for improvement was conducted. Data were gathered through desk reviews and a questionnaire survey among selected key stakeholders in the East African Community (EAC) member countries. Data analysis of primary statistics used the pivot table in Excel. Results showed that, despite increased timber trade performance in eight primary and secondary wood products within the EAC countries, the forestry sector`s contribution to Gross Domestic Product (GDP) is still low due to several challenges.
Economic Performance of the Timber Industry in West Africa (AfDB)
How the African continent can meet the wood product needs of its growing population, projected to rise to 2.5 billion by 2050 and to 4 billion by the turn of the century, is a question which spurred the African Natural Resources and Investment Centre (ANRC), a non-lending knowledge building entity of the AfDB, to organize a webinar on timber’s role in industrialization and regional integration.
Economic Performance of the Timber Industry in North Africa (AfDB)
The aim of this study is to fill the current gaps in knowledge about the economic performance of the forest industries in North Africa. Its specific objectives were to analyse trends of forest resources and use, timber trade data and institutional arrangements as well as identifying the strengths, weaknesses, opportunities and threats (SWOT) of forest industries in the region, and present recommendations to stakeholders. The study focused on an analysis of the trade of wood and wood products (WWPs) from 2010 to 2020 and covered Algeria, Egypt, Libya, Mauritania, Morocco and Tunisia. Four primary wood products, four secondary wood products, and six tertiary wood products were covered in the study which also included a desk review of reports, documents, websites and scientific articles relevant to the topic.
Opinion: How critical is industrialisation for an effective African continental free trade area? (Mail & Guardian)
Does the US support the AfCFTA? (African Business)
Almost two years since trading commenced under the African Continental Free Trade Area (AfCFTA), signed by 44 of the African Union’s 55 member states, the United States’ commitment to the project is being questioned. With crucial negotiations for the trade area’s implementation still underway, the US insisted in its August US Strategy Towards Sub-Saharan Africa document that it “will support the AfCFTA’s implementation.” But while the US has provided technical support in the form of workshops and programs, for example on digital trade negotiations and policy frameworks, there’s no evidence of US funding for activities specifically supporting the AfCFTA’s development and implementation, according to an August report by the Congressional Research Service.
“The US has provided technical support for the AfCFTA under both the Trump and Biden Administrations, but there appears to be no current comprehensive source of data on funding for US activities specifically in support of AfCFTA’s development and implementation,” the policy paper says.
Can the US and Africa usher in a new era for globalization? (Atlantic Council)
As the United States looks to usher in a “new version” of globalization focused on resilience, inclusivity, and sustainability, it has eyes on its economic relationship with Africa, according to US Trade Representative Katherine Tai. Tai spoke at an Atlantic Council Front Page event on Friday alongside the African Continental Free Trade Area’s (AfCFTA) secretary-general, Wamkele Mene. She explained that the current form of globalization has done a great job to expand the size of the economic pie, but it “hasn’t done a great job in terms of sharing the pie,” as big companies have gotten the biggest slices, at the expense of small and medium-sized companies. “We need to adjust and rebalance across the board,” she said.
Mene and Tai will attend the White House’s US-Africa Leaders Summit later this month, where African heads of state and government will discuss collaboration on climate change, security, and the economy—and will sign a memorandum of understanding about the US-Africa relationship. Mene said that the global backdrop—Russia’s war in Ukraine and the pandemic—shows how the world is “incredibly challenged to be more innovative about the tools that we deploy at times of crisis,” with perhaps “the most important tool” being an economic one, based in trade and investment.
Soft power: China grants zero tariffs on imports from selected African countries (News24)
With effect from 1 December, China granted a zero-tariff condition to 98% of taxable products from 10 least-developed countries, most of them African, in what it said was aimed at promoting an open global economy. In a statement, Beijing said Afghanistan; Benin; Burkina Faso; Guinea-Bissau; Lesotho; Malawi; Sao Tome, Principe; Tanzania; Uganda and Zambia would benefit from the facility. “The step is conducive to opening up with win-win outcomes, building an open global economy, and helping least-developed countries to accelerate their development,” said China’s Customs Tariff Commission of the State Council.
This is the latest soft power initiative from China which is challenging the US’ influence in Africa.
