All News
tralac Daily News
Local news
After challenging season, citrus industry moves to mitigate new and old risks (Engineering News)
South Africa’s citrus growers industry has, despite achieving a marginal increase in export volumes for the 2022 season, compared with that of 2021, faced a myriad of challenges during this period, which have negatively impacted on returns and threaten future sustainability and profitability. Therefore, mitigating measures are being pursued by the growers and industry nonprofit organisation the Citrus Growers’ Association of Southern Africa (CGA) to safeguard the long-term sustainability and profitability of the industry, its export revenue of about R30-billion a year and the 130 000 jobs it sustains.
Consumer Goods Council of South Africa panellists renew call for specialised unit to fight illicit trade (The Mail & Guardian)
South Africa needs a specialised, independent and well-resourced body to investigate illicit trading. The call was made at a panel discussion hosted by the Consumer Goods Council of South Africa on Thursday. Judge Dennis Davis, chairperson of the Davis Tax Committee, said the number of reports he received about illicit trading was enough to convince him that the National Prosecuting Authority (NPA) was unable to deal with such crimes on its own. The Davis Tax Committee assesses the country’s tax policy framework.
“Unless there is the political will to curb rent seeking and to essentially attack head on [illicit trading], I really worry that the illicit economy will just continue to overwhelm the society,” Davis said.
It is impossible to quantify the exact costs of illicit trade to the economy but according to the Global Financial Intelligence (GFI) report of 2019, South Africa loses about R152 billion a year from illicit economic activity. Carina Bruwer, a senior researcher at the Institute for Security Studies, said South Africa also needed to work with other countries. “A lot of the commodities mentioned today are traded internationally and they are very much part of international organised crime. It’s important for South Africa to start cooperating with other world regions where these commodities are either coming from or moving through.” Bruwer said.
Cabinet approves publication of Green Hydrogen Commercialisation Strategy (SAnews)
Cabinet has approved the publication of the Green Hydrogen Commercialisation Strategy (GHCS) for public comment. The strategy is aimed at ensuring that the country takes full advantage of the opportunities provided by green industrialisation.
Minister in the Presidency, Mondli Gungubele, said that the Green Hydrogen Commercialisation Strategy will ensure that South Africa becomes a major producer and exporter of green hydrogen. “It contributes towards economic growth and supports the country’s just transition interventions towards the reduction of carbon emissions,” Gungubele said at a post-Cabinet media briefing on Thursday.
SA needs R1.5 trillion for Just Energy Transition (SAnews)
South Africa requires an initial funding of about R1.5 trillion to transition to a low carbon and climate resilient society for the five-year period 2023–2027, says Presidential Climate Commission (PCC) Commissioner Joanne Yawitch. Addressing a hybrid Special Sitting on Understanding the contents of South Africa’s Just Energy Transition Investment Plan (JET-IP) on Thursday, Yawitch said achieving the JET IP outcomes is dependent on the scale and nature of financial support that South Africa can secure from the international community to complement domestic resources.
“South Africa’s dependence on fossil fuels gives rise to a range of climate, energy and transition risks, especially for affected workers, communities, businesses and exporters. “However, embracing new economic opportunities in green technologies can drive industrial development and innovation, leading to a sustainable and resilient future with decent work, social inclusion and lower levels of poverty,” Yawitch said. The JET IP represents the initial building blocks of managing South Africa’s Just Energy Transition and climate response, which will be a managed, phased, long-term process of economic, social, and environmental change.
Kenya gets another sugar imports cover (Business Daily)
Kenya has been granted a nine months extension to limits on sugar imports from regional trade bloc Comesa to enable the country complete reforms that will make its sugar industry competitive, blocking the flow of cheaper sugar from African countries. This marks a sixth time that the country has enjoyed protection against the influx of cheap sugar from the regional trading market. Kenya had been expected to open up fully its market to imports from the Common Market for Eastern and Southern Africa (Comesa) States in 2014 after more than a decade of being allowed to protect its sugar farmers with high tariffs.
The tariffs were scheduled to fall to zero in March 2014, but Kenya has continued to seek extensions, giving more time for it to improve infrastructure and carry out other reforms. Industry players estimate the cost of producing a tonne of sugar at about $900 in western Kenya. The cost is $400 in producing countries such as Mauritius.
GMO jitters hit Kenya horticulture exports to Europe (Business Daily)
European buyers of Kenya’s horticultural produce are raising concern over the country’s lifting of the ban on genetically modified organisms (GMO), forcing exporters to carry out extra certification to confirm that the products have not been enhanced by the technology. Fresh Produce Consortium of Kenya Chief Executive Officer Okisegere Ojepat says the queries they are facing from customers are on whether what they are exporting is still GMO-free. GMO is yet to be fully adopted by the European Union and there have been concerns before from the continent when Kenya wanted to introduce biotechnology flowers to the market.
“We are being questioned to confirm whether what we are selling to our European customers is GMO or non-GMO and we are required to show proof through additional certification,” said Mr Ojepat. He said though GMO is a good technology for boosting food production, politics surrounding it since the lifting of the ban have caused confusion all over.
Freight Forwarders plan on maintaining relevance in turbulent global supply chain (Ghanaian Times)
The Ghana Institute of Freight Forwarders (GIFF) has held its 25th Annual General Meeting in Koforidua, in the Eastern Region, to deliberate on how freight forwarders can maintain their relevance in a turbulent global supply chain. Speaking at the event, the Omanhene of New Juaben, Daasebre Nana Kwaku Boateng III, appealed to freight forwarders to be honest in their dealings with importers and refrain from acts of distortion.
The President of GIFF, Eddy Akrongon his part said in maintaining the freight forwarders’ relevance, efforts should not be spared from venturing into ICT solutions whose dividend would endear freight forwarders’ to the trader.
He appealed to the Minister of Transport to bring to finality some unjustifiable shipping line charges at the ports.
Seychelles to assess national food control system for better public health (Seychelles News Agency)
Seychelles is aspiring to narrow the gap between local production capacity and importation although it still depends largely on imports. Seychelles expects to carry out an assessment of its food control system in the coming months to make it in line with internationally recognised standards.
At the opening of the workshop on Monday, Flavien Joubert, the Minister for Agriculture, Climate Change and Environment, said that such a tool is important especially as Seychelles relies heavily on food imports. “As a small island, we depend on the global food production and distribution system for a significant portion of our food basket. Almost 90 percent of our food commodities are imported including our staple, which collectively accounts to close to 30 percent of our importation bill,” said Joubert.
The minister added that “while we remain aspirational in our intent to narrow the gap between local production capacity and importation, we are also realistic that Seychelles will continue to depend on food exporting countries to contribute towards our food and nutrition security agenda.”
African trade and integration
Key Decisions at the 43rd COMESA Ministers Meeting (COMESA)
COMESA Council of Ministers will engage their counterparts in Member States that have not ratified the Tripartite Free Trade Area Agreement (TFTA) to do so as a matter of priority to pave way for its implementation. This was one of the key decisions taken during the 43rd meeting of the Council conducted on 01 December 2022 in Lusaka, Zambia. The action is intended to clear the remaining hurdle to enable the TFTA to enter into force.
The ministers noted that the delay in achieving the 14 States’ ratification threshold has negatively impacting the Member/Partner States in harnessing the potential benefits from international support for the financing of development programmes. It was also constraining resources mobilization efforts by the COMESA Secretariat. So far, 11 States have ratified the TFTA three short of the required threshold of 14 to enable the Agreement to enter into force.
Another decision taken related to the preservation of the jurisdiction of regional competition authorities, especially the COMESA Competition Commission (CCC), considering the implementation of the African Continental Free Trade Area (AfCFTA) Protocol on Competition.
With regard to the implementation of the COMESA Free Trade Area, the Council urged Member States that have not yet completed the process of joining, to fast track the process as a matter of priority. These are DR Congo, Eswatini, Eritrea, Ethiopia and Somalia. The COMESA Secretariat will provide updates to Member States on the Non-FTA Member States status of joining COMESA FTA on regular basis.
AfCFTA: Africa must compete favourably with other free zones, says Buhari (The Cable)
President Muhammadu Buhari says Africa must rise to compete favourably with free trade zones in other parts of the world. Buhari said this on Thursday at the 5th African Union symposium on Special Economic Zones (SEZs) and Green Industrialisation in Abuja. The 3-day event themed ‘African Special Economic Zones: Engine for Resilience and Accelerator for Sustainable Industrial Value Chains Development’ was done alongside the 7th edition of the African Economic Zones Organisation (AEZO) annual meeting.
Buhari, who was represented by Umana Okon Umana, minister of Niger Delta Affairs, urged stakeholders to critically examine factors inhibiting the growth of free zones in Africa and come up with appropriate strategies to address identified challenges. He stated that the economic zones in Nigeria scheme was to use the export processing zones to promote export-oriented industries. He, however, said the scheme has over the years evolved from a strictly export-oriented manufacturing strategy to a more liberal scheme that allows a greater level of interaction with the domestic economy while simultaneously driving an increase in its level of attractiveness to potential investors.
The African Union (AU) and the Africa Economic Zones Organization (AEZO) are organizing the 5th African Union Symposium on Special Economic Zones, and the 7th edition of the AEZO Annual Meeting from November 30th to December 2nd, 2022, in Abuja – Nigeria, convened under the theme: “African Special Economic Zones: Engine for Resilience and Accelerator for Sustainable Industrial Value Chains Development.”
African Special Economic Zones are considered as one of the main instruments that stimulate economic reforms, promote quality Foreign direct investments (FDIs), and accelerate industrialization across the continent. According to the African Economic Zones Outlook (Edition 2021), more than 200 SEZs are operational in Africa while 73 projects have been announced for completion in 47 countries. The land dedicated to SEZs is nearly 150,000 hectares while over $2.6 billion has been mobilized in investments dedicated to agro-processing, manufacturing and services.
The AEZO Annual Meeting and the 5th AU Symposium on SEZs will provide guidance on cross cutting issues related to the contribution of SEZs in accelerating sustainable industrial value chain development. This is also aligned to Africa’s Agenda 2063: Aspiration 1: A prosperous Africa based on inclusive growth and sustainable development.
How special economic zones are helping Africa to industrialise (Supply Management)
Enhancing industrial development one Precinct at a time: the OR Tambo SEZ vision (Forbes Africa)
Nigeria to partner with special economic zones in Africa (Voice of Nigeria)
The African economy is heavily dependent on the production and export of primary products and consequently suffers from the associated risks of this dependence. In the renewed commitment towards an Inclusive and Sustainable Industrialization and Economic Diversification at the just concluded Extraordinary Summit on Industrialization and Economic Diversification, and Extraordinary Session on the African Continental Free Trade Area convened on the 25th November 2022 in Niamey, Niger, African leaders were firm on the motive for coherent industrialization and the strong linkages between industrial productive capacity, economic growth, and level of development.
Abundantly endowed with natural resources, including many industrial minerals and agricultural resources, Africa must pay close attention to critical priorities that need to be addressed at national, regional, continental, and international levels to promote the coherent industrial development that includes: natural resources management and development; infrastructure development; human capital development; innovation, science and technology; legal, institutional and regulatory frameworks; and resource mobilization.
H.E. Macky Sall, the President of the Republic of Senegal, and African Union Chairperson 2022, says infrastructure development is inevitable as Africa moves towards increased industrialization. “There is an urgent need to improve our production tools, including energy, digital, logistics and transport infrastructures to support the productivity of our industries.
I also draw the attention of our summit to the need to overcome the procedural and bureaucratic red tape that hinders the preparation and implementation of our projects. On the road to emergence, there must be no time wasted in undue formalities and delays.”
“The pace of industrialization in Africa remains too slow to achieve Africa’s development goals under Agenda 2063. We need to invest more of our national budgets in industrial policy, and significantly increase energy and infrastructure capacity. We must also build stronger links between our universities and the private sector, to promote a culture of innovation that includes our young people,” H.E. Paul Kagame, President of the Republic of Rwanda underscored the urgency for the continent to unite in its quest to accelerate industrialization.
H.E. Moussa Faki, Chairperson of the African Union Commission underlined the importance of political will. He added, “Internally, industrialisation, associated with economic diversification, will upset all public policies to reconfigure them, in accordance with its own requirements, whether in terms of education and training policies, the business climate, standards and compliance, investment, competition, intellectual property and so on. These adjustments, to be made internally, are compounded by the effects, not always happy, of external dynamics. The latter remains decisive for the industrialisation of African countries. It makes it possible to achieve the necessary economies of scale to improve production and exports, attract external financing to compensate for the shortage of domestic savings, integrate into global value chains, strengthen demand for technology transfer, develop intra-African trade, through the various levers offered by the AfCFTA, whose progress I welcome.”
How boosting intra-African agrifood trade will reap rewards for Africa (African Business)
“Excessive dependence by many countries on imports of basic commodities such as food and strategic agricultural inputs has exacerbated vulnerabilities due to the impacts of the multiple overlapping shocks, such as the COVID-19 pandemic, the war in Ukraine, and the responses by some countries to restrict trade,” Abebe Haile-Gabriel, FAO Assistant Director-General and Regional Representative for Africa said on the lack of substantive intra-African trade. “This is not sustainable. It is a trend we must reverse.”
“We are trying to build capacity and bring that value-added to our continent so that we become more self-reliant on food, to have that food security at home,” Poonam Mohun, Head of Non-Tariff Measures Division at the AfCFTA Secretariat, said.
She added that many levels of intervention are needed: government and private sector policies to increase agricultural production and manufacturing levels, increasing value addition through processing, and removing trade barriers so that trade flows smoothly.
EAC leaders urged to adopt single airline, number plate (New Vision)
East African leaders have been asked to “walk the talk” of integration by removing all border tariffs as well as pulling resources, especially if they are to compete with other blocs and continents.
While addressing members of the East African Legislative Assembly yesterday, November 30, 2022, at the International University of East Africa in Kansanga, Kampala, Capt Mike Mukula said the EAC states should come together and develop a common airline, number plate and combined sports teams like the East African football team to represent the block in tournaments like the FIFA World Cup.
Currently, the majority of the East African countries have national airlines, which, according to Mike Mukula, are competing for the same market, which further undermines the integration of the region economically instead of bringing it together.
“We cannot talk about political and economic integration yet we remain competitors in essential services like airlines. The biggest means of moving people is through the airlines. Every country is forming its own airline. This undermines the spirit of East Africa’s economic integration,” he said.
Africa’s last-mile market set to double by 2030 (Engineering News)
The African last-mile delivery market was valued at $1.14-billion in 2021. By 2030 this is expected to reach $2.35-billion, expanding at an annual compound growth rate of 8.45% between 2022 and 2030, says Frost & Sullivan consultant Nomvo Kasolo. Overall, the high-potential areas in the next decade are expected to be through growth in business-to-customer models (by product type), e-commerce (by industry), distributor segment (by sales channel) and parcel services (by delivery type).
In South Africa alone, the revenue generated by e-commerce is expected to reach $7.07-billion for 2022, growing to $14.9-billion in 2027, says Kasolo.
The positive trend in Africa‘s last-mile story could, however, be cut short if challenges in supporting infrastructure and restraints like corruption are not addressed, she adds.
ECA pushes for scaling up local vaccine manufacturing in Africa (UNECA)
Director of the African Centre for Statistics at the Economic Commission for Africa (ECA), Oliver Chinganya, explains the need to increase vaccine supply chains in Africa and advance equitable access to vaccines across the continent. Mr. Chinganya spoke at the first virtual webinar under the “Equitable access to the COVID-19 vaccines in Africa (ECOVA)” project on 30 November 2022.
In his opening remarks, Oliver Chinganya explains, ”the Covid-19 pandemic has exposed our continent’s pre-existing development deficits, but also presented opportunities for an economic and social resilient recovery which reinforces regional integration, coordination and partnership.” He noted that Africa needs to learn lessons from other parts of the world to increase vaccine supply chains, strengthen health infrastructure, and enhance access to finance and credible communication, including vaccine campaigns.
Furthermore, he noted the announcement of local manufacturing expansion in the wake of the Covid-19 pandemic, as seen in South Africa, Nigeria, Morocco, Ghana and Egypt, demonstrates the capacity and feasibility of vaccine manufacturing in Africa. Vaccine manufacturing in Africa can be enhanced by the establishment of technology hubs, research and development facilities, targeted education intervention to address skills deficit, policy formulation and implements to harmonize regulatory framework provides feasible framework that can be tailormade to Africa’s specificities.
U.S.-African Leaders Summit 2022, to Enhance Cooperation on Shared Global Priorities (AU)
Heads of state and leaders from across the African continent will from 13 to 15 December 2022, converge in Washington D.C., within the context of the United States - Africa Leaders’ Summit hosted by President Joseph R. BIDEN, President of the United States of America. Facilitated by the African Union Mission to the U.S, H.E Moussa Faki Mahamat, Chairperson of the African Union Commission (AUC), is expected to lead a powerful delegation to Washington to take part in this important summit.
According to the organizers, the summit aims to serve as a demonstration of the Biden administration’s commitment to the African continent and provide a forum for new joint initiatives between the United States and countries in Africa. According to senior White House officials, approximately 50 heads of state and senior government officials from African countries are expected to attend the summit.
the first U.S.-Africa Leaders Summit was held in 2014, under President Obama’s administration, announcing and engaging new private sector commitments to invest and partner with African countries on initiatives in energy, financial services, climate change, food security and health care, among other areas. This year’s summit is expected to prioritize similar issues, while placing an even greater emphasis on bilateral trade and investment initiatives. The summit will include new initiatives to increase U.S. engagement with the African Continental Free Trade Area (AfCFTA), as well as initiatives to boost the continent’s recovery from COVID-19, bolster food security and promote investment in infrastructure, health and renewable energy projects, among other priorities.
Africa-US: Commercial ties will shape the partnership in the 21st century (The African Report)
Working together holds the promise of realising the tremendous potential that trade, investment, and commerce offer partners on both sides of the Atlantic — in ways that align with the African Union’s Agenda 2063 blueprint for continental transformation. This includes working with Prosper Africa, technical and advisory support for the African Union’s (AU) implementation of the AfCFTA; the Partnership for Global Infrastructure and Investment (PGII); the upcoming US-Africa Business Forum; and the ongoing implementation of the African Growth and Opportunity Act (AGOA).
Pakistan in drive to foster stronger economic ties with Africa (IOL)
Pakistan is a country on the rise. According to the latest statistics, the economy of this South Asian country is the 43rd largest in the world, while South Africa comes in at 42. Both countries share a history of colonialism, which makes them ideal partners for possible economic growth.
Qamar, who spoke to The Star in an exclusive interview on the first day of the 3rd Pakistan-Africa Trade Development Conference taking place at the Sandton Convention Centre until Thursday, said there are minimal restrictions and barriers to entry for entrepreneurs wishing to begin their journey in one of the fastest-growing Asian economies.
“This makes our ease of doing business one of the best in the world,” Qamar said. “There is huge potential for trade between Africa and Pakistan, but we need to enhance connectivity with Africa. The opportunities exist between ourselves and Africa in both goods and services sectors such as IT, textiles, construction and the medical profession.
“This is the reason it has become important for Pakistan to ensure that trade relations between us and the continent are strengthened.”
Global economy
Supporting countries to measure the digital economy for development (UNCTAD)
Digitally deliverable services – those supplied remotely using information and communications technologies (ICT) – have helped cushion the COVID-19 pandemic’s blow to services trade. New UNCTAD statistics show that global exports of these services grew from around $3.3 trillion in 2019 to $3.8 trillion in 2021. This growth helped to offset sharp declines in exports of other services during this period. As a result, overall services trade fell by 3.5%, much less than would otherwise have happened. While the pandemic has seen the resilience of e-commerce and the digital economy, it has also laid bare digital and data divides.
“Some countries have huge advantages in a new world of digital trade while others still face great challenges,” said Shamika N. Sirimanne, UNCTAD’s director for technology and logistics. “Supporting all countries to develop the statistics needed to monitor and manage their performance in the global digital economy is crucial to levelling the playing field,” Ms. Sirimanne added.
DG Okonjo-Iweala: “We must move from discussion and reflection to action” (WTO)
“Excellencies, at MC 12 you breathed new life into a multilateral negotiations,” the Director-General told members in her role as chair of the TNC. “If we are serious about sustaining this new life, we must now return in earnest to look at the tasks before us and build convergence on how to go forward wherever feasible.”
Since MC12, members have held brainstorming retreats on how to prepare for the second “wave” of negotiations on disciplining harmful fisheries subsidies and how to break the deadlock in the long-stalled agriculture negotiations. Members also met informally on 10 November to exchange views and ideas on WTO Reform.
Opec to stick or cut output amid plan to cap Russian oil price (The East African)
Major oil producers are expected to stick to their current output strategy or even slash production further when they meet on Sunday in the face of falling prices, a potential Russian oil price cap and an embargo on Russian crude shipments. At their last ministerial session in October the 13-nation Organisation of the Petroleum Exporting Countries headed by Riyadh and its 10 allies led by Moscow, collectively known as Opec+, agreed to reduce output by two million barrels per day (bpd) from November.
Amid fears of economic slowdown, Sunday’s cartel meeting via videoconference convenes ahead of the EU enforcing an embargo on Russian crude shipments from Monday.
“Odds are that the group will reassert its commitment to its latest output cuts,” says PVM Energy analyst Stephen Brennock, adding he would not rule out that they “may even potentially announce fresh cuts” to bolster prices. Since the October meeting, oil prices have been plummeting to their level of early 2022, far from the peaks above $130 a barrel in March after the start of Russia’s invasion in Ukraine.
Beyond the economic gloom, the big unknown in the oil equation currently is Russian oil, as Western nations seek to decouple themselves from Moscow’s energy supplies as fast as possible.
Lower costs, incentives drive heat pump sales to a new record (Engineering News)
Global heat pump sales rose by nearly 15% in 2021, double the average of the past decade, led by the European Union (EU) where they rose by around 35%, global organisation the International Energy Agency’s (IEA’s) ‘The Future of Heat Pumps’ report shows. Sales this year are set to hit record levels in response to the global energy crisis, especially in Europe where some countries are seeing sales double in the first half of 2022 compared with the same period in 2021.
Report shows 67% of SMEs globally are struggling to survive (Engineering News)
The World Economic Forum (WEF) and the National University of Singapore Business School say 67% of executives from small- and medium-sized enterprises (SMEs) cite survival and expansion as their main challenges amid warnings of a global recession. Low margins, the challenge of scaling their businesses and expanding to new markets, as well as difficulties with clients and consumers have been cited as main pressure points in a report titled ‘Future Readiness of SMEs and Mid-Sized Companies: A Year On’, which looks at companies emerging from the pandemic.
Related News
tralac Daily News
Local news
Trade and Industry on measures to restrict scrap metal trade (South African Government)
Government today announced details of targeted measures to address the theft of public infrastructure for resale as scrap metal that causes more than R47 billion damage annually to the economy. The measures involve prohibition of export of scrap copper and ferrous metal for a six month period, which will be followed by a system to regulate trade in such metals. In future phases, new measures will be introduced including prohibiting the use of cash in copper and scrap metal transactions, following legislative amendments; and limiting exports to a defined number of ports of exit.
Announcing the measures this morning, four Cabinet members outlined the rationale for the measures. The Minister of Public Enterprises, Mr Pravin Gordhan noted that cable theft had resulted in a R2bn loss in revenue for Transnet in 2021 while about 742 kilometres of Eskom cable had been stolen leading to significant additional electricity disruption. The Minister of Police, General Bheki Cele indicated that 20 multi-disciplinary Economic Infrastructure Task Teams had been established since June 2022 and were fully operational with over 3,000 operations and 1,946 arrests in the course of 2022.
Trade Statistics for October 2022 | South African Revenue Service
SARS today releases trade statistics for October 2022 recording a preliminary trade balance deficit of R4.31 billion attributable to exports of R159.61 billion and imports of R163.92 billion. Exports decreased by R32.67 billion (-17.0%) between September and October 2022 and imports decreased by R2.19 billion (-1.3%) over the same period.
Vehicle sales, exports surge; Naamsa NEV document ready for December release (Engineering News)
Domestic new-vehicle sales in November recorded an eleventh consecutive month of year-on-year growth. Total sales increased by 18.2%, to 49 413 units, compared with the same month last year. New-vehicle exports surged by 64.7%, to 34 310 units.
Year-to-date vehicle export numbers are now 17.9% ahead of the corresponding period last year, at 326 516 units.
Duty-free maize import to wait till February, says Linturi (Business Daily)
The government will not import duty-free maize until February next year, Agriculture Cabinet Secretary Mithika Linturi has told Parliament. The importation window will be opened on February 1, 2023, and will remain in place until April 31, 2023.Registered millers will, however, continue to import wheat under the prevailing 10 per cent duty remission scheme and rice at the prevailing duty rates to complement maize supplies.
Mr Linturi said the Ministry of Agriculture has prepared a Cabinet memorandum seeking authorisation to import 900,000 tonnes or 10 million bags of maize duty-free. This comes just a few days after Trade Cabinet Secretary Moses Kuria said farmers are hoarding 20 million bags of maize from this season’s main crop season.
Mr Kuria had announced the government will be opening up a duty-free window for maize imports to bridge the deficit.
We have nothing to do with maize import, says trading corporation (Business Daily)
The Kenya National Trading Corporation (KNTC) has distanced itself from claims that it is behind the importation of 10,000 metric tonnes of maize that arrived at the port of Mombasa last week. KNTC managing director Pamela Mutua told Parliament that the corporation has not made any import orders for maize and that after inquiries on the docked vessel bearing the grain, the corporation was informed that it was shipped in by a UN agency for relief supplies for the East Africa region.
The ship carrying the maize arrived at the port just days after the State said it would open a duty-free window for the importation of the produce. “We have not imported any maize. There have been claims that the 10,000 metric tonnes of maize that landed in the port of Mombasa belong to us. That is not true,” Ms Mutua told the Trade committee of the National Assembly. MPs from maize-growing areas have opposed the importation of the grain at the time farmers are harvesting the long rains season crop.
How UK’s post-Brexit trade setup can benefit Tanzania (The Citizen)
Members of the British business community are engaging their counterparts in Tanzania to ensure that the country makes effective use of the UK’s new market access for developing countries. The Developing Countries Trading Scheme (DCTS), which comes into effect early next year, offers developing countries generous access to the UK market. Introduced after the UK officially exited the European Union in 2020, the DCTS applies to 65 countries, offering lower tariffs and simpler rules of origin requirements for exporting to Britain.
And, with the clock ticking before the arrangement takes effect, a business forum involving public institutions and companies from the UK and Tanzania took place in Dar es Salaam yesterday. It sought to strengthen trade and investment relations and put Tanzania on the right path to grabbing the opportunities that will come with the DCTS arrangement.
Why substandard products export persist – SON (Daily Trust)
The Director General, Standards Organisation of Nigeria (SON), Mallam Farouk Salim, has said for Nigeria to curb the menace of substandard products, there must be deliberate efforts in policy formations that promote quality. Salim who spoke yesterday during the 50th-anniversary celebration of SON in Abuja however identified the challenge of foreign trade policy of some governments that actively encourage the exportation of substandard products. He said, “while acknowledging the modest achievements and strides of SON in the last 50 years, my vision for the organisation in the next 50 years is to be the foremost standardised body in Africa and among the top ranking globally.”
Industry players on how to tackle cargo bottlenecks, haulage (The Guardian Nigeria)
To improve cargo and haulage movement in Nigeria, there must be establishment of standard repair plants, outsourcing development of standard low-cost transit parks, and increase in warehouse and storage capacity. Others are further expansion of the pre-gate space and equipment, creation of more holding bays in and outside Lagos, corruption-free licensing procedure and development of inland waterways through Public Private Partnership (PPP). These were the submissions of stakeholders in the maritime transport sector at the Council of Maritime Transport Unions and Associations (COMTUA) 2022 yearly congress held in Lagos.
A Professor of Transport and Logistics, School of Transport and Logistics, Lagos State University, (LASU), Odewumi Samuel, while presenting a paper titled: “Cargoes and Haulage Movements in Nigeria: Issues and Solutions,” said the establishment of road authority, which will aid enforcement of urban and regional planning laws, decongestion and proper maintenance culture of the roads to ease movement of cargoes, more investments, public-private partnerships and tax for infrastructure, were solutions to the problems ravaging the business in the country.
Nigeria’s fuel crisis worsens as shortages spread nationwide (The East African)
The scarcity of petroleum products which hit Nigeria in July has worsened, spreading across the 36 states as Nigerians cling to the hope of the $18 billion Dangote Refinery which is expected to begin production by end of December. Nigeria, the world’s 6th oil producer that is dependent on importation of petroleum products, has thrown motorists and households into confusion as petrol, diesel and kerosene disappeared from filling stations for months.
While awaiting the commencement of fuel production by the refineries, the Nigerian government has continued to import products which are hardly enough for all consumers across the country.
‘Integration of Lekki port with LFZ will unlock economic fortunes’ (The Guardian Nigeria)
The Chief Executive Officer, Lagos Free Zone (LFZ), Mr. Dinesh Rathi has expressed confidence that the integration of Lekki Port with Lagos Free Zone would be a major catalyst to bringing about huge economic fortunes for Nigeria. Rathi disclosed this during a panel discussion at the West Africa Property Investment Summit titled: “Industrial Infrastructure, Special Economic Zones, and Master Planned Developments,” in Lagos.
He noted that for Nigeria to realise its economic potential, it must begin to focus on planned city developments like the special economic zones to fast-track development and enhance the economic well-being of its people.
Morocco to Supply EU with Critical Raw Materials For Energy Transition (Morocco World News)
The European Union has reported plans to sign a memorandum of understanding (MoU) with Morocco on the supply of critical raw materials to accelerate the energy transition.
A recent report on the Africa-EU Green Energy Initiative that is part of the Global Gateway Investment Package noted that the union has signed an MoU on critical raw materials with Namibia on the sidelines of COP 27 in Egypt.
Other signings with Morocco, Uganda, South Africa, Rwanda, Senegal, Zambia, Algeria, Burundi, and the Democratic Republic of Congo are “in the pipeline,” the report indicated.
DRC, Equatorial Guinea to develop joint oil refinery (Caj New Africa)
THE Democratic Republic of Congo (DRC) and Equatorial Guinea have partnered to develop synergies across their respective upstream, downstream, energy infrastructure and logistics sectors. The respective ministries of the two countries signed a Memorandum of Understanding (MoU) at the Angola Oil & Gas (AOG) 2022 Conference and Exhibition. The agreement provides for the establishment of a working group to achieve shared energy objectives and the implementation of specific projects.
These include the financing and construction of an oil refinery in the DRC, to be jointly owned by both countries – to meet regional demand for refined petroleum products, along with the construction of storage facilities for refined products.
African trade and integration
Weak macroeconomic environment may undermine AfCFTA implementation — BoG governor (Graphic Online)
The Governor of the Bank of Ghana (BoG), Dr Ernest Addison, has stressed the need for African central banks to pursue a prudent macroeconomic management supported by growth-oriented policies to ensure a successful implementation of the African Continental Free Trade Area (AfCFTA). He said high inflation, volatile domestic currencies and weak financial systems were likely to undermine the goals of AfCFTA, hence the need for central banks to focus on addressing such challenges within the AfCFTA framework.
In his presentation, an international trade expert, Samuel Ato Yeboah, said access to finance still remained a challenge for small and medium enterprises (SMEs). He said the capability for SMEs to produce to maximise their potential was very key but that could not be done without finance. “Financial institutions must create a competitive lending landscape in Ghana where businesses can borrow to expand their capacity to boost their productivity and make locally made products more competitive to meet international standards,” he said.
African leaders call for faster industrialization during African Union Summit (AfDB)
African leaders reviewed the continent’s progress in industrialization, economic diversification, and the African Continental Free Trade Area (AfCFTA) in the context of global shocks, debt vulnerabilities, climate change, and security concerns. Twenty heads of state and government as well as their representatives attended the African Union Extraordinary Summit on Industrialization, Economic Diversification, and the AfCFTA in Niamey.
“Not so long ago, the juxtaposition of the words industrialization and Africa might have seemed incongruous. Today, the question it raises is mainly one of ways and means,” said Nigerien President Mohamed Bazoum, the summit’s host.
“Inclusive, coherent, and sequenced industrialization that we want cannot be imposed and can only be achieved by creating synergies between the private and public sectors to empower small and medium sized enterprises and create quality jobs. .” Bazoum added: “the youthfulness of the population and its growth, which are a challenge, can constitute an asset, provided the demographic transition is well-managed.”
African female entrepreneurs want equal opportunities (DW)
When the African Continental Free Trade Area (AfCFTA) was launched on January 1, 2021, many female entrepreneurs hoped that the world’s largest free-trade area, with a market of 1.2 billion people, would boost their businesses and reduce endemic poverty. But they are missing out on the opportunities because their businesses are mostly small, have low productivity and get little funding from governments and agencies, several women told DW. Female business owners say they have also struggled to obtain visas and documents they need to export their goods.
“Women entrepreneurs face a lot of harassment from customs officers when exporting goods to benefit from opportunities offered by the African Continental Free Trade Area. They are particularly targeted for bribes by customs and police officers,” Bissso Nakatuma, Niger’s director for the promotion of rural enterprises said.
Africa seeks US$170 bln for Resilient infrastructure’ (Farmers Review Africa)
AFRICA needs to mobilise a staggering US$170 billion annually in long term financing to develop infrastructure key sectors, agriculture included to accelerate growth dwarfed by the COVID 19, conflicts and climate change. Faced with an overarching ‘debt overhang’ buffeting many of the continent’s 54-member states, the African Development Bank is dangling two options; float Green Bonds on security markets or entice cooperating partners to secure finance and close the continent’s current annual US$108 billion infrastructure financing deficit to close the gap.
Officiating at the three-day- 2022 African Long Term Finance Workshop dubbed: “Financing Africa Sustainable Development in Times of Global Headwinds” in Lusaka, AfDB’s country Manager-Zambia, Raubil Olaniyi Durowoju believes the funds can be mobilized to create ‘resilient infrastructure’ and enhance sustainable growth in key sectors in its 37-member states.
The 43rd COMESA Council of Ministers Meeting Opens in Zambia (COMESA)
The 43rd COMESA Council of Ministers meeting opened today in Lusaka with a call for the region to prioritize key areas that contribute to economic growth including trade and transit facilitation. Zambia Vice President, Her Honour Madam Mutale Nalumango who opened the meeting said the region also needs to implement interventions that promote the establishment of a regionally integrated, diversified and competitive production capacity anchored on agriculture, industry and the services sector. “Prioritization should be based on value addition, diversification, innovation and common regional standards, all with due considerations to the protection of the environment,” she said.
ECA emphasizes need to address digital divide in Africa (UNECA)
The Economic Commission for Africa’s (ECA) Director for Technology, Climate Change and Natural Resources Management, Jean-Paul Adam, flagged the importance of building the information and communication sector (ICT) infrastructure in Africa to address the digital divide at the upcoming World Summit on the Information Society (WSIS) Forum 2023. Jean-Paul made the comments during a session at the ongoing Internet Governance Forum (IGF) taking place in Addis Ababa from 28 November to 2 December.
Investing in resilient internet will enhance inclusive, sustainable growth in Africa (UNECA)
African countries have been urged to invest in building resilient internet infrastructure to tap digital opportunities and accelerate social and economic transformation on the continent. Global leaders attending the 17th Internet Governance Forum being held in Addis Ababa, Ethiopia, underscored the importance of digital technologies as tools for enhancing development across Africa.
More finance needed for Africa’s energy transition opportunities (Engineering News)
Africa’s transition to cleaner fuels and power generation presents investors with opportunities across the value chain, but more direct financing is needed on projects, the head of a South African independent power producer, said on Thursday. Brian Dames, chief executive officer of African Rainbow Energy & Power, said the shift to cleaner energy in South Africa for example, meant a massive addition of new generation capacity with strong growth potential.
African Development Bank launches model for deploying green financing across the continent (AfDB)
The African Development Bank is boosting the promotion of resilient, green and sustainable growth, with the launch of the African Green Bank Initiative, a model for deploying green financing across the continent. The initiative, which was presented at the just-concluded UN Climate Change Conference (COP27) in Egypt, will support the implementation of African countries’ Nationally Determined Contributions (NDCs).
Part of the African Financial Alliance on Climate Change (AFAC), the Green Bank Initiative will be supported by the African Green Finance Facility Fund (AG3F). AG3F will provide technical assistance to governments and financial institutions in creating and capitalising green facilities, co-invest alongside those in green projects and provide de-risking instruments to increase private sector mobilisation.
The Climate Investment Funds (CIF) will extend $350 million in financing and other support for nature-based solutions in nine countries under its Nature, People and Climate Investment platform. The beneficiary countries are: the Dominican Republic, Egypt, Fiji, Kenya, and the Zambezi River Basin Region, comprising Zambia, Malawi, Mozambique, Namibia and Tanzania. They were announced during the global climate summit (COP27) taking place in Sharm el-Sheikh, Egypt. The Nature, People and Climate program deploys nature-based solutions that acknowledge linkages among land use, climate-change mitigation and adaptation, and the improvement of the sources of livelihoods of rural communities and Indigenous people.
It covers sustainable agriculture, food supply, forests, resilient coastal systems and efforts to empower indigenous people and local communities. As a next step, the participating countries will develop investment plans in collaboration with a number of partner multilateral development banks. The platform also works with multilateral development banks to de-risk and scale investment based on a systems-level rather than a project-level approach.
African needs resilient food systems in the quest towards sustainable development (Kenya Broadcasting Corporation)
The Director of Agriculture and Rural Development at the African Union Commission (AUC) Dr. Godfrey Bahiigwa has called for action oriented dialogue and engagement in developing resilient food systems on the African continent. Speaking at the beginning of the Comprehensive Africa Agriculture Development Program, Partnership Program (CAADP PP) Dr. Bahiigwa said that resilient food systems will help to eliminate hunger and reduce poverty by raising economic growth.
Dr. Bahiigwa noted that the theme is apt for Africa at this time when climate change and other impacts including the war in Ukraine have impacted food production on the continent. “We need to facilitate action oriented dialogue, engagement and collaboration among stakeholders in the development of resilient food and nutrition systems on the African continent,” said Dr. Bahiigwa at the virtual opening of the 18th CAAD PP.
Growing urban population piles pressure on root crops (Business Daily)
Roots and tuber crops are increasingly becoming popular on breakfast tables as health-conscious urban households turn to these varieties as an alternative to wheat-based products such as bread, buns or chapati. The crops, which include sweet and Irish potatoes, cassava and yams have also been touted as the best alternative for maize because of their ability to cut overreliance on the staple and boost food security in Kenya. However, these crops have for long been neglected by farmers with only a handful growing them in small quantities despite surging demand from urban dwellers.
Canisius Kanangire, African Agricultural Technology Foundation (AATF) executive director says rapid urbanisation, increasing population and changing dietary habits of the growing urban populations are expected to drive high demand for root crops.
How ECOWAS countries can adopt low-carbon growth path, by FAO (EnviroNews Nigeria)
The Food and Agriculture Organisation of the United Nations (FAO) has urged countries in the Economic Community of West African States (ECOWAS) region to seize the opportunity for low-carbon growth trajectories by mobilising every possible financial and technological resource, either domestic or international, to reduce emission.
Mr Gouantoueu Guei, Sub-Regional Coordinator for FAO Sub-Regional Office for West Africa (FAOSFW), who made the submission at the opening of a capacity building session that held from November 21 to 25, 2022, shed some light on the “technical solutions” by which to achieve this, describing them as “the spirit of the Nationally Determined Contributions (NDCs) that the ECOWAS Member States have submitted as their commitments to meet the objectives of the Paris Climate Agreement”.
Addressing the audience at the hybrid gathering that had in attendance participants from Nigeria, Sierra Leone, Liberia, Ghana and Gambia, Guei, represented by Mehdi Drissi, Senior Programme Officer, FAOSFW, disclosed that one of the technical options that can be deployed immediately is to reduce carbon dioxide emissions through the reduction of deforestation and forest degradation, and the adoption of more sustainable agricultural practices, such as reduction of tillage, as well as integrated management of inputs and water. Another option, according to him, is to reduce methane and nitrous oxide emissions through the improvement of animal production, management of livestock effluents, as well as more efficient management of rice irrigation systems and inputs.
A third option, he said, is to store carbon through the use of conservation agriculture practices, improved management of forestry practices, afforestation and reforestation, improvement of pastures and restoration of degraded soils.
Southern African Development Community (SADC) Member States must work together and support joint efforts by the private and public sectors, non-governmental organisations and international organisations to have a greener Africa, Mr Emilio Sempris, the Regional Director of the Coalition for Rainforest Nations for Latin America and the Caribbean, has said.
Mr Sempris said this during a side event held on the margins of the UN Conference on Climate Change 27th Conference of Parties (COP27) meeting in Sharm el-Sheikh, Egypt. The side event was hosted by the SADC Secretariat on 11th November 2022 to accelerate implementation of the Great Green Wall Initiative (GWWI) in the SADC Region. The objective of the event was also to strengthen networks for cooperation among stakeholders, including raising awareness and build capacity on sustainable land management initiatives and programmes in the SADC Region.
He said his organisation supports SADC’s GGWI which is aimed at greening the Southern African sub region to curb desertification, and that this needed joint efforts by all as it was impossible for one institution or a coalition to solve it alone. The SADC GGWI is modelled alongside the GWWI of the Sahel Region in nothtern Africa which seeks to restore 100 million hectares of currently degraded land; sequester 250 million tonnes of carbon and create 10 million green jobs by 2030.
Afreximbank doubles funding facility for creative and cultural industries to US$1 billion (Afreximbank)
The Creative Africa Nexus Weekend (CANEX WKND) brought together the largest gathering for the cultural and creative industries in Africa and the Diaspora in Abidjan, Côte d’Ivoire, from 25th to 27th November 2022. Speaking at the opening of the three-day event on Friday evening, Professor Benedict Oramah, President and Chairman of the Board of Directors of African Export-Import Bank (Afreximbank), announced a funding package of US$1 billion dedicated towards supporting Africa’s creative industries under the auspices of the CANEX programme.
In 2020, Afreximbank introduced a dedicated US$500 million facility to support Africa’s creative and cultural industry as part of its wider CANEX programme. The Bank has been able to support the industry significantly through this facility which is now nearly fully utilised. Afreximbank President Prof. Benedict Oramah indicated that the doubling of the size of the facility to US$1 billion, for implementation over the next 3 years to 2025, will maintain and sustain the momentum and impact initiated by the original facility.
“We hope that the experience we gained implementing the original facility will enable us to provide the industry with a more efficient solution that can grow your business further. We expect to use this facility to support our talented youth,” said Prof. Oramah. “The facility finances all activities in the creative and cultural industry value chain, from content production to distribution. It supports the development of infrastructure for content creation, product design, distribution, logistics, and acquisition of intellectual property. Creative and cultural activities covered include sports, fashion, music, movies, art, including performance art, media and technology.”
EU reveals details of $150bn Global Gateway Plan for Africa (African Business)
Just a few months after the European Union-Africa Summit was held last February, Moussa Faki Mahamat, the Chairperson of the African Union (AU), and Ursula von der Leyen, the EU Commission President, met in Brussels on Tuesday to unveil details of the EU’s $150bn Global Gateway Plan for Africa. The Global Gateway represents a shift in the EU’s foreign policy from development aid to investments in key infrastructure projects and the energy and productive sectors. The plan, initially unveiled in December 2021 as part of the EU’s €300bn Global Gateway investment strategy – of which half is to be deployed in Africa – is seen by many observers as a counterweight to China’s Belt and Road Initiative. Von der Leyen alluded to the comparison in comments that seek to distinguish the EU scheme from its competitors.
“The difference between Global Gateway compared to others who come with infrastructure projects is that there is transparency, there is good governance, and there is the absolute goal to have locally added value and skills,” she told the press conference.
US trade with Africa in decline, but aid remains stable (African Business)
Africa accounts for less than 2% of total US merchandise exports and imports. The overall value of US exports to the continent fell from $32.9bn in 2011 to $26.7bn in 2021, while imports declined from $93bn in 2011 to $37.6bn in 2021, according to the United States Census Bureau. South Africa has become the largest US trading partner on the continent. Its exports to the US rose to $15.7bn in 2021, the highest for at least 10 years. Separate figures from the UN COMTRADE database show that exports of stones, glass, metals and pearls together amounted to $7.3bn.
Global economy
How trade can help end plastic pollution | World Economic Forum (WEF)
Government representatives are currently meeting in Uruguay to kickstart the first Intergovernmental Negotiation Committee (INC) on reaching an internationally binding treaty to end plastic pollution that the United Nations Environment Assembly (UNEA) promised to deliver by 2024, otherwise known as the UNEA 5.2 resolution.
It is the first time the world will see multilateral action against plastic pollution on such a large scale as the transboundary nature of plastic pollution becomes increasingly evident.
Harnessing digital technologies together can “provide the answers we need” (FAO)
Digital technologies can make large contributions to global goals including sustainable agriculture and hunger reduction, making focused collaboration an imperative, QU Dongyu, Director-General of the Food and Agriculture Organization of the United Nations (FAO), said today. Along with artificial intelligence, science and innovation, they “can provide the answers we need,” he said at a virtual forum Connecting the digital dots: How the United Nations System is supporting digital transforming and looking toward the Global Digital Compact.
Agrifood systems have been heavily affected by recent shocks from the COVID-19 pandemic, the war in Ukraine, other ongoing conflicts around the world and the impacts of the climate crisis, so that today close to 1 billion people are at risk of famine in vulnerable countries and three times as many cannot afford healthy diets, the Director-General said. “This reality forces us to reconsider our priorities,” especially as there are only seven years before the deadline of the 2030 Agenda, he added. “We need to take bold action now.”
Remittances Grow 5% in 2022, Despite Global Headwinds (World Bank)
Remittances to low- and middle-income countries (LMICs) withstood global headwinds in 2022, growing an estimated 5% to $626 billion. This is sharply lower than the 10.2% increase in 2021, according to the latest World Bank Migration and Development Brief. Remittances are a vital source of household income for LMICs. They alleviate poverty, improve nutritional outcomes, and are associated with increased birth weight and higher school enrollment rates for children in disadvantaged households. Studies show that remittances help recipient households to build resilience, for example through financing better housing and to cope with the losses in the aftermath of disasters.
Remittance flows to developing regions were shaped by several factors in 2022. A reopening of host economies as the COVID-19 pandemic receded supported migrants’ employment and their ability to continue helping their families back home. Rising prices, on the other hand, adversely affected migrants’ real incomes.
Tax revenues rebounded as economies recovered from the COVID-19 pandemic, according to new OECD data (OECD)
Tax revenues bounced back in 2021 as OECD economies recovered from the initial impact of the COVID-19 pandemic, according to new OECD data released today. Revenue Statistics 2022, which presents tax revenue data for the second year of the COVID-19 pandemic, shows that the OECD average tax-to-GDP ratio rose by 0.6 percentage points (p.p.) in 2021, to 34.1%, the second-strongest year-on-year increase since 1990. The report also shows that tax-to-GDP ratios increased in 24 of the 36 OECD countries for which 2021 data on tax revenues was available, declined in 11 and remained unchanged in one.
‘MDB reform to scale up climate finance to developing nations to be discussed at G20’ (Hindustan Times)
The issue of reforms in multilateral development bank (MDB) practices to scale up climate finance without further indebting developing nations is likely to be discussed by G20, World Bank’s India head Auguste Tano Kouamé said on Wednesday.
The Sharm El Sheikh Implementation Plan, the decision from UN Climate Conference (COP27) which was agreed upon on November 20 by 193 parties called on multilateral development banks such as the World Bank to reform their practices and introduce non-debt instruments taking into account debt burden among borrowing countries.
“Calls on the shareholders of multilateral development banks and international financial institutions to reform multilateral development bank practices and priorities, align and scale up funding, ensure simplified access and mobilize climate finance from various sources and encourages multilateral development banks to define a new vision and commensurate operational model, channels and instruments that are fit for the purpose of adequately addressing the global climate emergency, including deploying a full suite of instruments, from grants to guarantees and non-debt instruments, taking into account debt burdens, and to address risk appetite, with a view to substantially increasing climate finance,” the plan said.
Auguste Tano Kouamé, World Bank’s country director responded to the COP27 outcome on Wednesday. He said the MDB reform should be discussed at length at G20 and India will play a big role being the Presidency.
Commonwealth Launches New Policymaker’s Guide to Manufacturing in a Digital World (Commonwealth)
This week, recognising the importance of manufacturing to development, economic growth and job creation, the Commonwealth Connectivity Agenda launched ‘A Policymaker’s Guide to Manufacturing 4.0’ and a pilot implementation program on digital industrial development in Mauritius. This digital-first Guide has been developed to assist Commonwealth policymakers, especially those in least developed countries (LDCs) and small island developing states (SIDS), to understand the transformative impact of new digital technologies on their industrial development and how to develop policy settings to take advantage of new and emerging opportunities while addressing potential barriers along the way.
The guide was launched at the 2022 National Manufacturing Summit in Mauritius, where the Commonwealth Connectivity Agenda (CCA) also launched a pilot to implement the Guide with the Mauritius Ministry of Industrial Development, SMEs and Cooperatives. This implementation will provide practical lessons on the opportunities and challenges facing small island developing states in their digital industrial development.
WTO issues 2022 edition of flagship statistical publication (WTO)
The World Trade Statistical Review 2022 looks at the effects of COVID-19 and the war in Ukraine on the global economy, commodity prices, international trade in goods and services, and supply chains.
Director-General Ngozi Okonjo-Iweala says in the foreword to the report: “The war, which started in February 2022, has weighed heavily on world trade, with sharp rises in commodity prices and disruptions in access to essential goods such as grain, gas, and fertilizers. The Black Sea Grain Initiative, a deal brokered by the United Nations and Türkiye to get trapped Ukrainian grain, as well as Russian food and fertilizer, to international markets, has delivered critical supplies to people in developing and other countries, and put downward pressure on world market prices. But prices remain high by historical standards in many countries, particularly in local currency terms.”
Related News
tralac Daily News
Local news
the dtic Relaunches Agro-Processing Scheme to Increase Uptake (the dtic)
The Department of Trade, Industry and Competition (the dtic) has relaunched the Agro-Processing Support Scheme (APSS) in order to increase the uptake of the incentive programme, which is aimed at stimulating investment by South African agro-processing enterprises. According to the Chief Director of Strategic Partnership and Customer Care at the dtic, Ms Tsepiso Makgothi, the amendment of the APSS was the result of an engagement with various stakeholders and businesses where it became apparent that some companies did not have the minimum R1 million investment that was required, while others were of the view that the APSS guidelines were too onerous.
“Agro-processing remains a key priority economic sector as per the Industrial Policy Action Plan (IPAP). A key characteristic of agro-processing is its strong upstream and downstream linkages. Although other incentive programmes for the manufacturing sector have been effective in achieving their intended objectives, a dedicated incentive scheme has greater potential in creating an enabling environment for small and medium businesses in the agro-processing industry to participate meaningfully in the mainstream economy,” says Makgothi.
SA eyes green hydrogen opportunities (SAnews)
President Cyril Ramaphosa says South Africa’s intention is to become a world leader in green hydrogen. “We are determined to make full use of our substantial endowments to meet the challenges of climate change and to achieve a just transition that benefits all our people,” the President said. President Ramaphosa was delivering a keynote address at the opening of the inaugural South Africa Green Hydrogen Summit, held in Cape Town, on Tuesday. The summit showcases the country’s offering as a large-scale, low cost, world-class green hydrogen production hub and total value chain investment destination.
It builds on the opportunities identified during the Sustainable Infrastructure Development Symposium South Africa (SIDSSA) of 2021. The country looks forward to welcoming more of the firms in the green hydrogen value chain and associated technologies into the market.
UK, South Africa to establish Partnership on Minerals for Future Clean Energy Technologies (Engineering News)
UK Foreign Secretary James Cleverly announced this week that the UK and South Africa were establishing a new Partnership on Minerals for Future Clean Energy Technologies to promote increased responsible exploration, production and processing of minerals in South Africa and Southern Africa. Countries in the Southern African region are among the world’s leading producers of vital minerals used in clean technology, including platinum group metals and iridium for hydrogen production and vanadium and manganese for battery storage. This partnership will use the UK’s expertise as the home to leading global mining houses and as a financial services centre for metals to bolster sustainable and responsible production, said Cleverly.
UK PM Rishi Sunak, meanwhile, commented that the next phase of the UK-South Africa Infrastructure Partnership would support South Africa’s economic growth through major infrastructure developments and offering increased access to UK companies to projects worth up to £5.37-billion over the next three years.
UK, Nigeria Trade Volume Hits £5.5bn (Leadership)
The United Kingdom has announced that total trade in goods and services (exports plus imports) between it and Nigeria currently stands at £5.5billion as both sides confirmed their shared interest in pursuing a potential Enhanced Trade and Investment Partnership at the eighth and final UK-Nigeria Economic Development Forum (EDF).
A statement issued on Monday by Press Officer of the UK Deputy High Commission in Lagos, Ndidiamaka Eze, said that of this £5.5 billion total UK exports to Nigeria amounted to £3.3 billion in the four quarters to the end of Q2 2022; while total UK imports from Nigeria amounted to £2.2 billion in the four quarters to the end of Q2 2022.
The agreement in the EDF Memorandum of Understanding (MoU) came to a close on Monday, and the UK and Nigeria agreed that the Enhanced Trade and Investment Partnership will offer an alternative high-profile mechanism to progress bilateral economic issues of mutual strategic importance, under which both sides will continue to work together to resolve market access issues and enhance economic cooperation. The EDF, which held in Abuja on Monday was launched by the former UK Prime Minister, Theresa May and President Muhammadu Buhari in August 2018 and held bi-annually; serving as a platform to address market access barriers, respond to opportunities and challenges of doing business and boost bilateral trade and investment in our two countries.
Kenya to create food export hubs (Xinhua)
The Kenyan government signed an agreement on Monday with an agro-processing and food distribution firm Twiga Foods, to help create small manufacturing parks for food crops to help expand the reach of the Kenyan food products to the Eastern Africa regional market. Kenya’s President William Ruto, who witnessed the signing of the agreement in Nairobi, the capital of Kenya, said the company would work towards creating regional delivery hubs for food exports to the Democratic Republic of the Congo (DRC) and across the Central African region following DRC’s entry into the East African Community (EAC).
Ruto who also witnessed the launching of a regional food distribution center located at the Tatu City Industrial Park in Ruiru, Kiambu County on the outskirts of Nairobi, said the objective of financing the establishment of an efficient retail network was to oversee the reduction in the cost of foodstuffs.
Reprieve for Rwanda as China cancels $7.1 million debt (The East African)
China has offered Rwanda a $7.1 million debt relief or 50 million RMB Yuan on a loan used to build the 6.36-kilometre Masaka-Kabuga road under the Kigali urban road upgrading project. According to a statement issued by Rwanda, the move is part of the Chinese government’s decision to cancel the outstanding interest-free loan in accordance with the agreement on economic and technical cooperation between the two countries.
China says the debt cancellation is part of the economic package announced by President Xi Jinping at the 8th Ministerial Conference of the Forum on China-Africa Cooperation. “China hopes, by offering this financial support, to make a contribution to Rwanda’s all-round transformation and recovery from the malign impact of the Covid-19 pandemic. In the future, China will work with Rwanda for deeper practical cooperation in various fields under the Belt and Road Initiative framework to deliver more benefits to the two peoples,” Wang said in a statement.
Somalia’s Economy Expected to Grow Despite Significant Shocks (World Bank)
Somalia’s economy rebounded with GDP growth of 2.9 percent in 2021, up from a contraction of 0.3 percent in 2020 and 0.5 percent higher than last year’s forecast of 2.4 percent. This, despite significant shocks and factors that muted economic recovery, including delayed elections, drought, supply chain bottlenecks from COVID-19 closures, and increased insecurity.
The latest Somalia Economic Update (SEU) report has a special focus on social protection which is seen to have a key role in addressing the widespread poverty and inequality across the country. Given the enormous, untapped potential for improving the human capital of its citizens, Somalia needs to invest in an integrated, shock-responsive, and human capital-oriented social protection system, which protects citizens against risks along the life cycle and promotes inclusive policies.
The report also notes that as Somalia transitions out of fragility, it needs to gradually transition from humanitarian aid to development approaches. A convergence of humanitarian interventions and national social safety net systems, with a shared, if not common, understanding and approach to monitoring and evaluation, policy support, institution building, and operational alignment in areas such as targeting and eligibility, benefit levels, and data exchange, are highly encouraged. This is because in a limited fiscal space context like in Somalia the alignment of the humanitarian safety net with national systems is critical to addressing chronic poverty and building sustainable resilience.
African trade and integration
Joint Statement on the Africa Industrialization Week (African Union)
The Africa Industrialization Day is being celebrated this year in a completely uncertain global landscape owing to the prolonged effects of the COVID-19 pandemic, the pressing challenges posed by climate change and the Russia-Ukraine conflict that have disrupted the global supply chains with huge consequences globally and more fundamentally on African economies.
These circumstances have once again revealed the extreme fragility of African economies against external shocks and reinforced the need for structural changes necessary for the acceleration of productive transformation through a determined shift towards sustainable and resilient industrialization in the years and decades ahead.
As the Africa Industrialization Day provides the opportunity to take stock of the progress made during the year on the drive towards industrialization, it also provides, this year, a policy dialogue platform to firmly recommit to accelerating structural transformation. Africa is widely seen as a future investment and development frontier given its extraordinary economic potential. This year’s theme: “Industrializing Africa: renewed commitment towards Inclusive and Sustainable Industrialization and Economic Diversification” allows us to reflect on the need for accelerating industrialization in Africa as a means to strengthen its ability to navigate a changing geopolitical landscape where nearshoring appears to be an effective response to potential disruption of global supply chains.
As Agriculture is an economic opportunity enhancer, it must therefore remain a priority investment area for accelerated Africa’s industrialization in the perspective of reducing continental exposure to external future shocks.
Investing in strategic value chains such as the cotton and apparels industry as well as the pharmaceutical industry is critical to improving Africa’s resilience to future health and pandemics.
The disruption of global supply chains also opens a window of opportunity to harness a strategic commodity-oriented industrialization in a climate friendly manner. Africa has the huge potential of embracing this shift through targeted investments in commodity value chains including in the framework of the Africa’s Mining Vision that sets actionable priorities for Africa’s mining sector that can become a key enabler of a diversified, vibrant and globally competitive industrial African economy. Accelerating productive transformation in this strategic sector requires a strategic shift from the traditional extraction and export of commodities to massive investments in productive transformation and industrialization in Africa. This need and can be done if there is a renewed commitment by all parties, public and private to transform African commodities as a means to widen continental economic opportunities through innovation and jobs creation.
Administrative Processes Simplified to Advance the COMESA FTA (COMESA)
The Common Market for Eastern and Southern Africa (COMESA) has made major strides in simplifying administrative processes under the Free Trade Area to deepen intra-regional trade which stood at US$90bn as of 2020. This is a reduction from the 2019 figure of $123.4bn due to COVID-19.
COMESA Secretary General Chileshe Kapwepwe said this during the opening of the 43rd COMESA Intergovernmental Committee meeting in Lusaka on Tuesday 29 November 2022. In the coming year 2023, she said, the Secretariat will be rolling out further innovations on electronic exchanges of documents related to the import and export function as the region strengthens the COMESA digital FTA.
She said the Secretariat has implemented various policies and instruments including the Simplified Trade Regime (STR), trade facilitation and human mobility border specific action plans to increase formal small-scale cross border trade and ensure increased income for small scale traders, most of whom are women.
Also earmarked for 2023 is the construction of border markets supported by the European Union (EU) at selected borders in target Member States to provide convenient trading spaces for small scale cross border traders This notwithstanding, she noted that the region has faced obstacles on free movement of people and services and urged Member States to domesticate the instruments related to these programmes.
Collaboration and partnerships will secure meaningful connectivity in Africa (UNECA)
Internet access is pivotal to Africa’s economic and social transformation making it vital for governments to invest in digital technologies, the United Nations Economic Commission for Africa, Acting Executive Secretary, Antonio Pedro, has urged “Digitalisation is key to achieving the SDGs and Agenda 2063 and achieving that requires the contribution of all stakeholders,” said Mr. Pedro, speaking at a High-Level Leaders Session on Universal, Affordable and Meaningful Connectivity, at the opening of the Internet Governance Forum 2022 in Addis Ababa, Ethiopia.
Mr. Pedro underscored the importance of partnerships and collaboration in boosting digital connectivity in Africa which is on the path of economic transformation with the operationalisation of the Africa Continental Free Trade Area (AfCFTA).
The UN official said the African Union Commissions’ Digital Transformation Strategy was an excellent framework for prioritizing digital infrastructure and accessibility as a prerequisite to achieving digital transformation and prosperity in line with Agenda 2063. Already the ECA is promoting broadband expansion efforts across member states which will have substantial impact on regional cooperation and integration in Africa.
AFAC unveils new strategic vision to catalyze private financing for climate action across Africa (AfDB)
The African Financial Alliance on Climate Change (AFAC) unveiled a new vision for 2030 during the global climate summit (COP27), prioritizing mobilizing capital and tools to meet the Paris Agreement goal.
