All News
tralac Daily News
Local news
SARS records R19.70bn trade balance surplus (SAnews)
The South African Revenue Service’s (SARS) trade statistics for September 2022 recorded a preliminary trade balance surplus of R19.70 billion. These statistics include trade data with Botswana, Eswatini, Lesotho and Namibia (BELN), SARS said in a statement. “The year-to-date (01 January to 30 September 2022) preliminary trade balance surplus of R175.42 billion is a deterioration from the R346.88 billion trade balance surplus for the comparable period in 2021. Exports increased by 22.0% year-on-year whilst imports increased by 27.1% over the same period,” said the revenue collector.
SARS said the R19.70 billion preliminary trade balance surplus for September 2022 was attributable to exports of R191.56 billion and imports of R171.86 billion. SARS said the R8.62 billion preliminary trade balance surplus for September 2022 was as a result of exports of R174.54 billion and imports of R165.92 billion.
Trade Statistics for September 2022 | South African Revenue Service
South Africa: Structural constraints must be dealt with, Minister Godongwana says (Engineering News)
South Africa’s structural constraints must be dealt with as the country looks to spur on its economic recovery, Finance Minister Enoch Godongwana said on October 31. Speaking during a post-Medium-Term Budget Policy Statement briefing hosted by the South African Chamber of Commerce and Industry, he said government was working to restore the health of public finances in the country. He pointed out, however, that there were many risks, given the global slowdown. In this regard, he said the biggest structural constraint facing the country was a lack of stable electricity supply. Another structural constraint that needed to be urgently addressed was the country’s logistics industry, Godongwana said, with the need to fix this and bring in private sector participation in both rail and ports.
Private sector eyes 5m jobs in five-year enterprise plan (Business Daily)
The private sector has launched a new plan to create five million jobs by 2027 in an effort to deal with the unemployment crisis facing Kenya’s youthful population. The new plan championed by the Kenya Private Sector Alliance (Kepsa) will benefit youth from various job opportunities in the underserved sectors. Kepsa says it will scale up small enterprises through the Kenya Youth Employment and Entrepreneurship Accelerator Program (K-YEEAP) by unlocking financing, access to markets, business coaching and mentorship.
“The main goal of Kepsa is to encourage economic development and job creation in Kenya. This initiative aims to address barriers to youth employment such as demand and absorption capacity creation, given the dual challenges of a growing youth bulge and the systemic bottlenecks that youth face when entering the labour market,” said Ms Kariuki.
Kenya moves to avert potential foreign direct investment crisis (The East African)
Kenya is facing a foreign inflow crisis after the New York-based Morgan Stanley Capital International (MSCI) Inc. put the country on a watch list of troubled markets unfit for foreign investments. Trade, Investment and Industry Cabinet Secretary Moses Kuria told The EastAfrican that the government would on Wednesday review measures meant to attract foreign direct investment (FDI) in the country.
Separately the CS said on Twitter that his is under strict instructions from President William Ruto to look at the issues surrounding the free flow of foreign portfolio investments into Kenya. “I will outline the measures that the government of Kenya is taking in the next 48 hours,” he said on Monday.
Gov’t outlines 12 measures to restore economic stability by 2028 (BusinessGhana)
Government has introduced a new set of macroeconomic and spending guidelines aimed at fixing Ghana’s economic meltdown. These measures, adopted at the recently held cabinet retreat according to President Nana Addo Dankwa Akufo-Addo are aimed at reviving the economy for at least the next three to six years as part of a framework for the country’s post-COVID-19 programme for economic growth and the IMF support for its implementation and the Ministry of Finance in preparation for the 2023 budget. Speaking in his national address on Sunday, October 30, 2022, the President said:
“We are aiming to restore and sustain macroeconomic stability within the next three to six years, with a focus on ensuring debt sustainability to promote durable and inclusive growth while protecting the poor.”
We will review the standards required for imports into the country, prioritise the imports, as well as review the management of our foreign exchange reserves, in relation to imports of products such as rice, poultry, vegetable oil, tooth picks, pasta, fruit juice, bottled water and ceramic tiles, and others which, with intensified government support and that of the banking sector, can be manufactured and produced in sufficient quantities in Ghana. Government will, in May 2023, that is six (6) months from now, review the situation.
We must, as a matter of urgent national security, reduce our dependence on imported goods, and enhance our self-reliance, as demanded by our overarching goal of creating a Ghana Beyond Aid. Much as we believe in free trade, we must work to ensure that the majority of goods in our shops and market places are those we produce and grow here in Ghana.
Support to farmers and domestic industries, including those created under the 1-District-1-Factory initiative, to help reduce our dependence on imports, and allow us the opportunity to export more and more of our products, and guarantee a stable currency that will present a high level of predictability for citizens and the business community. Exports, not imports, must be our mantra! Accra, after all, hosts the headquarters of the Secretariat of the African Continental Free Trade Area.
African trade and integration
OHCHR recommends explicit recognition of AfCFTA on women in Africa (The Point)
According to the recommendations labeled by the OHCHR, the role of women in trade in Africa is mostly overlooked, as they make up the majority of the informal economy, agriculture and cross border trade. The recommendations continue that most economic policies are drafted in gender neutral language, which ignores the differentiated impact of policies on women. However, the recommendations stated that African governments should analyse the impact of the AfCFTA on women, and design measures to ensure that the trade agreements do not increase discrimination against women.
Additionally, the OHCHR recommends that broad based stakeholder consultations should be organised during negotiating, drafting, and implementing processes of the AfCFTA. “They should particularly include vulnerable and disadvantaged groups and populations, such as women and rural populations, small and medium scale enterprises, and informal sector workers. “Other stakeholders should include agricultural producers and farming associations, consumer bodies, chambers of commerce and industry, specific-industry associations, professional associations, standard-setting bodies, the media, as well as CSOs.”
Africa Investment Forum: Green jobs can help shift the climate of gender equality for African women (AfDB)
The Africa Investment Forum has a strong track record of supporting the success of women business owners and entrepreneurs. Less well-known is that the Africa Investment Forum, an initiative of the African Development Bank and seven partners, also works to channel investment to sectors offering women better access to higher skilled and better paying employment.
As African countries mount robust climate action responses by ramping up adaptation and tapping sustainable energy resources, a surge of green jobs is expected. A significant proportion of these will be in the energy, transport, construction, and agriculture sectors, all priority areas of the Africa Investment Forum’s 2022 Market Days, which will open from 2-4 November in Abidjan, Cote d’Ivoire.
Expanding opportunities for women to fill these jobs is a win-win situation. First, it has the potential to reduce persistent gender gaps in the African labor market. Green jobs are also projected to promote sustainable economic growth that can lift women and their families out of poverty.
There are additional reasons why women and green jobs are a natural complement. According to ILO, “women, with their unique knowledge and capabilities of natural resource management and use of energy sources are strong change agents and key contributors to climate change mitigation and adaptation programmes at local, regional and international levels.”
Echoing this, Vanessa Ushie, Acting Director of the African Development Bank’s African Natural Resources Centre said, “Women play a vital role in managing Africa’s natural capital assets and building climate resilience in our local communities.” Ushie was speaking following the launch of the Green Jobs for Women in Africa report in 2021. That report acknowledged obstacles to overcome to position women for higher-paying and more secure green jobs. Too often African women are shut out of formal sector employment owing to social norms and limited educational opportunities.
AfCFTA: The environmental case for the continental free trade area (Africa Renewal)
Some East African countries have taken advantage of such opportunities. For instance, Kenya’s annual export of horticultural products to Europe stands at over a billion US dollars, accounting for one-sixth of its total exports.
Yet the COVID-19 crisis exposed the vulnerability of these supply chains. We must also ask whether such production and consumption patterns are ultimately sustainable. Cash crops for export have always been controversial. While turning over good quality arable land for production of tea, coffee, vegetables, tropical fruits, or flowers has an economic rationale for cash-strapped developing countries, concerns have been raised (not always well-founded, it must be said) that it undermines food security.
What is clear is that currently in Africa many basic needs – food, housing, and access to energy - are unmet, and the triple shocks of climate change, the COVID-19 pandemic and the Ukraine conflict have made a bad situation worse.
A more vibrant regional market in food items under the AfCFTA will go a long way to addressing some of these challenges. Topographic and climatic differences across the continent mean that there is great potential for more intra-African trade in food crops. For example, when Kenya suffered a severe drought in 2016-17, imports from neighbouring Uganda cushioned the effects. A study by the UN Economic Commission for Africa (UNECA) argues that more intra-regional trade like this could significantly help improve food security across Eastern Africa. It is a contention underpinned at the continental level by the Framework for Boosting Intra-African Trade in Agricultural Commodities and Services, jointly developed by the African Union Commission (AUC) and the FAO.
African growth requires good governance - Lamola (SAnews)
Justice and Constitutional Development Minister, Ronald Lamola, says good governance is critical in ensuring the African continent begins to thrive in sectors such infrastructure development and innovation. The Minister was delivering the keynote address at the opening of the first ordinary session of the sixth parliament of the Pan African Parliament (PAP) in Midrand.
“We cannot continue to govern in the same way we have been governing in the past. Corruption and misgovernance should never define us. Instead Africa should be defined by digitisation, innovation, world class infrastructure and modernisation of the African continent. “As our continent has always been a reservoir of innovation and dynamic leadership, we need a generation across the continent that will give rise to the ideas of the likes of Professor li Mazrui, Kwame Nkrumah, Patrice Lumumba, Jean Martine Cisse, Thomas Sankara, Nelson Mandela and Samora Machel,” he said.
Turning to unifying the continent through integration, the Minister highlighted that a key area of work is the African Continental Free Trade Area (AfCFTA). “The [AfCFTA] is also one of the tools at our disposal to contribute to greater integration but it would require the finalisation of harmonisation of standards across the continent and the streamlining of our supply chains among others. “Much depends on the progress that we make at the national level to adopt the relevant legislation that will allow the commencement of preferential trade for instance, on trade in goods,” Lamola said. He said another key area is the engagement of Africans not only on the continent but also abroad.
Five things hindering businesses from seizing AfCFTA benefits (The New Times)
As there have been various efforts geared towards the implementation of the African Continental Free Trade Agreement (AfCFTA), calls continue to grow for the private sector to step up and leverage the available opportunities. But in a continental market of 1.2 billion people with a combined Gross Domestic Product of more than $3.4 trillion, businesses are yet to see the benefits of trade mechanisms and policies. Business executives indicate some of the challenges hindering the implementation at Small Medium Enterprise level.
UNCTAD Project: Inclusion of green initiatives in AfCFTA National Implementation Strategies
A just transition to renewable energy future in Africa (Africa Renewal)
“And by the way, when people talk about emissions, if Africa were to triple the use of natural gas for energy generation, it will contribute 0.67 per cent to global emissions.” At the same time, Mr. Adesina, who is considered a top African development expert, underscores the AfDB’s renewable energy bona fides.
Demand for more extensive rail infrastructure in Africa received a boost following the coming into force of the African Continental Free Trade Agreement in early 2021. The agreement aims to boost intra-regional trade and integration, two goals that rail corridors meet. In March 2022, during virtual boardroom sessions organized by the Africa Investment Forum, investors, deal brokers and government ministers came together looking to spur more railway deals. Deeper rail networks would boost Africa’s economic integration and the participants in these meetings, which work to bring transactions to financial closure, are well aware that the needed financing will come from the private sector and international financial institutions.
At Africa Investment Forum Market Days 2022, taking place in Abidjan, Côte d’Ivoire from November 2 to 4, railway infrastructure will again be an important sector. Also mobilizing resources for railway transport systems through public-private partnerships will be an important part of the discussions.
African Development Bank Vice President For Private Sector, Infrastructure And Industrialization Solomon Quaynor, captured some of the challenges of building out railway systems during a September 2022 conference held in Johannesburg. “We need to explore various financing models, and we need to think of this differently,” he said. “For example, we need to finance corridors and not just national railways networks. We need to think Public Private Partnerships to leverage limited public capital, but we have to be aware of the risks that private sector will not bear,” Quaynor added
COP27: ‘The African COP’ (China Dialogue)
When this year’s UN climate talks open in Egypt on 6 November, it will be the first time since 2016 they have taken place on African soil. COP27 is being dubbed “The African COP”. Under the theme “together for implementation”, the Egypt presidency is set to emphasise the climate issues most pertinent to African and other developing nations. Central to this will be the climate finance owed by the developed to the developing world, and the mobilisation of finance for adapting to climate impacts and compensating for the loss and damage they cause.
Africa is the least climate-resilient region of the world. Climate shocks are contributing to direct loss of economic assets and livelihoods. This increases the risk of famine, providing impetus for destabilising migration and threatening economic growth. The Global Centre on Adaptation (GCA) estimates that by 2040, the impacts of climate change could cost Africa between 2 and 4% of its GDP. Adaptation – societies and economies adapting to existing and expected climate change impacts – will be central to this year’s COP in Sharm el-Sheikh.
In their 2021 report on adaptation in Africa, the GCA estimated that the costs of adaptation on the continent will total US$50 billion per year by 2050, even if global warming is kept beneath 2C. While adaptation is expensive, studies show that the sums involved would be far smaller than the losses if nations do nothing. John-Paul Adam, director of the Technology, Climate Change and Natural Resource Management Division at the UN Economic Commission for Africa (UNECA), notes that investment in adaptation brings significant return on investment, and dividends in terms of reducing future risk. “There are also opportunities to link adaptation more directly to the creation of value in African economies and the evolution of the implementation of the African Continental Free Trade Area will also help define this,” Adam says.
The 7th Edition of the ECOWAS Sustainable Energy Forum (ESEF2022) has opened with a High-Level opening ceremony featuring ECOWAS leaders, and international partners reaffirming commitment to improving energy access for all and setting a path for energy transition in the West African region.
H.E. Sediko Douka, ECOWAS Commissioner for Infrastructure, Energy and Digitalization, said 50% of Africans have access to electricity, but less than 10% are accessible to those in the rural areas. He revealed that ECOWAS is working hard to integrate all communities into the grid, noting that: “By next year we will have electricity market where contractors can buy electricity.” He further added that: “We are developing a new energy policy for the region that will be operational by June next year.”
H.E. Engr. Abubakar Aliyu, Nigeria’s Minister of Power said: “Nigeria’s Energy Transition Plan is a prime example of the needed evolution of policies to deliver both the growth in energy consumption necessary for development and the climate response required for the preservation of our planet.” He noted that: “The importance of energy to human development cannot be over emphasized. Its relevance extends beyond socio-economic development to include security and sovereignty, foreign policy as well as international trade.
Countries seek joint approach to fight climate change in Horn of Africa (The East African)
Development organisations predict that up to 5 billion people will face water shortages by 2050 globally as the climate change bug continues to bite and the effects intensify. The Horn of Africa region is already highly affected by climate change and is facing the worst drought ever experienced in the last four decades. Besides the impacts of climate change, other significant trends and issues affect the continent, including rapid population growth, with urbanisation rates expected to triple by 2050.
The HoRN acts as a platform for interaction and knowledge sharing among stakeholders. It is also an opportunity for creating partnerships through engaging in effective multi-stakeholder partnerships to leverage the comparative advantages critical to making developing countries and communities more resilient and self-sufficient.
“Everyone around the globe is vulnerable to climate change. Even though other countries are more vulnerable, climate shocks and stresses are increasingly impacting all of us,” said Laurie Ashley, the Resilience and Climate Adaptation Advisor-Centre for Resilience at USAID.
The Southern African Development Community (SADC) will hold a Joint meeting of the SADC Committee of Ministers responsible for Energy and Water hosted by the Democratic Republic of the Congo (DRC) on 4th November 2022 in Kinshasa, the Democratic Republic of Congo. The meeting will evaluate regional projects in the energy and water sectors that are aligned to the SADC’s objectives and targeted outputs articulated in the SADC Regional Indicative Strategic Development Plan (RISDP) 2020-2030 and Vision 2050. The Ministers will also assess the status of implementation of key initiatives recommended by the SADC Summit of Heads of State and Government in August 2022 in Kinshasa, Democratic Republic of the Congo (DRC).
Global economy
Climate adaptation: The case for Aid for Trade (Trade for Development News)
On 30th and 31st July, almost 300 mm of rain fell on Banjul and the capital region[HS1] of The Gambia. The resulting flash floods directly affected more than 45,000 people. It was the worst floods seen in the country in the past 50 years. A few weeks later, an extreme rain event hit neighbouring Dakar, Senegal’s capital, and caused severe damage to roads and infrastructure. Uganda and Sudan were similarly affected this summer with floods that destroyed houses and infrastructure. The floods displaced thousands of people, disrupting lives and livelihoods. Taken together, all these events showcase how least developed countries (LDCs) are at the forefront of the climate crisis and how much they stand to lose. According to the International Institute for Environment and Development, 69% of worldwide deaths in the past 50 years caused by climate-related disasters were in LDCs[HS2]. This affects livelihoods too. It was reported that Malawi annually lost up to 1.7% of its gross domestic product between 2005 and 2010 due to extreme climate events.
The 2022 WTO/OECD Aid for Trade at a Glance report highlights how environmental aspects are being incorporated into AfT whereby 93% of the LDCs that responded to the survey indicated that environmental objectives are featured in their development strategies. However, environment-related AfT may be somewhat generally overstated, with prior assessments through the OECD indicating that a stricter definition of environmental aspects could mean that fewer than 2% of the AfT projects would have a clear environmental purpose.
In the past, trade has been accused of contributing to environmental degradation and of fuelling climate change. It is now seen as a powerful channel to disseminate more environmentally friendly technologies and achieve efficiency gains. These aspects will prove essential for LDCs to properly mitigate, and more importantly, adapt to climate change. Indeed, trade provides opportunities to create win-wins for both climate mitigation and adaptation. This is where Aid for Trade (AfT) comes in to support them in achieving these goals and continuing their march towards sustainable economic growth.
The 2022 report also notes that 69% of Aid for Trade projects that include climate-related objectives focused on mitigation in 2020, which compares to 47% for adaptation. The importance of adaptation objectives in commitments has however been growing, with a 77% increase in 2020.
At this point in time, LDCs and other vulnerable countries need to build their climate adaptation capacity. A recent WTO Climate Change Adaptation and Trade policy brief highlights that adaptation finance is particularly important for the poorest and most vulnerable countries with only 36% of climate finance dedicated to adaptation. While traditional export crops may suffer from more frequent floods, wildfires or drought, methods of production can adapt, and more climate resilient export products scaled up.
Wheat prices jump by nearly 6% after Russia withdraws from vital Ukrainian export deal (CNBC)
Global wheat prices rose sharply Monday following Russia’s withdrawal from the Black Sea grain export deal over the weekend.
The increases come after Russia announced Saturday that it was suspending its involvement in the Black Sea Grain Initiative, which allowed vital agricultural products to be exported from several Ukrainian ports. Russia announced it was withdrawing from the deal for an indefinite period after it accused Ukraine of a “massive” drone attack on the Black Sea Fleet in Sevastopol in Crimea.
Ukraine’s Foreign Ministry said, meanwhile, that Russia had suspended its participation in the grain deal on “a false pretext of explosions 220 kilometers away from the grain corridor” and that by doing this, it was blocking “two million tons of grain on 176 vessels already at sea.”
The United Nations and Turkey, which helped Ukraine and Russia to reach the grain deal in July, were scrabbling to rescue the initiative on Sunday and said they had agreed a plan with Ukraine to help move 16 vessels (12 outbound and four inbound) that were stuck within the established maritime corridor.
The organization overseeing grain exports, the Joint Coordination Centre, added in a statement Sunday that “in order to continue fulfilling the Initiative, it was proposed that the Turkish and United Nations delegations provide tomorrow [Monday] 10 inspection teams aiming to inspect 40 outbound vessels.”
WTO issues information note on technical barriers to trade discussions relating to COVID-19 (WTO)
The note points out that 34 WTO members have submitted 225 COVID-19 related notifications to the TBT Committee, accounting for 46 per cent of all WTO notifications relating to COVID-19. The notifications mostly deal with the extraordinary and temporary streamlining of certification and related procedures and the introduction of new regulatory requirements for medical goods in response to the pandemic.
The majority (68 per cent) of the COVID-19 related notifications covered regulations on medical goods such as personal protective equipment, pharmaceuticals and medical devices. A substantial number of the notified measures were reported as temporary — generally applying for a period of six months or one year, or for the duration of the public health emergency.
E-commerce talks progress, aim at issuing a revised negotiating text by end-2022 (WTO)
Ambassador Kazuyuki Yamazaki of Japan, who chaired the meetings, emphasized the importance of expediting work on achieving consensus on each article of a future agreement. In his introductory remarks, one of the co-convenors, Ambassador Mina of Australia, stated that the coming weeks are critical for the negotiations, adding: “This text will showcase the good progress we’ve made across the agreement. It will make it clear to negotiators … where the energy in these negotiations is currently concentrated and which provisions are moving forward.”
Related News
tralac Daily News
Local news
South African transport infrastructure needs to be prioritised, panel states (Engineering News)
Infrastructure in South Africa’s logistics sector needs to be a priority, alongside a regulatory framework that has a “no nonsense” approach to criminality, if the country’s roads, rail and transport industries are to thrive and be considered safe again, says professional body Railway Safety Regulator (RSR) safety permits management departmental head Denis Owaga. Speaking during an RSR and Creamer Media co-hosted webinar this week, he suggested that could be achieved by controlling crime and turning infrastructure development around.
However, this had proven to be a challenge, as the sector was still inundated with unsustainable solutions to issues, political issues driving foreign direct investment (FDI) decisions and a high rate of criminal intent on various routes.
These FDI influences are being addressed, and an amicable solution should be in the works soon, said Road Freight Association CEO Gavin Kelly in response to the same question posed by facilitator Chartered Institute of Logistics and Transport: South Africa president Elvin Harris.
The South African government has made several recommendations to address this challenge within its own borders, and has recommitted to these objectives in the National Development Plan when it was formally published.
However, systemic challenges remained around infrastructure as well, which Agriculture Business Chamber of South Africa chief economist Wandile Sihlobo said was concerning, considering that South Africa exported about half of its agricultural products, valued at just over $12-billion a year.
Namibia inks deal with EU on sustainable raw materials, its exports to EU up 50% (The North Africa Post)
Ahead of the COP27 in Egypt, Namibian and European Union officials say they have reached an agreement for Namibia to export rare earth materials to the EU, as Namibia’s total exports to the EU market have soared by 50%. The EU is interested in developing the mining of minerals like lithium, cobalt and graphite, which are currently mined on a small scale in the country, according to Erasmus Shivolo, a senior official from Namibia’s Ministry of Mines and Energy.
This possible agreement comes at a time when Western nations are seeking sources besides China for these minerals, which are used to make batteries for mobile phones, electric cars and other technology. Shivolo added that the EU is also interested in Namibia’s ambitious plan to become a producer of “green hydrogen,” a clean power source that could be used by industry and to power electric vehicles.
According to EU Ambassador to Namibia Sinikka Antila, both parties are now working on a MoU, which is an outgrowth of an African Union-European Union summit that took place in Brussels last year. The agreement has not yet been signed, but it will be soon, Antila said, adding that both sides “agreed that we will start on building a partnership on sustainable raw materials and the green hydrogen.”
Weakening economy pushes Kenyan banks to brink of fresh crisis (The East African)
Kenyan banks are teetering on the brink of another crisis triggered by the deteriorating economic environment and the persistent Russia-Ukraine military conflict after demonstrating strong recovery from the economic fallout effects of the Covid-19 pandemic. The lenders, who were handed a severe blow by the Covid-19 pandemic, started 2022 on a strong footing, posting double-digit profit growth in the six months to June 30, with majority announcing resumption of dividend payment to shareholders.
The industry lobby Kenya Bankers Association (KBA) said risks in the economy – including skyrocketing inflation, weakening currency, falling forex reserves and falling revenue collections – could filter into the banking sector dampening prospects for the entire year.
The Kenya Revenue Authority has a failed to meet its prorated revenue targets three months into the 2022/2023 fiscal year largely due to the deteriorating business environment and inflationary pressures that have forced consumers to cut on spending.
Nigeria’s rice import falls by 98.4% to 15 metric tonnes in 7 months (Nairametrics)
Nigeria’s rice imports from the Thai Rice Exporters Association (TREA), one of the largest rice exporters in the world, fell by 98.4% to 15 metric tonnes between January and July 2022, as against 957 metric tonnes imported during the corresponding period in 2021. This information is according to data from TREA for January to July 2022, as seen by Nairametrics.
During the review period, Nigeria’s rice imports from the association fell to the lowest level on record, even as rice importers spent less than a million Thai Baht. In the comparable period of 2021, Nigeria spent 15 million Thai Baht and a total of 30 million for the full year. Nigeria’s rice importation has dropped significantly in recent years following measures by the Federal Government to reduce importation and improve local production.
In 2015, the CBN on behalf of the Federal Government placed a ban on 41 imported items (rice included), from accessing foreign exchange from the official window. Also, the government banned the importation of rice through land borders and kept a hefty 70% tariff on imports coming through ports. These actions were taken in a bid to discourage importation and encourage local production.
Meanwhile, there have been reports of rice being smuggled into the country through land borders despite the government’s efforts to clamp down on these illegal importations. In 2021, the Senate Committee on Agriculture noted that about 2 million metric tons of rice are being imported or smuggled into the country.
Export of Nigeria’s fresh produce, vegetables slumps in six years (The Guardian Nigeria)
Compared to other ECOWAS countries, Nigeria’s export of fresh fruits and vegetables has slumped in the last six years, causing huge losses to farmers and the country in terms of revenue. Industry players are worried that as a very small share of the volume of fruit and vegetables produced is exported, the share is decreasing by half, as the production is growing and the level of export reducing. This, stakeholders claimed, is part of the reasons why airlines depart the country without exportable goods, a development that has been linked with loss of foreign exchange for the country.
The Senior Project Manager, COLEACP, Wester Schepers, who gave a graphical illustration of African countries performances, said Nigeria’s export of the commodities dropped since 2016, noting that as at 2019, Niger Republic and Côte d’Ivoire exported most fresh fruits and vegetables from the sub-region.
“In terms of total agro commodities from ECOWAS countries, Côte d’Ivoire contributed 42 per cent, Ghana 18 per cent and Nigeria eight per cent. Others were Senegal seven per cent, Niger six per cent, Burkina Faso six per cent, Benin Republic four per cent and Guinea-Bissau three per cent. Togo two per cent, Guinea two per cent, Mali one per cent and Gambia one.
Government urged to provide infrastructure to aid port operations (The Guardian Nigeria)
The Chief Executive Officer of Lagos Free Zone, Dinesh Rathi, has called on the government at both state and federal levels to support the private sector in creating a port-based ecosystem that encourages the diversity of businesses around it as this would help advance the economic prosperity of not just Nigeria but the entire West-African region. He stressed the need for government to provide road infrastructure and develop barging facilities to help decongest existing and upcoming ports.
Rathi, who made these remarks at the 2023 Ehingbeti Lagos Economic Summit, said: ”There is no reason why cargo that is ultimately consumed in Nigeria should be diverted to Lome or Cotonou. The potential of Nigerian ports and coastline is not fully exploited. Today, Nigerian ports are handling about 1.1 million containers as against ports in Egypt or South Africa, which handle 5 million containers.”
He said with Nigeria already signed on to several trade & investment treaties, such as the Africa Growth Opportunity Act, Lagos stands a real chance of becoming the manufacturing hub of Africa.
“What a cargo owner needs are to be able to take his cargo to the port. We need to utilise the barges as a way of evacuating cargoes. First of all, we need to transport the cargo. If it is by road or barge, it is an investment opportunity because it creates a lot of employment. I see more opportunities than problems. A lot of cargoes meant for Nigeria are being diverted to neighbouring countries like Togo (Lome) because our ports are not efficient”, said Secretary-General of the African Shipowners Association, Mrs Funmilayo Folorunsho
Options for Establishing a Local Content Regulatory Unit for Zambia’s Mining Sector (AfDB)
Mining is a core element of the Zambian formal economy in terms of its contribution to GDP, employment, and export receipts. Both the African Union’s Mining Vision (AMV) and the Southern African Development Community’s (SADC) Regional Mining Vision (RMV) emphasise the importance of realising the mineral extraction and processing linkages, and particularly the mining supply chain linkages, by increasing local content. The SADC RMV recognises the unique mining supply chain opportunity of a relatively large regional market for hard rock mining inputs (larger than the EU market), which could be exploited if member countries recognised regional content in their local content regulations, albeit discounted in relation to national local content value. The size of the Zambian import displacement opportunity is estimated at around $1 billion annually for goods, excluding services, using the AfDB 2017 survey, 2020 international trade data (ITC Trademap) and the S&P mining firm database (LION Model).
African trade and integration
Value addition is key to capitalizing on AfCFTA (Ghana Business News)
Ms Grace Antwi-Asante, the Programme Officer for Capacity Building and Stakeholder Engagement at the National African Continental Free Trade Area (AfCFTA) Coordination Office, has stated value addition is key for exporters to benefit from the AfCFTA agreement.
She said because many countries were trading in the same goods, the market would be competitive hence exporters needed to add value to their products to take advantage of the agreement. According to her, that would also require exporters to brand their products to meet the right specifications to ensure high patronage by buyers on the market.
Ms Antwi-Asante was speaking to participants at a day’s Capacity Enhancement sensitization workshop on the National Export Development Strategy (NEDS) in Sunyani.
UNECA: Intra-regional trade can reduce conflicts in Africa (Africa Renewal)
Ms. Morsy revealed the findings of the UNECA-commissioned study on “Realizing the Triple Nexus and Trade: Towards A New Agenda for Africa,” which demonstrates that trade is relevant in countering fragility and promoting effective transitions from war to peace. She was speaking at the opening of the Inaugural African Union Policy Conference on Promoting the Peace, Security, and Development Nexus, held on 25 - 27 October in Tangier, Morocco.
In his opening address, Moroccan Minister of Foreign Affairs, African Cooperation and Expatriates, Mr. Nasser Bourita, underscored the different strategies to secure peace across the continent as a necessary condition for development.
In a pre-recorded message, Ms. Amina Mohammed, the Deputy Secretary-General of the United Nations, urged participants reflect on practical measures to implement the development, humanitarian, peace-building nexus to deliver peace, security, and sustainable development everywhere in Africa.
“That includes strengthening joint conflict analysis, enhancing conflict prevention mechanisms, ensuring the meaningful participation of women in peace processes, and implementing joint initiatives to support humanitarian and political dialogue and development programmes,” she added.