African countries will be in the US in a week attending the US-Africa Summit, fully aware China will extend its zero-tariff system to countries it shares strong diplomatic ties with. The Customs Tariff Commission of the State Council said this policy measure would “gradually expand to all the least-developed countries that have established diplomatic ties with China”.
Global economy
Nearly $600 million of investments pitched to accelerate progress towards the SDGs (UN)
Senior representatives from governments, the private sector and the international trade and development community came together at the United Nations SDG Investment Fair on 1-2 December to boost investments in the Sustainable Development Goals (SDGs). Launched in 2018, the Fair has become a leading platform to facilitate dealmaking in SDG investment, with over US$10 billion worth of projects in infrastructure, green energy, and agribusiness presented so far. Now in its 7th edition, twenty countries across all regions have been showcased as SDG investment destinations.
Scaling up private investment is crucial to achieve the SDGs. Despite a rebound of foreign direct investment in 2021, private investment in infrastructure in developing countries remains low relative to historical averages, whereas the Least Developing Countries (LDCs) have the lowest rates of investment in sustainable development and that remains a key challenge. The Fair is the platform to address it.
“Private investment flows into relevant SDG sectors are still largely failing to reach the ground in developing countries that need it the most,” says Assistant Secretary-General for Economic Development Navid Hanif. “We have put a strong focus on this edition of the Fair on how to mobilize private investment in least developed countries.”
Taxation and fiscal policies play a key role in development financing (UNDP)
Taxation and fiscal policies play a key role in development financing. Taxes provide the necessary funding, promoting new and more sustainable growth strategies, and they are the most stable and reliable source of state revenue. As we have seen in many countries, however the full tax potential is yet to be tapped. All too long different countries have rather backed on official development assistance and taking on loans – a strategy that for various reasons has proven to be rather unreliable and risky, thus needs to be rethought.
Next to being a revenue source, well-targeted tax and fiscal policy can encourage behavioural changes that could help achieve desired environmental, health, and gender equality outcomes, to name a few, which are important aspects of the Sustainable Development Goals
There is no doubt, we need to make advances on tax and the SDGs without further delay to have the developmental impact at the scale and speed that is needed. Domestic revenue mobilization is becoming increasingly important. Moreover, the strategic use of the dual function of taxation can bring us closer to foster good governance, establish a deeper social contract, and achieve sustainable development goals across various sectors.
Energy crisis driving an acceleration in renewables installations – IEA (Engineering News)
The global energy crisis is driving an unprecedented acceleration in the installation of renewable power, with total capacity growth worldwide set to almost double in the next five years to reach 2 400 GW by 2027, according to the ‘Renewables 2022’ report published by the International Energy Agency (IEA) on December 6.
The report also finds that renewables are set to account for over 90% of global electricity expansion over the next five years, as well as adding as much renewables in the next five years as it did in the past 20, overtaking coal to become the largest source of global electricity by early 2025.
Climate finance must take centre-stage in global action (Mint)
The 27th Conference of Parties (CoP-27) held in Egypt under the aegis of the United Nation ended last month in an expectedly disappointing way. Nearly 34,000 people registered for the event. Eloquent words were spoken. Action remained well short of rhetoric. The silver lining of the cloud was an agreement on a Loss and Damage Fund. This fund aims to provide compensation and financial assistance to vulnerable nations most impacted by the effects of climate change.
Climate finance lies at the heart of climate action. The incentive for countries to procrastinate on climate action is high, given other urgent priorities. The only way to tilt them towards climate action is to tie down the usage of funds directly. In rich countries, this must be done by legislation and market forces. In vulnerable countries, like small island nations, this takes the form of technology and financial assistance that is earmarked for climate action. In developing countries, it has to be a bit of both.
Inclusive and resilient internet will promote digital governance (UNECA)
The internet presents opportunities for digital transformation, particularly in Africa that is fast embracing the information technologies, global leaders say, calling for the promotion of digital governance. “Resilient internet for a shared sustainable and common future is a topic of utmost importance for all countries,” Mr. Demeke Mekonnen Hassen, Deputy Prime Minister, Minister for Foreign Affairs, Ethiopia, said in closing the 2022 Internet Governance Forum (IGF) held from 28 November to 2 December 2022 in Addis Ababa, Ethiopia.