The new blueprint mainly focused on aligning financial flows with achieving greenhouse gas emissions and climate-resilient development by 2030. It proposed improvement in areas such as leadership awareness, access to data, climate risk regulation, climate risk management, and green finance.
The strategy also identified three critical challenges that need to be overcome: a lack of available data to assess financial risk, inadequate internal capacity at national central banks to create a level playing field for the private and public sectors, and the need to regularize and harmonize with international standards and practices.
9 months after Summit: European Union and African Union Commissions take stock of the implementation of the February Summit commitments (European Commission)
The 11th Commission-to-Commission meeting between the European Union and the African Union was co-chaired by President Ursula von der Leyen and Chairperson Moussa Faki Mahamat. 20 EU Commissioners, the AU Commission Deputy Chairperson and 5 AU Commissioners participated, which is another demonstration of the strength of our partnership.
In a series of working sessions, the two Commissions discussed the urgent issues facing both continents, and took stock of progress made in implementing the February Summit commitments in four key areas: Enhancing connectivity through economic integration: Digital, Energy, Transport, value chains and implementation of the African Continental Free Trade Area; Boosting human development: Health, Education (including TVET), Science, Technology, Innovation, Migration and Mobility; Building resilience for people through sustainable Food systems, tackling Climate and Environmental crises, and Humanitarian action; and Peace, Security and Governance.
Both Commissions agreed to establish a high-level dialogue on economic integration with a view to strengthen trade relations and sustainable investment between the two Continents in furtherance of the development of regional value chains and industrialisation of Africa. The Commissions agreed to launch the first meeting of this high-level dialogue in 2023. The two Commissions also welcomed the work done by the AfCFTA Secretariat, as well as the outcome of a diagnostic study on regional value chains, co-financed by the EU and the African Union Commission and presented to the recent African Union Summit on Industrialisation, Economic Diversification and the AfCFTA. It identifies almost 100 value chains with real potential and highlights the most promising ones such as infant food, automotives, pharmaceuticals and apparel of cotton. Both Commissions agreed to take this work further. The two Commissions also discussed around raw materials and agreed that there is scope for further development and collaboration in order to increase local added value for these strategic value chains.
Global economy
Maritime supply chains need urgent investment to boost resilience to future crises (UNCTAD)
UNCTAD in its flagship “Review of Maritime Transport 2022” has called for increased investment in maritime supply chains. Ports, shipping fleets and hinterland connections need to be better prepared for future global crises, climate change and the transition to low-carbon energy. The supply chain crisis of the last two years has shown that a mismatch between demand and supply of maritime logistics capacity leads to surges in freight rates, congestion, and critical interruptions to global value chains.
“If there is one thing we have learned from the crisis of the last two years it is that ports and shipping greatly matter for a well-functioning global economy,” said Shamika N. Sirimanne, director of UNCTAD’s technology and logistics division. “Higher freight rates have led to surging consumer prices, especially for the most vulnerable. Interrupted supply chains led to lay-offs and food insecurity.”
UNCTAD calls on countries to carefully assess potential changes in shipping demand, develop and upgrade port infrastructure and hinterland connections while involving the private sector. They should also bolster port connectivity, expand storage and warehousing space and capabilities, minimize labour and equipment shortages.
Goods Council discusses high number of trade concerns, MC12 implementation, LDC graduation (WTO)
The Council heard 45 trade concerns on maintained or newly introduced measures by 24 WTO members, which included nine new issues. A wide range of measures was raised, including tariffs and tariff rate quotas (TRQs), import/export bans and restrictions, technical barriers to trade, sanitary and phytosanitary measures, subsidies, local content requirements, alleged discriminatory domestic taxation, domestic certification and administrative procedures, and countervailing and anti-dumping duties.
These concerns encompass a wide range of sectors (agricultural, information technology, fisheries, forestry and food products), as well as specific products, such as air conditioners, apples and pears, onions and potatoes, cheese, pulses, cosmetics, sugar, stainless steel, mobile phones, plain copier paper and tyres.
Goods barometer sinks below trend as global import demand weakens (WTO)
The downturn in the goods barometer is consistent with the WTO’s trade forecast of 5 October, which predicted merchandise trade volume growth of 3.5% in 2022 and 1.0% in 2023 due to several related shocks including the war in Ukraine, high energy prices, and monetary tightening in major economies. Merchandise trade posted a 4.7% year‐on‐year increase in the second quarter after growing 4.8% in the first quarter. For the forecast to be realised, trade growth would have to average around 2.4% year-on-year in the second half of 2022.
The barometer index was weighed down by negative readings in sub-indices representing export orders (91.7), air freight (93.3) and electronic components (91.0). Together, these suggest cooling business sentiment and weaker global import demand. The container shipping (99.3) and raw materials (97.6) indices finished only slightly below trend but have lost momentum. The main exception is the automotive products index (103.8), which rose above trend due to stronger vehicle sales in the United States and increased exports from Japan as supply conditions improved and as the yen continued to depreciate.
‘Intense diplomatic efforts’ continue to ensure food and fertilizers reach those in need (UN News)
Stéphane Dujarric reiterated that the UN welcomed the donation of 260,000 metric tonnes of fertilizer which has been stored in European ports and warehouses, “which will serve to alleviate humanitarian needs and prevent catastrophic crop loss in Africa, where it is currently planting season.” The first shipment of 20,000 tonnes left the Netherlands on a World Food Programme (WFP-chartered vessel, MV Greenwich on Tuesday, and is due to dock in Mozambique, when it will then be transported to landlocked Malawi.
“It will be the first of a series of shipments of fertilizer destined for a number of other countries on the African continent in the coming months”, added Mr. Dujarric.
WFP said in a statement issued earlier in the month, when the deal stemming from an agreement in July, alongside the successful Black Sea Grain Initiative, was first announced, that the world urgently needed “concerted efforts” to solve the global food supply crunch, which has been exacerbated by Russia’s invasion of Ukraine. The two countries are key food and fertilizer exporters to developing world markets, and WFP said that smallholder farmers have been particularly hard hit by rising costs, inflation and supply chain blockages. “We cannot allow global fertilizer accessibility problems to become a global food shortage”, said WFP. “Reconnecting fertilizer markets is critical.”
Latest monthly agri-food trade report: August (European Commission)
Both EU agri-food exports and imports increased in August 2022, leading to the highest point for EU monthly trade flows in 2022 at €35 billion. EU’s trade balance has also reached its highest value of the year that same month at €5.6 billion. The value of EU exports increased by 6% and imports by 3% compared to July 2022. These are the main finding of the latest monthly agri-food trade report published today by the European Commission.
The biggest export values in August were for cereal preparations (€1.7 billion), wheat (€ 1.6 billion) and wine (€1.4 billion). Large shares of EU wheat exports are going to the Middle East/North Africa (MENA) region and to sub-Saharan Africa. In August only, 2 million tons of wheat reached the MENA region (48% of total EU wheat exports) and 1.5 million tons arrived in sub-Saharan Africa (34% of total EU wheat exports).
Trade and international trade cooperation as a tool for LDCs to adapt to climate change (Trade for Development News)
Climate change is one of the major threats to our societies, ecosystems and economies. Increasingly complex social and political challenges will arise as populations are forced to migrate from areas affected by climate change, such as through rising sea levels or droughts. A billion people who currently live no more than ten metres above sea level will be impacted. Human health is also expected to deteriorate since climate change affects the social and environmental determinants of health, such as clean air and water, and secure food and shelter. Vulnerable populations in developing countries, particularly least developed countries (LDCs) and Small Island Developing States (SIDS), will be the most severely hit. UNICEF reports that devastating floods have hit at least 27.7 million children in 27 countries around the world, with the number of children affected by flooding in Chad, Gambia, Pakistan and north-eastern Bangladesh being the largest in over 30 years.
Climate change also impacts trade. Extreme weather events can reduce productivity, increase costs and supply chain disruptions in the short term and alter countries’ comparative advantages and specialization in long term. The WTO World Trade Report 2022 finds that a rise of 1°C has been found to reduce the annual growth of developing countries’ exports by between 2.0 and 5.7 percentage points.
The list of 46 LDCs – home to about 1.1 billion people – is responsible for less than 1% of historical anthropogenic greenhouse gas emissions. While LDCs have the smallest environmental footprints, they are among the most vulnerable to climate change due to their greater exposure to sea-level rise, desertification, fires, floods and droughts. LDCs typically have lower levels of adaptive capacities to overcome such challenges.
Climate change is a multi-sectoral threat for LDCs that poses challenges to agriculture and tourism. Trade infrastructure – such as port facilities, roads, railways, airports and bridges – is dangerously at risk of damage from the consequences of climate change, including rising sea levels and the increased occurrence of extreme weather events. This threatens to further weaken LDCs’ ability to trade competitively. And it is not just the physical climatic disruptions that pose challenges to the most vulnerable countries: governments across the world are considering various mitigation strategies, policies and other measures to combat climate change. Yet, such measures, if not well designed, could additionally hinder LDCs’ trade competitiveness. Responding to the growing climate crisis effectively and building resilience is – together with climate change mitigation – a critical sustainable development strategy. Trade coupled with efficient trade policies can support the sustainability and the resilience of supply chains and ensure climate adaptation and just transition in several ways.
UN Forum tackles ‘digital poverty’ facing 2.7 billion people (UN News)
“With the right policies in place, digital technology can give an unprecedented boost to sustainable development, particularly for the poorest countries,” said UN Secretary-General António Guterres in a press release. “This calls for more connectivity; and less digital fragmentation. More bridges across digital divides; and fewer barriers. Greater autonomy for ordinary people; less abuse and disinformation.”
The 17th Internet Governance Forum, which kicked off on Monday and runs through Friday, is the first held in Africa in 11 years. It puts a spotlight on the least connected region, with 60 per cent of the population lacking Internet access.
Globally, more men use the Internet at 62 per cent, compared with 57 per cent of women. And in nearly all countries where data are available, rates of Internet use are higher for those with more education. Addressing these digital divides or “digital poverty” is at the top of the Forum’s agenda.
While digital technologies transform lives and livelihood for the better, increased use of Internet has also paved the way for the proliferation of misinformation, disinformation and hate speech, the regular occurrence of data breaches, and an increase in cybercrimes.
This year’s theme, “Resilient Internet for a Shared Sustainable and Common Future”, calls for collective actions and a shared responsibility to connect all people and safeguard human rights; avoid Internet fragmentation; govern data and protect privacy; enable safety, security and accountability; and address advanced digital technologies.
“The Internet is the platform that will accelerate progress towards the SDGs. Our collective task here in Addis Ababa is to unleash the power and potential of a resilient Internet for our shared sustainable and common future,” said Li Junhua, United Nations Under-Secretary-General for Economic and Social Affairs.
To support the production of data for the most urgent policy needs, IMF staff, in close cooperation with the Financial Stability Board (FSB) Secretariat and the Inter-Agency Group on Economic and Financial Statistics (IAG), and in consultation with participating economies, have developed a high-level workplan for a new Data Gaps Initiative (DGI). The Data Gaps Initiative will build on the close collaboration among the participating economies and international organizations established during Phase 2 of the Data Gaps Initiative (DGI-2), and explicit support from the G20. The recommendations are expected to be implemented within five years after the launch. As with previous phases, implementation will be monitored and published on the DGI Website beginning in 2023.
Related News
tralac Daily News
Local news
R4-trillion needed for South Africa’s hydrogen economy, PIC declares (Engineering News)
South Africa’s State-owned Public Investment Corporation (PIC) stated on Monday that more than R4.3-trillion is required for the development of the hydrogen economy, which it declared positive for people, planet, and client portfolios. The hydrogen investment strategy of the PIC, which has R2.339-trillion worth of assets under management, is aimed at unlocking value.
Administrative costs for fresh and dry produce exporters reduced by 62pc (Capital News)
The administrative costs of exporting fresh and dry produce from Kenya to foreign markets has reduced by 62 percent following the simplification of export trade procedures by the Kenya Plant Health Inspectorate Service (KEPHIS). The success is as a result of collaboration between the Kenya Trade Network Agency (KenTrade) and the National Trade Facilitation Committee(NTFC) in the simplification of procedures that apply to the export of coffee, tea, flowers, beans, peas, avocados, nuts and oil crops products, cotton, sisal among others.
The Acting Chief Executive Officer of Kenya Trade Network Agency (KenTrade) Mr. David Ngarama said the simplification of KEPHIS’ registration procedure has not only impacted the total number of steps involved in the export of fresh and dry produce but has also significantly reduced the administrative burden cost incurred by businesses in the registration procedure from KES 40,197.35 to KES 15, 287.29, thus, saving each business wishing to trade any type of plant products a total of KES 24,910.06.
President Ruto looks East to get Kenya affordable project financing (The East African)
Kenya’s President William Ruto doesn’t like debt. He just wants the government to have enough money. Earlier in November 11, he told a stakeholder’s workshop on pensions in Nairobi that the government will not be borrowing any money at a rate of more than 10 percent from local markets. This drew sharp criticism from money market players who trade in treasury Bonds, who alleged that the government was discouraging lending. Governments borrow locally through treasury Bonds. “I promise you I will not be the president that will continue the journey of taking our country into debt,” President Ruto said. “It is a difficult choice but I don’t see an option out. We are going to rationalise the budget and look at what else we can do,” he added.
Hardly a week later, President Ruto this week travelled on an official three-day visit to South Korea, where he agreed with Seoul to have the latter take on a $1 billion financing of projects including the planned tech city at Konza, 60km southeast of Nairobi. He also Kenya as being ready for investment in trade and green energy.
Fears soar as Kenya dangles imports ban (Monitor)
Kenya’s decision to ban the importation of goods it can manufacture locally—particularly steel and iron products—starting next year – has triggered new anxieties in Uganda. Kenya President William Ruto announced a fortnight ago that his administration is in the latter stages of drafting a policy that will not only ensure available raw materials are exploited but also manufacturers are protected.
“I have instructed the Cabinet Secretary for Trade and his team to work on a policy framework to ensure we increase our industrialisation percentage, which had dropped from nine to seven percent,” President Ruto said while opening Devki Steel Mills, adding that 16 such companies had folded in the past five years, thanks to stiff competition from foreign companies.
Tunisia, Libya adopt joint working strategy to boost trade relations (TAP)
A joint working strategy was adopted by the Export Promotion Centre (CEPEX) and the Libyan Export Development Centre for the 2023 year, in a bid to develop intra-trade relations and trade between Libya and Tunisia, said CEPEX. This strategy was outlined in a memorandum of understanding (MoU) inked on Friday between the two sides in Tunis, as part of the implementation of a MoU dating back to June 2013, and the annex to the MoU concluded in 2020.
African trade and integration
Thirty-seven of 52 African countries have become more industrialized over the past eleven years, according to a new report from the African Development Bank, the African Union and the United Nations Industrial Development Organization (UNIDO). The Africa Industrialization Index (AII) report provides a country-level assessment of 52 African countries’ progress across 19 key indicators. The report will enable African governments to identify comparator countries to benchmark their own industrial performance and identify best practices more effectively. The African Development Bank, the African Union and UNIDO jointly launched the inaugural edition of the AII on the sidelines of the African Union Summit on Industrialization and Economic Diversification in Niamey, Niger.
South Africa maintained a very high ranking throughout the 2010-2021 period, followed closely by Morocco, which held second place as of 2022. Rounding out the top six over the period are Egypt, Tunisia, Mauritius, and Eswatini.
Abdu Mukhtar, African Development Bank Director for Industrial and Trade Development, represented the institution at the launch event. He said that while Africa had shown encouraging progress in industrialization over the 2010-2022 period, the Covid-19 pandemic and Russia’s invasion of Ukraine had set back its efforts and highlighted gaps in production systems. “The continent has a unique opportunity to sort out this dependency by further integrating and conquering its own emerging markets.”
With the right policies, the AfCFTA can drive Africa’s industrialization (UNECA)
The African Continental Free Trade Area (AfCFTA) will spur Africa’s industrialisation and deepen regional integration provided the continent institutes supportive policy reforms and foster trade, experts predict.
Speaking at a panel discussion on Industrializing Africa: Renewed commitment to inclusive and sustainable growth, trade and economic experts noted that Africa can leverage the AfCFTA to drive its industrialization and economic transformation by implementing the right trade measures.
The discussion, hosted by the International Growth Centre and the Firoz Lalji Institute for Africa at the London School of Economics and Political Science, was part of events to mark the Africa Industrialisation Week 2022. It explored key questions regarding the industrialisation strategies that different African countries have adopted and on how the AfCFTA will influence industrialization strategies that contribute to poverty reduction and environmentally sound industrial development in Africa.
“There is consensus that one of the key reasons we have the AfCFTA was basically to foster industrialization and transformation of the continent. The questions is how do we do that,” Mr. Karingi told the panel discussion moderated by Mr. David Luke, Professor in Practice and Strategic Director at the Firoz Lalji Institute for Africa.
Africa must diversify its food sources to reduce dependency (The Exchange)
Africa dependency for supply of crucial needs like food must be changed through diversification of sources and investing in its own regional specialization for production of goods and services. The future of Africa should be where the EAC produces this, while ECOWAS produces that and SADC produces…and so on and so forth, the regions must specialize and safety measures put in place to secure production and trade routes to protect against disruptions.
Global value chains have increased inter-connectivity and reliance on each other at a global scale, a reality that is been reversed by trade wars, actual wars pandemic threats and resulting friend shoring.
While the world is still very interconnected and value chains of the goods and services we consume web in and out of multiple countries, trade wars like United States and China, and actual wars like Russia and Ukraine are now deglobalizing the world village.
Accelerating Energy Infrastructure Development in Africa (Engineering News)
By 2050, it’s expected that Africa will be home to 2 billion people. To secure the necessary socio-economic development of such a large population, the focus of the next few decades must be infrastructural transformation. Tapping into the continent’s abundant energy resources necessitates a significant financial commitment, however the opportunities for investors are attractive, and many are taking note.
As carbon-neutral initiatives and environmental protection are top priorities for many African governments, harnessing the continent’s capacity to produce renewable energy will catalyse critical improvements that help to transform Africa into a competitive, industrialised global player.
Road toll charges remain a hurdle to EAC cross-border trade (The East African)
Road tolls have again emerged as hurdles to smooth trade between East African Community member countries as each government charges its own fees on trucks moving into its territory. The region’s business stakeholders are however optimistic that trade in the bloc will increase by 11 percent in 2022-2023 if toll fees and domestic taxes are harmonised to prevent distortion and create a level playing field for businesses. “We are proposing that EAC partner states charge a uniform fee of $10 per 100km on all trucks the way Uganda does,” said John Kalisa, chief executive of the East African Business Council.
“Once collected, the amount should be used for the purpose for which it was intended — that is to repair and maintain the same roads,” he added. Tolls are usually implemented to help recoup the cost of road construction and maintenance, as well as finance other infrastructure projects.
EABC is reacting to complaints by importers who have highlighted the rising cost of doing business in the region occasioned by the varying charges in each member country even as normal cross border trade returns free of pandemic restrictions.
The United Nations Economic Commission for Africa (ECA), in collaboration with Namibia’s Ministry of Industrialisation and Trade (MIT), last week facilitated an information sharing and capacity building event on the African Continental Free Trade Agreement (AfCFTA). The event, which was held at the Windhoek Country Club and Resort, specifically focused on the continental agreement’s Protocol on Women and Youth in Trade.
The session was organised as a follow-up to the launch of Namibia’s National AfCFTA Implementation Strategy and Action Plan for 2022-2027, which was held on Monday, 21 November 2022 at the same venue.
On his part, Melaku Desta, Coordinator at ECA’s African Trade Policy Centre (ATPC), speaking on behalf of the ECA, highlighted the trade-related work being done by ATPC and the ECA at large, which he described as a common resource for the continent. Desta also described the major benefits projected to come out of AfCFTA implementation in terms of improved intra-African trade, industrialisation, poverty reduction, and increased welfare. Desta further stressed that, according to ECA research, “intra-African trade in critical industries, including agri-food, services, and manufacturing, are all expected to increase by nearly 40% in 2045, compared to the situation without the AfCFTA.”
Looming global recession sparks fear in East Africa region (The East African)
East Africans are second-guessing what the projected global recession in 2023 could mean for them, given the International Monetary Fund says about a third of the world will be in recession, led by the globe’s largest economies including the US, China, and Europe. The recent growth projections by the international financier puts East African countries’ prospects for this and next year better than the global average, but analysts say the region will not be spared from the coming recession. According to the IMF’s World Economic Outlook report released last month, the global GDP growth rate will fall from six percent last year to 3.2 percent in 2022, further decelerating to 2.7 percent in 2023 as a result of disruptions caused by the eastern Europe conflict.
East Africa’s economy is, however, predicted to grow by averagely 5.2 percent this year, dropping from 6.4 percent last year, but is expected to accelerate to 5.6 percent next year, highlighting a better performance than the rest of the world.
Region abandons pro-GMO arena as Kenya awaits first seed import (The East African)
Kenya stands alone in the region as far as the importation and growing of genetically modified organisms (GMO) is concerned. Tanzania, Uganda and Burundi have all said they are not open to GMOs, and the wider East African Community concurs. On October 4, Kenya lifted a ban on GMOs imposed in 2012, and the country is poised to import 11 tonnes of GMO maize seed, in what the government has justified as a solution to perennial food shortage and drought cycles.
This week, Kenya said the GMO seeds from South Africa are expected in the country from January and will be distributed to farmers including those bordering neighbouring countries.
Let’s leverage digital technologies to achieve economic freedom (BusinessGhana)
Two non-profit organisations have organised a high-level dialogue series on how the African Continental Free Trade Agreement (AFTCTA) and digital assets could push the country to achieve economic freedom. They are the Institute for Liberty and Policy Innovation (ILAPI), in partnership with Wada and Global Policy House, Mr. Peter Bismark Kwofie, the Executive Director of ILAPI, said, “block chain and other emerging technologies should drive innovations that could help reduce inflation and unemployment for investment and trade.”
He called on stakeholders in the country to ensure that the youth and policymakers are educated on the need to leverage technology for development.
The African Union Commission (AUC) and the African Development Bank have signed a grant agreement to implement Phase 1 of the Upstream Project for Digital Market Development in Africa. The signing ceremony took place on November 17 at AUC Headquarters in Addis Ababa, Ethiopia.
The African Development Bank’s board of directors approved the grant of 7 million Units of Account ($ 9.73 million) in September this year. The project supports the AUC’s implementation of digital economy projects to enhance a continental single digital market. It also supports the implementation of the African Continental Free Trade Area and the Digital Transformation Strategy for Africa.
The project comes as the backdrop of the Covid-19-induced recession that exposed several gaps in the African digital economy ecosystem. It addresses these gaps. Phase 1 runs from 2023 to 2026. It will focus on three main components namely: digital enablers; digital trade and e-commerce adoption; and support actions. Specifically, the project will help strengthen the frameworks (strategic, policy, regulatory and conceptual) and cross-cutting (gender, climate change and resilience) dimensions for the development of Africa’s digital economy.
Stakeholders in the digital economy ecosystem in Sierra Leone met in Freetown, Sierra Leone from 22nd to 24th November 2022 for a national consultation on the draft new legal and regulatory framework to govern the digital economy in West Africa. The objective of the meeting, co-organised by the ECOWAS Commission and the Ministry of Information and Communications of Sierra Leone, was to solicit contributions and feedback on the draft regional regulatory framework for the digital economy being developed by the ECOWAS and UEMOA Commissions.
At the opening of the meeting, Mr. Mawuli Amoa, Program Officer for Telecommunications and Networks highlighted how the digital economy sector is characterized by a fast pace of innovation and continuous enhancement of existing service offerings. He stated that the objective of ECOWAS in ICT is the establishment of a well-secured common digital market, and to achieve this objective, the policies and regulations governing the market need to be harmonised across the region.
He further stated that the approach to regulation of the digital economy in the current era should be collaborative and inclusive, with the involvement of policy makers and regulators in adjacent sector to foster the growth and development of digital services under a fair and enabling environment whiles at the same time protecting the interests of consumers. It is for this reason, he said, that the ECOWAS Commission is undertaking the project for the elaboration of a new harmonised legal and regulatory framework to govern the development of digital economy sector in West Africa, which will address the emerging issues in the sector.
COMESA Policy Organs to Meet this Week in Zambia (COMESA)
Over 200 delegates led by Ministers in charge of ministries that coordinate implementation of COMESA programmes and activities in the 21 Member States will be in Lusaka, Zambia this week for the annual policy organs meetings. They will be attending the 43rd Intergovernmental Committee and the Council of Ministers meetings from Tuesday 29 November to Thursday 01 December 2022. This is the first physical meeting of the COMESA policy organs since 2019.
The Inter-governmental Committee (IC) which comprises Permanent Secretaries and Principal Secretaries will meet on 29 – 30 November 2022 and will consider reports from sectoral technical committees and COMESA institutions on the status of implementation of regional integration programmes covering trade, investments, industry, infrastructure, gender and social affairs. Also to be addressed are administrative and budget matters.
Policy recommendations arising from the IC meeting will be presented to the Council of Ministers on 01 December 2022 for decision-making.
The theme of the meetings is: Building Resilience Through Digital Economic Integration. It was motivated by the emerging regional and global economic dynamics which have impacted heavily on the COMESA regional integration agenda. Specifically, the aftermath of COVID-19 Pandemic has been the most impactful phenomenon hence the focus on resilience building to cushion economies from future shocks.
SADC and ILO commit to strengthen partnership to address unemployment and decent work challenges (SADC)
The Director of the International Labour Organisation’s (ILO) Decent Work Team for East and Southern Africa, Dr. Joni Toko Musabayana paid a courtesy call on the Executive Secretary of Southern African Development Community (SADC), H.E Mr. Elias Mpedi Magosi, on 25 November 2022 in Gaborone, Botswana. The two leaders deliberated on a number of issues of interest to the world of work in SADC, including in particular the challenges of unemployment and underemployment across the region.
Dr. Musabayana informed the Executive Secretary that SADC had enabled significant improvements in the labour administration systems of Member States through its key policy frameworks, as well as regional decisions and positions. The regional policies reflected upon during the meeting included the SADC Employment and Labour Policy Framework, the SADC Decent Work Programme and the SADC Labour Migration Action Plan. Through these instruments, it was noted that SADC Member States had successfully put in place wide-ranging measures to reduce the impact of the COVID-19 pandemic in the workplace, including through guaranteeing occupational safety and health and providing fiscal support to protect livelihoods and income security.
The two leaders committed to forge a stronger partnership and agreed to immediately undertake the following steps: To review the SADC-ILO Memorandum of Understanding, entered into in April 2007, in order to include new and pertinent areas of cooperation in line with the Regional Indicative Strategic Development Plan (RISDP) 2020-2030 and other contemporary frameworks and strategies; To develop joint programmes and projects on decent work and job creation, especially for young women and men; To strengthen the harmonisation of labour policies and laws in Member States, and to expedite the development of the SADC Protocol on Employment and Labour; and To enhance cooperation on labour migration management, by exploring greater cooperation through existing and new initiatives to protect the rights of migrant workers and enhance skills sharing among Member States.
The Board of Directors of the African Development Fund have approved a grant of $6.12 million to help strengthen public finance governance in low-income African countries.
The funding is for Phase 2 of the Regional Institutional Support Project in Public Finance Governance (RISPFG) which will be implemented by two pan-African institutions: the African Tax Administration Forum (ATAF) and the Collaborative Africa Budget Reform Initiative (CABRI). The grant, which was formally approved on 3 November 2022, will be distributed as follows: $3.90 million to support the continent’s tax administration reforms and domestic resource mobilisation efforts through support to ATAF and $2.22 million to support budget reforms and strengthen public finance management through CABRI.
Global economy
Climate change loss and damage fund: Bittersweet win for vulnerable nations (The East African)
The COP27 UN climate talks at the Sharm el-Sheikh in Egypt ended with one much applauded achievement: the decision to establish a loss and damage fund to help poor nations cope with natural disasters brought on by effects of climate change. While this is a major achievement that signifies immense progress for climate-vulnerable nations, it could take another decade to be realised. And for those living with the consequences of climate change, it could be too late.
Fossil Fuel Non-Proliferation Treaty initiative in a statement noted that the reparations agreement failed to address the root cause of loss and damage through agreeing to phase out oil, gas, and coal, which will mean more loss and damage in the future.
It is estimated that the world’s most climate-vulnerable nations have already lost an estimated $525 billion as a result of climate impacts in the last 20 years – and African nations could lose $50 billion annually by 2050. Loss and damage also goes beyond money as the impact of climate change destroy lives, biodiversity and entire cultures.
Francis Atube, a climate change scientist and lecturer at Uganda’s Gulu University, says that if and when the funds are made available, they should be used for direct interventions such as putting up infrastructure for climate change adaptation, including irrigation systems and protection of water sources.
India identifies five priority issues including MSMEs, Logistics for its G20 Presidency (India Shipping News)
India has identified five priority issues – growth and prosperity, resilient global value chains, MSMEs, logistics, and WTO reform – under its G20 Presidency from December 1, 2022 to November 30, 2023. The commerce and industry ministry, which is the nodal agency for the G20 Trade and Investment Working Group (TIWG), is likely to propose a common digital platform for ease of cross-border trade, a legal aid system for developing countries for dispute settlement in WTO, ways to eliminate distortionary non-tariff measures for developing countries and LDCs, and a framework to address crucial issues at the WTO in clearly defined circumstances like the Covid-19 pandemic.
“Issues are evolving and we want a good outcome in G20,” said an official. Establishing an online digital portal that offers integrated trade and business information for market research by MSMEs is another suggestion on which discussions could take place.
“G20 could deliberate upon a possible framework for addressing the issues of global relevance for enabling members to go beyond the general exceptions under the WTO agreements, in very narrow and clearly defined circumstances like the pandemic,” the ministry has proposed.
It has also proposed evolving common principles to facilitate decentralised trading, an inclusive trade action plan that defines clear objectives for driving inclusion in goods and services trade, and evolving principles to ensure food security through remunerative prices of farm goods.
Rail transport regaining its allure on sustainability drive (Business Daily)
Railway transport is a mature industry in the developed world that is experiencing a remarkable comeback after a period of decline. The rediscovered allure of railways is underpinned by its capacity to haul huge volumes of freight or passengers in an energy-efficient and environmentally-friendly way. Rail transport is nowadays being widely used in many countries in the world. Many people prefer railways over road transport because of the increase in the number of accidents and huge traffic congestions. Growth of railway transport is, however, anchored on improved and sustainable railway infrastructure.
n the 21st Century, with the globalisation playing an increasingly important and influential role in societies and markets, development of new transport infrastructures that allow an efficient movement of passengers and goods is of utmost importance. Railway transport has been contributing to the sustainable development of countries, both in terms of economic growth and social development. This type of transport has several advantages over others, mostly related to the fair transportation costs, lower environmental impact and safety.
Additionally, reduction in travel time due to the increase of speed, along with an improvement in passenger comfort, also contribute to the greater competitiveness of rail transport.
BRICS and BRI: China Aims for Strategic Alignment (Observer Research Foundation)
At the 14th Leaders’ Meeting of the BRICS (Brazil, Russia, India, China and South Africa) countries held virtually on 23 June 2022, China dwelt on the issue of expanding the group beyond its five existing members to include more emerging economies. It had first raised the subject during the BRICS Xiamen Summit in September 2017. At a time when China-India relations are at a low point, the proposal has raised concerns in New Delhi. As India deliberates its stance on this contentious issue, it is important to understand China’s approach towards BRICS.
For China, it is the grand strategy that is the Belt and Road Initiative (BRI) that threads its many engagements: BRICS, the Shanghai Cooperation Organisation (SCO), the Association of South East Asian Nations (ASEAN) where it is not directly a member, the Eurasian Economic Union, and the Regional Comprehensive Economic Partnership (RCEP). Although BRICS as an entity, has not signed any memorandum of cooperation with the BRI, nor has it ever jointly published any statement of intent about participating in China’s flagship project, in Chinese strategic thinking, the BRI and BRICS are deeply connected.
This brief analyses China’s domestic discourse on BRICS to understand its strategic thinking towards the grouping. It describes the various formats of expansion being discussed within Chinese strategic circles, and China’s modus operandi vis-à-vis other member states to steer BRICS in a direction in line with its interests.
Related News
tralac Daily News
Local news
Digitalisation to make manufacturing supply chains more resilient (Engineering News)
The digitalisation of supply chains will make them more transparent and challenges more visible, better informing production planning and, thereby, making production value chains more resilient to disruption, says professional services and advisory firm PwC South Africa digital supply chain division head Pieter Theron. Supply chains have globalised to such an extent over the past two decades that it is almost impossible to manufacture without importing some elements, whether this be components or raw materials, he adds.
Cape Town terminal exceeding weekly volumes as deciduous fruit season starts (Engineering News)
State-owned Transnet Port Terminals (TPT) says the Cape Town Container Terminal (CTCT) has been exceeding weekly volumes by 32% for two consecutive weeks as South Africa’s deciduous fruit season kicks off. The first few vessels have been carrying exports destined for Europe and the UK. The season’s fruit include table grapes, pomegranates, stone fruits and berries, besides others. Further, in cases of deviations or when the terminal anticipates increased volumes, there are additional operational resources during the night shift for recovery.
“The initiatives in place and efforts made will enable maximum deployment of our equipment, which will boost productivity and enhance our service to our customers. As the CTCT, we continue to work hard in optimising our logistics for the success of the deciduous fruit season,” said TPT Western Cape Terminals managing executive Andiswa Dlanga.
SA keen to attract investment (SAnews)
While the South African economy has experienced various challenges, including electricity shortages, work is underway to ensure that the country attracts investment. “While there are many attractions and huge potential for investors in South Africa, there are a number of constraints on economic growth and social development. For more than a decade, South Africa has been confronted with a shortage of electricity,” said President Cyril Ramaphosa. The President made these remarks at the SA-UK Business Roundtable in London on the second day of his two-day State Visit to the United Kingdom, on Wednesday.
Exports from South Africa to the UK are estimated to support 134,000 South African jobs. “Bilateral trade is at its highest yet, with goods and services worth £10.7 billion being traded between the United Kingdom and South Africa in the 12 months ending in June this year,” he said. Meanwhile, a number of UK companies have attended the annual South Africa Investment Conference that the country has held since 2018 - during which significant new investment commitments were made. President Ramaphosa added that South Africa which has free trade agreements with the United Kingdom and European Union, has over the past four years, been putting in place an African Continental Free Trade Area that will connect 55 national economies and more than 1.3 billion people. “The legal instruments have been completed and countries and customs unions are now finalising their tariff offers, with the intention that trade would commence next year.”
With the UK being the largest foreign investor in South Africa, “it is our intention and our ambition to substantially increase the value and diversify the composition of both trade and investment,” said President Ramaphosa.
Namibia: Major opportunities from free trade…business sector urged to capitalise (New Era)
Namibia believes and anticipates significant opportunities will emanate from the implementation of the African Continental Free Trade Area (AfCFTA), which in turn will lead to the positive transformation of many economies on the continent. Some of these opportunities include, larger market access, improved competitiveness and enhanced investment in the country, improved production capacities, improved living standards and increased employment creation. This is according to trade and industry minister, Lucia Iipumbu, who yesterday launched Namibia’s national strategy for the implementation of AfCFTA.
“To fast-track the implementation of the AfCFTA, the development of an implementation strategy is critical as it leverages deeper integration within the framework of AfCFTA to facilitate an expansion of Namibia’s trade and investment in Africa. In this regard, the ministry of industrialisation has developed its national AfCFTA implementation strategies and action plans. The national strategy has identified key value addition and trade opportunities and constraints, measures and capacities required for it to take full advantage of national, regional and global markets within the context of the AfCFTA,” said Iipumbu at yesterday’s launch.
The minister explained the strategy is informed by Namibia’s broader national development policy frameworks and builds on progress achieved through participation in regional integration initiatives, mainly the Southern African Development Community (SADC) and the Southern African Customs Union (SACU).
Ship carrying 10000 tonnes of maize came from Mozambique (The Standard)
A ship carrying 10,000 tons of maize that docked at the Mombasa Port Tuesday came in from the Port of Beira in Mozambique, The Standard has established. Kenya Port Authority (KPA) confirmed Tuesday that the vessels docked at berth seven at Mombasa but that by last evening, it had not started to offload the maize. KPA Principal Communication Officer Haji Masemo said the Kenya Bureau of Standard (Kebs) and Kenya Plant Health Inspectorate Service (KEPHIS) will determine the quality of the maize before it is released.
According to data from government agencies, the country has an annual maize deficit of about 700,000 tonnes it fills through imports from Uganda, Tanzania, other Comesa countries and Mozambique at 50 per cent tariff. The former National Treasury Cabinet Secretary Ukur Yatani extended the free-maize import that was scheduled to expire on May 9, to September 30. Last week, President William Ruto said in Kwale that the government will import 10,000 tons of maize to cushion Kenyans against hunger. He did not however expressly indicate whether the said import will be GMO or non-GMO maize.
Nigeria set to adopt Phase II Protocols of AfCFTA (Nairametrics)
The federal government has said it is set to adopt the Phase II Protocols of the African Continental Free Trade Area ( AfCFTA) later this week. This was disclosed in a press statement by a media aide to the president, Garba Shehu on Wednesday evening as President Muhammadu Buhari is expected to attend the African Union Summit on Industrialization and Economic Diversification in Niamey. Phase II Protocols of the AfCFTA range on agreements from intellectual property rights, to investment and competition protection.
Shehu noted that President Muhammadu Buhari will embark on an official trip to Niamey, the Republic of Niger to attend the African Union Summit on Industrialization and Economic Diversification, as well as the Extraordinary Session on African Continental Free Trade Area (AfCFTA). He said the Extraordinary Session on AFCFTA is expected to adopt the Phase II Protocols of the continental free trade area as well as launch additional operation tools.
Nigeria discovers, launches first crude oil field in north in 62 years (The East African)
Nigeria, with crude oil reserves of more than 37 billion barrels and the 6th largest world producer, has discovered and launched the first oil drilling project in the north after decades of exploration. The Nigeria National Petroleum Corporation Limited (NNPC) unveiled the discovery of hydrocarbon deposits in the Kolmani River II Well on the Upper Benue Trough, Gongola Basin, in the north eastern part of the country.
The discovery of oil in commercial quantity in the north came 62 years after the oil and gas discovery and drilling took place in Oloibiri in South-South Bayelsa states. The South-South region, also called Niger Delta, had since dominated oil production with highest oil and gas reserves in Nigeria.
At the launch on November 22, 2022 in Bauchi in north east Nigeria, President Buhari declared that the government has already attracted over $3 billion investment in the oil and gas sector at a time of near-zero appetite for investment in fossil energy.
He said that the successful discovery of oil and gas in the Kolmani River field, and the huge investment it had attracted “will surely be a reference subject for discussion in the industry as we pursue the just energy transition programme that will culminate in our country achieving net- zero position by the year 2060”.
The country currently produces 2.1 million barrels of crude oil per day.
Nigeria, Canada Push Gas As Transition Fuel (Leadership)
With a focus on improving trade, deepening ongoing educational collaboration, continuing dialogue on the global energy transition issues and climate change, Vice President Yemi Osinbajo, SAN, and Canadian Deputy Prime Minister, Chrystia Freeland, have agreed on the need for deepening bilateral relations between Nigeria and Canada. This was the highlight of the meeting between both leaders in Ottawa, the capital of the North American country yesterday.
On the global net zero emissions targets, and energy transition, Vice President Osinbajo reaffirmed the view that gas ought to be adopted as a transition fuel, a notion he said garnered traction at the recent COP27 conference in Egypt, even though still widely unacknowledged in the West.
“We believe we must use our gas as transition fuel; we have huge gas reserves. We would like to continue to use our gas during the transition,” the Vice President said while explaining that the Federal Government’s Energy Transition Plan is focused on renewable energy, including the ongoing Solar Power Naija Programme, which was launched under the Economic Sustainability Plan.
Responding, the Canadian Deputy Prime Minister, who wondered whether countries such as Nigeria are already struggling to get financing for gas projects said, “we will be happy to keep talking with you on that, “ adding that the use of Natural Gas makes sense, and noting that the dialogue should continue.
Trade exchange between Egypt, Nile basin countries grows in 2021 - CAPMAS (ZAWYA)
Trade exchange between Egypt and the Nile Basin countries increased by 32.60% on an annual basis in 2021, according to data from the Central Agency for Public Mobilisation and Statistics (CAPMAS).
The value of Egypt’s exports to the Nile Basin countries reached $1.55 billion in 2021, compared to $1.19 billion in 2020, a rise of 29.50%.The highest values were concentrated in five African countries, accounting for 95.10% of the total of this bloc.
Sudan came in first place with exports valued at $827 million, representing 53.40% of the total Egyptian exports to the bloc, followed by Kenya and Ethiopia with exports of $382 million at 24.60% and $111 million at 7.20%, respectively. Exports to Uganda and Tanzania totalled $102 million and $52 million, respectively, representing 6.60% and 3.40%, respectively of the total exports to the bloc.
The value of imports from Nile Basin countries amounted to $783 million in 2021, compared to $562 million in 2020, up 39.40%.The highest values were concentrated in five African countries with a percentage of 99.10% of the total of this bloc. Sudan came in first place with exports to Egypt amounting to $386 million or 49.30% of Egypt’s imports from the basin countries, followed by Kenya with exports to Egypt amounting to $255 million or 32.60% of the total bloc.
African trade and integration
Africa should accelerate industrialization while pursuing low carbon transition (UNECA)
African countries should articulate effective policies, strategies and programmes and take action to promote trade and exports in order to realize the objectives of the African Continental Free Trade Area (AfCFTA), Economic Commission for Africa, Acting Executive Secretary, Mr. Antonio Pedro, said. Mr. Pedro told participants at the opening session on “Harnessing the AfCFTA for Africa’s industrialization: Fostering competitiveness and sustainability in the digital era”, at the African Union Summit on Industrialization and Economic Diversification, being held in Niger, that intra-regional trade has potential to facilitate increased economies of scale, diversification and value addition.
Ms. Treasure Maphanga, Chief Operating Officer, the AeTrade Group and former trade and industrialization director at the African Union Commission, noted that digitisation has a catalytic effect through the growth of services, especially in the logistics, finance and insurance.
“Leveraging the technology and other aspects of the digital economy to create jobs is the way forward...and informal business does not have to be disadvantaged,” said Ms. Maphanga.
In her closing remarks, Ms. Hanan Morsy, ECA Deputy Executive Secretary and Chief Economist said developed countries should embrace Africa’s industrialisation potential and support its low carbon transition to ensure the continent is able to develop while acting on climate change.
Ms. Morsy, noted that African countries were in a dilemma in advancing economic development and industrializing while responding to required climate change action. A win-win approach was needed.
“It is essential for African countries to find a realistic and pragmatic balance between following their industrialisation and development paths and their climate goals, with support from high-income countries,” Ms. Morsy said, adding that: “Green industrialisation aims to decouple economic growth from negative environmental externalities by maximizing the application of clean energy, sustainable inputs and green-production technologies.”
Private Sector Challenged to Focus on Entrepreneurship (East African Business Week)
The private sector has been challenged to move beyond policy and advocacy towards increased levels of entrepreneurship. Various participants at the “Industrializing the SADC Region: Sharing Strides, Drawbacks and Impact” event convened by the African Union Southern Africa Regional Office (AU-SARO) as part of the activities of the Africa Industrialization Week 2022 commemorative held in Niamey, Niger, underscored the need to promote industrialization on the continent by showcasing the successes, challenges, opportunities and further actions needed from the process to accelerate industrialization in the Southern African region.
H.E Ambassador David Claude Pierre, Head of Mission of the African Union Southern Africa Regional Office, called on all stakeholders within the region to acknowledge and agree that Industrialization was an important vehicle for promoting economic growth, creating jobs, production of higher value goods, increasing exports and export earnings, improving resource allocation efficiency and creating linkages with other sectors and of sustainable employment opportunities. He noted “the launch of the AfCFTA comes as an opportunity that if successfully implemented, will speed up industrialization and foster economic development”.
As part of the African Union Summit on Industrialization and Economic Diversification being held November 20-25 in Niamey, Niger, a side event on inclusive and sustainable industrialization as a driver of resilience and stability for the Sahel was organized on November 22.
In his intervention, ECA Acting Executive Secretary, Mr. Antonio Pedro said that eight of the fifteen countries making up the West African sub-region are Sahelian and given the challenges the Sahel is facing, it is extremely important to invest in industrialization in order to change the narrative in this part of the continent, which today is synonymous with conflicts and humanitarian needs.
“At the level of intra-African sectoral trade, it is estimated that full implementation of the AfCFTA will increase exports in agribusiness by 41%, industry and services by about 40%, and energy/mining by 16% by 2045. In West Africa, including the Sahel region, exports are expected to increase by 24.0% in industry, 23.0% in agribusiness, and 11.0% in energy and mining. As a result, in absolute terms, nearly three-quarters of the gains in exports from West Africa to Africa would come from industry,” said Antonio Pedro.
DRC’s entry into EA bloc in the spotlight (The Citizen)
The entry of the Democratic Republic of Congo (DRC) into the East African Community (EAC) will be on radar at a lawyers meeting here. The resource-rich and vast country is already embroiled in surging violence on its eastern border it blames on some partner states. The simmering violence has apparently slowed down the pace of the country’s integration in the seven nation bloc. The implications of the vast country’s entry into the EAC will feature in the annual meeting of the East African Law Society (EALS) starting today.
Also to feature in the meeting is how the EAC can be a building block to the African Continental Free Trade Area (AfCFTA). Besides building a unified EAC, members of the legal fraternity will also have a session on the role of financial institutions in fostering economic growth in the bloc. Natural resource extraction and their economic potential will also dominate the talks of the regional lawyers.
Kenya, Rwanda among 15 states in new single air transport market (The East African)
After minimal progress since its launch in January 2018, the Single African Air Transport Market (SAATM) appeared to reach a decision this week with 15 of the 35 signatory states launching a cluster to pilot the scheme in real life. The announcement is a major boost to the proposed joint airline by Kenya Airways and South African Airways, which will have immediate and unlimited access to key markets on the continent as both countries will be participating in the trial runs. It is also a signature achievement for the International Air Transport Association (IATA), which has been working behind the scenes to get SAATM off the ground in 2023.
Dubbed the SAATM Pilot Implementation Project, the landmark decision – which bands together some of Africa’s more significant air transport markets – was announced on November 14 by the African Civil Aviation Commission (AFCAC).
The 15 states are expected to cement their decision further by aligning their respective air service agreements to the SAATM regime when they again meet during this year’s International Civil Aviation Organisation (ICAO) Air Services Negotiation in Abuja on December 5.
According to a recent study by the African Union on the potential benefits of SAATM implementation, the continent would gain an additional $4.2 billion in GDP, 596,000 new jobs and a 27 percent reduction in air fares.
Ministers Undertake to Promote Initiatives on Food Security and Environmental Management (COMESA)
Ministers responsible for agriculture, natural resources and environment from COMESA Member States have undertaken to support the development and implementation of the COMESA digital Regional Food Balance Sheet (RFBS) initiative. This undertaking covers similar efforts that aim to strengthen agri-food data and information system in the region which will enable informed policy, investment, and trade decisions, and for emergency food and livelihood response in a rapidly changing environment. COMESA is implementing the Regional Food Balance Sheet initiative which is designed to provide data, messaging and information that governments, the private sector and development organizations need to make informed investments, create and implement policies.
EAC should modernise agriculture sector (Daily News)
THE African Development Bank (AfDB) says agricultural and industrialisation are the key areas for the East African Community (EAC) development. Yes! The development lender backs its predication on the fact that the region’s between 75 percent and 90 percent of its population depends on agricultural activities. The argument based on the fact that if agriculture sector is well developed and linked with industrialisation drive, then, it will free the majority of the population from leaving below one dollar a day.
One fact, according to AfDB, is that the value of Africa’s food market is expected to be more than triple in value by 2030 to 1.0 trillion US dollars annually. The bank says that efficient agricultural production means lower costs of food which, in some households, can be as high as 70 percent of the budgets. Increasing productivity and lowering the cost of food, therefore, means households will spend less of their incomes on food, which releases funds for other essentials such as health and education. Similarly, high productivity of cheap raw agricultural materials can also support the agro-processing industry.
COP27: Sustainable Energy Fund for Africa secures $64 million in new funding from Norway and GEAPP (AfDB)
The Sustainable Energy Fund for Africa has secured a fresh injection of $64 million in grant funding from the Norwegian Agency for Development Cooperation (NORAD) and the Global Energy Alliance for People and Planet (GEAPP).
Global Energy Alliance for People and Planet Executive Director for Africa Joseph Nganga said: “We are leapfrogging polluting energy sources and supporting decarbonisation across the energy sector. Together we will focus our efforts on sustainable energy projects with a high potential to be transformative, scalable, and replicable, and we look forward to supporting SEFA to catalyse and leverage additional financing for these pivotal projects.”
Biden Invites Forty-Nine African Heads Of State To U.S.-Africa Leaders’ Summit – Say Top U.S. Diplomats (Front Page Africa)
The United States Government has announced that 49 African Heads of State, along with the Chairman of the African Union, have been invited by President Joe Biden to the landmark U.S.- Africa leadership summit in Washington D.C. in mid-December.
In a digital press briefing with journalists from across the continent on Tuesday, Ms. Banks, also a Special Assistant to U.S. President Biden said the three-day summit in Washington will highlight how the U.S. and African nations are strengthening their partnerships to advance their shared priorities. The summit, she said, reflects the U.S. strategy towards Sub-Saharan Africa, which really emphasizes the critical importance of the region in meeting this era’s defining challenges.
The U.S.-Africa Leaders Summit, scheduled for Dec. 13-15, is one of President Biden’s top foreign-policy priorities this year. It is the first opportunity for his administration to showcase how it views the future of U.S.-Africa relations on its home turf amid increasing geopolitical tension with Russia and China and efforts to reset U.S.-Africa relations after the Trump’s presidency, according to observers.
She added: “With one of the world’s fastest-growing populations, largest free trade area, most diverse ecosystems, and one of the largest regional voting groups in the United Nations, African contributions, partnerships, and leadership are essential to meeting this era’s defining challenges. The continent’s dynamic economies and populations really do provide the foundation for a bright future for the continent and the United States.”
Global economy
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.
“The global economy is facing serious headwinds. We are dealing with a major energy crisis and risks continue to be titled to the downside with lower global growth, high inflation, weak confidence and high levels of uncertainty making successful navigation of the economy out of this crisis and back toward a sustainable recovery very challenging,” OECD Secretary-General Mathias Cormann said during a presentation of the Outlook. “An end to the war and a just peace for Ukraine would be the most impactful way to improve the global economic outlook right now. Until this happens, it is important that governments deploy both short- and medium-term policy measures to confront the crisis, to cushion its impact in the short term while building the foundations for a stronger and sustainable recovery.”
As WTO Considers Patent Waiver On COVID Treatments, Some Say It Is Too Late (Health Policy Watch)
Little agreement emerged from an informal World Trade Organization (WTO) meeting on Tuesday about whether an intellectual property (IP) waiver should be extended to COVID-19 therapeutics and diagnostics. But low and middle-income countries (LMIC) that qualify for free COVID-19 anti-virals Paxlovid (nirmatrelvir) and Molnupiravir have shown so little interest in accepting donations that some question whether debating the waiver extension is a waste of time.
Singapore, Switzerland, Japan, Korea, the European Union and the United Kingdom wanted to see proof of IP barriers hampering access to therapeutics and diagnostics before they supported any waiver extension, according to a Geneva-based trade official at the WTO meeting.
International trade statistics: trends in third quarter 2022 (OECD)
G20 merchandise trade fell for the first time in two years in value terms in Q3 2022, retreating from the recent high levels in Q2 2022 (Figure 1 and 2). As measured in current US dollars, exports and imports contracted by 1.3% and 1.1%, respectively, as global demand began to slow and most commodity prices receded from their peaks.
“It is too early to draw any concrete conclusions, however this latest development in G20 merchandise trade deserves further monitoring as the global economy confronts multiple headwinds, including monetary tightening, receding commodity prices, and cooling demand,” said OECD Chief Statistician Paul Schreyer.
G20 services trade slowed further in Q3 2022, as measured in current US dollars (Figure 1 and 2). Export growth is estimated to have flattened to 0.3% and imports to have grown by 1.7%. This compares to the higher rates recorded in Q2 2022 (1.3% and 2.3%, respectively), as falling shipping costs weighed on the value of transport services across many G20 economies.
Group of 20 (G20) leaders issued a declaration in which they reaffirm their commitment to cooperate in addressing serious global economic challenges, including those related to food and energy security, climate change, biodiversity loss, the COVID-19 pandemic, and the digital transformation. The G20 Summit convened under the theme, ‘Recover Together, Recover Stronger,’ in Bali, Indonesia, from 15-16 November 2022.
Noting that the Summit was taking place at “the most pivotal, precarious moment in generations,” UN Secretary-General António Guterres called on G20 leaders to respond to “an SOS” from the SDGs and to support governments of the Global South in tackling the climate crisis, prevent famine and hunger, bolster the energy transition, and promote the digital transformation.
The 52-paragraph pdf G20 Bali Leaders’ Declaration (980 KB) highlights the “unparalleled multidimensional crises” such as the COVID-19 pandemic and climate change, which have hindered the achievement of the SDGs. Most members “strongly condemn” the war in Ukraine and its impacts on the global economy, “constraining growth, increasing inflation, disrupting supply chains, heightening energy and food insecurity, and elevating financial stability risks.” The document also notes “other views and different assessments of the situation and sanctions.”
UN Updates on Progress Toward 2025 Global Broadband Goals (ISPreview)
The ITU and United Nations (UN) Broadband Commission for Sustainable Development has recently issued their annual progress update on getting the world connected to affordable broadband ISP connectivity, which among other things finds that 2.7 billion people have yet to even access the internet.
The commission has long set a series of targets to assist in connecting the large chunk of the world currently operating without broadband internet access by 2025. As ever, these are soft political targets because the commission itself is limited in its ability to both help fund and deliver on such objectives, but some progress is clearly being made.
The main focus of this report is on the impact for both Developing Countries (DCs) and the Least Developed Countries (LDCs).
Related News
tralac Daily News
Local news
Impactful infrastructure spend starts with functional procurement, panelists detail (Engineering News)
Altman Advisory director, economist and National Planning Commission (NPC) commissioner Miriam Altman has emphasised the importance of public infrastructure in light of South Africa’s transformation agenda and getting people in houses and closer to transport networks and services, in addition to its role in stimulating the economy. She was participating in the Business Day Dialogues, held in partnership with building materials manufacturer AfriSam, on November 22, with speakers debating whether infrastructure spend can still be a saving grace for South Africa’s economy, given the headwinds facing the industry. The parties unpacked the value chain factors that should be well thought out and managed to achieve a prosperous South Africa and the National Development Plan objectives.
Altman highlighted the single-most important factor in realising impactful infrastructure spend was a capable State and it being a reliable partner. “So much capacity was destroyed during State capture. When you destroy the procurement function, which is vital in infrastructure delivery, you decimate institutions and performance management.
The UK and South Africa announce joint development, investment partnerships (Engineering News)
The UK announced on Tuesday that it was partnering with South Africa in a number of initiatives and programmes to promote investment in infrastructure and skills development in the latter country. The announcement coincided with the first day of President Cyril Ramaphosa’s State Visit to the UK, the first such visit to be hosted by King Charles III. “South Africa is already the UK’s biggest trading partner on the [African] continent, and we have ambitious plans to turbocharge infrastructure investment and economic growth together,” highlighted UK Prime Minister Rishi Sunak. Prime Minister Sunak and President Ramaphosa will hold bilateral talks on Wednesday. “I look forward to welcoming President Ramaphosa to London this week to discuss how we can deepen the partnership between our two great nations and capitalise on shared opportunities, from trade and tourism and [sic] security and defence.”
Boosting Equitable Development as Kenya Strives to Become an Upper Middle-Income Country (World Bank)
The World Bank Group (WBG) Board of Executive Directors today voiced its support for the WBG’s latest six-year strategy to support Kenya in its ongoing efforts towards green, resilient, and inclusive development.
The Kenya Country Partnership Framework (CPF) is a joint strategy between the World Bank, the International Finance Cooperation (IFC), and the Multilateral Investment Guarantee Agency (MIGA) and the government to promote shared prosperity and reduce poverty for the people of Kenya. Informed by extensive stakeholder consultations, the CPF seeks to drive faster and more equitable labor productivity and income growth, greater equity in development outcomes across the country, and help sustain Kenya’s natural capital for greater climate resilience.
“The people of Kenya are in a position to reap even greater dividends from the country’s robust economic growth in terms of more durable poverty reduction,” said Keith Hansen, World Bank Country Director for Kenya. “Tackling the drivers of inequality now will help to ensure that Kenya can achieve and maintain more equitable development in the long run.”
“Kenya’s private sector is poised to drive faster job creation and to seize new opportunities from global and regional integration,” noted Jumoke Jagun-Dokunmu, IFC Regional Director for Kenya. “This will require a more level playing field for competition and innovation for large and small firms and between public and private enterprises.”
Ruto, Museveni pitch business and tech relations in east Asia trips (The East African)
Kenya’s President William Ruto and his Ugandan counterpart Yoweri Museveni are pitching business and technology relations in their separate trips to east Asian countries.
“Kenya is keen on expanding economic ties with the East Asian nation and exploring areas of cooperation, especially in ICT, education, pharmaceutical and infrastructure,” said a dispatch from State House, Nairobi on Tuesday. Ruto is scheduled to attend a business forum to market Kenya “as a suitable investment destination for foreign investors. The visit is also expected to open up job opportunities for tech-savvy youth in both countries,” the dispatch added.
Ruto met with Kenyans in South Korea and was scheduled to meet with his host on Wednesday afternoon. Earlier on Wednesday, he told Korean Speaker of parliament that local legislators need to enact laws to “fix the trade imbalance” with Kenya.
Kenya, he said, is targeting to increase tea, avocado and coffee exports to South Korea to match technology imports to Kenya from the Asian country. “We must move from processing five percent of our tea to 50 percent in the next five years and in 10 years’ time we should be able to process every gram of tea grown in Kenya,” Ruto told a group of Kenyans living in South Korea earlier on Tuesday.
M23 rebels cut off Kenya, Uganda trade routes to DRC (Business Daily)
The M23 rebels have cut off all major supply routes for Ugandan and Kenyan goods to the city of Goma, in the eastern Democratic Republic of Congo (DRC). This has caused financial losses to the two countries. This follows the capture of Rutshuru Town in eastern DRC by the rebels, cutting off the Ishasha border in Kanungu District. The border was the only one still open after the M23 rebels captured the Bungana border town in eastern DRC in June and later took control of the Kitigoma and Busaza borders. Trucks carrying goods from Uganda and Kenya are stuck at the Ishasha border. The drivers say they have been there for weeks. “Dozens of cargo trucks carrying goods from Uganda and other East African countries have been parked at Ishasha border post for two weeks because the drivers got information that the M23 rebels captured Kiwanja territory where they had to pass before arriving in Goma City,” Mr Mwesigye said.
Crisis looms as debt hits Shs80 trillion (Monitor)
As Uganda’s economy faces tough headwinds, it is difficult to tell which way the economy will turn to following some lapses from key decision makers, Prosper Magazine has established. The ripple effect of a double digit inflation, a volatile exchange rate is already being felt on domestic revenue collections, which have stagnated at about 13 per cent of Gross Domestic Product. This is below the sub-Saharan average of 15 per cent.
As government continues borrowing heavily to plug revenue shortfalls, the country’s public debt stock has hit Shs80 trillion amid serious concerns.
This is despite the most recent Afrobarometer survey, completed in early 2022, revealing that the population is growing increasingly discontent with the country’s economic condition as well as their personal living conditions.
In its Monetary Policy Statement for August 2022, Bank of Uganda confirmed that the overall economic growth prospects have been dimmed further with increasing risks of a global recession, and weaker consumer and business sentiments as high inflation and commodity prices continue to erod
Nigeria and Cameroon set to launch climate credit trade initiative (TechCabal)
Two African countries are inching closer to making an entry into the carbon market as more line up to tap into the lucrative billion-dollars trade. Nigeria has its eyes fixed on the international trade of carbon credits through a continental platform, while Cameroon is developing a strategy that will draw in green financing for the country. Carbon trading is a programme designed to reduce greenhouse gas emissions by giving firms or countries a right to emit carbon dioxide at an agreed price per tonne- rates vary across jurisdictions with most governments yet to agree on trading rules.
Nigeria has begun pioneering a voluntary carbon market programme christened, the Africa Carbon Markets Initiative (ACMI), it said is part of its government plans to achieve net zero emissions.
The initiative, set for an official unveiling during COP 27, is being spearheaded by a 14-member steering committee which Nigeria’s Vice-President, Yemi Osinbajo joined on October 31.
SMEs seek more government support to integrate into value chain production –KPMG report (Myjoyonline)
Micro Small and Medium Enterprises, (MSMEs) are seeking more government support to participate in formal markets and scale up their operations to realise their full potential in anticipation of the 2023 budget statement. The business community and MSMEs are also hoping for government to assist in their expansion and consolidate measures to support and integrate into the value chain of corporate businesses in Ghana and external markets across the continent.