Rwanda, Ghana launch trade forum to boost AfCFTA deal (Farmers Review Africa)
Rwanda and Ghana have launched a business forum that aims to boost the African Common Market, AfCFTA signed in 2020 in Kigali. Rwanda’s Minister of Trade and Industry, Dr Jean-Chrysostome Ngabitsinze said the business forum aims to capitalize on business opportunities and strengthen public-private partnerships in both countries. Stakeholder business, tourism, education, agriculture and others from both countries are among the guests on the forum. AfCFTA’s goal is to increase trade between these countries and to reduce the costs of exporting goods from one African country to another by 97%.
“The development of the industry in Africa is new, but we need to reform what we are doing so as to realize enough production on the African market. Low production of products is a challenge that is causing currency fluctuation in Africa. Let us go to bring opportunities in the market with more and better products and services,” Ngabitsinze said.
Increased trade and integration are the pathways to socio-economic transformation in Africa (EAC)
Increased intra-regional and inter-continental trade and integration are the pathways to socio-economic transformation and economic prosperity in East Africa and the African continent, Uganda President Yoweri Museveni has said.
On business, President Museveni urged East Africans to develop a culture of producing goods and services for sale with the consciousness of maximizing profits and minimizing costs, adding that this would transform the region from a net importer to a key export of goods and services.
The Head of State said that the region must undergo socio-economic transformation through universal education and full monetization of the economy if it was to make full use of its vast human and natural resources. President Museveni said that the low levels of the Gross Domestic Product in Africa was evidence of the low level of existing resources and urged African intellectuals to come up with local solutions for local problems as opposed to seeking well paying jobs and consultancies.
“Our economics professors should diagnose our problems and recommend solutions. The national market in our countries is not enough and we need to decide whether or not we want to be like Latin America which has lots of resources but is disorganized economically and politically,” said the Head of State.
“Integration is meant to give our business people access to bigger markets within the region and beyond. We are integrating in order to bring prosperity through increased production of goods and services” he added.
SARA pushes for greater regional integration in rail development (Engineering News)
As the Southern African Railway Association (SARA) pushes ahead with the drafting of a regional railway master plan, Namibia State-owned freight utility TransNamib CEO and SARA VP Johny Smith has confirmed the association is engaging with the Development Bank of Southern Africa on the viability of the plan. During the SARA Rail Conference hosted this week, Smith highlighted that a regional railway plan must be customer-centric, focused on proactive services, have solid supply chain principles, promote new technology and encourage partnerships for innovation on energy, communication, intermodal freight movement, equipment handling and maintenance.
He mentioned that a regional rail master plan must question and evaluate alternative energies for the sector, particularly hydrogen. He believed Southern Africa’s railway lines to be 30 years behind on innovation and standards, compared with international railways.
SARA, as the specialised railway wing of the Southern African Development Community countries and with its representation of 15 member countries, hoped that more partnership and action would emanate from the 2022 SARA Rail Conference.
Comesa in regional integration drive (The Herald)
The liberalisation of air services by Comesa member states will strengthen regional connectivity and boost economic growth and development over the region, experts have said. Air transport can connect markets, facilitate tourism and trade, and enable local firms to link with regional and global supply chains, so the more points that are connected to each other, and the more frequent the flights, the more air transport will be doing what it can do.
There have been concerns over the delays by member states to liberalise aviation services due to lack of information regarding the impacts and potential benefits of enacting or implementing such liberalisation. Aviation in Africa is yet to fully realise benefits, as the development and growth of air transport has been hampered by several factors, including political considerations, market fragmentation and restrictive policies, especially relating to bilateral air service agreements.
“If Africans can trade within themselves, the aircraft will be busy,” Mr Adikiny Olwenge said. “We export raw commodities to Europe and buy them back as finished products. The situation could be good if we took the goods to our best African destinations. There are a lot of benefits; regional and continental connectivity, economic development, jobs and social mobility.”
Museveni urges EA court to do more to support regional integration (The East African)
Ugandan President Yoweri Museveni has called on the East African Court of Justice (EACJ) to join in pushing for the dream of full integration of the East African Community by fostering economic transformation of the people. He argued on Friday that an integrated approach to tackling the region’s strategic security and economic woes would make the process faster and that court decisions should focus on this too.
He said universal education was a key pillar that would push the region into social economic transformation. This would enable all children to study free through primary, secondary and technical government schools. The second pillar, he said, is business, which involves learning the culture to produce a good or a service for sale.
East Africa’s economic recovery falters on debt, fiscal deficits (The East African)
The increasing risk of debt distress, widening fiscal and current deficits and limited economic diversification plans in the economies of East Africa, have combined to weaken prospects for growth 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. However, countries are yet to achieve their pre-Covid growth levels, according to the bank’s East Africa Regional Economic Outlook 2022 released last week.
According to the report, the projected strong growth is not uniform across the wider eastern African region, with top performers being Ethiopia, Kenya, Rwanda, Seychelles, Tanzania, and Uganda.
EA’s pace of economic recovery from the pandemic faces new threats from rising crude prices and the Russia-Ukraine war that has disrupted global supply chains leading to higher food and energy prices, depreciating currencies, and falling forex reserves.
The economists in the report “Resilience through tough times” show that the region’s GDP has been heavily impacted by political instability in Kenya and Ethiopia, the major economic growth drivers in the region, and reduced agricultural sector growth.
According to the World Bank’s latest Commodity Markets Outlook report released last week the weakening of currencies of most developing economies is driving up food and fuel prices in ways that could deepen the food and energy crises.
More Africans to Access Instant payments, As Africa Fintech Records 81% Growth (KT Press)
Mastercard and Cellulant have launched a new product that will enable millions of Africans to pay globally and shop online with or without a bank account, through a simple and secure payment experience. The partnership with Cellulant plays a role in advancing Mastercard’s worldwide commitment to financial inclusion to bring a total of 1 billion people, and 50 million micro and small businesses into the digital economy by 2025.
The partnership launched on the sidelines of the 2022 Global System for Mobile Communications Association Mobile World Congress (GSMA MWC) meeting in Kigali, will enable customers to pay globally with a Mastercard virtual payment solution linked to the Cellulant wallet, Tingg.
According to the Economy 2021 Outlook conducted by the Mastercard Economics Institute, 20-30% of the COVID-19-related surge in digital commerce will remain a permanent feature of overall retail spending, and shopping through mobile is largely how consumers access these opportunities. Across Sub-Saharan Africa, mobile devices are the primary channel used to connect to the internet. According to GSMA, smartphone connections are expected to reach 678 million in 2025, with a penetration of 65%.
As a result, alternative payment methods driven by mobile payments have increasingly begun to dominate the digital payments landscape. Consequently, consumers increasingly expect access to a broader range of online offers and digital financial services.
“We see the increasing proliferation of Fintech’s as a strategic opportunity to add value by creating more connections, better user experiences, and greater choice for consumers,” Amnah Ajmal, Executive Vice President, Market Development, Eastern Europe, Middle East, and Africa said.
New research shows mobile finance can increase national GDP (UNDP)
New research from Vodafone Group, Vodacom Group, Safaricom, and the United Nations Development Programme (UNDP) indicates that the successful deployment and adoption of mobile financial services is associated with a positive impact on GDP growth in developing markets as it helps businesses to reduce cost, access credit to invest, and to connect with consumers that were previously excluded from financial services.
The analysis was conducted as part of the companies’ Africa.Connected campaign, an initiative to drive sustainable development through collaboration and help close the divides that prevent progress in Africa’s key economic sectors. The findings are part of a new research paper, Digital Finance Platforms to Empower All, the fourth research paper developed and released under the Africa.Connected umbrella.
“Mobile financial services platforms like M-Pesa are vital drivers of financial inclusion in society which can improve individual life chances and enable enterprises to launch and expand, bringing wealth and jobs into developing economies. There remains though barriers both to accessing platforms – including digital literacy and smartphone accessibility – and to developing them – with an un-level regulatory playing field for non-traditional financial services providers in many countries.”
“Financial inclusion is both a pre-condition and a key enabler for meeting many of the UN’s Sustainable Development Goals, including reducing poverty, boosting economic growth, promoting market access and championing investment in key sectors like education, agriculture, and healthcare. But more importantly, it is about putting people at the center, empowering them with more agency over their money and increasing their resilience. Eliminating financial exclusion in Africa, and across the globe, must be a priority if we are to deliver on inclusive, sustainable prosperity for all on a healthy planet.”
A Quarterly Projection Model for the WAEMU (IMF)
Since institutional reform implemented in 2010, the West African Economic and Monetary Union (WAEMU) has experienced a major turning point regarding monetary policy. In particular, the reform has allowed the Central Bank of West African States (BCEAO) to modernize its monetary policy framework, bringing it closer to international best practices. The current institutional environment, characterized by a fixed exchange rate regime with capital controls and implicit targets for the level of international reserves and inflation, allows the BCEAO to pursue its main objective of price stability. At the operational level, meeting the new challenges brough about by the reformed framework requires the enhancement of the BCEAO’s macroeconomic analysis and forecasting systems. Extending the BCEAO’s analytical capacities using modern tools that can help inform the decisions of monetary authorities is a natural desired step. This study presents a semi-structural New-Keynesian quarterly projection model (QPM) for the WAEMU region (QPM-WAEMU) that accounts for the main specific economic characteristics of the regional economy.
Africa: Make the ‘Beautiful Game’ a Track to Greater Trade and Inclusion (allAfrica.com)
The approach of the 2022 FIFA World Cup, beginning 20 November, again illustrates that football is the world’s game - an example of how people from different cultures, backgrounds, and ages can come together for a shared experience.
This year, the world watches in awe as footballing artists including Kylian Mbappé, Lionel Messi, Cristiano Ronaldo, and the rest of the sport’s finest players demonstrate their craft on the global stage. More than five billion people are expected to tune in when the competition kicks off in Qatar. Our hope is that the tournament will help foster global solidarity in a time beset by war, economic instability and other crises.
As a business, football is also about trade. FIFA estimates that the global football economy is worth about USD 200 billion. Much of this value comes from trade in goods and services and the value of intellectual property associated with the ‘beautiful game’. As world football’s governing body, FIFA itself derives 95% of its revenue from the sale of broadcasting and commercial rights related to the FIFA World Cup.
Global rules on trade established under the World Trade Organization (WTO) help make all of this possible. By facilitating this, the WTO is one of international football’s biggest supporters.
Like international trade, football is a vital instrument for progressive economic development, inclusion and equity. A key mechanism for doing this will be to diversify the global networks of suppliers that feed into FIFA merchandising. The aim is to encourage more football-related merchandise to be sourced from the world’s poorest countries and from the millions of small enterprises that make up the backbone of the global economy.
Global economy
Russian Dispute Over Drones Threaten to Escalate World Food Crisis (Inter Press Service)
A war of words between Russia on the one hand, and the US, Britain, France and Germany on the other—specifically on the deployment of drones in Ukraine — has triggered an unintended consequence: a new world food crisis. The Western powers last week asked the UN to verify whether Iranian drones were being used “illegally” in violation of the 2015 Security Council resolution 2231 which endorsed the Joint Comprehensive Plan of Action (JCPOA) on Iran’s disputed nuclear programme.
Russia’s First Deputy Permanent Representative to the UN, Ambassador Dmitry Polyanskiy, insisted last week that drones used in Ukraine were Russian-made — not Iranian. He also warned UN Secretary-General Antonio Guterres and his staff not to engage in any “illegitimate investigation” of drones used in Ukraine.
And Russia pushed back further — and said it will re-consider its cooperation with the UN on the Black Sea Grain Initiative, thereby barring Ukraine grain exports. As expected, Russia pulled out of the deal threatening food security worldwide.
“What we need are more local and regional food and input production to ensure food security,” said Danielle Nierenberg, President Food Tank, whose non-profit organization aims at reforming the food system with the goal of highlighting environmentally, socially, and economically sustainable ways of alleviating hunger, obesity, and poverty.
“The disruption in supplies pushed soaring prices even higher and contributed to a global food crisis. The Black Sea Grain Initiative, brokered by the United Nations and Türkiye, was set up to reintroduce vital food and fertilizer exports from Ukraine to the rest of the world.”
UN chief ‘deeply concerned’ by stalled Black Sea Grain Initiative (UN News)
On Sunday, UN Spokesperson Stéphane Dujarric said, in a statement for the Secretary-General, that Mr. Guterres has decided to delay his departure for the Arab League Summit in Algiers by a day to focus on the issue. Following Russia’s invasion of Ukraine in late February 2022, mountains of grains built up in silos, with ships unable to secure safe passage to and from Ukrainian ports, and land routes were unable to compensate. This contributed to vertiginous rises in the price of staple foods around the world. Combined with increases in the cost of energy, developing countries were pushed to the brink of debt default and increasing numbers of people found themselves on the brink of famine.
The Initiative was due to run out in the second half of November, but there was an option to extend it, if all parties, including Russian and Ukraine, agree.
However, on Saturday Russia announced that it was suspending its involvement in the deal, citing an attack the same day on ships in the Ukrainian port of Sevastopol in the Crimean peninsula, which was annexed by Russia in 2014. The move reportedly took traders by surprise, and raised fears of another steep rise in food prices. Arif Husain, Chief Economist at the World Food Programme (WFP), reportedly warned that Russia’s decision poses a danger to a large number of countries, and should be resolved as soon as possible.
This year’s COP27 matters more than ever, says ICC (ICC)
Ahead of next month’s 27th United Nations Climate Change conference in Sharm El Sheikh, Egypt, the International Chamber of Commerce (ICC) has published an open letter underscoring the importance of a successful COP27 for business. With the future of international climate collaboration at stake, ICC Secretary General John W.H. Denton AO has sent open letter to Environment Ministers and Heads of Delegations.
Every COP matters to global business and we recognise the key role the private sector has in advancing implementation of the Paris Agreement—as an invaluable resource of expertise, but also vital to animating accelerated action and increasing the deployment of resources.
This year’s COP, however, matters more than ever. We certainly appreciate the complexity of the decisions governments are currently facing on several fronts but climate change is not an agenda we can afford to push back on our global schedule. We are on track to more than double global temperatures by the end of this century. This is not what was agreed under the Paris Agreement and it is not what countries reaffirmed at COP26 in Glasgow.
Finalising the Paris Rulebook in Glasgow, including a long-delayed settlement of Article 6 of the Paris Agreement, was an important achievement. If all this is to have meaning, countries at COP27 have to deliver on what is needed to implement the rules effectively, sustain the promise of Glasgow of “keeping 1.5 alive” and most importantly deliver for those most vulnerable to climate change.
Global Investment Trends Monitor, No. 43 (pdf) (UNCTAD)
Climate change investment affected by the energy crisis – Risk of a temporary slowdown
Related News
2022 United Nations Climate Change Conference (COP27): Resources
COP27 in Sharm el-Sheikh to Focus on Delivering on the Promises of Paris
The United Nations Climate Change Conference COP27 closed on 20 November 2022, delivering a package of decisions that reaffirmed their commitment to limit global temperature rise to 1.5 degrees Celsius above pre-industrial levels. The package also strengthened action by countries to cut greenhouse gas emissions and adapt to the inevitable impacts of climate change, as well as boosting the support of finance, technology and capacity building needed by developing countries.
Visit the official COP27 website for more info.
Outcomes
pdf Draft Text: COP27 overarching decision (18 November 2022) (138 KB)
pdf COP27 Sharm el Sheikh Implementation Plan | Advance unedited version (195 KB)
Guest article
pdf
The Landscape of CO2 Emissions Across Africa: A Comparative Perspective
(2.38 MB)
by Jaime de Melo and Jean-Marc Solleder
On this page
In the News
General news
COP27 Reaches Breakthrough Agreement on New “Loss and Damage” Fund for Vulnerable Countries
COP27 draft leaves out pledge to phase down all fossil fuels
Government Ministers at COP27 Call for More Ambitious Climate Action
A Climate Smart, Sustainable and Resilient Maritime Sector: Joint Statement
DG Okonjo-Iweala: Trade is critical in global response to climate change
DG Okonjo-Iweala: World “cannot afford to leave trade and WTO behind” in climate actions
DG Okonjo-Iweala: Trade is essential part of climate action efforts to achieve food security
Plan to shield people from climate disasters unveiled at COP27
How climate-induced disasters are creating a new dynamic of migration
Climate Plans Remain Insufficient: More Ambitious Action Needed Now
Getting Back on Track to Net Zero: Three Critical Priorities for COP27
COP27 and Africa
Afreximbank asserts Africa’s common position at COP27
African perspectives on climate change research
Namibia Minister launches Conference Outcome at COP27 Africa Day event
Africa marks special day at COP27 with a resolve to tackle climate change relentlessly
CCDA-X Just Transitions: Outcome Statement
High-Level Forum on Financing Energy Transition in Africa at COP27
Afreximbank Pledges to help bridge Africa’s Climate finance gap
UN cancels African energy finance initiative over fraudster’s role
UK Steps up climate adaptation finance support for Africa
African G20 seat to help push rich nations on climate pledges
New report: African countries face 34% GDP hit due to climate change even at 1.5ºC of global heating
Climate Change Damage in Africa Will Rise to U$415bn Annually By 2030
Africa: Helping Small Businesses Adapt to the Climate Crisis is Crucial for African Countries
Africa’s just transition demands a just formula guided by African priorities
African Union Launches Transforma Platform to Boost Clean Gas Use in Africa at COP 27
Can Africa power with renewables as it grows?
African and Global Partners Launch Multi-Billion Alliance for Green Infrastructure
The new scramble for Africa: turning the energy crisis into opportunity
Europe scrambles for African gas despite climate promises
Building resilience infrastructure to develop Africa
AAAP Chapter in the State and Trends Report
World Bank Announces New Blue Economy Financing Program for African Countries
Global leaders urged to scale up action on the Great Blue Wall Initiative
Leaders from Western Indian Ocean countries share progress on Great Blue Wall at COP27
Beyond $8.5bn: Rich countries commit more money for SA’s energy transition
South Africa’s ability to manage energy risks approaching a ‘tipping point’
Climate finance
Finance is the cornerstone for implementing climate actions and scaling up ambition and hence it has been at the heart of the UNFCCC process and the Paris Agreement negotiations. The Glasgow outcomes also reiterated the centrality of finance as a catalyst for progress on all aspects of the global climate agenda and many Parties demonstrated the political will to deliver on finance commitments.
COP27: Al-Sisi urges developed countries to commit to their financial pledges to developing nations
Developed nations backtracking on climate change mitigation commitments
DG joins world leaders in call to mobilize USD 12.5 billion for climate action in Africa
Funding hurdles expose countries’ reliance on climate-sensitive sectors
COP27: Why developing countries are not getting their climate finance
UN proposes list of projects worth $120 billion (19 in Africa)
DG joins world leaders in call to mobilize USD 12.5 billion for climate action in Africa
Decarbonising international shipping: At COP 27, European Commission provides additional €10 million
Funding hurdles expose countries’ reliance on climate-sensitive sectors
More developed countries pledging money to loss and damage funding
Finance for climate action: scaling up investment for climate and development
COP27: $3.1 billion plan to achieve early warning systems for all by 2027
COP27: experts explore avenues to mobilize more robust financing for climate Action
$7bn announced for global food security
Aid for trade should be a catalyst for climate finance
International Investment in Climate Change: Mitigation and Adaptation Trends and Policy Developments
DG Okonjo-Iweala: Make trade and investment a key part of delivering on climate action
Countries pledge added support to GEF funds for urgent climate adaptation
Call for North Sea oil and gas giants to pay ‘meaningful’ climate reparations
China willing to contribute to loss and damage
Beyond $8.5bn: Rich countries commit more money for SA’s energy transition
Science
2022 witnesses several landmark science reports from IPCC, UNEP, and other institutions. Ocean science as well as outcomes from Oceans conferences including the 3rd UN Oceans conference are gaining relevance and linkages to the global climate agenda are evident. The science related to the UNCCD and UNCBD, together with Stockholm+50, are also clearly relevant and interlinked with the climate action agenda.
pdf 10 New Insights in Climate Science 2022 (7.56 MB)
At COP27 Scientists Warn against Limits of Adaptation
COP27: New industry framework to measure sustainability of trade transactions
Report: The collective energy transition ambition to date is not enough
Sharp rise in fossil fuel industry delegates at climate summit
A climate-smart, sustainable and resilient maritime sector
Minimising Greenhouse Gas Emissions in the Petroleum Sector: The Opportunity for Emerging Producers
Share of emissions covered by carbon prices is rising, OECD data shows
Youth & Future Generations
Ensuring that the voice, perspectives and concerns of Youth and Future Generations is heard loud and clear is one of the objectives of the CoP27 Presidency.
Perspectives From African Youth Working Tirelessly For Climate Mitigation
COP27 Youth and Future Generation Day Ensures Younger Voices Have Seat at the Table
Decarbonization
Since the adoption of the Paris Agreement and all the way to Glasgow in 2021, several energy intensive sectors and companies have come forward with plans and policies and actions aiming to reduce their carbon footprints and to gradually move towards decarbonization. Technologies are emerging as potential solutions to reduce carbon in the atmosphere.
‘Fossil fuels are a dead end’, says top UN climate adviser on ‘Decarbonization Day’ at COP27
WTO joins call for greener markets and trade logistics to promote low-carbon transition
Adaptation & Agriculture
Adaptation and Resilience are of crucial importance to all parties and in particular developing countries. IPCC reports including the latest working group II report highlighted the devastating impacts endured by many countries across the world, and pointed to the fact that we are not on track to deal with current climate impacts nor are we prepared for the extreme weather events that are increasing in number and intensity.
Adapting to a Changing Climate: How Trade and Trade Policy Can Make a Difference
Which weather characteristics affect agricultural and food trade the most?
Adapt or starve: COP27 spotlights agriculture challenges and solutions in the face of climate change
Climate-hit nations have little time to fix food supply, UN says
Sustainable food cold chains reduce waste, fight climate change: UN report
Global Fertiliser Markets and Policies: A Joint FAO/WTO Mapping Exercise
Initiative on climate action and nutrition (I-CAN)
Gender
The role of women in dealing with all aspects of the climate change challenge is central, crucial and indispensable. Women continue to bear a disproportionate burden from the adverse impacts of climate change, and despite some progress having been made over recent years, the gender perspective needs further work to be fully integrated into the processes of formulating and implementing policies and actions on the ground.
Youth and women must be involved in climate action
On Gender Day African Development Bank rallies global support for women to build climate resilience
Water
Water is the source of life and livelihoods. Climate impacts on water and the linkages to wider, cross cutting impacts on development and livelihoods are well documented and substantiated by credible scientific reports and analyses including most recently by the IPCC and numerous other institutions.
Ace & Civil Society
Climate action requires engagement with, and contributions from all stakeholders. Needless to say, Civil Society is an indispensable partner in the global effort to combat climate change. With this in mind CoP27 will hold a dedicated day to engage Civil Society and to ensure their views and perspectives are integrated in a meaningful manner. Participants will have a platform for sharing best practices and identifying challenges, as well as networking and developing multi-stakeholder partnership opportunities, it will showcase the role and contribution of civil society in this area and across the board in different forms of climate action and policy response.
Empowerment of Civil Society Tops COP27 Agenda
Energy
Renewable energy, smart grids, energy efficiency, energy storage and a just transition in the energy sector are all elements of a much needed comprehensive vision of how energy ecosystems could evolve to in the near future. They are also components of a transformative energy future, challenges and opportunities for just energy transition.
All aspects of energy and climate change, including renewable energy, energy transformation, and a just transition in the energy sector, and Green hydrogen are all a potential energy source for the future.
New Report Warns World of Huge Untapped Renewable Energy Potential
A just green transition: concepts and practice so far
Climate Change and Development: Expert Views on Achieving a Just Transition
Energy crisis puts global climate measures to the test
Climate Actions and Africa’s Responses for a Just and Sustainable Transition
Oil and gas industry presence looms over U.N. COP27 climate talks
Keep the 1.5°C goal alive, experts and civil society urge on ‘Energy Day’ at COP27
Biodiversity
Nature and ecosystem-based solutions to address the impacts of climate change on biodiversity are an important component of mitigation and adaptation to the effects of climate change on the environment. The means to mobilise global actions towards halting biodiversity loss and reducing the impacts of climate change and pollution, as well as addressing the impact of climate change on oceans, endangered species, coral reefs, and sustainability of protected areas are required to deliver ecosystem services to human, impacts of plastic waste on the aquatic ecosystems and species, ecosystem-based solutions and their link to climate change mitigation and adaptation.
Protecting biodiversity is protecting the Paris Agreement
COP27 Presidency Connects Climate and Biodiversity
Solutions
Possible solutions for the broad array of climate change challenges range from the holistic, cross cutting solutions such as greening of national budgets, or sustainable cities, multilevel action and sustainable transport, to sectoral solutions like waste management, alternatives to plastic, resilient infrastructure, green building with an aim to achieve a transformative implementation building on agreed deliverables under different agreements and a further ambitious pledge to reduce climate impacts and consider the role of cities in combating climate change. Sustainable transport, is another key sector that provides direct and cross cutting impact on climate change, pollution, quality of living and efficiency, in this regard it is important to highlight potentials for this sector, success stories and available opportunities.
Focus on Solutions Concludes COP27’s Thematic Days Program
Reports
pdf Climate Change 2022: Impacts, Adaptation and Vulnerability - Summary for Policymakers (1.33 MB)
pdf Climate Change 2022: Mitigation of Climate Change - Summary for policymakers (2.06 MB)
The Race To Net-Zero: Is the global business community on course to beat the clock? - Baker McKenzie
pdf World Trade Report 2022: Climate change and international trade - WTO (2.62 MB)
pdf WMO Provisional State of the Global Climate 2022 (2.09 MB)
pdf Renewable energy targets in 2022: A guide to design - IRENA (7.01 MB)
pdf Initiative on climate action and nutrition (I-CAN) (501 KB)
pdf The cost to Africa: drastic economic damage from climate change - Christian Aid (3.38 MB)
tralac resources
Trade-related Outcomes From the UN Biodiversity Conference (COP15)
Did COP 27 really fail? Reflections on the climate summit
COP27 outcomes – a reality check
A Promising Start to COP27: Climate Change Loss and Damage Makes it onto the Agenda
Climate change, trade, and food security in Africa
The African Union Releases the Continent’s First Collective Climate Response Framework
Downbeat start to funding South Africa’s carbon transition
Floating LNG vessels in Africa: Africa’s gas future is floating offshore
Related News
tralac Daily News
Local news
Climate Resilience Development Pathways approach seen as key to building climate-ready infrastructure (Engineering News)
The efficacy of South Africa’s climate change mitigation efforts largely depends on how resilience is embedded in infrastructure development and adaptation strategies overall, which the Presidential Climate Commission (PCC) recognises in its Just Transition Framework (JTF). PCC commissioner and environmental organisation WWF South Africa climate portfolio senior manager Louise Naudé deems the Climate Resilience Development Pathways (CRDPs) approach to climate change action as apt for South Africa and its socioeconomic context.
Sars seizes goods worth millions as it takes action against illicit trade (SowetanLIVE)
Millions of rand worth of illegal goods were confiscated in several joint operations conducted through co-ordinated efforts in the SA Revenue Service (Sars) in the past month. One of the operations took place on Tuesday and related to the prevention and detection of cross-border smuggling and non-compliance with customs and excise in the cigarette and tobacco industry. “Sars enforcement teams deployed to the East Rand in Gauteng and supported by the police found a truck offloading raw tobacco, allegedly imported from Zimbabwe, at a warehouse. The team also found a substantial number of boxes with raw tobacco, which had been previously delivered to the warehouse,” Sars said in a statement.
SA open for Spanish business (SAnews)
President Cyril Ramaphosa says South Africa is greatly encouraged by the number of Spanish companies investing in the country’s economy across a range of sectors. Speaking at the SA-Spain Business Forum in Pretoria, following bilateral talks with his Spanish counterpart President Pedro Sánchez Pérez-Castejón at the Union Buildings, the President said he greatly appreciated the opportunity to meet with business leaders from the two countries. He told the Spanish delegates that South Africa is open for business.
“We want to see higher levels of foreign direct investment by Spanish companies into South Africa. We also want to see more South African companies investing in Spain,” President Ramaphosa said. He the engagement between South and Spain was a valuable platform to improve the balance of trade between the two countries.
“South Africa’s focus is to increase the export of value-added goods and services to Spain. Our focus, in this regard, is on mining equipment and technologies, advanced manufacturing, alternative energy equipment, pharmaceuticals, agricultural products and food processing equipment.
Manufacturers to label GMO-based products (Business Daily)
Manufacturers will have to label products that have more than one percent of genetically modified organism (GMO) content to give consumers a choice on what they want to consume. The National Biosafety Authority (NBA), the agency responsible for regulating biotech products in the country, says the move is not a safety concern but only meant to guide consumers in decision-making. Eric Korir, principal biosafety officer at NBA says it will be mandatory for manufacturers to have labels that indicate that the product is either GMO or non-GMO.
“Labelling is not a safety issue but for traceability of the GMO products in the market, with the label, we will be able to trace them and know where they are placed,” he said. “Secondly, labelling is also done to give consumers a choice. It is there to inform the public that the product is GM and make them decide whether they want to buy it or not.” The official said labelling of GMOs is a requirement by law and there is a regulation on how these products would be labelled once it is cultivated or released into the market.
How Rwanda-Ghana plan to capitalise on AfCFTA (The New Times)
Curtains on the Rwanda-Ghana business forum closed down Wednesday, October 26, as companies from both countries sought to create new trade deals and also strengthen the existing partnerships between private sector and government agencies.
Rwanda’s delegation, made of 26 companies in various sectors, was led by Minister of Trade and Industry, Jean Chrysostome Ngabitsinze, while their Ghanaian counterparts were led by Herbert Krapa, Deputy Minister for Trade and Industry.
The forum, which took place from October 24-26 in Accra Ghana, comes at a time when Rwanda and Ghana were recently announced among a total of seven countries selected to start trading under the African Continental Free Trade Area (AfCFTA) in a pilot phase. The event also builds upon different initiatives implemented over the last three years to deepen economic and trade relations between the two countries.