Curb Your Enthusiasm The Fintech Hype Meets Reality in the Remittances Market (IMF)
Fintech has become one of the most popular topics among policymakers and experts. It usually comes with the qualifier “disruptive”. Thus, the hype is easy to understand: fintech would upend the financial system due to its disruptive nature, as it would allow financial services to be completed faster, cheaper, and more efficiently. Indeed, many have predicted that the remittances market was on the verge of being disrupted as remittances are considered too costly while remittance service providers inefficient, opaque, and outdated. Therefore, there seems to be no better setting for assessing the allegedly disruptive effects of fintech. Against that background, this paper investigates how those predictions have fared so far. Contrary to expectations, it found that instead of disrupting incumbents fintechs have increasingly been entangled with them. Therefore, not only there is no evidence of disruption, but it is unlikely to occur in the foreseeable future. Even so, the paper argues that fintechs play an important role in the remittances market.
G20 needs to push rankings reforms at the World Bank (Observer Research Foundation)
Anywhere you look, a White West narrative supremacy is running amok. Part of that ‘supremacy’ lies in real numbers—high per capita income, invention of technology and innovation, a powerful military-industrial complex, development that is an aspiration, and consumption that doesn’t need to bother about earnings. But a large and increasingly vocal expression of that supremacy is accentuated by manipulated narratives.
Authored by Sanjeev Sanyal and Aakanksha Arora, both of whom work with EAC-PM, Why India Does Poorly on Global Perception Indices brings a critical and fresh approach to such rankings that, sadly, lay bare the subjective and manipulated narratives we have been swallowing whole for decades. Rather than being robust, objective, and methodology-based indices that can withstand the scrutiny of questions and the test of rigour, these rankings are little more than the opinions of a few opaque voices, whose selection process is shrouded in secrecy.
Related News
tralac Daily News
Local news
Transport Forum highlights need for multimodal logistics to remain competitive (Engineering News)
Freight, logistics and transport industry experts have called for the restoration of South Africa’s roads network, the restoration and development of the rail network and efficient ports and border posts, arguing that the country can only remain competitive if its logistics networks and supply chains function coherently in concert. South Africa is a major exporting developing nation, with diverse exports and remains classified as a high middle-income country, said Gordon Institute of Business Science Business School research economist Dr Roelof Botha at the Transport Forum conference, in Johannesburg, on December 1.
South Africa is developing a platform on which to measure and monitor its complete logistics network across all six modalities of road, rail, air, sea, pipelines and conveyor belts.
Industry organisation the South African Association of Freight Forwarders (SAAFF) CEO Dr Juanita Maree detailed the work being done to create such a system, which would help to provide transparency for users of South Africa’s logistics network and help to improve services, as well as provide data and evidence for transport and infrastructure development policy-makers. However, she emphasised that, while a digital solution was part of the broader solution that was needed, without the infrastructure of road, rail, air and seaports and pipelines, digitalisation would not help, and there was a need to bring in much more physical infrastructure in Africa.
Downstream industry calls for scrapping of import tariffs on steel (Engineering News)
South Africa’s steel industry has experienced considerable headwinds over the past few years; however, the biggest challenge that must be dealt with is the import duties that have been implemented to protect primary producers, but that has adversely impacted on the downstream industry, various speakers noted during a discussion hosted by steel products producer Duferco Steel Processing, in Gauteng, on November 30. The participants stated that, with over six years of protection in the form of import tariffs on steel products, prices have not improved and only primary steel producer ArcelorMittal South Africa (AMSA) has benefitted, to the detriment of the downstream steel industry.
Duferco MD Ludovico Sanges posited that the high prices the local steel industry had to pay for its primary product was costing the country in terms of jobs, exports and ensuring it had the capacity to build much-needed infrastructure. As a result of the protective tariffs introduced on hot rolled coil (HRC) to protect AMSA, South Africa’s only primary steel producer, Duferco says it could no longer compete on the domestic market and was now competing successfully on the international market using imported HRC steel.
President Ruto: Kenya to help South Sudan move goods from Mombasa with ease (Capital News)
Kenya will facilitate cost effective movement of goods from the port of Mombasa to South Sudan. President William Ruto said South Sudan traders can choose to clear their goods from the port of Mombasa, Nairobi or Naivasha. The President was speaking in Juba after a bilateral meeting with President Salva Kiir at his office on Saturday. Dr Ruto said Kenya was keen to make it easier for goods to reach South Sudan. “Traders from South Sudan can choose the most convenient point to pick their goods with no restrictions,” said Dr Ruto.