These form part of results from the 2023 pre-budget survey conducted by auditing and accounting firm, KPMG Ghana.
The business community is requesting Government to maintain the initiatives already in place and introduce further measures that will mainstream MSMEs into the value chains of large scale companies and markets in Ghana and across the world. The respondents believe that if MSMEs receive more support in the area of access to market, it will boost growth and scale them up to benefit from the Africa Continental Free Trade Agreement (AfCFTA) to promote sustainable job creation.
United States (U.S.) Government Launches Two Projects to Boost Business and Trade (ZAWYA)
On November 22, Zambian Minister of Finance Situmbeko Musokotwane and U.S. Ambassador to Zambia Michael Gonzales launched two critical economic development projects funded by the U.S. government – the U.S. Agency for International Development (USAID) Business Enabling Project and USAID TradeBoost. These projects will improve business opportunities, create jobs, and increase incomes for Zambians working in the agriculture, clean energy, trade, and ecotourism sectors.
USAID TradeBoost is a $30 million (almost 500 million kwacha) investment project in Zambia through Prosper Africa’s flagship Africa Trade and Investment program. Its overarching goal is to increase trade and investment nationally, regionally, and internationally that generates inclusive economic growth, particularly for women and youth, through climate-friendly economic approaches. Both projects will counter the rising food insecurity caused by multiple shocks including COVID-19, changing weather patterns, and Russia’s war against Ukraine.
The USAID Business Enabling Project is a $14 million (almost 233 million kwacha) project that will bring inclusive private sector investment and trade to Zambia with a focus on supporting greater opportunities for women in the economy. By strengthening communication between government, industry, and civil society this project will improve policies and business processes to create and expand economically-viable enterprises.
African trade and integration
Africa Industrialization Day and African Women in Processing Summit - 20th November 2022 (NEPAD)
Africa is a continent briming with opportunities for growth and innovation. Our continent is blessed with a wealth of resources and the fastest growing population in the world that promises both a source of human capital and a ready market. To realise this potential, we need to recognize where more work is needed and face our challenges head on.
The lack of industry infrastructure and the inadequate development capital needed by our countries to position themselves to compete with others in the global value chains requires a multi-faceted, coordinated and cross-cutting approach to achieve the necessary structural adjustments that are fit for purpose for Africa’s specific contextual complexities.
Despite its enormous potential, the Industrialization sector in many of our countries remains underdeveloped, and continues to suffer from low productivity and competitiveness. As a result, the contribution of the manufacturing sector to the GDP in the majority of Africa remains under 12% and the share of the global manufacturing remains less than 2%. Africa’s trajectory of industrial output is in stark contrast to the performance of other newly industrialised countries, where manufacturing peaked at 30% contribution to GDP
As we push forward to accelerate Africa’s industrialization drive, AUDA-NEPAD is working closely with our key partners to create the entry points to connect our programmes to ensure that all organs work together and deliver on the continental flagship initiatives. As to AUDA-NEPAD’s current contributions and future plans to support African Women in Processing and the achievement of Africa’s industrialisation, we would like to highlight the following areas of intervention:
Industrializing the SADC Region: Strides, Drawbacks and Impact (AU)
The private sector has been challenged to move beyond policy and advocacy towards increased levels of entrepreneurship. Various participants at the “Industrializing the SADC Region: Sharing Strides, Drawbacks and Impact” event convened by the African Union Southern Africa Regional Office (AU-SARO) as part of the activities of the Africa Industrialization Week 2022 commemorative held in Niamey, Niger, underscored the need to promote industrialization on the continent by showcasing the successes, challenges, opportunities and further actions needed from the process to accelerate industrialization in the Southern African region
H.E Ambassador David Claude Pierre, Head of Mission of the African Union Southern Africa Regional Office called on all stakeholders within the region to acknowledge and agree that Industrialization was an important vehicle for promoting economic growth, creating jobs, production of higher value goods, increasing exports and export earnings, improving resource allocation efficiency and creating linkages with other sectors and of sustainable employment opportunities. He noted “the launch of the AfCFTA comes as an opportunity that if successfully implemented, will speed up industrialization and foster economic development”.
The Southern Africa Development Community (SADC) made a presentation on Industrializing the SADC Region, highlighting the opportunities, achievements and challenges. Dr. Johansein Rutaihwa from the Industrial Development and Trade Directorate in SADC gave an overview on industrializing the SADC region, sharing strides, impacts and drawbacks while highlighting the key features of the SADC Industrialization Strategy & Roadmap (SISR). The speakers interrogated the key pillars from the SADC Industrialization Strategy and Roadmap, which include the Industrialization, competitiveness, regional integration and cross-cutting pillar. The goals for the meeting was to dialogue on how to promote industrialization within the region, promote regional integration and increasing manufacturing of goods and exports in the region.
Intra-Sadc trade jumps to 23 percent… need to deepen economic diversification (Chronicle)
REGIONAL economic diversification efforts and improving trade facilitation are paying dividends for the Southern African Development Community (Sadc), whose intra-trade has risen to 23 percent, up from 19 percent in 2021. The sub-regional trade level is above intra-Africa trade, which is hovering around 15 percent of total continental exports. Citing the latest African Union (AU) Regional Integration Report (2021), the Sadc Secretariate says the improvement reflects the positive impact of ongoing efforts to roll out various provisions of the regional Protocol on Trade.
This includes the implementation of simplified trading arrangements that have enabled an increase in informal cross-border trade covering both agricultural and non-agricultural commodities.
In a statement following the release of the trading report, the Sadc Secretariat said it continues to monitor the progress on regional levels of industrialisation and intra-trade to ensure the scaling up of regional economic diversification.
“Several activities and intermediate outputs have been achieved, but little change has been noted in impact indicators. The share of manufacturing value added to the Gross Domestic Product is still below 12 percent compared to a target of 30 percent by 2030 and 40 percent by 2050.
“Most Sadc member states still depend on agro-based and mining commodities in terms of contribution to GDP.” The region is already developing a regional framework and programme to improve the diversification and restructuring of its industrial base.
This is being done in the context of the region’s identified six priority areas where the value chains can be established and for which regional strategies should be developed. The six priority areas are agro-processing, minerals beneficiation, pharmaceuticals, consumer goods, capital goods, and services.
Women entrepreneurs and youth information sharing on AFCFTA and the protocol on women and youth (UNECA)
The United Nations Economic Commission for Africa (ECA), in collaboration with Namibia’s Ministry of Industrialisation and Trade (MIT), facilitated an information sharing and capacity building event on the African Continental Free Trade Agreement (AfCFTA) and the Women and Youth in Trade Protocol, which was held at Windhoek Country Club Resorts. The session was organized as a follow-up to the launch of Namibia’s National AfCFTA Implementation Strategy and Action Plan for 2022-2027, which was held on Monday 21 November 2022 at the same venue.
Tackling trade hurdles between EAC, Indonesia (The Citizen)
Africa accounted for only a fraction of our global trade last year. We exported goods worth $4.1 billion during this period. That translates to only three percent. North Africa led the pack with 34 percent, followed by West Africa (24 percent), East Africa (20 percent), Southern Africa (18 percent), and Central Africa at the tail end.
Recent statistics may not be very promising because EAC imports from Indonesia have dropped by 31 percent in the past five years due, among other factors, to the outbreak of Covid-19. In 2017, the EAC imported goods and services worth $ 961.5 million, but that figure dropped to $ 635.5 million last year. But there is a potential for exports from the EAC following the rebound of economies from the impact of the pandemic.
The bottom line, in my opinion, is that East African businesspeople have little exposure to the Indonesian market. It is rare to hear business people from the two sides interact. More so, it is not common for business delegations from the EAC to visit Indonesia to explore what our huge market can offer exporters from the EAC. What we should do now is enable the business people on both sides to intensify engagement because the potential is there. Indonesia is also a gateway to the ASEAN market.
African climate insurer targets Kenya as its eighth customer (Business Daily)
The African Risk Capacity (ARC) Limited has now set sights on the Kenyan government as it eyes to bag the eighth deal on the continent. The firm, which offers insurance policy covers for governments, communities as well as other humanitarian non-governmental organisations, says the renewed efforts to incorporate more clients are in line with the ongoing global climate debate. Founded in 2012, ARC is a specialised agency of the African Union (AU) that was incorporated to help African governments improve their capacities to better plan, prepare and respond to disasters.
ARC chief executive Lesley Ndlovu told a press briefing yesterday that insurance against natural occurrences by States would be the only sure way to achieve preparedness adding that it is also in line with the loss and damage conversation that prominently featured during the just-concluded COP27 talks.
“The loss and damage conversation that came up during the Egypt conference was very timely. The talk was about the provision of financial instruments and one of the surest ways of making more resources available to combat climate change is actually pooling funds together through commercial insurance,” said Ndlovu.
Logistics infra: Achilles heel of African trade (Logistics Update Africa)
On September 22, 2022, UNCTAD (United Nations Conference on Trade and Development) Secretary-General Rebeca Grynspan gave an example of how West Africa already lost a sowing season due to issues in the global distribution of fertilisers including the price rise and the global disruption of supply chains while addressing the annual summit of the Global Maritime Forum in New York. Even though she was talking about the food availability crisis that the world may face, it also goes to show how Africa is dependent on the maritime supply chain for its economy and food security.
One of the important impediments to Africa’s route of economic progress has been the lack of infrastructure, particularly in the maritime trade and it is visible in the ports and terminals across Africa compared to that in other continents.
“If you produce the goods and there is no transport and logistics it is as good as not producing at all. Because there is a need for goods to reach the final destination. There is a great percentage of funding that must go into logistics,” he said during the TechCabal webinar in August 2022.
Louis Yaw Afful - Executive Director, AfCFTA Policy Network, stressed the need for governments to allocate resources and fund the trade-related infrastructure, especially logistics to improve trade in the free trade area.
AfDB, AU sign $9.73m agreement to drive digital market (New Telegraph)
The African Union Commission (AUC) and the African Development Bank (AfDB) have signed a grant agreement to implement Phase 1 of the Upstream Project for Digital Market Development in Africa. According to a press release, the signing ceremony took place on Friday at AUC Headquarters in Addis Ababa, Ethiopia. The AUC Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, Ambassador Albert Muchanga, and the African Development Bank’s Deputy Director General for the East Africa Region, Abul Kamara, signed the agreement on behalf of their institutions. The statement said that the AfDB’s board of directors approved the grant of 7 million Units of Account ($ 9.73 million) in September this year, adding that the project supports the AUC’s implementation of digital economy projects to enhance a continental single digital market.
It also supports the implementation of the African Continental Free Trade Area and the Digital Transformation Strategy for Africa. Ambassador Muchanga expressed the AUC’s gratitude to the African Development Bank for its support. He said: “Covid-19 underscored the importance of digital technologies and the digital economy as a whole, and in that regard, Africa should think big when it comes to digital development, digital economy and the grand opportunities on integration and economic growth.” Dr. Kamara said the project would support the implementation of the African Development Bank’s High 5 priorities as accelerators to achieve Agenda 2063 targets and the continent’s economic transformation to get The Africa We Want. He added: “It is important to create employment opportunities for millions of young Africans, which is essential for the stability and prosperity of the continent.
The digital transformation of economies offers new opportunities to increase intra-Africa trade and boost economic growth.”
Africa deserves right to use natural gas reserves, says AfDB President, Adesina (Businessday)
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 the use of the fuel curtailed.
Agreeing to 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 last 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.
“Africa must have natural gas to complement its renewable energy,” African Development Bank President, Akinwumi Adesina said on the sidelines of the U.N. conference, being held in Sharm el-Sheikh, Egypt.
“Africa Will Shape the Future,” Says Biden’s Advisor (Liberian Daily Observer)
A senior advisor to US President Joe Biden says that the upcoming US-Africa summit is rooted in the recognition that Africa is a key geopolitical player, one that is shaping the present and will shape the future. The statement comes from Dana Banks, who works in the Biden administration as Special Assistant to the President and Senior Director for Africa at the National Security Council.
According to her, Biden believes that US collaboration with African leaders is essential to tackling shared challenges while seizing opportunities, including increasing sustainable food production; strengthening health systems, and combating the COVID-19 pandemic.
“With one of the world’s fastest-growing populations, largest free trade area, most diverse ecosystems, and one of the largest regional voting groups in the United Nations, African contributions, partnerships, and leadership are essential to meeting this era’s defining challenges,” said Banks who is in charge of the second US-Africa Leaders Summit in Washington, scheduled for mid-December.
“The continent’s dynamic economies and populations really do provide the foundation for a bright future for the continent and the United States. Whether it’s recovering from the pandemic and strengthening health systems, creating broad-based economic opportunity, or addressing the climate crisis. expanding energy access, revitalizing democracies, or strengthening the free and open international order.”
Cryptos: IMF calls for better regulations in Nigeria, others (Businessday)
The International Monetary Fund (IMF) has said the growing crypto market in Nigeria and other Africa countries needs better regulations. “The collapse of the world’s third largest crypto exchange FTX, and subsequent plunge in the prices of Bitcoin, Ethereum, and other major crypto assets, is prompting renewed calls for greater consumer protection and regulation of the crypto industry,” it said in a new blog on Tuesday.
Finder’s latest report on cryptocurrency ownership and adoption shows that Nigeria has the second-highest number of Bitcoin owners as of October at 48 percent, up from 16.1 percent in the same month last year. Australia sits atop the table, with 61 percent of crypto owners holding Bitcoin, the world’s most popular cryptocurrency. In August, Nigeria emerged as the most crypto-obsessed nation in the world based on the increasing number of Nigerians searching the Internet for crypto-related trading, according to CoinGecko, a crypto price tracker.
The IMF said regulating a highly volatile and decentralized system remains a challenge for most governments, requiring a balance between minimising risk and maximising innovation.
“Only one-quarter of countries in sub-Saharan Africa formally regulate crypto. However, two-thirds have implemented some restrictions and six countries — Cameroon, Ethiopia, Lesotho, Sierra Leone, Tanzania, and the Republic of Congo — have banned crypto,” it said.
CEMAC: Symposium suggests ‘deep’ reform of the CFA Franc (Ecofin)
The CFA Franc reform being demanded since 2019 concerns the current mechanisms for monetary cooperation with France. Last November 17-18, a symposium was held in Libreville, Gabon, on the theme “Currency and Development in Central Africa.” During the symposium, university professors, economists, and other civil society actors from the CEMAC zone mostly supported deep reforms of the CFA Franc.
For the economist, at the time the CFA Franc was adopted, France was the major trade partner of CEMAC countries (Cameroon, Central African Republic, Congo, Gabon, Equatorial Guinea, and Chad). Nowadays, however, the list has changed with the CEMAC region’s trade with countries like China and other Asian countries growing significantly in recent years, as Nouveau Gabon reports.
“Reserves are used to facilitate trade with foreign countries. So, if we have reserves in the Chinese currency, in US dollars, in Euro... I think we would have a more flexible policy for trade with foreign partners,” he added.
The participants at the symposium believed that reforming the CFA Franc would not be enough to boost the development of the CEMAC region. “…whatever the name or the monetary reform implemented, if they are not backed by public action and economic reforms, it would not help us achieve the development we all wish for. So, another set of reform is needed alongside the monetary reform,” said Professor Alain Kenmogne Simo. Geoffroy Foumboula Libeka, a member of Copil Citoyen, a Gabonese civil society, added that “the most important thing is not to change the currency.” “As long as there is no discipline in budget management or there are no sanctions punishing misappropriation of public funds, we can change as many currencies as we want, we can give any name we wish to those currencies but nothing will change. Good governance is the priority,” he said.
Patterson urges Africa-Caricom trade deal (Jamaica Gleaner)
Former Prime Minister P.J. Patterson has called on the leaders of African and Caribbean nations to fashion and ink a free trade agreement that would economically link the countries of the continent with those of the Caribbean subregion. Specifically, Patterson, who for many years had lead responsibility for trade issues for the 15-member Caribbean Community, Caricom, wants the regional trade bloc to take the lead in forging greater economic and financial ties with the ancestral motherland of the majority of the population of member countries of the integration movement, through a possible deal with the African Continental Free Trade Area, AfCFTA, which is being forged by African leaders.
“The linking of Caricom and AfCFTA would provide mutual economic benefits for African and Caribbean countries and also strengthen the cultural and historical bonds between them. A dynamic Trade Agreement would provide access to a huge market for Caribbean countries and also give African countries access to expertise in certain sectors where Caribbean countries have an advantage such as tourism. It would also strengthen their negotiating positions in the WTO (World Trade Organization) and other multilateral fora,” Patterson told the virtual conference.
Patterson reasoned that the time is opportune for ramping up Africa-Caribbean trade in the context of the negative effects of the COVID-19 pandemic on the economies of the African continent and the Caribbean region.
The Africa-Caribbean trade arrangement he contends, should involve the progressive removal of trade barriers by national governments based on feedback from businesses, and improvements in air and sea transport, trade in tourism, entertainment, culture and other services. Such an arrangement, he argued, would lead to more equitable trade and economic growth in the developing countries of Africa and the Caribbean.
He pointed to what he described as the untapped potential of trade by internet to overcome constraints of transport and infrastructure. He is recommending too, more two-way flow of business and financial services, policy consultancy and exchanges in arts and culture.
Global economy
UNCTAD urges civil society to help ensure consumer goods are safe (UNCTAD)
Consumers have the right to safe products but this right is constantly under threat. In the European Union alone, unsafe products cause accidents and losses estimated at $34.4 billion per year, according to the European Commission. This trend, though less reported, is replicated in the developing world.
“Civil society plays a key role in raising awareness among consumers and in signaling dangerous products in markets,” said Teresa Moreira, head of competition and consumer policies at UNCTAD, during a joint European Commission – UNCTAD workshop on product safety on 17 November. “National governments need to empower consumer groups to fulfil their mandate in ensuring product safety,” she added.
What the new “loss and damage” fund needs for success (UNDP)
The UN Climate Change Conference, COP27 may come to be remembered for missed opportunities. For example, to progress commitments to limit temperature rise of 1.5C degrees; or strengthen language on reduction of fossil fuels use; or address the gap in adaptation efforts. But COP27 should also be deservingly remembered for its agreement on a historic “loss and damage” fund for climate impact in developing countries. The hard-won deal is a turning point in acknowledging the vast inequities of the climate crisis. For the first time in 30 years of climate talks, developed countries will provide finance towards recovery and rebuilding of poorer countries stricken by climate-related disasters. In the initial flurry, more than US$300 million has been pledged by European nations.
The fund will support the most vulnerable countries and severely impacted middle-income countries can apply for aid too. A transitional committee with members from 24 countries will make recommendations for countries to adopt at the COP28 summit in November 2023. Now comes the difficult part; the fund must be set up and financed. Institutional arrangements and governance still must be detailed; new sources of funding identified and expanded. The following five steps are critical
LDCs need to be rewarded for their low emissions through better trade deals (Trade for Development News)
Bhutan has a vulnerable and fragile mountain ecosystem. It has made a conscious decision to maintain 60% of its territory covered by forests and enshrine this commitment in its constitution. Currently forests cover over 72% of its territory.
Like most least developed countries (LDCs), Bhutan’s export basket is at the lower end of value and largely includes primary or semi-processed goods. Our major exports are hydroelectricity, non-ferrous metals, minerals, cement and boulders. Our imports are finished goods or intermediaries of higher value such as fuel, machinery, rice, and vehicles.
Bhutan and other LDCs face numerous constraints and challenges to trade. We suffer from a lack of trade facilitation infrastructure - both soft and hard components; technical barriers to trade (TBT) and sanitary and phytosanitary (SPS) measures used as non-tariff measures; trade finance; supply side constraints; and limited market access to name a few.
In addition to these trade challenges, Bhutan is also on the frontline in terms of adverse impacts of climate change. We are increasingly suffering extreme weather events such as floods, landslides, glacial lake outburst floods, forest fires, windstorms and melting glaciers. As a result, Bhutan is struggling to finance adaptation and build resilience to climate change.
Tapping into the economic development opportunities that trade offers could help LDCs and Bhutan finance climate-resilient economies. An option could be to make carbon neutral exports earn a premium over carbon-intensive exports from countries. This could help reduce the challenges of imported emissions in major markets and contribute to raising global climate ambition.
Net zero trade offers a potential to turn the historic disadvantage of low industrialization and low levels of pollution into a trade and climate advantage. Unfortunately, there are still capacity and regulatory barriers to this endeavour. Overall, there must be increased and enhanced efforts from the developed countries to support trade with LDCs.
UN to vote on new tax convention proposed by African states (The Guardian)
Developing nations are hoping to secure greater power over global tax affairs at a critical United Nations vote in New York on Wednesday. If the body’s members vote in favour of a resolution put forward by the African Group of states, it could pave the way toward fresh intergovernmental talks on global tax policy. The draft resolution calls on members to decide to lay the groundwork for a new UN convention on tax.
This could shift clout from bodies traditionally dominated by rich countries, such as the Organisation for Economic Co-operation and Development (OECD), towards the UN, where developing nations have a greater say, campaigners claim.
Proposed by the group that represents the 54 African Union member states at the UN, the resolution would give the New York-based body the mandate “to monitor, evaluate and decide global tax rules”, the Tax Justice Network (TJN) said. This will “open the way for intergovernmental discussions on the negotiation of a UN tax convention and a global tax body”, said Alex Cobham, chief executive at the TJN.
However, there has been considerable opposition from some developed nations. Rich western countries have long fought diplomatic battles over which forum should hold sway over countries’ tax affairs.
Strengthening Domestic Resource Mobilization after COVID-19 (UNECA)
ECA in collaboration with UNCTAD and other Regional Commissions including ESCAP and ECLAC have been implementing project activities through a DA project aimed at enabling UN member countries to diagnose their fragilities in the global and regional context and identify and design appropriate policy responses leading toward recovery and return to the development path.
5 things to know about eTrade readiness assessments (UNCTAD)
Globally, the digital economy has been booming – a trend that COVID-19 sped up as more people and businesses went online. E-commerce sales worldwide, for example, grew 4% in 2019 to hit an estimated $26.7 trillion. And the latest UNCTAD data shows the pandemic’s boost was sustained in 2021. But some countries are less ready than others to take advantage of all the opportunities. So UNCTAD conducts eTrade readiness assessments to help them harness the power of the digital transformation to create better business opportunities, jobs and living conditions for all. Here are five things to know about the assessments.
Related News
tralac Daily News
Local news
Poultry industry jitters over extension to US anti-dumping tariffs (IOL)
The South African Poultry Association (Sapa) will have to continue to “take one for the team”, at least for the next 18 months, as the International Trade Administration Commission (Itac) conducts a sunset review of US anti-dumping tariffs, which expire tomorrow
Earlier this month, Itac began a sunset review of the US’s tariffs on concerns by Sapa and poultry producers in the SA Customs Union (Sacu) area.
Itac decided the application had “sufficient evidence and a prima facie case” to justify an investigation on concerns that the expiry of the tariff period without a new one in place could lead to percentage-based, or ad valorem anti-dumping duties such as those applied to other countries.
“This was a last-minute condition imposed by the US for its agreement to an extension of the Africa Growth and Opportunity Act (Agoa) trade agreement, which gave many South African industries duty-free access to the US market. For the benefit of these industries and the national economy, the poultry industry agreed to ‘take one for the team’,” Sapa-linked Fairplay said.
South Africa to receive further UK support for its hydrogen economy ambitions (Engineering News)
South Africa will receive further technical assistance from the UK, to advance the former’s hydrogen economy ambitions, the South African Ministry of Higher Education, Science and Technology announced on Tuesday. Separately, the UK Government confirmed the provision of this assistance, and that it would be funded by grants. The assistance would be provided through the UK Partnering for Accelerated Climate Transitions (UK PACT) initiative. The expanding hydrogen economy provided growing commercial opportunities, including for UK companies in South Africa. For example, UK company Hive Energy had a £5-billion project to build a solar- and wind-powered green ammonia plant in South Africa.
Namibia launches the AFCFTA national strategy in an effort to promote continental trade (UNECA)
The Namibian Government in collaboration with the Economic Commission for Africa (ECA) and the United Nations System in Namibia officially launched Namibia’s National Strategy and Implementation Plan for the Agreement Establishing the African Continental Free Trade Area (AfCFTA) for the period 2022-2027. The Agreement provides an opportunity for Namibia to increase its intra-African exports and enhance the country’s export-led manufacturing and services capabilities.
The Director for Sub-Regional Office for Southern Africa (ECA SRO-SA) Ms. Eunice G. Kamwendo gave a regional perspective of ECA support to Namibia in a statement delivered on her behalf by Ms. Olayinka Bandele, Chief, Inclusive Industrialization who also recognised the key role of MSMEs, including women and youth-owned businesses in anchoring export development and growth in Namibia.. She noted that, “by signing the AfCFTA Agreement, Namibia has unlocked access to a market of 1.3 billion people, providing opportunities for local entrepreneurs and to optimize these benefits there is need for the country to address issues pertaining to the removal of tariffs and non-tariff barriers”.
Chief Executive Officer for the Namibia Chamber of Commerce and Industry, Ms. Charity Mwiya added that the Private Sector’s concern is the capacity to compete in continental markets. Women find it challenging to compete in in formal markets. AfCFTA offers hope in building back together, this is a key instrument for building back together, to ensure resilience and drive growth.
The Business community stands to benefit from the launch of the national strategy which is a product of extensive consultations with stakeholders, she added, noting that the effective implementation of the strategy will require all partners and the private sector to pool resources together and critically analyse how women, youth, and grassroots organisations can be in the forefront. Mwiya commended the MIT for taking the sensitization campaigns to the grass roots. She called on the private sector to participate fully and embrace the initiative and “play to win”.
The Bulawayo Leather Cluster in Zimbabwe expects to realise more business value from embracing Intellectual Property Rights (IPR) following a capacity building training by the Southern Africa Development Community (SADC) regional programme on Support to Industrialisation and the Productive Sectors (SIPS). The intervention by SIPS to train small and medium enterprises (SMEs) in the leather sector from across the SADC Region sought to equip the SMEs with knowledge to harness the full value of Intellectual Property Rights including trademarks and patents, among others, arising from their innovations.
Bulawayo Leather Cluster secretary-general, Mr Fungai Zvinondiramba, said that while the SMEs have many innovations their IPRs have not been registered and are therefore not fully benefiting from their products. He said the interventions by the SIPS programme will help to strengthen the value chains in the leather sector across the region. Most innovations in various sectors, including the leather industry, are not being protected through applicable intellectual property rights hence full benefits are not being realized.
Ship with 10,000 tonnes of maize imports docks in Mombasa today (Business Daily)
A ship carrying 10,000 tonnes of imported maize will be docking at the port of Mombasa today, coming just days after the State said it will open the duty-free window for the produce. The consignment is getting to the country even before an official gazette notice is released to legally allow imports. Manifest from the Kenya Ports Authority (KPA) shows the consignment is onboard an African Merlin vessel. Trade Cabinet Secretary Moses Kuria who made the announcement last week, yesterday said the gazette notice will be out this week. Mr Kuria said traders will be allowed to import genetically modified maize and conventional grain.
Zanzibar to pay Thai company $69m for rice bought in 1988 (The East African)
A court has ordered the government of Zanzibar to pay a Thai company $69 million (about TSh159 billion) for rice bought in 1988. If Zanzibar had settled the payment in time, it would have paid $12.9 million (about TSh30 billion) 37 years ago. The Court of Appeal recently quashed a highly questionable ruling of the Registrar of the High Court of Zanzibar who had reduced the bill in 2017 to $5.7 million (about TSh13.1 billion).
Non-oil export sector has performed beyond expectations – NEPC CEO (InfoGuide Nigeria)
Amid efforts by the Federal Government to boost agricultural produce, the country still spends a lot on importation of agricultural products. How can we reduce agric imports, particularly the food element?
It is a fact that the import bill on food and agric products is still high but in recent times we have witnessed a gradual reduction in import and increased local production in produce that consumes high forex for import like rice. Produce like sesame, ginger, hibiscus, have witnessed increased production locally and have driven up our export volume.
We can reduce our import bill on agric produce by adopting a whole new approach in the agricultural sector. We have to introduce deliberate targeted policies geared at increasing our food production. These policies should provide support such as inputs (improved seedlings for increased yield per hectare, approved pesticides/insecticides, etc.), training on adherence to best practices, mechanisation, long-term funding, incentives among others to the farmers and other value chain actors. We have to make agric attractive to the youths by introducing technology, provide infrastructures such as silos, cold storage facilities, guarantee pricing, to ensure that increased production are secured and adequately stored. All these actions will drastically reduce our food import bill.
South Sudan readies for $112.7m IMF emergency funding (The East African)
The South Sudanese government will be receiving $112.7 million in emergency funding from the International Monetary Fund (IMF) to help address food insecurity, support social spending and boost its diminishing foreign reserves. This comes after the country’s authorities and the IMF staff reached a staff-level agreement for an emergency financing through the fund’s new Food Shock Window of the Rapid Credit Facility (RCF) combined with a programme monitoring with board involvement (PMB).
The team held discussions with the authorities on an existing staff-monitored programme (SMP) and on the authorities’ request for access to emergency financing through the new Food Shock Window to address urgent balance of payments needs.
African trade and integration
10 things Africa must do to accelerate industrialization and economic diversification in Africa (AU)
No country or region in the world has achieved prosperity and a decent socio-economic life for its citizens without the development of a robust industrial sector. Over the years, African leaders have restated their determination to seize emerging opportunities to foster industrial development as an effective, socially responsible and sustainable means towards economic transformation.
Many African countries have over the years experienced an unprecedented growth rate, partly linked to a “commodity-boom” and partly due to sound economic governance. Nevertheless, there has been a subdued industrial supply response to several years of macroeconomic stability. This is ascribed largely to a number of supply-side constraints: the lack of the required industrial capacities and capabilities, inadequate entrepreneurship and institutional support, energy and infrastructure bottlenecks and demand constraints due to the low purchasing power of the vast majority of the population and a low aggregate demand from the public sector.
The African Union is keen to accelerate industrialization. Here is a highlight of some of the areas of discussions at the upcoming Summit on industrialization and economic diversification in Niamey, Niger from the 20th to 25th November 2022.
AU Industrialisation Summit: Time to fully operationalise AfCFTA is now (Chronicle)
SHOWCASING strides in Africa’s industrialisation must be at the core of the continent’s efforts to address key structural economic and development transformation gaps. Existing fragilities are already being magnified by value chain disruptions occasioned by the Covid-19 pandemic and the prevailing geo-political complications. As part of building the regional transformation momentum, a high-level Africa Union (AU) Summit on Industrialisation and Economic Diversification is being convened this week in Niamey, Niger under the theme: “Industrialising Africa; Renewed commitment towards an Inclusive and Sustainable Industrialisation and Economic Diversification”.
The summit is part of the Africa Industrialisation Week (AIW — 20-25 November 2022), annual commemorative activities. It seeks to highlight Africa’s renewed determination and commitment to industrialisation as one of the central pillars in attaining the continent’s economic growth and development goals as articulated in Agenda 2063 and Agenda 2030.
In light of the key and strategic interdependences between industrialisation and the AfCFTA, this week’s summit aims to rally desired political momentum, resources, partnerships and alliances towards an Africa industrialisation drive. “This is along the continent’s resolve to drive structural transformation, built around leveraging Africa’s rich and diverse natural resources while at the same time embracing current advances in technologies, continental and global geo socio-political trends and emergence of tradeable services,” said the AU in a pre-summit brief.
‘Join forces’ for peaceful, prosperous continent, urges UN chief on Africa Industrialization Day (UN News)
To advance inclusive, resilient, and sustainable industrial development in Africa, he explained that multilateral cooperation is needed – along with bolstered public-private partnerships. “A new financial architecture with greater access to finance and lower cost of capital is key unlocking investments at scale”, flagged the Secretary-General. He underscored the need to “work collectively” to boost entrepreneurship, harness the potential of new technologies, expand opportunities for youth, women and girls, build climate resilience, and foster competitiveness and trade.
Industrial development is critical for sustained and inclusive economic growth in African countries, underscored the UN. By introducing new equipment and new techniques, industry can enhance productivity, increase the capabilities of the workforce, and generate employment. And with strong linkages to domestic economies, industrialization will propel African countries to achieve high growth rates, diversify their economies and reduce their exposure to external shocks – substantially contributing to poverty eradication through employment and wealth creation.
Joint African Continental Free Trade Area Implementation Support Project Announces Progress Update (African Business)
The African Continental Free Trade Area Implementation Support Project, a joint project established and funded by the United Nations Economic Commission for Africa (ECA), the Enhanced Integrated Framework (EIF), Islamic Development Bank (IsDB), the International Islamic Trade Finance Corporation (ITFC) and the Trade Development Fund (TDFD), today announced a number of project milestone developments and the execution of key activities to support the operationalization of the African Continental Free Trade Area (AfCFTA) in Burkina Faso, Guinea, Niger, Senegal, and Togo.
In January and February, 2022 consultations were held between ECA, EIF, ITFC, TDFD, and the beneficiary countries to prepare the Joint Project’s Terms of Reference and the implementation schedule of key activities. In the first phase of the project, which runs until June 2023, the approved activities call for the implementation of thirty in-country workshops and the development of insights studies, which are organized into three major categories to support the operationalization of the AfCFTA: Capacity building and sensitization on the AfCFTA Development of information tools on the AfCFTA Development of policy instruments to support AfCFTA implementation
For the people of Africa, it is important to achieve the AfCFTA’s promise of greater and deeper economic integration to attract investment, expand trade, generate better jobs, eliminate poverty, and increase shared prosperity. The successful implementation of the free trade agreement is essential for the fulfilment of this commitment and the Joint Project beneficiary countries of Burkina Faso, Guinea, Niger, Senegal, and Togo must have the capacity, information tools, and policy instruments to effectively implement the AfCFTA.
Africa needs to establish policies for developing its minerals – AfDB (Nairametrics)
The Acting Chief Economist at the African Development Bank (AfDB), Professor Kevin Chika Urama, has called on African countries to establish policies that will aid the development of the continent’s minerals.
He noted that Africa has 90% of green minerals that are important for the global energy transition, and 60% of solar radiation potential. Developing these potentials could help the continent to become a relevant player in the global energy transition era. According to him, if African policymakers can establish simple policies such as franchising, it could enable African countries to scale the development of their resources. And this will greatly benefit the continent.
In its 2022 African Economic Outlook, the AfDB pointed out that African countries have strategic presences in critical rare earth minerals used in battery manufacture that are in high global demand.
The Outlook also noted that with adequate policy and financial support, Africa could establish a large, lead-acid, and lithium-ion battery recycling and repurposing value chain. This can happen by organizing and formalizing existing informal capacities, linking regional battery sourcing, and standardizing battery value chains.
Made by Africa: 94 value chains to boost intra-African trade (ITC)
Invest in pharmaceuticals, baby food, cotton clothing and automotives, in line with African goals to improve food security, health and tech skills, to kickstart trading under the €2.5 trillion market of the African Continental Free Trade Area (AfCFTA). That’s the key message of a new report, Made by Africa: Creating Value through Integration, released today during the African Union Summit on Industrialization and Economic Diversification in Niamey, Niger. The International Trade Centre (ITC) produced the report, in close collaboration with the African Union Commission and the European Commission.
The report identifies 94 value chains with high potential for sustainable development, with each value chain linking to at least five African countries from different regions. These four sectors emerge as especially promising, including for small businesses, which make up 90% of companies and more than half of jobs worldwide: pharmaceuticals, baby food, cotton clothing and automotives.
ITC data show current intra-African export growth potential to be US$22 billion.
China on course for Africa trade boost, as duty-free access list grows (South China Morning Post)
Nearly a year ago, President Yoweri Museveni of Uganda requested that the East African country be allowed to export more products tariff-free to the lucrative Chinese market. China’s trade restrictions made it impossible to export some items, he explained.
“The only new thing now I should insist on is the issue of market access,” he said, urging China to “allow our products to enter their market, quota-free, tax-free... We would like … a broader spectrum of access to the market, without tax and without quantitative limit.”
Last week, that request was granted. From December 1, China will waive tariffs on 98 per cent of taxable items originating in 10 least-developed countries (LDCs), including Uganda and eight other African nations.
Digital technologies open vast business opportunities in Africa (Brookings)
The share of Africa’s population connected to digital technologies is growing rapidly. In 2020, almost half a billion Africans—76 percent of the continent’s adult population—had access to mobile phones. A growing share of the continent is also connected to the internet, although often through mobile data networks that have limited bandwidth. Expanding access to digital technologies is opening up vast business opportunities in a continent otherwise characterized by bureaucracy, corruption and state failure. Digital technologies circumvent the institutional failures that have long suffocated business growth and dynamism. Digital platforms that connect service providers with Africa’s consumers are particularly flourishing in sectors as diverse as banking, agriculture, transportation and other services.
These benefits of digital platforms, however, come with a number of challenges that introduce policy dilemmas. One of the challenges is that digital platforms tend to end up with one dominant player, due to the network advantages from joining the largest platform. Like many other businesses with monopoly power, dominant platforms could be tempted to use bare-knuckle approaches to entrench themselves.
The business risks in post-pandemic Africa: COVID-19 impact (RSM Global)
The COVID-19 pandemic continues to dominate headlines throughout 2022
Discussing the risks posed by the pandemic, as well as the areas of opportunity in the region, Phillip Krueger, RSM South Africa, commented, “In South Africa, the middle market has certainly been significantly impacted by the pandemic. In general, the economy contracted over the last couple of years as a result of consumer fears, as well as lockdown restrictions. This had quite a severe impact on middle market businesses who typically would hold less reserves than larger organisations. With a decline in sales activity or operations halting completely in some cases, many businesses saw their bottom-line figures significantly impacted.
“However, middle market businesses have proven to be resilient, particularly when adjustments to operational activities can be implemented with more agility than larger organisations. So yes, middle market business in South Africa certainly have not been left untouched by the commercial stresses brought by the pandemic, but we have also noticed a far greater rate of recovery in the middle market segment.
Mphile Manana, RSM Eswatini, added, “The COVID-9 pandemic forced governments to impose strict lockdown regulations in Eswatini, which restricted the movement of people and in turn disrupted supply chains. Those businesses which had in-house value chains were not as affected compared to those who relied on an external supply. “In African countries, some businesses, especially retailers that had not already moved to an e-commerce offering, were greatly affected by the lockdown restrictions due to limited movement of consumers. This is in stark contrast to businesses in digitally advanced African countries where online shopping became an alternative for consumers, and their sales increased as a result.
Odirile Setlhoka, RSM Botswana, shares: “As the pandemic evolves, we are experiencing an increased focus on what the world will be like once we come out the other side. Many companies and individuals are eyeing the opportunity for pressing the reset button and achieving something better. “But there are still a lot of uncertainties about how the future will look. There is a risk of recession and deglobalisation which will perpetuate the effects of the pandemic in business and governments. The decisions we make now will therefore shape our future.
The business risks in post-pandemic Africa: Protectionist laws (RSM Global)
Over the last few years, populism, deglobalisation and protectionism has been on the rise. The US and China continuously vie for economic supremacy, both imposing restrictive import and export measures in a shift which is eroding global free trade. Further evidence lies in Britain’s exit from the European Union, causing uncertainty and heightening concerns on insecurity in European policy.
By definition, protectionism is the act of protecting domestic industries’ competitive advantage against the threat of foreign competition. This can be executed through a number of vehicles, such as import quotas, tariffs or by placing other restrictions. While inherently using protectionism to ‘protect’ a country’s industry, there may be some unwanted long-term consequences such as less competitive marketplaces and economic isolation.
Mphile Manana, RSM Eswatini says, “In other countries in Africa, there are laws that state that for a company to invest in their country, the indigenous company should hold at least a 51% shareholding. The African Continental Free Trade Area (AfCFTA) which came into effect in January 2022 is aimed at building a single and integrated market on the African Continent. “Full implementation of the AfCFTA would help African countries increase their resilience in the face of future economic shocks and help usher in the kind of reforms necessary to enhance long term growth. The AfCFTA aims to eliminate tariffs on 90% of goods produced on the continent.
“However African markets still need to address the Non-Tariff Barriers (NTBs) such as import restrictions and quotas that make trade difficult and costly. However, the removal of NTBs is likely to take time as it will require a lot of political will. Some governments may be reluctant to fully support the
Enhancing regional power trade in the horn of Africa (ESI Africa)
Regional power trade in Djibouti, Eritrea and Ethiopia through the Desert to Power Initiative was the topic of discussion at the Africa Energy Market Place.
The African Development Bank Group’s sixth edition of the Africa Energy Market Place (AEMP), focused on Djibouti, Eritrea and Ethiopia under the theme: Delivering Desert to Power in the Horn of Africa – Enhancing Regional Power Trade. AfDB Vice President Dr Kevin Kariuki encouraged participants to leverage the opportunities presented by the AEMP. “The AEMP platform devises a collaborative mechanism and concerted approach to monitoring and implementation of the Country Priority Plans beyond the AEMP event to achieve the desired objectives,” explained Kariuki.
Dr Daniel Schroth, AfDB Director for Renewable Energy, presented the Desert to Power Initiative (and the Bank’s ongoing initiatives in the Horn of Africa countries): “Desert to Power’s robust value proposition for the Horn of Africa countries includes mobilising concessional resources at scale, availing project preparation support and facilitating match-making opportunities with the private sector seizing the energy potential of the three countries present,” Schroth explained.
Wale Shonibare, AfDB Director for energy financial solutions, policy and regulation reminded participants that “the ultimate goal of the AEMP and its policy dialogue with governments is to not only develop implementable actions with the respective countries but to secure commitment of all stakeholders to implement them in the coming years.” The Africa Energy Market Place is a collaborative investment platform created by the African Development Bank as part of the New Deal on Energy for Africa, the transformative partnership to light up and power Africa, in keeping with the Bank’s High 5 strategic priorities.
Combatting cybercrime at the fore of debriefing session on Africa Cyber Surge Operation (Republic of Mauritius)
A debriefing session, following the Africa Cyber Surge Operation organised in Kigali in Rwanda from 18 July to 05 August 2022, is being held in Mauritius from 22 to 24 November 2022. The event is an initiative of the INTERPOL and the AFRIPOL, and has as objective to promote cross-fertilisation of ideas and sharing of best practices with regard to cybercrimes. Participants from 28 countries, namely Kenya, Eritrea, Ghana, Gambia, amongst others, are attending the session.
In his address, DSP Jangi highlighted that the Africa Cyber Surge was a multi-national cybercrime suppression operation focused on identifying cyber-criminal and their network infrastructure, and was aimed at supporting member countries as well as law enforcement agencies in their combat against cybercrime.
He indicated that criminals were misusing new technologies to target people on social networks and online systems, adding that phishing, ransomware and data breaches were examples of current cyber threats.
Global economy
DG Okonjo-Iweala: “We need multilateral cooperation and solidarity more than ever” (WTO)
As the world navigates the polycrisis - climate change, pandemic, the war in Ukraine, economic slowdown, inflation, food insecurity, monetary tightening and debt distress - we need multilateral cooperation and solidarity more than ever.
I will offer an alternative vision for the future of trade. Interdependence without overdependence. Deeper, more diversified, and deconcentrated international markets - or what we at the WTO are calling re-globalization.
If governments are willing to use trade constructively to solve problems rather than amplify them, the WTO can help foster not just supply resilience amid ever more frequent exogenous shocks, but also geopolitical resilience.
Consider the experience with COVID-19. Most people remember the medical supply shortages and export bans early on. Frequently overlooked is that cross-border supply chains subsequently became an engine for manufacturing and distributing masks, personal protective equipment, and later, vaccines. COVID-19 vaccines are made in supply chains cutting across as many as 19 countries. Trying to scale up production within purely national supply chains would have left all countries worse off: production volumes would have been lower, and costs higher.
Trade is critical for access to food, particularly in countries with insufficient water and arable land. One in five calories consumed around the world is traded across borders, according to the FAO and the OECD, and this share has been rising. At this time of rising food and energy prices, trade plays an important role in accessibility and affordability. Put it this way: the recent opening of the Ukraine Black Sea Grain Corridor, and the way it brought prices down, shows us that situations can be more often than not worse without trade.
Trade is also an essential part of a just and ambitious response to climate change, since it is vital for diffusing green technology, cutting the cost of getting to net zero, and helping countries mitigate and adapt.
Deeper and more diversified markets would enhance supply resilience in a world of more frequent exogenous shocks. Reduced concentration in sourcing would make trade harder to weaponize.
We should acknowledge there are tradeoffs - we would lose some of the efficiency gains that come with scale and agglomeration, but we would gain in terms of resilience and adaptability.
To some extent, this would simply extend trends we are already seeing. Firms are already moving to diversify risks by adding sourcing and investment locations. We see evidence that source market concentration is diminishing, even for products like rare earths.
By taking these dynamics further - by bringing countries with good macro environments in Africa, Asia, and Latin America from the margins of global production networks to the mainstream - we can make trade more resilient whilst bolstering growth and poverty reduction.
So what I am saying? I’m saying let businesses manage risks and diversify in a sensible manner, but if governments seek to intervene, to encourage this through subsidies or other incentives, then push for a broader, wider diversification to many more geographies, wherever the investment environment is appropriate. This would contribute to the re-globalization which we seek.
China’s Xiamen sees trade with BRICS up 26.3 pct in Jan-Oct (Xinhua)
East China’s coastal city of Xiamen, Fujian Province, saw its trade with BRICS countries increase 26.3 percent year on year to hit 76.46 billion yuan (about 10.67 billion U.S. dollars) in the first 10 months of this year, according to Xiamen Customs.
Xiamen’s exports to BRICS countries amounted to 23.44 billion yuan from January to October, up 27.2 percent year on year, and its BRICS imports totaled 53.02 billion yuan, up 26 percent. The city’s imports and exports with South Africa and Brazil maintained rapid growth. Its trade with the two countries reached 11.27 billion yuan and 23.37 billion yuan, up 31.1 percent and 18.8 percent, respectively. Major imported goods during the period included metal ore, mineral sands, coal and lignite, and agricultural products. Main exports included mechanical and electrical products, as well as labor-intensive goods.
Funding a new impetus for G20 goals (The Tribune India)
On December 1, India will assume the presidency of the prestigious G20. Prime Minister Narendra Modi symbolically accepted the presidency from Indonesian President Joko Widodo on November 16 in Bali. The G20 is amidst a critical phase as global dynamics are cleaved. The political and security agenda is overwhelming the real problems that the world faces. India’s strenuous efforts to maintain its strategic autonomy and adopt positions which are now better accepted as constructive give it a unique position to navigate the troubled waters in Europe, Asia and beyond.
This is an important time for India’s presidency because it is the second in a chain of presidencies of leading countries of the global South. India has taken over from Indonesia, will be followed by Brazil under its new President Lula and then South Africa in 2025. This gives India the opportunity to forge a growing alliance of the global South to set the priorities of G20 without being overwhelmed by big-power rivalry.
Global intellectual property filings reached new records in 2021: WIPO (UN News)
According to the World Intellectual Property Organization (WIPO), despite the disruption of the coronavirus pandemic, this bucked previous economic downturn trends. Latest data shows “continued and sustained growth” in intellectual property filings, “driven largely by increases from Asia, with other regions also trending mostly upward”, said WIPO Director General Daren Tang. “IP filing strength during the pandemic showed that people across the world continued to innovate and create despite the economic and social disruptions caused by the pandemic”, he added.
Data published in WIPO’s latest World Intellectual Property Indicators report indicates that innovators filed 3.4 million patent applications globally last year, which was up 3.6 per cent from 2020 – with Asia driving more than two-thirds of requests.
Related News
tralac Daily News
COP27 outcomes and reactions
Call for collaboration to achieve COP27 outcomes (SAnews)
South Africa has called on all Parties to work constructively and in a spirit of compromise to achieve the draft outcomes of the United Nations Framework Convention on Climate Change (UNFCCC)’s Sharm el-Sheikh Conference of Parties (COP27), which frames the climate crisis. “It reflects the urgency of the climate crisis and the need to keep the 1.5-degree temperature target alive during what the International Panel on Climate Change (IPCC) calls the “Critical Decade”, including by providing a clear programme to advance the mitigation agenda from now to 2030,” said the Department of Forestry, Fisheries and the Environment on Saturday. The department said the draft correctly frames the climate crisis and its solutions in terms of the sustainable development goals and Just Transitions, leaving no one left behind, and the need for broader financial sector reform to achieve these.
“The proposal to seek multilateral consensus on making financial flows consistent with pathways towards low emissions and climate resilient development will open new investment opportunities in Africa for clean energy investments that will equally address the continent’s energy poverty crisis.
“COP27 is providing critical momentum to reform the Multilateral Development Banks and International Financial Institutions and we expect the shareholders of these institutions to take decisive action to scale-up climate finance in 2023 and make their institutional arrangements fit for purpose,” the department said.
Sharing best practices at COP27: African countries seek to understudy Planting for Food and Jobs (Graphic Online)
The story of the agriculture flagship programme, Planting for Food and Jobs (PFJ), has triggered interest in some African countries seeking to understudy and learn best practices in replicating the policy in their respective countries. At the African Development Bank high-level event on adaptation and agriculture at the just-ended COP27 at Sharm El-Sheikh in Egypt on the theme, “Mobilising innovative financing for building resilient and sustainable food systems on the African continent”, Ghana’s model was acclaimed as one of the panaceas for food security in Africa.
“Research stepped up production of climate-resilient breeder and foundation seeds and similarly, private sector increased their production of certified seeds. “A strong local seed sector now exists that continues to be strengthened with leadership from the private sector,”
Ghana’s Minister of Food and Agriculture, Dr Owusu Afriyie Akoto said the interventions contributed to the adoption of improved seeds and fertilisers with the seed use increasing from 11 per cent of farmers in 2016 to 53 per cent in 2021 and fertiliser application increased from eight kilogramme (kg) per hectare to 25 kg over the same period.
Deputy Executive Secretary and Chief Economist at the Economic Commission for Africa (ECA), Hanan Morsy, highlights that harnessing the potential of Africa’s growing youth population will be vital to shaping the continent’s future whilst speaking at a COP27 event on Putting youth innovation and entrepreneurship at the heart of Africa’s low-carbon transition, In her opening remarks, the Deputy Executive Secretary noted, “ 70% of Africans are below 30, and by 2040 Africa is predicted to have the largest workforce in the world – surpassing China and India. We are here to ensure that we are utilizing this invaluable asset and how we can integrate them into solutions for climate action for a better tomorrow.”
It is illogical to fund the irreversible consequences of climate change without significant investment in the adaptation and mitigation measures that developing countries need to address the underlying causes. 54 developing economies – 40 percent of all low- and middle-income countries – currently suffer severe debt problems, strongly limiting their ability to take decisive climate action and to invest in the global green economy.
ActionAid hails loss and damage fund outcome at COP27 as victory for people living on the front lines of climate disasters (ActionAid International)
Loss and damage fund at COP27 a monumental win, if properly funded: Oxfam (Oxfam International)
Statement by President von der Leyen on the outcome of COP27 (European Commission)
Commonwealth Secretary-General welcomes historic outcome on loss and damage at COP27 (The Commonwealth)
Youth and women must be involved in climate action (Mail & Guardian)
Local news
President Cyril Ramaphosa concludes participation at G20 Leaders Summit in Bali (South African Government)
President Cyril Ramaphosa has today, Wednesday 16 November 2022, concluded South Africa’s participation at the G20 Leaders Summit held in the Republic of Indonesia on 15 and 16 November 2022. The G20 Leaders Summit in Bali was hosted by His Excellency President Joko Widodo, under the theme “Recover Together, Recover Stronger”. The Summit gathered world leaders whose economies account for 85% of the global Gross Domestic Product (GDP), 80% of world trade and two-thirds of the world’s population where discussions centred on food and energy security, health, digital transformation and global infrastructure and investment. President Ramaphosa addressed the working session on food and energy security where he expressed South Africa’s position that developed countries in the G20 need to demonstrate more ambitious climate action and must honour their financial commitments to developing economies.
The President further said South Africa will continue to contribute its fair share to the global climate change effort through a just transition that supports sustainable development.
President Ramaphosa called for continued G20 support for the African Renewable Energy Initiative as a means of bringing clean power to the continent on African terms.
AfCFTA to boost agric exports (The Herald)
Dairy farmers have been urged to take advantage of the African Continental Free Trade Area (AfCFTA) Agreement to access export markets and boost their incomes. Speaking at a Dairy Value Chain policy dialogue in Harare last week, Department of Veterinary Services director Dr Josphat Nyika said AfCFTA presented the country with a unique opportunity to unleash its economic potential for inclusive growth and sustainable development.
Dr Nyika said the implementation of the Livestock Growth Plan was bearing fruit in the dairy sector as the nation was making headway in the attainment of the status of an upper middle income economy by the year 2030.
“Government is focusing on vertical and horizontal growth of the sector,” he said. “Vertical growth will be achieved from increasing productivity per cow per day and horizontal growth from herd increase. Clearly, vertical growth will enhance viability and profitability.
Angola Drives Regional Development via Transnational Energy Networks (African Business)
Angola’s oil and gas resources are set to bring about significant opportunities for the entire Southern African region as the hydrocarbon-rich country leverages transnational energy networks to trade, collaborate and grow both energy markets and the wider African economy.
As the country’s regional emergence takes off, the third edition of Angola Oil & Gas (AOG) taking place under the auspices of the Minister of Mineral Resources, Petroleum and Gas from November 29 to December 1 in Luanda will host a Regional Emergence panel session, unpacking the impact Angola’s hydrocarbon expansion is set to have on the regional market.
Led by industry experts to the likes of Pedestal Africa, SNC Law Group, SOAPRO and McKinsey & Company, the panel promises a comprehensive discussion on how Angola’s oil and gas developments will trigger positive impacts on the Southern African community and vice versa. At a time when demand for oil and gas is growing significantly, industrialization requires reliable energy supply and large-scale discoveries are being made across the entire regional energy landscape, the panel aims to kickstart a discussion on the role regional collaboration will play in ensuring upstream finds translate into successful developments.
Kenya marks five years since single use plastic bag ban (CGTN Africa)
A ban on single-use plastic carrier bags has been in place in Kenya for slightly over five years now. It has led to a cleaner environment, as plastic bags were clogging drains, filling dumpsites, and endangering the lives of livestock that consumed them. However, one Kenyan man who played an active role in getting plastics banned in the East African nation says more still needs to be done to protect the environment.
Kenya to benefit from Sh366.5bn facility from Afreximbank (Capital FM Kenya)
Kenya is set to benefit from a USD3billion (Sh366.5billion) Country Programme from the African Export-Import Bank (Afreximbank) as part of its efforts to support the country as it navigates the current unprecedented global economic challenges. This was announced during a meeting between Kenya’s President His Excellency William Ruto and Benedict Okey Oramah, President and Chairman of the Board of Directors of the African Export-Import Bank.
A technical team drawn from the Kenyan government and Afeximbank is expected to begin working on the structure of the support. A significant part of the support will involve the establishment of a Kenya Climate Change Adaptation Facility. Underpinning this, Afreximbank will put in place USD800 million(Sh97.7billion) financing towards building 100 dams towards doubling irrigated area in Kenya, while paying particular attention to regions experiencing water shortages as a result of the impact of climate change.
Kenya injects first dispatch of Ethiopia power into national grid (The East African)
Kenya injected the first dispatch of cheaper hydropower imported from Ethiopia into the national grid last week, rolling out the plan that is expected to aid a reduction in power bills for businesses and households. The 25-year deal power import deal with Ethiopia will see Kenya Power take up a maximum capacity of 200 megawatts in the first three years, rising to 400MW for the remaining period.
Energy and Petroleum Regulatory Authority (Epra) director general Daniel Kiptoo said Kenya Power took up 75 megawatts on Thursday, with additional capacity to be injected following the official commissioning of the import plan. Kenya is buying the Ethiopian power at 6.50 US cents per kilowatt hour, which is significantly lower than the tariffs charged by Independent Power Producers.
The lower tariff is expected to improve ability of Kenya Power to offer lower retail prices to consumers.
Mobile money agents handle Sh5.9trn in nine months (Business Daily)
Cash mobile money agents handled in the nine months to September went up by 17.6 percent, indicating the growing mobile money penetration in Kenya. The Central Bank of Kenya (CBK) data show the transactions were recorded at Sh5.91 trillion, up from Sh5.03 trillion in similar period in 2021, doubling in four years. This underpins the growing relevance of mobile money and the high penetration rate in the country whereby money is transferred through mobile money channels while others deposit hard cash at the agents to make payments such as school fees, rent, water bills and government services.
The latest findings of the Financial Access (FinAccess) Household survey also show higher usage of mobile money accounts than banks, deepening financial access. The report shows Nairobi has the highest usage of mobile money services at more than 93.9 percent of the population, followed by Kiambu (91 percent), Murang’a (90.4 percent) Nyeri (89.8 percent) and Mombasa (88.6 percent).
Ruto unveils building of road linking Kenya and Tanzania (The East African)
Kenya’s President William Ruto has launched the building of the Mtwapa-Kwa Kadzengo-Kilifi (A7) road which will link Kenya and Tanzania. The road is part of the Sh7.5 billion ($61.4 million) multinational Malindi-Lunga Lunga/Horohoro-Tanga-Bagamoyo East African coastal road corridor. Ruto promised to put more emphasis on infrastructural developments to boost connectivity, trade and tourism sectors within the East African Community. “This is an important road linking Kenya and Tanzania. It will boost trade and economies between the two countries. It will connect the East African Community in terms of integration, jobs, businesses and eradicate poverty,” the Kenyan head of state said.
Business between Kenya and Tanzania is set to rise after the commissioning of the project. The road will be completed within 36 months. The corridor is being built through a grant from the African Development Bank (AfDB) in partnership with African Development Fund, EU-African Infrastructure Trust Fund Grant and the Kenyan government.
Industrialists report growth as Rwanda seeks more manufacturers (The New Times)
Fifteen years ago, Master Steel was only making iron sheets. But, currently, it is producing over 10 items of construction materials, and almost quadrupled its initial production as Rwanda’s housing needs have been growing, according to the Company Sales and Marketing Manager.
Constantin Rugaba made the disclosure while speaking to The New Times as Rwanda held the celebrations to mark Africa Industrialisation Day last week in Kigali.
Rugaba said that factories making construction materials have registered progress, especially in line with the development of the country where there are many infrastructures [projects] that should be executed.
IFC Supports DTRT Apparel Group’s Expansion, Job Creation Strategy in Ghana (IFC)
Backing Ghana’s ambition to become a regional textile and apparel manufacturing hub, IFC today announced a partnership with DTRT Apparel Group that will support the expansion of the company’s garment production capacity and create thousands of jobs.
Under the partnership, IFC will lend DTRT up to $8 million, including $4 million from IFC’s own account and $4 million from IFC in its capacity as the implementing entity of the International Development Association’s Private Sector Window. DTRT will use the funds to expand its garment manufacturing capacity in Ghana’s Greater Accra region, supporting the creation of more than 6,000 jobs over the next six years.
IFC will also provide DTRT, West Africa’s largest apparel manufacturer, with advisory services to help the company further strengthen its support for women in its workplace.
Ghana: Economy’s structure must change after IMF bailout – experts (The Business & Financial Times)
Experts on the economy have advised that government must put in the necessary efforts to ensure that the structure of the economy does not remain same after the conclusion of the proposed programme with the International Monetary Fund (IMF).
Speaking on the topic ‘Managing IMF’s Expectation and Ghana’s Economy: the Way Forward’ at the Institute of Chartered Accountants Ghana’s breakfast meeting, Director of the Institute of Statistical, Social and Economic Research (ISSER) at the University of Ghana, Professor Peter Quartey, said that the economy must move from being import-driven to production-driven in order to avert the structural challenges that always push it to the IMF for a bailout.
“IMF will come and give you short-term economic respite, but we have to change the structure of the economy. We have to produce and export in a value-added form. I have seen some young ones putting efforts in adding value to some products, but the boost is not enough for me. The IMF will come but we need to put things in order. We should stop profiteering, it will not help us as Ghanaians,” he noted.
To Promote Inclusive and Sustainable Development, Nigeria Needs to Fix its Public Finances (World Bank)
Macroeconomic and fiscal reforms are urgently needed to lift Nigeria’s development outcomes, which are severely constrained by inefficient use of resources, argues the new Nigeria Public Finance Review report released today. For years, a large share of Nigeria’s resources have financed inefficient and regressive subsidies for petrol, electricity, and foreign exchange. Not all these subsidies are accounted for in the budget, which makes them difficult to track and scrutinize.
“Nigeria’s government urgently needs to strengthen fiscal management, create a unified, stable market-based exchange rate, phase out its costly, regressive fuel subsidy and rationalize preferential trade restrictions and tax exemptions. These would lay the groundwork for the increases in public revenues and spending needed to improve development outcomes,” said World Bank Group President David Malpass. “Decisive moves would significantly improve the business enabling environment in Nigeria, attract foreign direct investment, and reduce inflation. The World Bank is ready to increase support to Nigeria as it designs and implements these critical reforms.”