Nigeria moves towards global competitiveness for prosperity (The Guardian Nigeria)
The Federal Government is developing an effective and sustainable strategic framework for prosperity, wealth and job creation towards enhancing global competitiveness for productivity. The move, government said, was in line with the recommendations of the African Research and Innovation Forum (FARI), which requires Economic Community of West African States (ECOWAS) member states to emplace and popularise inclusive policies to promote Science, Technology and Innovation (STI) with the support of the academies of sciences.
Minister of Science, Technology and Innovation, Dr. Adeleke Mamora, stated this, in Lagos, during a South West dialogue on the establishment and implementation of technology and innovation centres for global competitiveness and productivity by the strategic implementation task office for Presidential Executive Order No. 5. Represented by the Permanent Secretary in the ministry, Monilola Udoh, the minister said the objectives of the technology and innovation centres was to ensure that products and services are globally competitive, improve on the present understanding of the role of STI in the socio-economic development of the country, towards moving Nigeria from resource to knowledge-based economy; reduction and stoppage of the present Research and Development (R&D) work in done in silos.
He said: “It is the vision of our country under the 2022 STI Policy to have large, strong, diversified, sustainable and competitive economy that effectively harnesses the talents and energies of its people and responsibly exploits its natural endowments to guarantee a high standard of living and quality of life for its citizens by 2030.” The message is clear; that only the best is good enough to achieve our vision and mission for the country.
Nigeria’s Failure to Utilise AfDB’s $244m Emergency Funds for Food Production Worries Adesina (This Day)
The President of the African Development Bank (AfDB), Dr. Akinwumi Adesina has called for faster action to avert food crisis in Nigeria, expressing worry that the country was yet to sign and utilise a $244 million funds for emergency food production approved by the AfDB since July 2022, The AfDB President, who spoke virtually, during the launch of the Special Agro-Industrial Processing Zones (SAPZs) in Nigeria, yesterday, said it was worrying that despite the approval of $244 million for emergency food production by the AfDB since July 2022, Nigeria was yet to sign for implementation.
This was just as the Vice President, Prof. Yemi Osinbajo yesterday, at same event, declared that food insecurity could be banished from Nigeria within a decade if certain decisive steps were taken by government
According to Adesina, to help Africa prevent a food crisis from the Russian war in Ukraine, the AfDB launched a $1.5 billion African Emergency Food Production Facility, to support 20 million farmers to access climate resilient agricultural technologies and produce 38 million metric tons of food valued at $12 billion.
African trade and integration
Be strategic in taking advantage of AfCFTA - McDan CEO urges businesses (Graphic Online)
Chief Executive Officer (CEO) of McDan Group of Companies, Daniel McKorley, has advised businesses in the country to be strategic in taking advantage of the African Continental Free Trade Area (AfCFTA) agreement.
By being strategic, he said businesses must first study the business terrain of their selected African markets before entering or doing business in the said African market. He said this at the 6th Edition of the Africa Trade Roundtable meeting organised by the University of Professional Studies Accra (UPSA) in partnership with the Association of Chartered Certified Accountants (ACCA).
He said studying the business terrain of an African market before entering it was necessary, given the fact that, business techniques that work in one African country would not necessarily work or be effective in another.
“Before you go into a country to trade, it is extremely important to know the culture of the country, the business environment of the country, the policies that affect business operations in the country, mergers and acquisitions in the country, among other things,” he added.
Sub Saharan organisations demand end to illicit financial flows (IndustriALL)
This was discussed at a regional workshop on IFFs in Accra, Ghana, 24-25 October, which was held with support from FES Ghana and attended by 30 participants from Ghana, Kenya, Liberia, South Africa, Tanzania, Togo, and Zambia.
Although the theme of the regional workshop was “Illicit financial flows in the gold mining sector in Ghana” it was mentioned that Ghana is not the only African country facing IFFs. Giving examples from case studies in Ghana, South Africa and other countries, the experts said IFFs often take the form of capital flight, tax evasion and avoidance, money laundering, concealing of assets, and commercial malpractices like mis-invoicing of trade shipments, and transfer pricing.
Discussions stated that close to $88.6 billion leaves the African continent yearly destined for tax havens in Panama, British Virgin Islands, Seychelles, and other countries mainly for the benefit of developed countries. This huge financial loss is enough to finance nearly 50 per cent of the costs required to meet Sustainable Development Goals targets. Experts at the workshop said this has been confirmed by UNCTAD research which states that IFFs are multiple times more than the foreign direct investment inflows into the continent.
Criminal activities that include illegal markets, corruption, and theft for terrorism financing are also forms of IFFs. According to research, IFFs continue to drain much needed revenue from developing countries in Sub Saharan Africa that could otherwise be used to eradicate poverty, create decent jobs, reduce the high levels of unemployment, and contribute to industrialization.
Vodacom M-pesa expands into 8 new SADC countries (The Herald)
Tanzania’s leading mobile money provider, Vodacom M-Pesa, has today announced an expansion of its International Money Transfer (IMT) portfolio to include 8 new countries from the Southern Africa Development Community (SADC) where its customers can send and receive money. The countries include South Africa, Malawi, Zambia, Zimbabwe, Lesotho, Mozambique, Swaziland and the Democratic Republic of Congo (DRC).
Mobile money has grown from a niche product to become Africa’s leading digital payment platform connecting millions across the continent and facilitating international trade and remittances. Vodacom M-Pesa has been at the forefront in terms of facilitating international remittances through its IMT portfolio which connects over 200 countries worldwide allowing Tanzanians to transact across borders.
“The entrant of mobile money in international remittance has not only improved ease of access but also reduced the cost of transfers bringing us closer to achieving the United Nations Sustainable Development Goal Number 10 thus we applaud this growth in this space and commend Vodacom M-Pesa for paving the way,” said Stargomena Tax, Tanzania’s Minister of Foreign Affairs and East African Cooperation
New approaches are needed for instant payment systems to reach their potential in Africa (AfricaNenda)
On October 25, 2022, AfricaNenda launched State of the Instant and Inclusive Payment Systems (SIIPS) 2022 report, in collaboration with the United Nations Economic Commission for Africa and the World Bank. It is the fruition of extensive consultation with a broad range of industry leaders, experts, and digital financial services (DFS) as well as MSMEs and 1,200 consumers in seven countries on the continent.
The first take from the report is that Instant Payment systems (IPS) are on a rapid ascent in Africa: 29 systems have gone live on the continent over the past decade, two new systems on average emerge every year, 21 others are underway. And usage of IPS is growing commensurately. In 2021, the 29 active systems on the continent processed nearly USD 1 trillion and 16 billion in transaction values and volumes, respectively.
Despite those encouraging figures, a lot remains to be done for IPS to fully realize their potential and create opportunities that reach, and benefit underserved low-income and marginalized populations. For that to happen, they need to be inclusive. Inclusive IPS do more than providing the mechanics to process digital push payments in near real-time, 24/365—they are designed to serve the low-income population, the financially excluded, the underserved. This means the system allows consumers to make low value digital payments, at a low cost, on a wide range of channels. Instead of being limited to sending money to family and friends, users can leverage IPS to meet all their payment needs from and to merchants, suppliers, and government.
Unpacking Africa’s FDI Landscape (Engineering News)
Foreign Direct Investment (FDI) flows to Africa have evolved over the past decades and remain crucial to helping the continent get on the path towards long-term sustainability and growth. Investment into key sectors, both intracontinental and from abroad, generates opportunities for employment, market growth, and community development. It is especially important for the transfer of knowledge and technology, the enhancement of competitiveness and entrepreneurship, and the increase of overall productivity in local economies.
FDI to African countries hit a record $83 billion in 2021, according to UNCTAD’s World Investment Report 2022. This was more than double the amount reported in 2020 at the onset of the COVID-19 pandemic, which heavily disrupted investment flows to the continent. Despite this growth, investment flows to Africa account for only 5.2% of global FDI.
Understanding the FDI landscape in Africa – by examining who invests, why they invest, what they invest in, and the challenges they experience – is imperative to stimulating attractiveness in the market and increasing investment flows to the continent.
Africa Investment Forum: Lusophone Compact continues to drive private sector investment in Africa (AfDB)
The Lusophone Compact is one of many successes that have emerged from the innovative Africa Investment Forum. The compact is a financing platform that provides risk mitigation, financing products and technical assistance to accelerate development of the private sector in Africa’s Portuguese-speaking countries.
The African Development Bank president, Dr Akinwumi A. Adesina, says the partnership was “designed with one simple, overarching goal: more private sector and public private partnership investments in Africa’s Portuguese-speaking countries.”
Since its establishment, the compact has continued to grow in scope. In September 2022, during a business and investment forum organized as part of the 5th Luso-Mozambican Summit in Maputo, the African Development Bank and the Portuguese government signed a guarantee agreement for €400 million. Under the agreement, Portugal is providing guarantees of up to €400 million exclusively to African Development Bank-financed projects approved under the arrangement.
As African countries currently face challenging conditions linked to the Covid-19 pandemic, Russia’s war in Ukraine and climate change, the Africa Investment Forum is prioritizing the areas of transport, health, energy, infrastructure, and food security. These are the areas the forum finds necessary to dwell on to drive recovery.
Conference delegates push for digital economy as new driver of Africa’s development (China.org.cn)
Digital technologies hold key to unlocking development in Africa if much effort is put into investing in technology infrastructure, delegates attending the Global System for Mobile Communication Association (GSMA) conference said here on Tuesday. “To ensure that no one is left behind in digital connectivity in Africa, we need to ensure more businesses have access to devices and affordable internet data because digital technologies have the potential to unlock development in Africa,” said Nompilo Morafo, Chief Sustainability and Corporate Affairs Officer of MTN Group at the ongoing GSMA Mobile World Congress (MWC) Africa 2022 which kicked off Tuesday in the Rwandan capital city Kigali.
“We must leverage private sector and government-led projects against civil society’s reach to the communities we seek change for, and we must connect the unconnected one way or the other,” said Paula Ingabire, Rwandan Minister of Information Communication Technology and Innovation. She emphasized that strong collaboration between the private and public sectors will drive Africa’s inclusive digital transformation.
Ruto: Possibility of East African political federation no longer idle dream (The East African)
Kenyan President William Ruto is openly pushing for the establishment of the East African Federation, endorsing an ambitious political formation that has been elusive and mostly avoided by his predecessors but one that hopes to guarantee a big market for regional goods and services and ensure strategic security. “The community is becoming even more tightly connected with infrastructure systems criss-crossing the member countries. The possibility of an East African Federation is no longer a wild imagination or an idle dream. It is no longer a matter of if, it is a matter of when,” Ruto said in his Mashujaa Day address on October 20 in Nairobi.
“In the East African Community, the rigid territorial borders are firmly on the way out as we move towards full integration. Non-tariff barriers have come down and trade volumes have soared,” he added.
A political federation is the ultimate pillar in the East African Community (EAC) integration process, preceded by the Customs Union, Common Market and a Monetary Union in that order. However, each of the pillars has been problematic to implement, leading sceptics to say that the federation may remain a mirage as it is also faces the challenge of competing political systems.
African Energy Chamber Launches ‘The State of African Energy: 2023 Outlook’ (African Energy Chamber)
The African Energy Chamber (AEC) – the voice of the African energy sector – is proud to announce the launch of its newest publication, ‘The State of African Energy: 2023 Outlook,” a detailed report analyzing current, emerging and future oil and gas market trends as well as geopolitical procedures shaping both the global and African oil and gas sector.
With the global oil market suffering combined impacts from the COVID-19 pandemic and the Russian-Ukraine war, the report provides a detailed analysis of how production and monetization will look like in 2023 for both African-producing countries such as Libya, Angola and Nigeria and global energy companies. As the global oil market volatility continues, the AEC report investigates what this means for African producers and the global market.
According to the AEC report, As COVID-19 subsides, the Russia-Ukraine conflict has and will continue to lead to Brent increasing, with Africa being in a prime position to increase its natural gas output and benefit from an under supplied LNG market and demand from Europe. Owing to the proximity of leading African producers to Europe and existing good trade relations between the two continents, despite total production across the continent declining from 2022 through 2025, Africa is expected to play a key role in meeting global demand.
Meanwhile, Nigeria, Algeria and Egypt lead African gas production and LNG flows in the short-term, with the report providing a detailed outlook regarding production, monetization and LNG developments across Africa’s emerging and already established markets such as Equatorial Guinea, Senegal/Mauritania and Mozambique.
With Africa seeking to attract investments to optimize the development, exploitation and monetization of hydrocarbon resources, including the estimated 125.3 billion barrels of crude oil resources and 620 trillion cubic feet of gas reserves for energy security and economic expansion, and as spending is set to be taken out of Russia and directed to other regions, the report details investment trends across Africa and how trends in Russia and across the globe can shape capital allocation for projects rollout and energy trading across the continent.
What’s more, with Africa eyeing to accelerate exploration investments and activities to boost its oil and gas reserves for a sustainable energy future, the AEC report provides insights on drilling campaigns across the continent and how recent sizeable discoveries, such as TotalEnergies and Shell’s in Namibia, will drive upstream activities in countries such as Mauritania, Senegal, Uganda, Congo, Mozambique, Ghana, Angola and Ivory Coast.
Opportunities and challenges for Central African Economic and Monetary Community (CEMAC) member states rose to the forefront of discussions at African Energy Week 2022 in Cape Town on Tuesday, during a panel session entitled, “Powering Up the Heart of Africa: Improving CEMAC’s Capabilities and Coordination to Eliminate Energy Poverty.” The CEMAC region – which comprises Cameroon, Chad, the Central African Republic, Equatorial Guinea, Gabon and the Republic of Congo – has struggled to coordinate its members and ensure long-term economic growth, fiscal and monetary stability and financing for energy and transport infrastructure.
“Central Africa has five producing countries, with some of the most important hydrocarbon potential in the Congo Basin,” stated H.E. Bruno Itoua.”Because of that, most countries feel that they do not need integration. When you are rich, you are rich enough for your needs and your own population. We have been struggling for integration for a long time. But now, things are changing. We have to face the energy transition. We need to have one single voice – not just for Central Africa, but for all of Africa.”
3 key fronts on which Africa must combat climate change (WEF)
Two key Continental frameworks towards enhancing disaster resilience in Africa have been launched. These include the Africa Institutional and Operational Framework for Multi-hazard Early Warning Systems and Early Action and COVID-19 Recovery Framework for Africa, which were endorsed at the 35th Assembly of the African Union Heads of State and Government that took place in February 2022.
In his speech, President Nyusi passionately called for all stakeholders to work together and combat climate induced disasters. He also noted that Mozambique contributed very little to air and ocean pollution. As Africa, we need to have a united voice on how to collectively address the impact of climate change. He noted that whereas Africa contributes little to climate change, it is the hardest hit by the effects of the changing climate. The DRM Champion also highlighted about his participation at the upcoming Conference of Parties on Climate Change (COP27). “We shall be taking a package of climate resilience to further strengthen our call for enhanced disaster preparedness in Africa. As it is, every African should be covered by an effective early warning system”, he stated.
Speaking at the event, H.E. Amb. Josefa Leonel Correia Sacko, the AU Commissioner for Agriculture, Rural Development, Blue Economy and Sustainable Environment (ARBE) stated that “the African continent is the most vulnerable to disaster risk”. She emphasised that since 2015, the continent recorded over700 disaster events, which affected over 80 million people and killing over 66,000 people across the continent.
Africa Tourism Partners unperturbed by AU snub (SABC News)
Inviting the African Union (AU) to be part of the Africa Tourism Leadership Forum (ATLF) in Gaborone, Botswana, to look at ways to improve intra-Africa tourism, proved a futile exercise. However, the snub was not going to stop important deliberations that took place at an event that African Tourism Partners (ATP) CEO Kwakye Donkor says was a tremendous success on many fronts. Donkor says getting the private sector apex bodies across the continent under one roof to start collaborating has been one of the key successes.
The Pan-African strategist and expert in areas of tourism development, intra-Africa tourism development has lamented the engagement with the AU ahead of the event, even though he says it was not going to stop the forum from going ahead.”
Tackling challenges: EU unveils plans to promote partnership with Africa (Vanguard)
The European Union, yesterday, launched an ambitious campaign underlining the increasing significance of its long-standing partnership with Africa and how it is transforming lives and inspiring hopes across the continents.
The Africa–EU campaign reflects on some of the initiatives that position the two continents as model, reliable, ambitious and dynamic partners. It also highlights the strength of the partnership, which has brought together peoples and institutions of both continents in pursuit of common goals for a better world.
The Africa-EU Campaign, tagged ‘We See Africa’, runs simultaneously in Nigeria, Cameroon, Congo, Tanzania and Zimbabwe, and builds on the resounding success of a previous one conducted across seven other African countries from 2020-2021.
Africa-Caribbean Trade Mission opens in Accra (MyJoyOnline)
The government of Bahamas has taken a giant step towards establishing business connections between the Caribbean nation and Ghana, where most of its citizens are believed to have been taken from as slaves four centuries ago. An Africa-Caribbean Trade Mission has therefore been established in Accra to facilitate the connection between Ghana and the country which is known largely for its huge tourism industry.
“Ghana has opened its heart to the Diaspora. In fact, it has become the gateway to Africa. The Year of Return, has demonstrated the desire within the Diaspora to re-connect with Africa. I believe that through trade, enterprise, and investment we can build durable partnerships that can increase growth and revenue for Ghanaian businesses, while also providing economic opportunities for Africa’s vast global Diaspora,” he said.
Global economy
UNCTAD outlines new productive sectors for economic diversification (UNCTAD)
UNCTAD has released a catalogue that, for the first time, identifies over 45,000 potential new products with export potential that can help diversify 233 economies. The catalogue is aimed at informing governments, the private sector and other stakeholders who make up national innovation systems about possible product areas where technology can be used to diversify economies for structural transformation.
Economic diversification is an essential feature of development. The more developed a country is, the more diversified its economy is likely to be, and the higher its technological level. Economic diversification is ultimately the result of innovation. Research shows that structural transformation – the process whereby a sustained period of rising income and living standards coincides with changes in the distribution of economic activity – increases economic growth and competitiveness, moving jobs from low- to high-value-added products.
Investment to tackle climate change falls amid global crises (UNCTAD)
Cross-border investment in climate change mitigation and adaptation is projected to decline in 2022 against the backdrop of a global investment downturn, according to a new report published by the UN Conference on Trade and Development (UNCTAD) on 27 October. Citing a bleak outlook for global foreign direct investment (FDI) in 2022, the report released in the lead-up to the UN climate change conference COP27 shows the number of new investment projects falling across most industries, notably those tackling climate change. Between January and September 2022, climate mitigation and adaptation sectors had, respectively, 7% and 12% fewer new projects announced, in stark contrast to the previous year’s strong acceleration. Mitigation projects accounted for 94% of international climate investments, whereas adaptation ones continued to lag far behind.
“The shift from fossil-fuel to green investments to support the energy transition risks a setback, due to the loss of momentum in renewables and high oil and gas prices,” the report says.
According to another report published by UNCTAD on 20 October, FDI flows in the second quarter of 2022 reached an estimated $357 billion. That’s a 31% decrease from the first three months and 7% less than the quarterly average of 2021. FDI flows to developed economies were 22% lower in the second quarter, compared to the average of 2021, at an estimated $137 billion.
Anti-Dumping Committee reviews members’ notifications of dumping actions and regulations (WTO)
The WTO’s Committee on Anti-Dumping Practices met on 26 October 2022 to review members’ latest notifications of new, amended or previously reviewed anti-dumping laws and regulations as well as reports on anti-dumping actions.
Members still falling behind on subsidy notifications, committee hears (WTO)
Concerns with delays in the submission of required subsidy notifications by WTO members and incomplete information in the notifications submitted continued to be expressed at the Committee on Subsidies and Countervailing Measures, which held its latest meeting on 25 October.
Related News
tralac Daily News
Local news
Lack of finance, security still plaguing South Africa’s transport industry – panel (Engineering News)
Considering recent developments – such as the Covid-19 pandemic and an economy trying to recover – professional body Chartered Institute of Logistics & Transport South Africa president Elvin Harris says a functioning transport and logistics system is critical to support the recovery of the economy and its future growth. However, this has proven difficult, as the transport and logistics sector has been facing increasing challenges in relation to maintenance, reliability, efficiency, lack of policy, electricity supply and an increase in organised crime in recent decades.
South Africa must accelerate to NEV manufacturing to ensure it can sustain industry (Engineering News)
There is still a lack of clarity about South Africa’s investment drive to transform the automotive industry to make new energy vehicles (NEVs) and to prevent the industry from losing 80% of its vehicle and component manufacturing capacity to changing mobility technologies, Naamsa | the Automotive Business Council president and Ford Motor Company Africa president Neale Hill told delegates attending the South African Automotive Week on October 26. The local automotive industry has requested an early review before the Automotive Master Plan’s 2026 date, as the initial objectives are no longer realistic, such as the aim to increase vehicle production by 250% to 1.4-million units a year by 2035 from current levels.
Inaugural South Africa Auto Week highlights sector’s significance on continent (Engineering News)
South Africa sees climate pact spurring billions in new funding (Engineering News)
South Africa expects an $8.5-billion climate-finance package that it’s negotiating with some of the world’s richest nations to attract significant additional funds to help it transition away from using coal to generate electricity. The government is discussing a wide-ranging energy transition plan for the next five years with the UK, US, Germany, France and the European Union as a step toward securing the funds, which will pay for part of the needed investment laid out in the proposal, according to Daniel Mminele, a former central banker appointed to lead the talks for South Africa.
Namibian exports to EU up (New Era)
Ambassador of the European Union (EU) delegation to Namibia Sinikka Antila, yesterday said Namibia’s exports to the EU market has grown by 50%, and at one point reached €36 billion (about N$650 billion) while imports only grew by 8.9%.”You sell more to the EU than what you buy from the EU which for your economy is so good. We are a key partner for trade with items such as frozen fish, unrefined copper, diamonds, uranium, cobalt and zinc, fresh grapes and charcoal among others,” Antila stated.
She was speaking yesterday during an Economic Partnership Agreement (EPA) trade forum press briefing. The one-day forum is scheduled to take place on Monday, 31 October 2022, where local businesses will showcase their potential products. Under the EPA, Namibia continues to benefit from duty free and quota free trade. The ambassador noted the EU hopes that through this partnership more diversified items will be on the menu.
The value of exports from Namibia to the EU was about US$1 billion (N$18 billion) in 2021, compared to imports from the EU into Namibia standing at US$600 million (about N$10.8 billion).
The EPA implementation programme is part of the EU, Southern African Development Community (SADC) cooperation signed in 2016. Antila noted the programme was delayed but is now picking up as the EU allocated €6 million (N$108 million) for trade with Namibia. “The EU is supporting Namibia to reform its business and investment environment and to reap the benefits of this SADC EPA agreement aims to directly enhance Namibia’s capacity for access to export markets and to attract investment with the EU,” she explained.
Better days as partners commit to improve worker welfare in textile industry (KBC)
Workers in the textile and apparel industry in Kenya have received renewed hope after leaders in the industry in Kenya gathered to stimulate procedures to improve workers welfare in the sector. The two-days gathering that took place in Mombasa was convened by IDH and brought together participants from 20 organisations in the sector ranging from manufacturers, domestic and export promoters, designers, institutions of higher training, employer partners, representatives of foreign buyers, employee representatives and the national and county governments to propose and implement ways of promoting better jobs and better income with gender mainstreaming taking centre stage in the discourse that forms part of IDH’s mandate in Kenya.
The textile and apparel sector in Kenya is largely controlled by global brands that are increasingly enshrining sustainability at the core of their businesses. This includes stringent social standards targeting workers. The sector in Kenya has continued to grow and absorb more employees in the last few years.
The growth in the sector has been triggered by the American Growth and Opportunity Act (AGOA) as well as other internal factors and a shift in supply patterns from Asia driving global brands to increase sourcing from Africa.
Adopt new grading system to increase earnings from our tea (The Standard)
The unique characteristics of Kenyan tea remain generally unmatched in many territories; rich in flavour, amber brown, an infusion that gels with milk and high in antioxidants. Tea remains one of the important cash crops that earn Kenya Sh131 billion in exports yearly. Tea is grown in 19 counties in the country. According to a report by the Tea Board of Kenya, tea production stood at 538 million kilogrammes in 2021, out of which 285 million kilogrammes came from smallholder farmers and the balance of 253 million kilogrammes from tea plantations.
On October 5, 2022, while flagging off the first consignment of Kenyan tea destined for Accra Ghana under the African Continental Free Trade Area (ACFTA) trade initiative, President William Ruto directed the Ministry of Trade to work with stakeholders to develop a Kenyan tea brand in a bid to guarantee farmers of good returns.
Currently, only five per cent of exported Kenyan tea is value-added, which the president directed must grow to a minimum of 50 per cent in the next five years. Two years ago, during the push for reforms in the tea sector, some alliances in the sector went to court to challenge the clause in the Tea Act 2020 requiring that all producers must progressively add value to their tea products to at least 40 per cent in a span of five years from coming into operation of the Act.
For Kenya to increase income in agricultural products like tea, value addition during processing is a must. Producers will then be able to compete with the best products in other parts of the world. There is also need to improve the value gained in production and supply chain by branding Kenyan farm products.
Owing to an imbalanced value chain, other players become beneficiaries of the farmer’s hard work. It is for this reason that the government must adopt a different approach that will ensure tea business satisfies the small-scale farmer and producers and at the same time players in the marketing chain.
President Muhammadu Buhari Seeks Expanded Trade Relations Beyond Gas Exports (Leadership News)
President Muhammadu Buhari yesterday in Seoul, expressed Nigeria’s desire to widen the scope of trade relations with the Republic of Korea beyond gas exports.
Speaking during a bilateral meeting with his Korean counterpart, Mr. Yoon Suk-Yeol at the Presidential Palace on the sidelines of the First World Bio Summit, the President called for expansion from the long-term gas contract to other areas.
President Suk-Yeol described Nigeria as Africa’s largest economy and cultural powerhouse that produces huge number of films, expressing confidence that Nigeria’s economic and cultural capabilities will contribute significantly to exchanges and cooperation between both countries.
Climate-Informed Economic Development Key to Malawi’s Future Growth and Resilience (World Bank)
Climate change will make it harder for Malawi to achieve its ambitious development goals— unless it accelerates policies and programs, as intended in its national Vision 2063, and supplements this effort with additional investment in adaptation, says the new World Bank Country Climate and Development Report (CCDR) for Malawi. Most immediately, Malawi can take steps to jumpstart investments in climate-resilient infrastructure and halt land degradation and forest loss to improve agriculture productivity and carbon capture. Prioritizing these actions, combined with expanded safety nets and economic diversification, could reduce the number of vulnerable households that would otherwise fall into poverty by as much as three-quarters.
“Malawi’s pathway to economic growth is persistently halted by climate shocks, leaving many millions trapped in poverty for many decades,” says Hugh Riddell, World Bank Country Manager for Malawi. “Vision 2063 for Malawi provides a clear pathway to build a resilient economy. The World Bank is providing climate financing to support that vision and help the government reduce the impacts of climate change under fiscal constraints.”
Kenya Prepares Its MSMEs To Harness Opportunities Under AfCFTA (News Ghana)
The East African nation of Kenya is one of African countries making history to export under the AfCFTA Guided Trade Initiative (GTI) which was launched on the 7th of October, 2022 by exporting Kenyan made batteries and Kenyan produced tea to Ghana in West Africa. The AfCFTA Guided Trade Initiative, a process where the AfCFTA Secretariat in collaboration with the National AfCFTA Offices guide selected businesses with specific limited products to trade from one party state to another, preferably across different regional economic blocs in Africa. So far eight African countries including Cameroon, Egypt, Ghana, Kenya, Mauritius, Rwanda, Tanzania and now Tunisia have started trading under the AfCFTA with the guidance of the AfCFTA Secretariat and its National Offices.
Speaking at the 2022 Alumni Conference of the Trade Law Center (tralac), a tralac alumni and Senior Assistant Director of Corporate Communications in one of Kenya’s Trade Organizations, Elizabeth Mulae said Micro Small and Medium-Sized Enterprises are the economic backbone of Kenya, comprising 98% which form greater majority of all business entities in Kenya. “MSMEs account for a larger share of private sector enterprises across various sectors of the economy with 14.1% rate of employment accounting for 93% total labour force in the Kenyan economy. MSMEs in Kenya also account for 24% of Kenyans GDP, with the Micro enterprise alone representing 12% whiles small enterprises represent 11% of the GDP”.
like most MSMEs in other parts of Africa, Kenyan MSMEs are confronted with the challenges of market access, infrastructure, intellectual property rights, lack of conducive legal and regulatory environment, lack of capacity building, low level of e-commerce and technology adoption, financial constraints and above all lack of knowledge on the African Continental Free Trade Agreement (AfCFTA).
The Kenyan government is also undertaking intensive formalization of MSMEs through its office of the registrar of MSMEs. Other most important interventions coming from the government of Kenya is the provision of grants or Business Development Supports (BDS) for MSMEs in Kenya. “Currently, grants worth approximately Kshs 2.7 billion has been disbursed to MSMEs. Some 69, 069 young people have received grants while 7,362 people have received Business Development Support”. Worksites, affordable credit facilities through MSMEs fund and capacity building programmes like Training and coaching of MSMEs among many other interventions are also being provided by government.
“The MSMEs are also being guided through emerging global business trends for their adaptation especially in the areas of e-commerce, mobile financial transactions, risk management and insurance against risk, digital transformation and a special focus on health, particularly online health care.
African trade and integration
In a panel moderated by Maria Andrea Echazu Aguero of the Office of the High Commissioner for Human Rights (OHCHR), speakers analysed how the implementation of the African Continental Free Trade Agreement (ACFTA) should move forward to avoid jeopardising the rights of Africans, worsening climate change or exacerbating gender inequalities in the continent.
Speaking on behalf of FAO, Ebrima Dem described free trade as a human right, but one that can only be achieved when freedom of movement already exists – something he said only exists ‘on paper’ in many areas of the continent. For Dem, ensuring people have the right to move freely is not only of benefit to trade, it is also a way to tackle food insecurities and of strengthening livelihoods by opening avenues for commerce.
However, he acknowledged that barriers to trade and how the latter is impacted by climate change both affect women more harshly, calling on States to ensure that women and women’s concerns are heard and represented across when States seek to implement policies that find themselves at the nexus for trade, climate change mitigation, and food security.
For Meskerem Geset Techane, trade can be an opportunity to address gender imbalances, though there is also evidence that trade policies can worsen these and other inequalities. Policymakers, she stressed, often overlook women’s contributions and the specific gender challenges that they face in trade and trade processes. She pointed to the limited efforts on the part of State institutions to meaningfully engage with women and women’s groups in the context of trade negotiations.