PM lays out plan for export trade (The New Times)
The government is set to establish an electronic commerce (e-commerce) policy and its implementation strategies to boost technology use in business. The development was revealed by Prime Minister, Edouard Ngirente, on December 2 while presenting to Parliament, both Chambers, Government’s achievements on trade with a focus on export promotion. Ngirente added that in line with promoting e-commerce, there has been the establishment of an ‘E-commerce Centre’ which helps small and medium enterprises (SMEs) to promote their activities in Rwanda.
State to appeal court ruling stopping GMO importation (Business Daily)
The Ministry of Agriculture is appealing the decision by the court to stop the importation of genetically modified products, arguing it will hurt the country’s food security. Agriculture Principal Secretary Harry Kimtai said the Attorney General and the National Biosafety Authority — the regulators of the biotechnology crops — are appealing the decision. Mr Kimtai says the government’s appeal will be backed by science that led to the lifting of the ban last month.
“The Ministry of Agriculture and the National Biosafety is appealing against that decision. The matter was heard from one party and now we expect the court to listen from the side of the government and make a competent decision,” said Mr Kimtai.
Rwanda expects GMO responsibility as African scientists back Kenya policy (The East African)
Rwanda says it is counting on Kenya to be a responsible member of the region by ensuring transparent information is shared with neighbouring EAC countries on all genetically modified (GM) seeds and food products imported. Kigali’s sentiments must have come as a relief to the Kenyan government, coming on the back of recent support by a scientific lobby of African scientists who this week said genetically modified organisms (GMOs) are safe for human consumption and the environment. There is public debate in Kenya after the government in September lifted a ban on GMO foods and seeds, prompting a suit that resulted in a temporary court order stopping importation. Now Rwandan authorities have jumped into the fray, saying they want Kenya to abide by international laws such as the Cartagena Protocol to ensure others are not harmed by its actions on GMOs.
The Rwanda Inspectorate, Competition and Consumer Protection Authority (RICA) said it expects Nairobi to keep the imported products within its borders.
UAE seeks to expand bilateral trade with Kenya (Capital FM Kenya)
The United Arab Emirates (UAE) is looking to explore new avenues to strengthen ties with Kenya including expanding bilateral trade between the Arabian Nation and President William Ruto’s administration. Dr. Khalifa Al Rayssi, Charge d’affaires of the UAE Embassy in Kenya, said Thursday during the celebration of the 51st National Day of the Union, that the UAE is looking to diversify its economy away from petroleum products in order to tap more into the Kenyan market, which he described as an important commercial hub for Africa and getaway to other economies and markets in the region. To achieve this, Al Rayssi said the goodwill from the current regime will be critical even as UAE seeks to boost its investments in agriculture and technology.
“UAE had strong relations with the previous government and we still have the same strong relations even with the new government and we are aiming to even strengthen these relations,” he said. His remarks come four months after the two nations-initiated talks on United Arab Emirates-Kenya Comprehensive Economic Partnership Agreement (UAEK-CEPA) to increase the volume of trade in goods and services and investment when former President Uhuru Kenyatta was still in power.
Deepening Nigeria’s Non-oil Exports (This Day)
Non-oil exports can transform the structure of the Nigerian economy, support its diversification and help address its perennial forex challenges, writes Obinna Chima Nigeria’s third quarter 2022 Gross Domestic Product (GDP) figures which showed that the non-oil sector dominated economic performance by contributing 94.34 per cent to the nation’s GDP, while the oil sector contributed 5.66 per cent in the preceding quarter is something to cheer about as it underscored the increasing importance of the non-oil sector. The development showed that the federal government’s drive for economic diversification from the oil to the non-oil sectors, given the volatile nature of crude oil prices is yielding the desired results.
African trade and integration
Africa’s AfCFTA free trade agreement takes baby steps (DW)
It’s been a long time coming, but several African nations have started trading a trickle of goods under the African Continental Free Trade Area (AfCFTA) agreement.
Kenya has shipped locally-made car and truck batteries as well as a consignment of Kenyan-grown tea to Ghana in the past months. Rwanda has also exported processed coffee beans to the West African nation. “It’s a positive move,” said Nixon Paloma, Group Finance Officer at Associated Battery Manufacturers. The firm is one of only two companies in Kenya taking part in a pilot project called the Guided Trade Initiative.