Nigeria: Staff Concluding Statement of the 2022 Article IV Mission (IMF)
Economic recovery continues on the back of agriculture and services sectors . Output growth at 3.4 percent (y/y) in 2022Q2 marked the seventh consecutive quarter of growth driven by various services sectors, especially information technology, trade, and finance. Oil production has been on the decline since mid-2020, reflecting low investment and significant leakages associated with poor maintenance and theft. Output growth is expected to moderate in 2022 to 3 percent and improve slightly next year. The slowdown in growth reflects year-to-date weaknesses in oil production and the adverse effects of recent flooding.
Strengthening the performance of the agricultural sector is key to job creation, food security, and social cohesion. Over the next decade, an estimated 25 million additional jobs will be needed to employ the new labor market entrants. For agriculture to continue playing a strong role in employment and ensure food security, boosting production and yields through improved input usage, especially through affordable fertilizers and higher quality seeds, better storage facilities and a more coordinated policy support across government agencies are recommended.
Trade-enabling reforms are essential to promote economic diversification. The reopening of land borders earlier this year is a welcome move to facilitate trade. To speed-up compliance with rules on non-tariff barriers agreed under the African Continental Free Trade Agreement, the mission recommended making operational the already deployed scanners, which would limit tedious physical ports inspection processes and contain customs delays.
IMF Staff Completes 2022 Article IV Mission to Algeria (IMF)
The rally in hydrocarbon prices is contributing to the recovery of the Algerian economy from the pandemic shock. Large windfall hydrocarbon revenue has alleviated pressures on external and public finances. In 2022, the current account balance is forecast to record its first surplus since 2013, and international reserves rose to USD 53.5 billion in September from USD 46.7 billion in 2021. The significant rise in non-hydrocarbon exports has also contributed to this improvement. A fiscal surplus is expected in 2022 on higher revenue and lower-than-expected spending execution. The recovery from the pandemic shock is continuing, with non-hydrocarbon GDP growth projected to accelerate to 3.2 percent in 2022 from 2.1 percent in 2021. This will mark a recovery of most of the output loss from the pandemic shock, although durable scars on labor markets and medium-term growth are still risks. Real GDP growth is projected at 2.9 percent.
The near-term outlook is favorable, but highly contingent on hydrocarbon prices. The current account is projected in surplus in 2023 with high hydrocarbon revenue offsetting a recovery in imports. Growth is projected to accelerate and inflation to slowdown but remain above 8 percent on average amid easing in fiscal policy in 2023.
Mozambique makes first export of Liquefied Natural Gas (The Exchange)
Mozambique is significantly being exposed to the EU’s planned Carbon Border Adjustment Mechanism (CBAM), mainly due to its large aluminium export to the EU. Aluminium is the country’s largest export good, making up 25 per cent of export earnings, worth US$1.4 billion. According to an article by Enabel published on November 3, 2022, under the proposed CBAM, Mozambique’s aluminium exports could result in an annual taxation of between EUR 50 – 350 million per annum, depending on the approach used for estimating the carbon intensity. On the other hand, Mozambique also has unrivalled natural energy resources that could significantly contribute to a green energy transition, not only domestically but also in the Southern African region.
Côte d’Ivoire, Ghana demand higher prices for their cocoa growers (The East African)
The world’s chocolate industry could be in for a turbulent ride as the two biggest cocoa producers set down demands for manufacturers to pay higher prices for their growers. The quarrel focuses on the Living Income Differential (LID) — a policy that Côte d’Ivoire and Ghana introduced in 2019 to fight poverty among cocoa farmers in the global $130-billion chocolate market. Under it, Côte d’Ivoire and Ghana vowed to charge a premium of $400 per tonne on all cocoa sales, starting with the 2020/21 harvest.
But trade boards in the countries — the Ivorian Coffee-Cocoa Council (CCC) and the Ghana Cocoa Board (Cocobod) — say the scheme is being undermined as cocoa traders depress the price of another premium that operates in parallel.
MRU countries sign MOU on trade, revenue and security relation (Concord Times)
Sierra Leone, Liberia and Guinea or the Mano River Union (MRU) have signed an agreement to improve custom relation on trade, revenue and border security among them.
The Customs Chiefs emphasized the need for mutual administrative assistance among them as the appropriate way to address revenue frauds, facilitate cross-border trades, and the engendering regional security. “The only way we can succeed in fighting cross border crime and illicit trade is to collaborate,” Sierra Leone’s Customs Chief, Abu Martin Kanneh said, hailing the MOU as the beginning of a new era in the MRU region for customs administrations.
African trade and integration
Statement of ECA’s Acting Executive Secretary, Antonio Pedro, on Africa Industrialization Day 2022 (UNECA)
The adoption of the Agreement Establishing African Continental Free Trade Area (AfCFTA) in 2018 and its speedy entry into force in 2019 demonstrates that Africa is finally ready for takeoff. A product made in Africa will immediately benefit from the preferential, effectively duty- and quota-free, terms of access to a market of 1.3 billion people.
That is the most powerful incentive industrialists can have to invest in a manufacturing plant based in Africa. The good news is that we are seeing African industrialists being the champions of endogeneous growth and structural transformation. To achieve transformational change though we will need more of this and at larger scale.
powerful an incentive as it is, the AfCFTA Agreement alone cannot guarantee African industrialization. It needs to be implemented. And it needs to be implemented by each of its individual State Parties in such a way as to promote industrialization and sustainable development across the Continent.
There is yet another reason why industrialization is critical for Africa. Today, primary products – whether extractive or agricultural – account for the bulk of our exports to the rest of the world, while processed products dominate our imports. In far too many cases, we export the raw product and reimport the same thing in processed form – thereby exporting African jobs to others and effectively paying for the wages of foreign workers.
Between 2016 and 2021 fuels accounted for the largest share of African’s total exports, ranging from 29% to 43% in any given year, and averaging 37% over the period. At a more granular level, petroleum and petroleum-related products comprise the largest percentage.
On the other hand, Africa’s internal trade, is much more balanced. Trade in mineral fuels averages only around 20% of intra-African exports. In its place manufactured goods and food items make up a significantly larger share of intra-African trade reducing Africa’s reliance on exports of raw materials. On average, between 2016 and 2021 manufactured goods represented a 44% share of total intra-African exports. Food items likewise averaged 20% of exports over the period and showing that internally Africa is significantly less reliant on raw and extractive materials.
Industrialization is not an option for Africa; it is an imperative. Simply put, by adding value to our raw materials here on the Continent, we can convert our resources to the real blessings they are rather than allow them to continue to be a curse imposed on us. And the AfCFTA provides the best possible launch pad for African industrialization.
Joint statement by AUC, AUDA-NEPAD, UNIDO, and ECA on Africa Industrialization Day (UNECA)
Industrialization from the ground up: transforming rural spaces through agro-industry (The Patriotic Vanguard)
We have three years left in Africa’s Third Industrial decade (2016-2025) that reaffirms the importance of inclusive and sustainable industrialisation. Evidence shows that the world’s wealthiest countries are also among the most industrialized. Yet, Africa remains the world’s least industrialized region, with only one country on the entire continent, South Africa, currently categorized as industrialized. The continent has low shares in global trade and industrial output with the bulk of its exports made up of raw products and imports comprising of large amounts of higher-value finished goods.
Africa is home to 60 percent of the world’s arable land and many countries within the continent boast suitable agro-climatic conditions. This means that Africa has the potential to meet not only its own food needs, but also those of the rest of the world. However, despite huge agro-industry and agri-business potential in Africa, agricultural productivity is low and inefficient. Coupled with huge post-harvest losses whose levels are higher than the global average and growing demand mainly met by imports, it’s no wonder that food security remains a challenge on the continent.
By advancing actions to achieve Sustainable Development Goal 9, African countries can adopt sustainable industrialization, innovation and infrastructure to generate employment and income, promote new technologies, facilitate international trade and enable efficient use of resources. Specifically, agro-based industrialization can support the continent’s poverty reduction efforts by helping African countries grow jobs along the food value chain, raise incomes and close rural-urban inequality gaps
Digitalisation – enable access to cutting edge and appropriate technology through partnership and South-to-South collaboration. By using digital technologies in manufacturing, African countries can create more productive jobs, boost manufacturing and leverage the African Continental Free Trade Area (AfCFTA) with its approximately 1.2 billion consumers.
More banks join PAPSS migration race (The Nation Newspaper)
More commercial banks across Africa are currently undergoing certification integration of their processes to enable them migrate to the Pan-African Payment and Settlement System (PAPSS) which has taken off. Stanbic IBTC Bank, FirstBank, United Bank for Africa, Ghana Commercial Bank, among others are some of the key entrants to the PAPSS migration race.
The PAPSS, a centralised Financial Market Infrastructure (FMI) supports payment arrangements with the objective of expanding pan-African trade and driving African Central Bank’s economic and financial integration agenda. It was deployed for use in the West African Monetary Zone (WAMZ) in Nigeria, the Gambia, Sierra Leone, Liberia, Ghana and Guinea.
Stanbic IBTC Bank’s Chief Executive Wole Adeniyi described its first transaction on the PAPSS network as the organisation’s way of supporting intra-African trade while also supporting low-cost and risk-controlled payment, settlement, and clearing systems.
“This is a great opportunity for new and existing clients to take advantage of. The Pan-African Payment and Settlement System will enable interested individuals and businesses make cross border payments, thereby reducing, dependencies on foreign exchange and correspondent banks. Consequently, this will reduce requisite correspondent banking fees and mitigate central delays,” he added.
H.E Thabo Mbeki: Africa: Call For Action! (AllAfrica)
“It is now seven years since the world adopted the first ever target to reduce illicit financial flows, including corporate tax abuse, following the report of the AU/ECA High Level Panel on Illicit Financial Flows out of Africa. This remains of critical importance with regard to the task to strengthen global efforts in support of the Sustainable Development Goals target 16.4.
A key area identified by the High Level Panel on IFFs from Africa was the lack of an inclusive architecture for international tax cooperation. Reflecting on the continuing urgency of addressing this gap, as well as the continuing leadership of African countries, I was delighted to welcome in May of this year the ECA declaration of African Finance Ministers, which called for the immediate start of negotiations on a UN tax convention.
Such an instrument has the obligation to set ambitious global standards; to create the mechanisms for transparency and accountability to deliver on the illicit financial flows target; and to establish a globally inclusive intergovernmental tax body under UN auspices, which the G77+China has long called for.
This September, UN Secretary-General Antonio Guterres pledged his Office’s support of such negotiations. In that report he highlighted the lack of inclusivity of every single current instrument and forum that exists in relation to international tax and transparency.
I was delighted to see the African Ministers’ Declaration calling for negotiations on a UN tax convention, and the pledge of support from the UN Secretary-General. This is the obvious and necessary next step to address the global threat of illicit financial flows, including corporate tax abuse.
AfDB and AUC sign $9.73m grant agreement to drive digital market development in Africa (TechCity)
The African Union Commission (AUC) and the African Development Bank (AfDB) have signed a grant agreement to implement Phase 1 of the Upstream Project for Digital Market Development in Africa. The signing ceremony took place on November 17 at AUC Headquarters in Addis Ababa, Ethiopia. The AUC Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, Ambassador Albert M. Muchanga, and the African Development Bank’s Deputy Director General for the East Africa Region, Abul B. Kamara, signed the agreement on behalf of their institutions. The AfDB’s board of directors approved the grant of 7 million Units of Account ($ 9.73 million) in September this year. The project supports the AUC’s implementation of digital economy projects to enhance a continental single digital market. It also supports the implementation of the African Continental Free Trade Area and the Digital Transformation Strategy for Africa.
Women entrepreneurs in Africa are expressing widespread optimism and continuing resilience despite the prevailing economic climate, according to the 2022 Lionesses Business Confidence Report and Index launched on Global Women’s Entrepreneurship Day. The report, prepared by Lionesses of Africa Public Benefit Corporation and New York University finds that ninety three percent of women entrepreneurs anticipate their companies will be better off a year from now, with only 2% anticipating that their companies will be worse off. The report is funded by the African Development Bank Group, through the Affirmative Finance Action for Women in Africa (AFAWA) Initiative.
The second edition of the 2022 Lionesses Business Confidence Report and Index, comes at a critical moment, benchmarking last year’s data and evaluating African women-owned business performance, access to finance, and digital transformation. Furthermore, it allows stakeholders to learn how 100 of Africa’s top women business leaders surveyed, assess the state of their businesses and their opportunities for the upcoming year.
Knowledge-intensive services show resilience and promise in Africa (UNCTAD)
Like elsewhere, Africa’s services exports took a nosedive during the COVID-19 pandemic. International travel and related services, such as hotels and tour operators, have traditionally driven the continent’s services exports. So as the pandemic restricted travel and tourism, Africa’s total services exports fell by one third in 2020, dropping to levels last seen in 2009. Despite improvements in 2021, overall services exports from African countries remained 20% lower than in 2019. But the overall figure hides the resilience shown during and after the pandemic by particular activities within the sector: knowledge-intensive services.
These include for instance insurance and pension services, financial services, telecommunications, computer and information services, research and development, management consulting and other business services, as well as personal, cultural and recreational services. Africa’s exports of such services continued to grow during the pandemic, overtaking first transport and then travel. Globally, Africa was the region where these exports grew strongest in 2021, increasing by 17.3% compared with 16.5% in Asia, 14.2% in Latin America and the Caribbean and in Europe, and 11.2% in Northern America.
Yet Africa remains a small player globally, with a share of just 0.9% of world exports of knowledge-intensive services. Europe accounts for over half of these global exports, followed by Asia (25%) and Northern America (18%).
African exchanges facilitate cross-border investments (CAJ News Africa)
THE African Exchanges Linkage Project (AELP), which has gone live, is a milestone in facilitating cross-border trading and free movement of investments on the continent. The go-live commenced when the platform was officially launched this past Friday. The inter-connectivity platform enables the trading of exchange-listed securities across seven participating securities exchanges, for the first phase.
AELP is a flagship project of the African Securities Exchanges Association (ASEA) and the African Development Bank (AfDB).
Dr Edoh Kossi Amenounve, ASEA President, said the go-live was a great milestone towards achieving ASEA’s mission to engage African capital market ecosystems. This is in order to foster capital mobilisation, promote sustainability and enhance financial inclusion for the benefit of Africa’s economic development. Trading infrastructure harmonisation through the link is expected to ease existing trading processes and potentially reduce the cost of trading across African capital markets.
Challenges embodied in SDGs need transdisciplinary approach (University World News)
The importance of the co-creation of knowledge involving African policymakers, scientists and agricultural experts to transform African agricultural and food systems in the context of climate change, the Sustainable Development Goals (SDGs) and the Africa Agenda 2063 was emphasised during a round-table discussion on 14 November at COP27. The side event was convened under the theme, ‘Towards Resilient, Sustainable, Transformed Agriculture and Food Systems’ and was attended by regional representatives from the Common Market for Eastern and Southern Africa, COMESA, and the African Union Commission. The event explored interlinked and inter-dependencies between climate resilient agricultural practices, livelihoods and food security and highlighted a number of initiatives geared towards enhancing the adaptive capacity of the agricultural and food sector in different areas across the region.
Transforming Irrigation in Southern Africa (TISA), a project presented during the discussion by agriculture and food systems expert at the Food, Agriculture and Natural Resources Policy Analysis Network or FANRPAN, Dr Njongenhle Nyoni, aimed to optimise dysfunctional irrigation schemes into functional systems by deploying agricultural technological innovations platforms and soil monitoring tools across Southern Africa.
Winnie Odinga: EAC needs policies to govern GMO importation (The Standard)
The East African Legislative Assembly (EALA) representative for Kenya Winnie Odinga is now rallying the East African Community to unite against the introduction of GMO foods in the region. In an interview with Spice FM this morning, Winnie has called upon the community to conduct its own study on GMO saying, they are not healthy for human consumption. She also suggests the formulation of a policy that will be used as a guiding principal in the introduction of the genetically modified foods.
“GMO is not something that is good for us right now and even if it is being used as an intervention, what are we doing to further not need this intervention? it is time we start to discuss on what each country can do. This revolves around vertical farming, we cannot keep talking about irrigation, we can look at intelligence - robotics in farming,” Winnie suggested during an interview on Spice FM Monday, November 12.
According to Winnie, the East African Community (EAC) will have a voice if the member states come up with a policy from a well-researched study that will guide the way forward on how to deal with the GMO foods.
Global Gateway: First section of modernised 560km highway along the strategic Northern Corridor, inaugurated in Kenya, will boost trade in East Africa (European Commission)
Today, in Mombasa, Kenya and the European Union in the presence of Kenyan President William Ruto inaugurated the first section of an upgraded 560km highway along the Northern corridor, East Africa’s busiest trade and transport route. This is part of the EU’s wider support for the creation of eleven strategic transport corridors across Africa under the €150 billion Global Gateway EU-Africa Investment Package to boost sustainable and trusted connections, value chains, services and jobs that can benefit both Africa and Europe. This launch takes place few days before a meeting of the European and African Commissions in Brussels to jointly review progress in the implementation of transformative projects under this investment package.
The EU is supporting four wider transport projects currently ongoing to expand the northern corridor in Kenya and neighbouring countries, providing maritime access to landlocked countries such as Uganda, Rwanda, Burundi and the Democratic Republic of Congo (DRC).
The Mombasa-Kilifi highway opened today is also part of the coastal corridor, a transport route linking port cities from Dar-Es-Salaam in Tanzania, through Kenya and then moving inland to Ethiopia and South Sudan.
12 Fastest Growing Economies in Africa (Yahoo Finance)
Africa’s economy started recovering in 2021 following the disastrous consequences of the COVID-19 pandemic. Its gross domestic output increased significantly in 2021 by an estimated 6.9%. The anticipated real GDP growth for Africa in 2021 was higher than both the global average and other regions’ growth rates. Four of Africa’s top six countries had an increase in their Purchasing Managers’ Index (PMI) readings, indicating an improvement in economic activity. Egypt, Kenya, Nigeria, and South Africa’s PMI values in 2021 (which collectively accounted for 52% of Africa’s GDP in 2021) were usually over the 50-point threshold and closer to pre-pandemic levels. This comes after the continent saw a 1.6% shrinkage brought on by the pandemic in 2020. North Africa (11.7%) and East Africa (4.8%) had the fastest growth. The increase was ascribed to the recovery in oil prices and global demand as well as the uptick in household spending and investment in the majority of nations following the easing of restrictions.
IMF African Department Director Abebe Aemro Selassie thinks that the effects of the Ukraine war — primarily an increase in gasoline and food prices — would be felt by everyone. According to the World Bank, the combined consequences of the Ukraine war, massive debts, and climate change have hampered Africa’s economic progress.
African countries have tremendous economic potential with rewarding opportunities for investors. Therefore, despite so many obstacles, a number of African countries have been able to expand their economies, which was primarily made possible by advances in underlying infrastructure that accelerated the convergence of underdeveloped regions with national levels. Other countries have profited from rising oil prices.
Global economy
WTO members resume discussions on e-commerce following MC12 outcome (WTO)
WTO members kicked off discussions on 18 November on identifying specific cross-cutting issues to be addressed under the Work Programme on Electronic Commerce as a follow-up to the decision taken at the 12th Ministerial Conference (MC12) in June. WTO members agreed at MC12 to reinvigorate the Work Programme, particularly regarding its development dimension. They also agreed to maintain their current practice of not imposing customs duties on electronic transmissions and to intensify discussions on this moratorium.
Women entrepreneurs share their climb to success (UNCTAD)
Celebrating female entrepreneurship, UNCTAD on 21 November launched a publication entitled “Women in Business, building purpose-driven enterprises amid crises”. It tells the stories of 21 women from developing countries who’ve defied myriad challenges to build successful businesses and have been trained through UNCTAD’s flagship capacity-building programme, Empretec. “It is my hope that the stories of these 21 ‘Empretec champions’ and the ingenuity and resilience they display amid crises is a source of inspiration for other women and girls looking for role models and hope in these turbulent times,” UNCTAD Secretary-General Rebeca Grynspan said.
Despite some progress, women’s power in business remains limited. UNCTAD’s previous estimates showed that between 2010 and 2019, 68% of firms worldwide didn’t have any women ownership, while only 16% were owned by women. The estimates show that such underrepresentation could undercut economic growth and decent employment and that income lost due to women’s inactivity in business can reach up to 30% of GDP in countries with wide gender gaps.
Boeing forecasts major growth in air cargo demand over next 20 years (Engineering News)
Major aerospace group Boeing has predicted that global air cargo traffic will increase by 100% between now and 2041. The company has released its ‘World Air Cargo Forecast 2022’, and also predicts that, over the same period, the number of freighter aircraft in the world will increase by 60%. To meet growing demand, the global fleet of jet freighter aircraft will have to grow by more than 1 300 aircraft, to reach a total of more than 3 600 by 2041. To achieve this, plus to replace existing, older and less fuel efficient, freighters, will require the production of 2 800 freighter aircraft over the next two decades. Of these, 33% will be new-built freighter aircraft and 66% will be converted from existing airliners.
Trade Profiles 2022 (WTO)
Trade Profiles 2022 provides key data on merchandise trade and trade in commercial services for 197 economies. Each profile displays a sectoral breakdown of the economy’s exports and imports, its main trading partners and its most traded products and services.
World Tariff Profiles 2022 (WTO)
World Tariff Profiles 2022 provides comprehensive information on the tariffs and non-tariff measures imposed by over 170 countries and customs territories. It is a joint publication of the WTO, the International Trade Centre and the United Nations Conference on Trade and Development (UNCTAD).
Related News
tralac Daily News
COP27 news
Next Africa: Climate Hopes in the Balance in Last Hours of COP27 (Bloomberg)
African nations came into this month’s COP27 international climate summit in Egypt with high hopes. They may yet leave empty handed. With the event taking place on the continent for the first time since 2016, it was dubbed the “implementation COP.”
But as the event draws to a close, little progress has been made in mapping out how rich nations will honor a promise to provide $100 billion in annual climate finance for developing nations. Neither has much ground been made on honoring a pledge to double funding for adapting to changing weather by 2025.
A proposal that Africa’s “special needs and circumstances” be considered didn’t make it onto the agenda. And another to set up a facility to compensate poor nations hit by climate disasters hangs in the balance.
Progress on that issue, included on the COP agenda for the first time, has been slowed by demands from Africa and other developing regions that a separate fund be created. That’s been resisted by the industrialized world, which is wary of a slew of demands and would rather existing facilities be used.
“There is clearly a breakdown in trust between North and South, and between developed and emerging economies. This is no time for finger-pointing. The blame game is a recipe for mutually assured destruction,” António Guterres told journalists at the Sharm el-Sheikh International Conference Centre. The UN chief urged countries to deliver the kind of meaningful action that people, and the planet, so desperately need. “The world is watching and has a simple message: stand and deliver,” he underscored.
Mr. Guterres reminded world leaders that global emissions are at their highest levels in history, and climate impacts are decimating economies and societies. “The most effective way to rebuild trust is by finding an ambitious and credible agreement on loss and damage and financial support to developing countries. The time for talking on loss and damage finance is over. We need action,” he stated, urging negotiators to deliver concrete solutions to resolve one of the thorniest issues on the table at this year’s COP, or Conference of Parties, to the UN climate convention.
For the first time in the history of UN climate conferences, the issue of loss and damage has been included in the official agenda.
The creation of a new financial facility to compensate for the losses suffered by vulnerable countries hit hardest by natural disasters, is a key demand by the negotiating bloc known as the Group of the 77, which represents nearly all developing countries.
COP27: Developing Countries Call For ‘Urgent Political Will’ To Establish Loss and Damage Fund (The Wire)
As time runs out for critical decisions to be made at the 27th Conference of Parties (COP27), ministers from several developing countries called out the “worrying inaction” on the part of developed countries in establishing a loss and damage fund as promised at last year’s summit.
In an impromptu press conference on November 17 at COP27 in Sharm El-Sheikh, leaders representing the G77 and China, Alliance of Small Island States (AOSIS), Least Developed Countries (LDCs) and Independent Alliance of Latin America and the Caribbean (AILAC) said that developed countries should show the “political will” to deliver on finance for loss and damages caused by the impacts of climate change, which many developing countries are having to face despite not contributing to carbon emissions as much. Despite the late hour, they were ready to sit down and establish a consensus on this to move forward, they said.
A separate fund to meet the losses and damages caused by the impacts of climate change (including extreme weather events such as floods and droughts) in developing countries was – for the first time – included as an agenda item in the COP this year. However, there was worrying inaction on the part of some developed countries to follow this through, said ministers representing several blocs of developing countries.
African agriculture ministers attending the United Nations climate summit in Egypt reiterated a commitment to work with development partners to unlock the continent’s agriculture potential. During the special ministerial session, there was a strong consensus that Africa can feed itself if supported with green financing and climate-smart technology to boost agriculture productivity.
Kobenan Kouassi Adjoumani, Côte d’Ivoire’s Minister of Agriculture, said, “We must be sovereign in our countries’ fight against food insecurity and the best way is to find funding for agriculture. We must adapt and find solutions to our problems in the face of the disasters we have seen here and there: droughts, floods, cyclones, and so on.”
He added that disruptions associated with the war in Ukraine should provide an impetus for Africa to readapt its agriculture to achieve food sovereignty.
The European Bank for Reconstruction and Development (EBRD), the African Development Bank Group and the French development agency AFD, in partnership with the Egyptian government, have launched the Gender Equality in Climate Action Accelerator. The Accelerator will support private sector companies improve the gender responsiveness of their corporate climate governance. It will also help governments to promote gender-sensitive climate sector policies, thereby accelerating their green transition to meet Paris Agreement targets, the UNFCCC’s gender action plan and key Sustainable Development Goals.
The launch ceremony took place on Gender Day, Monday, 14 November, on the sidelines of the 27th annual global climate summit (COP27) in Sharm El-Sheikh, Egypt. It brought together global leaders, heads of development finance institutions and private sector business representatives.
Egypt has called the global community to action on gender equality in climate action, stating that now was the time to show progress on the ground.
50% of countries highly affected by climate change are in Africa: Patrick Low (GhanaWeb)
Many African countries such as Sudan, Ethiopia, Senegal, Zimbabwe, Egypt, Tunisia, Mali, Mozambique, Morocco, Mauritania, Niger, Eritrea, Algeria, Sudan, Benin, Rwanda, Chad, Kenya, and Libya have been counted among thirty (30) countries globally that are facing threats of the effect of climate change.
It is reported that these countries are being impacted by negative effects of climate change such as droughts, floods risk, storms, rising sea levels affecting low-lying areas and coastal cities, melting glaciers, water shortages, declining crop yields, especially in tropical zones, food crises, ocean acidification from rising CO2 levels among others.
These negative effects are leading to the destruction of tropical forests, forest fires, Malnutrition and heat stress, spread of vector-borne disease e.g., malaria, dengue fever etc., Physical displacement of populations and risks of mass migrations, Damage to ecosystems and species extinction, Sudden shifts in weather patterns and many more problems that are confronting humanity and the environment.
Thus, international economist and a member of tralac Advisory Board who is also a former Chief Economist at the Word Trade Center, Patrick Low has challenged African countries to seize the opportunity of the ongoing COP 27 in Egypt to concentrate on Green Growth to improve competitiveness and enhance access in big markets.
Addressing the 2022 tralac Annual Conference in Nairobi, Kenya, Patrick Low who currently serves as a fellow of the Asia Global Institute emphasized that there is the need for a clear and united African position to addressing the climate issues affecting the continent considering the fact that Africa’s population will double by 2050.
Carbon pricing: A development and trade reality check
Making trade work for climate change mitigation: The case of technical regulations
Tackling debt and climate challenges in tandem: A policy agenda
Local news
South Africa Gauge Signals Poor Start to Final-Quarter Economic Growth (Bloomberg)
An index measuring South African economic transactions fell to a 10-month low in October after a strike at the state-owned port and rail operator hobbled exports, suggesting a weak start to the final quarter. The BankservAfrica Economic Transactions Index, which tracks interbank payments, dropped to 130.7 from a revised 131 in September, signaling ongoing strain in the economy, independent economist Elize Kruger said in a statement.
Measures to restricting trade of waste scrap and metals (Devdiscourse)
Minister in the Presidency Mondli Gungubele says Cabinet has considered and approved a comprehensive package of measures to address damage to public infrastructure and the economy by restricting the trade of waste scrap and semi processed metals. The Minister hosted a briefing in Pretoria on Friday following this week’s Cabinet meeting. He said the meeting considered the policy measures to restrict trade in scrap metal to limit damage to public infrastructure and the economy.
Meanwhile, the Minister said Infrastructure South Africa, in partnership with GIZ, a German development agency, will host its third Sustainable Infrastructure Development Symposium South Africa (SIDSSA) in Cape Town, from 28 to 30 November 2022.
The Department of Science and Innovation (DSI) in South Africa has been researching green hydrogen with a focus on green mobility and the use of platinum group metals. “Cabinet approved the Hydrogen Society Roadmap earlier this year. The roadmap is one of government’s strategies and policy direction aimed at bringing together a variety of public and private stakeholders and institutions around a common vision on how to use and deploy hydrogen and hydrogen-related technologies, as part of the country’s economic development and greening objectives,” he said.
South Africa can reduce emissions and create jobs. A tough task, but doable (The Conversation)
South Africa has the dubious distinction of having one of the highest rates of unemployment and inequality in the world. It is also one of the world’s most emissions-intensive economies, measured in greenhouse gas emissions per unit of economic output. The co-existence of high unemployment and high emissions intensity is not a coincidence. South Africa’s history of segregation and apartheid has had profound implications for its development path. Choices were made that favoured investment in capital rather than labour. Economic growth was based, in part, on cheap (coal-based) energy, overlooking its high emissions.
Coal has been the dominant fuel in South Africa’s energy economy. In addition to coal-fired power, about 30% of liquid fuel supply comes from converting coal to liquid, a technology employed by the energy company Sasol. The political economy of energy supply, then, is dominated by a duopoly – the state power utility Eskom, and Sasol. Significant actors include coal mining firms upstream and electricity-intensive industry downstream. South Africa’s emission intensity (emissions per unit of output) in 2018 was 2.5 times the global average. That’s about five times higher than in the US. Four-fifths of emissions are attributable to energy supply and use.
South Africa has experienced frequent power outages since 2006. Many older coal plants have failing units mainly because of insufficient maintenance. Even the new power stations, Medupi and Kusile, have not operated consistently because of design flaws. This would suggest a compelling case to build generation capacity fast. Wind and solar photovoltaic projects have short lead times. Yet these proposals have met resistance. A programme to procure renewable energy from independent power producers is widely considered a success. Renewable energy has grown rapidly but it is still a relatively small share of electricity generated. The country needs a much faster pace of investment to achieve a just energy transition.
Trade ministry to launch free trade implementation strategy (New Era)
The industrialisation and trade ministry is scheduled to launch the National African Continental Free Trade Area (AfCFTA) Implementation Strategy and its Action Plan on 21 November 2022. The ministry will also conduct a training workshop on the status of the AfCFTA negotiations and the Women and Youth Protocol, at the Windhoek Country Club on 22 November 2022.Namibia signed the AfCFTA Agreement on 2 July 2018 and deposited the instruments of ratification on 1 February 2019. This means the country is set to participate in the AfCFTA, particularly offering opportunities for economic diversification and value chains development and expansion to achieve economic transformation.
According to ministerial spokesperson, Elijah Mukubonda the AfCFTA is integrating gender equality into states’ trade policies through their strategies for AfCFTA implementation in response to gender equality.
Farmers reap from historic maize price as crisis looms (Business Daily)
The high cost of the staple at the peak of harvesting comes as a boom to farmers but portends difficult times for consumers who have to contend with the high cost of flour. The high prices of the staple come at a time when Kenya faces one of the worst famines with more than half of the counties now crossing to the acute drought stage and 5.1 million people in need of food relief.
Whereas the selling price is impressive, the total production in the ongoing crop season is expected to drop at least three million to 34 million bags. This implies that the available stocks expected this year will last for nine months and Kenya will have to rely on cross-border imports to meet the deficit.
The decline will add pressure on available food and is likely to worsen the situation given that the traditional source markets for Kenya-Uganda and Tanzania have found alternative markets for their crop in South Sudan and the United Arab Emirates where they fetch a good price.
Rwanda-Uganda trade on the rise, new figures show (The New Times)
Rwanda and Uganda are seeing a significant surge in trade nine months after the two neighbours moved to assuage tensions, it has emerged. Trade between the two landlocked East African nations had taken a hit from three years of border inactivity before Rwanda reopened the Gatuna border crossing as ties improved.
According to new figures from Rwanda Revenue Authority, at least 160 trucks are cleared between the common borders a day, with some 1000 people crossing. EABC chief executive John Bosco Kalisa urged harmonisation of domestic taxes across the EAC region to “avoid distortion and create a level playing field for businesses”.
Duty-free GMO maize imports kick off today to tame inflation (Business Daily)
The government will from today allow the importation of duty-free genetically modified maize in renewed efforts to curb the runaway inflation that has engulfed the country. Trade Cabinet secretary Moses Kuria said yesterday that imports of duty-free GMO maize would last for the next six months in a window the State expects to net 10 million bags. The shipments are expected to plug the gap triggered by reduced harvest in the wake of prolonged drought, which pushed the cost of the staple maize flour to rise to an average of Sh190 in October for the two-kilogramme packet from Sh130 at the start of the year.
The costly maize flour together with fuel and other food items has led to Kenya’s monthly inflation rising to a 65-month high of 9.6 per cent in October, squeezing household budgets and demand for goods and services.
The increase in the cost of essential commodities has forced workers to cut back spending on non-essential items such as beer and airtime, ultimately hurting firms like East Africa Breweries Limited and Safaricom.
Ethiopia Begins Exporting Power to Kenya (East African Business Week)
Ethiopia has started exporting electricity to neighboring Kenya following a week of testing of a new transmission line, Ethiopian Electric Power said. The $500 million line has capacity to transmit 2,000 megawatts of electricity, potentially earning Ethiopia as much as $100 million annually. “Ethiopia has completed activities to ensure uninterrupted and reliable transmission of power and it is expected that similar activities will be implemented by Kenyan side,” the company said in an emailed statement.
Egypt-AU bilateral trade jumps 38% in 2021 – CAPMAS (ZAWYA)
The trade exchange value between Egypt and the African Union (AU) member countries hiked by 38.20% year-on-year (YoY) in 2021.Egypt exported goods to the AU states at a value of $5.48 billion in 2021, an annual leap of 37.70% from $3.98 billion, according to the Central Agency for Public Mobilization and Statistics (CAPMAS).
Meanwhile, the Arab Republic’s imports from the AU nations jumped by 39.40% to $1.99 billion in 2021, compared to $1.43 billion in 2020.
African trade and integration
Africans advised to leverage on AfCFTA and trade in basic agric products to ensure food security (GhanaWeb)
Secretary General of the African Continental Free Trade Area (AfCFTA), H.E. Wamkele Mene is advising Africans to develop agricultural food value chains, eliminate tariffs and non-tariff barriers to trade in basic agricultural products and take advantage of the AfCFTA to achieve food security in Africa and uplift smallholder farmers and place them along the value chain of agriculture and agro-processing.
Speaking to International Economists and Trade Lawyers at the 2022 annual tralac conference held in Nairobi, Kenya, the AfCFTA Secretary General recounted the COVID-19 pandemic, and the recent conflict situation between Russia and Ukraine as an eye-opener for Africa that should galvanized African governments, since 30% inflation has resulted from the Russia-Ukraine conflict alone, leading to food insecurity in Africa as there is about 70% reliance on grains from Ukraine and Russia in spite of the fact Africa has over 60% of the world’s arable land.
“These two events are indeed in terms of magnitude have compelled the African Continent to rethink its place in the global order and to rethink how trade can be deployed to respond to such prices”.
African Women Entrepreneurs Call for Support of Africa Free Trade (VOA)
African women entrepreneurs from 35 countries have called for more support from lenders and governments to help them benefit from the African Continental Free Trade Area. Meeting in Cameroon’s capital for the U.N.-sponsored African Women Entrepreneur Forum, the women say their businesses are mostly small, informal, and suffer discrimination.
Former Interim President of the Central African Republic Catherine Samba-Panza spoke Wednesday night at the forum. She said many women are missing out on the opportunities of trade integration because their small businesses have low productivity and get little or no funding from governments and lenders. Women entrepreneurs say they often face harassment and discrimination in Africa’s male-dominated trade.
Bissso Nakatuma says women who want to export their farm produce and benefit from opportunities offered by the African Continental Free Trade Area are targeted by customs and police officers who want bribes. Nakatuma says women are forced to depend on their families and communities to fund their businesses because banks refuse to give loans to female investors.
ATEX, a boost for intra-Africa trade (UNECA)
African countries should use the innovative Africa Exchange Trade Platform (ATEX) and boost digital trade in critical commodities under the Africa Continental Free Trade Area (AfCFTA). ATEX is a digital business-to-business (B2B) and business-to-government (B2G) exchange platform developed by ECA and the African Export-Import Bank (Afreximbank), in collaboration with the African Union Commission and the AfCFTA Secretariat.
“ATEX will certainly avail access to essential commodities at affordable prices to African countries that look set to be hit the hardest by the global food price crisis with severe implications on economic and political stability,” Ms. Hanan Morsy, Deputy Executive Secretary and Chief Economist of the United Nations Economic Commission for Africa (ECA) said at the presentation of the Africa Exchange Trade Platform (ATEX) on the sidelines of COP27 at Sharm El Sheikh, Egypt.
Opening the discussion session on “Finance for climate resilient trade and Africa Trade Exchange ATEX: Pathways toward a Greener Africa”, DES Morsy emphasized that the ATEX platform was an opportunity for African countries to collaborate in boosting commodity trade as a response to the multiple challenges of climate, fertilizer and food crisis.
Opening the discussion session on “Finance for climate resilient trade and Africa Trade Exchange ATEX: Pathways toward a Greener Africa”, DES Morsy emphasized that the ATEX platform was an opportunity for African countries to collaborate in boosting commodity trade as a response to the multiple challenges of climate, fertilizer and food crisis.
“Africa needs to leverage the AfCFTA and available climate financing to enhance the resilience of the African food system and mitigate vulnerability to disruptions in global food supply,” said Ms. Morsy.
Standard Bank Launches Second Edition of Africa Trade Barometer (East African Business Week)
Standard Bank has shared the results of the second edition of its Africa Trade Barometer. Two quarters after the inaugural edition, the second edition of the Africa Trade Barometer tracks changes, both favourable and otherwise, in the opinions of businesses trading in and between 10 African economies. “The ability to report changing sentiment over time will position the Africa Trade Barometer as the continent’s leading trade and tradability insight tool, both for African businesses as well as those seeking to do business with Africa,” says Philip Myburgh, Head of Trade and Africa-China at Standard Bank
Themes examined include views on growth prospects, business confidence as well as opportunities and challenges. Survey results also report on current performance, Covid-19 impact and sentiment on future business investment. In addition, the Africa Trade Barometer shares the views of businesses involved in Africa-China trade and, while recording the impact of the African Continental Free Trade Area Agreement, also details the effects of non-tariff barriers.
The second edition also highlights the strong link between effective governance and business confidence and growth.
Rwanda among countries to pilot single air space market (The New Times)
Rwanda has been chosen among 17 countries that are set to participate in an implementation pilot project of the Single African Air Transport Market (SAATM). The development, experts say, adds momentum to Africa’s bid for open skies. According to the African Civil Aviation Commission (AFCAC), the selected countries fulfill “necessary requirements.”
Speaking to The New Times in an exclusive interview, Emmanuel Butera, Consumer Protection Specialist at AFCAC, said Rwanda’s investment in the air transport industry will bear fruit as the national carrier, RwandAir, expands.
Provided there is reduction in the cost of travel with the implementation of SAATM, Butera argues, RwandAir could use the chance for route network expansion.
“This implies that free movement of goods and services across borders of member states hence a wider, harmonized, and more competitive African market,” he added.
EAC needs to tap into commercial agriculture to address food security, Lobby group affirms (Garowe Online)
The East African Business Council (EABC) has called upon the heads of state within the East Africa Community region to embrace commercial agriculture in order to address food insecurity facing the region. According to John Kalisa, EABC -Chief Executive Officer, the agricultural sector saved the EAC from recession during the height of Covid-19. Mr. Kalisa was addressing the Comprehensive Africa Agriculture Development Programme (CAADP) forum in a virtual meeting held on Wednesday. He further added that the sector has not attracted much investment to match its critical role in the economy of the region. The EAC countries were also urged to ensure their agricultural development programs were compliant with CAADP principles.
Mr. Kalisa “EAC partner states should enhance investment financing in agriculture “to boost food production, supply, and trade.”
African e-commerce growth holds opportunities, but also challenges for brands (Engineering News)
Commercial brands operating in Africa can use e-commerce platforms and logistics chains to diversify their businesses to better serve their customers, but this requires that they are able to manage the quality of the experience over any communications and delivery channels they use, cloud communications platform company Infobip’s executives shared during a roundtable discussion on November 17. Africa has a growing and youthful population and growing penetration of mobile and digital devices and connectivity throughout the continent. With this growth, there is significant potential for the region, said Infobip Africa go-to-market manager Jeremy Osborne.
The joint Intergovernmental Committee of Senior Officials and Experts meeting organised by two offices of the UN Economic Commission for Africa (ECA) in Central and Eastern Africa, in collaboration with the Government of Seychelles was held (ICSOE) on 15-17 November in Mahe Seychelles.
A diversified approach to our economies will help African countries navigate a variety of different environments,” says Jean Luc Mastaki, acting Director of ECA in Central Africa, while discussing the uncertainty around the current inflationary scenario. Mama Keita, Director of ECA in Eastern Africa also stressed that “Diversification can stand a better chance of delivering resilient economies and better performance in changing and unstable environments”.
The meeting was held under the theme “Strengthening resilience, economic growth and diversification in a context of instability and shocks: the role of Special Economic Zones, innovative financing, tourism and the African Continental Free Trade Area (AfCFTA).”
Protecting nature to drive development: how Africa can be a nature-positive superpower (CNBCAfrica)
With an abundance of land, natural capital and a growing, young population, Africa is undoubtedly the nature-positive economic superpower of the world. The protection of Africa’s nature could drive development across the entire continent. A nature-positive economy is regenerative and brings widespread economic opportunity including youth employment while protecting biodiversity. With access to the global voluntary carbon market; valuing and commercializing nature assets could unlock new financing opportunities for development for the Africa. This market, operating with integrity, equity and transparency, could help Africa deliver on three fronts: nature, climate and development.
West Africa’s climate strategy breaks new ground but is vague (Eco-Business)
“In building climate-resilient communities, the strategy failed to indicate institutional frameworks for implementation, mentioning only partners and/or stakeholders… The text needs improvement [on this front],” Sambou told China Dialogue. “It is also necessary to have an ECOWAS climate secretariat to ensure effective and efficient implementation.”
Eguegu points out that the strategy does not specifically address the problems caused by climate change in the region. Rather, attention is paid to bureaucratic issues such as partnership and competence building.
While the ECOWAS Regional Climate Strategy falls short on a number of fronts, it has for the first time brought all 15 member states of the bloc onto one page in responding to climate change.
Global economy
UN chief welcomes renewal of Black Sea Grain Initiative (UN News)
More than 11.1 million tonnes of essential foodstuffs have been shipped as part of the agreement involving Türkiye, Ukraine, Russia and the United Nations, since it was signed on 22 July. Speaking from Cairo, where Mr. Guterres was en route from the G20 summit in Bali to the COP 27 climate conference in Sharm el Sheikh, he said in a video tweet that he was “deeply moved” and grateful that an agreement had been reached in Istanbul. The UN chief also expressed his deep commitment to remove the “remaining obstacles to the unimpeded exports of Russian food and fertilizers”, as these remain “essential” to avoid a food crisis next year.
India has the best international trade prospects among top 10 economies: S&P (Business Insider India)
Among the group of top 10 economies, the most positive prospects in terms of international trade are related to India and the country does not seem to be impacted by the global economic slowdown to a large extent, S&P Global Market Intelligence said in its latest Global Trade Monitor report. The top 10 economies by GDP in 202, according to the report, include the US, EU27, mainland China, Japan, the UK, India, Brazil, South Korea, Canada, and Russia. These countries are responsible for approximately four-fifths of the world GDP and three-quarters of global exports, with most trade carried out within the group. The section in the report on expectations for international trade in the next months said the global economic slowdown now is more and more visible.
The consequences of the global economic slowdown are not that apparent in the monthly data for 2022 as in the first three quarters of the year, the dynamics of exports and imports were relatively strong in the top 10 economies.
“This should translate in still positive growth in 2022 from the yearly perspective, yet in 2023 global trade contraction may be expected. GTAS Forecasting expects trade recovery to start in 2024, returning to the long-term stable growth path,” it added.
Slumping freight rates struggle to entice more containerized metal trade (Fastmarkets news)
Shipping markets throughout 2021 were characterized by stronger demand causing an acute shortage of boxes, leading to a sharp rise in freight costs for metal market participants.
But the tide has changed dramatically in the second half of 2022, with global shipping giant Maersk noting last week that rising inflation has led to consumers spending less on “non-discretionary items such as furniture and home appliances. “Container head haul and regional export volumes fell by 9.3% year on year in September, according to Container Trade Statistics, as quoted by key shipping industry body BIMCO. Volumes into North America fell by 20.6% year on year in the same month.
Empty containers are now piling up in port depots, according to various media reports, and although metal market participants are experiencing far greater ease in obtaining boxes, they are being prevented from taking full advantage of the situation by the low demand for metals.
What If Deglobalization Is Good for Emerging Markets? (Bloomberg)
Four trends are set to shape the world in the decades ahead: energy cost differentials, rising wages in China, nearshoring supply chains, and remote work. For emerging countries with the right natural resources and institutions, that means an opportunity to accelerate up the income ladder. Potential beneficiaries include Argentina, Colombia, and Mexico, as well as Malaysia and the Philippines. Why these countries? They combine most of the ingredients of success: access to cheap energy, an abundant labor force, free trade with large parts of the global economy, and the ability to attract talent.
Will the World Trade Organisation pass the COVID “test”? (Observer Research Foundation)
The TRIPS Agreement aims at establishing minimum standards of intellectual property rights, with a scope covering all products and processes in all technologies. The length of patent protection is 20 years with exceptions limited to very specific cases. Provisions in the agreement that protect intellectual property are specific, binding, and actionable.
The Agreement has been controversial from its very origin, particularly in the health context, because it was designed primarily to benefit Big Pharma and other industries and their patent regimes.
More than two decades after the WTO’s Doha Round, the TRIPS Agreement has come into effect even for the least developed countries, who were, at that time,given a waiver during a grace implementation period of over a decade.
A key question today is whether the WTO can pass the COVID-19 “test”, which, by all serious accounts, it has, thus far, failed. This is most clearly evidenced by the dilution of the joint India–South Africa TRIPS waiver proposal (October 2020), which relied on Article IX of the WTO Agreement to address shortages of products required for the prevention, control, and treatment of COVID-19. This proposal, made to the WTO TRIPS Council, suggested that the application of certain provisions of the TRIPS Agreement be waived for the duration of the pandemic to facilitate wider access to technologies necessary for the production of vaccines and medicines.
Related News
tralac Daily News
COP27 updates
COP27 draft leaves out pledge to phase down all fossil fuels (Engineering News)
Countries negotiating at the climate summit in Egypt are on track to reject calls for phasing down the use of all fossil fuels, snuffing efforts by India and key developed nations to target oil and gas as well as coal in an overarching deal at COP27.
The Egyptian presidency published the first draft of its so-called “cover decision” and largely kept last year’s pledge made at Glasgow to “accelerate measures towards the phase down of unabated coal power” and phase out fossil fuel subsidies. It also stuck with a commitment to keep global warming to 1.5 ºC. It highlighted that countries are currently falling well short on meeting the climate finance needs of developing countries.
Adapting to a Changing Climate: How Trade and Trade Policy Can Make a Difference (Trade for Development News)
The climate community is now in its second week of talks in Sharm el-Sheikh, Egypt, for the UN climate talks, looking to marshal higher ambition towards tackling climate change and the factors that drive it, while encouraging greater efforts and finance towards helping countries adapt to the impacts of climate change and reduce their vulnerability. This is a conversation that cannot stay just within the boundaries of the climate community: it can, and should, bring in actors from other policy fields, including from trade.
Traditionally, the trade policy community’s focus when developing responses to the climate crisis has been on climate mitigation. This usually means looking at how trade policy measures, from unilateral approaches to trade agreements, can help in curbing greenhouse gas emissions and encouraging a move to more sustainable production processes and methods. Liberalizing trade in environmental goods and services, putting in place border carbon adjustment mechanisms to address the risk of climate leakage, and tackling fossil fuel subsidies are all topics that recur in these policy debates and where extensive work has taken place over decades.
While these are crucial conversations, there is much more that trade policy can and should do. Trade can also help governments adapt to the climate change impacts that they are already facing, while building their resilience and preparing for those impacts still to come.
Germany has committed €40 million to the African Development Bank Group’s Climate Action Window, German State Secretary for Economic Cooperation and Development Jochen Flasbarth has announced. Flasbarth commended the African Development Bank Group for what he said was its relentless commitment to help Africa mitigate and adapt to climate change.
SEATINI makes recommendations on transition from fossil fuels to renewable energy (Independent)
Africa needs to find its own solutions to find a win in transiting from the use of fossil fuels to renewable energy sources. This is the summary of the paper titled; “Understanding of the energy transition from an Afrocentric perspective,” written by Brendah Akankunda, Jane Nalunga and Judith Muvara, from Southern and Eastern Africa Trade Information and Negotiations Institute (SEATINI Uganda).
Climate activists continue to discourage the use of fossil fuels like coal, natural gas and oil, arguing that they are a danger to the environment. They encourage the use of renewable energy that is; hydropower, solar and wind which are environmentally friendly.
“Many private energy investors are not interested in investing within the rural areas owing to questions about the rate of return on investment. Without state intervention, such areas may never access electricity despite Africa’s promising potential for the exploitation of a wide range of renewable energy resources for energy production and the provision of energy services,” the paper adds.
COP27 Africa Day - Climate Actions and Africa’s Responses for a Just and Sustainable Transition (AU)
“Implementation of Climate Actions and Africa’s Responses for a Just and Sustainable Transition” was the theme for the Africa Day held on the margins of the ongoing Twenty-Seventh Session of the Conference of the Parties (COP27) to the United Nations Framework Convention on Climate Change (UNFCCC) in Sharm El Sheikh, Egypt.
In his remarks, during the high level segment of Africa Day held on 8 November 2022, H.E Moussa Faki Mahamat, Chairperson of the African Union Commission highlighted climate justice as a key pillar for the success of climate negotiation and frameworks such as the Great Green Wall Initiative; the AU Climate Change and Resilient Development Strategy and Action Plan 2022-2032; the Green Recovery Action Plan in shaping the Common African Position.
The African Development Bank President, Dr. Akinwumi Adesina highlighted the importance of adapting to climate change to unlock agriculture potential. In this regard he highlighted that the AfDB was scaling-up adaption finance, providing farmers with climate-resilient technologies and providing support to the youth to adapt to climate change.
In his statement, Mr. Antonio Pedro, Acting Executive Secretary for the United Nations Economic Commission for Africa called upon all relevant stakeholders to increase green finance flows to Africa by supporting already established green finance facilities by increasing the capital available to regional development banks
Africa’s dash for gas sparks debate at climate summit in Egypt (BBC News)
On Gender Day African Development Bank rallies global support for women to build climate resilience (AfDB)
Former Irish president Mary Robinson headlined a panel discussion to mark ‘Gender Day’ at the 27th United Nations Climate Change Conference (COP27) in Egypt. She called for a bespoke climate fund to support grassroots women to tackle climate change and build resilience. The African Development Bank organized the session held during COP27 in Sharm El Sheikh under the theme, Gender Sensitive and climate just finance mechanisms. The panelists said facilities tailored to supporting women, who are helping to build climate resilience, must be visible, simple, and easily accessible.
“There is a problem about the visibility, transparency and accountability, and although there is some money floating around, we don’t have a properly dedicated climate fund or a permanent climate fund to support women entrepreneurs in combating climate change,” Robinson said.
Protecting biodiversity is protecting the Paris Agreement (UN News)
The UN Environment Programme ( UNEP ) explains that the loss of biodiversity is already significantly affecting regional and global changes in climate. Four of the key architects of the Paris Agreement, including former UN climate change chief Christiana Figueres, have officially asked world leaders to deliver an ‘ambitious and transformative’ global biodiversity agreement in the upcoming COP15 on biodiversity.
How climate-induced disasters are creating a new dynamic of migration (Down to Earth Magazine)
Which weather characteristics affect agricultural and food trade the most? (Science Daily)
Climate-hit nations have little time to fix food supply, UN says (Engineering News)
Vulnerable countries in Africa, Asia and Latin America have less than a decade to install early-warning systems and diversify the crops they grow before the growing “loss and damage” from climate change outstrips their financial ability to tackle it, a United Nations food agency official said. While “the solutions are all out there,” which also include climate-smart agriculture and information technology to connect with people at risk, governments need to enable an environment where these can “go to scale” and be accessible, especially to the most vulnerable, said Gernot Laganda, director of climate and disaster risk reduction with the World Food Programme.
Local news
Improving Productivity in South African Companies Aids in Decent Employment and Economic Growth (the dtic)
The Work Place Challenge (WPC) Programme makes a direct contribution to the achievement of decent employment through inclusive economic growth. This is according to the Director of Skills for the Economy at the Department of Trade, Industry and Competition (the dtic), Ms Shanaaz Ebrahim. She was speaking during the Mpumalanga leg of the milestone workshops for the programme. Ebrahim said the 24-year-old programme has grown to support more than 1 300 enterprises from a mere 46 on inception and has managed to sustain over 50 000 jobs through various interventions.
“It is important for the country to intensify all efforts at dealing with unemployment especially among young people in the country,” she said. She added that government’s Reimagined Industrial Development and Economic Recovery Plan was one of the critical strategies in place to deal with some of the country’s persisting problems of poverty, lack of skills and unemployment.
President Ramaphosa holds bilateral meetings at G20 summit (SAnews)
President Cyril Ramaphosa has concluded his participation in the G20 Leaders’ Summit held in Bali, Indonesia, this week. He was accompanied by Minister of International Relations and Cooperation, Dr Naledi Pandor, and Finance Minister Enoch Godongwana
The summit brought together 20 of the world’s leading economies to discuss challenges currently plaguing the world.
According to the Presidency, President Ramaphosa held bilateral discussions with several countries on the sidelines of the summit. “On Tuesday…President Ramaphosa held a bilateral meeting with the President of the Peoples Republic of China, His Excellency President Xi Jinping, where the two leaders affirmed the special strategic relationship between the two countries. The nations committed to grow the blossoming relationship with increased Chinese investment in infrastructure and bilateral trade,” the Presidency said in a statement.
The two presidents also discussed issues of climate change, the BRICS group of countries and support for the African Union to become a permanent member of the G20.
On Thursday, President Ramaphosa and Prime Minister of the Kingdom of Netherlands, Mark Rutte, met for a bilateral meeting. President Ramaphosa also met with Singapore’s Prime Minister Lee Hsien Loong where the deepening of trade relations between the two countries was discussed.
Kenya to lose Sh20 billion in horticulture earnings on biting drought (Business Daily)
Kenya is projected to lose at least Sh20 billion in horticulture earnings this year on the back of drought, lower production and the post-harvest losses brought about by poor handling. Head of Horticulture Directorate Benjamin Tito said the earnings this year would drop to Sh130 billion compared to last year when Kenya recorded an impressive Sh150 billion. The earnings will also be weighed down by the interception of Kenya’s produce due to pesticides exceeding the required limits.
“This year we could be having a shortfall of Sh20 billion in earnings as a result of a number of factors, which include drought,” said Mr Tito. This comes even as Kenya loses an estimated 40 percent of the produce to post-harvest losses, according to the European Union (EU) chief technical officer for Market Access Upgrade Programme (Markup) Stefano Sedola.
“We want Kenya to export more and one of the things that we are doing is to address the issues of interception on Kenyan produce, which we are doing through the Markup programme.
Poor policies discrepancies setback to rail evolution – FG (Daily Sun)
The Federal Government of Nigeria has said that the evolution of rail transport in the country has suffered setbacks owing to irregular policies and discrepancies from the previous administration.
Before the inception of the present Administration, the full implementation of the railway vision plan has always suffered setbacks due to discrepancies in Government policies, inadequate funding of the rail sector, absence of adequate, capable and experienced Private Investors amongst others,
The Minister of Transportation, Mu’azu Jaji Sambo, further said that it is only President Mohammadu Buhari’s Administration that has taken railway development as one of its cardinal projects to ensure that it actualises its Infrastructure Development Master Plan.
Construction completed on Nigeria’s $1.5 billion Lekki Deep Sea Port (CNN)
Lagos, Nigeria’s commercial center, has a storage problem. At the West African trade hub’s shipping terminals, projected demand for container space far outstrips capacity. To narrow the gap, the state has embarked on one of the region’s most ambitious infrastructure projects, Lekki Deep Sea Port. Construction of the $1.5 billion port, located east of Lagos city, was recently completed, designed to handle the equivalent of 2.7 million 20-foot-long container units a year.
The port arrives at an important time for Nigeria’s economic outlook. According to the African Development Bank Group, the country’s economy is projected to grow at a decelerated rate of 3.2% in 2022-2024, while the oil sector has contracted amid low production and inflation is close to 17%.
Ondo Port will play vital role in country’s economy – Oyebanji (WITHIN NIGERIA)
Gov. Biodun Oyebanji of Ekiti, says the Ondo Sea Port is expected to play a role in contributing significantly to developing the state’s economy and its neighbouring states. Oyebanji who was represented by the Special Assistant (SA) to the governor on Budget and Planning, Mr Oyeniyi Adebayo, said this at the ongoing Nigeria Diaspora Investment Summit (NDIS). The News Agency of Nigeria (NAN) reports that the event is organised by the Nigerians in the Diaspora Commision (NiDCOM) in partnership with Nigerian Diaspora Summit Initiative (NDSI).
The fifth edition of the NDIS holding at the Conference Center, Presidential Villa Abuja has as its theme: “Optimising Investment Opportunities for National Development”.
African trade and integration
AfCFTA – The environmental case for continental Africa free trade area (Sierra Leone Telegraph)
The climate talks (COP27) in Sharm El-Sheikh, Egypt this November come at a time when momentum on the African Continental Free Trade Area (AfCFTA) is picking up with the recent launch of the guided trade initiative – an initial pilot of eight African countries trading under the treaty’s preferential terms. The AfCFTA seeks to create a single market of 1.3 billion people, with an estimated GDP of $2.6 trillion. According to the World Bank, it could lift 30 million people from extreme poverty. At the same time, in a recent interview with Africa Renewal, Akinwumi Adesina, the President of the African Development Bank, maintains that since COP27 is Africa’s COP, it must address Africa’s climate challenges. From an AfCFTA perspective, what might an African-led response to climate change look like?
To achieve sustainable development, Africa needs to quicken the pace of industrialisation and reduce its reliance on manufactured imports. Studies repeatedly show that the manufacturing sector will be the main beneficiary of the AfCFTA.
Africa accounts for only a tiny share of greenhouse gases (GHG) emissions – at below 4% – yet, as acknowledged by the 2022 Intergovernmental Panel on Climate Change (IPCC) Report, the African continental will be most negatively affected by climate change.
With the dramatic growth of global trade since the 1950s, demand across the world for increased choice and variety of goods and services knows few limits. For instance, air transport for low-value perishable goods has become economically viable.
The UN Economic Commission for Africa (ECA) hosts a celebration for Africa Statistics Day 2022 on the theme “Strengthening data system by modernizing the production and use of agricultural statistics with a view of informing policies to improve resilience in agriculture, nutrition, and food security on the African Continent.” The event is organized in collaboration with the African Development Bank (AfDB), the African Union Commission (AUC), and the Food and Agricultural Organization of the UN (FAO).
Africa-China Alliance for Poverty Alleviation established to promote China-Africa cooperation on development in the new era (Global Times)
The Africa-China Alliance for Poverty Alleviation was established on November 10, 2022. It is an important platform to promote China-Africa cooperation on poverty reduction and development in the new era as well as share China’s experience in poverty reduction for African countries, which will inject new impetus to promote the building of the China-Africa community with a shared future in the new era. During the inaugural ceremony of the Alliance held in Beijing, the participants discussed topics such as food security, employment and green development under the impact of the COVID-19 pandemic. The delegates unanimously said that eliminating poverty and achieving sustainable development is the common wish of Chinese and African people, and is an important area in the practical China-Africa cooperation.
With the help of e-commerce and other forms of digital information cooperation, China will promote the export of African agricultural products to China, and continue to expand the visibility and reputation of African products through shopping activities, Liu noted.
Global economy
France insists African Union should have a seat at the G20 table (RFI)
The French president also announced he will hold an international conference in June on a new financial pact with the South, insisting that “we must not ask these countries to support multilateralism if it is not able to respond to their vital emergencies”. This will include taking stock of the reallocation of International Monetary Fund ( IMF ) special drawing rights (SDR) from rich countries to poorer countries.