Meskerem Geset Techane then urged States to explicitly recognise the specific role women hold in trade processes and the impact that deals like the ACFTA can have on them and their places in their respective societies. She called on governments to include a gender lens and to ensure the participation of women and other marginalised groups at all stages of trade policy, from the design stage to the negotiations ahead of implementation of major trade deals.
Intellectual Property management will decide the future of companies looking into African trade (EURACTIV)
With market opportunities opening up globally, many EU businesses are willing to venture into untapped markets. However, investments require protection, including for intellectual property, such as trademarks, patents, or geographical indications. After all, today as much as 82% of all EU exports is generated by sectors which depend on intellectual property.
The African Continental Free Trade Area that came into being in 2021 created a single market for goods and services in Africa, translates for many European businesses into new opportunities, as well as new investments.
The EU already constitutes the most important trading partner for Africa: EU exports increased in 2021 to EUR 288 billion from a low value of EUR 225 billion in 2020 as a result of the COVID-19 pandemic. In 2021, 68 % of goods exported from the EU to Africa were manufactured goods. France (€ 24 billion), Germany (€ 23 billion), Spain and Italy (both € 18 billion), the Netherlands (€ 17 billion) and Belgium (€ 16 billion) were the largest exporters of goods to Africa in 2021.
The protection of intellectual property rights is of definite importance for those EU businesses wishing to operate in Africa. It provides exclusive rights to manage and market an invention, preventing imitators from benefiting from it and helps avoiding accidental infringements of someone else’s intellectual property rights. As one of the main ways for companies and inventors to generate returns on their investments in creativity, intellectual property is a key driver for innovation and economic growth.
We are ready to join the Community, Somalia President says (EAC)
The President of the Federal Republic of Somalia, H.E. Hassan Sheikh Mohamud urged the East African Community to fast-track his country’s admission into the Community. The president said Somalia joining the Community has been a delayed dream for the people and the Government of Somalia and urged the Secretary General, Hon. (Dr.) Peter Mathuki, to expedite the process of admission so that his country can be the 8th member of the EAC.
“Somalia belongs to the East African Community. There is no country among the EAC Partners States that is not linked by business with Somalia and existing historical linkages include language and culture,” said President Mohamud. President Mohamud told the Secretary General that his country was working tirelessly to remove all the security challenges with the support of some of the EAC member states.
East Africa to fast-track harmonization of food standards to boost intra-regional trade (CGTN)
East African Community (EAC) member states are keen to fast-track harmonization of food standards in order to boost intra-regional trade, officials said Wednesday. Mary Mwale, head of food security at Kenya’s Ministry of Agriculture, Livestock and Fisheries, said in the Kenyan capital Nairobi that the region has agreed to strengthen cooperation and take a joint approach in mutual recognition of safety standards at the border points. “Different sanitary and phytosanitary measures for animal and plant health are hindering the free movement of agricultural products within the trading bloc,” Mwale said during a regional public-private sector consultative forum on EAC safety standards.
Frank Mmbando, assistant director at Tanzania’s Ministry of Investment, Industry and Trade, said similar food and feed safety measures in the EAC will enhance the competitiveness of agricultural commodities traded within and beyond the region, denoting that harmonization will also help curb transboundary animal diseases, as well as address the problem of weak identification and traceability of animals that impact cross-border livestock trade flows.
Africa’s exploration spend is stagnating despite it being ‘rich in minerals’ (Mining Weekly)
Tullow Oil and The Metals Company nonexecutive director Sheila Khama, during her keynote address at the 2022 Council for Geoscience Summit on Wednesday, commented on her unease with the phrase ‘Africa is very rich in minerals’. She described it as a “dangerous statement” that perpetuated the idea that Africa did not have to compete with the rest of the world for mineral exploration investment.
“While Africa is rich in certain minerals, Africa is not rich in all minerals.” Moreover, other countries on other continents also have these minerals and have fewer drawbacks, in terms of political stability, legislative certainty and ease of doing business. However, she stressed that the more people repeated the phrase, “the more we give the sense that the investors coming onto our shores need us more than we need them.”
And yet, over the last 20 years, the African share of exploration expenditure has declined significantly from what it was. “If you look at the perception of Africa’s mineral endowment, and the level of the exploration budgets, African countries underperform, not relative to other countries, but to its potential.”
Africa Looks Inward to Stem Illicit Financial Flows (IFFs): The Global North Should Play its Part (EIN News)
As we look forward to President Biden hosting the second US-Africa Leaders Summit on December 13-15, which will build on President Obama’s 2014 Summit, top on the agenda must be substantial initiatives regarding illicit financial flows from Africa, particularly proceeds of corruption, and the US position as a destination for political elites to store illicit cash.
The August 2022 US Strategy Towards Sub-Saharan Africa talks of collaboration with African governments, civil society, and the public to strengthen openness and accountability, mainly through investigative journalism, countering digital authoritarianism and enshrining laws, reforms, and practices that promote shared democratic principles – but falls short of a road map to promote fiscal transparency, expose corruption, and support reforms in collaboration with African partners. Tax evasion represents a significant portion of illicit financial flows out of Africa.
“There is a misperception quite often when we talk about tax havens and financial secrecy that these are located in exotic, Caribbean locations; [in fact, they are hiding in plain sight in] the Global North,” said Ovonji-Odida, who serves on the United Nations’ High-Level Panel on International Financial Accountability, Transparency and Integrity for Achieving the 2030 Agenda, speaking at the September 28-29 10th Pan African Conference on Illicit Finance and Taxation – organized by Tax Justice Network Africa (TJNA), Africa Tax Administration Forum (ATAF), and Centre for Trade Policy Development (CTPD).
It is without a doubt that mobilizing domestic resources requires changing the global tax architecture to ensure that everyone, including multinational corporations, is paying what they owe while also improving, where possible, and creating, where necessary, the systems needed to curb international trade abuses, which account for the largest part of illicit flows from Africa.
The rise of Africa’s digital economy report launched at DIT event (African Business)
The Africa Mobile & Digital Economy Leaders Dinner was organised by the Department for International Trade and African Business magazine. In the “The rise of Africa’s digital economy – tackling the ‘usage gap’ to create a thriving market for mobile services” report, which was launched at MWC Africa in Kigali, Rwanda, the UK’s Department for International Trade highlights the opportunities that exist if businesses and government’s work collaboratively to improve access and usage to mobile channels.
Economic growth can be secured by increasing access digital-first services of all types, including health, education and even entertainment content. According to a report from Juniper Research, e-commerce transactions hit USD 4.9 trillion in 2021. This was boosted in part by the COVID-19 pandemic which forced people to stay home and brought a renewed focus on digital interactions. That number is expected to rise to USD 7.5 trillion by 2026. In Africa, a Google and IFC report estimates that internet businesses could add an extra USD 180 billion to the continent’s GDP by 2025.
African Development Bank publishes new report linking security, investment and development (AfDB)
The African Development Bank Group has published a new report examining the relationship between security, investment and development. The report, ‘The Security, Investment, and Development Nexus: A Diagnostic Assessment,’ was announced on Tuesday 25 October, at the African Union Policy Conference on Peace, Security and Development, currently underway in Morocco. The African Development Bank undertook the report to provide “quantifiable evidence on the linkages between the three areas and to lay the foundation for further dialogue on financing peace and security in Africa.” The report emphasizes the need to scale-up and coordinate peace-positive investments on the continent, to free-up public and private investment into social and productive sectors, and underlines the need for both security and development as cornerstones of progress for the continent.
Making opening remarks on behalf of the African Development Bank Group head Akinwumi Adesina, Hassatou Diop N’Sele, Vice President Finance and Chief Financial Officer, stated: “The economic and security shocks experienced by Africa over the last few years have been devastating, both in their reach and their repercussions. If there was ever a time to reaffirm the relevance and critical role of security and its interrelation with development, that time is now.”
Africa emerging as major apparel supplier; exports cross $2 bn in Q1 (Fibre2Fashion)
Africa is emerging as a major apparel producing and supplying hub in the world. Textile manufacturing is now shifting from Asia to Africa due to cost saturation in the former continent, said experts at the Asian Sustainable Textile Summit last month. Apparel exports from Africa crossed $2 billion for the first time in the first quarter (Q1) of this year. The shipment reached $2.083 billion in the period and slipped slightly to $1.953 billion in the second quarter of 2022. The exports had fallen to $0.764 billion in the second quarter of 2020 due to the pandemic. The continent exported apparel worth $1.380 billion in Q1 2021, according to Fibre2Fashion’s market insight tool TexPro.
Apparel exports quickly recovered from the disruption in Q2 2020 and reached $1.667 billion in the third quarter and $1.597 billion in the fourth quarter of the same year. In 2021, Africa’s exports stood at $1.674 billion in Q1, $1.703 billion in Q2, $1.923 billion in Q3 and $1.989 billion in Q4. The figures suggest that the exports from Africa are increasing gradually. The annual exports also show gradual growth as the continent exported apparel worth $7.291 billion in 2021, $5.409 billion in 2020, $6.561 billion in 2019 and $6.442 billion in 2018, as per TexPro.
“Safely open Africa’s Borders,” ECA Panel at AU Policy Conference (UNECA)
Regional integration and trade experts convened by ECA at the ongoing AU Tangier Policy Conference have concluded that trade, industrialization and infrastructure are critical to peace and security in Africa and that the freedom of movement of people within Africa will cement AfCFTA and deepen regional integration, peace and security of the continent. That was the overarching message of the panel discussion organized by the UN Economic Commission for Africa (ECA) on the second day of the ongoing AU Policy Conference themed “Promoting the Peace, Security, and Development Nexus: The Promise of Regional Integration”, which is being held from 25 to 27 October, in Tangier, Morocco.
“While the AfCFTA promises broader and deeper economic and regional integration,” Karingi noted “however, the benefits can only be achieved if we open our borders. Maroc Telecom should easily be able to open shop in Nairobi just as a Kenyan enterprise can do same in Gaborone. When we move across borders, understanding is promoted, peace is enhanced and trade increase.”
The 7th Pan African Forum on Migration ministerial Communique (AU)
Africa’s creative industries have grown rapidly in recent years, as its music, films and fashion increasingly attract a global audience.
The United Nations Conference on Trade and Development defines creative industries as comprising a wide range of areas: arts and crafts; audiovisual media (film and TV); design (architecture and fashion); new media (video games); performing arts (musical instruments); publishing (books, newspapers); and visual arts (photography sculpture).
Data from the United Nations Conference on Trade and Development (UNCTAD) indicates that the global market for creatives is booming. Between 2010 and 2020, global exports of creative goods rose from $419 billion to $524 billion. Creative services—advertising, market research, engineering, design and other creative services—rose even more sharply, from $487 million to $1.1 billion during the same period.
UNCTAD posits that technological advances linked to the Fourth Industrial Revolution can drive the sector’s growth still higher. These innovations include 3-D, artificial intelligence, augmented and virtual reality, and the internet of things.
African countries and businesses are not yet taking full advantage of these technologies, partly because of a weak regulatory environment and low levels of investment in digital infrastructure. The African Development Bank projects that annual expenditures of $9 billion will be needed through 2030 to close the infrastructure gap.
Priority areas for investment include cloud and data center and broadband infrastructure; digital services, including agritech and health-tech; training and human capital in the form of entrepreneurship and startups; and strengthening the regulatory environment.
This is where the Africa Investment Forum comes in. An initiative of the African Development Bank and seven partners, the Forum crowds in private sector financing for transformative projects with developmental impact across Africa. The Africa Investment Forum prioritizes sectors that can help African economies fend off the triple challenges associated with lingering Covid-19 impacts, Russia’s war in Ukraine, which has spurred spikes in food and fuel prices, and climate change.
China’s Investments In Rwanda, Africa Spur Socio-Economic Development (KT Press)
One of the key pillars of China-Africa Cooperation is investment, where China continues to invest strategically in areas that spur socio-economic development. The past decade has seen impressive growth of trade and investment abroad by China, including with Rwanda which has benefited from China-funded and -built infrastructure and projects which have contributed greatly to national development. Since Rwanda and China established bilateral relations on Nov 12, 1971, the two countries have strengthened cooperation in various fields, particularly in the area of investment where China is one of Rwanda’s largest contributors of foreign direct investment.
Among other areas, Chinese investments are more visible in infrastructure, trade, manufacturing, textiles, hospitality industry and real estate.
Gov’t pledges support for India-Africa Trade Council (Graphic Online)
A Deputy Minister of Trade and Industry, Michael Okyere Baafi, and the Ga Mantse, Nii Tackie Teiko Tsuru II, have pledged the support of government and the Ga Traditional Council for the India Africa Trade Council (IATC). They expressed their profound gratitude to the IATC for selecting Ghana as its headquarters for the West and Central Africa regions. Speaking at the maiden IATC Trade summit held in Accra on October 18, 2022, the Ga Mantse said he was excited about Ghana hosting the West and Central Africa headquarters of the Council.
Global economy
WTO Geneva Package: A Breakthrough For Africa? (Mondaq)
In Geneva, on June 17, ministers, and delegates at the World Trade Organisation’s (WTO’s) Twelfth Ministerial Conference (MC12) reached an agreement on a series of key trade initiatives. The deal represents a breakthrough for the Organisation which has created one agreement between all 164 members in its 27-year existence to date. This long-anticipated achieved consensus took place after MC12 had been postponed for two years due to COVID-19 and deepened with the Russia and Ukraine conflict. It was heard in the voice of Ngozi Okonjo-Iweala, the World Trade Organisation’s Director-General, “You stepped up and delivered in every area we have been working on,” which celebrated a striking moment of real multilateral success with the organisation’s members. After these words, a series of unprecedented decisions and agreements now known as the Geneva Package was listed after the members “can come together, across geopolitical fault lines, to address problems of the global commons, and to reinforce and reinvigorate this institution.”
A package on WTO response to provide concrete trade-related responses to important challenges facing the world today, comprising: the WTO’s response to the pandemic, including intellectual property rights response Fisheries subsidies Food insecurity e-commerce work programme and moratorium WTO reform
How developing countries can seize ‘green windows of opportunity’ with innovative technologies (UNCTAD)
Sustainable and frontier technologies can enable the developing world to fast-track greener and inclusive development, but international collaboration is required to realize this prospect. That was the main message from the UN Commission on Science and Technology for Development (CSTD) at a meeting it held on 25 and 26 October. “There is a critical role for international cooperation to provide technical and financial support to developing countries, so that they can benefit from these green windows of opportunities,” said Shamika N. Sirimanne, director of technology and logistics while opening the meeting.
Technological innovations can bolster developing countries’ role in greening global value chains as well as diversifying and moving towards more sustainable economic sectors – provided enabling policies and collaborations are in place.
For developing countries to unlock opportunities from STI, the meeting renewed calls to bridge the divide in digital capacity – largely driven by uneven investment in research and development between wealthier and poorer economies. Meanwhile, international cooperation on innovation will require more equitable partnerships, going beyond traditional donor-recipient relationships.
Members review safeguard actions on 19 products at committee meeting (WTO)
Notifications of various safeguard (SG) actions received since the committee’s April 2022 meeting covering 19 products were reviewed and a number of general issues were raised at the 24 October meeting, which was chaired by Ms Maryam A. Aldoseri (Bahrain). China, Japan and Australia reiterated their general concern regarding the way this instrument was used, including concerns on the timeliness of notifications, the effect of existing safeguard measures on trade, and the numerous extensions of measures.
Under WTO rules, a member may apply measures to imports of a product temporarily (take “safeguard” actions) through higher tariffs or other measures if it determines through an investigation that increased imports of a product are causing or threatening to cause serious injury to its domestic industry. Unlike anti-dumping duties, safeguard measures cover imports from all sources, although imports from developing country members with a small share of imports are exempted through special and differential treatment provisions.
The global energy crisis triggered by Russia’s invasion of Ukraine is causing profound and long-lasting changes that have the potential to hasten the transition to a more sustainable and secure energy system, according to the latest edition of the IEA’s World Energy Outlook.
Today’s energy crisis is delivering a shock of unprecedented breadth and complexity. The biggest tremors have been felt in the markets for natural gas, coal and electricity – with significant turmoil in oil markets as well, necessitating two oil stock releases of unparalleled scale by IEA member countries to avoid even more severe disruptions. With unrelenting geopolitical and economic concerns, energy markets remain extremely vulnerable, and the crisis is a reminder of the fragility and unsustainability of the current global energy system, the World Energy Outlook 2022 (WEO) warns.
India, G20 Countries Need To Take Stronger Steps To Fulfil 2030 Climate Promises: UNEP (IndiaSpend)
Climate pledges leave the world on track for a temperature rise of 2.4-2.6°C by the end of this century, according to the Emissions Gap Report, 2022 by the United Nations Environment Programme (UNEP), released on October 27.
The emissions gap report--which marks the run-up to the 27th Conference of Parties on Climate Change (COP27) starting on November 6, 2022 in Egypt--provides the latest assessment of scientific studies on current and estimated future greenhouse gas (GHG) emissions. It also compares these with the levels permissible for the world to progress on the least-cost pathway to achieve the 1.5 - 2 degree celsius that 193 parties committed in 2015 under the Paris agreement. Going beyond the 1.5-2 degree celsius threshold will expose millions of people to climate-related risks, such as heat waves and floods.
The report states that urgent transformation in the electricity supply, industry, transport and buildings sectors, and food and financial systems would help put the world on a path to success.
“The ambition gap persists and is unsurprising, but the report also points to an implementation gap. Countries have not put in place policies to reach even the limited targets they have promised. Global climate debates should focus more on the here and now than future speculative targets,” Navroz Dubash, professor at the Centre for Policy Research and one of the reviewers of the Emission Gap report, told IndiaSpend.
G20 still paying billions in fossil fuel subsidies (China Dialogue)
Bridging the SDGs Financing Gap in Least Developed Countries: A Roadmap for the G20 (Observer Research Foundation)
AGRA, Grow Asia enter collaboration agreement to drive South-South cooperation between Africa, Asia (Eco-Business)
AGRA and Grow Asia have signed a collaboration agreement to accelerate food system transformation in Africa and Asia. Grounded in the spirit of South-South Cooperation between the leading agri-food platforms in Africa and Asia respectfully, the agreement will pave the way for the co-development of knowledge exchange and training programs, joint case studies, and research, and, where appropriate, the pooling and sharing of tools and resources.
South-South cooperation is characterised by technical collaboration by developing countries in the Global South. It is a tool most typically deployed by international organisations, civil society, and the private sector to share knowledge and skills in specific areas such as agricultural development and climate change mitigation.
Related News
tralac Daily News
Local news
Economic growth expected to slow to 1.9% (SAnews)
South Africa’s economic growth is expected to slow to 1.9% in 2022, says Finance Minister Enoch Godongwana. The Minister said this in the National Assembly on Wednesday while delivering the 2022 Medium Term Budget Policy Statement (MTBPS) at the Cape Town City Hall. Addressing Members of Parliament, Godongwana said this level of growth is “too low” to support the country’s developmental goals. “Accordingly, we must take action to put our economy on a higher growth trajectory,” he said.
The projection is a significant decline from 2021’s 4.9%. The forecast, said the National Treasury, is in response to global and domestic shocks. Growth is projected to average 1.6% from 2023 to 2025.
some of the risks outlined in the 2022 Budget had materialised, including slower global growth from supply chain disruptions and stringent lockdown restrictions in China, surging inflation and tighter monetary policy stances. “South Africa’s structural economic constraints – including unreliable electricity supply, high levels of market concentration, inefficiencies in network industries and a high cost of doing business – limit the rate at which the economy can grow and create jobs.”
National Infrastructure Plan 2050 Phase 2 gazetted for public comment (Engineering News)
Multilateral financiers must be reformed to help address climate crisis - Creecy (News24)
South Africa’s minister of forestry, fisheries and the environment Barbara Creecy has called for the transformation of multilateral financing institutions to be “more fit for purpose as the world journeys towards cleaner energy”. Speaking at a national stakeholder consultation on Monday ahead of the COP27 talks next month, Creecy said the current limited access to finance, where 70% of the world’s poor nations were not eligible for multilateral finance, the extremely high borrowing costs coupled with high debt levels were not sustainable and presented a threat to climate change ambitions for developing countries.
She said: “We would argue that given the enormity of the resources required by developing countries over the next 10 to15 years, these resources are not only going to be met through climate financing. They are probably going to need to be met through the transformation of international financial structures and through reform of the multilateral development banks so that these institutions can be more fit for purpose to assist developing countries to address sustainable development and just transition imperatives.”
The finance currently available was mostly loans and not grant financing. South Africa has finalised its implementation plan of the approximately R157 billion made up mostly of loans it’s to receive from the just transition financing partners.
30% food price shock warning for South Africa (BusinessTech)
The Bureau for Food and Agricultural Policy (BFAP) has published its latest food inflation brief, warning of possible food price shocks for South Africa in 2023 if local crop production is thrown off course by any unforeseen events. The group noted that even though food inflation in South Africa remains high – and will likely remain elevated in 2023 – local prices have been kept lower than international markets due to surplus local production.
“South Africa continues to trade at export parity for key commodities such as maize, sunflower, soybeans and canola,” it said. “This essentially means that surplus production is keeping local prices low and that inflationary trends are driven by global prices, the weak exchange rate and growing costs of logistics and processing of products, such as transport, electricity and wages.”
Zimbabwe’s focus on wheat set to yield biggest-ever harvest (CGTN Africa)
Zimbabwe says it is on the brink of its biggest wheat harvest in history, but bushfires and impending rains are threatening crops yet to be harvested. Like other African countries, Zimbabwe has for decades relied on imports to offset low local production. After the Russia-Ukraine conflict resulted in global shortages and price hikes, the country wanted to ensure “self-sufficiency at all costs,” Deputy Agriculture Minister Vangelis Haritatos told The Associated Press this week. The country expects to harvest 380,000 tons of wheat, “which is 20,000 more than we require as a country,” Haritatos said. That is up from about 300,000 tons produced last year.
“We are most likely to get the highest tonnage since 1962 when wheat was first introduced to Zimbabwe. A lot of countries are facing shortages, but the opposite is happening in Zimbabwe,” Haritatos said.
Zimbabwe is looking at using its anticipated surplus of grain to build “a small strategic reserve” for the first time in its history, agriculture minister Anxious Masuka told journalists earlier this month. This would cushion Zimbabwe against future shocks.
African trade and integration
Intra-regional trade can reduce conflicts in Africa, says ECA’s Morsy (UNECA)
“Trade agreements can promote integrated economies and reduce conflicts,” Deputy Executive Secretary of the UN Economic Commission for Africa (ECA), Ms. Hanan Morsy said at the opening of the Inaugural African Union Policy Conference on Promoting the Peace, Security, and Development Nexus, which is being held from 25 to 27 October in Tangier, Kingdom of Morocco.
Africa Instant and Inclusive Payment Systems Report Launched in Kigali (KT Press)
The first State of Instant and Inclusive Payment Systems in Africa report (SIIPS – Africa) has been launched with a call for more inclusivity to leverage the current payment systems and infrastructure to benefit Africans and push the African Continental Free Trade Area agenda. The report, prepared by AfricaNenda, the United Nations Economic Commission for Africa (UN ECA), and the World Bank (WB) was launched this October 25, 2022, on the sidelines of the 2022 Global System for Mobile Communications Association Mobile World Congress (GSMA- MWC) on happening in Kigali city.
Robert Ochola, CEO AfricaNenda said “IPS is critical in the successful implementation of the African Free Continental Trade Area (AfCFTA) Agreement by providing instant and inclusive payment solutions for the majority of businesses on the continent, including SMEs”
The report provides a detailed landscape of Instant Payment Systems (IPS) in Africa and highlights ways in which they can become more inclusive to leave no African behind in the digital era, highlights how they can create opportunities and advance financial inclusion, and benchmarks instant payments in Africa.
EAC starts verification process to admit Somalia into the regional bloc (New Vision)
The East African Community (EAC) has kicked off the verification process to admit Somalia into the regional bloc. According to the EAC secretary general, Dr. Peter Mathuki, the verification team met with the President of Somalia, Hassan Sheikh Mohamud, on Tuesday to discuss the modalities of fast-tracking Somalia’s amalgamation into the regional bloc of Uganda, Kenya, Tanzania, Rwanda, Burundi, South Sudan, and the Democratic Republic of Congo (DRC). During his meeting with the President of Somalia, Mathuki said that the leader of Somalia expressed “political goodwill to actualize” the EAC summit decision to admit Somalia into the regional conglomeration.
Somalia first applied to join the EAC in 2016, but the application was rejected by officials, citing weak institutions and unending conflict.
In 2019, the former Somalia President, Mohamed Farmaajo, re-applied, but the verification was delayed until early 2022, when the new President, Mohamud, rejuvenated the bid.
EAC monetary union on agenda as regional parliament convenes in Kigali (The New Times)
Two bills in line with the establishment of the East African Community (EAC) Monetary Union are among the key businesses that East African Legislative Assembly (EALA) intends to transact during its sessions being held in Kigali.
Martin Ngoga, EALA Speaker, said they are EAC Surveillance, Compliance and Enforcement Commission Bill, 2022 which intends to establish the EAC Surveillance, Compliance and Enforcement Commission, and EAC Financial Services Bill, 2022, which aims to establish the EAC Financial Services Commission as an institution of the Community.
He made the observation on Tuesday, October 25, during a press conference opening the EAC legislative organ’s session, which is taking place at the Parliament of Rwanda’s premises from October 23 to November 05, 2022.
Other bills to be discussed by the regional parliament sitting in Kigali include the EAC Supplementary Appropriation Bill, the EAC Customs Management (Amendment) Bill, 2022, which aims to streamline and rationalise customs administration, operations and procedures adopted by the Community.
EACJ Judge calls for Administrative and Financial autonomy of the regional Court (EAC)
The Judge President of the East African Court of Justice, His Lordship Justice Nestor Kayobera, has called for the granting of administrative and financial independence to the Court to enable it execute its mandate more effectively.
The Judge President said that the much-needed autonomy would place the regional court at par with its counterparts in the Partner States where national judiciaries enjoy financial and administrative autonomy from the executive.
“Among the fundamental principles that governs the achievement of the objectives of the Community, include adherence to good governance which encompass the rule of law, transparency, accountability, democracy, respect and promotion and protection of human rights,” said Justice Kayobera.
Justice Kayobera said that through teamwork and good faith, the Court would achieve more while executing its mandate while judicial diplomacy would ensure that the Court has a human face even as it administers justice.
DAR, KINSHASA SGR DEAL: EABC sees trail to prosperity (Daily News)
ENVISAGED construction of a standard gauge railway (SGR) from Kigoma in Tanzania to DR Congo through Burundi is set to massively boost regional trade within the East African Community (EAC). Trade and Policy Advisor of the East African Business Council (EABC), Mr Adrian Njau told the `Daily News’ in a telephone interview yesterday, that the project would propel trade in member states of the EAC.
“Construction of the railway line to connect the port of Dar es Salaam to the hinterland in Burundi and DRC is a very good initiative which will boost trade among these countries.
“We really need to construct transport infrastructure to enable EAC countries to improve trade among ourselves. The railway line to Burundi and DRC will enhance regional trade value chain among the member states of the EAC,” he commented.
Africa’s Industrial Revolution: Industrial policy set to shift from the business as usual approach (AU)
Africa is endowed with a vast wealth of natural resources, ranging from precious stones such as gold and diamonds to fossil fuels, and has 40 percent of the world’s gold and up to 90 percent of its chromium and platinum. The largest reserves of cobalt, diamonds, platinum and uranium in the world are in Africa. It holds 65 percent of the world’s arable land and 10 percent of the planet’s internal renewable fresh water source. In addition to its natural endowments, Africa has the youngest population in the world; around 60 percent of the continent’s population is currently below 25 years of age. With a population of about 1.3 billion people, the continent is one of the world’s largest free trade markets in the context of the new implemented African Continental Free Trade Area (AfCFTA) framework.
Although, African industry is underperforming in terms of quality employment creation and total factors productivity. The African continent has not advanced to satisfactory industrialization levels. To reverse this situation, the attainment of inclusive and sustainable industrialization and economic diversification in Africa is a priority item on the development agenda.
Africa’s drive for industrialization will benefit from an innovative policy mix that combines the focus on traditional manufacturing with a forward-looking focus on new and emerging high-sophisticated opportunities. This will yield certainly significant economic progress across Africa, particularly with the new Africa Industrial Revolution Strategy (AIRS) framework associated with the fully integrated African market under the AfCFTA.
Despite historical policy limitations, Africa now has another chance. Some attributes of the regional economy as well as global conditions present the continent with new frontier opportunities to industrialize, several of which transcend the scope of manufacturing.
Will Africa’s metals boom suffer the same curse as oil? (The East African)
Mechanical diggers are hard at work in the bleak landscape of the Moanda open-cast mine in Gabon, using giant jaws to rip out manganese and then dump the ore into trucks with a crash.
Decarbonisation of the world economy will take centre stage at the UN’s COP27 climate talks in Egypt next month. And as the great transition goes into higher gear, eyes are turning to Africa. Its soil is rich in manganese, cobalt, nickel and lithium -- crucial ingredients in cleaner technology for generating or storing power.
But hopes that the mineral boom will translate into a new dawn of prosperity in the world’s poorest continent are clouded by memories of what happened with oil. In Africa’s oil-producing countries, black gold meant a gush of wealth for a well-connected few -- but only drops for the needy majority.
Africa’s potential in new-age minerals is “huge”, said the former chief economist of the African Development Bank, Rabah Arezki, who pointed out that reserves are not even known because so little exploration has been done. But, he said, “there is very little reason to think that this windfall will benefit the people of Africa, particularly because of governance concerns.”
A big problem is that Africa is typically used as a source of raw materials, and rarely for processing them into goods of higher value, said Gilles Lepesant, a geographer at the French National Centre for Scientific Research (CNRS).”If activity is limited to mining and extracting ore, Africa will reap no benefit from the energy transition in Europe. It’s absolutely necessary to invest in the value chain,” he said.