Illegal Customs Checkpoints Frustrating Transborder Trade – Shippers (Leadership)
Trading amongst African countries has been very low due to many obstacles hindering transborder trade facilitation in the continent. Obstacles such as proliferation of multiple checkpoints, poor infrastructure, and technology, among others, are threatening transborder trade. However, in Nigeria, the proliferation of checkpoints by the Nigeria Customs Service (NCS) along the land borders, especially Seme and Idiroko borders, are frustrating successful implementation of the Africa Continental Free Trade Agreement (AfCFTA), which Nigeria was a signatory. While other African countries have made trading easier, seamless and are currently benefitting from the potentials inherent in the agreement, Nigeria has made intra-Africa trading cumbersome and inconvenient and currently at the short end of the benefits in AfCFTA. According to maritime experts, Benin Republic has only two checkpoints along its border route to Togo while three checkpoints exist between Togo and Ghana border. But in Nigeria, an average of 100 checkpoints exist on both sides of Nigeria-Benin Republic border.
This, however, hampers cross-border trade and export as business owners undergo a lot of inconveniences to make Nigeria a transit point to other countries.
EAC member states not ready yet for single currency rollout (The East African)
East African Community member states will have to wait longer for a monetary union. A taskforce to look into the matter has proposed to delay the implementation of the East African Monetary Union (EAMU) until 2031 from initial date of 2024, saying it is too soon considering members have not attained all requirements.
The proposed delay is an indictment on the members’ commitment to achieve EAMU, a key pillar of integration. The EAMU is the third pillar of the EAC, others being the Customs Union and the Common Markets Protocol. The region, under EAMU, is expected to adopt a single currency by 2024. “We have a roadmap that was supposed to be implemented between 2013, when the Monetary Union protocol was signed, and 2024. But we did not manage to implement most of the activities in that roadmap,” said Dr Pantaleo Kessy, Principal Economist, EAC Secretariat.
S. Sudan fails to pull its weight in EAC amid missed deadlines (The East African)
Six years since South Sudan was admitted to the East African Community, domestic problems, including weak institutions, have eaten into its will to integrate, leaving neighbours feeling the burden. South Sudan gained independence from Sudan in 2011 but plunged into a civil war three years later. Today, even at relative peace, it has been constantly on the brink of war. By joining the EAC, leaders argued back in 2016 that the country could tap into regional support, including the safety of neighbours with whom it could trade and improve lives. Instead, it has been a humanitarian burden, needing food aid and refuge for its fleeing citizens. The country has failed to implement the Customs Union and the Common Market protocols, two of the basic pillars of the EAC. In fact, more than 18 months since he was appointed, the South Sudan minister in charge of EAC Affairs Deng Alor Kuol is yet to set foot in Arusha, the EAC headquarters where the council meets regularly to make decisions.
Nigeria, others to unlock $26bn on lower trade finance cost (Businessday)
Nigeria, Cote d’Ivoire, Ghana, and Senegal could earn up to $26 billion from lowering costs and increasing the availability of trade finance, a new report released by the International Finance Corporation (IFC) and the World Trade Organisation (WTO).
The report, Trade Finance in West Africa examined the major barriers to trade finance in the four largest economies in the region. The four countries face a trade finance shortage of up to $14 billion every year despite seeing increased trade flows over the years, especially during the COVID-19 pandemic.
“Global trade finance gaps increased during the pandemic. Supply chain pressures, inflation, and the war in Ukraine have only exacerbated the problem,” said Makhtar Diop, managing director, IFC. “This study couldn’t be timelier. There is enormous potential for an economic boost in West Africa by harnessing intra-Africa trade, but we will need coordinated action from the government. The private sector, and the multilateral to build the capacity of local lenders and improve access to SMEs.”
ECOWAS to Invest in Reducing Barriers to Trade in West Africa (This Day)
The Economic Community of West African States (ECOWAS) is poised to remove roadblocks of regional integration by investing time and resources on reducing tariff and non-tariff barriers in West Africa. Speaking at the opening of the 89th Ordinary Session of the ECOWAS Council of Ministers in Abuja, President of the ECOWAS Commission, Omar Touray, said in order to diagnose the state of the region, four strategic objectives have been identified, noting that these would be the focus of “our management in the next four years. We call this the Commissions 4 by 4 (4 x 4) comprising specific deliverables or results to be realised within our mandate.”