India pledges ‘inclusive, ambitious, action-oriented’ G20 as it assumes presidency (Arab News)
‘Bridges across digital divides’ needed to boost development, Guterres tells G20 (UN News)
“This calls for more connectivity; and less digital fragmentation. More bridges across digital divides; and fewer barriers. Greater autonomy for ordinary people; less abuse and disinformation”, Secretary-General António Guterres underscored during a session devoted to the theme of Digital Transformation.
From the suppression of free speech to malicious interference across borders, and the online targeting of women, he spelled out that “without guidance and guardrails”, digital technology has “a huge potential for harm”. To counter this, he proposed that during the UN Summit of the Future, in September 2024, governments should endorse a Global Digital Compact for an “open, free, inclusive and secure digital future for all” – with input from technology companies, civil society, academia and others.
G20: Prioritise universal connectivity for all businesses (WEF)
Global flows: The ties that bind in an interconnected world (McKinsey & Company)
Asia–Pacific, including China, is the leading global manufacturing exporter overall and the largest supplier of electronics, but it imports more than 25 percent of its energy resource needs as well as critical intermediate goods. The research is based on a comprehensive assessment of trade (30 global value chains spanning resources, manufactured goods, and services), capital, people, and intangibles flows as well as an analysis of about 6,000 globally traded products.
Ground-breaking report draws first overall picture of global wildlife trade (CITES)
The CITES Secretariat has published the first-ever World Wildlife Trade Report, that gives insights and analysis into the global trade in animals and plants that are regulated under this international treaty. CITES is the Convention on International Trade in Endangered Species of Wild Fauna and Flora and it regulates trade in nearly 40,000 species, worldwide. 183 of the world’s governments (and also the European Union) have agreed to be bound by its terms, that aim to stop international trade becoming a threat to the viability of any species it lists.
The report draws on millions of records, with more than 1.2 million CITES trade permits issued every year. Over 80 pages, it looks into a wide range of trade topics. It is the first report of its kind that is designed to help inform conservation policies and practices for governments, organisations, businesses and trade bodies as well as the media and general public. It will also contribute to CITES’ global vision, which is that by 2030, all trade in listed species should be legal, traceable and sustainable. The report is having its official launch as part of the World Wildlife Conference or CITES CoP19, which is on this month, in Panama, from November 14 to 25.
While commercial international trade in roughly 3% of all species protected by the treaty, namely those included in Appendix I and considered endangered, is generally prohibited, commercial international trade in the rest of the 97% of the species is allowed, provided that all relevant rules are respected. These species, regulated by CITES, include, among others, high value marine fish and timber species. The majority of the nearly 40,000 under its trade control regime is plants.
The report also reveals that positive impacts of well-managed trade in CITES-listed species on traded species include population increase, population stabilization, population maintenance and reduced pressure on wild population. The study also identified a wide variety of socio-economic impacts, ranging from macro-economic impacts such as contributions to GDP, to local level impacts such as Income generation, improved nutrition or strengthened rights. The conservation impacts are deeply intertwined with the socioeconomic benefits that are generated – the latter often providing the incentive for the former.
Why more countries should adopt digitalization to curb illicit trade in endangered species (UNCTAD)
Earlier this year, UN Secretary-General António Guterres called on world leaders to end the “senseless and suicidal war against nature”. Technological advancements have now created solutions to help stop this war and improve humanity’s relationship with the natural world. Digital technology exists to help us to know what is happening in the world and making better informed decisions about how-to live-in harmony with our rich but fragile ecosystems.
Take wildlife trade for example. Much has changed since the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) came into force in the early 1970s to prevent the world’s commercially traded wildlife species from becoming extinct. Back then, many people were unaware of many of the species in faraway places, or how their purchasing decisions may have reverberating effects on them.
CITES regulates and controls trade in various species of animals and plants, according to their status in the wild, with strict restrictions against commercial trade in endangered species while allowing a controlled and monitored approach for others. The process to regulate the export or import requires both transparency and rigour at the borders to allow legal trade to proceed while preventing illicit wildlife trade. However, for many countries – exporters and importers alike – border control may still be a human-intensive process and the paperwork to process the transfer of species from one territory to another is done by hand.
As countries implement the national single window approach for trade controls in general, some countries are digitalizing this process. The recent COVID-19 pandemic has also posed challenges for in-person trade processes, which also accelerated countries looking into the automation of trade permitting.
Related News
tralac Daily News
COP27 updates
Afreximbank asserts Africa’s common position at COP27 (Afreximbank)
The hosting of the COP27 conference in Africa signifies a unique opportunity for the continent to assert its needs, challenges and outlooks, and most significantly to drive the African Position on just transition. Historically this conference, focused on climate change and its humanitarian ramifications, has marginalized Africa – whose contribution to humanity’s carbon footprint is minimal but whose people are suffering disproportionately from its effects. But with this year’s gathering of world leaders occurring in Egypt’s Sharm El Sheikh, it is vital that Africa’s authentic voice is heard – this is the overriding purpose of Afreximbank’s mission at COP27. By inserting and asserting our perspective in the global climate change debate, we want to promote a mainstream African position, as a key stakeholder region.
Africa’s situation, and therefore the position articulated by Afreximbank, diverges from those of many other regional blocs, particularly in the more prosperous Global North. This continent’s long-term sustainable development agenda, which relies on traditional energy sources, is impeded by the ongoing campaign towards zero-carbon emissions, and the short-term livelihoods of millions of Africans are imperiled by a headlong rush towards net-zero.
With this in mind, Afreximbank’s participation in COP27 revolves around three core elements: an accelerated implementation of the African Continental Free Trade Agreement AfCFTA, which can reduce the continent’s reliance on carbon-intensive imports; the fostering of partnerships to promote an energy transition model that is more globally inclusive; and the
The Board of Directors of the African Development Bank Group today approved an equity investment of $20 million in Evolution Fund III, a pan-African clean and sustainable energy private equity fund that is mobilising about $400 million into renewable energy and resource-efficiency assets across sub-Saharan Africa over a 10-year period. Inspired Evolution Investment Management is a well-established fund manager with more than 15 years of experience and a track record of deploying more than $310 million in renewable energy projects in African counties. The fund manager, through its predecessor funds, has delivered 21 renewable energy projects with a total generation capacity of 2 GW.
Oil and gas industry presence looms over U.N. COP27 climate talks (Grid)
International negotiators have gathered here for the annual United Nations climate conference known as COP27 amid nearly unprecedented turmoil and uncertainty. Following the upheaval of a pandemic, Russia’s invasion of Ukraine has thrown global energy markets into chaos, and the dramatic ambition needed to meet the global climate change challenge was at best on shaky ground. Even still, the talks playing host to a fossil fuel revival was likely not on anyone’s bingo card.
“This should not be a fossil fuel trade show,” David Tong, the global industry campaign manager at nonprofit Oil Change International, told Grid on Monday.
Negotiations toward a new global climate agreement continue this week, focused in theory on making bigger cuts and on securing massive amounts of funding for developing countries to address the impacts of warming, but the presence of the fossil fuel industry has been inescapable. The industry has increased its lobbying presence, there are whispers that the eventual diplomatic agreements will fail to even mention coal and oil and gas, and reports proliferate on the energy sources’ continued global expansion.
Gas utilities look to hydrogen, renewables integration while facing ‘existential threat’ of decarbonization (Utility Dive)
Gas utilities face a dilemma as they try to balance affordability relative to electric alternatives with the need to decarbonize, said Moody’s. Their long-term advantage, however, may be the sheer volume of energy delivered. “LDCs can reduce emissions in a number of different ways, many of which would incur additional costs that would be borne by end users,” Moody’s said. That could lead to additional scrutiny from regulators and make them less competitive with electric alternatives. However, LDCs have a “key strategic advantage,” said Moody’s. They can “reliably deliver a significant amount of energy on demand that may be extraordinarily expensive to replace.” “This creates a substantial barrier to replacing them, although this may vary materially by region,” the ratings agency said.
Decarbonising international shipping: At COP 27, European Commission provides additional €10 million (European Commission)
In the margins of COP27, the European Commission today announced an additional €10 million for a project to reduce international shipping’s greenhouse gas (GHG) emissions.
The projects involved port energy-efficiency assessments, equipping port vessels with solar power, and establishing data collection systems for ship GHG emissions.This project is part of the EU Global Gateway strategy, Europe’s offer for connecting the world through sustainable investments and reliable partnerships, boosting smart, clean, and secure links in the world, including in the transport sector, for instance with the external dimension of the EU Sustainable and smart mobility strategy.
The new funding makes possible a second phase of the project, focusing on portside energy efficiency measures.
Countries pledge added support to GEF funds for urgent climate adaptation (Global Environment Facility)
In an important injection of support to countries facing the worst effects of climate change, eight donor governments pledged new funding for the Least Developed Countries Fund (LDCF) and Special Climate Change Fund (SCCF) during the COP27 climate summit and several others backed the funds’ ambitious goals for meeting the most urgent adaptation needs. Announcing a total of $105.6 million in new funding, Denmark, Finland, Germany, Ireland, Slovenia, Sweden, Switzerland, and the Walloon Region of Belgium, stressed the need for even more support for the Global Environment Facility funds targeting the immediate climate adaptation needs of low-lying and low-income states.
Additionally, countries including Belgium, Canada, France, and the United States, as well the European Commission, signaled political support for the two funds, and some expressed an intention to contribute further in the coming months. Several welcomed the SCCF’s dedicated focus on Small Island Developing States as a key avenue of climate finance that is otherwise lacking.
Brazil, China, India & South Africa issue jointly call at COP27 climate summit (Engineering News)
COP27: Global North governments want private sector to pay for loss and damage (Down to Earth Magazine)
Private sector companies’ understanding of climate adaptation and mitigation is limited, according to experts The developed countries, mainly the European Union and the United States, do not seem to be very keen on an outcome on a loss and damage facility at the 27th Conference of Parties (COP27) to the United Nations Framework Convention on Climate Change (UNFCCC) in Sharm El-Sheikh.
They appear to be pushing for private finance outside the UNFCCC process. The prevailing sense from the governing body of the European continent seems to be focusing on resolving domestic energy security in the context of the war in Ukraine.
World Bank Announces New Blue Economy Financing Program for African Countries (World Bank)
Today, the World Bank announced a new Blue Economy program that will catalyze financing and provide an operational response to development challenges in coastal-marine areas of the African continent. The Blue Economy for Resilient Africa Program (BE4RAP), was announced at a COP 27 World Bank event, attended by Egypt’s Environment Minister Yasmine Fouad, Tanzania’s Deputy Minister for Union and Environment Hamza Khamis Hamza, and Morocco’s Deputy Budget Director for the Ministry of Economy and Finance Youssef Farhat. The program seeks to respond to the challenge coastal countries face to manage their coastal and marine resources to spur economic growth and reduce poverty, while adapting to the effects of climate change.
Developed nations backtracking on climate change mitigation commitments (SAnews)
The Ministers of Brazil, South Africa, India and China have expressed concern that there has been a significant increase in the consumption and production of fossil fuels in the past year by developed countries, even as they continue to press developing countries to move away from the same resources. “Such double standards are incompatible with climate equity and justice,” the Ministerial Joint Statement by the Ministers of Brazil, South Africa, India and China representing the BASIC Group said on Tuesday.
“BASIC countries are gravely concerned that developed countries are still not showing leadership or responding with a matching progression of effort. There has been backtracking on finance and mitigation commitments and pledges by developed countries,” the BASIC Ministerial Group said. Developing countries require predictable and appropriate support, including climate finance at the necessary scope, scale and speed and access to technology and markets to ensure and enable their sustainable development.
“In this regard, the Ministers underscored the urgent need for a fundamental transformation and modernisation of the global financial architecture, including a systematic reform of the multilateral development banks to make them fit-for-purpose in supporting sustainable development and just and equitable transitions.
How blended finance can support climate transition in emerging and developing economies (IMF Blog)
Local news
Key Data Suggests South Africa’s Economy Has Averted a Technical Recession (Bloomberg)
South Africa’s economy is likely to have averted a technical recession in the third quarter despite record power outages, key data indicates. Better-than-expected mining and manufacturing output is set to outweigh relatively soft retail sales data, suggesting Africa’s most industrialized economy returned to growth in the third quarter after contracting 0.7% in the prior three-month period. Mining and manufacturing make up about a fifth of total gross domestic product, while trade, which includes the retail sector, accounts for 13%.
Uganda seeks Kenya partnership in deal to boost tourist numbers (The East African)
Uganda’s tourism players are reaching out to Kenya in a controversial bid to help bridge market access challenges for Kampala’s hospitality offers. The players in Kampala see Kenya’s coastal exposure to the world as a starting point where tourists arriving in Kenya can go on to visit Uganda on the same visa while using Uganda Airlines as a connecting carrier. But that could bring new threats to Kenya’s own local sites, as well as affect market share for Kenya Airways, which has for years dominated the Kenya-Uganda route.
But if this plan works, the proponents argue, Kenya and Uganda will mutually benefit, with Uganda profiting from Kenya’s networks to attract visitors. Kenya in the meanwhile will have its tourists visit Ugandan sites at a discounted price, which stakeholders say could break monotony for repeat clients who have explored Kenya.
Horticulture exporters urged to scale up production (Graphic Online)
Horticulture exporters have been challenged to take advantage of the looming shortage of fruits and vegetables in Europe as a result of the raging Russia-Ukraine war to maximise their gains. The Country Manager of the multi-national airport handling company, Swissport, Chris Goodsir, who made the call, explained that the war was creating an energy shortage in Europe resulting in greenhouses used for growing fruit and vegetables reducing their hours of operation. “This has resulted in a shortage of fruit and vegetables in Europe and this means that exporters of these crops in West Africa have an opportunity to sell higher volumes of exports to Europe but at higher prices, too,” he said.
Nigeria plans 3318km of rail as stakeholders seek connectivity across Africa (The Guardian Nigeria)
Federal Government, in Abuja, yesterday, said about 3,318 kilometers of rail lines are being considered across the country. This came as stakeholders insisted that unless Africa is linked by railway network, projected boost in intra-African trade, as envisaged under the African Continental Free Trade Area (AfCTA), would remained a mirage. Speaking at an International Railway Conference, organised by the Abuja Chamber of Commerce and Industry (ACCI), the stakeholders, noted that the continent must prioritise railway, if it must address growing poverty, unemployment and weak economic outlook.
Minister for Transportation, Mu’azu Sambo, said the Federal Government has conducted feasibility studies on selected route alignments it considered viable for development.
Djibouti Economy Slows Due to Global Crises, Severe Drought (World Bank)
After rebounding in 2021, Djibouti’s economy has slowed since the beginning of 2022 due to the war in Ukraine, global inflation, severe drought, and subdued Ethiopian demand. Yet growth is expected to recover to 5.3% in 2023 and 6.2% in 2024, and opening up the digital sector for competition could lead to an additional 1% increase in national GDP by 2025, according to the latest edition of the World Bank’s Djibouti Economic Monitor. The twice-yearly report analyzes development trends and constraints in Djibouti. The autumn 2022 report, titled “Towards Sustainable Growth: Improving Fiscal Stability and Competitiveness of the Digital Sector,” estimates real GDP growth at 3.6% for the whole of 2022, down from 4.3% in 2021.
But in the current year, soaring global oil and food prices have pushed up inflation. “Urgent action is needed for the Djibouti economy to recover over the coming two years. This includes expediting structural reforms, fiscal consolidation, and implementing the private and public investment programs,” said Boubacar-Sid Barry, World Bank Resident Representative in Djibouti.
African trade and integration
The United Nations Economic Commission for Africa (ECA) holds a 3-day Validation and Closure of Phase II of the AfCFTA-anchored Pharmaceutical Initiative & Discussion of the Action Plan for Phase III meeting in Nairobi, Kenya from 19 to 21 October 2022. The event brought together senior government officials from Comoros, Djibouti, Kenya, Ethiopia, Madagascar, Rwanda, Seychelles, and Sudan as well as representatives of UNECA, UNICEF, AUC, AUDA-NEPAD, Africa CDC, EAC, USP and pharmaceutical specialists.
African Development Bank predicts economic slowdown in East Africa in 2022, but bounce back in 2023 (AfDB)
The African Development Bank has released its latest East African Economic Outlook, predicting a slow recovery in the region in 2022 at 4.0 percent against 5.1% in 2021. The slowdown is due to the lingering effects of COVID-19; the adverse impacts of geopolitical tensions (notably the Russia-Ukraine conflict); climate change and devastating locust invasion, together with regional conflicts and tensions. The report notes that because of these obstacles, countries in the region have experienced heightened inflationary pressures, particularly on food and fuel, leading to rising cost of living. This has resulted in weakening national currencies, floods and drought, contraction in agricultural production; depressed business activity, and falling revenue collection, among others.
However, the continued reopening of economies globally could mitigate these adverse effects in 2023 with a projected growth rate of 4.7%, repositioning East Africa as the top-performer in growth among the regions of the continent, according to the report. The report, themed “Supporting Climate Resilience and a Just Energy Transition”, was launched on 28 October 2022.
Why EAC needs to enhance investments in agriculture (The Citizen)
The East African Community (EAC) must invest heavily in agriculture to cater to the growing demand for farm products. Besides rising demand for food due to the vagaries of the weather, 70 percent of the region’s industries are agro-based. This was emphasized last week during a high-level forum of business leaders and policymakers in the region held virtually.
The partner states were urged to review their agricultural development strategies in order to attract more investments. The East African Business Council (EABC) chief executive officer, John Kalisa, said the sector saved the region from recession during the height of Covid-19.
The agricultural sector in the EAC accounts for between 25 and 40 percent of the region’s GDP and employs over 80 percent of the population. However, Mr Kalisa said the sector was not attracting much investment to match its critical role in the economy and food security. The EAC countries were also urged to ensure their agricultural development programmes were compliant with CAADP principles and commitments. In particular, the EAC partner states should enhance investment financing in agriculture “to boost food production, supply, and trade.”
Experts Review Proposals of Strengthening Regional ICT Associations (COMESA)
A technical working group under the Enhancement of Governance and Enabling Environment in Information and Communication Technology (EGEE-ICTs) programme is meeting in Kigali, Rwanda for a two-day validation workshop to review a study from a consultant on how they could provide assistance to the Regional ICT sector Associations. The experts from COMESA, SADC, EAC, IGAD and IOC have been joined by representatives from Regional ICT Associations (RICTAS) to review recommendations on the development of institutional strategies and business/membership models that would sustain their role of ensuring coordinated public and private sector policy and regulatory engagement and development.
Funded by the European Union Development Fund (EDF11), the EGEE-ICT aims at supporting the effective review and or development of various regional policy and regulatory frameworks in a harmonized manner that will contribute to enhancing competition, improved access to cost effective and secure ICT services in the East African-Southern Africa and Indian Ocean region.
African ports urged to adopt smart technology to drive efficiency (Businessday)
African ports can benefit enormously from digital transformation by adopting smart systems to keep the supply chains moving smoothly, Huawei, one of the leading global providers of information and communications technology (ICT) infrastructure and smart devices, has said. According to the firm, the digitisation of Africa’s ports will be a logical solution to meet the increasing demand for freight transport volumes. This, the company said, will also enhance Africa’s trade efficiency, and investment attraction, and bring about huge economic and social development.
“Ports are where cargo begins and ends its journey,” Jiang Kaimin, senior marketing expert at Huawei’s customs and port business, said.
Alliance to accelerate financing for green infrastructure launched (ESI Africa)
The African Union, the African Development Bank and Africa50 together with several global partners launched a multi-billion alliance for green infrastructure. The Alliance for Green Infrastructure in Africa (AGIA), an initiative to help scale and accelerate financing for green infrastructure projects in Africa.
The Alliance’s mission is to raise significant capital to accelerate Africa’s just and equitable transition to Net Zero emissions. It has two strategic objectives. The first is to generate a robust pipeline of transformational bankable projects. The second is to catalyse financing at scale and speed for Africa’s infrastructure.
The Alliance for Green Infrastructure in Africa will raise up to $500 million to provide early-stage project development capital. This is capital that will build a robust pipeline of bankable projects, starting with pre-feasibility stage all the way through to commercial and financial close. This is projected to generate up to $10 billion worth of investments in green infrastructure.
Global economy
G-20 leaders issue declaration to tackle pandemic recovery challenges worsened by Ukraine war (The Straits Times)
Leaders of the G-20 major economies on Wednesday adopted a declaration that seeks to address various challenges posed by the Covid-19 pandemic and exacerbated by Russia’s war in Ukraine, and pledged necessary support to the world’s most vulnerable countries.
Underlining the adverse impact the war had on the global food chain, the leaders supported the Black Sea Grain Initiative, an initiative to transport grain and food produce from Ukrainian ports, as well as a Russia and United Nations Secretariat agreement to ease the movement of food and fertilisers from both countries to the global market, and address supply issues and prevent food insecurity and hunger in developing countries.
DG Okonjo-Iweala to G20 leaders: “We need to strengthen trade cooperation, not weaken it” (WTO)
“An open rule-based world trading system is the foundation of our global economy,” the Director-General told the G20 leaders at the opening of the summit. “It has delivered unprecedented growth and development. It has enabled us to withstand the COVID-19 pandemic. And it will be key to achieving the ambitious goals you have set solving food and energy shortages, tackling climate change, financing development and getting the (UN Sustainable Development Goals) back on track.” “Fragmenting this foundation would put these goals in jeopardy, worsening domestic prospects and geopolitical tension,” she added. “It would result in substantial global GDP losses, which could be double digit losses for developing countries.”
G20 Summit: Kagame Rallies Developed Countries To Back Recovery Efforts Of Developing Ones (KT Press)
With the Covid-19 effects still biting and the impact of the Russia-Ukraine conflict pushing countries into inflation, President Paul Kagame has called on development nations to step in the gap and help address fiscal pressures. While addressing separate sessions on food and energy security on the global health architecture, digital transformations, and sustainable energy transitions, President Kagame said developed nations have what it takes to cushion developing nations from the shocks that are still ongoing.
G20 leaders pitch for updating global agricultural food trade rules (PTI)
G20 Bali Leaders’ Declaration (The White House)
Global Economic Turmoil Calls for a Modernized Global Financial Architecture to Address Needs of the Most Vulnerable Countries (Carnegie Endowment for International Peace)
In October, the International Monetary Fund (IMF) published what is perhaps its most bleak economic outlook in a decade, forecasting that the world economy will grow by only 2.7 percent in 2023 and warning that “the worst is yet to come.” Not since the global financial crisis of 2007–2008 have we seen such pressure on vulnerable countries grappling with what Carnegie scholar Adam Tooze describes as “polycrisis.” Climate change, food and energy price inflation, debt distress, and an ongoing pandemic have created a dynamic where, in Tooze’s view, “the whole is even more dangerous than the sum of the parts.” This constellation of crises demands that G20 leaders design a new global financial architecture that delivers urgent liquidity for vulnerable countries, a solution for countries facing debt distress, and long-term financing at an order of magnitude greater than currently available—all while giving those vulnerable countries a more meaningful voice in the design of that architecture.
This polycrisis comes to its most acute head within the twenty-five countries that, according to Bloomberg, are most vulnerable to debt distress.
Trade for Peace Week looks at fragile and conflict-affected states’ WTO integration (AU)
Under the theme “Fragility and Conflict: Building Peace through Trade and Economic Integration”, the event was opened by WTO Deputy Director-General Anabel González. In her opening remarks, she underlined the importance of the topic, which has been gaining traction in recent years, especially given the poly-crisis that has exposed multilayers of fragility around the world.
Noting that for several decades the multilateral trading system has provided an enabling environment for promoting peace through economic integration and growth, DDG González stressed: “Trade has the potential to address fragility and conflict in a number of different ways, including by reducing vulnerabilities to external and internal shocks, strengthening ties between states to reduce the likelihood of conflict, and giving populations opportunities for economic development.”
Related News
tralac Daily News
COP27 news
Climate Financing, Water Revealed as Key Objectives at COP27 (Environmental Leader)
As COP27 enters its final week, financing global sustainability programs continue to be a significant focus with water conservation and resilience ranking high on the list of delegates’ priorities. With the conference nearing its end, Egypt Foreign Minister and COP President Sameh Shoukry called on attendees to make a push to establish concrete agreements to make progress on international climate goals. Among the main areas of focus continues to be financing, especially in regard to developing nations. Funding of international projects is one of the four broken-out objectives of COP27, especially to meet previously established COP commitments. That includes a pledge from more than a decade ago of $100 billion by 2020, which has mostly fallen short.
Progress on COP26 pledges: finance (Economist Impact)
At the 2009 Copenhagen COP rich nations promised US$100bn per year in climate finance to support mitigation and adaptation efforts in less wealthy countries by 2020. The commitment was never fulfilled. According OECD data, in 2020, countries mobilised US$83.3bn, with private sector financing accounting for 16%. While this indicates a gradual improvement since 2015, where just US$52.4bn was deploy
At COP27, Our Climate Future is Female: A Progress Report on Implementing U.S. Efforts to Advance Women and Girls’ Climate Action (US Department of State)
On November 14, 2022, Gender Day at COP27, the U.S. government is proud to announce the following strategies, initiatives, and programs addressing the disproportionate impacts of the climate crisis on women and girls and empowering women and girls as climate leaders: Launched through a five-year partnership with Amazon, with initial seed funding of $6 million, the fund will leverage public and private sector investment to increase access to climate finance for women-led climate organizations, and businesses that advance gender-equitable climate solutions in least developed countries.
Data Dive: How Africa can help drive global climate change solutions (ONE Campaign)
African countries will need an estimated $50 billion per year in climate finance by 2050 to adapt to climate change. Rich countries must do more to mitigate their climate impacts and to support African countries’ efforts to prepare for a changed climate.
Time to deliver on a 13 year old climate promise (ONE Campaign)
At COP15 in 2009, high-income countries committed to mobilise $100 billion in climate finance per year by 2020, specifically to address the needs of lower-income countries. Climate finance from wealthy countries is significantly lower than the trillions of dollars needed, and remains far below what they promised.
World Bank Group Launches Global Shield Financing Facility to Help Developing Countries Adapt to Climate Change (World Bank)
The Global Shield Financing Facility will finance integrated financial protection packages that offer coordinated and consolidated financial support to those vulnerable to climate shocks and disasters. This facility will support the Global Shield Against Climate Risks, a joint initiative launched today at COP27 by the G7 and V20 to better protect poor and vulnerable people from disasters by pre-arranging more financing before disasters strike.
World Bank Group Announces International Low-Carbon Hydrogen Partnership (World Bank)
Today, on Energy Day at COP27, the World Bank Group announced the creation of the Hydrogen for Development Partnership (H4D), a new global initiative to boost the deployment of low-carbon hydrogen in developing countries. The partnership will foster capacity building and regulatory solutions, business models, and technologies toward the roll out of low-carbon hydrogen in developing countries.
Particularly exposed to climate shocks, African cities are turning to adaptation and resilience (AfDB)
What is less well known is the growing impact of climate change on urban areas, which are already under pressure, especially demographically: no less than 70% of African cities are highly vulnerable to climate shocks... Floods cause significant material damage and affect the most vulnerable populations in informal settlements, which are numerous in African cities that have grown too fast, and are often built on areas at risk, along rivers or on hillsides exposed to landslides.
Africa’s informal cities need more than green infrastructure to weather the effects of climate change (Brookings)
This lament, from a female market trader in Accra, Ghana, epitomizes the anxiety that permeates the daily existence of those working and living in informal conditions in African cities, an anxiety which will only get worse as extreme weather events triggered by climate change become more common in Africa. We draw on interviews with policymakers and local politicians as well as focus group discussions with market traders, neighborhood associations, and traditional authorities to develop a framework about how climate change and informality intersect in African cities and to map out the tensions between formal governance structures and the realities of the informal city that obstruct inclusive adaptation.
‘Natural gas is not an ideological issue, it’s a pragmatic one,’ says AfDB’s Adesina (AfDB)
The president of the African Development Bank shares his views on investment opportunities, financial management and the growing threat of climate insecurity. Those kinds of capital efficiency efforts are what you need to get institutional investors in Africa to trust that they can invest and make money in investing in infrastructure.
Facing a call for climate reparations, wealthy nations propose an insurance scheme (Grist)
Harjeet Singh, head of global political strategy at the Climate Action Network, an international coalition of more than 1,800 environmental groups, said that in past years wealthy nations have used insurance programs to distract from the demand for direct loss and damage funding. InsuResilience and other insurance programs that have been championed by wealthy nations have been inadequate to meet the scale of loss and damage that people in climate-vulnerable countries are facing, advocates told Grist.
A just transition that leaves no one behind (UNECA)
Director for Technology, Climate Change and Natural Resources Management at the UN Economic Commission (ECA) for Africa, Jean-Paul Adam, has emphasized the need for additional financial resources to achieve Africa’s just transition.
Developing countries, China seek ‘loss and damage’ fund - draft proposal (Yahoo News)
The G77 bloc of developing countries and China are proposing the establishment of a new ‘loss and damage’ fund to provide finance to countries hit by climate disasters, a draft text of their proposal to the COP27 summit showed. The text seen by Reuters set out their proposal for a new fund, with its principles and operating policies to be established by the next round of climate talks in Dubai in 2023.The subject of loss and damage has for the first time been included on the official COP agenda. But developed and developing nations are split over whether a new mechanism is needed or whether existing financial institutions can deliver the cash needed.
Climate “loss and damage” talks stall on definition (News24)
Green hydrogen could sustainably industrialise Africa, boost GDP in six key countries – new report (Engineering News)
A positive step to ensure that least-developed countries become stepping-stones to wider and more inclusive regional value chains and trade-led growth is the Africa Continental Free Trade Agreement (AfCFTA).
The Egyptian government has launched the Sharm El Sheikh Guidebook for Just Financing at a roundtable event held 10 November during COP27. The guidebook was produced jointly by the Egyptian Ministry of International Cooperation and more than a hundred development partners, corporations, development finance institutions and non-profit organizations. These include the International Monetary Fund, Rockefeller Foundation, the World Economic Forum, Climate Investment Funds and Citi, the banking group. The publication posits that climate financing should complement rather than replace development financing, guaranteeing that countries and regions that most need climate financing are able to access it.
Leveraging private sector development to drive green transition in Africa (UNECA)
The ECA Office for North Africa will hold, in partnership with the International Telecommunication Union (ITU) a COP27 side event on “Leveraging private sector development to drive green transition” on 15 November 2022 in Sharm El Sheikh (Egypt).Africa is one of the most vulnerable regions to climate change despite being responsible for only 3.8% of global CO2 emissions. The region is also particularly exposed to increases in traditional energy prices.
OPEC Fund and AfDB Strengthen Ties at COP27 (Energy Capital and Power)
Electric Vehicles Are Duty Free In Mauritius! (CleanTechnica)
Africa can seize green industry opportunities if policies are clear (Engineering News)
Here’s how African leaders can close the climate finance gap (WEF)
Climate Change: African countries need to work together - Monica (TVC News)
The White Paper posits that given Nigeria’s large and growing population, achieving this balance between trade, energy and climate change is a matter of national, continental, and global concern. “As you said, it was a collaborative effort whereby you have people from the private sector, the academia, the civil society organizations, government institutions coming together to really look at what the situation was in Nigeria and how to make sure that we can come together, put forward a message whereby, when priorities for global climate change are discussed, we also have a reflection of what is important to Nigeria and Africa as a whole.
Analyst sees renewables as only practical way to quickly boost South Africa’s electricity generation (Engineering News)
Regarding increasing South Africa’s electricity generating capacity in the immediate future, wind, solar photovoltaic (PV) and hybrid power systems were the “only game in town”, affirmed EE Business Intelligence MD Chris Yelland on Monday. He was addressing the Energy Indaba conference in Cape Town. He pointed out that national electricity utility Eskom had about 100 generators (of different types
Rich nations stick to coal phase-out as China builds new plants (Engineering News)
Rich nations have stuck to pledges to phase out coal power despite the energy crunch in the wake of the Ukraine war but China’s expanding coal fleet risks counteracting the climate impact of the closures, a report said on Tuesday. Countries within the Organization for Economic Cooperation and Development (OECD) policy forum and the European Union are on track to close more than 75% of their coal power capacity from 2010 to 2030, the Powering Past Coal Alliance (PPCA) said.
Particularly exposed to climate shocks, African cities are turning to adaptation and resilience - World (ReliefWeb)
It is well known that Africa, although it contributes only about 4% of global greenhouse gas emissions, could pay the heaviest price for the global acceleration of climate change. What is less well known is the growing impact of climate change on urban areas, which are already under pressure, especially demographically: no less than 70% of African cities are highly vulnerable to climate shocks... yet they are also the economic epicenters of the continent. And they are still growing.
Local news
Transforming SA’s international trade/free flow of goods. (Farmers Review Africa)
Information and Communications Technology has undoubtedly changed the face of global customs. The introduction of new technologies like cloud computing, mobile advancements, information management and analytics has impacted customs in many different ways, but also provides exciting opportunities for customs officials, traders and other supply chain stakeholders for greater connectivity. World Customs Organisation secretary general Kunio Mikuriya believes the development and adoption of digital solutions, such as big data, telematics, the internet of things, artificial intelligence and machine learning, will make life easier for trading communities, border agencies and customs officers by increasing operational performance.
Doubt remains as to whether Steel Master Plan can rescue the steel industry (Engineering News)
The World Steel Association has lowered its forecast for global steel demand for this year, anticipating that demand will contract by 2.3% as the global economy struggles with macroeconomic headwinds. South Africa’s steel industry has also been under pressure for years owing to a prolonged period of economic decline.
South Africa set for stable and quality new-season stone fruit (FreshPlaza)
South African stone fruit suppliers are predicting a stable and high-quality 2022/23 export season, with improved volumes and a return to smooth trading after a series of logistical challenges over the past year. According to figures from trade body Hortgro, exporters are forecasting a 4% increase each for plums and peaches at 86,000t and 6,550t respectively, with a healthy 15% rise in nectarines, taking it to 23,650t.
Kenyan traders buy Ethiopian miraa for Somalia market on high costs (Business Daily)
Miraa traders have shifted to Ethiopia as a source market for the stimulant, where they are buying nearly half of the allocated quota for the Somali market as high costs in Kenya force them to abandon the local crop. The traders said they procure at least 40 percent of the 19 tonnes that the Somali market has allowed Kenyan business people to export to Mogadishu from Ethiopia, denying Kenya millions of shillings in earnings.
Trade Ministry, stakeholders to develop National Laboratory Policy (The Point)
Vieira, who is providing technical assistance for the development of the Policy, said the development process of the document was designed to identify a set of activities/steps for the collaborative development and validation of the Policy as well as to identify the main stakeholders needed to carry out the planned activities. The working group will review and analyze the national context and laboratory-related issues and formulate a draft laboratory policy document, he said, adding that the group is expected to undertake preliminary preparations including documentary review and validation of methodology and tools to be used.
Namibia to develop new conservation agriculture framework to ensure food security (Xinhua)
Namibia is set to develop a new conservation agriculture strategic framework to inspire local farmers to adopt sustainable agriculture practices that ensure resilience, food security, and nutrition as well as environmental protection, an official said Monday. Speaking at a workshop to develop the Comprehensive Conservation Agriculture Program, United Nations Food and Agriculture Organization Assistant Representative, Ferdinard Mwapopi said the framework is to help farmers increase production and productivity, thus reducing risks and building resilience to climate change.
National Seed Forum urges government to increase funding for agricultural development (Myjoyonline)
Participants of the 3rd National Seed Forum in Accra have urged government to increase funding for agricultural development to 10% of GDP as agreed by African Union leaders under the 2014 Malabo Declaration. In a communique issued at the end of the forum, the participants said in recognition of the critical role of research in agriculture, at least 1% of the quantum should be reserved to support varietal research and development. Participants suggested government places levies on agricultural imports and commercial transactions in the context of an active Plant and Fertilizer Fund, to raise money for sustainable fund varietal research and development. They also urged that the process of variety release and registration and its adjunct, the National Seed Bank operations, should be properly resourced and technically structured, as per international norms and standards.
African trade and integration
Countries across Africa are facing a perfect storm: armed conflicts, rising food and energy insecurity, skyrocketing inflation and debt, shrinking fiscal space and mounting climate catastrophes. Yet, despite these challenges, Africa includes some of the world’s fastest growing economies with the potential to lead in the global energy transition. Strengthened public-private partnerships and multilateral cooperation are needed to advance inclusive, resilient and sustainable industrial development in Africa. A new financial architecture with greater access to finance and lower cost of capital is key unlocking investments at scale. We must work collectively to boost entrepreneurship, harness the potential of new technology, expand opportunities for youth, women and girls, build climate resilience and foster competitiveness and trade.
Africa must leverage on IPRs as a tool to facilitate economic transformation (Chronicle)
LAST week, the African Regional Intellectual Property Organisation (Aripo) and the Intellectual Property Rights and Innovation Project in Africa (AfrIPI) held a joint communication training in Harare focused on unpacking the Regional Intellectual Property Rights System, which drew a diversity of participation from across the continent. Zimbabwe hosts the Aripo headquarters and the communication training seminar was the first of its kind in the region as communicators had an opportunity to learn the technical side of intellectual property (IP) and how to demystify it to the general public.
Africa needs bold actions to tap youth potential for industrialization – ONE Campaign (Businessday)
Ahead of the AU summit on Industrialization and Economic Diversification, ONE Campaign is advocating for a raft of urgent and bold policy actions to tap youth potential towards building a better and prosperous Africa. The highly anticipated summit will be held later this month in Niger as Africa recovers from the COVID-19 pandemic and grapples with after-shocks from global economic and political events.
There is no doubt that counterfeit goods are thriving in Africa as average incomes across the continent continue to increase, thereby attracting expansion prospects from global brands who aim to generate additional revenue streams by increasing their market shares in this historically neglected geographical area. This low level of intellectual property (IP) awareness in Africa, including the dismally low level of IP registrations from African countries themselves, is a major concern for entities such as the African Intellectual Property Organisation (ARIPO).
President Ramaphosa calls for AU to join G20 leaders group (SAnews)
President Cyril Ramaphosa has called for the African Union to be made a permanent member of the G20. The G20 is a group of 20 countries with leading economies which come together to discuss policy on health, trade and other issues. The President was speaking during the Working Session on Food and Energy Security at the G20 Leaders’ Summit, held in Bali, Indonesia.
Experts urge African youth to seek jobs in the forestry sector (The East African)
Godwin Kowero, director African Forest Forum (AFF), encouraged the youth to look at different value chains, products and ecosystem services in the forestry sector that they can be involved. “The scientific community can help prepare young people in Africa to sustainably govern and manage the continents’ forest resources,” she said stating that their enthusiasm, creativity and technology savviness could help address the crises of forest degradation and climate change even as they create jobs and wealth for the continent, and create synergies across borders for knowledge exchange.
U.S.-Africa Business Forum: strengthening the U.S. and Africa’s commercial ties (US Chamber of Commerce)
Over three days in December, President Joe Biden will host the second U.S.-Africa Leaders Summit in Washington, D.C.--the first head of state gathering of African leaders and a U.S. president since 2014. The Summit, taking place from December 13-15, includes a CEO business forum for which the Chamber is an official partner and focuses on growing the commercial partnership between the U.S. and Africa. Priority discussion topics include the shared U.S.-Africa commitment to bolstering trade and investment flows, strengthening regional and global health, addressing food security, promoting peace and security, supporting climate sustainability, and engaging the African diaspora.
Global economy
More recently, in my role as task team coordinator of the UN Global Crisis Response Group, I have seen first-hand the incredible value of reliable and timely statistics for crisis management and decision-making. Fourth, we need to support developing countries in their statistical infrastructures, especially to use digital data.
UNITAR And UNCTAD To Jointly Hold a Roundtable On “Global Rules That Advance Local Solutions” (Mirage News)
Geneva, Switzerland – The United Nations Institute for Training and Research (UNITAR) and the United Nations Conference on Trade and Development (UNCTAD) will jointly conduct a roundtable discussion on the topic “The Global Rules that Advance Local Solutions” on 24 November 2022, at Palais des Nations in Geneva.
SPS standards “key” to international trade (Fruitnet)
Freshfel Europe has called for the “meticulous implementation” of the World Trade Organization (WTO) SPS and Trade Facilitation agreements principles.
PM sets out five-point economic action plan for the G20 (GOV.UK)
This includes by advancing bilateral free trade agreements and through reform of the World Trade Organization.
Bali Compendium Determinant of Investment Policy of G20 Nations, Bahlil Says (Tempo)
The compendium was prepared in collaboration with the United Nations Conference on Trade and Development (UNCTAD).
Trading our way to greater prosperity and security (Mirage News)
We want to see China’s trade measures impeding a wide range of Australian exports removed, including the duties on barley and wine that Australia is challenging through the World Trade Organization dispute settlement system.
Deglobalization is not an option for any one of us, German Chancellor Olaf Scholz says (CNBC)
“We need them not to take forward a new agreement to the World Trade Organization, but to keep it working, to apply the rules.”
President Xi Jinping Attends the 17th G20 Summit and Delivers Important Remarks (MFA China)
President Xi stressed that all G20 members should take the responsibility inherent in being major international and regional players, and should lead by example in promoting development of all nations, improving the well-being for the whole mankind, and advancing progress of the entire world. Countries should respect each other, seek common grounds while reserving differences, live together in peace, and promote an open world economy.
Members review trade agreements involving Egypt, Israel, Kenya, Korea, Mexico, Türkiye, UK (WTO)
Israel said the UK was its sixth largest destination for exports and ninth largest source of imports in 2021, adding that both parties have launched further negotiations for a modern and comprehensive free trade agreement to include new areas not covered by the current agreement. The Trade and Partnership Agreement between the United Kingdom and Israel (Goods) entered into force on 1 January 2021.
UNCTAD awards Brazil, Egypt and Lesotho agencies for promoting sustainable investment in agriculture (UNCTAD)
UNCTAD has awarded investment promotion agencies (IPAs) from Brazil, Egypt and Lesotho for excellence in promoting sustainable investment in agriculture, contributing to food security and development. The project is in line with Egypt’s 2030 sustainable development vision to achieve food security while adapting to climate change using smart agriculture systems.
Four African countries back agreement against illegal, unregulated fishing (Down to Earth Magazine)
100 countries have signed the Agreement on Port State Measures — the first internationally binding agreement in the fight against illegal, unreported and unregulated fishing
Diaz: Air transport plays integral role in global economy (Capital FM Kenya)
Air transport is an important enabler to achieving economic growth and development. Air transport facilitates integration into the global economy and provides vital connectivity on a national, regional, and international scale. It helps generate trade, cargo business, promote tourism, and create employment opportunities.
Related News
tralac Daily News
Updates from COP27
Namibia Minister launches Conference Outcome at COP27 Africa Day event (UNECA)
Africa Day took place on Tuesday the 8th November 2022 at the Africa Pavilion at COP27 in Sharm El Sheikh, Egypt. The theme of the event was “Implementation of Climate Actions and Africa’s Responses for a Just and Sustainable Transition”, which closely aligns with the clarion call of COP27 i.e., “Together for implementation”.
In the run-up to COP27, stakeholders that included policy makers, researchers, civil society, youth, and media gathered in Windhoek, Namibia on the 24-28th October for the 10th conference on Climate Change and Development in Africa (CCDA-X). The event, which was attended by over 400 participants who represented all African sub-regions, produced key messages and recommendations as a contribution towards shaping Africa’s continuing climate change interventions, as well as guiding engagement at the global UNFCCC negotiations platform.
The outcome of the conference mirrored contemporary challenges that the continent continues to grapple with, such as just transitions, financing climate action, building climate resilience, bolstering adaptation, disaster risk reduction, and Article 6 of the Paris Agreement. Other pressing issues on the agenda included fostering a gender-responsive, inclusive and people centred transition, mitigation and adaptation action, Climate Information Services (CIS) and next steps in the establishment of the African Islands climate commission.
pdf CCDA-X Just Transitions: Outcome Statement (714 KB)
Afreximbank Pledges to help bridge Africa’s Climate finance gap (Afreximbank)
African Export-Import Bank (Afreximbank) has pledged to support Africa to bridge the USD250 billion climate finance gap in collaboration with other African financial institutions. Speaking at the ongoing COP27 Conference hosted by the Arab Republic of Egypt in Sharm El Sheikh, Denys Denya Afreximbank’s Executive Vice President – Finance, Administration & Banking Services said, “African financial institutions, with Afreximbank at the forefront, need to step in and bridge the finance gaps. With the right support and commitment, Africa can in addition achieve the vision and goals of the AfCFTA, helping Africa’s population grasp the opportunities within it, and ensuring it plays a leading role in revitalizing Africa’s climate adaptation and mitigation initiatives”.
He urged African financial institutions to offer both financial and technical support which would then be targeted at curbing Africa’s greenhouse gas emissions, ensuring the achievement of the goals under the AfCFTA are not derailed. While also speaking on the effects of climate change on the continent during COP27’s decarbonisation day, Dr. Elias Kagumya, the Bank’s Chief Risk Officer, commented that it is high time Africa turned to the continent’s vast mineral resources to finance adaptation, loss and damage and build resilience in the continent.
Dr. Elias added that, “With the world turning to clean energy technologies, the need for minerals like copper, lithium, nickel, cobalt and rare earth elements have and will continue to grow.”
Africa continues to be the least emitting continent, but the continent continues to battle unprecedented forest fires, droughts, soil erosion, landslides, cyclone, and floods, which are expected to get worse as temperatures rise.
For African governments and stakeholders, ensuring that the AfCFTA does consider a green transition is a huge mandate, and the implementation of the AfCFTA forms part of the larger solution to Africa’s climate change issues. However, critical financing is important to achieve this. And if done correctly, experts agree, AfCFTA can help in shaping the transition of African economies to green growth, climate adaptation and mitigation.
COP27: experts explore avenues to mobilize more robust financing for climate Action (AfDB)
Global experts meeting during a panel session at the 27th global climate summit (COP27) in Egypt have endorsed a new climate finance roadmap to mobilize $1 trillion in annual external finance required by emerging markets and developing countries—excluding China. The roadmap draws on the findings of a recently released report, Finance for climate action: Scaling up investment for climate and development, produced by a panel of experts chaired by Vera Songwe and Lord Nicholas Stern.
Songwe said investment priorities must encompass transformation of the energy system, address developing countries’ growing vulnerability to climate change and undo earlier harm to natural capital and biodiversity. “The scale of investments needed in emerging markets and developing countries over the next five years and beyond will require a debt and financing strategy that tackles festering debt difficulties, especially those of poor and vulnerable countries,” Songwe said. She added that reforms must lead to a major expansion of domestic and international finance –public and private, concessional and non-concessional.
pdf Finance for climate action: Scaling up investment for climate and development (1.78 MB)
Africa’s just transition demands a just formula guided by African priorities (Afreximbank)
Access to energy is a catalyst for development anywhere in the world. In Africa, energy poverty has been a major constraint not just to economic development but increasingly to trade. “These constraints can only be addressed if there is access to energy, and the energy gap is closed. More than 600 million Africans have no access to energy, resulting in diminished industrialization.” Dr. Hippolyte Fofack, Afreximbank’s Chief Economist and Director Research and International Cooperation noted while addressing the media at the 27th UN climate summit (COP27) in Sharm el-Sheikh, Egypt.
“African governments are spending between 5-11 percent of their GDPs to adapt to climate impacts. With the increasing rate of famine, drought across regions, and rising conflict borne out of the climate crisis as neighboring communities fight for scarce resources, African development is at risk,” he noted.
The African Common Position on Energy Access and Just Transition stipulates that Africa will continue to deploy all forms of its abundant energy resources, including renewable and non-renewable energy, to address energy demand. Natural gas, green and low-carbon hydrogen, will play a crucial role in expanding modern energy access in Africa. Both in the short to medium term, while enhancing the uptake of renewables in the long term for low carbon and climate-resilient trajectory on the continent.
High-Level Forum on Financing Energy Transition in Africa at COP27 (AU)
As the COP27 Climate Summit continues in Sharm El Sheikh, Egypt, the Africa pavilion is busy hosting crucial events on topics that matter to Africa as well as on pressing issues that are impacting the Continent. The High-Level Forum on Financing Energy Transition in Africa organised by the African Union Commission (AUC) and the International Energy Agency (IEA) on 9th November 2022. It deliberated on critical energy issues facing Africa and ways to mobilise adequate finance to accelerate energy access and energy security on the Continent, as well expanding innovative mechanisms to increasing climate finance flows to Africa in the context of ‘energy transition’.
Commissioner Abou-Zeid further recalled that African Common Position on Energy Access and Just Transition identifies financing as a critical pillar to achieving Africa’s targets of developing its energy sector along a low-carbon and climate-resilient pathway. “Despite its enormous energy needs and opportunities, Africa is only accessing 3% of climate finance leaving an annual financing gap of US$ 90 billion for its energy access and transition goals. This status quo has to change, and all stakeholders should demonstrate the willingness to make the required policy adjustments that will unlock the flow of financing necessary for energy access and energy transition in Africa.”
Grant funding also needed for energy transition (SAnews)
African Union Launches Transforma Platform to Boost Clean Gas Use in Africa at COP 27 (AU)
The African Union (AU), on the sidelines of COP 27 Climate Change Conference launched the Transition Fuels Oversight & Regulatory Management Accelerator (Transforma Platform), a new combined business, governance, and digital platform to connect African energy regulators, industry actors, and consumers around a common interface to advance Africa’s clean energy and green transformation agenda.
The launch of Transforma platform by the continent’s political and technocratic leadership signals the AU’s commitment to coordinating the search for durable and practical pathways to Africa’s sustainable future. This is germane considering 600 million people, or 43% of the total population, lack access to electricity, most of them in sub‐Saharan Africa. About 970 million people in Africa lack access to clean cocking with the attendant deaths and other health risks.
Transforma is a critical module of the 4D Digital Green Corridor jointly promoted by the AU and its strategic partners mobilized by AfroChampions. In the words of H.E. Yemi Osinbajo, “innovations like the 4D Digital Green Corridor and TRANSFORMA are critical to finance and more broadly, resource mobilization on the continent.”
The Digital Green Corridor creates an “integration highway” for African countries to harmonize regulatory and investment policies in ways that advance the continent’s green transformation by leveraging existing interstate legal frameworks such as the AfCFTA and supranational policy instruments such as the AU-led Green Recovery Action Plan for Africa (GRAP).
Digitalization of natural gas regulatory & safety frameworks, distribution networks, marketplace clearing and settlement mechanisms, and tokenization protocols should greatly advance the long overdue modularization of infrastructure needed to accelerate the rapid uptake of cleaner, cheaper, gas products across the services and manufacturing sectors. By further linking the Transforma platform to the AfCFTA Hub (www.afcfta.app) and the Trillion Dollar Framework, strong synergies with pre-existing AU-backed strategic initiatives to boost regional trade linkages while mobilizing and leveraging trans-frontier capital for Pan-African energy reform.
Can Africa power with renewables as it grows? (DW)
With much of it bathed in sunlight year-round, the continent has 60% of the world’s best solar resources. And it has enough wind potential in a year to meet its electricity demand 250 times over, with resources stretching all the way from Algeria to South Africa. Countries like the Democratic Republic of Congo and Ethiopia already cover more than 80% of their consumption with hydropower — but there is room to produce even more across the continent. Meanwhile, Kenya is a world leader in harnessing geothermal energy.
Though the use of clean power varies greatly across Africa, the continent as a whole still gets almost all of its energy from fossil fuels. As half of the population in sub-Saharan Africa doesn’t have access to electricity, there are hundreds of millions of customers waiting to enter the market.
Other continents electrified off the back of coal, oil, and gas and, to different extents, are now trying to transition to renewables. Could Africa skip fossil fuels and service new consumers with green energy?
GREEN HYDROGEN: The new scramble for Africa: turning the energy crisis into opportunity (Daily Maverick)
In the past two-and-a-half years in South Africa, for instance, a range of mining companies and manufacturers, including Anglo American, Tronox Mineral Sands, Impala Platinum, Rio Tinto, Samancor, Sasol and Glencore, have made massive investments into large-scale renewable energy projects. There is a great opportunity to continue promoting the use of all forms of renewable energy and to explore other forms of clean technologies to boost Africa’s ailing electricity sector.
The United Nations Environment Programme (UNEP) recently released the thirteenth edition of the annual Emissions Gap Report ahead of the 27th Conference of Parties that is taking place in Sharm el-Sheikh, Egypt. As the name suggests, the report highlights the global trends in emissions of greenhouses gases (GHGs) and provides an overview of the gap between the projected emissions by 2030 and the levels to be maintained as per the Paris Agreement in order to limit the global temperature rise to well below 2°C.
The latest report, ‘Closing Window – Climate crisis calls for rapid transformation of societies’ finds that the international community is falling far short of the Paris goals, with no credible pathway to 1.5°C in place. The latest report is a testimony to inaction on the global climate crisis. It noted that despite the decision made in COP26 in 2021 held at Glasgow, UK to strengthen Nationally Determined Contributions (NDCs) for 2030, the progress has been poor.
In 2020, seven countries (China, USA, European Union, India, Indonesia, Brazil, and Russia which are G20 members) and international transport contributed to more than 55% of the total GHG Emissions. Together, G20 nations contributed to 75% of the total emissions in 2020.
The report focuses on Food systems, which account for one-third of all emissions a year in addition to being contributors to other environmental damage like land-use change, biodiversity loss, depletion of freshwater resources, and pollution of aquatic and terrestrial ecosystems. About 39% of this was from agricultural production which includes the production of inputs such as fertilizers.
An analysis by Our World in Data revealed that even if fossil fuel emissions are reduced to zero, the emissions from the food sector alone were enough to raise the temperature to 1.5°C. The United Nation’s Food and Agriculture Organization (FAO), CGIAR and The Rockefeller Foundation are hosting the first official ‘Food and Agriculture Pavilion’ at COP27 to have dedicated discussions on food system and agriculture.
In this regard, the report calls for demand-side dietary changes (including tackling food waste), protection of natural ecosystems, improvements in food production at the farm level and decarbonization of food supply chains which is expected to bring down the emissions to one-third of the current levels by 2050. Else, the emissions are expected to double. Further, changes at individual level and involvement of private sector along with government support like subsidies and tax reforms have been suggested.
Energy crisis puts global climate measures to the test (DW)
While world leaders and negotiators are primarily concerned with the future at the UN climate change conference in Sharm el-Sheikh, Egypt, the latest Climate Change Performance Index is taking stock of the current state of global climate protection measures. The report, released on Monday, is published by environmental NGOs Germanwatch and the New Climate Institute, together with the global Climate Action Network. It assesses the climate protection measures of the European Unionand 60 other countries, which together are responsible for more than 90% of the world’s greenhouse gas emissions.
The global energy crisis sparked by the Russian war in Ukraine clearly shows how dependent the world still is on fossil fuels, said the report’s authors. Among them is Niklas Höhne, founder of the New Climate Institute.
“The energy crisis shows that ambitious climate mitigation is the most reasonable way to move forward economically,” he said. Renewable energies are more cost-effective than any newly built conventional power plant, and investments in energy efficiency have never paid off as they do today, he added.
African and Global Partners Launch Multi-Billion Alliance for Green Infrastructure (AU)
The African Union, the African Development Bank Group and Africa50—in partnership with several global partners—have launched the Alliance for Green Infrastructure in Africa (AGIA), an initiative to help scale and accelerate financing for green infrastructure projects in Africa.
The launch ceremony took place on 9th November on the sidelines of the ongoing 27th annual global climate summit (COP27) in Sharm El-Sheikh, Egypt. The Alliance’s mission is to raise significant capital to accelerate Africa’s just and equitable transition to Net Zero emissions. It has two strategic objectives. The first is to generate a robust pipeline of transformational bankable projects. The second is to catalyze financing at scale and speed for Africa’s infrastructure.
The Alliance for Green Infrastructure in Africa will raise up to $500 million to provide early-stage project development capital. This is capital that will build a robust pipeline of bankable projects, starting with pre-feasibility stage all the way through to commercial and financial close. This is projected to generate up to $10 billion worth of investments in green infrastructure. This will be mobilized from a combination of co-investments, co-financing, risk mitigation and blended finance provided by Alliance members. This capital will also be drawn from other financial institutions and foundations, public and private global and African institutional investors, project sponsors, multilateral development banks’ sovereign operations, and from G-20 bilateral donors.
The Alliance’s focus sectors are energy, transport, water and sanitation, health infrastructure, broadband infrastructure, urban and rural infrastructure. It will support large-scale programs, such as mega solar projects or green hydrogen projects, as well as smaller venture capital initiatives like cleantech projects, energy storage or e-mobility solutions.
An African initiative to increase solar generation capacity to provide 250 million people with electricity access across Africa’s Sahel region for socio-economic development continues to attract financial support from around the world. Launched in 2019 by the African Development Bank Group and its partners, the Desert to Power initiative is designed to make Africa a renewable power house. Desert to Power will develop and provide 10 gigawatts of solar energy by 2030 across 11 countries where 64% of the population lives without electricity – with consequences for education, health and business. The project will positively impact Senegal, Nigeria, Mauritania, Mali, Burkina Faso, Niger, Chad, Sudan, Ethiopia, Djibouti and Eritrea.
At an event held during the 27th United Nations Climate Change Conference in Sharm El Sheikh on Friday, the Global Energy Alliance for People and Planet, represented by its executive director for Africa, Joseph Nganga, announced $35 million in support of Sustainable Energy Fund for Africa (SEFA) under the initiative.
The event — organized by the African Development Bank in the Africa Pavilion at COP27 titled Desert to Power – transforming the Sahel from fragility to resilience and prosperity — brought together government ministers, development partners and private sector representatives to discuss how to facilitate private sector investments In the Sahel.
“Desert to Power is a $20 billion initiative to do 10,000 megawatts of solar power … This will be the largest solar zone in the world and so we want to turn this into a real economic activity … one that will generate productive energy to be used by the countries across the Sahel,” Adesina said.
Sustainable food cold chains reduce waste, fight climate change: UN report (UN News)
These systems are critical to maintaining the quality, nutritional value and safety of food, especially as an estimated 14 per cent of all food produced for human consumption is lost before it even reaches consumers. The increased investment is also required if the world is to meet the challenge of feeding an additional two billion people by mid-century.
The report by the UN Environment Programme (UNEP) and the Food and Agriculture Organization (FAO) was launched at the COP27 climate change conference underway in Sharm El-Sheikh, Egypt. “At a time when the international community must act to address the climate and food crises, sustainable food cold chains can make a massive difference,” said Inger Andersen, the UNEP Executive Director.
“They allow us to reduce food loss, improve food security, slow greenhouse gas emissions, create jobs, reduce poverty and build resilience – all in one fell swoop.”
Sustainable food cold chains can also make an important difference in efforts to achieve the Sustainable Development Goals (SDGs), according to FAO Director-General Dongyu Qu. “All stakeholders can help implement the findings of this report, to transform agrifood systems to be more efficient, more inclusive, more resilient and more sustainable – for better production, better nutrition, a better environment and a better life for all, leaving no one behind,” he said.
The food cold chain has serious implications for climate change and the environment, the report revealed. Emissions from food loss and waste due to lack of refrigeration totalled around one gigatonne of carbon dioxide equivalent in 2017, or roughly two percent of total global greenhouse gas emissions.
Adapt or starve: COP27 spotlights agriculture challenges and solutions in the face of climate change (UN News)
This sentiment echoed through dozens of pavilions and conference rooms in Sharm el-Sheikh on Saturday as COP27 turned its attention to the vital issues of adaptation, agriculture and food systems in the context of climate change. “We need to help rural populations build their resilience to extreme weather events and adapt to a changing climate. If not, we only go from one crisis to the next. Small scale farmers work hard to grow food for us in tough conditions,” Sabrina Dhowre Elba, Goodwill Ambassador for the UN International Fund for Agricultural Development (IFAD), said during a press conference.
“Trillions of dollars were made available to tackle the COVID-19 pandemic and its economic consequences. The same is needed for climate change. The same is needed for sustainable agricultural support. It’s crucial to the well-being and the food security of us all,” she added.
Dina Saleh, the Regional Director of IFAD, explained that failure to help rural populations to adapt could have dangerous consequences, leading to longer poverty, migrations and conflict. “This is why today we are calling on world leaders from developed nations to honour their pledge to provide the $100 billion a year in climate finance to developing nations and to channel half of that to have that amount to climate adaptation,” she underscored.
Moving the climate agenda forward for Africa (UNEP)
On the sidelines of the ongoing 27th United Nations Climate Change Conference (COP 27) in Sharm el Sheikh, the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank Group (IsDB), organized a joint session with United Nations Industrial Development Organization (UNIDO) Egypt titled ‘Egyptian and Sub-Saharan Africa Cotton Traceability for Resilience and Sustainability.
This session highlighted the strategies for boosting the ability of value stream participants to fully realize the potential of the climate-resilient textile and cotton sector in Egypt and Sub-Saharan Africa while increasing competitiveness and integration in regional and global value chains.
Egyptian cotton is mostly renowned for its outstanding physical fiber qualities, exceptional aesthetic performance, and unmatched durability. However, in the Egyptian cotton-textile value chain, cotton is both a contributor and a victim of climate change.
In response to these challenges, the UNIDO multistakeholder project, “The Egyptian Cotton Project,” supported by ITFC, began supporting Egyptian farmers in June 2020 to execute a methodical strategy for sustainable cotton growing as advocated by The Better Cotton Initiative.