Why policy is key to unlocking and increasing Africa’s digital competitiveness (Daily Maverick)
Africa’s digital economy is estimated at $115 billion today and is expected to grow six times to $712-billion by 2050, according to a 2022 report published by Endeavour Nigeria. The opportunities and benefits of digitisation are extensive. We saw this during the pandemic when connectivity and mobile devices became the lifeline for many Africans when they needed to keep their homes, businesses and communities functioning despite widespread disruptions. The Covid-19 pandemic also accelerated demand for digital solutions and digital financial inclusion, super-charging interest in digital innovation across the region.
None of these benefits, however, will have a real impact on the lives and livelihoods of African citizens going forward if policy does not keep up with technology and innovation. Some existing policies and regulatory practices are not enabling the growth of the digital economy and are in some ways preventing a number of African States from fully reaping the economic and socio-economic benefits that connectivity and technology can provide. Restrictive data-localisation laws, unclear and underused adequacy requirements and a lack of standardisation in policy and legislative terminology remain major hurdles for the continent.
Given the historic infrastructural deficit that exists across the developing world, it is important that we focus on collaboration, innovation and putting the necessary infrastructure ecosystems and policy frameworks in place to increase Africa’s participation in the digital economy as well as its
Travel stakeholders call for action on intra-Africa travel, exchanges to grow continent’s economy (Businessday)
Stakeholders in the African travel and tourism sector have called on governments across the continent to match their various promises of open borders and seamless connectivity with actions that will soar intra-African travels and exchanges. The stakeholders, comprising aviation, hospitality, travel agencies, tour operators, destination management companies, convention bureaus, among others, made the call at the ongoing African Tourism Leadership Forum (ATLF 2022) in Gaborone, Botswana.
Speaking on the rationale for supporting intra-Africa travels and exchanges, Kwakye Donkor, CEO, African Tourism Partners, organisers of the forum, noted that the 54 countries and their huge population offer great business potential for SMEs and private sector in the travel sector, amid booming travels that will impact Africa’s economy positively.
He noted further that a booming intra-Africa travel will be possible with government and private sector collaboration, but that government has to lead with more action on enabling policies than promises.
Integration between African states necessary for ease of travel to improve intra-Africa tourism: Analyst (SABC News)
Africa may need to take a leaf out of Europe’s book when it comes to integration between states for ease of travel if it is to win in its quest to tap into the intra-Africa tourism market. That is according to Insights Expert and Market Data Analyst, George Shingai. Speaking on the sidelines of the 5th Africa Tourism Leadership Forum currently underway at the Grand Palm Hotel Convention Centre in Gaborone, Shingai says travel between African states has for a long time been handicapped by protectionism within African states.
“In the past, there has been a lot of protectionism that has existed among African states because all the African states were trying to protect their local carriers. However, with the implementation of Satam, which is a single African air transport market that aims to unify all the African countries into one umbrella and a single aviation market, I think we will start to see all these barriers do down.”
SADC expresses continued commitment to the partnership with IOM (SADC)
The newly appointed International Organisation for Migration (IOM) Regional Director for Southern Africa, Mr Ashraf El Nour, presented letters of credence to the Southern African Development Community (SADC) Executive Secretary, His Excellency Mr. Elias M. Magosi, in Gaborone, on 22nd October, 2022.
The meeting presented an excellent opportunity for the two leaders to reflect on the ongoing cooperation as outlined in the Memorandum of Agreement (MoU) which was signed in 2016. The MoU provides for cooperation in areas that include labour migration; counter trafficking; combatting smuggling and irregular migration; addressing mixed migration; migration health; and immigration and border management.
So far SADC has benefitted from collaboration with the IOM on the development of the Regional Migration Information Management system (Migration Data) and technical assistance in the development of the Regional Migration Policy Framework and Action Plan 2020-2030. Furthermore, IOM and the International Labour Organisation (ILO) are actively supporting implementation of the SADC Labour Migration Action Plan (2020-2025) at Member States level, and at the regional level. A SADC Technical Committee on Labour Migration (TCLM), in which IOM participates, has been put in place to oversee implementation of the action plan.
Through the Africa Regional Migration Programme (ARMP), funded by the United States Department of State Bureau of Population, Refugees and Migration, IOM has extended technical and financial support towards the convening of a TCLM meeting scheduled for 26th – 28th October 2022 in Johannesburg, South Africa. The meeting will enable Member States to finalise and submit their country reports on the implementation of the SADC Labour Migration Action Plan.
Global economy
Nigeria, other LDCs account for 1.3% of global manufacturing (The Nation Newspaper)
Despite comprising 15 per cent of total land area and nearly 14 per cent of the world population, Nigeria and other Least Developed Countries (LDCs) in Africa account for only 1.3 per cent of global Gross Domestic Product (GDP), 1.2 per cent of industry value added and 1.0 per cent of Manufacturing Value Added (MVA).
The United Nations Industrial Development Organisation (UNIDO), which made this known in the 2022 edition of its ‘International Yearbook of Industrial Statistics,’ said the share of MVA in GDP, an indicator of structural transformation, remains low in Nigeria and other African LDCs and Haiti. The publication, which serves as an indispensable introduction to the rich databases maintained by UNIDO and sheds light on the world of industrial development, defined LDCs as “low-income countries suffering from the most severe structural impediments to sustainable development.”
In 2022, 46 economies are classified as LDCs. They are located all over the world, but are mostly found in the African continent. In fact, 33 LDCs are located in Africa, nine in Asia, three in Oceania and one in the Americas. LDCs account for 1.08 billion of the world’s population and a combined GDP of $1.16 trillion.
Enhancing the Trans-Saharan Road corridor to boost trade and economic development (UNCTAD)
Trade and transport corridors, the major routes that facilitate the movement of people and goods between regions and countries, have existed for millennia. The Trans-Saharan Road (TSR) corridor, one of the oldest in Africa, comprises a 4,500-kilometre main road that links Algeria, Niger and Nigeria with an additional 4,600 kilometres of highways connecting Chad, Mali, Niger and Tunisia. More than 80% of the corridor is paved or asphalted.
UNCTAD and the Islamic Development Bank (IsDB) launched on 25 October a report providing recommendations that countries along the corridor can implement with the Trans-Saharan Road Liaison Committee and the support of development partners to transform the TSR from a road transport corridor to an economic one.
The study entitled “Towards an economic corridor: Commercializing and managing the Trans-Saharan Road Corridor” is an outcome of a project aimed at promoting trade through a regional transport corridor management mechanism.
“An economic corridor will enable TSR nations to move towards greater continental integration,” said Shamika N. Sirimanne, UNCTAD’s director of technology and logistics. “This joint study considers ways of achieving this through greater connectivity, transit and trade.”
Commodity Markets Outlook: Currency Depreciations Risk Intensifying Food, Energy Crisis in Developing Economies (World Bank)
Elevated commodity prices could prolong inflationary pressures, according to the World Bank’s latest Commodity Markets Outlook report. In U.S. dollar terms, the prices of most commodities have declined from their recent peaks amid concerns of an impending global recession, the report documents. From the Russian invasion of Ukraine in February 2022 through the end of last month, the price of Brent crude oil in U.S. dollars fell nearly 6 percent. Yet, because of currency depreciations, almost 60 percent of oil-importing emerging-market and developing economies saw an increase in domestic-currency oil prices during this period. Nearly 90 percent of these economies also saw a larger increase in wheat prices in local-currency terms compared to the rise in U.S. dollars.
“Although many commodity prices have retreated from their peaks, they are still high compared to their average level over the past five years,” said Pablo Saavedra, the World Bank’s Vice President for Equitable Growth, Finance, and Institutions. ”A further spike in world food prices could prolong the challenges of food insecurity across developing countries. An array of policies is needed to foster supply, facilitate distribution, and support real incomes.”
The outlook for commodity prices is subject to many risks. Higher-than-expected energy prices could feed through to non-energy prices, especially food, prolonging challenges associated with food insecurity. A sharper slowdown in global growth also presents a key risk, especially for crude oil and metals prices.
Ukraine grain exports face vessel backlog as concerns grow over Black Sea initiative (Global Trade Review)
Authorities responsible for the safe export of Ukrainian grain from Black Sea ports are working to clear a backlog of vessels awaiting inspection, as concerns grow over whether the initiative will be renewed next month. The Black Sea Grain Initiative has been hailed as a “beacon of hope” for food security since its launch in August, after Russia’s blockade of Ukrainian ports left millions of tonnes of wheat, corn, sunflower products and other goods stuck in siloes. But this week, the Joint Coordination Centre (JCC), which comprises representatives from Russia, Turkey, Ukraine and the UN, announced there is now a backlog of 113 vessels awaiting inspection in Turkish waters, plus another 60 waiting to join the initiative. “The JCC is concerned that the delays may cause disruption in the supply chain and port operations. Over the last few days, the JCC has started registering again new vessels to join the initiative,” it says.
WTO issues new edition of Trade Profiles (WTO)
The WTO issued today (26 October) the latest edition of Trade Profiles, an annual publication providing 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.
For merchandise trade, top exports and imports are listed for both agricultural and non-agricultural products. For trade in services, data is provided for transport, travel and other commercial services. Foreign affiliate statistics (FATS) and statistics on intellectual property are also provided.
Related News
tralac Daily News
Local news
Report backs Proudly SA’s Buy Local campaign (SAnews)
A report on South Africa’s manufacturing sector has reaffirmed what the national Proudly South African campaign has said for more than two decades – buy local to create jobs and grow the economy. Proudly SA commissioned the Pan-African Investment and Research Services team, led by top economist Dr Iraj Adedian, to produce the Revitalising SA’s Manufacturing Sector report.
The report analyses the South African manufacturing industry and quantifies its valuable contribution to the country’s economy. The report found that a process of de-globalisation is at play, partly driven by ongoing global supply chain disruptions, highlighting the need for increased localisation as a means of expansion, security and survival for specific industries.
The report includes investment scenarios, which show that a mere 10% increase in investment spending in the manufacturing sector could lead, in the medium term
Agri sector calls for tax relief, infrastructure investment ahead of MTBPS (Engineering News)
Industry body Agri SA says it is hopeful that the Medium-Term Budget Policy Statement (MTBPS), to be delivered by Finance Minister Enoch Godongwana on Wednesday afternoon, will outline critical measures to support the agricultural sector amid several crises that threaten the sector’s continued growth. “Coming so soon after the crippling Transnet strike, with ongoing loadshedding and high input costs, Minister Godongwana must use the opportunity of the MTBPS to signal interventions that help to bolster the sector, which [accounts for about] 874 000 jobs and contributed more than 2% to gross domestic product (GDP), despite the challenges of the past three years,” the organisation states.
South Africa’s Coal Export to the EU up 582.7% During 2022 (Hellenic Shipping News Worldwide)
As the world scrambles to secure energy supplies, coal trade has started to grow again, with countries like South Africa emerging as leading exporters once again. In fact, South Africa’s coal exports to the EU grew by over five times during the Jan.-Sept. period. In its latest weekly report, shipbroker Banchero Costa said that “global coal trade has steadily improved this year, and has now fully recovered to pre-Covid levels.
According to Banchero Costa, “South Africa is the world’s fifth largest seaborne exporter of coal, after Indonesia, Australia, Russia, and the USA. It accounted for 5.4% of global coal exports in the Jan-Sep 2022 period. Export volumes from South Africa had steadily declined in the past decade, as it was penalized by declining coal demand in the Atlantic basin, the country’s distance from the more resilient East Asian markets, as well as limitations on output and railway and port capacity.
Nevertheless, there have been quite remarkable reshuffles in terms of trade patterns, caused by the trade distortions resulting from European sanctions on Russian coal”, the shipbroker said.
South Africa to seek ‘Just Energy Transition Financing Framework’ deal at COP27 (Engineering News)
Forestry, Fisheries and the Environment Minister Barbara Creecy reports that South Africa will push for the establishment of a people-centred ‘Just Energy Transition Financing Framework’ at the upcoming COP27 climate conference, to be held in Sharm el-Sheik, Egypt, in early November. Such a framework, she told a pre-COP27 stakeholder consultation meeting in Johannesburg, could support coal phase-down programmes in developing countries, as well as ambitious renewable-energy investments, while supporting workers and communities that could be made vulnerable as a result of the transition away from fossil fuels.
Sweet and sour future for sugar power in eSwatini (The Mail & Guardian)
Facing climate change problems and an ever-increasing demand for energy, almost 100% of the electricity generated in eSwatini is from hydropower and sugarcane-based biomass cogeneration. The by-product from the crushing of sugarcane, called bagasse, is recycled and used as boiler fuel in the sugar mills. It is burned at temperatures of 400ºC to 800ºC to produce steam, which is used as heat for milling and to drive turbines that generate electricity. This process is called cogeneration.
Renewable energy consultant Rex Brown said the mounting climate change problems facing the sugarcane industry mean that over-reliance on cogeneration energy production is risky because biomass is a short-term solution. “It has inherent risks from climate change itself,” he said. “If investors are willing to invest millions in such energy plants, it is their risk. My advice would be to avoid such power plants. There is only one future: renewable energy based on solar and wind.”
Kenyan truckers not ‘gravely’ affected by Ebola lockdown in Uganda (Business Daily)
Kenyan truckers have not been affected by the Ebola-imposed lockdown in two districts in Uganda as the outbreak of the deadly disease continues to spread in the neighbouring state. The Kenya Transporters Association (KTA) says it is, however, keenly following the development in Kampala and the next step of action by the authorities in Uganda. Chief executive Mercy Ireri said that apart from increased screening at the border, Uganda is yet to impose far-reaching measures that may impact the flow of goods.
Any blockade on the movement of cargo at the Ugandan border points will hurt the Mombasa port, which will be unable to clear goods meant for the Great Lakes countries, and also lead to the diversion of goods to other regional ports. The restriction, should it be imposed, will see shippers opt for the central corridor, which runs from the Dar es Salaam port to DRC.
Farmers face losses as climate change effects take course (Capital FM Kenya)
As the effects of climate change become more severe, the country’s agriculture sector which acts as the food basket continues to shrink. In the second quarter of 2022, Kenya National Bureau of Statistics (KNBS) data shows that the agriculture sector’s contribution to the country’s GDP contracted for the third consecutive quarter. This was attributed to unfavourable weather conditions that characterized the last quarter of 2021 and the first half of 2022.
“The sector is estimated to have contracted by 2.1 per cent in the second quarter of 2022 compared to a contraction of 0.5 per cent in the corresponding quarter of 2021,” said KNBS. According to a report by the Africa Development Bank(AfDB) on the climate change impacts on Africa’s economic growth, Kenya is expected to be among the most-affected countries with high warming by 2030 resulting in associated median change in GDP per capita.
“The Global climate models project a progressive wetting in the northern countries, including Ethiopia and northern Kenya, with annual precipitation increase of 12 to 18 per cent as compared to present-day levels in the low-warming scenario, and as much as 18 to 30 per cent in the high-warming scenario,” AfDB said.
Tanzania and DRC to boost trade between the two nations (RegionWeek)
President Samia Suluhu Hassan and her counterpart from the Democratic Republic of the Congo (DRC), Félix Tshisekedi, have agreed to work together in a number of areas to boost trade between the two nations. The decision resulted from a discussions between the two leaders at the State House in Dar es Salaam during a two-day visit by DRC President Félix Tshisekedi to Tanzania at the invitation of his Tanzanian counterpart, President Samia Suluhu Hassan.
President Hassan said that through the East African Community (EAC), the two countries plan to construct road infrastructure through the central corridor that will connect the two countries. “There is a plan to construct the Northern Corridor, which will connect Tanzania and the DRC via the East
Reversing the Tide: Reducing Poverty and Boosting Resilience in Zimbabwe (World Bank)
Achieving macroeconomic stability, improving agricultural productivity, promoting equitable access to high-quality jobs, and strengthening the social protection program are some of the most important steps for improving the living standards of Zimbabweans, according to the Zimbabwe Poverty Assessment report launched October 24, 2022.The report titled “Reversing the Tide: Reducing Poverty and Boosting Resilience in Zimbabwe” explores how poverty and inequality have evolved in recent years. It sheds light on the main forces shaping its progression, and builds the evidence base for the formulation of policies to foster inclusive growth.
For Zimbabwe to reverse the tide of rising poverty, the report identifies a few policy priorities. The first is improving agricultural productivity and boosting resilience to climate shocks. About two-thirds of Zimbabweans work in agriculture while many Zimbabweans, directly or indirectly, depend on it. However, incomes from agriculture are the lowest, reflecting low productivity and high exposure to climate risks. There is also a need to increase market orientation of agriculture, diversification to high-value crops, and resilience from climate shocks.
Nigeria’s economic diversification policy aligned with Canada’s export capability – Christoff (Vanguard)
Canada’s High Commissioner to Nigeria, H.E James Christoff has said that Nigeria’s economic diversification policy aligned with Canada’s export capability. He remarked on this at the LGC 2022 Canada-Nigeria Business & Investment Summit in Toronto, where he noted that the nation’s leadership and influence are crucial to achieving and maintaining peace and stability in Africa.
According to Christoff, Nigeria became Canada’s largest trade partner in Africa last year with $2.67 billion in bilateral business trade. He disclosed that Nigeria’s economic diversification policy aligned with Canada’s export capability in agriculture, ICT, education, clean technology and mining among others, which present opportunities for future growth.
Egypt is keen to provide incentives to attract more foreign investments: Trade Minister (ZAWYA)
Egypt’s Minister of Trade and Industry Ahmed Samir has held a series of meetings with major international companies investing in the Egyptian market and working in the fields of communications, information technology, cars, and e-marketing. The meetings reviewed the government’s efforts to provide an attractive climate for investment to support the industrial sector, strengthen partnership with the private sector, and discuss ways to attract more industrial investments to the Egyptian market, and increase the local component in industry.
Samir said that Egypt adopted recently several measures and initiatives that aim to support national industries, which include providing utilised lands to companies and facilitating procedures for obtaining industrial licence, in addition to providing more facilities for investors to secure production materials.
African trade and integration
Africa is on the move – President Ramaphosa (SAnews)
President Cyril Ramaphosa has reaffirmed South Africa’s support for Canadian companies wishing to trade, invest and do business on the African continent for mutual growth and development. The President said South Africa is Africa’s most industrialised economy with a well-regulated banking and financial system, developed infrastructure, sound legal and regulatory frameworks, and strong linkages into both the global and continental economies.
President Ramaphosa emphasised that the African Continental Free Trade Area (AfCFTA) is a critical part of efforts to raise Africa’s growth, and is one of the 15 flagship projects of the African Union’s Agenda 2063. He noted that there has been important progress towards the operationalisation of the African Continental Free Trade Area. The Pan-African Payment and Settlement System was launched in January and has been successfully piloted in the West African Monetary Zone. The President said work is underway to dismantle intra-African trade tariff barriers as well as non-tariff barriers that hinder market access.
“As continental supply chains become increasingly integrated, Africa’s manufacturing capacity will expand rapidly, presenting opportunities in areas like petrochemicals, pharmaceuticals, food and beverages, textiles, fabricated metals and many others,” he said. The President added that this will drive infrastructure investment, not only in the roads, rail lines and ports that will handle the movement of goods and people, but in the energy and telecommunications networks needed to facilitate production and exchange.
Speech: President Cyril Ramaphosa at the Africa Accelerating 2022 Conference (South African Government)
EAC to decide on sanctions against countries blocking trade (Monitor)
The Minister for East African Community Affairs has said EAC regional cooperation ministers will meet next month to agree on sanctions to be preferred against member states blocking intra-regional trade. While installing the new president of Uganda Association of Public Administrators and Managers in Kampala last week, Ms Rebecca Kadaga, also the First Deputy Prime Minister, said in a meeting in July they had discovered that Ugandan goods were trading more outside EAC, prompting an agreement to take special measures on non-tariff barriers that prevent the country’s goods from trading in EAC.
“We discovered that Ugandan goods are trading more outside EAC. In July we agreed to take special measures to identify non-tariff barriers preventing Ugandan goods from trading and make sanction against responsible countries,” she said, noting that Ugandan goods are trading more in Asia, Europe and Comesa yet a lot of goods are coming from within the region to Uganda.
IMF hails EAC for steady progress in regional integration (EAC)
The International Monetary Fund (IMF) has hailed the East African Community( EAC) for the steady progress it has made towards the establishment of the East African Monetary Union. The statement came on the sidelines of meetings between EAC and IMF held during the Annual Meeting of the Boards of Governors of the World Bank Group (WBG) and the International Monetary Fund (IMF) in Washington, DC, United State of America.
Mr. Erceg commended the EAC for the progress made so far in integrating the region, adding that the MCM is committed to continue providing support to the region in, among other things: Development of a harmonized monetary policy communication framework in the run-up to the East African Monetary Union; Capacity development on macroeconomic analysis and forecasting in order to ensure sustainable capacity to operate the FPAS core models and produce medium-term forecasts In addition, the IMF committed to support EAC on Harmonization of monetary policy operations and modernization of financial markets including (i) developing harmonized framework for Standing Facility and Collateral Management; (ii) promoting cross border trading of Government securities; and (iii) developing harmonized framework for Market Makers for Government Securities
East Africa region is ripe for investment: CFA says (Garowe Online)
The East Africa Chartered Investment Analysts Society (CFA) is urging global investors to tap into the East African region investment opportunities which are expected to be on a rebound after a lull experienced in the last three years courtesy of the COVID-19 pandemic outbreak. CFA has organized a high-level Investment Conference scheduled for Nairobi on 17th November, bringing together industry players, global investors, venture capital experts, regulators, and top-level public policy decision-makers to deliberate on the theme of ‘Investing in an Evolving Environment”.
The main goal will be to deepen regional integration and increase the competitiveness of East Africa as a global investment hub. “This is a great opportunity to come together with other sector players to discuss emerging issues such as technology, ESG, and management of investment skills providers (employees) in view of the new global trends and their impact on the regional investment markets” the Society president, Francis Nasyomba said.
“We believe investment opportunities in the region will be bolstered by the East Africa Community heads of state summit deliberations held four months ago whose intent is to pursue a strategic approach of sustainable energy production in a bid to respond to challenges brought about by climate change. The unity of purpose by the heads of state is key to positioning East Africa among the integral players and respondents to the global rallying call for investment opportunities that bring returns and improve the lives of the people”, he added.
Regional court to hear cases filed against EAC members in Kampala (The East African)
The East African Court of Justice (EACJ) is holding the Judicial Officers Conference in Kampala this week before settling down in November to hear appeals and deliver rulings on various cases filed against East African Community (EAC) member states. Christine Wekesa Mutimurwa, Deputy Registrar at the EACJ, said the conference is expected to hold high-level conversations on emerging legal and judicial issues including emerging jurisprudence and issues affecting courts and court users. It will also “provide a platform for information sharing among judges, judicial officers, legal practitioners and other Court users in the region”.
“The objective of rotating the court’s November sessions is to bring services closer to the people and enhance the visibility of the court as it undertakes its mandate of promoting access to justice by ensuring adherence to law in the interpretation and application and of compliance with the EAC Treaty,” Ms Mutimurwa said.
Companies in the ARVs value chain in the SADC Region learn about Intellectual Property Rights (SADC)
A total of 12 representatives of companies involved in the manufacture of anti-retroviral drugs (ARVs) participated in a training workshop on Intellectual Property Rights for Companies in the ARV value chain organised by the Southern African Development Community (SADC) in partnership with the African Regional Intellectual Property Oganisation (ARIPO) in Harare, Zimbabwe from 13th to 15th October 2022.
Professor Michael Blakeney of the University of Western Australia, the lead consultant for the training in partnership with experts from ARIPO, conducted the training and topics covered included Introduction to Intellectual Property Concepts and Principles; Patenting and Generics; Pharmaceutical Patenting and SMEs; Intellectual Property Rights, Market Competition and Access to Affordable Medicines; Enforcement of IPRs in the ARV Sector; and Protection of Traditional Medicines and Knowledge.
According to ARIPO Intellectual Property is a very wide field of law that affects human kind in all daily activities in the consumption of products and services and it is comprised of three components, namely industrial property; copyright and related rights; as well as emerging issues of Intellectual Property. This can be an invention (patent/utility model), a design (industrial design), a brand name (trademark), or a literary and artistic work (copyright). Intellectual property protection is critical to fostering innovation. Without protection of ideas, businesses and individuals would not reap the full benefits of their inventions and innovations and would focus less on research and development.
Six Megatrends That Are Changing Africa - and How to Navigate Them (TechEconomy)
As digital penetration increases, a growing number will be adept users of technology, and some will be part of a new generation of world-class innovators in Africa. Most of this population will grow up in cities, often in urban areas that doubled in size during their childhood. Regardless of where they live, many may be desperately affected by the consequences of climate change. Moreover, as these young Africans grow up, they will become an enormous consumer market and a large share of the global workforce. As a group, they could become influential in the growth of international business and the evolution of emerging markets. So far, however, none of the stakeholder institutions that will be involved in their lives—businesses, governments, civil society organizations, and development agencies—are fully prepared for the opportunities and challenges created by this new demographic.
Two other factors that will shape Africa’s future are a growing movement toward international cooperation within the continent and the rise of local innovation, including many advances led by women and young entrepreneurs.
The African Union (AU) in collaboration with the Republic of Rwanda, and support of the International Organization for Migration (IOM), held the Ministerial Segment of the 7th Pan African Forum on Migration (PAFOM7) in Kigali, Rwanda under the theme: “Addressing the Impact of Climate Change on Human Mobility in Africa: Building Adaptation Strategies and Resilient Communities”
Ag. Director for Social Development, Culture and Sports Department, Ms. Angela Martins, said: “While migration trends in Africa has been characterized with evidence of increased cases of irregular movements of citizens out of the continent, sometimes through dangerous routes, there is need for us to reflect on the root causes and how we can sustainably address them”. She further said that the forum has been instrumental in bringing together various stakeholders in the continent, including the African Union Member States, Regional Economic Communities (RECs), the UN family, Civil society Organizations (CSOs) and other partners within the migration and human mobility governance space to discuss, share best practices and deliberate on topical migration governance issues in the continent, while also further identifying common challenges and opportunities within this area for joint intervention.
AAAP webinar: Innovation essential for climate-smart future, but it’s not enough (AfDB)
The 2022 United Nations Climate Change Conference, COP27, is dubbed ‘African COP’ as the impact of climate change on African countries will be a key theme of discussions. Agriculture and food systems will also be a critical focus of COP27, with Saturday, 12 November, dedicated to both themes, in addition to adaptation. Also high on the climate agenda is the role of the youth, as 10 November is dedicated to their participation.
Ahead of COP27 and in line with their commitment to this youth agenda, the African Development Bank and the Global Center on Adaptation hosted a webinar to examine ways to make agriculture attractive to the youth. The webinar titled, Are Climate-Smart and Digital Agriculture Solutions the Silver Bullet to Attract Youth, highlighted the potential of climate-smart and digital agriculture in attracting young people and thereby rejuvenating an aging global agricultural sector.
Dr. Kevin Kariuki, African Development Bank’s Vice President for Power Energy, Climate and Green Growth, pointed out the challenges the agriculture sector faces due to the changing climate change. “Agriculture across most of sub-Saharan Africa is still predominantly rain-fed and therefore extremely vulnerable to both short-term fluctuations and long-term changes in climate conditions. It is the most exposed sector with estimates indicating that climate change will cause a decrease in yields of 8 – 22% for Africa’s rain-fed staple crops over the next 20 years,” Kariuki said.
Strengthen collaboration on climate adaptation across the continent, experts say ahead of COP27 (AfDB)
Ahead of the 2022 United Nations Climate Change Conference, COP27, in Egypt in November, the African Development Bank and the Global Center on Adaptation participated in a series of events at the Africa Climate Week to build consensus among African countries and stakeholders. COP27 is described as Africa’s COP and will significantly shape the future. To deliver on adaptation, a transformative adaptation agenda is needed now.
Titled ‘Adaptation Dialogue: Implementing the Vision,’ the session called for strengthening collaboration on adaptation across the continent. The speakers highlighted the progress made by the Africa Adaptation Acceleration Program (AAAP) so far, notably its contribution to narrowing the adaptation gap and accelerating the implementation of the Africa Adaptation Initiative (AAI). The AAI represents Africa’s bold and innovative step to galvanize the support needed to significantly scale up adaptation across the continent.
Dorsouma called for accelerated action against climate change while making rapid, deep cuts in greenhouse gas emissions to avoid a mounting loss of life, biodiversity, and infrastructure. He noted that progress on adaptation has been uneven so far, with increasing gaps between action taken and what is needed to deal with the increasing risks.
Prof. Anthony Nyong, Senior Director and Africa Regional Director at the Global Center on Adaptation (GCA), highlighted the need to improve climate resilience and adaptation in Africa. He estimated the cost of climate change at $579 billion by 2030, with global finance skewed towards mitigation. Only 7.2% of global finance goes to climate adaptation.
Global economy
DG Okonjo-Iweala urges update to WTO rules to address global food market challenges (WTO)
In her opening remarks to the one-day special event held at WTO headquarters, the Director-General noted that despite some positive developments, “too often, markets for food and agriculture still continue to function poorly.” “It’s increasingly clear that WTO rules have not kept pace with the challenges we face today, nor with developments on global markets,” she declared. WTO members “will have to update the WTO rulebook if we’re to respond effectively to the problems on global markets, and ensure WTO disciplines help us tackle the challenges we’re facing both today and tomorrow.”
How are LDCs faring during the global food crisis? (The Daily Star)
According to a recent report by the Food and Agriculture Organization (FAO), the number of hungry people across the world was as high as 828 million in 2021, up by 46 million from 2020 and a whopping 150 million from 2019. The majority of these people live in Least Developed Countries (LDCs), which are net food-importing countries. As a global food crisis looms over us, LDCs are at a higher risk, which needs to be addressed urgently.
LDCs are predominantly agricultural economies, but are also highly dependent on food imports as they cannot meet demand through domestic production. They import several essential food items, and these imports have increased over time – especially cereal. Due to supply chain disruptions during the pandemic, lockdowns, reduced economic activity and travel restrictions impacted not only the production but also international trade of food. The Russia-Ukraine war made the situation worse, especially since LDCs are more dependent on Russia and Ukraine for food imports.
Since Russia and Ukraine are major exporters of fertiliser, supply chain disruptions are also affecting agricultural production in LDCs. High fertiliser and fuel prices have made it extremely difficult for farmers to cultivate. The other perennial threat is that of climate change, which has been reducing global agriculture productivity over time. Not only extreme weather events, but volatility of the weather has been impacting agricultural production adversely.