Touray said one of the objectives was to deepen regional integration, adding that: “Here, we intend to invest time and resources on reducing tariff and non-tariff barriers in our community and improve the business environment for our private sector; fully operationalise the regional payment system to reduce difficulty of transactions in local currencies and over-reliance on international currencies (the US dollars/euros); and introduce ECOWAS visa at the first instance for diplomatic and service passports.”
Touray also said another of the strategic objective is good governance, including good corporate governance to build confidence in the private sector, stressing that: “We will be focusing on building a stronger regime against anti-constitutional changes of government and supporting our Member States to deepen democracy.
IGAD validates its AfCFTA Implementation Strategy (UNECA)
The Agreement establishing the African Continental Free Trade Area (AfCFTA) signed in Kigali, Rwanda, on 21st March 2018 is a key milestone in Africa’s integration agenda. Almost all (seven out of eight) of the IGAD Partner States signed the Agreement establishing the AfCFTA. Djibouti, Ethiopia, Kenya, and Uganda have ratified the Agreement while Somalia has committed to ratifying the Agreement in the coming months. Additionally, the Partner States are developing national AfCFTA implementation strategies at different stages.
Harnessing the full benefits of the AfCFTA starts with its domestication, ratification, and full implementation by member States. For African countries, this entails developing national and regional AfCFTA implementation strategies tailored to existing national, regional and continental policy frameworks.
In this context, IGAD has developed its Implementation Strategy to identify opportunities, gaps, and steps required to take full advantage of continental and global markets resulting from the AfCFTA-induced opportunities. The IGAD AfCFTA strategy will recommend concrete actions that Member States should undertake to best leverage the opportunities arising under the AfCFTA and address related challenges.
Cemac: Agricultural export prices fell 4.9% in Q3 2022 (Business in Cameroon)
The prices of agricultural products exported by Cemac countries dropped 4.9% between July and September 2022. Over the previous quarter, the decline was 3.5%, according to official data from the Bank of Central African States. “This trend is explained by the improved prospects for the resumption of production following the destocking of certain products stocked after exports from Indonesia and Russia were suspended,” the Beac points out in its latest report on the commodity price index. By product, the most significant price declines were observed for palm oil (-39.0%), rubber (-21.3%), and cotton (-21.0%). On the other hand, according to the same source, “an increase was recorded in the price of sugar (+5.6%), and to a lesser extent tobacco (0.6%) and coffee (0.3%)”.
Blended finance helps alleviate Africa’s infrastructure shortfall (BusinessLIVE)
Development finance institutions (DFIs) are turning to blended finance, which has been identified as key to bridging Sub-Saharan Africa’s infrastructure gap. Sub-Saharan Africa has a widening $100bn annual infrastructure funding gap, particularly for ventures of 10 years or more, with local commercial banks often lacking capacity for long tenures. Ninety percent of projects on the continent are failing due to inadequate risk allocation and feasibility studies.
Hundreds of academics and leaders of international institutions from around the world came together for an African Development Bank Forum on ways to harness the skills, wealth and dynamism of Africa’s 160-million-strong diaspora to its growth and development. The hybrid event took place against the difficult geopolitical backdrop of high global economic imbalances slowing direct investment into the continent as well as accelerating shifts in the job market. As a result, experts believe the $95.6 billion that Africans abroad remitted to the continent and their skills and expertise have assumed greater importance to Africa’s prospects.
These were key takeaways from the Thursday plenary of the two-day meeting titled, Development without Borders: Leveraging the African Diaspora for Inclusive Growth and Sustainable Development in Africa. The African Development Bank hosted it in partnership with the African Union Commission, the International Organisation for Migration, and the African Continental Free Trade Area secretariat.
Building inclusive innovation and technology ecosystems must be at the heart of efforts to leverage the potential of innovation and technology to support the economic, social, and political development of women and girls in Africa. These were some of the key issues highlighted at the 67th pre-Commission on the Status of Women in Africa (Pre-CSW67) Ministerial consultations convened by the African Union Commission in partnership with UN Women, ECA, ITU, and UNDP from 29 November to 1 December 2022. Consultations heard that technology and innovation have proved a positive disruptor in Africa, accelerating progress in terms of financial inclusion, creating new jobs, improving access to healthcare, providing information on agricultural practices, and opening virtual spaces for citizens to engage on governance concerns.