During his keynote speech, Eng. Hani Salem Sonbol reiterated- “The African cotton sector has been a key focus of ITFC, particularly in all major producing countries, including Benin, Burkina Faso, Cameroon, Côte d’Ivoire, and Mali with US$ 1.4 billion in financing the cotton sector. Since its inception, ITFC has provided approximately US$7 billion in financing to the food and agriculture sectors. Farmers are one concrete example of how our impact manifests. ITFC also collaborates with UNIDO through the Better Cotton Initiative because of our long-standing involvement in the African cotton sector. Together, we assist brands and retailers in achieving more consistent quality and sourcing their products from Egyptian cotton producers who adhere to national and regulatory agricultural practices.”
Plan to shield people from climate disasters unveiled at COP27 (Reuters)
Months after torrential rain and fast-melting glaciers submerged a third of Pakistan, parts of the country’s southern Sindh and Balochistan provinces still resemble an inland sea.
The disaster has left thousands of families camped out in tents on elevated roadsides, first battling scorching summer heat with little shade - and now needing protection to deal with the winter cold, she said. But just a fifth of an $800-million U.N. aid appeal for the country has been covered so far.
At the COP27 U.N. climate summit in Egypt, a range of new efforts to limit such “loss and damage” - and get disaster-hit countries back on their feet more quickly - are being proposed. On Monday, Germany and other G7 countries, alongside Ghana and the V20 group of vulnerable countries, unveiled plans to launch a “Global Shield” against climate risks.
Local trade news
Why govt is seeking Shs2 trillion new loan (Monitor)
The government has asked potential private sector lenders in the world to advance €500 million (Shs1.9 trillion) to close a 2022/2023 budget gap, adding to an ongoing syndicated Shs1.7 trillion borrowing being arranged through Standard Chartered Bank. In a November 7 public call, Finance minister Matia Kasaija noted that the new credit line that the government is seeking is intended to offset the equivalent of net domestic financing (NDF) approved for the current financial year.
The minister in the call for expression of interest asked any potential creditor to determine the interest rate, but agreed that Uganda will repay the money within a decade, with actual loan servicing starting in the fourth year. He also wants the potential lender to pay the Shs1.9 trillion sought at once and charge no loan arrangement, structuring, legal, agency and other commitment levies.
“[The] government is, therefore, seeking financing partners to structure medium-term and long-term financing using all available financing options excluding Eurobond,” minister Kasaija wrote, adding, “This is, therefore, to request you to submit your expression of interest with detailed term sheet(s) for the proposed financing. Due to strict implementation guidelines, we request you to submit your expression of interest by the closure of November 18.”
Small scale farmers petition government over ban of seed varieties (Monitor)
Small scale farmers in Uganda appealed to the Government to reject the African Union (AU) Seed Harmonization Guidelines in fear that they will sabotage their diversity of crop options which improve their livelihoods and guarantee food security. Through their umbrella body the Eastern and Southern Africa Small Scale Farmers’ Forum (ESAFF), farmers said the national seed regulations generally only focus on crop varieties that are products of formal sector - plant breeding occasioned with bio piracy. Mr Hakim Baliraine, the National Board Chairperson EASAF - Uganda said they intend to collect over five million signatures aimed at protecting farmer managed seed system.
Data collected from a national household survey conducted by the government between 2019 and 2020 indicated that 68 percent of the population is working in agriculture, forestry and fishing sector. If such a guideline is adopted, it will hurt farmers like in Uganda where we are still practising the International Union for the Protection of New Varieties of Plants (UPOV) of 1978, according to Baliraine. Further, he said the guidelines also side-line small scale farmers where harmonisation is not in favour of national interests of previous countries.
Zimbabwe hopes to boost trade with Egypt: Finance Minister (NewZimbabwe)
The Africa Investment Forum is an opportunity for Zimbabwe to attract investments into the country, Finance and Economic Development, Mthuli Ncube has told Daily News Egypt. “We had a very successful visit communicating our message that Zimbabwe is open for business, as Zimbabwean President Emerson Mnangagwa said.” Recently, Mnangagwa called on investors to realise the massive investment opportunities in Zimbabwe and shun negative perceptions of risk.
Ncube explained that Zimbabwe has three projects that were showcased in the forum, the first of which is in the steel sector, which received noticeable support from investors. He added that the second is in the dairy sector and the third is developing a border post in the country’s east.
Freezones, private developer sign MoU to develop special economic zone in Western Region (BusinessGhana)
The Ghana Free Zones Authority (GFZA) has signed a memorandum of understanding (MoU) with a private developer for the development of about 1,500 acres of land located in Yabiw/Shama in the Western Region. Designated under its Special Economic Zones, an amount of between US$250 million and US$300 million is expected to be spent to provide world-class infrastructure such as roads, electricity with a dedicated power plant, sewage treatment plant, container depot, office complex, and residential complex, among others.
The Chief Executive Officer (CEO) of GFZA, Michael Oquaye Jnr who announced this said in addition, the project, when completed, will lead to the creation of thousands of jobs and become another source of foreign exchange for the country. He was speaking at the media launch of the 3rd Annual Investment Week 2022 in Accra.
Partnerships will drive growth in Nigeria’s textile industry - Kern (Businessday)
Chandramouli Kern, consulate general of India, Lagos has urged players in Nigeria’s textile industry to explore joint ventures and partnership with technological companies who have the expertise to measure up to expectations. Kern disclosed this at the Africa Textile Manufacturing and Trade Policy Summit and exhibition 2022 organised by Leoht Africa and held in Lagos
“Going through the history of India, you will see that there were joint ventures with technological companies from the West or other developed countries,” Kern said. “There is no need to do things from scratch by Nigeria, they can build on the expertise of India and they can leap also they can try to enhance the value chain rather than to start from scratch”
“It is common knowledge that without manufacturing a country cannot grow,” Kern continued, saying “Indian companies present will explore the possibility to be able to partner and invest in Nigerian businesses in this exhibition and they can send business proposals. We will be ready to help with technology, training and expertise needed to build a vibrant textile industry in Nigeria.”
How the Central African Republic can move from fragility to inclusive growth (World Bank)
CAR’s political fragility might increase in the coming months and years. Risks include the macro-fiscal uncertainty created by adopting Bitcoin as the legal tender (in April 2022). Other factors could be waning donor appetite, the spillover effects of the war in Ukraine, demographic dynamics, regional disparities in poverty and service delivery, and the intent to amend the constitution to allow the president to run for a third term. Social cohesion and trust are particularly low in provinces, where the lack of opportunities is the highest, fueling frustrations.
As a recent report shows, for CAR to realize its enormous potential, it must address the root causes of fragility by creating jobs, improving the management of its natural resources, and establishing a social contract.
The analysis suggests the following:
Bold and sustained reforms to support long-term growth, promote regional trade, improve competition, and tackle corruption. CAR could accelerate its economic performance, halve extreme poverty, and move to lower-middle-income status by 2050 through structural reforms to boost productivity, human capital, and private sector investment. The African Continental Free Trade Area has enormous potential for the country. To seize it, CAR should remove non-trade barriers, including poor road connections and administrative red tape, facilitate business creation, protect property rights, improve infrastructures such as electricity and ICT, and strengthen the public procurement system. The government should focus on the enforcement of laws and regulations and define sanctions for corruption and fraud by public officials.
Egypt’s balance of trade deficit levels up 0.6% in August 2022 (ZAWYA)
Egypt’s balance of trade deficit inched up by 0.60% during August 2022 to stand at $4.18 billion, compared to $4.15 billion in the same month a year earlier, Akhbar El-Yom cited data by the Central Agency for Public Mobilization and Statistics (CAPMAS).
The country’s exports decreased by 7.60% in August 2022, reaching $3.33 billion, compared to $3.61 billion in August 2021. The Arab world’s most populous nation’s exports of petroleum products went down by 19.80%, crude petroleum by 49%, and raw plastic materials by 3.60%. Egypt’s Imports slumped by 3.20% to $7.51 billion in August 2022, compared to $7.76 billion in the same month in 2021.
The ECA Office for North Africa will hold on 14-18 November 2022 its second capacity development workshop on the Libya AfCFTA national implementation strategy. The African Continental Free Trade Area (AfCFTA), signed in Kigali, Rwanda in 2018 is the world’s largest free trade zone since the creation of the WTO, with the aim of creating a 1.2 billion consumer single market. The AfCFTA can provide Libya with an opportunity to make the most of its hydrocarbon reserves while diversifying its economy and trade partners.
African trade and integration
Implementation of the AfCFTA and Tripartite FTA to Bolster Regional Economic Communities (COMESA)
The implementation of both the regional and the continental free trade area regimes will position the regional economic communities, COMESA, East African Community and Southern Africa Development Community into a formidable economic bloc to collectively exploit the envisaged benefits of Africa’s integration. Addressing the 38th Meeting of the COMESA Trade and Customs experts meeting on 7 – 9 November 2022, Assistant Secretary General of COMESA, Dr Kipyego Cheluget said although the ratification of the Tripartite FTA has not progressed as rapidly as originally envisaged, it remains a commendable effort at RECs consolidation upon which the AfCFTA could build upon.
In this regard, he proposed that the remaining processes under the TFTA should draw lessons from the AfCFTA, especially with regard to the strategies that were used to facilitate its rapid ratification and coming into force.
The experts’ meeting focused on the review of the implementation of regional programs and agreed on policy recommendations to enhance regional integration to be presented to the COMESA policy organs meetings, including the Council of Ministers meeting scheduled on 1st December 2022.
UBA reiterates commitment to development of SMEs across Africa (BusinessAMLive)
The management of United Bank for Africa (UBA) Plc has said that it is committed to the growth of Small and Medium Enterprises (SMEs) across Africa, as evidenced in the increased funding it has provided to such businesses in Nigeria and across Africa.
Muyiwa Akinyemi, deputy managing director, said this while delivering his keynote address at the flag-off of the 2022 Lagos International Trade Fair. UBA has been the lead sponsorship partner for the annual event since 2019.
Speaking on the theme “Connecting Businesses, Creating Value”, Akinyemi explained that armed with the firm belief that SMEs remain the bedrock of any country’s economic development, UBA has pioneered products and services specifically targeted at SMEs and young entrepreneurs towards meeting their financial needs, having access to markets and building capacity.
“We are focused on creating value, connecting and facilitating business across Africa and between Africa with the rest of the world. Already, we have done a trade of about $7.7 billion and Export trade of about $29.4 billion as at August 2022,” he said.
In a challenging trade environment, proactivity and innovation are essential (IOL)
As was the case with most countries, South Africa’s trade took a relatively significant knock during the height of the Covid-19 pandemic and the consequent lockdown responses by government. Initially, imports bore much of the brunt of the lockdowns and border closures, but exports soon followed suit.
While border controls and trade restrictions gradually eased during the course of 2021, it was hoped that the imports and exports would quickly recover from the muted activity that characterised most of 2020. Unfortunately, this wasn’t to be the case, due for the most part to the massive logistics bottlenecks that were created by the pandemic restrictions, many of which have still not been entirely cleared.
Fortunately, these challenges were offset to a certain degree in 2021 by the strong commodities showing in South Africa, with many agri products achieving healthy surpluses and global demand for other South Africa’s commodities keeping prices largely elevated.
It’s likely, however, that this figure would have been even higher were it not for geopolitical tensions simmering over with the advent of the Russia-Ukraine conflict. While neither country is a very significant trade partner to South Africa, the effects of the global downturn in trade of all commodities as a result of the war has undoubtedly filtered through to this country
Of course, there is no benefit to South Africa’s trade sector of waiting in the wings for the Russia-Ukraine conflict to end in order to capitalise on any opportunities that will arise when that happens. It is imperative that we actively seek out new markets now, not only to address the loss, or decline, of trade activity due to the war and the global trade repercussions it has created, but also to mitigate the stellar increases in the costs of transport and logistics, which cannot simply be passed on to consumers indefinitely.
Digital and financial inclusion in Eastern and Southern Africa post-Covid (Huawei)
Most governments and the private sector reacted swiftly to studies on COVID-19 treatment and prevention. Due to the pandemic, government-imposed lockdowns and shutdowns affected the smooth running of brick-and-mortar businesses. Essentially, only agile companies that embraced e-business systems remained viable.
The lack of agility in e-business systems during the pandemic wiped out 4 million jobs in Africa. The situation was even worse for the micro, small and medium enterprises (MSMEs) in the COMESA region (COMESA is the Common Market for Eastern and Southern Africa). So, our team embarked on a research study aimed at assessing digital financial inclusion in the COMESA region through e-business adoption by MSMEs.
The study revealed interesting statistics about the COMESA region that reflected an increase in the usage of digital platforms for business. The dynamic trend of e-business adoption among MSMEs of the COMESA region showed a positive trend towards the adoption of e-business tools/platforms and technologies. This has been shown by the increasing number of MSMEs using e-platforms, electronic devices, and e-business platforms among countries.
The largest proportion of e-business users was found in Kenya, Rwanda, and Zambia. Countries in Southern Africa (Zimbabwe and Eswatini) had a slightly lower adoption rate compared to countries in East Africa (Kenya and Rwanda). The main platforms of e-business in use, in all countries targeted,
Overcoming global challenges of imports and exports (BusinessLIVE)
Businesses are faced with global economic headwinds, supply chain disruptions and increased requirements to align with environmental, social and governance (ESG) considerations. Financial institutions can help businesses better manage these challenges with specifically designed trade finance products, according to Justin Milo, executive, head of Trade SA for Standard Bank Group. “These solutions are not a means to an end in themselves, but are part of a broader solution to promote economic growth and sustainable development in emerging market economies and especially closer to home in Africa.”
COVID-19 hit African tax revenues hard, but increased foreign aid softened the blow (OECD)
After a decade of solid progress in domestic revenue mobilisation, tax revenues in Africa declined between 2019 and 2020 as a result of COVID-19, according to a new report released today. Africa’s average tax-to-GDP ratio declined by 0.3 percentage points (p.p.) in 2020 to 16.0%, reducing the continent’s ability to meet the challenges of higher borrowing costs, rising food insecurity and heightened global economic uncertainty.
Revenue Statistics in Africa 2022 reveals that tax revenues fell by 0.5% in nominal terms between 2019 and 2020 on average across the 31 African countries covered by the report, while GDP rose by 0.2%. Twenty-four of these countries recorded a decline in their tax-to-GDP ratio in 2020 compared to 2019. Tax-to-GDP ratios ranged widely across the continent in 2020, from 5.5% in Nigeria to 32.5% in Tunisia.
AU Seeks ECOWAS’ Support On Free Movement Of Persons (Leadership)
The African Union (AU) has sought the support of the Economic Community of West African States (ECOWAS) with the implementation of the AU Free Movement Protocol. Indications to this development emerged at the weekend when a delegation led by Rita Amukhobu, the Coordinator of Free Movement Programme of the African Union Commission (AUC) paid a working visit to the ECOWAS Commission in Abuja, a statement from the commission said.
The African Development Bank supports COMESA to develop the pharmaceutical industry in the region (COMESA)
The Board of Directors of the African Development Fund, the concessional lending arm of the African Development Bank Group, on 2 November 2022 in Abidjan, approved a $6.63 million grant to the Common Market for Eastern and Southern Africa (COMESA) to develop the pharmaceutical sector in the sub-region. The project, which will be implemented over three years (2023-2025), is institutional support to develop the region’s pharmaceutical industry. In particular, it will build the capacity of pharmaceutical regulatory bodies, product quality control and management systems, and research and development institutions. The aim is to achieve the manufacture and marketing of safe, quality pharmaceutical products, for Covid-19 and other diseases.
Stakeholders call for tapping export potential in Africa market (The Business Standard)
Bangladesh needs to connect with the African countries in sectors where economic complementarities exist, according to experts and stakeholders, as they said the African subcontinent could be the next potential destination for Bangladeshi exports. “Bangladesh is eager to utilise the African economic platforms such as the South African Development Forum, African Continental Free Trade Area Framework and Economic Community of West African States,” said Ambassador Mashfee Binte Shams, secretary (East) of the Ministry of Foreign Affairs, at a seminar in Dhaka on Sunday.
Beyond trade and commerce, she mentioned that Bangladesh looks to increase cooperation on agriculture, research and education, social development, health, IT and ICT, and SME sector.
At the seminar titled “Look Africa: Exploring New Horizons for Bangladesh” and organised by the Bangladesh Institute of International and Strategic Studies (BIISS), she pointed out some stumbling blocks in harnessing the trade potentials.
In FY22, Bangladesh exported goods worth $133.33 million to South Africa as the import was around $185.50 million, according to the Export Promotion Bureau. In that year, Bangladesh’s exports to Egypt and Kenya were only $51.71 million and $20.28 million respectively. The export basket includes readymade garments, ceramics, pharmaceuticals, jute, food products, light engineering items, electronic products and home appliances.
Asked why there is no remarkable success in contract farming in African countries yet, the foreign secretary said, “It takes time. Besides, there must be a structure first. We are working on it.”
Global economy
WTO report shows G20 trade restrictions increasing amidst economic challenges (WTO)
“While some trade-restrictive measures have been lifted by G20 countries, the report indicates that the trend has been going in the wrong direction. Export restrictions contribute to shortages, price volatility, and uncertainty. G20 economies must build on their collective pledges from the 12th Ministerial Conference and demonstrate leadership to keep markets open and predictable, so that food and fertilizer in particular can flow to where they are needed,” said WTO Director-General Ngozi Okonjo-Iweala, who will be attending the G20 Leaders’ Summit in Bali, Indonesia, on 15-16 November.
The report indicates that supply chains on the whole have thus far proved to be resilient, despite the war in Ukraine, the continuing impacts of the COVID-19 pandemic, the highest inflation many countries have experienced in decades, and the impacts of monetary tightening by central banks seeking to limit price increases. That said, specific industries and regions have been differently impacted.
Global Food Security Forum day one: The top food security solutions for G20 leaders to watch (Atlantic Council)
And so what I’d like to do with the session today—because we will continue this discussion tomorrow—is to kind of draw up a list of ideas where they can be outline or in detail that we can perhaps hope to get the attention of the participants in the G20, and in particular I believe the Indonesian government, which is the host of the conference, if only because I know that President Jokowi himself has a real interest in the issue of food security. I’m conscious, also, that the immediate problem, of course, is the supply of particularly natural gas and ammonia nitrate, which is actually causing the production of fertilizers to decline drastically and for the price to go up.
WTO, FAO study calls for global action to improve access to fertilizers, avert food crisis (WTO)
Factors such as the war in Ukraine, high inflation, supply chain disruptions and the global economic downturn have led to soaring prices for fertilizers and agricultural products, notes the study titled “Global fertilizer markets and policies: a joint FAO/WTO mapping exercise”, resulting in limited availability in many countries. The study forecasts that shortages in fertilizers will likely persist into 2023, threatening agricultural production and food security in Africa in particular, where farmers are heavily dependent on imported agricultural inputs.
The study urges G20 governments to deploy all policy measures available to deal with the fertilizer crisis, underlining the need to make “every effort” to keep trade in fertilizers open so that supplies reach the countries in most need of them. The study recommends, in particular, that G20 governments keep food, feed and fertilizer markets open and minimize disruptions to trade in fertilizers, including refraining from export restrictions inconsistent with WTO rules. It stresses the need to ensure access to fertilizers for the most vulnerable countries, including through mobilizing international financial support and leveraging risk management tools, such as fertilizer contract swaps to hedge against extreme price volatility. In addition, it underlines the need to increase market and policy transparency, through G20 members’ timely and complete notifications of trade measures to the WTO and enhanced data and policy monitoring at the FAO and through the G20 Agriculture Market Information System (AMIS).
pdf Global Fertiliser Markets and Policies: A Joint FAO/WTO Mapping Exercise (970 KB)
G20 hosts Official Launch of The Pandemic Fund (World Bank)
The G20 Presidency of Indonesia, in partnership with the Pandemic Fund secretariat, today officially launched the Pandemic Fund at a high-level event, opened by Joko Widodo, President of Indonesia, on the margins of the G20 Joint Finance and Health Ministers’ Meeting.
Drawing on lessons from COVID-19, which exposed huge weaknesses and under investment in pandemic prevention, preparedness and response (PPR), particularly in low- and middle-income countries, the Pandemic Fund is intended to strengthen the capacity of these countries to mitigate the risks of future global health threats. It will provide a dedicated stream of long-term financing for PPR and address critical gaps through investments and technical support at the national, regional, and global levels. The Pandemic Fund is also expected to incentivize countries to prioritize this agenda and increase their own efforts.
“This is the first time the international community has come together around a funding mechanism dedicated to investing in pandemic prevention, preparedness, and response in developing countries - a testament to multilateralism, said Dr. Chatib Basri, co-Chair of the Pandemic Fund Governing Board. “The Pandemic Fund has a unique and vital role to play in making the world safer. PPR is a global public good that benefits all. Every dollar we mobilize to invest in PPR now in low- and middle-income countries will save lives and financial costs and lead to a more resilient world for years to come.”
Slowing global economic growth is increasingly evident high frequency data show (IMF Blog)
Global economic growth prospects are confronting a unique mix of headwinds, including from Russia’s invasion of Ukraine, interest rate increases to contain inflation, and lingering pandemic effects such as China’s lockdowns and disruptions in supply chains.
In turn, our latest World Economic Outlook, released last month, lowered our global growth forecast for next year to 2.7 percent, and we expect countries accounting for more than one third of global output to contract during part of this year or next. Moreover, as we discuss in our latest report prepared for the Group of Twenty, recent high-frequency indicators confirm that the outlook is gloomier.
While gross domestic product releases for the third quarter surprised on the upside in some major economies, October PMI releases point to weakness in the fourth quarter, particularly in Europe. In China, intermittent pandemic lockdowns and the struggling real estate sector are contributing to a slowdown that can be seen not only in PMI data but also in investment, industrial production, and retail sales. This will inevitably have a significant impact on other economies due to China’s large role in trade.
Despite growing evidence of a global slowdown, policymakers should continue to prioritize containing inflation, which is contributing to a cost-of-living crisis, hurting low-income and vulnerable groups the most. As our G20 report emphasizes, the macroeconomic policy environment is unusually uncertain.
Related News
tralac Daily News
COP27 and related news
African perspectives on climate change research (Nature.com)
The 27th Conference of the Parties (COP27) is being held in November 2022 in Sharm el-Sheikh, Egypt. Having a climate summit hosted in an African country makes it timely to highlight climate change research from the continent. We asked a selection of researchers to share their thoughts on current research questions and how they affect African responses to climate change.
The countries of Africa have contributed comparatively little to anthropogenic emissions, yet the continent feels the impacts of global warming in many different ways, with changes in hydroclimate, biodiversity and wildfire dynamics already visible today. These changes happen simultaneously with considerable societal and economic transformations in many countries. Thus, it is no wonder that much exciting research is conducted on the continent, much of which is important far beyond the respective regions. In this Viewpoint, nine researchers from seven different countries introduce what they see as the most pressing research in their field and region, discuss open questions and propose ways forward to translate this research into climate action.
Afreximbank President calls for innovation to capture climate adaptation finance in Africa (Afreximbank)
Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, on November 8th 2022, joined a Roundtable on ‘Innovative Finance for Climate and Development” at the COP27 World Leaders’ Summit. In his remarks, Prof. Oramah stressed the urgent need for adequate funding in order to properly address climate issues in Africa, noting the large gap between actual needs and available funding. “The Centre for Global Development suggests that the required financing could be in excess of 1 trillion US dollars annually. Nonetheless, the continent receives less than 28 billion US dollars of the required funds for climate adaptation and mitigation investments,” he pointed out.
Urging Africa to develop instruments and programmes that can facilitate resource mobilisation for climate change adaptation, Prof. Oramah highlighted the Liquidity and Sustainable Facility (LSF), developed by the United Nations Economic Commission for Africa in partnership with Afreximbank, as one such innovative instrument that can facilitate access by African economies to the global debt capital markets at reduced cost while incentivising the issuance of sustainable and green bonds.
AAAP Chapter in the State and Trends Report (AfDB)
The Africa Adaptation Acceleration Program (AAAP) is Africa’s response to the impacts of the climate crisis. This flagship program for Africa has been endorsed at the largest-ever gathering of the African Heads of State and Government focused on adaptation, and welcomed by President Ali Bongo Ondimba of Gabon for actualizing the vision of the Africa Adaptation Initiative (AAI). The AAAP delivers on the ground to support African countries for a faster, stronger post-COVID-19 economic recovery based on climateresilient development pathways.
African G20 seat to help push rich nations on climate pledges (Engineering News)
The African Union (AU) expects to officially join the Group of 20 (G20) nations this month, providing the continent with another seat at the table with some of the world’s biggest polluters as it confronts the fallout from global warming. The continental group aims to use the opportunity to call on rich nations to honor their promises to tackle climate change, including providing developing countries with $100-billion in financing each year, said Macky Sall, the President of Senegal who holds the AU’s rotating chairmanship. G20 nations are responsible for 80% of global emissions, while Africa accounts for less than 4%.
Climate Change and Development: Expert Views on Achieving a Just Trans (IFC)
Dirk Forrister, President and CEO, International Emissions Trading Association (IETA) “I represent a large segment of the business community that’s committed to using carbon markets for scaling up action. Everybody needs help getting where they need to go, nobody can get there alone. You’ve got to have partners, whether it’s technology partners, natural climate removal partners, cross border part
Finance for climate action: scaling up investment for climate and development (UNECA)
This paper follows from the logic of delivering on the goals of the Paris Agreement and the Glasgow Pact. The paper is intended to provide a framework for finance for climate action covering the overall needs for the comprehensive approach embodied in the Paris Agreement and UNFCCC. All the elements are necessary and urgent; it is a complementary and mutually supportive package. Most of the actions must start now; it is the science and the world’s perilous condition that set the urgency and timing. The paper also looks ahead to the coming decade and beyond. We do not attempt to provide great detail on every element of the package, but we are clear that there is a practical way forward on each.
COP27: Climate-resilient transport systems are critical for long-term development (UNECA)
Acting Executive Secretary of the UN Economic Commission for Africa (ECA), Antonio Pedro, highlights how important investing in long-term climate resilient infrastructure is for Landlocked Developing Countries (LLDCs), particularly transport systems, during a COP27 side event on Promoting Resilience and Sustainability of Transport Systems in Landlocked Developing Countries.
Global leaders urged to scale up support for the Great Blue Wall initiative (Africa Renewal)
The event, which focused on the nexus of climate change, nature conservation, and the blue economy, showcased the first-of-its-kind impact-driven regional initiative - the GBW - to scale up and accelerate ocean-climate action in Africa. It also showed how critical international events can be steppingstones towards achieving the GBW objectives; and called on parties and partners for support and partnership. African Union Commissioner for Agriculture, Rural Development, Blue Economy, and Sustainable Environment, Josefa Sacko, underscored the importance of collaboration and African-led solutions to African problems.
Global Investment Trends Monitor, No. 43 (UNCTAD)
DG Okonjo-Iweala: Make trade and investment a key part of delivering on climate action (WTO)
“We need to build a coherent framework of trade and investment policies supported by roadmaps that can accelerate the energy transition and boost re-investments,” the Director-General said. “Climate change adaptation requires significant infrastructure investment to increase resilience and reduce vulnerabilities, and the transition to a low-carbon global economy will generate enormous investment, employment, and growth opportunities.”
Aid for trade should be a catalyst for climate finance (Trade for Development News)
Least Developed Countries (LDCs) emit the lowest level of greenhouse gases but are disproportionately affected by their effects. When it comes to addressing climate-induced vulnerabilities, finance is a major obstacle. In Africa, which houses 33 of the 46 LDCs, the UN estimates that about USD 2.4 trillion is needed to pay for measures to address climate-induced challenges. The Asia-Pacific region needs about USD 3.2 trillion. There are at least three mechanisms from which LDCs can access funding: the Green Climate Fund, the LDC Fund, and the Adaptation Fund. But LDCs have struggled to access these resource due to complexity, uncertainty and fragmentation, as shown by an analysis. A commitment by developed countries to raise USD 100 billion of public and private climate finance to LDCs has fallen short. Private climate finance to LDCs, though rising in recent years, still accounts for only 7% of all climate finance mobilized.
Other funding mechanisms must, therefore, be explored to fill the gap, for which Aid for Trade (AFT) could be a catalytic contributor. Launched in 2006, the Aid for Trade (AFT) Initiative has so far helped channel US$ 556 billion between 2006 and 2020 in official development assistance resources (ODA) resources for trade capacity building. Of this US$ 152 billion, accounting for 27.34% of the total disbursement, went to LDCs.
However, AFT is a limited source of financing for LDCs and could remain so due to shifting donor priorities, including due to Covid-19, climate change, and geopolitical tensions. Therefore, AFT should ideally be used as a catalytic instrument to mobilize other means of financing, including climate finance.
COP27: New industry framework to measure sustainability of trade transactions (ICC)
The International Chamber of Commerce (ICC) has published a pilot version of the first-ever industry framework to assess the sustainability performance of trade transactions. The “Wave 1” framework is the product of a year-long consultation with banks, corporates and technology providers — in partnership with Boston Consulting Group — based on the roadmap announced by ICC at the Glasgow climate summit. The new ICC framework sets out an agreed industry definition of sustainable trade – taking into account both environmental and socio-economic factors. It also embeds an approach that covers the entire lifecycle of an international trade transaction across five different dimensions – from the buyer and supplier to the nature and purpose of the goods or services sold.
Raelene Martin, ICC Head of Sustainability, said: “We have been careful to ensure that this initial framework is immediately implementable – making use of recognized standards, data and technology that are readily available to banks and corporates. This will allow us to test the framework in a real-world setting and build a more comprehensive view on the sustainability of global the value chain over time.”
Report: The collective energy transition ambition to date is not enough (ESI Africa)
A recently released report by the International Renewable Energy Agency (IRENA) clearly shows that the collective level of energy transition ambition to date is not enough, despite the Glasgow Climate Pact to upgrade 2030 targets in national pledges. Renewables are the backbone of the energy transition and a viable climate solution. Yet out of the 183 parties to the Paris Agreement with renewable energy components in their Nationally Determined Commitments (NDCs), only 143 have quantified targets, with the vast majority focusing on the power sector. Only 12 countries had committed to a percentage of renewables in their overall energy mixes.
Renewable Energy Targets in 2022: A guide to design, released at the UN Climate Change Conference COP27, assesses the level of renewable energy ambition in national climate pledges and benchmarks targets against the global climate goal of limiting temperature rise to 1.5°C.
“There is a need for real urgency. Despite some progress, the energy transition is far from being on track,” IRENA’s Director-General Francesco La Camera added. “Any near-term shortfall in action will further reduce the chance of keeping 1.5°C within reach. Under the COP27 slogan ‘together for implementation,’ we must move from promises to concrete solutions to benefit people and communities on the ground.”
COP27: Morocco & European partners agree on sustainable electricity trade roadmap (The North Africa Post)
Morocco and its European partners (France, Germany, Portugal and Spain) have sealed the “Sustainable Electricity Trade Roadmap” on the sidelines of the COP27 climate change summit taking place in Sharm El Sheikh, Egypt. The five countries recognize the benefits of regional electricity market integration. This ambitious plan had been disclosed during COP22 held in Marrakesh in 2016. The initiative aims to facilitate the ‘mutually beneficial’ exchanges of renewable electricity between Morocco and the four EU countries through the gradual integration of their electricity markets.
The goal is to facilitate cross-border trade from producers of renewable electricity to corporate consumers of that electricity, under power purchase agreements (PPA) within the SET countries.
After setting out a clear pathway for electricity exchanges and identifying investments, processes and procedures for sustainable electricity trade, the five partner countries expect strong interest from companies which consume large amounts of electricity and from renewable energy companies.
Local news
SA clearing economic growth impediments, says Godongwana (SAnews)
Finance Minister, Enoch Godongwana, has called on businesses leaders in Southern Africa and Europe to strengthen investment, and support industrialisation and the development of sustainable and resilient value and supply chains in the two regions. The Minister made the remarks while opening the 9th Southern Africa/Europe CEO Dialogue in Johannesburg on Thursday. For its part, Godongwana said the South African government is implementing a series of interventions aimed at untangling several challenges stifling the country’s economic growth prospects.
In response to present day challenges, Godongwana said government’s focus has been on the implementation of structural reforms to improve competitiveness, industrial policy to boost manufacturing and measures to strengthen the capacity of the State.
“On structural reforms, we are creating a competitive energy market, dealing with inefficiencies in our ports and rail network, addressing our visa regime to attract skills and investments and are reforming our water and telecommunications sectors. Work continues to build a capable and developmental State, which is a necessary precondition for inclusive growth,” he said.
Manufacturing production up 2.9% y/y in Sept (Engineering News)
Manufacturing production increased by 2.9% year-on-year in September, with the largest positive contributions made by the motor vehicles, parts and accessories and other transport equipment (43.2% and contributing 3.7 percentage points); and food and beverage (8.1% and contributing 1.9 percentage points) sectors, Statistics South Africa (Stats SA) reports. The largest negative contribution was made by the petroleum, chemical products, rubber and plastic products division (-9.8% and contributing -2.1 percentage points).
South Africa’s transmission infrastructure must urgently be strengthened, extended (Engineering News)
It is vital that South Africa’s transmission infrastructure be strengthened and bolstered, as the country pursues new renewable energy technologies and these are added into the mix, and as State-owned utility Eskom undertakes its unbundling. The was a key message from a panel discussion during industry organisation the South African National Energy Association’s (SANEA’s) 2022 conference.
Itac stresses provisional nature of newly imposed duties on imported french fries (Engineering News)
The International Trade Administration Commission of South Africa (Itac) has responded to trade consultant XA Global Trade Advisors’ call on government to conduct an urgent review of the impact of import duties on the increasing cost of food and to remove newly imposed duties on imported french fries, as reported earlier this month by Engineering News. As noted in the November 2 article, XA said its call on government came on the back of the recent imposition of provisional duties on frozen fries imported or originating from Belgium, Germany and the Netherlands. According to XA, this imposition was self-initiated by Itac, rather than being requested by industry.
“Anti-dumping action is a critical instrument to protect jobs and industries against unfair competition from abroad. Dumping occurs in a situation where companies export their goods to foreign markets at prices (export price) lower than what they charge for the same product in their home market (normal value). “Thus, if the export price is lower than the normal value, dumping has occurred. When dumping causes material injury, countries are entitled to act in terms of the WTO rules. The idea is to level the playing field between domestic producers and foreign competition,” Itac explains.
Zimbabwe Scales Up Industrial Growth, Economic Drive (263.chat)
Zimbabwe is scaling up its domestic value chain development drive as a key to robust economic transformation and trade, Industry and Commerce Permanent Secretary, Mavis Sibanda has said. In a speech read on her behalf by Denford Nhema, a senior director in the ministry of industry and commerce, during a recent value chain review workshop in Bulawayo, Sibanda said government was prioritising investments in value addition and production of sophisticated manufactured products, taking advantage of the country’s endowments and innovations from universities. “The National Development Strategy (NDS1) prioritises value chain development where 10 priority value chains have been identified for industrial growth and structural transformation,” she said.
Kenya defers $699m loan repayments as debt pressure high (The East African)
Kenya failed to meet KSh84.6 billion ($695.4 million) debt repayment obligations in the year to June due to a cash crunch and instead carried over the payments to the current fiscal year. The public debt rose to KSh8.6 trillion ($70.7 billion) adding more burden on service costs, with more than KSh945 billion ($7.8 billion) used to pay domestic and external lenders in the 2021/22 financial year. In its latest review of the progress on implementing projects under its 38-month credit scheme, the International Monetary Fund (IMF) said Kenya failed to pay 0.7 per cent of the country’s GDP to external creditors.
The IMF said while Kenya grew its tax revenue and cut budget deficits, the country’s debt pressures remained high. The lender added that a mix of factors, including huge amounts spent on subsidising fuel, high inflation and disruptions in global supply chains drained Kenya’s efforts on growing revenue and cutting the budget deficit. “Significant unbudgeted spending in the early months of this fiscal year, much of it for fuel subsidies, posed an additional challenge. There has been progress on fiscal adjustment needed to address debt vulnerabilities though pressure remains elevated,” the lender said.
IMF Staff Completes 2022 Article IV Mission to Morocco (IMF)
“The Moroccan economy has experienced a confluence of negative shocks in 2022 that have halted the rapid rebound after the pandemic. The drought impacted agricultural production, while the terms-of-trade shocks from Russia’s invasion of Ukraine fueled inflation and reduced purchasing power. The recovery of tourism, strong remittances, and resilient exports have partially offset these shocks. GDP growth is projected at around 1¼ percent in 2022 and the current account deficit is expected to widen to around 4¼ percent of GDP. Assuming a gradual improvement of external conditions and an average agricultural season, growth should accelerate to around 3 percent next year and the external deficit should narrow to around 3½ percent of GDP, but exceptional uncertainty clouds the outlook.
New Report by the World Bank Identifies Key Challenges and Opportunities for Tunisia’s Development (World Bank)
The World Bank has released its second Systematic Country Diagnostic (SCD) report for Tunisia, titled Rebuilding Trust and Meeting Aspirations for a More Prosperous and Inclusive Tunisia, following the first edition produced in 2015.These reports are produced for partner countries every five years, thus allowing the identification of key challenges and opportunities to accelerate progress in rebuilding trust, meeting aspirations, and ultimately contributing to the World Bank Group’s twin goals of ending absolute poverty and sustainably boosting shared prosperity.
The SCD takes an overview of developments in Tunisia over the past ten years, including international benchmarks and medium-term forward-looking analyses. The CSP therefore does not focus extensively on recent events, but rather seeks to place them in the context of underlying trends in equitable growth, poverty reduction, and state capacity. The report discusses the context and record of the past decade before turning to the identification of four prospective pathways for Tunisia in terms of restoring confidence, responding to citizens’ aspirations, and possible responses to the key challenges facing Tunisia.
Strategically located Congo has raw materials required to become leading fertiliser hub (Engineering News)
Strategically located Republic of Congo, which is endowed with the key required raw materials, is poised to be a world leader in fertiliser production. This is the view of Stéphane Rigny, the executive chairperson of Kanga Potash, which has received its licence to mine and produce potash in the country located on the west coast of Central Africa, to the west of the mighty Congo river.
“The Republic of Congo will become a world leader in the production of fertilisers,” is Rigny’s forecast. “We have discovered the thickest carnallite seams ever drilled anywhere in the world. The seams of recoverable carnallite are in the order of 210 m thick,” added Rigny.
Algeria willing to explore opportunities in Ghana – Ambassador (Business Ghana)
Algeria has said that it is willing to explore all opportunities to give its relations with Ghana, a substantial economic content, especially in terms of trade and investment. It said it was hopeful that such a relation would help to address the major challenges of food security, energy transition, and climate change and adaptation.
The Algerian Ambassador to Ghana, Ali Redjel, who addressed the 68th National Day of Algeria in Accra last Friday, said with its enormous economic potentials and wide-ranging development plans, Ghana was poised to become a hub on the road to African economic integration.
He said for its part, Algeria — driven by the objectives of the African agenda 2063 — had resolutely committed itself to key projects with African countries in the fields of energy, transport, telecommunication and the diversification of trade, with the ultimate goal of making the integration of Africa effective.
African trade and integration
African integration integral for the continent – President Ramaphosa (SAnews)
President Cyril Ramaphosa says the time has come for the African continent to integrate and work more closely together. The President was speaking at the Kenya-South Africa Business Forum held on Wednesday evening in the East African country where he is on an official state visit. “For us to surge forward, to address the issue of integration, it is about time that indeed Africa is more integrated. When we look at other continents, especially Europe, their inter trade is up to 70% and ours is a paltry less than 20%.
“Right at the outset of the pandemic…we developed an African strategy of how to address and to approach COVID-19. No other continent that I know of…was able to develop as good a strategy as we did and that spoke to our integration.
“When you go into the markets that we have…I often begin looking where these goods are made. And I get appalled when I realise that goods which we could have made ourselves on the continent are imported from other environments in the world,” he said. The President cited the COVID-19 pandemic and how the African continent worked together as an example of how integration can be achieved.
AfCFTA: OTUWA, ITUC-Africa gear to protect workers’, trade unions’ rights (Tribune Online)
Organisation of Trade Union of West Africa (OTUWA) and ITUC-Africa have raised alarm on the possibility of the liberalisation of Africa trade laws through African Continental Free Trade Area (AfCFTA) to lead to retrenchment and a situation where foreign investors will under any guise or agreement hamper the existence of trade unionism, collective bargaining or create conditions that may warrant workers being paid less salaries
“It is important that we do not allow a situation where efforts to liberalise our trade laws lead to retrenchment and situations where companies that are coming in to do investment in each of our 55 countries hide under the flexibility that may be created by the agreement to allow trade unions to exist in their companies, refuse to allow collective bargaining and create conditions where workers are paid less salaries than they receive currently,” said OTUWA General Secretary, Comrade John Oda.
AfCFTA will forge collaborations among e-commerce firms, accelerate Africa’s growth – Alerzo CEO (The Guardian Nigeria)
At the just concluded Africa Fintech Summit held in Cape Town, South Africa, Adewale Opaleye, the founder and group chief executive officer of Alerzo posited that the African Continental Free Trade Agreement (AfCFTA) will forge collaborations among e-commerce platforms on the continent and accelerate the continent’s economic growth. He made the disclosure during a panel discussion titled “Fintech’s Role in eCommerce, Trade, & Commodities under AfCFTA.” Opaleye argued that for AfCFTA to work, certain structural trade barriers must be reviewed.
“The trade pact is indeed good for Nigeria’s economy and that of Africa. For it to work, certain structural trade barriers must be reviewed. We have to review the cross border tariffs so that exportation of commodities from one African country to another becomes seamless and more attractive. The right trade agreements and right tariffs – both cross border tariffs and taxational cross borders – will effortlessly forge collaborations among e-commerce players in Africa,” he added.
Building Economic Resilience through Sustainable Investments (This Day)
To fast track economic development and prosperity of Africa, economists and public policy experts are calling for increased sustainable investment. The advice formed the crux of the discourse at the Africa Investment Forum, in Abidjan recently.
The future of the African economy is one that would be driven by huge investments, not aid from the West. The era of aid from the West is fast becoming a mirage. Therefore African governments should increasingly canvass for investments across all sectors of the economy rather than going cap in hand to the West to beg for aid.
On a positive note, statistics show that Africa has shown resilient recovery from the COVID-19 pandemic. Foreign direct investments in Africa declined from $47 billion in 2019 to $40 billion in 2020 because of COVID-19. The continent recovered in 2021, as Foreign Direct Investments (FDI) rose to $83 billion, doubling the flows in 2020. By 2050, Africa will account for over one quarter of the world’s population. The continent has the largest sources of renewable energy in the world. She has 65 percent of the uncultivated arable land left to feed the world. The future of electric cars in the world depends on Africa because it has the largest sources of cobalt in the world, with massive sources of lithium in Zimbabwe, Namibia, Ghana, Mali, and Democratic Republic of Congo.
At the 2022 African Investment Forum, in Abidjan, Cote D’ Ivorie, the need for African governments to drive more investments into their economy and tap opportunities into new opportunities was highlighted. This time, member countries were urged to seek new opportunities for investments in Africa, to prospect, to identify, and to invest in bankable projects.
President of the African Development Bank Group, (AfDB) Dr. Akinwunmi Adesina, had said at a virtual Africa Investment Forum held in March this year that the bank secured $15.6 billion in investment interest for the construction of the Lagos-Abidjan Highway. He also stated that the highway, which carries 75 per cent of trade in the West Africa region, would help unleash greater growth, trade, and investment across the region.
EAC to enhance Information and Communication Technologies in the Region (RegionWeek)
The 9th East African Internet Governance Forum (EAIGF) 2022 kicked off today Thursday 10th November, 2022 at East African Community Headquarters Arusha, Tanzania under the theme “A resilient internet for a shared common knowledge in East Africa”. At the two-day Forum, Eng .Steven Mlote Deputy Secretary General of the East African Community (EAC) said that the EAC has to set a target penetration of internet in the region. “The EAC Vision 2050 has set a target to attain 95% penetration of Internet and mobile networks in the region, and 67% of individuals in East Africa using the Internet by the year 2050,” said Eng .Steven Mlote stated DSG of EAC.
According to Arusha Regional Commissioner, John Mongella calls for the availability of ICT content, applications, and services in local languages if ICT is to be relevant and useful to the communities and groups targeted by ICT projects or policies.
Develop locally relevant content and software, ICT experts in East African urged (EAC)
New bank notes for Central Africa region to be launched (The East African)
The Bank of Central African States (BEAC), the common bank for the six-member Central African Economic and Monetary Community (CEMAC) will release new banknotes mid-December. The decision to circulate the new range of banknotes of FCFA 500, 1,000, 2,000, 5,000 and 10,000 was reached during an extraordinary session of the Ministerial Committee of the Central African Monetary Union (UMAC) held on November 7, the body said in a release on Tuesday.
The Africa Automotive Show will take place in Abidjan, Cote d’Ivoire as part of the 3rd Intra African Trade Fair (IATF2023) from November 21-27, 2023, the organisers have announced. As the vision for automotive industrialisation and growth of Africa materialises, the Africa Automotive Show is the ideal platform for all role-players in the automotive value chain to connect from across the continent and globally.
“The aim is for the Africa Automotive Show to be the single most important trade and business development gathering for all automotive role-players, from raw material suppliers, vehicle and component manufacturers, dealers, importers, aftermarket parts manufacturers and suppliers as well as those from the financial and allied industries – from all parts of the continent,’’ says Africa Automotive Show Director Andrew Binning.
“As the event is focussed on trade and partnerships promoting the development of regional automotive value-chains, participants representing all aspects of the automotive value-chain will be attending the week-long event in Cote d’Ivoire next year. “ Binning said.
According to the release signed by the president of committee Herve Ndoba, UMAC, which oversees the functions of bank whose headquarters are Yaounde, Cameroon, had approved the specimens of the 2020 generation of banknotes that will go into circulation from December 15. It had earlier approved the production of the banknotes in 2019.
Global economy
New Research: Economic Viability of Electric Vehicles is Strong and Improving in Many Developing Countries (World Bank)
New research from the World Bank finds feasible entry points to an electric mobility transition in developing countries. Electric buses, which cover long mileage and high occupancy, and electric two- and three-wheeled vehicles, which provide last-mile connectivity, are emerging as cost-effective starting points that also bring development benefits. Electrification of transport is one of the most talked about instruments to set the world on a net-zero carbon trajectory. For the low-emitting developing countries, transitioning from conventional vehicles to electric vehicles (EVs) brings additional benefits: improved local air quality, last-mile connectivity in remote places, and reduced dependency on imported fuel. Despite these advantages, they remain a relative rarity in developing countries, and most of the world’s 6.6 million EV sales in 2021 were concentrated in major global markets such as China, Europe and the United States. Electric vehicles come at a cost premium, sometimes more than 70% compared to conventional vehicles, creating a financial hurdle for many consumers in developing countries.
But the World Bank’s new report, The Economics of E-Mobility for Passenger Transportation, found that in many markets, the savings in fuel and maintenance costs accrued over the life of an EV more than offsets the relatively high purchase price. Further, when health and environmental benefits were factored in and monetized, the economic case for e-mobility was already strong in about half the countries studied. The viability of electric vehicles is expected to further improve between now and 2030 as prices may continue to drop and charging infrastructure may become more ubiquitous.
WHO, WIPO, WTO to hold technical symposium on response, preparedness to future pandemics (WHO)
The World Health Organization (WHO), the World Intellectual Property Organization (WIPO) and the World Trade Organization (WTO) will hold on 16 December a joint technical symposium on “COVID-19 Pandemic: Response, Preparedness, Resilience”. The event will take place in hybrid form at WIPO headquarters.
The coronavirus disease 2019 (COVID-19) pandemic is an extraordinary global public health crisis affecting people and populations around the globe and involving a broad range of policy areas. Large-scale efforts since early 2020 to develop effective treatments, diagnostics, and vaccines resulted in the approval of the first vaccines in late 2020. These efforts highlighted the urgent need for a response along the entire value chain of COVID-19 related health technologies, ranging from research and development of those technologies to their medical regulation, procurement, distribution and responsible use.
The objective of the Symposium is to examine key challenges of the COVID-19 pandemic experienced within the frameworks of health, trade and intellectual property (IP) and discuss the way forward to build resilience to be better prepared for future pandemics.
Related News
tralac Daily News
COP27 updates
New report: African countries face 34% GDP hit due to climate change even at 1.5ºC of global heating (IOL)
A study published by Christian Aid highlights the devastating economic impact climate change will inflict on the African continent. The analysis in the report, titled “The cost to Africa: drastic economic damage from climate change”, was led by Marina Andrijevic, an economist at the International Institute for Applied Systems Analysis in Vienna. By 2050 and 2100 the economies of these countries are still expected to be higher than they are today. This study highlights the amount of damage caused to their GDP by climate change,
Small and medium-sized enterprises are essential engines for growth and play a key role in creating jobs and supporting sustainable livelihoods. Yet, the financing gap for SMEs, particularly in emerging markets, is widening. Climate change has become an increasing concern, especially for small businesses. As the effects of climate change intensify, people around the world are feeling the pressure of financial constraints, greater risk and an increase living costs. These challenges are even more complex in developing countries. Micro, small, and medium-sized enterprises (MSMEs) are the backbone of Africa’s job creation, economic growth, and development. According to the International Finance Cooperation, MSMEs account for up to 90% of all businesses in African markets and remain one of the main sources of employment. They’re important drivers of employment and entrepreneurship for women, youth and vulnerable groups.
To highlight the contributions of these enterprises, the United Nations General Assembly designated June 27 as the Micro-, Small, and Medium-sized Enterprises Day, recognising the important role these enterprises play in sustainable development. However, the majority of businesses in Sub-Saharan Africa are micro-enterprises and they need access to capital for them to thrive and grow.
“So where do we go from here, I would say we need to look at the wider ecosystem. So we look at the market charges, technology, access to finance, legal changes, and requirements of what small businesses really need. A competitiveness assessment tool that has been launched is a very important tool because it looks at what are the necessary mechanisms that need to be put in place for companies to meet their actual current agricultural impact. Pakistan, for example, we’re doing a U.S.$60 million programme with FAO that has actually trained over 40,000 farmers. We’ve also been looking at Ghana, where we’ve actually helped small farmers increase their yield and revenue by 22% overall”, Pamela-Coke-Hamilton, Executive Director of the International Trade Centre said.
Global leaders on Tuesday rallied around climate adaptation for Africa. They attended the Africa Adaptation Leaders’ Event, convened by African Union Chair President Macky Sall of Senegal, Global Center on Adaptation CEO Patrick Verkooijen, and African Development Bank Group President Akinwumi Adesina. The event took place at the global climate summit (COP27) in Sharm El-Sheikh, Egypt. It underscored the critical need for climate adaptation in Africa and responded to the call for the capitalization of the Africa Adaptation Acceleration Program (AAAP).
“This is a pivotal step in the fight against climate change,” African Union Chair President Macky Sall said. “The commitments made by Africa’s partners will give the Africa Adaptation Acceleration Program the boost that it needs to transform the development trajectory of the world’s most climate exposed continent. I am confident in the ability of the AAAP to deliver results for Africa.”
Africa marks special day at COP27 with a resolve to tackle climate change relentlessly (AfDB)
These are the climate topics we should be talking about (WEF)
COP27: Why developing countries are not getting their climate finance (Energy Monitor)
The world is in the midst of a deep energy crisis and in need of urgent energy transition. However, this transition cannot happen without massive quantities of critical raw materials (CRMs) needed to deploy the low-carbon technologies required for climate change mitigation and adaptation, said UNECE Executive Secretary Olga Algayerova at COP27 in Sharm el-Sheikh, speaking on behalf of all five United Nations regional commissions.
Fossil fuel dependence undermines global health through increased climate change impacts. As a result, millions of people do not have access to the energy they need to keep their homes warm, to preserve food and medication. Reducing the world’s dependency on fossil fuels can only take place through sustainable and responsible production of materials, such as lithium, nickel, copper, cobalt, manganese, graphite, and rare earth elements.
“A standardized and harmonized approach to CRM production focusing on Environmental, Social and Governance (ESG) aspects at a global level will be key to ensuring the sustainable and secure supply of CRMs,” Ms. Algayerova noted. “Transparent and responsible production of CRMs is also essential to de-risk investments, including those underpinned by climate finance.”
Call for North Sea oil and gas giants to pay ‘meaningful’ climate reparations (HeraldScotland)
Leaders from Western Indian Ocean countries share progress on Great Blue Wall at COP27 (UNECA)
Local news
South Africa’s economy may have turned a corner, but more jobs are needed (Engineering News)
With South Africa’s unemployment rate having improved by 0.6 of a percentage point to 33.9% in the second quarter, Standard Bank CEO Sim Tshabalala has said the country’s economy may well have turned a corner However, job creation remains an urgent priority.
South Africa: Illicit Trade Persists After End of Sales Ban (Tobacco Reporter)
A single pack of 20 cigarettes can be bought for as little as ZAR7, down from ZAR8, which was the lowest price found in the October 2021 study, according to Ipsos. “The latest Ipsos study is irrefutable proof that the unconstitutional lockdown tobacco sales ban created a monster with an insatiable appetite,” said Johnny Moloto, general manager of BAT South Africa. “Criminal manufacturers of tax-evading cigarettes are refusing to give up their control of the South African tobacco market and are pocketing billions in illicit profits that deprive the state of vital revenue and destroy honest jobs.”
South Africa’s ability to manage energy risks approaching a ‘tipping point’ (Engineering News)
South African is close to a tipping point in terms of its capacity to manage energy risks, the fifth and latest edition of the South African National Energy Association (SANEA) ‘Energy Risk Report’ warns. Presenting the report at SANEA’s 2022 conference in Johannesburg, general-secretary Wendy Poulton said that, although some progress had been made over the past year to reduce policy uncertainty, it was both insufficient and too slow.
SA targets greater Kenya trade, investment (Moneyweb)
South Africa plans to prioritize its economic relationship with Kenya to boost trade and investment, Trade, Industry and Competition Minister Ebrahim Patel said.
Trade between the two countries last year was only R6.5 billion, which was “not sufficient,” Patel said at a business forum in the Kenyan capital, Nairobi, on Wednesday.
Kenyan Trade and investment Secretary Moses Kuria urged South African companies to invest in private-public partnerships and the East African nation’s special economic zones.
Afreximbank commits to finance projects in Namibia (New Era)
The African Export-Import Bank also known Afreximbank, is keen to work with both the public and private sectors in Namibia in developing a robust pipeline of projects. This it said is premised on the economic importance of Namibia on the African and its dynamic international trade sector.
According to Awambeng, currently, a pipeline of US$85 million for transactions is under consideration by Afreximbank in Namibia, distributed across various sectors including mining, energy and health among others. “It is principally for the above reason that we are here to re-introduce Afreximbank and familiarise the business sector in Namibia to the products and services offered by the bank and to engage actively with the business community,” he said.
Delivering the keynote address, trade ministry executive director Sikongo Haihambo said Namibia is committed to the African Continental Free Trade Area Agreement (AfCFTA), this is demonstrated by the fact that Namibia has already commenced with the awareness creation and will soon commence with the training of potential exporters, implementers including customs officials as part of the implementation process of the agreement. For Namibia to be able to take full advantage of the AFCTA, Haihambo said there is a need to accelerate Namibia industrialisation agenda and diversify the export basket. According to him, these calls for increase productivity, innovation and financial support and Afreximbank is one of the most reliable partners in terms of financial support.
India urges Nigeria to become producing nation (The Guardian Nigeria)
Stakeholders seek economic diversity to boost foreign reserve Consul General of India, Lagos, Chandramouli Kern, has urged Nigeria to leverage on existing structures and the African Continental Free Trade Area (AfCFTA) to become a producing nation. “You can make profit and even have a good business sector. But as a country, you cannot grow. There is no need to reinvent the chain. You can put value to the supply chain and cater to Nigeria and Africa. I see a very potent place for Nigeria in the AfCFTA because she has the experience and resources. With partnership with Indian big companies, you can supply to Africa,” Kern said.
The Consul General disclosed this at the African Textile and Apparel Manufacturing and Trade Policy Summit 2022, tagged, ‘Empowering Change: West Africa, the Next Frontier for Apparel Sourcing and Investment’, held in Lagos, yesterday.
“We firmly believe that with concerted efforts from government bodies, relevant organisations, and taking advantage of AfCFTA, the West African apparel sector can revolutionise into a production hub,” Oyemade added.
Private Industries call for introduction of import license (Ghanian Times)
The Private Enterprise Federation (PEF), has called on government to introduce an import license policy to regulate the country’s imports. An import license is a document issued by a national government authorising the importation of certain goods into its territory. Nana Osei Bonsu, Chief Executive Officer, PEF said such a move had become critical as a measure to preserve some of the country’s forex and also prevent the influx of foreign made goods in the country’s markets. Nana Osei Bonsu said the government must do all it could to strengthen the cedi and economy.
“People look at import license as a barrier but it is needed to justify why we have to allow you to spend our foreign exchange to import certain commodities. It is just to find ways to tell the authorities that this is needed in the country but when we have things that are available in volumes and people are still bringing them in and undercutting the price locally it does not enable the local people compete,” he said.
First UK government Standards Partnership Pilot to herald a new era for trade in Africa (BusinessGhana)
The first UK government-backed initiative to use global standards to support a new era for trade in Africa will officially be launched in Ghana today. The Standards Partnership Pilot, which will be led by The British Standards Institution (BSI) in collaboration with and to support the Ghana Standards Authority (GSA), is expected to boost trade opportunities between Ghanaian and UK businesses. It will focus on the strengthening of national quality infrastructure organizations and systems in complying with international recommended practices.
The pilot will also help deliver secondary benefits by enabling businesses to build resilient, diversified supply chains with high-quality products and services – resulting in greater choice and lower prices of goods for consumers.
AFCFTA National Strategy Response to enhance Mauritius’s readiness for intra-African trade (Republic of Mauritius)
The African Continental Free Trade Area (AFCFTA) National Strategy Response aiming to enhance Mauritius’s preparedness and readiness for intra-African trade and new market and investment opportunities for African Small and Medium Enterprises (SMEs), was launched this morning during a workshop, at the Westin Turtle Bay Resort and Spa in Balaclava.
In his keynote address, Minister Ganoo indicated that the agreement establishing the AFCFTA is a potential game changer for African countries adding that since the coming into force of the Agreement on 01 January 2021, much progress has been achieved as regards its ratification and implementation. He underlined that the AFCFTA is a landmark agreement for Mauritius that can provide significant opportunities for SMEs, including women and youth-led enterprises engaged in cross-border trade, to participate in the development of regional value chains and diversification.
The Minister highlighted that the AFCFTA agreement should be implemented through an inclusive approach that creates opportunities for women, youth and SMEs to participate in formal economic spheres. SMEs are the backbone and economic drivers of Mauritius, he said, adding that the agreement will further boost intra-African production, intra-African consumption, and intra-African trade and investment.
He rejoiced that Mauritius being part of the pilot phase of the Guided Trade Initiative together with Kenya, Tanzania, Tunisia, Cameroon, Egypt, and Ghana, has been able to export its first consignment under the agreement. He thus expressed appreciation to the UNECA and the EU for their assistance to Mauritius for the implementation of the AFCFTA.
Zanzibar Can Accelerate Poverty Reduction by Seizing More Opportunities to Diversify its Tourism Sector (World Bank)
Despite substantial improvements in living conditions and a drop in poverty between 2009 and 2019, poverty reduction in Zanzibar has been slow relative to its economic growth.A new World Bank Group report, Towards a More Inclusive Zanzibar Economy: Zanzibar Poverty Assessment 2022, shows while Zanzibar’s gross domestic product (GDP) per capita grew at 2.9 percent per year during 2009 to 2019, consumption per adult equivalent grew by only 1.7 percent per year over the same period. The ‘growth elasticity of poverty’, which reflects the extent to which economic growth leads to poverty reduction, was low, although similar to the average of Sub-Saharan Africa and somewhat higher than mainland Tanzania. Despite the relatively high GDP growth, the creation of wage jobs between 2014 and 2019 was limited and unemployment went up from 17 to 19 percent, while inactivity increased, according to the labor force surveys conducted in those years.
Tourism contributes an estimated 27 percent to Zanzibar’s GDP, around 80 percent of its foreign exchange earnings, and an estimated 60,000 jobs. With the COVID-19 crisis, GDP growth in Zanzibar slowed to an estimated 1.3 percent in 2020, driven by a decline in tourism activity. GDP per capita fell by 1.6 percent. Most severely hit was the accommodation and food services sub-sector which decreased by 13 percent. Urban poverty may have increased by almost 2 percentage points in 2020, according to simulations.
COVID-19 Elevated Poverty in The Gambia (World Bank)
The Gambia’s poverty rate has climbed to 53.4 percent largely due to COVID-19 according to The Gambia Poverty and Gender Assessment 2022 report. The report states that before the COVID-19 induced crisis the national poverty rate declined from 48.6 percent in 2015 to 45.8 percent in 2019.Poverty rates remains more of a rural phenomenon – 7 out of every 10 rural dwellers are poor; compared to 3 out of every 10 urban dwellers. However, the larger share of poor people live in urban areas in the more populous Southwest, mainly in Brikama.