In view of high food prices, LDCs put forward food security and agriculture as their topmost agenda at the 12th World Trade Organization (WTO) ministerial meeting (MC12). The Ministerial Decision on World Food Programme (WFP) Food Purchase Exemption from Export Prohibitions or Restrictions has been an important outcome on food security at the MC12, which stated that WTO “members shall not impose export prohibitions or restrictions on foodstuffs purchased for non-commercial humanitarian purposes by the World Food Programme.” However, the global food crisis has continued to intensify. In this respect, a few measures are critical.
Global South farmers desperate for COP27 adaptation action (SciDev.Net)
Climate leaders from the global South say they desperately need support to implement climate adaptation and mitigation measures. Top of their priority list are new crop varieties and livestock species that are heat- and drought-tolerant, as well as defence strategies and early warning systems for floods, hurricanes and other extreme weather events. Under the 2015 Paris Agreement, the world’s richest countries pledged US$100 billion a year in international climate finance, with at least half of this amount allocated to climate adaptation programs. But these pledges are not turning into action, say global South leaders.
The African Union has released its first Climate Change and Resilient Development Strategy and Action Plan for the next decade. The African Union’s 55 member countries represent more than 1.2 billion people, and form the eleventh largest economy in the world. The action plan aims to strengthen the adaptive capacity of climate-affected communities and pursue low-emission development.
DP World third-quarter container volumes rise 2.1% on ‘resilient’ global trade (The National)
Global ports giant DP World reported a 2.1 per cent increase in gross container volumes during the third quarter of 2022 as global trade flows remain “resilient” but warned the near-term outlook remains uncertain.
The Dubai-based ports operator handled 20.1 million twenty-foot equivalent units (TEUs) across its global portfolio of terminals in the three month period to the end of September, DP World said on Tuesday. “We report another robust set of throughput figures … which is once again ahead of industry growth of 1.1 per cent,” said Sultan Ahmed Bin Sulayem, group chairman and chief executive of DP World. “As expected, growth rates have decelerated due to the more challenging market conditions, but global trade continues to remain resilient, and our portfolio is expected to continue to outperform the market.”
“Looking ahead, the near-term outlook remains uncertain given the geopolitical environment, inflationary pressures and currency fluctuations but we remain positive on the medium to long term outlook for global trade. Overall, given the solid nine-month volume performance, we expect to deliver an improved set of full year results,” Mr Bin Sulayem said.
Related News
tralac Daily News
Local news
Overcoming financial exclusion in South Africa (Moneyweb)
Financial inclusion is severely skewed in South Africa, with higher income groups having more access to a range of financial services such as bank and savings accounts, loans, and insurance products. Those who are financially excluded have more difficulty accumulating wealth – further deepening this divide. But there are ways of overcoming this serious problem.
The perils of financial exclusion are not just fewer opportunities for personal and business growth but also increased risk. People who don’t have insurance, for example, expose themselves to both financial and physical risk. At its worst, then, it impacts health and longevity. Even at its best, it’s simply greatly inefficient – not having banking products means dealing with physical cash, which is cumbersome and tedious. How then, do we start bridging this divide? Integrate the informal economy; Reframe the ‘debt trap’; Make compliance less onerous.
Agriculture and Agro-Processing are Crucial Economic Sectors to Transform the Economy (the dtic)
Stakeholders and students attending a two-day Student Exposure Workshop that was hosted by the Department of Trade, Industry and Competition (the dtic) in Potchefstroom agreed that agriculture and agro-processing are crucial economic sectors and drivers to transform the economy and create jobs in the country.
According to the Director of Agro-processing at the dtic, Ms Thembelihle Ndukwana the agro-processing sector has a potential to become an industrial impetus that can create jobs and address some of the country’s macro-economic challenges facing the country. “The sector was identified by the National Development Plan (NDP) as an important sector for its potential to spur growth and create jobs, due to its backward linkages with the primary agricultural sector. It is also among the sectors that have the highest employment multipliers in the economy and entry, as well as an active participation of Small and Medium Enterprises, in particular the youth, is limited,” said Ndukwana.
Industry to register 3,7% growth in 2023 (Chronicle)
INDUSTRY and Commerce Minister, Dr Sekai Nzenza, says the positive growth trajectory in the manufacturing sector will continue into 2023 riding on milestones achieved so far in response to Government support measures. She told delegates during the hybrid 2022 ZimTrade Annual Exporters Conference last week that economic reforms under the Second Republic led by President Mnangagwa have brought significant transformation to the productive sector.
In line with the National Development (NDS1) and the drive to attain the aspirations of Vision 2030, Dr Nzenza said the Government has put in place various measures to stabilise the economy and create a conducive business environment.
Driven by the value addition focus, she said manufacturing industries have increased capacity utilisation resulting in the growth of exports and increased investment attraction.
As the country consolidates domestic growth strategies, Dr Nzenza also urged the productive sector to position itself for the Africa Continental Free Trade Area (AfCFTA) and other market access opportunities in the Sadc and Comesa region by increasing capacity across the local industries to enhance competitiveness in the export markets.
KPA keen to modernize marine infrastructure to boost trade (Capital Business)
The Japanese International Cooperation Agency (JICA) has pledged to continue supporting the Kenya Ports Authority (KPA) in upgrading port infrastructure to accelerate growth of the East Africa regional economies. JICA has been a close partner of KPA, having funded the construction of the Sh32 billion second container terminals at the Port of Mombasa.
The Port of Mombasa is the main gateway to the Eastern African region, serving a wide and rapidly growing hinterland consisting of Kenya, Uganda, Rwanda, Burundi, South Sudan, Northern Tanzania, Eastern Democratic Republic of Congo, Ethiopia and Somalia.
KPA acting Managing Director (MD) John Mwangemi says JICA has recently completed the construction of phase two of the terminal which has increased the port’s capacity by 450,000 twenty-foot equivalent units (TEUs) to the current 2.1 million TEUs.
The KPA MD says the authority is keen on developing the existing port infrastructure in the country.
Burundi to set up National Competition Agency to promote competition and consumer welfare (EAC)
The Republic of Burundi is on verge of setting up a National Competition Agency to encourage competition and enhance consumer welfare in the country. Burundi’s Minister for Trade, Transport, Industry and Tourism, Madame Marie Chantal Nijimbere, made the announcement when she met the Registrar of the East African Community Competition Authority (EACA), Ms. Lilian Mukoronia, in Bujumbura, Burundi.
On her part, Ms. Mukoronia told the Minister that EACA was committed to assisting Burundi to establish the National Competition Agency, adding that the agency would play a critical role promoting the development of fairness in regional markets and ensure that intra-regional trade is not undermined by anti-competitive arrangements.
African trade and integration
Members praise AfCFTA’s role in fostering economic growth and development in LDCs (WTO)
“The AfCFTA can help generate value addition on the continent with all the benefits that it would bring in terms of economic diversification, higher income and better jobs”, said Ambassador Eheth Salomon Ambassador Kirsti Kauppi of Finland, chair of the Sub-Committee of Cameroon, coordinator of the WTO African Group. “It is imperative that every step of AfCFTA implementation is supported with robust investments in productive capacity, especially in LDCs,” he said.
Sharing lessons learned, the CEO of TradeMark East Africa, David Beer, said: “AfCFTA has the ability to drive a major change in intra-African trading relationships.” He added: “Digitization is the next frontier for smoothing continent-wide trade, and that’s why tools such as a harmonized approach to rules of origin, integrated customs management systems, electronic single windows, trade portals and electronic cargo tracking systems are proving so successful.”
AfCFTA: Shareholders ask FG to lift ban on import of products (Vanguard)
Shareholders under the aegis of Independent Shareholders Association of Nigeria, ISAN, have called on the Federal Government to lift the ban on the importation of vital products to be able to benefit from African Continental Free Trade Area (AfCFTA) agreement. The shareholder group also move for the harmonisation of favourable monetary and fiscal policies to be able to address the lingering inflation in the country.
Addressing newsmen on its forthcoming 7th triennial delegates’ conference and gala night scheduled to hold Thursday 27 October this year in Lagos, ISAN National Co-ordinator, Prince Dr. Anthony Omojola, said: “There is obvious need for the CBN and Ministry of Finance to use the instrumentality of the favourable monetary and fiscal policies to stem the ravaging hunger and inflation in the country. There should be un-banning of certain vital food imports in order for the country to benefit from the African Continental Free Trade Area (AfCFTA) agreement. The Federal Government should be able to grant tariff reliefs to certain industries and reducing taxes for some sectors to reduce operating cost of businesses.’’
EABC-Afreximbank Webinar On Intra-Africa Trade And Investment (East African Business Council)
Speaking at the Webinar on Intra Africa Trade and Investment organized by Afreximbank and East African Business Council, Mr. John Bosco Kalisa, EABC Chief Executive Officer said the Africa We Want should be driven by the private sector.
Mr. Kalisa elaborated that the webinar will delve into innovative products from Afreximbak set to boost access to finance and cross-border payments under the African Continental Free Trade Area (AfCFTA). He explained that intra-Africa trade is set back as 80% of SMEs in Africa cannot access trade finance and over USD. 5 billion is lost due to currency convertibility during transactions in Africa.
Mr. Sebabu Bosco, Deputy Head of Pan-African Payment and Settlement System (PAPSS) said in partnership with the Central Banks Afreximbank piloted the Pan-African Payment and Settlement System in the West African Monetary Zone supporting settlement finality of USD.500 million. He stated successful implementation of AfCFTA requires an integrated continental-wide payment infrastructure as the current payment infrastructures result in trade diversion and over-dependence on foreign currencies to the detriment of African currencies. He stated that PAPSS supports the settlement finality of USD. 3 billion at the continental level.
ECA study reveals potential correlation between trade and peace (UNECA)
A new study by the UN Economic Commission for Africa (ECA) has made it clearer how trade impacts peace and propels countries towards sustainable development, arguing that trade integration in Africa could also promote humanitarian and security imperatives. The study, “Realizing the Triple Nexus and Trade: Towards A New Agenda For Africa,” which was presented to a panel of experts in Tangier, Morocco, states that a triple nexus approach involving the promotion of humanitarian, development and peace in Africa is more attainable when accompanied with increased trade amongst African countries.
Why EAC goods must meet global rules (The Citizen)
Poor quality and failure to meet international standards are some of the factors identified as causing almost a half of the products produced in East African states not to reach international markets, according to a trade expert. Mr Rashid Kibowa, the East African Community (EAC) business director, said the challenge makes most of the products to fail to cross the boundaries of the region, that is, failing to compete in the international markets. “We need to strengthen ourselves to compete with other people in the world,” said Mr Kibowa. He was speaking in Dar es Salaam during the granting of the “EAC Quality Awards 2022.”
“There is a big need for entrepreneurs to produce products and expand their businesses, but most of them do not have the skills and knowledge that enable them to comply with international quality standards,” he added. He said there was a need to build the capacity of businessmen and entrepreneurs in all their product manufacturing processes to ensure that quality standards are not left behind.
‘Zimbabwe can become financial hub of SADC region’ (The Herald)
MAURITIUS Finance chief operating officer Vinod Bussawah, who is also chairperson of Harare-based financial advisory firm Bard Santner Markets Inc., says Zimbabwe can become a regional financial hub, with Victoria Falls as a Financial Services Centre, if authorities maintain the policy thrust to create an enabling environment, while hard work is put to it.
Bussawah, speaking in a panel discussion moderated by ZTN presenter Andy Hodges, said Mauritius was initially doubted by some, including international financial institutions, when it embarked on its journey to be a financial services hub, but persisted against odds until its strategy started working. He says Zimbabwe must push hard until it succeeds in its quest to make Victoria Falls an International Financial Services Centre.
Minister Ncube said exports are key to Zimbabwe’s economic vision and progress. “This year’s conference is being held under the theme ‘Inclusive, Diversified, Connected’, which speaks to the need for us to be deliberately inclusive in developing and promoting trade, and to diversify our export basket as we build the economy and integrate through connecting with regional and global markets,” he said. “Exports are, indeed, one of the key drivers of economic development and a major contributor to the attainment of our Vision 2030.
“The role played by exporters in this endeavour cannot be over-emphasised as they toil to bring in the much needed foreign currency, create jobs for our citizenry and set the pace for technological advancements. This is key to pursue industrialisation aimed at achieving a structurally balanced economy by the end of NDS1.”
SMEs in the SADC leather sector hail SIPS for training on Intellectual Property Rights (SADC)
Representatives of small and medium enterprises (SMEs) in the leather industry from the Southern African Development Community (SADC) Region have commended the Support to the Industrialisation and Production Sectors (SIPS) programme for convening a regional capacity building training workshop on strengthening regional and national Intellectual Property Rights Policies and Regulations (IPRs) and Trade Related Intellectual Property Aspects of Intellectual Property Rights (TRIPS) compliance.
SIPS, a programme aimed improving private sector participation in the regional leather, pharmaceutical and medical value chains in the SADC Region, convened the training workshop in partnership with the African Regional Intellectual Property Organisation (ARIPO) in Harare, Zimbabwe, from 5th to 15th October 2022. The workshops were conducted in hybrid format with virtual and physical participants from SADC Member States comprising of policy makers, and SMEs in the leather and anti-retroviral value chains.
Infrastructure, open skies will help unlock intra-Africa trade (The East African)
On September 25, Kenya’s President William Ruto flagged off a consignment of tea export destined for Ghana. It was Kenya’s second export under the Africa Continental Free Trade Area (AfCFTA) Guided Trade Initiative, which provides a platform for match-making of importers and exporters to accelerate the deepening of intra-African trade. The first export was on September 13, 2022, comprising $77,000 worth of exide batteries to Ghana’s Yesudem Company Ltd. These momentous steps notwithstanding, it was saddening to learn that the consignment of tea exports would take six weeks to arrive in Ghana. This is a reminder that unless Africa gets it right in infrastructural integration, it risks back-pedalling on the considerable gains realised in deepening integration.
Six weeks in transit presents worrisome unknowns, especially around the high freight costs and transit time. Irrespective of the sweeteners offered in tariff reduction based on preferential access, connectivity between source and destination market threatens to erode the allure of the trading bloc.
Experts review how ECA’s flagship gender development index can remain relevant in years to come (UNECA)
A group of experts met this week in Addis Ababa to review the African Gender Development Index, a flagship tool of the United Nations Economic Commission for Africa (ECA), which governments have been using since 2004 to measure their progress towards achieving their gender equality commitments.
Considering the presentations, experts explored how the 18-year-old index could adapt and remain relevant as a ‘fit for purpose’ tool in the current context, where progress towards gender equality and women’s empowerment remains increasingly at risk in the face of crises such as the COVID-19 pandemic and climate change. They recommended specific changes to the methodology, structure and composition of the index, which will guide its further development and finalization.
Africa’s inflation among regions most urgent challenges (IMF Blog)
Sub-Saharan Africa faces one of the most challenging economic environments in years, marked by a slow recovery from the pandemic, rising food and energy prices, and high levels of public debt. One of the most urgent issues confronting the region is the need to tackle decade-high levels of inflation—which are devastating incomes and food security—while also supporting growth.
While there are big differences between countries, the median of inflation rates in the region increased to almost 9 percent in August. And even though the rise has been less dramatic than in other parts of the world, and the drivers are different, inflation is nearly double pre-pandemic levels, risking social and political instability and worsening food insecurity.
In sub-Saharan Africa, inflation has been driven less by domestic activity than in advanced economies. Instead, external developments have shaped the path of inflation since the start of the pandemic. They include the sharp spike in global commodity prices, swings in the exchange rate, global supply chain disruptions, and natural disasters.
Tourism thought leaders in Africa gather in Botswana to look into intra-Africa travel (SABC News)
Intra-Africa travel through intra-Africa trade is expected to top the agenda when the tourism industry’s thought leaders on the continent engage in roundtable discussions in Gaborone in Botswana. This as the fifth Africa Tourism Leadership Forum (ATLF) kicks off at the Gaborone International Convention Centre of the Grand Palm Hotel on Monday until Wednesday.
According to the data released by GlobalData in June, Morocco was named the most popular destination in Africa and was expected to welcome 8.7 million international arrivals in 2022, followed by Egypt with an expectation of 7.9 million visitors, South Africa with 6.8 million visitors and Tunisia and Zimbabwe with 6.1 million visitors and 1.6 million visitors respectively.
Global economy
In advance of the 2022 United Nations Climate Change Conference (COP27) next month, public development banks meeting in Abidjan agreed on action points to tackle Africa’s climate finance gap. The third Finance in Common summit ended on Thursday amid calls on the delegates to turn their commitments to do more in development financing for Africa into actions. The African Development Bank and the European Investment Bank co-organized the summit under the theme; Green and Just Transition for a Sustainable Recovery. It highlighted the role of public development banks in Africa’s recovery as the continent faces impacts from the Covid-19 pandemic, climate change, and Russia’s war in Ukraine.
In his closing speech, African Development Bank President Akinwumi Adesina said as Africa looks towards COP27, development partners should collectively ensure that countries, especially the vulnerable ones in Africa, get the resources to adapt to climate change and support just energy transitions.
Adesina mentioned plans to launch the Alliance for Green Infrastructure in Africa, saying it would be a ‘game-changer’ in bridging the investment gap for green infrastructure.
Science, technology and innovation is not addressing world’s most urgent problems – major new study (UNDP)
Global science research serves the needs of the Global North, and is driven by the values and interests of a small number of companies, governments and funding bodies, finds a major new international study published today. As such, the authors find, science, technology and innovation research is not focused on the world`s most pressing problems including taking climate action, addressing complex underlying social issues, tackling hunger and promoting good health and wellbeing.
Changing directions: Steering science, technology and innovation for the Sustainable Development Goals found that research and innovation around the world is not focused on meeting the UN’s Sustainable Development Goals, which are a framework set up to address and drive change across all areas of social justice and environmental issues.
Critically, the report finds that research in high-income and middle-income countries contributes disproportionally to a disconnect with the SDGs. Most published research (60%-80%) and innovation activity (95%-98%) is not related to the SDGs.
In both the Global North and Global South — and across areas such as health, food or energy — research and innovation funds tend to be spent on technologies that benefit private interests, rather than on those that more directly address social and environmental problems. The research shows that most high-income countries do not prioritise research on the major environmental challenges associated with unsustainable consumption and production patterns.
World Food Forum wraps up five days of melding diverse perspectives to transform agrifood systems (FAO)
From brainstorming solutions for food security and mitigating climate change based on science and innovation to highlighting the links between healthy eating and a healthy planet - a youth-driven World Food Forum today wrapped up five days of intensive dialogue, networking and investment pitching aimed at addressing the world’s growing food crisis.
The forum brought together three concurrent streams, focusing on youth, science, technology and innovation and FAO’s flagship Hand-in-Hand Initiative pairing prospective investors with countries in greatest need of support. Among the key achievements:
President Ramaphosa welcomes focus on price stabilisation of oil (SAnews)
President Cyril Ramaphosa has welcomed the decision by the Kingdom of Saudi Arabia and other OPEC countries to focus on price stabilisation in their management of oil production.
In a statement on Sunday, The Presidency said rising oil prices contribute to higher fuel costs in South Africa, which exerts further pressure on small businesses, consumers and households. The burden is heavier for the working class and unbearable for the poor, the high office said.
OP-ED: What the potential expansion of BRICS membership to include Iran, Turkey and others, would mean for Africa (Daily Maverick)
Related News
tralac Daily News
Local news
Exclusive: South Africa quitting OACPS (Devex)
South Africa has written to the Organisation of African, Caribbean and Pacific States announcing that it plans to quit the 79-member body. An OACPS spokesperson told Devex by email Thursday that the organization had received a letter from the South African government expressing its intent to leave the OACPS, based in Brussels, which is linked to the European Union by the 2000 Cotonou Agreement.
Though South Africa hasn’t commented on its reason for leaving, the OACPS spokesperson said “We understand that South Africa has a separate comprehensive agreement with the European Union, and its link with the OACPS led to the considering of issues that had already been dealt with in the other agreement.”
South Africa’s EV dream threatens $8.5 billion in climate aid (Mining.com | Bloomberg)
The US, UK, Germany, France and the EU, which are providing the funds, want them almost entirely invested in replacing the country’s coal-fired power plants with renewable energy. South Africa wants a big chunk of the money to go into developing electric-vehicle manufacturing.
It has included a 70 billion-rand ($3.9-billion), five-year subsidy program in an updated draft of an investment plan presented to funding partners this month, two people who’ve seen the proposal said. They asked not to be identified because the investment plan hasn’t been made public.
The plan does also encompass the envisaged transition away from the use of coal and the $8.5 billion is only a fraction of the total that will be needed. The private sector and other rich nations and lenders are expected to provide more finance once the current deal is sealed.
DHL expands EV logistics centres to manage EV battery logistics (Engineering News)
Kenya exports expected to rise 15 pct in 2022 (Xinhua)
Kenya has projected exports for 2022 to jump 15 percent as compared to the 738 billion shillings (6.08 billion U.S. dollars) recorded in 2021.Wilfred Marube, chief executive officer of state-owned Kenya Export Promotion and Branding Agency (KEPROBA), said Wednesday in Nairobi, Kenya’s capital that the increase will be driven by sales into new African countries due to the operationalization of the African Continental Free Trade Area (AfCFTA) as well as emerging markets such as South Korea.
“Our marketing efforts are paying off because Kenyan products are penetrating new markets,” Marube said during the launch of Kenya Association of Manufacturers Vision 20 by 30.
Kenya buys half of August sugar from Uganda (Business Daily)
Kenya bought half of its imported sugar from Uganda in August, making Nairobi a leading destination for Kampala’s exports during the month. Data from the Sugar Directorate shows that Uganda exported 9,739 tonnes of sugar worth Sh1.3 billion, accounting for 56 percent of the 17,590 tonnes of the commodity that Kenya imported during that month. In July, Kenya did not import any sugar from Uganda, as the imports mainly came from Zambia, Mauritius and Zimbabwe as the sole suppliers of the sweetener.
Kenya relies on sugar imports from the regional countries and Uganda was the favourite market source for the commodity. “Comesa Free Trade Area (FTA) countries supplied 8,030 tonnes to Kenya while Comesa non-FTA countries supplied 2,000 tonnes. EAC, specifically Uganda, supplied 9,739 tonnes. 17,590 tonnes was imported from non-Comesa countries,” said the directorate.
High imports bill drives up current account deficit (Tanzania Daily News)
Current account recorded a deficit of 4.35 billion US dollars in the year ending August, up from 1.8 billion US dollars registered in the corresponding period last year, contributed largely by high imports bill. According to the Bank of Tanzania monthly economic review for September, the imports of goods and services amounted to 15 billion US dollars in the year under review from 10.3 billion US dollars in the same period last year. The BoT Report attributes the increase in import bill to importation rise of refined white petroleum products, iron and steel as well as plastic items.
The exports of goods and services amounted to 11.3 billion US dollars during the year ending August up from 9 billion US dollars in the corresponding period last year driven by goods and services receipts.
Exports increased by 8.3 per cent to 7.12 billion US dollars with non-traditional exports rising by 6.5 percent. Much of the increase in non-traditional exports came from iron and steel, textiles, fish and fish products and maize grain. The exports of traditional goods were 754.8 million US dollars up from 639.2 million US dollars supported by a rise in the exports of all traditional crops, largely associated with higher prices in the world markets.
Zimbabwe submits tariff offers to AfCFTA (Chronicle)
ZIMBABWE has submitted its tariff offers under the African Continental Free Trade Agreement (AfCFTA) and now awaits technical verification by the secretariat, Foreign Affairs and International Trade Minister, Dr Frederick Shava, said yesterday. Once verified, the country will then prepare the necessary legislation to start trading under the historic agreement.
Addressing delegates to the hybrid 2022 ZimTrade Annual Exporters Conference he said while trade negotiations under the AfCFTA are being finalised, local producers should start positioning themselves for this wider regional market. “In this regard, exporters should now focus on diversifying their exports into non-traditional African markets,” said Dr Shava who could not give much detail about the submitted tariff offers.
Manufacturing sector set to grow by 3,7% next year (NewsDay)
Speaking during the ZimTrade 2022 Exporters’ Conference in Harare yesterday, Industry minister Sekai Nzenza said government had put in place various measures to stabilise the economy and create a conducive environment to enable businesses to thrive.
This, she said, had resulted in the improvement of capacity utilisation of the manufacturing sector from 47% in 2020 to 66% in 2021. “Cognisant of the prevailing macroeconomic environment, I am advised that the manufacturing sector is projected to grow at an average of 3,7% during 2023, on the back of value addition and beneficiation activities in the industrial, mining and agricultural sectors.
Nigeria, Three Other Countries Sign Additional MoU on $25bn Gas Pipeline (This Day)
As Europe continues to mount pressure on Nigeria to provide alternative gas supply to the continent, the Nigerian National Petroleum Company Limited (NNPC) yesterday signed four additional Memoranda of Understanding (MoU) on the execution of the 5,600-kilometre Nigeria-Morocco Gas Pipeline (NMGP). The proposed $25 billion gas pipeline is expected to link Nigeria and Morocco, opening a possibility for a new energy supply path for West Africa and Europe.
In his remarks at the event, Kyari said the integration of West African economies through the NMGP was critical for the region’s economic growth, adding that NNPC was committed to converting the project into functional value for all transit nations.
“The Nigeria trans-Morocco pipeline is one of the critical decisions we need to take to foster that integration and economic value and it will pass through several countries and I can confirm that ECOWAS has endorsed this project.
Angola dares to look beyond oil (Africanews)
For years, oil has been the engine powering Angola’s economy. The southern African country sells pretty much nothing else. Crude accounts for 95% of Angola’s exports. Higher oil prices in 2022 have helped the country reduce public debt to 56.5% of gross domestic product this year, down from 79.7% in 2021 and 123.8% in 2020. The country made $2.1 billion from crude sales in May alone. But Luanda has been here before and knows that good times never last. In 2021, Angola exited a long recession brought about by nearly five years of low crude prices.
The authorities have been trying to direct investment in sectors such as agriculture and manufacturing in a bid to cut Angola’s over reliance on oil.
Angola is also undertaking a comprehensive privatization process to offload inefficient and loss making parastatals. Africa’s top oil producer since June after toppling Nigeria, Angola knows that sustainable growth will come not from oil, but rather cutting the resource’s oversized influence on the economy.
IMF Negotiations Will Enhance Investor Confidence – GIPC Boss (Peace FM Online)
The Enhanced Domestic Programme (EDP) being forged through discussions by government with the International Monetary Fund (IMF) will reinforce initiatives under the COVID-19 Alleviation and Revitalisation of Enterprises Support (Ghana CARES) and strengthen investor confidence in the Ghanaian economy, Chief Executive Officer of the Ghana Investment Promotion Centre (GIPC), Yofi Grant, has said.
“Various flagship initiatives, also largely covered under the CARES programme, have been implemented by government to boost private-public partnership, ensure ease of doing business for investors and indigenes, and ensure a conducive, resilient and vibrant economy,” he stated. Mr. Grant was speaking at the 19th edition of the ‘Ghana Club 100 Awards’ in Accra, and also noted that a 10-point priority projects Agenda is being implemented through the Ministry of Trade and Industry (MOTI) to fundamentally change the structure of the country’s economy.
This seeks to strengthen the business climate, attract investments and create jobs. These, among others, include the provision of a stimulus package to economically viable but financially distressed companies; export Development Programmes; and the rollout of industrial parks.
African trade and integration
African countries urged to harness nexus between industrialization, continental free trade (China.org.cn)
The African Union (AU) has called on African countries to mutually reinforce the African Continental Free Trade Area (AfCFTA) Agreement with the continent’s industrialization so as to effectively realize Africa’s critical development aspirations. “Advancing the AfCFTA and Africa’s industrialization side-by-side with deliberate efforts to realize the mutually reinforcing interdependences between the two will provide Africa’s critical success pillar and condition for Agenda 2063,” the AU said in a statement.
The statement came ahead of the AU’s high-level industrialization-themed continental gathering -- African Union Summit on Industrialization and Economic Diversification, slated for Nov. 20-25 in Niamey, the capital of Niger.
“To achieve the aspirations of the AfCFTA, Africa’s industrialization and transformation agenda needs to be supported at the highest national, regional, continental and global levels,” the AU said. The AU said such a focus will be key to accelerating efforts in a selected number of key policy areas, such as energy and road infrastructure, trade facilitation, financial sector development, education development, agro-industrial transformation, green industrialization, and technological innovation.
‘AfCFTA can only be successful if there is seamless movement of people’ (The Point)
Dr. Mugwadi made these remarks on Wednesday at Sir Dawda KairabaJawara International Conference Center during a press conference on the sidelines of the 5th National Human Right Institutions forum of the 73rd Ordinary Session of the African Commission on Human and Peoples’ Rights.
The theme for the forum was: “Trade and human rights in the Africa Continental Free Trade Area (AfCFTA) Agreement: inclusive implementation of the AfCFTA with participation of vulnerable populations.” He said free movement of people across the continent remains on paper where legal frameworks have been put in place. He noted that the current regimes of national protectionist policies will substantively and negatively impede trade under this pact.
“We can only trade in an integrated Africa where every country is home for everyone. We cannot trade with each other when our laws consider us foreigners to one another,” he stated. He added that while the African Charter on Human and People’s Rights and other national and international instruments can be applied, there is no specific continental binding instrument to secure human rights under the framework of AfCFTA.
This report examines emerging trends in FDI in Africa that may further shift under AfCFTA, including assessing the sources and destinations of private investment in the region. European investors remain the most important source of FDI stock in Africa, but the relative share of Africa’s FDI stock originating from Europe declined over the past decade, while Asia’s share increased.
The study also covers U.S. FDI in Africa. The destinations of FDI in Africa also shifted, with Northern and Southern Africa—which made up the majority of FDI stock in the mid-2000s—losing FDI share to Eastern Africa. Additionally, this report studies sectoral investment patterns to better understand where private investors identify new opportunities.
A particular focus is on the food and beverage sector because it directly connects to the economic development strategies of many AfCFTA signatory states and has implications for deepening agricultural value chains and food security.
Malawi, Eswatini and Zambia launch SADC e-certificate of origin pilot phase designed to deepen intra-regional trade (bne IntelliNews)
Malawi, Eswatini and Zambia have launched the pilot phase of a southern African e-certificate of origin designed to boost intra-regional trade, according to Nyasa Times, a Malawian newspaper. The Southern African Development Community (SADC) e-certificate, unveiled in Malawi’s commercial capital, Blantyre, on September 7, is also expected to support regional industrialisation as well as economic development. SADC expects to have rolled out the certificate across its 16 members by 2024.