Dr. Maxime Houinato, UN Women Regional Director for East and Southern Africa, said: “CSW 67 provides an opportunity for Africa to influence the global discourse on digital cooperation, to ensure that technology and innovation can accelerate economic growth, while fairly distributing the benefits to African women and girls as well as reshaping sociocultural norms to create a more equal and just world for them.”
‘Africa can achieve more if it will speak with one voice’ (IPS Journal)
As geographical neighbours, Europe and Africa have a long trade history. The EU is Africa’s most important source of imports, accounting for 26 per cent of all imports followed by China (16 per cent) and intra-African trade (15 per cent). The US and the UK are also important trade partners but much less significant sources of imports into African countries. The EU is also Africa’s most important destination for exports.
Regarding the composition of trade, the EU’s imports from Africa are made up mainly of fossil fuels (40.7 per cent) and other primary commodities (ores, metals and pearls, precious stones and non-monetary gold) as well as food items (15.7 per cent). This means that EU imports are highly concentrated on low value-added products, a reflection of Africa’s poor industrial base which has not changed for decades. In contrast, Africa’s imports from the EU are strongly dominated by manufactured goods. It is clear that Africa’s trade relationship with Europe is highly asymmetrical
What are some issues which stand in the way of a stronger trade relationship between Africa and Europe?
Global economy
Members take stock of sustainability discussions, signal priorities for concrete action (WTO)
Launched in November 2020, TESSD seeks to advance members’ discussions at the intersection of trade and environment and complement the work of the WTO Committee on Trade and Environment. Participating members, of which there are now 74 representing around 85% of world trade, subsequently issued a Ministerial Statement agreeing to endeavour towards concrete actions and a work plan to guide efforts in 2022.
“These Trade and Environmental Sustainability Structured Discussions are a trailblazer at the WTO,” DG Okonjo-Iweala said at the event’s opening session. “You are searching for practical solutions and concrete actions to catalyse the trade and environment agenda. You are breaking down silos and cooperating across traditional structures and fields of expertise to find solutions to global problems.”
Members put trade facilitation support in sharper focus, aim to close gaps in next 2 years (WTO)
“Five years into implementation of the Agreement, the global implementation rate for commitments stands at 74%. This is positive,” DG Okonjo-Iweala said in her opening remarks at the Committee on Trade Facilitation’s dedicated session on technical assistance capacity building, held the same week as the committee’s regular meeting. “However, a breakdown of that figure shows that the rate for developing members and least-developed countries (LDCs) is about 66% and LDCs lag behind significantly at 37%,” she continued. “Landlocked developing countries (LLDCs) also have a lower rate of implementing commitments, at 54%,” she said.
UK extends duty free trade status LDCs (IPPMedia)
Resident UK High Commissioner David Concar yesterday challenged the private sector to revisit their quality controls for export products to benefit from a developing countries trading scheme taking off early next year.
Addressing a news conference on the sidelines of the second UK-Tanzania Business Forum in Dar es Salaam, the envoy said the scheme offers enormous export trade opportunities for Tanzanians. Crafted in line with the Conservative government’s new international development strategy, the scheme contributes to developing countries’ integration into the global economy, creating stronger trade and investment partners for the future, and strengthening supply chains, he stated.
“The scheme facilitates the growth of free and fair trade with developing countries including Tanzania, boosting the economy and supporting jobs in those countries, as well as in ours,” he explained.
Kenya, Africa lag behind in fertiliser use (The Standard)
Poorly functioning value chains and lack of reliable data are some of the hindrances to Kenya and the rest of Africa achieving best practices in fertiliser use. According to newly published data gathered over the last seven years by the International Fertiliser Development Centre (IFDC) Kenya and African Union Commission (AUC), fertiliser consumption is increasing in Africa but at a slower rate. “Data from 31 African member states shows that the average fertiliser consumption was about 15.5kg (kilogrammes) of nutrients per hectare (ha) as of 2018, up from about 12.8kg per ha in 2015,” said the biennial review report on the implementation of the Malabo Declaration on accelerated agricultural transformation.