“It is important to note that there was significant progress registered prior to the pandemic in improving key indicators of welfare such as school attendance, maternal and child health, and access to water and electricity. The report provides insights to inform the recovery agenda from the COVID-19 pandemic as well as mitigating the spillover effects from the ongoing war in Ukraine,” said Feyi Boroffice, World Bank Resident Representative.
African trade and integration
AGI begins profiling of members to leverage AfCFTA (Myjoyonline)
The Association of Ghana Industry (AGI) has begun profiling its members to leverage the African Continental Free Trade Area Agreement (AfCFTA). According to its Regional Chairman, Tsonam Akpeloo, the agreement presents enormous benefits to businesses, hence the need to take advantage of AfCFTA and trade competitively, both internally and externally. “What we are doing is that we have created a portal ‘Kadodo Africa’. We profiling Ghanaian businesses that are interested in trading under the AfCFTA”. “It is also to note that there are a lot of fraudsters these days that have taken over the internet. So it is important for us to authenticate the businesses that are willing to do business online.”
Liberia, Guinea, S/Leone Sign Pact to Improve Cross-border Trade, Revenue and Security in the Region (Front Page Africa)
The Customs Department of the Liberia Revenue Authority (LRA) has signed an MOU with its Guinean and Sierra Leonean counterparts for mutual administrative assistance to combat customs crimes and boost customs revenues in the three countries. The Customs authorities agreed to foster meaningful and more robust collaborations in facilitating cross-border trade and improved security to attract domestic resource mobilization in the three Mano River Union (MRU) countries.
The MOU contains a chain of immediate actions that seek to strengthen cohesion, solidarity, and cooperation in countering Customs frauds that are detrimental to the economic, commercial, fiscal, social, cultural, or security interests of the three countries. The customs authorities resolved to strengthen cooperation among border officers, improve intelligence sharing, and called on their respective governments to rehabilitate roads and bridges to enhance trade facilitation and boost revenue collection.
The need for customs collaboration among our three countries is imperative…in fighting security threats and revenue frauds,” Liberia’s Customs Commissioner Saa Saamoi insisted during the two-day meeting. Saamoi stressed, “Our borders are extremely porous, and it takes only collaboration among our countries and ports to put revenue fraud under control.”
In his closing statement, Sierra Leonean Customs Chief Abu Martin Kanneh noted that ”The only way we can succeed in fighting cross border crime and illicit trade is to collaborate,”Kanneh described the MOU as the beginning of a new era in the MRU region for customs administrations. He said they would work to help each other in terms of intelligence in tracking down customs-related crimes and protecting revenues.
Afreximbank seeks to ease cross border payments with continental platform (The Africa Report)
In mid-October, the Central Bank of Djibouti joined its six West African Monetary Zone (WAMZ) counterparts on the platform: Gambia, Ghana, Guinea, Liberia, Nigeria and Sierra Leone. A few weeks earlier, the first daily transactions had kicked off on the Pan African Payment and Settlement System (Papss) setup between Lagos and Accra. First Bank of Nigeria, Stanbic IBTC and GCB Bank were among the participating banks. Did it work?
New year offers new promise after Africa’s economic recovery falters in 2022 (African Review)
High energy and food prices, causing a cost-of-living crisis, tighter financial conditions and persisted supply constraints decelerated growth, leading to stagnating income-per-capita in majority of countries. The overall economic activity, however, masks some regional heterogeneity. Diversified ‘non-resource-intensive’ countries (led by Senegal, Rwanda, and Cote d’Ivoire) are among the more dynamic/resilient economies, growing by 4.6% in 2022, compared to 3.3% and 3.1%, respectively, in oil exporters and other resource-intensive countries (according to IMF data). SSA growth, excluding heavyweights Nigeria and South Africa, is projected to slow to 4.3% in 2022, from 5.1% in 2021, but exceed regional performance.
SSA’s terms of trade (i.e., the ratio between a country’s export prices and its import prices) are still expected to improve in 2022, compared with last year, but significant heterogeneity persists. Oil-exporters can expect an improvement of 16%, while non-resource-intensive countries face a drop of about 4.2% (IMF data).
East African judicial officers discuss ways to harmonize laws in the region (Taarifa News)
The East African Magistrates and Judges are meeting in Kigali to discuss the harmonization of the legal mechanisms in the region as a remedy for the promotion of regional trade among other factors. The Conference themed, “The EAC Courts Efficiency in Adjudicating Emerging Cross Border Issues: Challenges and Strengths” is founded on the recommendation of the 16th EAMJA Conference held in 2018 which came as an enforcement of Article 126(2)(b) of the EAC Treaty that calls on all Member States to harmonize all their national laws pertaining to the Community.
Shedding the light on the harmonization of laws, Rwanda’s Chief Justice said the three day event which kicked off today will embark on the sharing experience and knowledge on the rationale behind harmonizing judicial remedies on cross-border issues, such as commercial-related concerns and human rights issues. “The Conference will analyze the intended actualization of fair competition and consumer protection standards and the impediments at play.” Current issues and challenges in the harmonization of EAC tax systems, such as insolvency of multinational companies and liabilities of corporate governors, are vital topics for judicial debate,” he said.
Uganda seeks to strengthen trade ties with China (Monitor)
Uganda on Wednesday said it intends to strengthen its ties with long-time trade partner, China as officials from the East African nation sought to explore more channels to pursue economic and trade cooperation on a “win-win basis” between the two.
During her visit to the Asian country’s eastern province of Shandong, Uganda’s ambassador to China, Ms Oliver Wonekha listed a number of opportunities her home country offers for profitable investments for the Chinese business community. According to the ambassador, Uganda has grown itself to be a highly stable country over the past 30 years, coupled with having one of the lowest crime rates and most stable inflation rate in East Africa – averaging 4.89 percent.
“Uganda is the most open economy to FDI within the EAC. According to benchmarks from Financial Times Limited, Uganda has an excellent working and living environment. Uganda has a robust young and trainable population. The country’s electricity costs are competitive at 80 per cent of Kenya’s costs, property costs in Uganda are competitive with industrial shed monthly rents in the range of $4-6 per square metre. Large and growing domestic market of nearly 45 million people, strategically located in the heart of Africa with a combine market of population of over 700 million in the EAC and COMESA region. Globally, Uganda has a competitive tax incentive regime,” Ms Wonekha said.
Interview: CIIE presents huge opportunity for Africa to diversify export base - Ethiopian scholar (Xinhua)
Africa should tap into the upcoming 5th China International Import Expo (CIIE) to diversify its export base in China and beyond across the global market, an Ethiopian scholar has said. Costantinos Bt. Costantinos, who served as an economic adviser to the African Union (AU) and the United Nations Economic Commission for Africa (UNECA), told Xinhua in a recent interview that the CIIE presents a rare opportunity for Ethiopian and other African companies to penetrate the market opportunities in China and elsewhere.
The expert, who argued that economic and market barriers have been affecting the development performance and trajectory of Africa’s export-oriented businesses, emphasized the need for African companies to diversify their export portfolio in the international market with the help of the CIIE.
Africa lags behind global average on digital economy (IOL)
Africa needs to recognise that the digital economy comprised various facets that included infrastructure development, applications and skills development and in all these facets, the continent is lagging behind the global average. This is according to African Telecommunications Union (ATU) secretary-general John Omo, who spoke at the Ministerial Forum on Developing Africa’s Digital Economy held in Cape Town yesterday.
The market for infrastructure development in each of the continent’s countries was very small. Transnational business between South Africa, Botswana and the SADC region was much bigger and attracted a lot better global investments
“We need to harmonise as much as possible our laws, regulations and policies for attracting global tech into our sphere. Then ensure the development of infrastructure across borders,” Omo said.
Role of regulators needs to change in digital era, panellists agree (Engineering News)
As the uptake of fourth-generation (4G) communications technologies continues to grow on the African continent, along with early adoption of fifth-generation (5G) technology in some countries, technology companies agree that more enabling regulation is required if Africa is to realise universal connectivity or widescale 5G rollouts. Consultancy and research company Balancing Act CEO Russell Southwood noted during a panel discussion at the Africa Tech Festival, which is being hosted from November 7 to 11 in Cape Town, that mobile technology, such as digital payments, or “mobile money”, and the Internet have had a profound impact on Africa’s development, but greater job creation and economic growth can be unlocked if regulators were to ease up on their intervention.
The African Telecommunications Union (ATU), African Union (AU) and Huawei jointly released the “Africa IPv6 Development White Paper” today. This first regional Internet Protocol version 6 (IPv6) white paper on the African continent systematically analyses the development of IPv6 in Africa and shares the IPv6 innovation practices of several top operators in Africa. Launched during the fourth Broadband Africa Forum at AfricaCom 2022 – the continent’s largest ICT conference – the white paper aims to provide guidance and reference for IPv6 technology innovation and development in Africa, thereby accelerating the construction of network digital infrastructure and promoting the development of the digital economy on the continent.
Africa’s huge infrastructure deficit constrains development: Ethiopian president (Xinhua)
Africa’s current vast infrastructure deficit is a big constraint to continental development, Ethiopian President Sahle-Work Zewde said Tuesday. The president made the remarks during the joint opening session of the eighth edition of the African Engineering Week and the sixth Africa Engineering Conference, which is underway in the Ethiopian capital, Addis Ababa. “Our continent Africa has a number of priority areas for its development. But there is one that clearly stands above the others and that is infrastructure. Africa has a vast infrastructure deficit. It is a big constraint in its growth,” Zewde said.
Afreximbank Urges African Countries To Prioritize Infrastructure Development (263chat.com)
The African Export-Import Bank (Afreximbank) chairman and president, Professor Bennedict Oramah has called for urgent measures towards building adequate infrastructure to support the successful implementation of the African Continental Free Trade Area (AfCFTA) Agreement. Speaking at the Botswana Global Expo last week where more than 25 Zimbabwean companies participated, Prof Oramah said, inadequate infrastructure was a major drawback to quick realisation of the desired AfCFTA gains. “Pushing the boundaries towards industrialisation, is critical for Africa’s transformation with focus on harnessing trade and investment opportunities, this also includes building adequate infrastructure capacity that supports standards and quality certification of products from the continent,” he said. Oramah urged the African Continental Free Trade Area to invest more in building trade.
“As the continent pushes towards an integrated free trade market under the historic deal, which came into force early last year and has been ratified by Zimbabwe and several regional peers, the need to bolster infrastructure development has come under spotlight as a key enabler to trade competitiveness,” added Oramah.
The large-scale expansion of built infrastructure is profoundly reshaping the geographies of Africa, generating lock-in patterns of development for future generations. Understanding the impact of these massive investments can allow development opportunities to be maximised and therefore be critical for attaining the United Nations’ Sustainable Development Goals and African Union’s Agenda 2063 aims. However, until now information on the types, scope, and timing of investments, their evolution and spatial-temporal impact was dispersed amongst various agencies. We developed a database of 79 development corridors across Africa, synthesizing data from multiple sources covering 184 projects on railways, wet and dry ports, pipelines, airports, techno-cities, and industrial parks. The georeferenced interlinked tabular and spatial database includes 22 attributes. We expect this database will improve coordination, efficiency, monitoring, oversight, strategic planning, transparency, and risk assessments, among other uses for investment banks, governments, impact assessment practitioners, communities, conservationists, economists, and regional economic bodies.
The Conference of the States Parties (CoSP) to the African Medicines Agency (AMA) Treaty, held its first Extraordinary Session in Addis Ababa, Ethiopia from 3 to 4 November 2022. The meeting deliberated and decided on the next steps in the operationalisation phase of the AMA, following the pronouncement of the Agency’s headquarters host country in the Republic of Rwanda by the 41st Ordinary Session of the Executive Council.
In her remarks during the official opening of the session, H.E. Amb. Minata Samate Cessouma, Commissioner for Health, Humanitarian Affairs and Social Development reaffirmed that the Commission remains resolute in its commitment to providing all the necessary support to the States Parties to the AMA Treaty towards the operationalisation of the AMA at its earliest opportunity. “The impact of falsified, counterfeit and sub-standard products on the morbidity and mortality of the African population is concerning. However, the Commission remains optimistic that this menace will soon be a thing of the past with the impressive progress made in operationalising the AMA,” noted the Commissioner.
Africa’s Dwindling Trade Relations with Brazil Expected to Recover Under Lula (Tekedia)
The Brazilian general election which held on October 2, 2022 declared Luiz Inácio Lula da Silva as winner with 50.90% of the total votes against his major contender and incumbent president, Jair Bolsonaro who came closely behind at 49.10% of the total votes cast. The Brazilian left-wing politician and 35th president will again be sworn in as the 39th president of the Democratic Republic of Brazil
We’ll operate open door policy - Trade ministry assures investors (Graphic Online)
A deputy Minister of Trade and Industry, Michael Okyere Baafi, has urged members of the India Africa Trade Council (IATC) to support the government’s flagship industrialisation programme, the one-district, one-factory (1D1F). He said the government would always open its doors to investors who sought to set up factories under the 1D1F initiative stressing that “we are willing to give the necessary support to all investors. Mr Baafi was speaking at the maiden IATC Trade summit held in Accra, which was attended by the Global President of the IATC, Dr Asif Igbal.
In his address at the summit, Dr Iqbal admonished businessmen and women to take advantage of international trade liberalisation policies to ensure effective growth of the business communities.
Global economy
WTO Fisheries Funding Mechanism now operational to assist developing countries and LDCs (WTO)
As part of the WTO Agreement on Fisheries Subsidies adopted at the WTO’s 12th Ministerial Conference last June, members endorsed the establishment of a new funding mechanism, in cooperation with relevant international organizations, to accept voluntary contributions to provide developing and least developed country (LDC) members with targeted technical assistance and capacity building for the purpose of implementing the disciplines under the Agreement. With the Fund now operational, donors can begin making their contributions to the Fund.
Asia’s appetite for African crude slows as Ukraine conflict redraws trade flows (Accelerating Progress)
Asia may end the year 2022 with a sharp drop in crude inflows from Africa as relatively higher freight rates, a wider Brent-Dubai spread and increased competition from European refiners looking for alternatives to Russian supplies created hurdles, a trend that is unlikely to change anytime soon, analysts told S&P Global Commodity Insights.
In addition, the plentiful availability of Russian crude at discounted prices -- shunned by many western countries -- prompted refiners in leading consumers in Asia, such as India and China, to snap up as many cargoes as possible, displacing multiple grades of African crudes.
With plentiful options to buy at attractive prices, China, Asia’s biggest oil consumer, aggressively picked up cargoes from diversified suppliers to take advantage of the widespread price volatility. Its crude imports from Africa fell by a sharp 22.6% year on year to 1.06 million b/d in the January-September period, data from China’s General Administration of Customs showed. As a result, the region’s market share fell to 10.7% in the nine-month period, from 13.2% a year earlier.
Russia’s Trade With Europe Is Drying Up, Shifting to China (Bloomberg)
Freight volumes through some of Russia’s largest ports have cratered as a result of the European Union’s economic sanctions against Moscow. This year, the port of St. Petersburg — Russia’s primary gateway for trade with Europe — experienced an 85% drop in container throughput versus the previous year, according to Vincent Stamer, a researcher at the Kiel Institute for the World Economy.
“There are barely any containers arriving at Russia’s formerly busiest port,” Stamer said in an interview. “That’s because St. Petersburg is so exposed to European trade.”
China decides to grant zero-tariff treatment to 10 LDCs (Global Times)
China will grant zero-tariff treatment to 98 percent of taxable items originating in 10 least-developed countries (LDC), according to a statement released by the Customs Tariff Commission of the State Council on Wednesday. Experts said the move will raise China’s imports from LDCs, especially those in Africa, and promote economic and trade cooperation. Effective on December 1, China will waive all tariffs on 98 percent of the related imports from Afghanistan, Benin, Burkina Faso, Guinea-Bissau, the Kingdom of Lesotho, Malawi, Sao Tome and Principe, Tanzania, Uganda and Zambia. The policy will cover 8,786 items, including agricultural products such as olive oil, cocoa powder and nuts, as well as various chemicals and product materials.
The policy is conducive to opening up with a win-win approach, building an open economy in the world, and helping LDCs to accelerate their economic development, the statement said.
The New Candidate Countries For BRICS Expansion (Silk Road Briefing)
If accepted, the new proposed BRICS members would create an entity with a GDP 30% larger than the United States, over 50% of the global population and in control of 60% of global gas reserves.
The Russian Foreign Minister, Sergey Lavrov has stated that ‘over a dozen’ countries have formally applied to join the BRICS grouping following the groups decision to allow new members earlier this year. The BRICS currently includes Brazil, Russia, India, China and South Africa.
It is not a free trade bloc, but members do coordinate on trade matters and have established a policy bank, the New Development Bank, (NDB) to coordinate infrastructure loans.
Concerning a BRICS expansion, Lavrov stated that Algeria, Argentina, and Iran had all applied, while it is already known that Saudi Arabia, Türkiye, Egypt and Afghanistan are interested, along with Indonesia, which is expected to make a formal application to join at the upcoming G20 summit in Bali.
Related News
tralac Daily News
COP27 and related news
COP27: Al-Sisi urges developed countries to commit to their financial pledges to developing nations (Daily News Egypt)
Egypt’s President Abdel Fattah Al-Sisi said that Sharm El-Sheikh is the first Egyptian city to know its way towards a green transformation. He added during the presidential session within the activities of the COP27 on Monday, that the world’s eyes and minds are directed to Sharm El-Sheikh to follow up on the conference and its results.
He pointed out that the fate of millions of people hangs on the conference, stressing the importance of creating a clean and sustainable environment and a climate more responsive to people’s requirements, and highlighted the need to provide favourable conditions for work and growth without harming the world’s resources, which must be developed, invested and made more sustainable.
“These questions must be answered before they are directed to us. Are we today closer to achieving our goals than a year ago? Have we been able during the past year to assume its responsibility in dealing with the most dangerous and impactful issues of the century?” he said. “The most important question is whether the goals we aspire to achieve fall within the scope of the possible, undoubtedly, it is not impossible, but if there is a real will and a sincere intention to promote joint climate action”.
DG Okonjo-Iweala: Trade is critical in global response to climate change (WTO)
In her opening remarks, Mia Amor Mottley said: “If this COP is to be about action, then we need to be able to understand what restrains and constrains us from being able to achieve progress.” Prime Minister Mottley stressed the need to reform international financial institutions so that they can do more for countries in the global South in their response to climate change.
DG Okonjo-Iweala warned that countries should learn from experiences during the COVID-19 pandemic, where some trade policies such as export restrictions and prohibitions prevented vaccines and other inputs from reaching countries that needed them the most.
She stressed that in the climate change context, trade policies can help unblock the technology or goods and services that will help countries adapt after an event or mitigate before an event. The Director-General noted that national action plans often do not incorporate trade policy and trade. “This is the missing element,” she stressed.
DG Okonjo-Iweala noted that global supply chains for products necessary to help countries adapt to climate change and to transition to a low-carbon economy are very concentrated. She highlighted that work can be done to help countries, particularly in the South, diversify their economies, moving the manufacturing of these products into those countries and bringing them into global value chains. She added: “We kill two birds with one stone. We build resilience for the world, but at the same time we include those who have been left out.”
DG Okonjo-Iweala: World “cannot afford to leave trade and WTO behind” in climate actions (WTO)
DG Okonjo-Iweala: Trade is essential part of climate action efforts to achieve food security (WTO)
Global food demand continues to grow, with the world’s population expected to reach 9.6 billion people by 2050 while 820 million people were suffering from hunger as of 2021 according to UN estimates. At the same time, climate change is having a dramatic impact on agricultural land and livestock productivity.
DG Okonjo-Iweala said trade is often taken for granted and viewed as part of the problem but it should be seen as part of the solution to climate change and food security. She noted trade provides food for one in every six people around the world and therefore has an important role in ensuring that food and other essential goods, such as fertilizer and climate adaptation goods, and services get to where they are needed.
The DG highlighted the WTO’s “threefold responsibility to keep markets open, transparent and equitable”. She also drew attention to the food security package adopted by the WTO at the 12th Ministerial Conference (MC12) in June, where members vowed to limit as much as possible restrictions or prohibitions on food and committed not to impose export prohibitions or restrictions on the humanitarian food purchases by the World Food Programme.
DG joins world leaders in call to mobilize USD 12.5 billion for climate action in Africa (WTO)
UK Steps up climate adaptation finance support for Africa (AfDB)
The United Kingdom has announced a significant increase in its financial support to the poorest African countries that bear the brunt of climate change. Speaking alongside African leaders at COP27 in the Egyptian city of Sharm El Sheikh, British Foreign Secretary James Cleverly confirmed the UK will provide £200 million to the African Development Bank Group’s Climate Action Window, a new mechanism set up to channel climate finance to help vulnerable countries adapt to the impacts of climate change.
Foreign Secretary James Cleverly said: “Climate change is having a devastating impact on some of the poorest countries in Sub-Saharan Africa but historically they have received a tiny proportion of climate finance,” said Cleverly adding, “This new mechanism from the African Development Bank will see vital funds delivered to those most affected by the impacts of climate change, much more quickly.”
The UK Foreign Secretary noted, “Access to climate finance for emerging economies was a central focus at COP26 in Glasgow and I’m pleased to see tangible progress being made, supported today by £200 million of UK funding.”
Climate change has a disproportionate impact on the 37 poorest and least creditworthy countries in Africa. Nine out of ten most vulnerable countries to climate change are in Africa. The Glasgow Climate Pact included a commitment from donors to double adaptation finance between 2019 and 2025.
Funding hurdles expose countries’ reliance on climate-sensitive sectors (The East African)
East Africa faces a daunting task in mobilising resources to deal with climate change-related shocks including erratic weather — prolonged drought that fuels food insecurity and flooding leading to loss of life and internal displacement. Recent estimates by the Intergovernmental Authority on Development (IGAD) show the region needs at least $4.02 billion to implement climate change resilience and mitigation programmes.
The immediate challenge facing countries now is how to raise the billions required to implement the Nationally Determined Contributions (NDCs), which are at the heart of the Paris Agreement. NDCs contain efforts by each country to reduce national emissions and adapt to the impacts of climate change.
Financing options are limited for regional governments which are already choking on debt with the average debt to GDP ratio across the region rising sharply to over 50 percent over the last three years.
In Africa, Rwanda is set to become the first country to access concessional funding from the IMF under its Resilience and Sustainability Facility (RSF) to finance its climate action projects needs $11 billion by 2030, of which $6.9 billion is conditional on new financing. It amounts to spending 8.8 per cent of the country’s GDP each year through 2030.
“Rwanda’s strong policy track record and its well-advanced climate strategy provide a sound basis for an impactful reform agenda. The new Policy Coordination Instrument (PCI), combined with RSF financing, will support the authorities’ efforts to maintain macroeconomic stability, advance structural reforms, including climate adaptation and mitigation, and insure against downside risks…,” said Haimanot Teferra, the deputy division chief for Rwanda, Africa Department on October 7 in Kigali during a press briefing.
Beyond $8.5bn: Rich countries commit more money for SA’s energy transition (Engineering News)
South Africa’s R1.5-trillion just energy transition investment plan has been endorsed by the International Partners Group, which includes UK, US, Germany, France and the EU. The countries which initially pledged $8.5-billion to aid South Africa’s shift from coal, also plan to make available an additional R10-billion, according to a joint statement. The investment plan - R1.5-trillion over five years - was formally handed over by President Cyril Ramaphosa to the IPG at COP27, in Sharm El-Sheikh, Egypt on Monday. It builds on the $8.5-billion pledge by the IPG at COP26 last year, to assist South Africa’s efforts to decarbonise the economy in order to meet its climate commitments. “I congratulate President Ramaphosa for the great progress that has been made on the South Africa Just Energy Transition Partnership. In one year since COP, South Africa, along with the UK and our friends in the International Partners Group, have shown how serious we are about making the changes we need to halt climate change,” said new UK prime minister Rishi Sunak, who is also chair of the IPG.
Ramaphosa stresses need for ‘significant’ additional climate funding for Africa (Engineering News)
Owing to South Africa’s investment plan requiring much more money to be properly and fully implemented, President Cyril Ramaphosa on Tuesday called for reforms of multilateral development banks, international financing institutions and the mobilisation of commercial banks to meet the needs of developing economies for sustainable development and climate resilience. Ramaphosa was delivering a National Statement, at COP27, held in Egypt. He highlighted that African countries were losing between 3% and 5% of their gross domestic product owing to the effects of climate change. South Africa’s transition plan includes a portfolio of investments across the electricity sector, green hydrogen sector and new energy vehicle sector. Ramaphosa said financing mechanisms from public finance institutions and commercial institutions needed to provide good concessional loans and further stressed that more grants or non-debt instruments needed to be considered.
Skills gap in renewable energy presents challenges, opportunities (Engineering News)
There is a definite skills gap in the country’s renewable energy and associated industries, as South Africa looks to meet ambitious 2030 greenhouse-gas emission reduction and renewable energy targets, and the country must prioritise identifying what is lacking across the entire value chain and use certain mechanism to ensure that this gap is bridged. This was the key message from speakers in CTU Training Solutions’ webinar, held in collaboration with the South African Photovoltaic Industry Association (SAPVIA) and the South African Wind Energy Association (SAWEA) on November 8.
New Report Warns World of Huge Untapped Renewable Energy Potential (IRENA)
Renewables are the backbone of the energy transition and a viable climate solution. Yet out of the 183 parties to the Paris Agreement with renewable energy components in their Nationally Determined Commitments (NDCs), only 143 have quantified targets with the vast majority focusing on the power sector. Only 12 countries had committed to a percentage of renewables in their overall energy mixes. Renewable Energy Targets in 2022: A guide to design, released by the International Renewable Energy Agency (IRENA) at the UN Climate Change Conference COP27, assesses the level of renewable energy ambition in national climate pledges and benchmarks targets against the global climate goal of limiting temperature rise to 1.5°C. It clearly shows the collective level of energy transition ambition to date is not enough despite the Glasgow Climate Pact to upgrade 2030 targets in national pledges.
IRENA’s World Energy Transitions Outlook sees half of the energy consumed in 2050 coming from electricity. 90 per cent of all decarbonisation will involve renewable energy through direct supply of low-cost power, efficiency, electrification, sustainable bioenergy and green hydrogen. However, achieving the 2050 climate target will depend on sufficient action by 2030.
Global leaders urged to scale up action on the Great Blue Wall Initiative (UNECA)
The Economic Commission for Africa (ECA) today kickstarted its COP 27 activities with a gathering of global leaders who expressed enthusiasm and pledged commitment to accelerating action on the Great Blue Wall Initiative (GBW).
The “Great Blue Wall” (GBW) initiative is a critical Africa-led effort toward a nature-positive world that enhances the planet’s and societies’ resilience to halt and reverse nature loss by 2030. It aims to create interconnected, protected, and conserved marine areas to counteract the effects of climate change and global warming in the Western Indian Ocean (WIO) region. At the same time, unlocking the blue economy’s potential to become a driver of nature conservation and sustainable development outcomes.
In her opening remarks, IUCN President, Razan al Mubarak, said the Great Blue Wall initiative has “garnered support from both inside and outside of Africa, raised the profile of the plight of our oceans and returned energy and faith in international collaboration and cooperation.”
African Union Commissioner for Agriculture, Rural Development, Blue Economy, and Sustainable Environment, Josefa Sacko, underscored the importance of collaboration and African-led solutions to African problems: “If you want to go fast, go alone, if you want to go far, go together – we have to work hand-in-hand. The Great Blue Wall is an African-led initiative which speaks to the African Union ethos of African solutions to African problems.”
The report slams greenwashing – misleading the public to believe that a company or entity is doing more to protect the environment than it is – and weak net-zero pledges and provides a roadmap to bring integrity to net-zero commitments by industry, financial institutions, cities and regions and to support a global, equitable transition to a sustainable future. According to the experts, actors cannot claim to be ‘net zero’ while continuing to build or invest in new fossil fuel supply or any kind of environmentally destructive activities. They can’t also participate or have their partners participate in lobbying activities against climate change or just report on one part of their business’s assets while hiding the rest.
“We must have zero tolerance for net-zero greenwashing. Today’s Expert Group report is a how-to guide to ensure credible, accountable net-zero pledges,” António Guterres said at the launch at the report at COP27 in Sharm el-Sheikh, Egypt.
COP27: $3.1 billion plan to achieve early warning systems for all by 2027 (UN News)
The Executive Action Plan for the Early Warnings for All initiative, calls for initial new targeted investments of $ 3.1 billion between 2023 and 2027, equivalent to a cost of just 50 cents per person per year. Mr. Guterres announced the plan at the COP27 climate change conference, underway in Sharm el-Sheikh, Egypt, during a meeting of government and UN leaders, financing agencies, ‘Big Tech’ companies and the private sector.
He told them that people who have barely even contributed to the climate crisis are the most at risk and the least protected. “Vulnerable communities in climate hotspots are being blindsided by cascading climate disasters without any means of prior alert,” he said. “People in Africa, South Asia, South and Central America, and the inhabitants of small island states are 15 times more likely to die from climate disasters. These disasters displace three times more people than war. And the situation is getting worse.”
Local news
Kenya, UK agree deal for Sh425 billion mega dam (Business Daily)
A new multipurpose dam to be built in Kitui and Tharaka Nithi counties will cost Sh425 billion following a deal by President William Ruto and UK Prime Minister Rishi Sunak on Monday. The building of the dam, which will be Kenya’s second expensive infrastructure project after the standard gauge railway, is part of six projects worth Sh500 billion to be fast-tracked under a new UK pact signed on the sidelines of the climate conference COP27 underway in Egypt. Initially, the dam was estimated to cost about Sh220 billion ($2 billion).
The green investment programmes — in energy, agriculture and transport — will become flagship projects of the UK-Kenya Strategic Partnership, which is an ambitious five-year deal signed to unlock mutual benefits between the two countries.
Nigeria’s Int’l trade surplus hits N3.2trn – FG (Daily Sun)
The Federal Government has disclosed that Nigeria’s international trade is currently doing in excess of N3.2 trillion between January and June. The Minister of Industry Trade and Investment, Niyi Adebayo, who made the remark at the ongoing Lagos International Trade fair, organised by the Lagos Chamber of Commerce and Industry (LCCI) was hopeful that with the African Continental Free Trade Area (AfCFTA), the country will do better if its public and private sectors work together.
He noted that the private sector could help boost the demand for Nigerian products by aggressively pursuing value addition and increasing the quality of exported goods originating from the country.
African countries desire Nigeria to be dumping ground for their goods - Perm. Sec (National Accord)
The Permanent Secretary, Federal Ministry of Industry, Trade and Investment, Evelyn Ngige, has stated that all African countries who are signatories to the Continent’s Free Trade Area Agreement desire that Nigeria becomes a dumping ground for their goods. She stated this in her opening remarks at a five-day Technical Session of the 14th Meeting of the National Council on Industry, Trade and Investment, which began on Monday, with the theme: “Strengthening Industry, Trade and Investment Sector in Promoting Development in the Country”.
She said that the National Council on Industry, Trade and Investment is the highest Policy Advisory Body in the sector, under the Chairmanship of the Honourable Minister of Industry, Trade and Investment adding that the main purpose of the Council meeting is to brainstorm, strategize, deliberate and recommend policies and programmes aimed at addressing challenges facing the sector.
“Everybody is looking at Nigeria, all African countries who are signatories to this (African Continental Free Trade Area) Agreement, are expecting that we should rest on our oars so that Nigeria becomes a dumping ground for their goods. “But I believe that with this sector sitting up to this challenge, we will overcome and reverse that aspiration of theirs towards Nigeria becoming a net exporter of goods and services and, of course, that will help us generate foreign exchange and improve our economy,” she said.
The Nigeria-Morocco Gas Pipeline, a vector of prosperity for 440 million Africans (BusinessGhana)
In a speech on the 6th November, 2022, to the Nation on the occasion of the 47th anniversary of the Green March, King Mohammed VI highlighted the importance of the Morocco-Nigeria gas pipeline project which will bring peace, energy security and economic development to 15 African countries. In this sense, the Nigeria-Morocco Gas Pipeline project launched in 2016 by King Mohammed VI and the President of Nigeria, Muhammadu Bouhari, is definitely in line with this orientation which will develop the common interests of several West African countries.
For the Kingdom, the Nigeria-Morocco Gas Pipeline represents “more than a bilateral project between two brotherly countries”, underlined the Sovereign, expressing the wish that it be a strategic project beneficial to the entire African region. west, more than 440 million inhabitants.
With a budget of more than 77 billion dirhams, this integrated development program is designed to initiate real economic and social dynamics in the region. Its vocation is to stimulate, in these territories, the creation of jobs, to ensure a climate conducive to investment, to provide them with the infrastructure and equipment they need, indicated the Moroccan sovereign.
The new World Bank Poverty Assessment Report finds that just over half the Malawian population (50.7%) are poor, almost no different from a decade ago. High population growth, low levels of average per capita GDP growth (1.5%) and reliance on low-productivity, rain-fed small-holder agriculture are the core drivers of stagnant poverty levels.
Nevertheless, poverty levels have decreased significantly in rural areas in the northern and southern regions of the country. People who escaped poverty included those who moved from agriculture into ganyu (short term labor), household businesses, and salaried employment, and those that improved their levels of education. At the same time, agriculture declined as the main source of household income from 70 percent to below 50 percent, while ganyu increased from 18 percent to 37 percent.
Climate shocks drove many people into poverty. For every three Malawians that moved out of poverty between 2010 and 2019, four fell back in due to the impact of weather shocks. In addition, women face disproportionate constraints in accessing inputs and resources. Women’s agricultural productivity is lower than men’s, mainly due to differences in access to inputs, land, and finance.
In order to overcome these challenges, the report recommends a stronger focus on enhancing agricultural productivity and improving non-farm employment options. The latter requires redoubling efforts to support private sector-led investment and job creation, including in growing urban areas. The report also stresses the importance of improving school completion rates, particularly for girls, and redirecting existing social programs to target households that are exposed to climate shocks.
African trade and integration
Leading thinkers affirm Africa’s enormous potential and proven paths to prosperity (BusinessGhana)
These opening remarks were delivered during the recent Africa Accelerating 2022 conference, which welcomed messages from heads of state and government on the African continent and in Canada - kicking off three days of deliberations on how best to accelerate trade and investment between Canada and African markets. For McMahon and numerous speakers drawn from the private and public sectors - as well as civil society - the message was clear: African countries can succeed, with Canada as a trusted partner in trade and investment, including in the creation of an enabling environment for economic development, through collaboration with some of its leading researchers.
The African Continental Free Trade Area (AfCFTA) served as a central point for deliberations over 3-days in Johannesburg, with hundreds of in-person delegates joined interactively by delegates at a satellite venue in Toronto and thousands of online registrants.
East Africa’s Economy to Grow by 4 Percent in 2022 (East African Business Week)
A report by the Africa Development Bank (ADB) now says East African economies are expected to grow by four percent in this year. The African Development Bank forecasts the region’s GDP at four per cent this year, before recovering to 4.7 per cent in 2023, helped by the reopening of the economies after the Covid-19 containment measures. In the ADB East Africa Regional Economic Outlook 2022, the region recorded a robust economic recovery in 2021, but most members are yet to achieve their pre-COVID-19 growth levels.
The report also points out several policy interventions needed to boost East Africa’s post-COVID-19 recovery and build resilience against emerging vulnerabilities as well as the short, medium, and long-term policy options for supporting climate resilience.
According to the IMF review of fuel taxes remains an option for countries seeking to deal with the high fuel prices and surging inflation in the region but this will depend on the countries’ internal revenue and expenditure policies. “These impacts are becoming dynamic and are compounded by other shocks including commodity prices, health, and insecurity which calls for enhanced contextual risk and vulnerability assessments to inform clear adaptation and mitigation measures,” the report stated.
EAC MPs tell off EU counterparts, back oil pipeline project (The East African)
Members of the East African Legislative Assembly (EALA) have told off their European Union counterparts and urged Uganda to implement East African Crude Oil Pipeline Project (EACOP).The project, to be undertaken by French oil major Total Energies, has been criticised by the European Union parliament over alleged violation of environmental and human rights principles, forcing the involved firms to publicly defend it.
The European Union passed a resolution calling for the EU and the international community to exert maximum pressure on Ugandan and Tanzanian authorities, as well as the project promoters and stakeholders, to protect the environment and put an end to the extractive activities in protected and sensitive ecosystems, including the shores of Lake Albert. But this week, EALA legislators said the project must go on, being a project of two sovereign states.
“We need to have a stronger say, maybe continentally, to work in co-ordination. When you talk about European parliament, it is as if we owe our lives to them. I don’t think we do,” said Rwanda’s Minister of State in charge of East African Community Affairs Manasseh Nshuti during an EALA sitting in Kigali this week.
Can extractive sector drive the equality agenda? (NewsDay)
WIDENING inequalities between countries and within countries in the Southern African Development Community (Sadc) region have historical manifestations, but have become more pronounced in key economic and social upheavals, global economic crises, instabilities and pandemics. The triple challenges of COVID-19, climate change and conflict currently bedevilling the world continue to amplify rather than conceal regional and national inequalities. The ongoing Ukraine crisis and its attendant effect on food and energy price volatility increase social vulnerabilities.
The 2020 Commitment to Reducing Inequality Index (CRI) report produced by Oxfam, Norwegian Church Aid and Development Finance International revealed that the Sadc region hosts the world’s three most unequal countries, South Africa, Namibia and Zambia, and that all Sadc member States, except Tanzania and Mauritius, are in the top 50 most unequal countries.
Inequality in the Sadc region is a key driver of conflict, exacerbates the vagaries of climate change, global pandemics and undermines inclusive development outcomes. Inequality is tilting Sadc’s development process to an extent that high levels of inequality make poverty less responsive to economic growth because the proceeds of economic growth in most Sadc economies are afflicted by inequality. It is because of inequality that economic gains in Sadc are usually accessed and taken over by income groups at the top, leaving the bottom groups to scramble for leftovers.
The inequality crisis in Africa is existing side by side with the aspirational Sustainable Development Goals (SDGs), specifically SDG 10 meant to reduce inequality within and among countries.
The extractive industry has the capacity to spur the much-needed sustainable development in the Sadc region. Nevertheless, poor governance continues to diminish the prospects of the sector to contribute towards poverty alleviation and reducing the ever-widening inequality gap within nations.
There is an urgent need for Sadc countries to rethink the current governance model of the extractive sector towards a more inclusive and participatory one.
Gavi sets course to support sustainable vaccine manufacturing in Africa with new action plan in support of the African Union’s 2040 vision (Gavi, the Vaccine Alliance)
Gavi, the Vaccine Alliance today published a 10-point plan outlining key priorities to achieve the African Union (AU) vision of sustainably expanding vaccine manufacturing capacity across Africa by 2040. The plan is a response to the AU call to action for Gavi and other stakeholders to concretely support supply security on the continent.
Despite high regional demand for vaccines valued at over US$ 1 billion annually, Africa’s vaccine industry provides only 0.1% of global supply. Vaccine inequity and hoarding at the start of the pandemic, which resulted in delays in obtaining COVID-19 doses, stimulated new resolve to address future supply security. In 2021, the AU set a target to produce and supply more than 60% of the vaccine doses on the continent by 2040.
In the last 18 months alone, more than 30 new African manufacturing projects have been announced and estimates indicate that the African vaccine market across all existing and projected novel products could range between US$ 2.8 billion and US$ 5.6 billion by 2040*, demonstrating the potential for a thriving regional industry to emerge.
African countries are highly empowered to realize the AU’s vision. As the largest purchaser of vaccines in the world, Gavi’s procurements are shaped by country request. Therefore, ensuring robust demand as well as supply for African-manufactured vaccines will be critical in creating a sustainable market.
Hunger for FDI relegates labour rights, conservation to back seat (The East African)
The growing appetite for investors is pushing countries in the East Africa region to turn a blind eye to labour rights laws and conservation obligations in order to attract multinationals. And experts warn the long-term danger is that of a region that will have rogue players dominating the corporate scene, trampling on basic rights of the communities.
The revelations emerged even as the world enters the second decade into voluntary UN-endorsed soft power instruments referred to as the United Nations Guiding Principles (UNGPs) on Business and Human Rights. They are meant to ensure that states are aware of their duty to protect human rights and prevail upon companies domiciled within their territory to do so.
The UNGPs, which are voluntary, also emphasise corporate responsibility to human rights at all times, especially in conflict-affected areas, and access to remedy for victims of rights abuses.
For Africa the UNGPs, they have largely remained on paper, with only two countries. Only Kenya and Uganda have pioneered a National Action Plan (NAP) to domesticate and enforce the principles.
Ministers Responsible for Energy and Water from the Southern African Development Community (SADC) region have expressed collective commitment and dedication to improve the quality of life of the SADC citizens through equitable access to energy and water resources, in line with the aspirations espoused in SADC’s Regional Indicative Strategic Development Plan (RISDP) 2020-2030 and Vision 2050.
The Joint Meeting of Committee of SADC Ministers Responsible for Energy and Water, met on 4th November 2022 in Kinshasa, Democratic Republic of Congo and considered progress in the implementation of the Energy and Water programmes and projects which seek to find sustainable solutions to ensuring security of Energy and Water supply.
Ministers called for the establishment and operationalisation of the Regional Transmission Infrastructure Financing Facility (RTIFF) which aims to provide a long-term solution to energy financing challenges within the region to be supported by Southern African Power Pool, International Cooperating Partners, Private Sector and other interested investors;
In terms of policies and governance of the regional energy sector, Ministers urged Minister States that have not signed the Agreement Amending the SADC Protocol on Energy to do so for the Protocol to enter into force and further appealed to Member States that have not yet acceded to such Protocol to do so.
Southern African Customs Union emerges as key trade partner for India Report (The Week)
A Preferential Trade Agreement (PTA) between India and the Southern African Customs Union countries will enhance future partnerships as the region has emerged as an important partner for India, both as an export destination and an import source, according to a report from the India Exim Bank.
India has been trading with SADC for many decades and its trade deficit with SADC recorded USD 5.4 billion in 2021, the report said. But this could change significantly if the India-SACU PTA was concluded, it added. “The ongoing talks for Preferential Trade Agreement (PTA) between India and the SACU countries have set the stage for enhancing future partnership between India and SACU. The PTA is aimed at cementing and expanding the burgeoning trade relations between India and the SACU member countries,” the report said. The first round of talks for the lndia-SACU PTA took place in Pretoria in 2007, followed by four further rounds in Namibia, New Delhi and Pretoria again until 2010.
At the last round, SACU presented a revised text of the PTA as a working document. But discussions were then stalled for the next decade before they were revived in 2020, only to be halted again by the COVID-19 pandemic. The report said that aligning India’s exports with SACU would be critical to the success of any PTA.
“India is an important trading partner for SACU, accounting for 8.9 per cent of total exports of SACU and supplying 5.9 per cent of total imports of SACU in 2021,” the report said. “India’s exports to SACU increased from USD 5.1 billion in 2012 to USD 6.4 billion in 2021. Similarly, India’s imports from SAC
Prospects of harnessing Indian experience in the digital revolution to support Africa’s development (Observer Research Foundation)
A fashionable trend in the last decade has been a surge in digital innovations and mobile phone ownership across developing nations, particularly in sub-Saharan African (SSA) countries and India. Increasingly, countries are looking towards digital solutions and innovations to spur productivity and drive development. But, as a continent, Africa is yet to reach the same levels of digital maturity of other regions of the world in terms of digital penetration, usage, and capabilities. Africa still remains far behind much of the world in terms of its digital infrastructure. However, it is useful to acknowledge that despite being bound by geographical divisions, digital and emerging technologies can play a critical role in unifying the continent.
Today, the African continent represents a fertile territory to drive innovation that seeks to tackle some of the continent’s pressing needs and develop some commercially viable opportunities.
Both India and African countries have faced similar challenges to digital transformation i.e., low internet connectivity, the digital divide, and a skills mismatch. However, the continent’s digital empowerment and economic prosperity stands to benefit from India’s rapidly developing digital economy. There is enormous potential for Africa to learn from India’s digital revolution under the framework of South-South Cooperation.
India in Africa: The Changing Face of South-South Cooperation (African Arguments)
Global economy
DDG Zhang underscores importance of implementing MC12 outcomes, other trade agreements (WTO)
“Trade agreements strengthen the diplomatic and economic ties between countries by ensuring that all parties benefit from the new deals. At the 12th Ministerial Conference in June, WTO members delivered a historical package of new outcomes. The implementation of these decisions is also now a priority to ensure that the benefits of these negotiations are experienced on the ground by all,” DDG Zhang said.
At the end of the event, Dr. Pham Thu Huong, Vice President of the FTU, said: “International commitments bring undeniable benefits as well as diverse and far-reaching challenges, especially in the context of Viet Nam’s deep economic integration. Strategic cooperation that helps each entity involved utilise its strengths and overcome its limitations ensures that the benefits derived from joining international treaties on trade and investment will be reinforced and made inclusive and widespread.”
China is ready to work with all countries to practice true multilateralism, build more consensus for openness (People’s Daily)
On the evening of November 4, Chinese President Xi Jinping attended the opening ceremony of the fifth China International Import Expo (CIIE) held in Shanghai via video link and delivered a speech.
He said China will work with all countries and all parties to share the opportunities in its vast market, from its institutional opening-up and from deepened international cooperation. China is willing to work with all countries for a bright future of openness and prosperity.
The world today is confronted with accelerated changes unseen in a century as well as a sluggish economic recovery. At the critical moment, the international community should see the underlining trend to create opportunities in opening up and tackle difficult problems through cooperation. Openness is a key driving force behind the progress of human civilizations and an intrinsic path toward global prosperity and development, Xi said, expounding on the significance of opening up for human progress.
He called on all countries to commit themselves to openness to meet development challenges, foster synergy for cooperation, build the momentum of innovation, and deliver benefits to all. He also called on all countries to steadily advance economic globalization, enhance every country’s dynamism of growth, and provide all nations with greater and fairer access to the fruits of development.
Services trade push critical to high-level opening-up (China Daily)
According to the report delivered by Xi Jinping, general secretary of the Communist Party of China Central Committee, at the 20th CPC National Congress, the country will promote high-standard opening-up, steadily expand institutional opening-up with regard to rules, regulations, management and standards, and accelerate its transformation into a trader of quality.
The highlights in the report not only demonstrate China’s unswerving determination to expand high-level opening-up, pointing out the direction and clarifying the path for the development of China’s foreign trade in the next five years or even longer, but also reveal that under the current international background of unilateralism and anti-globalization sentiments, China will continue to deeply integrate into the world economy through its own opening-up policy and promote an economic globalization that is more open, inclusive, balanced, win-win and beneficial to all.
In October 2021, the 14th Five-Year Plan (2021-25) for the Development of Trade in Services issued by 24 government departments pointed out that one main goal is to further improve the institutional environment. Laws, regulations, policy systems, promotion mechanisms and regulatory models for trade in services have been improved, the marketization of trade in services, the rule of law and the international business environment have been optimized, the level of liberalization and facilitation has been further increased, and institutional opening-up has taken important steps. In order to achieve the services trade development goals listed in the five-year plan and accelerate the country’s transformation into a trader of quality, it is necessary to continue to deepen the reform of the services sector in the following aspects.
Related News
tralac Daily News
Local news
SARS concludes participation in ATAF, BRICS meetings (SAnews)
The South African Revenue Service (SARS) has participated in two multilateral meetings to cement international tax co-operation in Africa and among the BRICS [Brazil, Russia, India, China and South Africa] countries.
During the 7th Bi-annual ATAF General Assembly, Togo and South Africa were re-elected as Chair and Vice Chair of ATAF, respectively. Under the theme, ‘Rethinking Revenue Strategies: The Human Face of Taxation’ hybrid event saw more than 500 attendees, representing 33 tax administrations and 15 partner organisations. “The meeting discussed various tax-related issues, including the importance of domestic resource mobilisation to development financing, technology and human capital, the Two-Pillar Solution aimed at addressing the tax challenges arising from the digitalisation of the economy, reforms to enhance fiscal resource mobilisation, the maximisation of natural resource rents, as well as curbing illicit financial flows,” said SARS.
The highlight of the Heads of Tax Authorities meeting was the endorsement to launch the first issue of the BRICS Tax Best Practices compilation, a collection of insightful administration case studies from BRICS Tax Authorities. South Africa will assume the chairmanship of BRICS at the beginning of 2023 and will subsequently host the BRICS Tax meetings in 2023. “International cooperation is crucial in enabling SARS to deliver on is mandate. Working with and through stakeholders to improve the tax system is implicit in our strategic direction.
Decarbonisation must be in line with development goals (SAnews)
President Cyril Ramaphosa says the transition from coal dependent energy sources towards cleaner energy must be in line with South Africa’s developmental goals. The President was addressing the nation through his weekly newsletter on the eve of the 2022 United Nations Framework Convention on Climate Change (UNFCCC) also known as COP27.
“Although South Africa is playing its part in the global climate change effort, we have been consistent in emphasising our right to development. We must ensure that the transition to a low-carbon, climate change resilient economy does not jeopardise our developmental goals.
“The move from fossil fuels to greener, cleaner energy sources cannot take place at the expense of economic growth and job creation,” he said.
President Ramaphosa acknowledged that South Africa itself will need “substantial support…to build the resilience that is needed to protect our country and safeguard our economy” against the economic and social effects of natural disasters induced by climate change.
The President reflected that historically, the continent of Africa “bears the least responsibility for climate change, but it is Africa that is feeling its effects most”.
The World Bank Group Board of Executive Directors approved South Africa’s request for a $497 million project to decommission and repurpose the Komati coal-fired power plant using renewables and batteries. The project will also create opportunities for the affected workers and communities. This is in line with the government’s efforts to transition the country toward a low carbon development path with reliable, affordable, and sustainable energy for all.
Addressing energy poverty and transitioning toward lower carbon development requires a reliable power sector to underpin inclusive economic growth. The Komati Project aims to help mitigate climate change, enhance energy security, and support economic opportunities in the Komati area. The project is aligned with the country’s Just Transition Framework, which aims to minimize the socio-economic impacts of the climate transition, improve the livelihoods of those most vulnerable, and embrace the opportunities stemming from the transition.
“Reducing greenhouse gas emissions is a difficult challenge worldwide, and particularly in South Africa given the high carbon intensity of the energy sector,” said World Bank Group President David Malpass. “Closing the Komati plant this week is a good first step toward low carbon development. We are cognizant of the social challenges of the transition, and we are partnering with the government, civil society, and unions to create economic opportunities for affected workers and communities.”
Namibia launches Economic Partnership Agreement implementation plan (The Exchange)
The Namibian minister of industrialisation and trade, Lucia Iipumbu, launched an economic partnership agreement (EPA) implementation plan at the Southern African Development Community (SADC)-European Union EPA Trade Forum at the Windhoek Country Club Resort on Monday. The event was co-hosted by the European Union (EU) delegation in Namibia under the theme ‘Towards Increased and Diversified Trade under the EPA by Ensuring Inclusivity, Sustainability and Economic Growth’.
“The EPA Implementation Plan for Namibia which we are also launching is geared towards attaining the objectives of the SADC – EU EPA and ensuring that the potential benefits that can accrue from it are fully utilised by the intended beneficiaries, which include exporters, importers, consumers, and the entire business fraternity,” she added.
Kenyan farmers cash in on high maize price, surpassing warehouse storage (Business Daily)
The prevailing high prices of maize have seen farmers sell their harvest directly to consumers, surpassing the warehouses storage where they could store their produce as they await for prices to stabilise. Warehouse Receipt System Council (WRSC) chairperson Jane Ngigi said they have been unable to stock the grain for growers in the ongoing season because of the existing high prices in the market. “It is the first time that the price of maize has hit a high of Sh5,000 at the farm gate and this has seen farmers avoid storing their commodity as they seek to enjoy the prevailing prices in the market,” said Ms Ngigi.
She said there is high demand for the grain right now a move that has pushed up the price to historic highs.
Bill to protect consumers from predatory pricing in offing (The Independent Uganda)
The Committee on Trade, Tourism and Industry has said that it will move the protection law aimed at protecting consumers from false advertisement, predatory pricing and substandard products. According to the Chairperson of the Committee, Mwine Mpaka, although there are several laws in the country that protect consumers, they are scattered making it difficult to rely on.
He pointed out section 3 of the Uganda National Bureau of Standards Act, section 10 of the Contracts Act 2010, section 13 of the Sale of Goods and Supply of Services Act, section 5 of the National Drug Policy and Authority Act and section 1, 2 and 3 of Food and Drug Act among others.
Mpaka now says the committee will through a private member introduce the bill which will help protect consumers from exploitation in the business sector. He said several drugs and alcohol are currently being sold to minors and this is what will be curbed.
Zambia Launches Time Release Study for Mwami and Nakonde Borders (COMESA)
Zambia’s Ministry of Commerce Trade and Industry (MCTI) has launched the findings and recommendations of Time Release Studies conducted at the Nakonde One Stop Border Post (OSBP) and Mwami Border Posts. The study was facilitated by the Zambia Border Posts Upgrading Project. The launch was conducted on 3rd November 2022 at the Mulungushi Conference Centre in Lusaka, with support of the Common Market for Eastern and Southern Africa (COMESA) European Development Fund (EDF) 11 Trade Facilitation Programme.
Information on the Time Release Study (TRS) was collected by a Technical Working Group from cross border regulatory agencies, truck drivers and small-scale traders at both Nakonde One Stop Border Post and Mwami Border Post.
The WCO representative Mr Stephen Muller, said the TRS is accepted widely as an evidence based and objective methodology to assess clearance and release times. “It is seen as the global standard to measure clearance and release times and identify bottlenecks, contributing to the implementation of the WTO Trade Facilitation Agreement (TFA),” he said.
The Monetary Authority of Singapore (MAS), Bank of Ghana (BOG) and Development Bank Ghana (DBG) have signed a Memorandum of Understanding (MOU) to develop the Ghana Integrated Financial Ecosystem (GIFE). The GIFE aims to enhance financial capabilities and access for micro, small and medium enterprises (MSMEs) in Ghana and generate greater opportunities for trade and financial services cooperation between Singapore and Ghana. Over time, it is envisaged that the integrated financial ecosystem model can serve the Asia-Africa SME trade corridor more broadly.
The GIFE will offer an open digital infrastructure for MSMEs in Ghana and Singapore in four key areas:
The SME Financial Empowerment Programme will help MSMEs build foundational digital financial literacy skills and gain a good understanding of cross-border financial services.
MSMEs in Ghana and Singapore can expand their international business connections in Asia and Africa, through a network of business-to-business e-commerce platforms.
DBG and partner financial institutions will provide digital trade finance and guarantees for eligible MSMEs through a digital platform.
MAS, BOG, DBG and financial institutions will jointly develop financial trust frameworks to assess credit worthiness for financing by enabling financial institutions to use alternative data sets, such as the track record of successful payments to suppliers and tax payments to relevant authorities.
Ghana to benefit from UK’s investment in West Africa’s agriculture sector (BusinessGhana)
Ghana is to benefit from United Kingdom’s investment in West Africa’s agriculture sector through increased trade and jobs. A statement issued by the British High Commission and copied to the Ghana News Agency on Thursday said the COVID-19 and Russia’s invasion of Ukraine had exacerbated the challenges of energy, finance, and food security. It said the UK, Ghana, ECOWAS and other partners were working together to ensure that Ghana produced more rice, facilitated trade, and reduced costs on the consumer.
Through the Africa Food Trade and Resilience programme, the UK Government, alongside strategic partners, was investing £450,000 to establish the ‘ECOWAS Rice Observatory’ (ERO) and its national chapter, known as the ‘Ghana Competitive Africa Rice Platform (CARP).’
In The Gambia, sustainable fishing a lifeline to economy under water (Trade for Development News)
On paper, fish is a small part of the economy of The Gambia. On the plate, however, fish is a big and important chunk of food security.
Agriculture contributing to 30 percent of GDP and employing seven out of every 10 Gambians, according to government officials. However, it remains mostly subsistence in nature, and The Gambia remains a net food importer, including of its staple, rice. The sector is also vulnerable to drought and the negative effects of climate change.
Fish-related activities are the main source of income for communities living near the coastline. The sector supports the livelihoods of more than 200,000 people and is particularly important to women who make up 80 percent of fish processors and half of small-scale fish traders.
African trade and integration
We need to introspect on what we need to do to improve implementation of AIDA. The starting point is to harness the spirit of pragmatism. Let us learn from our mistakes and adapt accordingly. Let us, from the lessons of experience build capabilities that will make our industrialization process grow with a dynamism of its own. For example, changing the perception and narrative that Africa is a high-return but equally high-risk investment destination starts with us. It is us, no other region of the world which will rebrand Africa.
We would demonstrate to the rest of the world that the reality on the ground is that Africa is a high-return and low-risk investment destination when their investments in Africa start generating high and safe returns.
We also need to work together in a spirit of Pan-Africanism which gave us the African Continental Free Trade Area.
Africa Investment Forum 2022 draws $31 billion in investor interest (AfDB)
This year’s just concluded Africa Investment Forum Market Days—the continent’s premier investment platform—has drawn $31 billion in investment interest from African and global investors. Combined with $32.8 billion from the rescheduled 2021 Africa Investment Forum Market days—which took place as virtual boardrooms in March this year—the forum has mobilized a total of $63.8 billion of investment interest this year.
The African continent has enormous potential and remains an attractive destination for investors, despite complex national contexts and geopolitical changes, say experts attending the Africa Investment Forum 2022 Market Days. Africa is facing external shocks that negatively impact its growth and socioeconomic development. The Covid-19 pandemic has compromised the sustained growth that the continent has enjoyed for the last 25 years, and the Russian-Ukraine war is threatening populations with a severe food crisis.
During the session titled “Trade and Investment: How can Africa be more competitive in the world context?” Souleymane Diarrassouba, Ivorian minister for Trade, Crafts, and Small and Medium Enterprises; Benedict Okey Oramah, African Import-Export Bank (Afreximbank) President; and Wamkele Mene, Secretary General of the African Continental Free Trade Area Secretariat, made opening remarks.
Africa’s potential in the world economy is growing. Most of its population is young people; a quarter of the world’s population is likely to live in Africa between now and 2050, and the African Free Trade Zone is making progress. Nearly two-thirds (65%) of unused arable land is found in Africa, which is also rich in minerals (including cobalt, lithium that are essential for producing batters, and Africa is the world leader in such agricultural products as cacao, coffee, cotton, essential oils, mahogany).
Minister Diarrassouba emphasized Africa’s relatively low production costs: ”Africa is the world’s most profitable region, according to the OECD. Investors from the continent and elsewhere ought to seize its enormous investment opportunities”.
There is an improvement in the Southern African Development Community (SADC) intra-trade which has risen to 23%, up from 19% in 2021, according to the latest African Union (AU) Regional Integration Report (2021). This improvement reflects the impact of ongoing efforts to roll out various provisions of the SADC Protocol on Trade, including the implementation of simplified trading arrangements that have enabled an increase in informal cross-border trade covering both agricultural and non-agricultural commodities.
The share of manufacturing value added (MVA) in Gross Domestic Product (GDP) is still below 12 percent compared to a target of 30 percent by 2030 and 40 percent by 2050. Most SADC Member states still depend on agro-based and mining commodities in terms of contribution to GDP.
EABC calls for set up of consolidation centres to boost export of fresh produce from the EAC bloc (EABC)
Speaking during the Regional Private Sector Engagement on Sea Freight Transport and Logistics sub-sector, focusing on fresh produce, organized by East African Business Council (EABC) in partnership with TradeMark East Africa (TMEA) funded by Ministry of Foreign Affairs of the Netherlands, Mr. John Bosco Kalisa, CEO EABC called for deliberate set up of fresh produce consolidation centers across EAC countries and improve transport interconnectivity in order to boost export volumes and competitiveness.
He said intra-trade in East African Community is low at 17% due to barriers and the high cost of transport estimated at appx. USD. 1.8 per tons per kilometer. He elaborated that the intricacies and competitiveness of EAC economies rely on the transport and logistics sector. He further urged the ports and trade facilitation agencies to facilitate trade better.
In her remarks, Ms. Paveen Mbeda, Head of Public-Private Dialogue and Export Capability at TMEA said TradeMark East Africa is committed to supporting trade facilitation initiatives to increase economic growth and prosperity. She explained that sea freight can cut carbon emissions by between 84%-95% according to a study funded by the UK government in 2021. She urged fresh produce exporters to explore sea freight options.
Mr. Ogambi said that the Port of Mombasa is a crucial landing point for goods and links to the Northern Corridor and expansion of sea freight through the port could increase exports to the Middle and Far East, including China & Singapore.
ECOWAS examines, validates draft memorandum directive on consumer protection (Tribune Online)
The ECOWAS Regional Competition Authority (ERCA) organized the fifth meeting of the Consultative Competition Committee(CCC) to examine and validate the draft memorandum on the ECOWAS Directive on Consumer Protection. The meeting also considered the presentation by Executive Director of ERCA, Dr Simeon Koffi, on the African Continental Free Trade Area (AfCFTA) competition policy and a report on the market research study on agriculture and food, transport and pharmaceutical sectors.