SADC secretariat’s director of finance, investment and customs, Sadwick Mtonakutha, said if the pilot phase succeeds, that would contribute to the success of the African Continental Free Trade Area (AfCFTA), which was launched in January 2021. “SADC being a bloc contributes immensely to the continental picture, and in this case the e-certificate of origin is just part of consolidating the SADC free trade area, which is a building bloc to a continental free trade area,” Mtonakutha said.
SADC and SACU sign MoU to strengthen cooperation (SADC)
The Southern African Development Community (SADC) and the Southern African Customs Union (SACU) on 14th October, 2022 signed a Memorandum of Understanding aimed at enhancing regional integration, economic and social development through mutual cooperative relationship in the Southern African region.
Through the MoU, SADC and SACUs will work together to promote close cooperation and consultation on matters of mutual interest and coordinate their efforts to strengthen collaboration to promote industrialisation; regional and international trade; and ultimately contribute to the economic and social development of their Member States.
In Trade Facilitation, the two institutions will collaborate on customs issues; border coordination, transit measures, trade-related information management and collaboration amongst stakeholders mandated to facilitate trade; transport and logistics activities; and any cross-cutting policy imperatives for trade facilitation.
22nd EAC Micro, Small and Medium Enterprises (MSMEs) Trade Fair set for Kampala, Uganda (EAC)
Preparations for the 22nd Edition of the East African Community (EAC) Micro, Small and Medium Enterprises (MSMEs) Trade Fair, popularly known as the Jua Kali/Nguvu Kazi Exhibition, are in high gear. The 22nd edition of the annual EAC Jua Kali/Nguvu Kazi Exhibition, which will be held under the theme “Buy East African to Build East Africa for Resilience and Sustainable Development,” is expected to attract more than 1,000 artisans from all the seven (7) EAC Partner States.
The exhibition will run from 8th – 18th December, 2022 at the Kololo Independence Grounds in Kampala, Uganda. The main objective of the Trade Fair is to contribute towards the realisation of the region’s development goals and aspirations by lending support to this budding sector of the economy, which needs public patronage and Government support in order to be sustainable.
Africa needs $25 billion per year for universal access to clean energy: IEA (Down To Earth Magazine)
Achieving full access to modern energy in Africa by 2030 will require investing $25 billion per year, according to a new report. The required amount is around a quarter of the current total energy investment in the continent, according to the International Energy Association (IEA) report presented at a conference in Kampala, Uganda October 7, 2022.
Energy consumption in the Greater Horn of Africa — defined in the report as Djibouti, Eritrea, Ethiopia, Kenya, Somalia, South Sudan, Sudan and Uganda has grown by 3 per cent per year over the last decade. These eight countries constitute the members of the Intergovernmental Authority on Development, one of Africa’s regional economic communities.
Energy infrastructure in the Greater Horn of Africa has struggled to keep pace with a fast-growing population, according to the report titled Clean energy transitions in the Greater Horn of Africa. The report stated: Inefficient bureaucracy, a lack of clear energy sector planning and limited technical expertise all contribute to significant cross-cutting risks for investors, although the severity of these risks varies drastically across regions.
Uganda to host EAC Petroleum Conference (East African Business Week)
Uganda has been selected to host the 10th East African Petroleum Conference and Exhibition 2023 (EAPCE’23). The 2023 Conference is expected to Commence from 9th to 11th May, 2023 in Kampala, Uganda. The 2023 edition of the biennial conference will run under the theme ”East Africa as a hub for Investment in Exploration and Exploitation of Petroleum Resources for Sustainable Energy and Socioeconomic Development”.
“The region will emphasize access, capacity, efficiency and sustainability of energy in the region, by 2050, the EAC has the target of transforming the energy landscape to be characterized by, among other things, efficient distribution of petroleum products with sufficient strategic reserves,” said Dr. Mathuki in the Statement from the EAC Secretariat.
The objective of the energy sector development under the EAC Vision 2050 is to ensure sustainable, adequate, affordable, competitive, secure and reliable supply of energy to meet regional needs at the least cost.
Africa-Europe Roundtable Tackles Energy Transition, Global Trade at African Energy Week (AEW) 2022 (BusinessGhana)
“We are heavily dependent on coal generation. Renewables now supply only about 10% of energy in South Africa. But the first problem we have is the polarized energy debate, which doesn’t achieve solutions. We must transition, but we must be very practical in our transition,” began Hon. Gwede Mantashe, South Africa’s Minister of Mineral Resources and Energy, on the current state of the energy mix.
“We believe that the new energy mix will have everything – coal, oil, gas, renewables. All types of energy creation will continue,” added Eng. Fuad Mosa, General Supervisor of Local Content, Risks and Crises Management for Saudi Arabia’s Ministry of Energy. “The world has been blessed with resources and our ultimate goal is securing the right volumes of energy at the right price. In Saudi Arabia, we will continue accelerating oil and its role in the global energy mix, while natural gas and renewable energies also need to be expanded.”
To date, African oil producers have largely exported crude oil to China, with a few exceptions of North African producers who export to Europe. However, current sanctions against Russian gas and the ongoing war in Ukraine has reignited interest in African hydrocarbon and renewable energy projects alike, which could result in billions of new investments into emerging energy markets like Namibia, South Africa, Uganda, Kenya, Mozambique and Tanzania.
Team Energy Africa Launches Africa Energy Market Dashboard at African Energy Week 2022 (UNECA)
The African Energy Chamber and the United Nations Economic Commission for Africa launched a pilot for the Africa Energy Market Dashboard during the second day of the 2022 African Energy Week conference at the One and Only Hotel in Cape Town. The African Energy Chamber (AEC) – the voice of the African energy sector – in partnership with the United Nations Economic Commission for Africa (UNECA), as Team Energy Africa, launched the Africa Energy Market Dashboard pilot on October 19 at the African Energy Week (AEW) conference and exhibition.
Hunan-Africa trade eyes solid boost with major plans for logistics backing (Chinadaily)
Central China’s Hunan province will build a number of trade and logistics support platforms to further enrich China-Africa business cooperation over the next five years, said a government official on Thursday. As the host venue for the China-Africa Economic and Trade Expo, Hunan will build six functional centers and hubs, including a trade center for non-resource products, a China-Africa cross-border renminbi settlement center and a logistics hub to broaden channels for African products to enter China in the coming years
After completing 12 small-scale barter deals with four African countries since 2021, Hunan — backed by favorable policies of the China (Hunan) Pilot Free Trade Zone — has proposed a pilot plan for local currency settlement for trade with African countries in an effort to build the China-Africa cross-border renminbi settlement center in Central China.
East African Community (EAC) bloc setting up Diaspora Desk in bid to boost remittances, FDI and trade (bne IntelliNews)
The East African Community (EAC) is establishing a Diaspora Desk aimed at facilitating citizens of the seven-member bloc living abroad to invest and trade in the region. EAC Secretary General Peter Mathuki said the Secretariat is also developing a Diaspora Engagement Strategy, providing a framework for interacting with that community. He revealed the plans while in the US earlier in October, at an annual trade and investment conference, organized by the East Africa Chamber of Commerce in Irving, Texas.
Together, remittances equal 35% of EAC’s Foreign Direct Investment (FDI), which stood at $8.2bn and helped the region withstand the impact of the COVID-19 pandemic and fallout from the Russia-Ukraine war, he explained. “The EAC recognizes the role of diaspora remittance, which continue to outpace Foreign Direct Investment (FDIs) to become the largest source of external financing,” Mathuki said.
Global economy
Black Sea Grain Initiative offers hope, shows power of trade (UNCTAD)
An UNCTAD report published on 20 October shows how the Black Sea Grain Initiative signed in July 2022 to resume exports of Ukrainian grain via the Black Sea amid the ongoing war has offered hope and shown the power of trade in times of crisis. The report underlines why it’s critical to renew the initiative next month.
Thanks to the initiative, port activity in Ukraine is picking up and large shipments of grain are reaching world markets. As of 19 October, the total tonnage of grain and other foodstuffs exported through the initiative had reached almost 8 million metric tons. “The UN-led Initiative has helped to stabilize and subsequently lower global food prices and move precious grain from one of the world’s breadbaskets to the tables of those in need,” the report says. But with the initiative ending in November and its renewal uncertain, the prices of some commodities, such as wheat and maize, are rising again, the report warns.
Political will, greater action needed to tackle cascading crises, leaders say (UNCTAD)
Tackling the current cascade of crises facing the world and getting the global economy back on track requires political will and action, leaders said during the high-level segment of UNCTAD’s Trade and Development Board on 20 October.
UNCTAD Secretary-General Rebeca Grynspan said: “The institutions are there. The resources are there. The vehicles to channel the resources are also there. What is needed is the leadership to recognize that much more must be done with what we already have at hand.”
Despite the challenges facing multilateralism, Ms. Grynspan said there was reason for hope, as shown by the Black Sea Grain Initiative signed in July with Turkiye, Ukraine and the Russian Federation. Read her full statement. The UN-backed initiative has opened a grain corridor through which almost 8 million metric tons of food have flowed back into world markets. “These initiatives show that diplomacy is still possible, even in the most challenging circumstances, even in the middle of a war zone,” Ms. Grynspan said.
UN Deputy Secretary-General Amina Mohammed underlined the need to address the debt crisis in developing countries, urging the establishment of a new debt service suspension mechanism, and the inclusion of middle-income countries. She also called for more investment towards the achievement of the Sustainable Development Goals (SDGs).
In the face of interconnected crises, the multilateral system needs to be strengthened and supported to address these challenges, said Sigrid Kaag, First Deputy Prime Minister and Minister of Finance of the Netherlands.
Prime Minister of Barbados calls for a new global financial paradigm that is fair to all (Afreximbank)
The global financial architecture must be reconfigured completely to reflect the needs and participation of countries in the Global South, many of which were under the yoke of colonialism at the time the current order was fashioned, Her Excellency Prime Minister Mia Amor Mottley of Barbados has argued during the Sixth Annual Babacar Ndiaye Lecture, held on the sidelines of the World Bank-IMF Annual Meetings in Washington DC, USA.
The lecture, an initiative of the African Export-Import Bank (Afreximbank), was held on 14 October under the heading “The Developing World in a Turbulent Global Financial Architecture”.
President Oramah praised Prime Minister Mottley for her global leadership in the pursuit of fairness and equality. He referred to their shared belief that “African and Caribbean nations can turn the iniquities of history into platforms for economic prosperity today and in the future. Realizing that vision can only begin with the reconnection of the Caribbean people to their genealogical ties in Africa through trade and investment.”
Recalling the genesis of the Bretton Woods institutions, she said they were designed at a time when “we were not seen, we were not heard, and we were not felt.” These structures must be reoriented as a matter of fairness and to reflect the growing role that countries in the Global South play in the world economy.
Symposium highlights importance of WTO’s work on easing regulatory bottlenecks (WTO)
In his opening remarks, Deputy Director General Jean-Marie Paugam noted that the Symposium — entitled “Easing Regulatory Bottlenecks” — is being held at a time where the world needs more than ever well-functioning supply chains to support trade and the global economy. He noted that the work of the TBT Committee supports WTO members in promoting coherent approaches to issues such as digitalisation and decarbonisation and serves as an incubator for WTO reform.
Speaking at the opening session, Ambassador José Luis Cancela of Uruguay stressed how the TBT Committee contributes to the transparency of governments’ trade measures and acts as a forum for the discussion of members’ specific trade concerns (STCs). He noted that the 9th Triennial Review of the TBT Agreement underlined the need to work with small businesses to ensure they have access to the information needed to comply with standards and regulations for traded goods. This will enhance their participation in international trade in line with work undertaken by the Informal Working Group on Micro, Small and Medium-sized Enterprises (MSMEs), he said.
Rich nations, developing countries divided over proposed IP waiver for Covid-19 diagnostics, therapeutics (BusinessLine)
Differences persist between rich and poorer countries at the WTO overextending intellectual property (IP) waiver for Covid-19 diagnostics and therapeutics by the stipulated year-end deadline. India, South Africa, the Least Development Countries group and the African Caribbean and Pacific nations are insisting on extension of the decision on vaccines to the other two categories without any changes. But members such as the EU, UK, and Japan have sought more evidence to prove that IP constituted a barrier.
At a recent meeting of the WTO TRIPS Council, a representative of the World Health Organisation, who was present as an observer, highlighted that the test and treating strategy was vital for tackling the Covid-19 pandemic and noted that many developing, and least developed countries were facing challenges to access affordable diagnostics, a Geneva-based trade official told businessline.
A large number of LDCs and developing countries, including India, have expressed a view that the IP waiver for vaccines should be extended, without any changes in language or scope, to diagnostics and therapeutics as well as these were equally important for fighting the pandemic.
COP27 Change Anything for Countries Battling Climate Change (Inter Press Service)
The countdown to the UN Climate Summit COP27, which will take place in Sharm el-Sheikh, Egypt, from November 6 to November 18, has begun. This summit has drawn the attention of world leaders, high-ranking United Nations officials, and thousands of environmental activists worldwide. The COP27 summit is an annual gathering of 197 countries to discuss climate change and what each country is doing to limit the impact of human activity on the climate.
The primary objective of COP27 is to achieve positive results in terms of emissions reduction; on the agenda is also a discussion of financing losses and damage. “We also intend to advance the agenda to double climate adaptation financing by 2025 and reach an agreement on the unfulfilled $100 billion financial pledge from developed countries,” Amr Abdel-Aziz, Director of Mitigation at Egypt’s Ministry of Environment told IPS.
The summit’s top priorities are to achieve the Paris Agreement’s goals and progress in the fight against climate change. According to scientific research, limiting global warming to 1.5°C by 2030 requires cutting emissions in half.
Finance in Common Summit 2022: Five Public Development Banks sign Paris Gender Declaration (AfDB)
Statement on Gender Equality and Women Empowerment
Malado Kaba, African Development Bank Director for Gender, Women, and Civil Society, announced the signatories during a networking event for women executives organized by the Finance in Common Summit Coalition on Gender Equality and Women’s Empowerment in Development Banks.
“What of course is important is that this coalition fully aligns with what we do at the African Development Bank,” she said, adding that the bank had achieved 100% mainstreaming of gender in all its public operations. “Africa needs scale in action. There needs to be coordination, leveraging on our comparative advantages.” Kaba said.
Pierrette Kouakou, CEO of Fin’Elle Côte d’Ivoire shared her professional journey to provide financing for Ivorian women entrepreneurs. She deplored the obstacles standing in the way of 70% of women entrepreneurs in the informal market who she said were “not bankable, not visible, and not trackable.” She told her audience though, that with support from the African Development Bank Group’s Affirmative Action for Women (AFAWA) initiative, her company had financed 300 women-led small and medium-sized enterprises this year. “Our vision is to create a pan-African model for financial inclusion… We have to change the way to do it for women,” Kouakou said.
Related News
tralac Daily News
Local news
SA’s dynamic political, economic and investment climate (SAnews)
President Cyril Ramaphosa has emphasised the significant opportunity for private capital to invest in South Africa’s energy transition during a meeting with 20 – 20 Investment Association on Wednesday at the Union Buildings.
“As we have shown, long-term asset managers and investors will be able to contribute to sustainable clean growth in the fields of renewable energy generation and transmission. There is also great investment potential in the development of the electric vehicle manufacturing sector and the generation of green hydrogen for local industrial use and export,” President Ramaphosa said.
President Ruto pledges predictable tax regime for manufacturers (Business Daily)
President William Ruto has promised manufacturers a predictable tax regime as part of his government’s plan to attract investment. Speaking at a manufacturer’s summit in Nairobi, Dr Ruto said the intention is to create a conducive operating environment so manufacturing can create more jobs and increase its contribution to the country’s GDP. Manufacturers have decried uncertainties in Kenya’s tax regime, including frequent changes to the excise duty and VAT, many county levies and unharmonised export taxes that have made it a headache to comply and plan.
The manufacturers noted that sudden fiscal and taxation policy changes harm businesses and become a stumbling block to business continuity. Predictability of the tax regime on the other hand allows investors to make projections on long-term investment while reliability gives them confidence in the stability of economic policy.
Manufacturing contribution to the GDP has declined over the past six years to stand at 7.2 percent in 2021, down from 7.9 percent in 2019.The sector contributed 8.4 percent of the GDP in 2018, at 8.7 percent in 2017 and at 9.3 percent in 2016.The sector’s contribution has averaged 11 percent in the past decade, signalling a general stagnation.
Kenya’s dollar import cover shrinks to a seven-year low (Business Daily)
Kenya’s import cover has dropped to the lowest levels in seven years, reflecting lower foreign funding amid a faster growth in imports than exports and a slowdown in remittances from Kenyans abroad. Latest Central Bank of Kenya data shows the stockpile of foreign currencies stood at $7.32 billion (Sh752.96 billion) last Thursday, a drop of $103 million (Sh12.45 billion) compared with the week before.
Foreign exchange reserves are largely tapped for government payments such as servicing external debts and essential government imports such as medicines. The reserves, the bulk of which are in US dollars, also serve as backup funds in unlikely emergencies such as devaluation of the shilling, thus giving confidence to investors.
Kenya’s import cover is slightly above the statutory four months of import but has since July fallen below the desired 4.5 months cushion recommended by the seven-nation East African Community bloc.
Ghana, Morocco ratify deal on double taxation (Graphic Online)
Ghana and Morocco have exchanged instruments of ratification on the agreement to avoid double taxation and prevent tax evasion. The agreement for the avoidance of double taxation and prevention of fiscal evasion was signed by King Mohammed VI of the Kingdom of Morocco and President Nana Addo Danquah Akufo-Addo in 2017 when King Mohammed visited Ghana to strengthen relations in the areas of trade, investment and agriculture for economic enhancement.
The ratification means that companies in Morocco would not be made to pay taxes in Morocco and in Ghana, likewise Ghanaian companies who want to invest in Morocco would also be exempted from paying double taxes in Ghana and Morocco.
Mr Ampratwum-Sarpong said the ratification demonstrated the commitment of both parties to deepen their relations. “The ratification of the document goes to reinforce the importance of economic diplomacy. This means that a huge burden has been lifted off the trade, business and on the economic diplomacy field,” he said.
Nigeria is on the verge of economic transformation (Reaction)
It’s a turbulent time for currency markets. As the British pound tumbled to a record low, the Turkish lira traded at its weakest-ever levels, retreating 0.2 per cent to 18.45 against the dollar. Meanwhile, the Nigerian naira, which trades officially at N421 to the dollar, fell to N700 on the parallel market.
To help get a handle on the economy and stimulate growth, Nigerian policymakers have long sought mechanisms to increase international trade. This goal has largely been elusive, with Nigeria often stuck in trading arrangements akin to their colonial-era circumstances, exporting raw materials and importing manufactured goods. Even so, the country is now on the verge of an economic transformation.
“The opening of new markets and easing of cross-border transactions envisioned under the AfCFTA are expected to increase capital funds and promote both foreign direct investment and intra-continental investment within Africa,” said Sarmad Lone, regional head of global banking for Africa and the Middle East at Standard Chartered Bank.
Senegal hones its home-grown rice to cut dependence on Asian imports (Reuters)
Senegal’s rice production has soared in recent years as it seeks to reduce dependence on imports, but the population across West Africa has also risen fast, meaning countries still rely on Asia for supplies, particularly of high-quality produce.
With concern growing over food security across Africa, prompted by trade disruptions caused by the pandemic and the war in Ukraine, that dependence is now in focus, particularly after key supplier India curbed rice exports last month.
Rice is the main source of calories for the Senegalese and has become a major staple across West Africa, where local production only covers around 60% of demand, according to the 15-member Economic Community of West African States (ECOWAS).
Even as global food prices rise, many people including Gueye’s clientele still favour imports over the rice grown along the bends of the Senegal river valley in the north. West Africa’s dependence on rice imports is a drain on foreign reserves, costing it around $3.7 billion in 2021, according to U.N. trade and development agency UNCTAD data.
Featured news: AfCFTA Guided Trade Initiative
The AfCFTA guided trade initiative should not last too long – tralac founder (GhanaWeb)
Gerhard Erasmus, Professor Emeritus of the Law Faculty at the University of Stellenbosch and founder of Trade Law Center (tralac), a leading independent think tank has advised implementers of the African Continental Free Trade Agreement and African Governments not to allow the AfCFTA Guided Trade Initiative last too long. He believes that getting several countries trading in a number of limited products but rather ensure that the main achievement of the implementation processes of the AfCFTA is concluded to allow party states themselves to drive the AfCFTA.
Addressing trade experts and Trade Lawyers during the 2022 tralac Annual Conference in Nairobi, Kenya, Professor Emeritus Gerhard Erasmus, who was significantly involved in the drafting of the South African and Namibian constitutions advised governments of AfCFTA party states to be prepared to own the implementation of the continental trading agreement instead of leaving it to the Secretariat to only guide a few countries and limited products to move across regions.
He said admittedly, we do not have the AfCFTA as a comprehensive framework, but once that arrangement is completed, then countries must ensure its implementation without having the secretariat guiding trading across the continent.
DOWNLOAD
pdf tralac Special Trade Brief: AfCFTA Guided Trade Initiative (489 KB)
More on the 2022 tralac Annual Conference here.
More African trade news
Free trade agreement will boost intra-Africa deals, say 90pc CEOs (Business Daily)
Nine in 10 African chief executives have confidence the actualisation and adoption of the free trade agreement will boost intra-African trade, a new survey shows. A survey by the Pan-African private sector trade and investment committee (PAFTRAC) revealed that 93 percent of the executives from small and medium-sized enterprises (SMEs) sampled across Africa were confident the free trade agreement would improve economic activities on the continent.
“Our survey clearly shows that the vast majority of African CEOs believe that the implementation of the AfCFTA will have a positive effect on the levels of intra-African trade, even as early as 2022-23,” the report read in part. “A total of 93 percent were confident to some extent that it would have a positive impact, with 25 percent describing themselves as very confident.” Last month, Kenya shipped its first consignment of locally made batteries to Ghana, two months after it was picked among seven countries to pilot the continental free trade area. Upon successful implementation, the agreement will create a single African market of more than a billion consumers with a total GDP past $3 trillion, making Africa the largest free trade area in the world in terms of population and geographical size.
A new vision for African agency in sustainable development (Chatham House)
The conventional notion that Africa is mostly a consumer of norms and practices designed by the Global North has been repeatedly challenged and is increasingly being debunked. Increased African agency in international affairs is today a well-established and documented reality. But Africa’s influence still does not match the scale of the challenges that it faces on its pathway to sustainable development.
Pushing for African agency in sustainable development also warrants a critical assessment of how ‘sustainable development’ should be defined, and how it can be achieved in terms of actual poverty reduction and real improvement in the lives of local poor Africans. Sustainable development has been a political catchphrase for over 30 years – but a genuine transition towards sustainability has yet to begin.
In international forums on sustainable development, African countries are increasingly using their collective voice to change the discourse on how development can and should be done. For instance, by championing innovative solutions for carbon markets, African policy leaders are enabling access to climate finance for development while preserving Africa’s natural wealth.
In the post-COVID era, championing investments in and leadership of Africa’s global health architecture demonstrates a desire that in the next pandemic, Africa CDC, AMA and continental manufacturers will play leading roles in determining Africa’s public health strategy and implementation. In trade, building on the groundwork led by the regional economic commissions, the AfCFTA will catalyse and scale regional integration, trade and cooperation, leading to promising new modes of supply chain and self-sufficiency.
Encouraging signs that African agency is gaining momentum cannot disguise the fact that Africa has yet to move from rhetoric to implementation in the realm of sustainable development. Continental visions often fail to go beyond declarations of intent, and have only limited influence on governance systems or national structural transformation, and African states remain vulnerable to economic shocks emanating from the global system.
Change will require governance systems that are coordinated, transparent, efficient, and inclusive, as well as tools, processes, and means (material, technical, and human) for successful implementation. There is an urgent need for a new governance paradigm in Africa and internationally, dealing with long-term social change.
How technology is shaping the future of logistics in Africa (Ventures Africa)
Africa’s logistics market has experienced significant growth in the last few years. This advancement is pushing more and more companies to look beyond megacities, and explore strategies to connect even rural communities to regional supply chains. Communications Leader, Oluwaseun Adebola is Global Marketing Lead. In this interview with Ventures Afric, he speaks about how technology is at the centre of progress for the Logistics Market, highlighting key growth drivers for the industry in Africa.
Consortium unveils pan-African cold chain logistics to boost food security (The Africa Logistics)
To improve essential temperature-controlled logistics infrastructure in sub-Saharan Africa and ensure food security in the region, African Infrastructure Investment Managers (AIIM) and its investment partners, Bauta Logistics and Mokobela Shakati (Pty) Ltd Consortium have established a cold chain logistics platform, Commercial Cold Holdings (CCH) with the initial acquisition of CCS Logistics from Oceana Group.
Funds managed by AIIM intend to invest up to USD150 M in the platform, inclusive of the initial asset acquisitions as well as a pipeline of further acquisitions and greenfield development projects. The transaction is subject to regulatory approval. The transaction was financed by a mix of equity and debt financing.
As global population grows and demand for food supply chains increase, demand for temperature-controlled logistics is also on the rise. This transaction therefore signifies AIIM’s entry into the cold storage sector which seeks to establish a pan-African cold storage platform.
Africa’s Green Economy Summit to clean up infrastructure (ESI-Africa)
Palesa Shipalana, chief sector expert on economy and infrastructure in South Africa’s Presidency, in the Department of Planning, Monitoring and Evaluation
The biggest challenge is changing the norm. We are used to our budget process, our strategic planning processes, annually tabling and getting Parliament to approve national departments’ annual performance plans (APPs), five-year strategic plans. And, we are used to having the entire budget process itself following a specific term of its own, and we never spoke green. At some point, we spoke of sustainability. So now, we are realising that the whole package has to be repackaged and reviewed in light of a greener recovery in light of sustainable development. And in the context of the domestic economy, we also have to prioritise the rising crime rate, and poverty due to COVID-19 has gone up and inequality has gone up. Unemployment has gone up, especially amongst the youth.
So, the way we did things in the last 20 years no longer seems to be possible. So, we have to go back to the drawing board and do zero costing and in that zero costing, prioritise sustainable infrastructure, prioritise greener programmes for our communities and industries. We are now faced with loadshedding and water shedding. So, our operational environment has definitely changed, and we need to think big and be bold about how we recover this economy in a sustainable manner.
Addressing the Impact of Climate Change on Human Mobility at the center of PAFOM deliberations in Kigali (African Union)
The African Union (AU) in collaboration with the International Organization for Migration (IOM), and the Republic of Rwanda launched the 7th Pan African Forum on Migration (PAFOM), in Kigali, under the theme: “Addressing the Impact of Climate Change on Human Mobility in Africa: Building Adaptation Strategies and Resilient Communities” on 18 October 2022, to provide a more focused engagement with all relevant Migration stakeholders including Regional Economic Communities (RECs), AU Member States, Ambassadors, private sector, academia, parliamentarians, African diaspora community and civil society organizations in Africa and to discuss among others ways in strengthening continental, regional and national consultation mechanisms on Migration to enhance collaboration among African Union Member States, for sustainable Migration Governance in Africa, and serves as a platform for participants to share experiences and best practices on the impact of climate change, displacement and migration; especially within the context of the COVID-19 pandemic and formulate relevant recommendations on early warning, preparedness, and adaptation strategies, including return and reintegration in communities of origin.
Ag. Director for Social Development, Culture and Sports department, Ms. Angela Martins acknowledged that climate change is emerging as one of the key drivers of migration in Africa, and that the growing recognition of the nexus between migration and climate change has triggered much debate and policy discussions in Africa and reflecting the growing concern surrounding the impact of climate change in shaping human mobility, on one hand, and on the larger front, how these phenomena have impacts on Africa’s socio-economic development, human welfare and security.”
Experts seek to turn climate change tide on migration (The New Times)
African countries used as guinea pigs for energy experiments, Mantashe says ahead of COP27 (Fin24)
Minister of Mineral Resources and Energy Gwede Mantashe said developed economies offering energy transition finance to African economies were using them as “guinea pigs” on which to perform energy experiments. Mantashe was addressing the Africa Energy Week in Cape Town on Tuesday afternoon. The address comes ahead of a crucial COP27 meeting in Egypt in November, where SA is expected to present the plan for $8.5 billion in concessional loans and grants pledged at COP26 last year to help South Africa decarbonise its economy.
The address also comes after the minister’s keynote address to the Africa Oil Week and the 2022 Windaba earlier this month, where he criticised developed economies for trying to determine the terms of the energy transition in African countries.
AfDB asks African countries to minimise greenhouse gas emissions from oil sector (TheCable)
The African Development Bank (AfDB) has asked African countries to mitigate climate change by minimising greenhouse gas (GHG) emissions from petroleum activities. Elisabeth Mitchell, independent advisor and consultant to the AfDB, said this on Wednesday during a presentation at a webinar series on natural gas and energy transition.
“Make minimising greenhouse gas emissions from your petroleum sector central to all decisions about that sector from inception to decommissioning,” she said. “It reduces the risks of your projects becoming stranded and allows you to develop your resource for the benefit of your population in a carbon-constrained era.” She also said minimising GHG emissions should be at the centre of all decisions about the sector “from initial project design, through operating practices, to a fully funded decommissioning plan”.
Mitchell added that a recent policy paper jointly produced by the bank and the NPG discusses emerging frameworks and technologies for decarbonising the oil and gas sector.
Africa’s longest oil pipeline 30% complete (The Africa Logistics)
Africa’s longest oil pipeline is 30% complete president Mohamed Bazoum has announced. “Over 600km have already been laid across several sections of the Niger-Benin Oil Export Pipeline,” the Presidency said. The $4bn pipeline will be 2,000km long and link Niger’s oilfields in the Agadem Basin to an export terminal at Sèmè-Kpodji in Benin.
The Niger-Benin crude pipeline project, which represents phase two of the Agadem oilfield development, involves the construction of a new pipeline and associated facilities. It will feature a single point mooring system, which is expected to export 4.5Mtpa of crude oil.
Construction of the project is expected to generate additional traffic to the Port of Cotonou in Benin. The port is expected to process up to 300,000 tonnes (t) of goods, once the pipeline becomes operational.