In his opening statement, the Minister of Trade, Industry and SME Promotion of the Republic of Côte d’Ivoire. Souleymane Diarrassouba expressed his satisfaction with the actions taken by ERCA to equip itself with all the legal texts that would enable it to be operational and to ensure the monitoring of the fair play of competition on the regional market.
The minister expressed the readiness of the Government of Cote d’Ivoire and his ministry to support the positive dynamics observed at the regional level, especially in the current global context of inflation which makes the support of consumers’ rights and interests an existential and vital issue.
Africa turns to Asia as demand for rice surges (Food for Mzansi)
Rice-growing experts from Thailand and Vietnam visited Tanzania in October to explore collaboration opportunities with African countries to boost rice productivity and production. Demand for rice consumption is growing in Africa, particularly in urban areas, and the level of domestic rice production is not keeping pace with the growth in consumer demand. To address this gap, the UN Food and Agriculture Organization (FAO) facilitated a three-day regional workshop involving African and Asian experts to share knowledge experiences on better rice production.
“It is important that we need to redouble efforts in sharing knowledge and experiences on better production but also for better trade in rice, using opportunities such as the African Continental Free Trade Area. There is no short cut to achieving some level of respectable self-sufficiency other than enhancing productivity, which at the moment is at a very low level,” said Abebe Haile-Gabriel, FAO assistant director-general and regional Representative for Africa.
Africa’s maritime agency cannot be overlooked (Chatham House)
Global economy
Trade must be a cornerstone of climate action, urges World Trade Report released at COP27 (WTO)
“This report is being launched at the same time as COP27. What I hope to see emerge there and elsewhere is a trade and investment facilitation pathway in support of a just transition to a low-carbon economy,” Director-General Ngozi Okonjo-Iweala, who is participating in the climate summit, said in her foreword to the report. “The report argues that trade is a force for good for climate and part of the solution for achieving a low-carbon, resilient and just transition,” she said. The Director-General will present the report at a high-level event for world leaders at COP27 on 8 November titled “Time to Act: Implementing Trade-Related Contributions to the Global Response to Climate Change.”
COP27 in Sharm el-Sheikh to Focus on Delivering on the Promises of Paris (UN Climate Change)
The United Nations Climate Change Conference COP27 opened on 6 November 2022 with the key aim of ensuring full implementation of the Paris Agreement.
Discussions at COP27 begin near the end of a year that has seen devastating floods and unprecedented heat waves, severe droughts and formidable storms, all unequivocal signs of the unfolding climate emergency. At the same time, millions of people throughout the world are confronting the impacts of simultaneous crises in energy, food, water and cost of living, aggravated by severe geopolitical conflicts and tensions. In this adverse context, some countries have begun to stall or reverse climate policies and doubled down on fossil fuel use.
COP27 is also taking place against the backdrop of inadequate ambition to curb greenhouse gas emissions. According to the UN’s Intergovernmental Panel on Climate Change, CO2 emissions need to be cut 45% by 2030, compared to 2010 levels to meet the central Paris Agreement goal of limiting temperature rise to 1.5 degrees Celsius by the end of this century. This is crucial to avoid the worst impacts of climate change, including more frequent and severe droughts, heatwaves and rainfall.
Africa says unlocking financing on climate is a key agenda at COP27 (The East African)
Share of emissions covered by carbon prices is rising, OECD data shows (OECD)
As part of their efforts to cut greenhouse gas (GHG) emissions, countries have increased their use of carbon pricing through taxes or emissions trading systems, with coverage increasing across countries and sectors in 2021, according to a new OECD report.
“Carbon pricing is one of a range of policy approaches that countries employ in their efforts to reduce emissions. This report shows how the share of emissions that is covered by carbon prices has increased in recent years,” OECD Secretary-General Mathias Cormann said. “It is clear too that a diversity of policy approaches can be used to boost mitigation efforts while ensuring energy security and affordability. The OECD’s new Inclusive Forum on Carbon Mitigation Approaches initiative will support the international community to reach net zero emissions by providing better data and information sharing about the comparative effectiveness of a full range of policy approaches beyond carbon pricing.”
Investment facilitation talks make headway on solving remaining issues in negotiating text (WTO)
An open-ended plenary meeting on 3 November wrapped up the consultations held by members in different configurations the previous two days. The consultations allowed delegations to discuss the eighth revision of the “Easter text”, circulated to all WTO members on 31 October, which includes an up-to-date annex revealing that several text proposals had been either dropped by their proponents or considerably streamlined.
The co-coordinator of the negotiations, Ambassador Jung Sung Park of the Republic of Korea, emphasized the progress achieved at this negotiating round. He stressed that four important provisions had been moved from text proposals in the annex to so-called “plain text” — namely, the part of the negotiating document that contains the provisions on which a significant degree of convergence among participants could be achieved.
Related News
tralac Daily News
Local news
UN diplomat advises Namibia to export more finished products (The Namibian)
THE outgoing United Nations (UN) resident coordinator, Sen Pang, believes Namibia should stop exporting raw materials to become self-sustainable. Pang told The Namibian yesterday at State House the country will greatly benefit if it decides to add value domestically and export finished products. “The raw material resources, if instead of exporting them as raw materials and having them further processed to sell as semi-finished or completed products, that would be a great gain for the country,” he said. He said this would also help with Namibia’s over-reliance on imports.
“If we can increase self-dependency to reduce dependency on imports, that would be good. Namibia has rich natural resources and a very productive labour force,” Pang said. Pang’s comments come a few weeks shy of the European Union (EU) and Namibia finalising their deal to export more unprocessed critical raw materials amid its energy crisis.
Nam rice bill at N$22,1 million a month (Namibian)
NAMIBIAN retailers import rice worth N$22,1 million on a monthly basis mainly from India and South Africa, trade data shows. Other countries, such as Thailand, Cambodia, Vietnam, Spain, Botswana and Ghana also supply Namibia with rice, although in small quantities. In some instances, the bill is as high as N$54,2 million, as was the case in February this year.
Although there are small rice projects in the country, such as the Kalimbeza rice project in the Zambezi region, Namibia does not export rice. The Namibia Statistics Agency (NSA) this week released trade data for September, showing imports for the month were slightly lower than the average at N$20,1 million.
Overall imports for September came in at N$10,4 billion against an export bill of N$8 billion – resulting in the country’s trade deficit of N$2,4 billion. The NSA says exports increased by 2,3% during the month from N$7,8 billion recorded in August.
Coffee prices decline on low demand, expected surplus (Business Daily)
Coffee prices continue to decline on the back of low demand and a projected surplus of the commodity in the world market occasioned by a better crop in Brazil and Central America.
The Kenyan beverage recorded a decline in the latest sale per 50-kilogramme bag to stand at $189 (Sh22,886) down from $191 (Sh23,111) previously.
Coffee earnings increased by $81 million in eight months to August compared with the similar period in the last crop season as more volumes offered at the auction and high demand pushed up the value of the beverage.
High imports bill widens Z’bar current account deficit (Daily News)
Zanzibar’s current account deficit widened to 314.8 million US dollars in the period ending September this year from 195 million US dollars registered in the corresponding period last year. According to the Bank of Tanzania (BoT) monthly economic review, the development was large, associated with an increase in imports bill that outweighed the impact of an increase in exports during the year ending August. Imports of goods and services rose to 500.7 million US dollars under the reviewed period from 382 million US dollars recorded in the corresponding period last year largely due to increases in imports of intermediate and consumer goods.
Intermediate goods imports rose to 332.1 million US dollars from 188.4 million US dollars mainly due to an increase in imports of industrial supplies, fuel and lubricants particularly white petroleum products as well as food and beverages including particularly edible oil and wheat as compared to the corresponding period last year.
Tanzania exports cashew nuts to US as focus shifts to value addition (The East African)
A consignment of processed cashew nuts from Tanzania to the United States left the country on Monday as the East African nation seeks to move away from exporting raw nuts to value-added ones. The eight-tonne cargo of processed cashew nuts was dispatched to New Orleans, Louisiana via the Julius Nyerere International Airport in Dar es Salaam.
While flagging off the cargo, Tanzania’s Deputy Minister for Agriculture Anthony Mavunde said WTH is supportive of the government’s plan to ensure that by 2025, 60 per cent of Tanzania’s cashew nuts are processed locally. Currently, the country processes less than 10 per cent of its cashew nuts, with the remainder being exported raw.
“If our plan succeeds, it will mean increasing new industries and creating more jobs for our youth,” he said.
With Prompt Reforms, Cameroon Can Turn Wealth into a Green and Resilient Future for All – World Bank (World Bank)
Cameroon could reduce its poverty rate five-fold by 2050 from 15% to 3% if it undertakes robust reforms to induce climate-action investments, says the World Bank’s newly released Country Climate and Development Report (CCDR). In addition, robust investments of $58 billion in adaptation and mitigation measures over the next 10 years could bring an additional GDP growth of 1% in 2050.
A business-as-usual approach is not an option. The report estimates that the country’s economy could lose up to 10% of GDP by 2050 if urgent climate adaptation measures are not taken. The CCDR provides specific policy recommendations for making development and adaptation gains in four priority areas: Agriculture, forestry, and land use; cities; human capital; and infrastructure. It identifies governance as a crosscutting reform area.
“We know that the first victims of climate change are the most vulnerable who see their livelihoods severely impacted and their homes affected.” said Abdoulaye Seck, World Bank Country Director for Cameroon. “An additional 1.3 million people could fall into poverty particularly in rural areas if no urgent action is taken to promote rapid, resilient, and inclusive growth.”
African trade and integration
Controversy trails Nigeria’s absence from AfCFTA trading (New Telegraph)
Indications have emerged that some African countries operating under the African Continental Free Trade Area (AfCFTA) agreement have commenced trading under the new trade protocol with Nigeria missing out in the league. With Nigeria’s slow approach to the continental treaty, findings are showing that some products from some African countries are already making their way into Nigerian markets.
Specifically, New Telegraph reliably gathered that some batteries manufactured in Kenya and other products are already flooding different markets in the country, while sources in the Manufacturers Association of Nigeria Export Promotion Group (MANEG) also hinted that some countries in the continent, mostly neighbouring countries with Nigeria such as Ghana, Cameroon, Ivory Coast, Burkina Faso and others have started trading with one another since July 25, this year.
the take-off of AfCFTA in the continent has seen some countries commencing trading under the new trade protocol, while others, including Nigeria, are yet to commence trading. Findings from MAN Secretariat revealed that members were not happy over the delay by the Federal Government in taking a decision on AfCFTA, as they have been waiting patiently to officially join in trading like Ghana, Egypt, Kenya, South Africa and others are already doing.
Meanwhile, a source from the Ministry of Industry, Trade and Investment told our correspondent that the report over the take-off of AfCFTA trading without Nigeria’s involvement could not be true as concluded negotiations on the rule of origin are not yet finalised. But some Nigerian exporters in MANEG hinted that some goods, like the Kenyan batteries were already being exported into Nigeria, while trading has fully commenced in among Ghana, Cameroon, Ivory Coast, Burkina Faso and others.
The committee guiding trading in AfCFTA started trading under the new trade protocol on July 25 in seven nations in Africa. “But where is Nigeria? It is amazing that our neighbours, Ghana, Cameroon, Ivory Coast, Burkina Faso and co, have started trading. “Kenyan batteries just arrived Lagos a few weeks ago. So, why are we not starting? and when is Nigeria going to start AfCFTA?” However, New Telegraph gathered that a clearer picture on Af- CFTA was expected to be known during this month’s African Union (AU) Heads of State meeting in Addis Ababa, Ethiopia.
Need for Speed in Ratifying COMESA Legal Instruments (COMESA)
The need for speed in ratifying and implementing various legal instruments agreed upon in the past was a rallying call during the 25th Meeting of COMESA Ministers of Justice and Attorneys Generals, conducted in Lusaka, Zambia, Thursday, 3rd November 2022. Keynote speakers at the meeting including the Secretary General of COMESA, Chileshe Kapwepwe appealed to the Ministers and the AGs to work closely with the COMESA Secretariat to assist their countries in domesticating the laws that the Council of Ministers has been passing over the years.
“There is a slowness within the Member States machinery that stultifies the process of domestication of COMESA legislation which unfortunately has caused a backlog,” said the Secretary General. “The slowed national processes of not domesticating COMESA legislation have had an adverse effect on integrating the COMESA region.”
She cited the delayed ratification of the Tripartite FTA, which is now three States shy of the 14 State’s ratification threshold for it to enter into force. This is one of her key tasks as the current chairperson of the Tripartite Task Force, to ensure it is attained before the year ends. Hence her appeal to the Member States at the meeting that have not yet ratified the Tripartite Agreement to “expeditiously do so as not doing so is adversely affecting a regional good in delayed trade, investment and services drawdowns for the benefit of the region’s populace.”
Zambia’s acting Minister of Justice Hon. Jack Mwiimbu, who was the Chief Guest stated that as COMESA goes in the era of digital economy, it is important that proper legislation is put in place to ensure the smooth running of the business across the region. This, he notes, is the responsibility of the COMESA Ministers of Justice and Attorneys General. “COMESA is the area and era of creating a digital economy and it is important that we come up with legislation that will spearhead this process and therefore I urge you as you deliberate to ensure that there is speedy implementation of these legislation,” Mr. Mwiimbu said.
CENTRAL AFRICA: Log export ban postponed indefinitely (AFRIK 21)
The UEAC Council of Ministers believes that the countries of the Economic and Monetary Community of Central Africa (CEMAC), namely Cameroon, Congo, Gabon, CAR, Equatorial Guinea and Chad, are not yet ready to apply such a measure. “There is a huge fiscal cost (…) Given the context in which we find ourselves, the ministers have considered, rightly or wrongly, but I think rightly, to postpone this decision to a later date,” explains Daniel Ona Ondo, president of the CEMAC commission.
The Gabonese minister mentioned the loss of tax revenue that Cameroon would suffer, for example, if the ban on log exports in the CEMAC zone were to come into force in January. “The implementation of this measure should lead to revenue losses in Cameroon of around 80 billion CFA francs (almost 122 million euros). When this decision was implemented, Gabon lost 75 billion CFA francs (over 114 million euros). Accompanying measures are necessary,” he explains.
Initially scheduled for 1 January 2022, the entry into force of this measure was then postponed to 1 January 2023. The aim of this measure is to increase, secure and develop wood resources. This is an opinion shared by the African Development Bank (AfDB), which is in favour of a process of sustainable industrialisation of the timber sector, in order to capitalise on the various value chains of the resource and generate jobs for young people.
New report reveals Africa is facing a crisis in funding for climate adaptation (African Business)
Africa is facing a critical shortfall in funding for climate adaptation according to a new report, State and Trends in Adaptation in Africa 2022, launched by the Global Center on Adaptation today. The report reveals that cumulative adaptation finance to 2030 will come to less than one-quarter of the estimated needs stated by African countries in their National Determined Contributions (NDCs) unless more funding for climate adaptation is secured.
In 2019 and 2020 an estimated $11.4 billion was committed to climate adaptation finance in Africa with more than 97% of the funds coming from public actors and less than 3% from private sectors. This is significantly less than the $52.7 billion annually to 2030 it is estimated African countries will need.
To increase the volume and efficacy of adaptation finance flows to Africa over the coming decade, the report makes a number of recommendations:
Africa Investment Forum: African investors asked to mobilize more for infrastructure in Africa (AfDB)
At the November 2 opening of the 2022 Africa Investment Forum, panelists called on African investors to increase financing for African infrastructure to make the sector attractive to foreign investors. The panel, ”Mobilizing financial capital: What investment model will attract world capital to Africa?” featured representatives of the African private sector.
Panelists focused on investment models offering the most competitive secured capital commitments and how development finance and capital investment can use mixed financing to make Africa more favorable for investments. This has become critical given the urgent need to better mobilize private capital for high-impact sectors in Africa, such as health infrastructure, to bolster the continent’s recovery in the wake of the Covid-19 pandemic.
Panelists highlighted Africa’s infrastructure finance deficit – of roads, energy, rail, gas and oil pipelines, health infrastructure, and education and training, among others. They proposed an array of local solutions for attracting better international capital.
African ports could be strengthened by adoption of smart technology (ITWeb)
With 38 of its 54 states being coastal or island states, it is no surprise that Africa is home to over 100 port facilities, including massive terminals in Durban, Port Elizabeth and Cape Town in the south, and Mombasa and Dar es Salaam in the east, and Lagos in the west. 90% of Africa’s imports and exports travels by sea. The volume of trade through these ports is enormous, with South Africa alone in pre-pandemic 2019 handling almost five million TEU (20-foot container equivalents) with just over 9 000 ship calls nationally.
However, few of these ports operate optimally, lacking a fully integrated rail and road system which enables all of the operational elements to ‘speak’ to each other, and for freight and logistics companies to monitor the progress of their goods. Manually operated loading and offloading at the ports is fraught with potential dangers and delays and the entire sector is therefore failing to extract the most out of what could be a far more lucrative freight economy.
“Ports are where cargo begins and ends it journey,” says Jiang Kaimin, senior marketing expert at Huawei’s customs and port business. “Ports must operate every single day and delays in any part of the process of arrivals and departures, shoreside operations, horizontal transport, yard and gate operations and tractor trailer transport can result in enormous financial loss. In Tianjin, Huawei has used cloud-based centralised dispatching to increase port-wide efficiency.”
Women shortchanged by digital finance (UNECA)
Africa must invest in Science, technology, engineering, and mathematics (STEM) education for women and girls, disciplines which would boost their economic empowerment and access to digital finance. Keiso Matashane-Marite, Acting Chief of the Gender Equality and Women’s Empowerment Section, Gender, Poverty and Social Policy Division at the United Nations Economic Commission for Africa (UNECA) says women and girls are marginalized economically. Women and girls face deep barriers in financial inclusion because they do not have the requisite skills and knowledge that STEM careers avail.
Ms. Matashane-Marite, speaking at a media briefing to present the results of the African Women’s Report on ‘Digital Finance Ecosystems – Pathways to Women’s Economic Empowerment in Africa’, lamented the many barriers that prevent financial access for women in Africa. The study was done to promote economic empowerment of women and girls.
“Without economic empowerment of women, substantive empowerment of women is an issue,” Ms. Matashane-Marite,” noted, arguing that economic empowerment for women is the right step in ensuring women are empowered in the social and political spheres.
Tapping into Africa’s vast potential to become a leader in the global maritime market (Mail & Guardian)
It has been over a decade since the AU signed the 2050 Africa’s Integrated Maritime strategy (2050 AIM) to strengthen the continent’s regional and international partnerships and advance individual countries’ economic well-being. Have the 2050 AIM objectives, such as promoting African vessel ownership, been achieved? The Government Communication and Information System (GCIS) in partnership with Mail & Guardian hosted a webinar on 31 October to report on the progress that has been made in the maritime sector over the past 10 years.
Key concerns highlighted by the AU leading up to the adoption of 2050 AIMS included: Africa representing less than 0.9% of global gross tonnage. Huge financial losses due to illegal, unreported, unregulated (IUU) fishing. Dumping of toxic waste. Environmental crimes such as oil spills. Illegal bunkering. Piracy and armed robbery in eastern and western Africa; terrorism; human, wildlife and drug trafficking. Climate change. Vusi September, Executive of Corporate Affairs for the South African Maritime Safety Authority (SAMSA), said the objectives of 2050 AIMS are: “Establishing a combined exclusive maritime zone of Africa, engage civil society and all other stakeholders to improve awareness on maritime issues, enhance wealth creation and regional and international trade performance.”
Wenjie Chen on the Latest Outlook for Sub-Saharan Africa (IMF)
Economic outlooks don’t come easy in the current environment but the latest Regional Economic Outlook for sub-Saharan Africa proved to be particularly challenging. Its title Living on the Edge tells part of the story but in this podcast, economist Wenjie Chen walks us through the research behind the new report. Chen is a deputy head in the Regional Studies Division and part of the team of macroeconomists who dissect regional trends to come up with key priorities for policymakers.
Global economy
Climate and Development: An Agenda for Action (World Bank)
Low- and middle-income countries can transition to low-carbon, resilient growth pathways if key conditions are met with international support
The analysis, Climate and Development: An Agenda for Action, compiles and harmonizes results from the Bank Group’s Country Climate and Development Reports, covering over 20 countries that account for 34% of the world’s greenhouse gas (GHG) emissions. It shows that investment needs are markedly higher in lower-income countries which are more vulnerable to climate risk, often exceeding 5% of GDP. These countries will need increased amounts of concessional finance and grants to manage climate change impacts and develop along a low-carbon path.
“Achieving climate and development objectives must go hand in hand. Climate action is a key global public good, requiring significant new financing from the global community and mechanisms for inflows,” said World Bank Group President David Malpass, “Well prioritized and sequenced climate actions, strong participation of the private sector, substantial international support and a just transition are critical components for impact.”
Director-General meets with CEOs to discuss improved access to COVID-19 therapeutics (WTO)
The discussions with top executives from producers both of original and generic versions of the main therapeutic medicines were along similar lines to the Director-General’s earlier valuable dialogue with vaccine producers. As with the earlier discussions, the conversation was informal and off the record, to enable an open sharing of experiences focusing on practical solutions.
Participants agreed to keep in touch and to continue to share information, as work continues on a range of fronts to expand and diversify therapeutic production and distribution around the world.
Related News
tralac Daily News
Local news
UK trade and investment with South Africa is growing, in both directions (Engineering News)
The UK Department of International Trade (DIT) on Wednesday released its latest “Factsheet” (actually a 17-page document) on bilateral UK-South Africa trade and investment. The Factsheet covered the four quarters ending at the conclusion of the second quarter of this year (Q2 2022) – or, on other words, Q3 2021, Q4 2021, Q1 2022 and Q2 2022. As it was a British document, all values were naturally given in pounds sterling.
To sum up, in the period under review, total bilateral UK-South African trade in goods and services came to £10.7-billion. This was 6.3% higher than in the equivalent four quarter period up to the end of Q2 2021. South Africa was the UK’s 27th biggest trading partner and accounted for 0.7% of total British trade. The UK DIT ranked South Africa, in terms of gross domestic product, as the world’s 35th biggest economy in 2021.
UK exports to South Africa during these four quarters had a value of £3.8-billion, which was 9.3% above the figure for the equivalent period in 2020-2021.
Of the UK’s exports to South Africa in the four quarters under review, 57.3% were in the form of services, worth £2.2-billion (which was 16.3% higher than during the previous equivalent period), while 42.7% were goods, with a value of £1.6-billion (a rise of 1.2%). Of British imports from South Africa, 87.4% were in the form of goods (worth £6-billion, and an increase of 3.6% over the equivalent 2020-2021 period) and 12.6% (or £871-million) in the form of services (but representing an increase of 12.8%).
pdf South Africa Trade and Investment Factsheet, November 2022 (657 KB)
Consultancy calls for removal of import duties on french fries (Engineering News)
International trade consultant XA Global Trade Advisors has called on government to conduct an urgent review of the impact of import duties on the increasing cost of food and to remove newly imposed duties on imported french fries. This call comes on the back of the International Trade Administration Commission’s (Itac’s) recent imposition of provisional duties on frozen fries imported or originating from Belgium, Germany and the Netherlands. XA Global Trade Advisors CEO Donald MacKay, speaking during a media briefing on November 2, said this was self-initiated by Itac, rather than being in response to local industry calling for it.
The provisional duties imposed are as high as 190% for some countries.
“We cannot continue to impose duty upon duty on food and expect it not to harm consumers. The duties on fries specifically have increased the price of fries by 88%, from R16/kg in 2021 to R30/kg in 2022. “Duties are not in the public interest. They are just another form of tax that consumers have to bear and have the concerning consequence of increasing the cost of food in an already tightly squeezed consumer market. The time has come to take a hard look at our trade policy and to weigh up its impact on the rising cost of living,” he emphasised.
Kenya’s new trade minister to crack down on local manufacturers repackaging imported goods (Garowe Online)
The newly appointed Kenya’s Trade and Investments Cabinet Secretary Moses Kuria plans to crack down o local manufacturers who are importing goods into the country and repackaging them, then selling them as locally produced items.
“We know that some players in the industry are asking to reduce taxes or support the ease of doing business in the country, then they go ahead to abuse our policies by repackaging imported goods to look like locally manufactured goods,” said Kuria. Mr. Kuria pointed out that it is important to support the local manufacturing sector since it contributes to tax revenue growth, and job creation increases exports, and supports various value chains.
“Our manufacturers need to increase their focus on enhancing value addition and by doing so, we shall be able to be a more self-reliant nation, source raw materials locally as well as competitively produce goods and services for the local and global market.”
“Our aim is to ensure that local enterprises have the same competitive advantage as multinationals operating in Kenya. We shall be setting up export hubs in all 47 counties, this means that we should have linkages from the bottom of the pyramid all the way to the top,” said Kuria.
Kenya to fall short of Comesa sugar import quota on biting global crisis (Business Daily)
Kenya will fall short of meeting its sugar import quota from the Common Market for Eastern and Southern Africa (Comesa) due to an acute shortage of the commodity in the world market, a move that will further subject local consumers to high prices. Kenya was allocated a quota of 180,000 tonnes of sugar by the Comesa secretariat, which it has to import this year from the member states. However, Kenya has imported 48 percent of the total allocation with only two months to the end of the year.
Head of the Sugar Directorate Wilice Audi says Kenya might not get all the required sugar by end of December because of a tight supply of the commodity at the global market.
He said the shortage may have an impact on consumers given that local factories are grappling with a shortage of cane. The price of the sweetener has so far hit a high of Sh312 for a two-kilo packet from Sh230 in June.
Adapting trade to climate change for competitive green growth in Tanzania (The Citizen)
The current national five-year development plan 2021/22-2025/26 prioritizes the development of trade in the pursuit of Tanzania’s mid-term development objectives of realizing competitiveness for industrialization and sustained human development. The plan has set an operational target of increasing exports to 28 percent of GDP and the share of exports in world markets to 0.15 percent.
Yet, the realization of Tanzania’s trade potential is currently circumscribed by concerns over climate change. Research suggests that climate change affects trade by disrupting distribution and supply chains and raising trade costs. The effects of trade on climate need not all be negative. Indeed, recent studies have shown that trade can build value chains that lead to more efficient use of resources and access to effective low-carbon technologies.
Therefore, in the presence of sound environmental policies, lower barriers (e.g., by removing tariffs and non-tariff barriers on climate-friendly products and services), and well-functioning institutions, international trade can be a powerful climate change mitigation and adaptation.
Gambia’s productivity increasing ahead of AfCFTA participation (Gambia Times)
In an interview with the Minister of Agriculture in his Banjul office, Dr. Demba Sabally explained that his ministry’s focus is increasing productivity while trade with the rest of the continent is the responsibility of the trade ministry. He added that his ministry is working on vegetable gardens and the ministry’s roots project has already rehabilitated six previously started gardens by the NEMA project, saying they would build 30 other new gardens.
Minister Sabally continued that the government under the Ministry of Agriculture is also building multimillion dalasi agrology centres in Farrafenni and Wassu that would enable the farmers to bring their products to the centres, saying it would have a bank, market and a cold store. The minister further explained that The Gambia is part of a lot of international protocols and also part of a lot of trade agreements and trade deals while stating that the market would be competitive soon.
“Very soon the market will be competitive and products will come to the country from every part of the continent duty-free and Gambia can also export. That’s why part of the goal is to develop our agro-business into a department that will train our people on value addition.”
African trade and integration
The results of the processes of industrialization and economic diversification in Africa show that our efforts in leveraging these since from the time our countries attained independence show that we have not generated the outcomes we want. In a majority of our countries, the share of manufacturing in the gross domestic product, as well as employment from the manufacturing sector are very low. The same is with the share of manufacturing in the export baskets of most of our countries. As a result, our economies face, among others, low productivity, low rates of economic growth, progressive decline in Africa’s share of global trade, continued heavy reliance on external borrowing and aid to finance our development, periodic debt crises and continued poverty.
Against this background, productive transformation, an issue that will come up in your deliberations, becomes a key task for all our countries. And this productive transformation is business unusual. LET ME STRESS: BUSINESS UNUSUAL. We have, in this connection, to differentiate our new efforts with those of the past by being more innovative.
Positioning African MSMEs to tap into benefits of AfCFTA (New Telegraph)
The African Continental Free Trade Area (AfCFTA) is a continental treaty that seeks to, among other things, eliminate tariff and non-tariff barriers that have hindered intracontinental trade and the movement of people and goods for centuries on the continent. It further seeks to liberalise trade in services and progressively promote investments, intellectual property rights, and competition policies and foster cooperation on all trade-related areas. As per trade analysts, the AfCFTA will be a game-changer for the continent’s people and their businesses as it will be the largest single market in the world that will combine about 1.3 billion people.
The AfCFTA recognizes the fact that Micro, small and medium- sized enterprises (MSMEs), informal traders, and youth and women business operators play a crucial role in African trade. For Africa MSMEs, the AfCFTA means, an opportunity to conquer new markets, expand their customer base, grow their revenues, and increase their brand visibility. This will translate into more jobs, increased national revenues, and improved living standards in the country. Since the African government signed and ratified the agreement, the ball is in the court for individuals to tap in the opportunities that the agreement encompasses.
At the national levels, government efforts to create awareness of the AfCFTA can be seen in most African countries through the ministry of trade, UNDP awareness campaigns, and active engagements to draft the AfCFTA national strategic plans, as well as the Ministry of international relations websites and webinars that are updating the residents on the AfCFTA current affairs. As we wait for some countries to release their national AfCFTA implementation strategy and action plan, here are some of the observations: The scanty provision of vital services to the MSMEs continues to encumber the processes of business development in Africa.
Digitalised customs could boost intra-African trade, tax officials say (The New Times)
Digitalising the customs operations has potential to boost intra-Africa trade and ensure effective revenue collection, tax authorities have observed. At a high level customs digitalisation forum taking place in Kigali, delegates said that for the Africa Continental Free Trade Area (AfCFTA) to succeed, countries need to integrate ICT in their customs administration.
The forum, being held from Thursday, November 3-4 under the theme “Leveraging on ICT to Boost Intra-African Trade,” has been attended by customs and excise officials from 30 countries from Eastern and Southern Africa and across the world.
Though all countries in the Eastern and Southern Africa region have digitalised their customs services, according to the World Customs Organisation (WCO), only a few of them have advanced systems. These are South Africa, Mauritius, Kenya and Rwanda. However, there remain challenges that hamper digitalisation of customs operations in Africa.
“The main challenges have been low trade volumes as a result of different non-tariff barriers and the low level of technology in eastern and southern Africa caused by low budget funding,” said Larry Liza, the director of WCO Eastern and Southern Africa.
“If countries digitised customs, they would improve the efficiency of their operations and tax payers’ and importers’ compliance,” said Jean-Louis Kaliningondo, the Deputy Commissioner General of the Rwanda Revenue Authority.
Africa is open for business, continent’s leaders tell investors as Africa Investment Forum kicks off (AfDB)
African leaders on Wednesday laid out the continent’s vast potential and invited global investors to seize investment opportunities. Speaking during the 2022 Africa Investment Forum Market Days being held in Abidjan, Cote d’Ivoire’s economic capital, the leaders vowed to continue working to strengthen the economic resilience of their countries against external shocks.
President of Cote d’Ivoire Alassane Ouattara expressed the hope that Market Days 2022 would break the $100 billion threshold in investment interest. Vice President Tiemoko Meyliet Koné delivered his remarks. Ouattara acknowledged the wave of threats African countries continue to face, including the Covid-19 pandemic, the war in Ukraine and the impacts of climate change. The Market Days 2022 theme, Building Economic Resilience Through Sustainable Investments, reflects these realities.
‘Immediately following the challenges of the pandemic, African countries are once again facing external shocks because of the war in Ukraine, with heavy economic, financial and social consequences,’ Ouattara said. The current crisis makes us even more vulnerable to food insecurity, Ouattara said.
EALA MPs call for usage of local currencies across EAC (The New Times)
Mnyaa Habib Mohamed is still inconvenienced by the same challenge he faced three years ago: he cannot buy or pay for goods and services using local currencies in the East African Community (EAC) member countries. This MP from Tanzania is a member of the East African legislative Assembly (EALA) – the Parliament of the EAC. Tanzania is one of the seven EAC Member States, along with Burundi, Democratic Republic of Congo, Kenya, Rwanda, South Sudan, and Uganda.
He shared his frustration on Wednesday, November 2, in Kigali, during an EALA session that was debating on the Report of its Committee on Legal, Rules and Privileges on the East African Community Surveillance, Compliance and Enforcement Commission Bill, 2022. This is one of the four institutions expected to carry out much of the preparatory work for the creation of the EAC Monetary Union.
African Development Bank calls for closer linkage of peace, security and development efforts (AfDB)
The African Union held its first Political Conference in Tangier, Morocco, with delegates calling for accelerated partnerships between the various actors to respond more efficiently to Africa’s challenges.
“If ever there was a time to reaffirm the strategic nature of the link between security and development, it is now,” Bank’s Vice President for Finance and Director of Financial Services, Hassatou Diop N’Sele stressed. She noted that due to the Covid-19 pandemic, Africa’s GDP in 2020 recorded its largest decline in twenty years. She added: “We have lost $165 billion and over 30 million jobs. More than 26 million people have fallen into extreme poverty and more than 250 million have been affected by conflict.”
“And now, as we begin a painful recovery, we face a food crisis: grain and energy prices have skyrocketed, while the lack of fertilizer threatens the balance of our food systems,” She noted.
CLIMATE CRISIS OP-ED: COP27 is an opportunity for Africa to leapfrog fossil-fuel-based development (Daily Maverick)
While COP27 should indeed look to build Africa’s climate resilience, it must not be short-sighted in ignoring opportunities for inclusive and sustainable economic development on the continent. Africa’s population will double by 2050, reaching 2.5 billion, with one billion of those people living in urban areas. If the needs of this growing population are met by fossil-fuel exploitation and unsustainable food systems, the world will not achieve the 2°C temperature goal of the Paris Agreement, let alone the 1.5°C target required by science. However, the continent is uniquely positioned to turn physical and socioeconomic challenges into opportunities by “leapfrogging” fossil-fuel-based economic development. This would help overcome Africa’s socioeconomic challenges, while simultaneously building resilience to physical and transition risks associated with climate change.
Catalysing climate finance pledged by developed countries to developing countries is critical, especially considering that only $20-billion of the promised $100-billion climate funding reaches African countries annually. It is, therefore, in the best interest of both Africa and the world’s Net Zero agenda for developed countries to follow through on these climate finance pledges.
Beyond this, COP27 should drive climate action, through both mitigation and adaptation, as an investment opportunity and source of socioeconomic development across Africa.
Burkina Faso to be excluded from U.S.-Africa trade deal - White House (Africanews)
The United States will exclude Burkina Faso from the trade agreement linking the world’s leading power to African countries, the White House announced Wednesday (November 2). The White House justified the decision by the lack of progress toward a return to democracy, after the two military coups in the country since early 2022.
“I have made this decision because I have determined that the government of Burkina Faso has not established, or made continued progress toward establishing, respect for the rule of law and political pluralism,” which are necessary elements of the African Growth Opportunities Act (Agoa) program, U.S. President Joe Biden said in a letter sent to the U.S. Congress. The exclusion of the West African country will be effective as of January 1 next year, the letter said.
In a statement, U.S. Trade Ambassador Katherine Tai stressed the need for “Burkina Faso to make the necessary decisions to meet the terms of the agreement and the return of democracy. “I will provide Burkina Faso with a clear roadmap to reintegrate into the program and our administration will work with them to make that happen,” Tai said.
India should leverage southern Africa’s rare earth minerals: Exim Bank (Business Standard)
Development finance institutions from India and the African Development Bank should work closely with the governments of the southern Africa countries to understand the needs of these commercial Rare Earth Elements (REE) development attempts and support the companies to develop the value chain from end to end, the report said. India needs to form strategic alliances with southern African countries where critical rare earth minerals are produced, as the world looks to the continent to fulfil the ever-increasing demand for them, a report by India Exim Bank has suggested.
Indian Exim Bank Inks Pact With Southern Africa’s Leading Bank to Boost India-Africa Trade (Adda247)
Export-Import Bank of India (India Exim Bank) has concluded a Master Risk Participation Agreement for supporting trade transactions with FirstRand Bank (FRB) Limited. The agreement was signed in Johannesburg on the sidelines of the India – Southern Africa Regional Conclave.
frica has positioned itself as a key partner in the global arena, a global investment and trading hub, a US$ 2.2 trillion market and a population base of over 1 billion, Africa offers a great market potential . With a largest arable landmass in the world, housing 30% of global minerals reserves, and 8% of the world’s oil reserves , the continent offers promising long-term sustainable growth prospects which would be further enhanced by deeper integration of Africa into the global economy. In fact, in the coming years, Africa is to benefit from strong fundamentals including a young and growing population, the world’s fastest urbanization rate, and accelerating technological change . The continent’s young population with a growing labour force is a highly valuable asset in an ageing world. By 2034, Africa is expected to have the world’s largest working-age population of 1.1 billion. Urbanisation is a common feature of most economies in Africa, according to estimates, an addition of 187 million Africans are expected to live in cities. This urban expansion is contributing to rapid growth in consumption by households and businesses. Further, penetration of smart phones is expected be more than 50% in 2020 from only 2% in 2010.
With a view to significantly enhance India’s trade with Africa, the Government of India (GOI) launched an integrated programme ‘Focus Africa’ from the year 2002-03. The main objective of the programme is to increase interactions between the two regions by identifying the areas of bilateral trade and investment. The ‘Focus Africa’ programme has been extended to cover the entire African continent.
Global economy
UNCTAD sets out actions to support least developed countries in the global low-carbon transition (UNCTAD)
As nations convene for the 27th UN Climate Conference (COP27), the UN Conference on Trade and Development (UNCTAD) has set out the actions needed to ensure global efforts towards a low-carbon future don’t leave least developed countries (LDCs) behind. UNCTAD’s Least Developed Countries Report 2022 published on 3 November says LDCs are the “litmus test” against which history will judge how effectively efforts to make the low-carbon transition consider development needs and countries’ different obligations and capacities to fight climate change.
The world’s 46 LDCs, home to about 1.1 billion people, have contributed minimally to CO2 emissions. In 2019 they accounted for less than 4% of total world greenhouse gas emissions. Yet over the last 50 years, 69% of worldwide deaths caused by climate-related disasters occurred in LDCs. “LDCs disproportionately bear the burden of climate change impacts,” UNCTAD Secretary-General Rebeca Grynspan said. “The international community must consider their development needs and fully support them to ensure a just, balanced and sustainable low-carbon transition.”
WTO marks 75th anniversary of the General Agreement on Tariffs and Trade (WTO)
DDG González said that the GATT’s durability owes much to the fact that it is underpinned by simple principles, such as non-discrimination, gradual reform through successive rounds of negotiations, and flexibility in the form of exceptions allowing members space for domestic policies. She underlined that the 75th anniversary should be a reminder that the GATT is a tool for international cooperation which is now all-the-more needed in view of the multiple crises affecting the world.
In her introductory remarks, WTO Director-General, Dr. Ngozi Okonjo-Iweala, recognised the incontrovertible role of global trade in driving prosperity around the world and in lifting over a billion people out of poverty since the establishment of the GATT. She said the multilateral trading system is “a jewel worth polishing” and that “the success at the 12th Ministerial Conference was just the start of the reforms that need to be made”.
Related News
tralac Daily News
Local news
South Africa can build a more inclusive, resilient, and sustainable economy while simultaneously responding to climate change, says the World Bank’s Country Climate and Development Report (CCDR) launched today with South Africa’s Presidential Climate Commission. The report highlights key policies and investments needed to achieve South Africa’s climate goals through a “triple transition” that is low-carbon, climate-resilient and just.
By implementing a low-carbon transition that aims to significantly lower emissions of greenhouse gases, South Africa can harness investments in new technologies to help resolve the protracted energy crisis. Low-carbon growth trajectory will also help strengthen country’s competitiveness, and reduce local air, water, and soil pollution that negatively impacts people, the environment, labor productivity, and food and water security.
By implementing a low-carbon transition that aims to significantly lower emissions of greenhouse gases, South Africa can harness investments in new technologies to help resolve the protracted energy crisis.
Developing country carbon emissions clemency not applicable to South Africa – Nicholls (Engineering News)
South Africa cannot be allowed to breach its climate change mitigation measures and Paris Agreement declarations despite it being an emerging country that is still heavily reliant on fossil fuels, South African Presidential Climate Commission mitigation head Steve Nicholls told delegates at last week’s ESG Africa Conference. Many African countries have, of late, requested lenience in meeting climate change mitigation commitments, requesting also a delay in their abandonment of cheap and easy-to-obtain fossil fuels as a result of their delayed and inhibited industrial and social development. Many argue that developed nations built their economy, industrial base and power generation network using vast volumes of fossil fuels and that Africa should also be allowed to burn the carbon intensive fuels for a while longer, while it develops.
However, Nicholls said South Africa, in particular, is a carbon-intensive emitter, sharing an emissions contributing position among the highest, globally. For this reason, Nicholls said South Africa has to reduce its emissions immediately.
South Africa looking forward to much improved stone fruit export season (Hortgro)
After a very disappointing 2021/22 season, which despite a good crop turned out to be a disaster on farm level given trade and logistical issues, stone fruit growers and exporters are looking forward to a much-improved offering of South African stone fruit for 2022/23. From a logistical point of view, supply is expected to be much more stable, reliable and on time given that logistical bottlenecks have been addressed. This will directly lead to SA stone fruit arriving in great condition, as it should.
This is a make-or-break season for many stone fruit growers who are already under huge financial stress.
The recent strike in the SA ports is over and the immediate focus is on recovery and removing the backlog from the system as quickly as possible. It has been agreed that perishables will be prioritized in this process and will receive dedicated focus from the range of service providers, including port operations, to ensure a return to timeous delivery of products to the trade. The stone fruit season is already underway. Globally, economies are taking great strain and consumer spending is under pressure, but growers are under even more pressure to remain profitable. Essentially, growers are asking for a fair return to ensure that the livelihoods of those dependent on the industry value chain, can be assured.
Bulk wheat orders offer 3-month price reprieve (Business Daily)
Kenyan consumers should brace for a fresh rise in wheat products should the Russia blockade of grains from Ukraine through the Black Sea persist beyond January. The exports of the grain from Ukraine were halted after Russia moved back on an agreement that had allowed the shipments of the commodities through the Black Sea, blamed on attacks on its ships in Crimea region. But millers in Kenya say the country is covered till January given that processors had received wheat orders expected to last next three months at the current cost.
“There is a lot of wheat coming in and there is still more in the high seas. I am not foreseeing a situation where the price of wheat products will rise beyond the current cost in the next three months,” said Bimal Shah, chief executive officer Broadway Group of Companies.
However, should Russia fail to revert to the agreement, Kenya will feel the pinch of the expected high prices that would have been occasioned by the blockade of grain from February next year.
Nairobi moves to lift barriers on Ugandan milk, poultry products (Monitor)
Last week, while at a function at the Kenya Association of Manufacturers (KAM), President Ruto gave the strongest hint that he would open up the Kenyan market to Ugandan products and do away with the protectionism exhibited by his predecessor’s regime. “Uganda should bring cheaper milk here because they can produce it more cheaply. We should (also endeavour) to add value to our milk,” he said. The idea, the Kenyan leader argues is to allow in goods from neighbours in exchange for their opening up to ensure Nairobi benefits from the provisions of the Africa Continental Free Trade Area (AfCFTA), which it can exploit instead of quarrelling.
“We should be adding value (to our milk), producing butter, powder for sale in the DRC, Central Africa and West Africa and we import cheaper milk from Uganda for our consumption,” said Ruto.
But the immediate task of lifting the ban will bank on the bureaucracy involved. As is the tradition, presidential declarations do not amount to policy until the local technocrats turn around the way of doing things, in writing.
NPA: Export Processing Terminal Will Boost Nigeria’s $2.5bn Non-oil Export (This Day)
The Managing Director of the Nigerian Ports Authority (NPA), Mohammed Belo-Koko yesterday in Lagos, stated that the Export Processing Terminal at Lilypond in Ijora, would further enhance Nigeria’s non-oil exports currently in the region of $2.5 billion. In a bid to ensure prompt and seamless processing of export cargoes accessing Apapa and Tin-Can Island Ports in Lagos, the NPA yesterday inaugurated Nigeria’s first Export Processing Terminal at Lilypond in Ijora, Lagos.
Bello-Koko said the export terminal would help Nigeria optimise the benefits inherent in the African Continental Free Trade Area (AfCFTA) agreement, saying greater efficiency would be infused into the logistics surrounding the entry of export boxes into the ports for onward loading on vessels.
According to him, there have been several cases of rejection of export originating from Nigeria, which could be attributed to time wastages and spending longer time at the port, but the terminal will ensure speedy processing of exports.
The World Bank Group’s new Country Climate and Development Report (CCDR) for Ghana estimates that at least one million more people could fall into poverty due to climate shocks, if urgent climate actions are not taken. Income could reduce by up to 40% for poor households by 2050. The analysis calls for pursuing a development pathway that builds resilience to climate change and fosters a transition to low-carbon growth through a combination of policies and public and private investments.
The West African country has achieved major development gains over the past three decades, but progress has slowed down. The report highlights that the country has not fully managed to convert its natural wealth into sufficient infrastructure, human, and institutional capital for sustained growth.
“The report demonstrates that Ghana can simultaneously pursue its long-term development and climate goals,” said Pierre Laporte, World Bank Country Director for Ghana, Liberia, and Sierra Leone. “Ghana’s contribution to global greenhouse gases emissions is small, with emissions on a per capita basis at 24% of the global average. The country can take a more resilient development pathway, avoiding costly lock-ins, leapfrogging to cutting-edge technologies, and starting to mobilize climate finance.”
Ghana’s National Competitive African Rice Platform launched (Graphic Online)
Ghana’s Competitive African Rice Platform (CARP) has been launched officially in Accra to boost the country’s rice sector. The platform seeks to offer a voice and space for national rice stakeholders in Ghana to scale their local impact on sustainability and competitiveness. Overall, the CARP seeks to reduce the overdependence on imported rice and strengthen public-private dialogue.
Under the initiative, small farmers across West Africa are being supported in boosting their rice harvests, improving product quality, and raising their incomes.
Following the launch in Accra on Tuesday, a secretariat to run the CARP will be set up to drive its operationalisation. A statement issued by Rebecca Weaver of AGRA explained that at a previous stakeholders meeting, the CARP’s governance structure was formalized, board members and executives appointed, and technical committees set up.
“Rice is a very important product for Ghana, accounting for nearly 15% of the country’s GDP. The CARP’s launch is, therefore, very timely as it will help different stakeholders to coordinate their investments in driving the transformation needed to boost the growth of the sub-sector for the benefit of local producers and the country at large,” said the Executive Secretary of ERO, Dr. Boladale Adebowale Abiola.
Fisheries Department To Transform The Value Chain (Voice Gambia)
The Department of Fisheries is galvanizing efforts to ensure that the fishing and the fisheries value chain in The Gambia is in line with an acceptable mordent standard. Against this backdrop, the department of fisheries convened three day training for stakeholders from 28-30 October 2022, at NaNA on proper fish handling, processing, preservation, and distribution techniques along the fisheries value chain. According to fisheries officials, the objectives are to raise awareness and increase understanding on post-harvest losses, Improve technical knowledge and skills of fish business operators in fish handling and preservation for improved fresh fish marketing among other things.
In her closing remark at the training, the director of the Department of Fisheries Anna-Mbenga-Cham said the government of The Gambia attaches a great important to the development of the sector because of its actual and potential contribution to national socio-economic development and growth. She pointed out that the sector provide food, creates employment, generate revenue and foreign exchange earning among other things.
According to the director of fisheries, The Gambia and the European Union (EU) signed a six year sustainable fisheries partnership agreement to strengthen cooperation in the development of sustainable fisheries, fight against illegal unregulated and unreported (IUU) fishing. And promote the blue economy including value chain, aquaculture, and support the development of the artisanal or small scale fisheries sector in The Gambia.
African trade and integration
AfCFTA needs well regulated financial infrastructure – Governor, BoG (BusinessGhana)
The successful implementation of the African Continental Free Trade Agreement (AfCFTA), will need a well-regulated African financial infrastructure, efficient and resilient payment systems, the Governor of the Bank of Ghana (BoG), Dr Ernest Addison has said. That, he said, would eliminate the use of third currency for settlement, improve liquidity and cost of transaction.
Dr Addison stated this in a speech read on his behalf at the opening of a regional course on economic issues in regional integration of AfCFTA in Accra yesterday and stressed that African nations, and the Economic Community of West African States (ECOWAS) sub-region, in particular, had a significant role to play in the success of AfCFTA.
The course is meant to enhance the knowledge of the participants on the general and specific issues relating to the Regional Economic Integration process in the WAIFEM member countries, particularly in the context of AfCFTA implementation.
”There is a great deal of work to be done in deepening capital market integration, harmonising the legal and regulatory frameworks of the banking and financial sector, harmonising legislations, and cross-border payment system integration,” he said.
The New Age of Manufacturing is on Africa’s Horizon (Pumps Africa Online Journal)
A thriving manufacturing sector is a positive indicator for emerging market countries on the African continent. Industrialisation creates jobs and drives social, political and economic developments, helping to transform and improve the lives of ordinary people. With its young workforce and a keen desire for a seat at the global trade table, resource-rich Africa is abundant in opportunities. Whilst the projected trajectory for growth in the manufacturing sector has been challenged by the recent pandemic, experts foresee $666.4 billion in earnings by 2030.
The effort made by the continent’s leaders to band together and position themselves as allied trade partners capable of competing with other global players is an exciting and positive step. The African Continental Free Trade Area, launched in 2018, encompasses most of Africa and seeks to eliminate tariffs on goods and services (subject to certain conditions) to liberate the market and remove barriers to capital, investment and labour. Manufacturing lights the way to a united Africa that enables business and infrastructural development whilst reducing poverty and uplifting the lives of citizens.
With its significant exposure to the effects of climate change, Africa cannot afford to put itself at risk by following the traditional pathway to industrialisation. Whilst this is a challenge, it presents unique opportunities. By developing a manufacturing sector that integrates sustainability best practices to meet targets for the reduction of Co2 emissions, Africa could take advantage of the international market’s demand for green goods and services while simultaneously building a resilient economy that is not solely reliant on volatile commodities.
Businesses that take advantage of green initiatives could leverage niche markets in the production of goods that displace existing carbon-intensive products.
At a time when the global supply chain is swiftly becoming digitised, and both the private and public sectors attempt to minimise their carbon footprint, Africa finds itself in an exciting and potentially lucrative position where manufacturing is concerned. The continent could soon become an exemplary world leader by challenging conventions and embracing responsible, tech-based industrial initiatives.
One major lesson for Africa from the Covid-19 pandemic is that it had an outsize negative impact on workers in jobs that cannot be performed remotely. Such jobs are typically in the informal sectors that dominate Africa’s economies. Services and other sectors more amenable to remote work were far less affected, which reduced the need for government social safety net interventions.
The pandemic also accelerated the digital transformation known as the Fourth Industrial Revolution (4IR), which was already underway across the globe. As 4IR advances, Africa cannot afford to be left behind. ICT technologies can overcome gaps in a number of key sectors including agribusiness, communications and financial growth, unlocking better jobs, more effective tracking logistics for supply chains and even improved healthcare outcomes.
Fortunately, the continent presents an immense opportunity across a range of areas including mobile services, broadband infrastructure, and data storage. The continent’s young and fast-growing population, which has come of age in the digital era, is hungry for tools and technologies to meet their strong creative and entrepreneurial needs. And the absence of legacy infrastructure in many countries offers an opening to adopt the latest standards and innovations.
Strong coordination between business, governments and other actors such as civil society and regional agencies will be needed.
Managing Africa’s debt burden to spur development (UNECA)
Africa needs to mobilize innovative financing for development programmes and effectively manage its debt burden, which left untackled, threatens economic growth. A workshop on Debt Management, organized for policy makers from different African countries and research institutions to share challenges and best practices in debt management, heard that rising debt was constraining economic growth in Africa, worsened by the combined crises of the COVID-19 pandemic and the Ukraine war.
EAC: Paul Kagame urges adoption of sustainable funding (RegionWeek)
The President Paul Kagame on Tuesday, November 1, 2022 called for the establishment of a sustainable funding mechanism for the East African Community (EAC) to address the funding gap that could hamper the regional integration agenda, at the Parliament building in Kimihurura, during the first meeting of the fifth session of the East African Legislative Assembly (EALA) meeting in Kigali.
Kagame said that since its re-establishment 20 years ago, the East African Community has made significant progress towards the creation of the single market, indicating that the East African Legislative Assembly ( EALA) is an integral part of this success.
However the EAC, he explained, is underfunded, which delays the implementation of its projects and programs. As partners, we need to work together to adopt a sustainable funding mechanism and take full ownership of our development with less dependence on external aid.
“As partners, we must work together to adopt a sustainable financing mechanism and take full ownership of our development with less reliance on external support, which we are appreciative of. Connected to that, we must ensure that resources are spent soundly, and make financial accountability a top priority,” President Paul Kagame stated during the meeting.
Kagame also noted that the other challenge facing the regional bloc is that it is making slow progress on its goals, including the creation of the EAC monetary union (EAMU). “Second, we are far behind the timeline we set for ourselves to achieve some of the major goals for the Community. For example, the establishment of the East African Monetary Institute is years behind schedule. Yet, this institution is necessary for achieving a monetary union,” he said.
Afreximbank co-hosts Webinar on Intra-African Trade and Investment with the East African Business Council (Afreximbank)
African Export-Import Bank (Afreximbank) hosted a webinar on intra-African trade and investment on 20 October 2022, alongside the East African Business Council (EABC).
The conversation addressed key challenges confronting African businesses when approaching intra-African trade, recognizing that 80% of Africa’s small businesses have no access to trade finance and over US$5 billion is lost due to currency conversion during transactions. Afreximbank described the innovative products offered by the Bank to boost access to finance and cross-border payments under the African Continental Free Trade Area (AfCFTA).
Dr. Gainmore Zanamwe, Head, Intra-African Trade Bank, Afreximbank, called on this model of co-operation to be replicated across the continent. He suggested that a combination of industrialization and the development of regional value chains – as well as a reduced dependence on commodities – would create quality jobs and accelerate economic interaction between African businesses.
Comesa pushes for united air transport market (Chronicle)
THE Common Market for Eastern and Southern Africa (Comesa) has come up with an initiative aimed at strengthening air travel and ICT connectivity in the region by implementing two projects that will stimulate economic growth.
The projects — Support to the Air Transport Sector Development (SATSD) and the Enhancement of Governance and Enabling Environment in the ICT Sector (EGEE-ICT) — are both funded by the European Union through Grant Contribution Agreements each amounting €8 million. Acting Director General, Regional Affairs Department in Seychelles Mr Christian Faure told a regional media training and familiarisation workshop in Seychelles last week that a united air transport market will aid the continent’s economic growth. “Having a single unified air transport market gives an added impetus to the continent’s economic integration agenda in the Single African air transport market. “At the same time, we are looking at strengthening the inter-regional connectivity of our respective capitals,” he said.
Africa must prioritise support for female, youth farmers (BusinessGhana)
The President of the Private Enterprise Federation (PEF), Nana Osei Bonsu, has prevailed on governments to consciously roll out policies that can directly benefit women and youth in agriculture. The policies, he said, when implemented would close the gap to create more sustainable and inclusive participation of women, especially those in agriculture. “As a continent, stakeholders will have to prioritise support for female and youth farmers through affirmative policies,” he said.
He was speaking at the Women in Agribusiness Forum organised by Guzakuza on the theme: “Revitalising partnership for Sustainable Agribusiness Development.”
Nana Osei Bonsu said agriculture was considered an important engine of growth and poverty reduction across Africa adding that “in developing countries such as Ghana, women make approximately 40 per cent of the agricultural labour force and up to 50 per cent in different countries.
GRA boss addresses ATAF regional outlook tax seminar in Nigeria (The Point)
“In 2020, the global economy was hit by the coronavirus pandemic, which almost crippled the entire global economy, and whose economic ramifications are still affecting economies around the world. For countries like The Gambia that rely heavily on revenue from the tourism industry, the travels restrictions imposed to curb the pandemic significantly affected revenue receipt from the tourism industry. Before the pandemic, the tourism industry contributed 5% of our domestic revenue receipt in 2019 and this declined to1% in 2021,” Mr. Darboe said.
“As economies around the globe were trying to recover from the pandemic, a host of factors conspired to further dampen any hopes of recovery. The global supply chain crisis, the outbreak of the Russia-Ukraine war and the slow recovery from the coronavirus pandemic have all worsened the economic outlook for 2023.”
“Among these, however, the ongoing war between Russia and Ukraine has been more impactful on the economies of developing countries than the impact of the pandemic. The war has sent gas prices to the roof resulting in governments across the world, especially in Africa, paying huge subsidies to stabilise gas prices and curb inflation.
“The factors just mentioned should send Africa into a deep reflection to bring us to the realisation that our economies are extremely fragile and events outside our continent can have such a huge impact on the lives of our people.”
Climate Change and Select Financial Instruments An Overview of Opportunities and Challenges (IMF)
Sub-Saharan Africa (SSA) is the region in the world most vulnerable to climate change despite its cumulatively emitting the least amount of greenhouse gases. Substantial financing is urgently needed across the economy—for governments, businesses, and households—to support climate change adaptation and mitigation, which are critical for advancing resilient and green economic development as well as meeting commitments under the Paris Agreement. Given the immensity of SSA’s other development needs, this financing must be in addition to existing commitments on development finance. There are many potential ways to raise financing to meet adaptation and mitigation needs, spanning from domestic revenue mobilization to various forms of international private financing. Against this backdrop, SSA policymakers and stakeholders are exploring sources of financing for climate action that countries may not have used substantially in the past.
Weed for export: Raising African economies high on medical marijuana (The Exchange)
Medical marijuana may very well be the agri-business that Africa needs to get its economies high in the global multi-billion agro-industry. Already, Africa’s marijuana production is on the rise.
African marijuana production can help the continent address the various health remedies the plant has been found to help. Medical marijuana is used in pain management, appetite enhancement, and even reducing eye pressure. Generally speaking, medical marijuana is highly effective in the treatment of chronic diseases. According to data from the WHO, the global chronic disease burden reached 57% as of the year 2020. In recognition of the rising prevalence of chronic diseases worldwide, the global demand for medical marijuana is only expected to get higher.
How China is bypassing cargo chokepoints to speed up Africa trade (South China Morning Post)
China is using hybrid logistics links or multimodal rail-sea lines to bypass cargo chokepoints in an effort to speed up trade with Africa, where it is the largest trading partner.
Morocco is a strategic location because of its proximity to Europe and the Middle East. In January, Morocco became the first North African country to sign an agreement with China for the joint implementation of the Belt and Road Initiative.
A research note by the Hong Kong Trade Development Council (HKTDC) said Morocco was well placed for Chinese export manufacturers to reach African markets, and that they also could gain access to ports on the western Mediterranean and Atlantic.
“Firms can benefit from Morocco’s relationships with the European Union and countries in the Middle East,” the council said when Morocco signed the belt and road deal.
In 2020, trade between Morocco and China reached US$4.76 billion. Morocco mainly exports calcium phosphate, raw copper and zinc ore to China, while primary Chinese exports to Morocco are tea, pile fabric and broadcasting equipment, HKTDC Research said.
Global economy
Russia gives up obstructing grain exports (EURACTIV)
Russia said on 2 November it would resume its participation in a deal to free up vital grain exports from war-torn Ukraine after suspending it over the weekend in a move that had threatened to exacerbate hunger across the world.
Russia said on 2 November it would resume its participation in a deal to free up vital grain exports from war-torn Ukraine after suspending it over the weekend in a move that had threatened to exacerbate hunger across the world.
In Washington, the Commonwealth Secretary-General calls for more action to help small and vulnerable states (The Commonwealth)
The Commonwealth Secretary-General has welcomed the recently-launched Resilience and Sustainable Facility (RSF) - the International Monetary Fund’s (IMF) financing facility aimed at helping low-income and vulnerable middle-income countries build resilience to economic shocks – but said that more work must be done to improve eligibility, requirements, and conditions in accessing this facility for small and vulnerable states.
The Secretary-General was speaking at the 2022 Small States Forum on 15 October, which was held on the margins of the World Bank – IMF Annual Meetings in Washington DC.T he Commonwealth Secretary-General recognised that the world is at a critical moment due to overlapping and interlinked crises, including the impact of climate change, post-COVID-19 recovery, inflation, debt, food insecurity, and the cost-of-living crisis, all of which affect small states the most.
WTO Secretariat launches Trade Remedies Data Portal (WTO)
The new Portal provides a gateway to comprehensive data on all anti-dumping and countervailing duty actions notified by WTO members, displaying information in the form of searchable tables and customizable graphs. The Portal allows users to filter information based on various parameters. The Portal has been developed in the context of the Open Trade Data Initiative (OTDI), a WTO Secretariat initiative to improve data collection and dissemination, with the aim of updating the databases used to store information on members’ trade remedy actions.