Global economy
The multilateral system needs to implement an urgent and far-reaching SDG Stimulus Plan, that starts with immediate liquidity and debt relief actions to allow developing economies to meet the global development goals. This was an urgent call to action from the Secretary-General of the United Nations, Antonio Guterres, at the World Bank and IMF annual meetings in Washington DC this week.
This message was further elaborated in the statements submitted by UNDP Administrator Achim Steiner at the meeting of International Monetary and Financial Committee (IMFC), and World Bank Group’s Development Committee where he represented the UN. ”Action must be taken now for a sustainable common future – before the global economy tips into a recession, before the world becomes more fragmented,” said Steiner.
In a report on international debt relief issued before the World Bank–IMF annual meetings and ahead of the G20 Finance Ministers and Central Bank Governors Meeting, UNDP warned that 54 developing economies –that account for 3% of global GDP but over 50 percent of the world’s poor-- need debt relief now to avert a major systemic development crisis.
The risks of inaction are dire: if debt-distressed developing economies do not get access to effective debt restructuring, poverty will rise, and they will struggle to invest in adapting to climate change. Poor countries in debt distress are among the most climate-vulnerable in the world
Fifty-four developing economies accounting for more than half of the world’s poorest people need urgent debt relief as a result of cascading global crises. The risks of inaction are dire - if these countries do not get access to effective debt restructuring, poverty will rise and desperately needed investments in climate adaptation and mitigation will not happen - particularly since countries affected are among the most climate-vulnerable in the world, according to a new paper published today by the United Nations Development Programme (UNDP).
The paper - ‘Avoiding ‘Too Little Too Late’ on International Debt Relief’ - highlights the ripple effects of government responses to the recent economic crisis and warns of the potential impacts. Against this bleak backdrop, the paper lays out a number of policy actions for debt restructuring that could help stop the debt crisis in its tracks.
Market conditions are shifting rapidly as a synchronized fiscal and monetary contraction and low growth are fuelling volatility around the globe: 19 developing economies are now paying more than 10 percentage points over US Treasury bonds to borrow money on capital markets, effectively shutting them out of the market. Holders of many developing economy bonds are seeing them trade at deep discounts of between 40 to 60 cents on the dollar.
Lifting 100 million out of poverty by 2025 still possible, despite recession threat (UN News)
The Multidimensional Poverty Index (MPI), a joint analysis from the UN Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI) at the University of Oxford, goes beyond measuring poverty as a measurement of poverty, and looks at other indicators, from access to education and health, to living standards such as housing, drinking water, sanitation and electricity.
Using this way of calculating the issue, the study shows that, even before the COVID-19 pandemic and the current cost-of-living crisis are accounted for, some 1.2 billion people in 111 developing countries are living in acute multidimensional poverty - nearly double the number who are seen as poor when poverty is defined as living on less than $1.90 per day.
United Nations Development Committee Statement (UNDP)
We are at a make-or-break moment for the 2030 Agenda, which remains a blueprint for a global recovery and a sustainable future for all. The COVID-19 pandemic, impacts of the war in Ukraine on the cost-of-living, tightening financial conditions and unsustainable debt burdens are threatening a synchronized global recession – in the backdrop of an escalating climate crisis wreaking havoc across the globe.
While still struggling with the lingering economic impacts of the COVID-19 pandemic, high food and energy prices have hit the world, strongly exacerbated by the war in Ukraine, and are leaving already vulnerable countries unable to protect their citizens. The international community cannot let the current food crisis escalate deeper into a food catastrophe.
Time is short to prevent the food crisis from escalating in 2023. The UN Global Crisis Response Group calls on the international community to bring stability to global markets, reduce volatility, and tackle the uncertainty of commodity prices. The same goes for energy markets where prices remain highly elevated and volatile, especially hurting energy import-dependent developing economies many of which are already in or near debt distress. Vulnerable countries need urgent financial assistance to deal with soaring energy (and food) prices so they can protect their low-income and vulnerable populations and maintain hard won gains in access to energy and reductions of energy poverty.
The multilateral system must set in motion a push for SDG financing to address immediate needs and ensure a sustainable and inclusive global recovery. We call for a large-scale SDG Stimulus Plan that directs public sector commitments towards sustainable development, humanitarian assistance, and climate mitigation and adaptation at an annual rate of 2 percent of global GDP –$500 billion per year by 2025.
Trade and Development Board, 72nd executive session – Item 5: Economic development in Africa (UNCTAD)
The 2022 edition of our Economic Development in Africa Report’s theme is “rethinking the foundations of export diversification in Africa, the catalytic role of business and financial services”. This topic could not be more important today, as Africa, as well as much as the developing world, battles to fight off a major cost-of-living crisis, marked by rising prices, onerous debt burdens, and the very real prospect of a new economic recession, barely two years after the COVID shock. This is why finding structural, sustainable, and long-term sources of growth is so important for the African continent.
Africa remains one of the least diversified regions in the world. Commodities still account for more than 60 percent of total merchandise exports in 45 African countries. Long-term commodity dependence has left Africans vulnerable to global shocks – a crucial issue today, as shocks are becoming more common, and Africa’s socioeconomic development is suffering as a result.
Moving into more sophisticated manufacturing and leveraging technology-based services could enable African countries to participate in new, higher-value segments of global and regional value chains. Services in particular are a huge opportunity. Services account for only 17 per cent of Africa’s exports, and the sector is dominated by traditional services like travel and transport, who represent more than two-thirds of the total. Implementation of the African Continental Free Trade Agreement provides a real opportunity for Africa to diversify its economy, including through high-knowledge, intensive services. Africa should not miss this opportunity.
Investment and trade to meet the Paris climate goals (UNEP)
Money talks, they say. Well, right now, money is whispering when it comes to climate action. Yes, global climate finance flows – public and private, domestic and international – have been growing in volume. They reached USD 632 billion per year for 2019–2020. But we need an increase of at least 590 per cent in annual climate finance to get on track for the goals of the Paris Agreement.
Climate financing for developing countries also fell short of the goal of USD 100 billion per year by 2020. While we are getting closer to the goal, we need to get to the USD 100 billion as soon as possible. Financing for adaptation – which developing nations need desperately given the climate impacts already locked in – is particularly weak.
The picture is just as miserly for nature, which we need to back to end the triple planetary crisis of climate change, nature and biodiversity loss, and pollution and waste. Global investments that degrade nature exceed conservation efforts by USD 600-852 billion annually. We need to turn this equation on its head. In fact, we need to turn the financial system on its head, shake its pockets and get the money to where it needs to go. Let’s consider the four key areas in which we can shake things up.
The global food crisis: consequences and solutions (Trade Finance Global)
Today, the world is witnessing a severe global food crisis triggered by heavy inflation, supply chain disruption, and the Russia-Ukraine conflict. This comes when the global food market stability is still recuperating from the COVID-19 pandemic-induced economic crisis and climate-linked crop failures, both hurricane and drought-led. Consequently, low-income economies that hinge on food imports heavily have been hit the hardest.
The current agro-situation is about food availability and essential food items access––including wheat, rice, maise, and seed oil––to the neediest and the most vulnerable economies. Experts assert that open trade, information transparency, waiver in food import bills, and, most importantly, free flow of fertilisers for farmers worldwide are the prominent calls to action to alleviate the situation. Assisting farmers with weather index subsidies, and helping them sow weather-resistant seeds to control crop losses, are some of the measures that require universal infrastructure.
Heads of public development banks on Wednesday underlined the critical need to build resilience for fragile countries and to boost African countries’ capacity to tackle global emissions in a sustainable manner. Stressing the need to forge even stronger cooperation, they said the third Finance in Common Summit, held for the first time in Africa, would be proof of commitment to reducing poverty and “future proofing” the planet.
The summit which opened in Abidjan, the commercial capital of Cote d’Ivoire, comes amid overlapping global crises: Covid-19 pandemic, climate change and the Russia-Ukraine war. These crises are severely affecting many parts of the world, particularly Africa. The summit is being held with less than a month to the UN climate conference, COP27, to be held in the Egyptian town of Sharm el Sheikh.
African Development Bank Group President, Dr. Akinwumi Adesina said a continent beset by capital flight from emerging markets, increasing debt service costs, and which is also home to nine out of the world’s ten most vulnerable countries to climate change needed its backers to “go further.” These fragile states depend on the African Development Fund, the concessional lending window of the African Development Bank Group.
“That’s why together as Finance in Common, we need to do more to pool our resources and leverage the pools of capital in the private sector for climate finance… We must do all possible to ensure energy transitions, while recognizing the specific needs of developing countries,” Adesina said.
Climate adaptation success lies in spirited cooperation of development banks – FiC (Engineering News)
A conclusive message arose from the third instance of the Finance in Common (FiC) summit hosted on October 18 to 20, in Abidjan, Côte d’Ivoire, that a common vision and cooperation between development banks is needed to realise Africa and the world’s climate adaptation goals. “What is good for Africa is good for the world, and it has never been more true than with the climate crisis,” said Global Centre on Adaptation (CGA) CEO Patrick Verkooijen.
World Bank Advisory Council on Gender and Development (World Bank)
The World Bank Group’s Advisory Council on Gender and Development is the main external consultative body helping the World Bank Group promote gender equality, a prerequisite to our goal of ending extreme poverty and promoting shared prosperity. The Council meets twice a year to consider progress on, and constraints to, gender equality globally, and to provide feedback and advice on the World Bank’s work in this area. Members also collaborate on projects that promote gender and development, and contribute to efforts to raise awareness of gender-related issues and the benefits to societies and economies of improving opportunities for women and girls.
Governments step up drive to bolster air connectivity (Trade Arabia)
Governments attending the 41st ICAO Assembly earlier this month have taken new steps to strengthen the role of air connectivity in their strategic planning and policies to achieve global sustainable development. “You have strongly promoted the recognition of aviation as a powerful enabler of economic recovery, the need for increasing liberalization of air services, and the role of air cargo operations in keeping our world supplied and connected in times of crisis,” declared ICAO Council President Salvatore Sciacchitano in his closing remarks.
Related News
tralac Daily News
Local news
Perseverance and Resilience Will Help SA Companies Break into French Market – SA Ambassador Seokolo (the dtic)
The South African Ambassador to France, Mr Tebogo Seokolo says the South African businesspeople will need copious amounts of perseverance and resilience if their ambitions of breaking into the French market were to be realised. Seokolo was speaking after visiting the South African National Pavillion that has been set up by the Department of Trade, Industry and Competition (the dtic) for 26 companies to exhibit their products in the biennial Sial Paris Food Products Exhibition that opened its doors today.
After visiting all the companies’ exhibition stands and interacting with the SA businesspeole, Seokolo expressed his happiness at the SA pavillion, the composition of the business delegation and the quality of products that they companies are displaying in France.
KRA to collect extra Sh3bn from beer, juice, water taxes (Business Daily)
The Kenya Revenue Authority raised taxes on a range of excisable goods like beer, bottled water and juice by 6.3 percent from this month in line with average price growth for the financial year ended June 2022. But the KRA maintains that the increments will not significantly hurt consumption. “It may look little because when you look at the spectrum of taxes that we collect, it comes from various sources which contribute little by little to make the trillions [of shillings] that we collect,” Maurice Oray, KRA’s Deputy Commissioner for corporate policy, told the Business Daily.
EAC: Kenya and Tanzania Seek to Eliminate Trade Barriers (RegionWeek)
Government officials of both countries Kenya and Tanzania have been asked to work towards removing barriers to trade between their countries. The call was made by the two leaders this Monday, 10th October 2022, at a joint press briefing in Dar es Salaam, where they were holding bilateral talks.
President William Ruto and President Samia Suluhu Hassan have agreed on working formula that will eradicate trade barriers between Kenya and Tanzania. In her speech, the Tanzanian Head of State acknowledged that 68 trade barriers were identified and 54 non-tariff barriers were eliminated, but 14 barriers still exist.
Uganda has the most promising financial sector in eastern Africa (Quartz)
Kampala could soon dislodge Nairobi from its status as the financial capital of eastern Africa if Uganda continues with measures that have seen it rise to become the regions’ most developed financial sector. This is according to the sixth edition of the 2022 Absa Africa Financial Markets Index (pdf) released by the Official Monetary and Financial Institutions Forum(OMFIF), a London-based banking think tank and Absa Bank, one of Africa’s leading banks.
The country trounced all regional peers this year to emerge as the region’s leader in terms of growth of foreign exchange markets, macroeconomic opportunities, and enforceability of standard master agreements—three of what the report calls “pillars” of capital markets growth.
Kenya has been leading the region, with a score of 65 in 2020, 58 last year but dropped further to 47 this year, partly due to this year’s general election economic uncertainties.
The Ugandan economy grew at 4.6% this year, faster than had been predicted, with the World Bank citing an uptick in business activity after the economy reopened last January after a two-year closure over the covid-19 pandemic.
“On the supply side, services, and industry were the main drivers of economic growth. There was also strong recovery in wholesale and retail trade, real estate, and education, with industry rebounding through construction and manufacturing,” the World Bank says. It anticipates the rate of economic growth could rise to over 6% in the medium-term.
Tanzania clears trucks ferrying goods to Kenya after delay (Business Daily)
Trucks ferrying goods to Kenya from Tanzania, which had been stuck at the Namanga border last week have been cleared, just days after President William Ruto’s visit to the neighbouring country. An official at the customs office said the snarl-up on the Tanzanian side had been caused by a lack of proper documentation by truckers entering Kenya. Almost 1,000 trucks had been marooned at the border for nearly a week in what customs officials attributed to noncompliance on export permit.
In August, Tanzania introduced an export permit for all persons trading in maize and other grain within its territory.
“The delays that we witnessed in the last week have now been sorted out with the traffic now flowing normally in both directions,” said the customs office at the Namanga One Stop Border Post. The new measure by the Tanzanian authorities made it mandatory for importers and exporters of grain to register with the Business Registrations and Licensing Agency (BRELA) and obtain a trading permit for conducting exports.
Finance minister recommends more taxes to reduce Nigeria’s debt burden (The Guardian Nigeria)
The Minister of Finance, Budget and National Planning, Zainab Ahmed on Tuesday insisted that only the collection of more taxes and effective blocking of revenue leakages were realistic measures that would drastically cut borrowings and reduce the nation’s high debt burden. Ahmed stated this at a workshop on tax expenditure organised by the ECOWAS Commission under the Context of the Implementation of the Support Programme for Tax Transition in West Africa (PATF) in Abuja.
She said: “If we have more taxes and redirect the taxes to the right fiscal sectors of our economy, we will reduce our debt burden. It is not as if the debt is beyond what the government can handle. If you look at the ratio of the debt to the Gross Domestic Product (GDP), I think the government is doing well. “The debt is not something that cannot surmounted. The programme today is to block leakages where the taxes are being diverted. So if we block leakages, and if it is transparent, Nigeria will borrow less and we will have more money to finance other sectors”.
African trade and integration
Survey reveals ‘huge support’ for AfCFTA (Engineering News)
The results of the third yearly Africa CEO Trade Survey, run by the Pan-African Private Sector Trade and Investment Committee (Paftrac) and African Business magazine have shown “huge support” for the African Continental Free Trade Area (AfCFTA) and the potential benefits that it could bring, says Paftrac chairperson Professor Patrick Utomi. “The results of our survey are clear. Business leaders are generally optimistic that the free trade area will benefit both their own companies and African economies more generally,” he says.
The Africa CEO Trade Survey results were discussed at a recent trade policy webinar by a panel including the AfCFTA secretariat, Google, Africa Business Council and the International Islamic Trade Finance Corporation. AfCFTA secretariat secretary general office senior adviser Cynthia Gnassingbe-Essonam said during the webinar that the Africa CEO Trade Survey reports constitute “a blueprint for the implementation of the AfCFTA, as it provides real on-the-ground information as to what are the constraints to the private sector to fully take advantage of the AfCFTA.”
New initiative to boosts intra-Africa trade (IPPmedia)
According to the 2021 Economic Development in Africa Report, lack of trust is being revealed as the main reason causing low intra-African trade when compared with intra-European trade. Intra-African trade is currently low at 14.4 percent of total African exports compared to 69 percent for Intra Europe trade. “The fact that many individuals and entities are unable to prove that they are who they claim to be, or unable to provide the necessary credentials to allow them access to goods and services,” says a report.
Smart Africa alliance comprises 32 African countries, international organisations and global private sector players tasked with Africa’s digital agenda. With a vision to create a single digital market in Africa by 2030, the Smart Africa Alliance brings together Heads of State who seek to accelerate the digitalization of the continent and create a common market.
SATA is expected to establish institutional ownership and accountability combined with a trust framework based on standards and trust assurance mechanisms to facilitate cross-border interactions such as e-payments.
Industrial policy set to shift from the business as usual approach (IPPmedia)
The largest reserves of cobalt, diamonds, platinum and uranium in the world are in Africa. It holds 65 percent of the world’s arable land and 10 percent of the planet’s internal renewable fresh water source. In addition to its natural endowments, Africa has the youngest population in the world; around 60 percent of the continent’s population is currently below 25 years of age.
Although, African industry is underperforming in terms of quality employment creation and total factors productivity. The African continent has not advanced to satisfactory industrialization levels. To reverse this situation, the attainment of inclusive and sustainable industrialization and economic diversification in Africa is a priority item on the development agenda.
Africa’s drive for industrialization will benefit from an innovative policy mix that combines the focus on traditional manufacturing with a forward-looking focus on new and emerging high-sophisticated opportunities. This will yield certainly significant economic progress across Africa, particularly with the new Africa Industrial Revolution Strategy (AIRS) framework associated with the fully integrated African market under the AfCFTA.
Council Post: How AfCFTA And The AFDB Could Reinvent Sub-Saharan African Business (Forbes)
Debt hampers women’s economic potential (The Herald)
Zimbabwe, like many countries in Africa and across the world is constrained by high public indebtedness, a situation experts say requires immediate practical solutions to resolve given its widespread negative impact, including the strain on women’s ability to realise their full potential in the economy.
Upcoming entrepreneurs and other marginalised women, especially in rural areas, have mainly been at the receiving end of the debt overhang, which the Second Republic inherited and whose resolution it has made one of its top priorities. For the fairer sex, high public debt constraints push many into unpaid and care work.
Experts say the effect of debt contraction and repayment leaves women in invidious situations as debt obligations result in significant revenues having to be channeled towards debt servicing, reducing allocations that can be made available for social service delivery and infrastructure that directly benefit women.
Another challenge that results from high public debt situations for women is the impediments this creates to access to finance for women-led start-up businesses while more efforts are put towards taking care of families by women and girls, with some dropping out of school.
“We borrow to commercialise agriculture and modernise it with new technologies, but how many women say in remote rural areas benefit directly from this, can they access that same technology,” she asked at the just-ended debt conference in Bulawayo hosted by the African Forum and Network on Debt and Development (AFRODAD).
The African Development Bank Group’s Affirmative Finance Action for Women in Africa (AFAWA) initiative is launching its second call for proposals for the Women Entrepreneurship Enablers program, targeting women’s business associations, incubators, accelerators, women-led cooperatives, and civil society organizations that promote the development of women entrepreneurs on the continent.
The program supports projects that enhance the viability and sustainability of formal women-led small and medium-sized enterprises (SMEs) and enables them to access financing opportunities to grow their businesses.
“Entrepreneurship enablers play an important role in bolstering the skills of women to establish ‘bankable’ SMEs. However, the enablers themselves often face challenges, such as viable long-term growth plans and lack of financing, which reduce their reach, impact, and sustainability,” said Esther Dassanou, AFAWA’s Manager.
IFC backs food supply chain strengthening initiative in West, Central Africa (Engineering News)
The International Finance Corporation (IFC), Swiss bank BIC-BRED (Suisse) and Swiss commodity trading group Agro Companies International (ACI) have partnered to help finance the importation of grain into Côte d’Ivoire, Cameroon, Ghana and other African countries. The partners aim to boost food security in West and Central Africa amid a growing global food crisis. The IFC has agreed to invest $20-million through a risk participation agreement, in a $60-million trade finance facility arranged by BIC-BRED, for ACI.
Africa is highly dependent on imported wheat and other grains, with 44% of the continent’s wheat have been sourced from Russia and Ukraine in 2020. Russia’s invasion of Ukraine has led to wheat supply chain disruptions and highlighted the urgent need for grain trade financing to ensure food security in Africa.
Galvanizing support to build resilient and sustainable food systems (IPPmedia)
The African Union Commission in partnership with the International Federation of Red Cross and Red Crescent Societies (IFRC), the Food and Agriculture Organization of the United Nations (FAO) and the African Development Bank (AfDB) co-convened the high- level conference to advocate for political, humanitarian and financials support as long-term needs and durable solutions to the persistent food insecurity on the continent. The High-Level Food Security and Nutrition Conference convened on 10th October 2022, which brought together over 300 delegates at the African Union Headquarters in Addis Ababa, highlighted the importance of collaboration and cooperation in fast-tracking efforts to mobilize the political, humanitarian, and financial support to respond to the various shocks currently affecting the continent’s agriculture and food systems.
The high-level delegates and African Minsters of Agriculture declared their commitment to support sustainable food security, transforming food systems, and building a viable, commercial, and productive agricultural ecosystem in Africa. They expressed their determination to channel more investment and resources to agriculture and committed to building stronger partnerships within and outside Africa towards new commitments that will contribute to comprehensive responses to the prevailing food insecurity and malnutrition crises in many parts of the continent.
Stakeholders to host the 7th Annual circular economy conference (Kenya News Agency)
Sustainable Inclusive Business Kenya (SIB-K), a knowledge centre under the Kenya Private Sector Alliance (KEPSA), will partner with TheRockGroup (TRG) and the European Union to co-host the 7th Annual Circular Economy Conference to take place on 26th October 2022 in Nairobi. The conference, which will happen ahead of COP27, 2022 United Nations Climate Change Conference, will bring together governments, private sector players, bilateral partners, civil societies, academia, and individuals from across Africa and internationally, to provide an understanding of key ingredients in a successful roadmap to a circular economy.
A circular economy aims to change the paradigm of the take-make-waste model by reducing the environmental impact, keeping resources in use, and increasing efficiency at all stages of the product economy. To achieve this, public-private-community partnerships are key, as they enable the merging of insights around industry and people’s needs and policy developments. Africa has an opportunity to transform its economy into a circular, sustainable and ethical business environment and create jobs, boost MSMEs, and improve gender equality. Governments, civil society, the private sector, and other institutions play a crucial enabling role in shaping and supporting this transition.
African Development Bank head urges multilateral development banks to drive healthcare financing (AfDB)
Africa will never again be caught flat-footed at the outset of another health pandemic, African Development Bank Group President Dr. Akinwumi Adesina stressed on Monday at the World Health Summit in Berlin. Adesina—who was a panelist in a session of the summit titled “Game Changer: a new lens on investment in health and well-being”—deplored the adverse situation that African countries found themselves in at the very end of the global queue for vaccines when Covid-19 ravaged populations over its rapid global spread.
This situation, Adesina said, had prompted the African Development Bank to take innovative steps to address both the impact of the pandemic in Africa and healthcare financing for the region more holistically.
Adesina said the bank was investing $3 billion in the pharmaceutical industry and had set up the African Pharmaceutical Technology Foundation, which would deal with intellectual property rights and access to proprietary technology to allow Africa to manufacture its drugs and build its own ecosystem for capacity in this area.
Global economy
WTO members discuss future work on trade in services following MC12 outcomes (WTO)
The chair of the Services Council, Ambassador Kemvichet Long of Cambodia, said he has started consulting with WTO members on taking work forward and encouraged them to talk to each other to come up with proposals. Members also raised various concerns about measures affecting trade in services at the Council meeting.
Malawi, on behalf of the WTO LDC Group, highlighted that implementation of the services waiver was one of the priorities from the MC12 Outcome Document. Ministers' instructions to the Council included exploring improvements in LDC services export data, reviewing information about suppliers and consumers of LDC services in preference-granting members and learning which best practices can facilitate the use of preferences.
Small is beautiful for services exports (Trade for Development News)
Services play a crucial role in contemporary economies. The share of least developed countries (LDCs) in which the services sector was the main engine of economic growth more than doubled from 38% in 1995 to 77% in 2019. Globally, services generated about two thirds of economic output in 2019 and created most jobs. Small and medium-sized enterprises (SMEs) in a few key sectors are at the heart of this services-led economic transformation.
Most services enterprises are small, with nine out of ten of them having fewer than 100 employees. Entry costs are generally lower than in other sectors. Compared with manufacturing, it is easier to be small and export in services. Where small services firms are competitive and export, they contribute to development and economic transformation.
In more recent times, the way of organizing production is the international supply chain, and technologies are digital. A set of four services, which the International Trade Centre (ITC) calls ‘connected services’, are at the centre of these contemporary economic trends. They are transport and logistics, financial services, information and communication technologies, and business and professional services.
These four connected services are critical to supply chains, in which services now provide a greater share of value – a process known as ‘servicification.’ They are also frontrunners in using digital technologies, which enable services once viewed as local to be offered across borders. They provide the ingredients all firms need to prosper – efficient payment solutions and innovative financing, reliable digital and physical connectivity, and cutting-edge business expertise.
WTO-WCO workshop discusses update of classification system for traded goods (WTO)
The workshop responded to the high interest of members in building the capacity and expertise of the Committee on Market Access on matters related to the Harmonized System and in better understanding the interlinkages between the work undertaken by the WCO and the WTO on this issue.
The Chair of the Committee, Kenya Uehara of Japan, underlined that the Harmonized System plays a key role in facilitating cross-border trade by providing a universal language for the coding and classification of goods. The HS is currently used by 211 economies and over 98% of the merchandise trade is classified in terms of the HS. Changes to its nomenclature can have an impact on the rights and obligations of WTO members, particularly with regard to their tariff commitments.
Standards transparency champions programme kicks off in Geneva (WTO)
The Technical Barriers to Trade (TBT) Agreement Transparency Champions Programme was formally launched on 10-14 October with an in-person course in Geneva. This pilot initiative aims to scale up the application of, and benefits from, transparency in regulation, and foster champions for transparency. The first cohort includes 26 officials from African countries with responsibilities for TBT transparency procedures.
In his opening remarks at the launch of the course, Deputy Director-General Xiangchen Zhang said: “Transparency is a fundamental principle of the WTO and a cornerstone of the Technical Barriers to Trade Agreement.” Transparency plays a key role in helping public and private stakeholders get timely information on regulatory developments, such as those relating to environmental protection, food labelling, and Covid-19 among many others, he added.
Latest global growth forecasts show challenges facing economies (IMF Blog)
The IMF’s World Economic Outlook released last week forecasts that global economic growth will slow from 3.2 percent this year to 2.7 percent next year. The 2022 projection was unchanged from the last estimate, in July, but next year’s was cut by 0.2 percentage point. The global deceleration will be broad-based, and the 2023 projection is less than half of last year’s 6 percent expansion. Countries accounting for about a third of the global economy are estimated to have a two-quarter contraction in real gross domestic product this year or next. The outlook is also fraught with uncertainty. We estimate there is a one-in-four probability global growth will fall below 2 percent next year and that there is a likelihood of 10 percent to 15 percent that it will drop below 1 percent.
International financial system is morally bankrupt, favours rich countries: UN Secy Gen (Economic Times)
United Nations Secretary General Antonio Guterres on Wednesday said the international financial system is “morally bankrupt” as it favours the rich countries, and he expected India’s involvement in reforming it. The developing countries received “very little from the financial instruments of recovery” as they tried to recover from the COVID-19 pandemic, and some of them are facing debt distress, he observed.
Speaking at an event at the Indian Institute of Technology Bombay, he said India’s upcoming presidency of the G20 grouping will be an opportunity to bring the values and vision of the developing world to the top table of the global economy. “The international financial system is morally bankrupt. It was devised by the rich to serve the interests of the rich.
Investment facilitation talks intensify towards achieving “stabilized” negotiating text (WTO)
Participants heard a report of the Facilitator of the Discussion Group on “Possible definitions” of terms used in the agreement (such as “investment”, “investor of another member” and “juridical person”) and heard the co-coordinators’ report about their consultations over the past two days with groups of members in different configurations. These consultations touched upon various issues, including responsible business conduct, the definition of “authorization” for an investment, home state measures, and supplier-development programmes.
Climate finance committed by major multilateral development banks (MDBs) rose in 2021 with over $19 billion committed to climate change adaptation finance, according to the Joint Report on Multilateral Development Banks’ Climate Finance, published on Friday. The report tracks the progress of MDBs in relation to their climate finance targets such as those announced at COP21 and the greater ambition pledged for the post-2020 period.
The report finds that total financing commitment by MDBs to low-income and middle income economies in 2021 of $50.666 billion, surpassed the annual expectations of $50 billion set in 2019 at the UN Secretary General’s Climate Action Summit in New York. Of the $50.666 billion of climate finance committed to low-income and middle-income economies, $47.24 billion was from the MDBs’ own account and $3.426 billion from external resources that were channelled through the banks. Mitigation finance committed to low- and middle-income economies totalled $33.055 billion, or 65%, while adaptation finance totalled $17.611 billion, or 35%. The report also records a notable increase in adaptation finance to over $19 billion in 2021, again beating expectations.
True value of climate finance is a third of what developed countries report (Oxfam)
ANALYSIS: Mining the numbers behind the rise in commodity stocks (Daily Maverick)
Global steel industry body expects 2.3% contraction in demand this year (Engineering News)
Global industry organisation the World Steel Association (worldsteel) forecasts that steel demand will contract by 2.3% this year to reach 1.80-billion tonnes. It adds that steel demand will, however, recover in 2023, growing by 1% to 1.81-billion tonnes.
Annual Meetings 2022: Development in Crisis (World Bank)
Increased poverty. Food shortages. Energy shocks. Debt crises. Climate change. Inflation. War. “A series of harsh events and unprecedented macroeconomic policies are combining to throw development into crisis,” World Bank President David Malpass said in a speech ahead of the meetings at Stanford University. “The human consequence of these overlapping crises is catastrophic.”
At the Annual Meetings Plenary session on Friday, Malpass said the World Bank Group and other Bretton Woods Institutions should consider their roles and capital structure, and evolve to better address climate change and global public goods.
tralac Daily News
Local news
Export wait times double in South African strike fallout (Port Technology International)
The strike in South Africa is likely to affect the importation of goods critical to the South African economy, finds new analysis from FourKites. Impacts will be seen in the chemical, automotive and components for manufacturing facilities.
FourKites anticipates shippers will look to hold orders being imported into South Africa until the dispute is resolved, causing dwell times to increase and a short-term impact on holding costs for goods.
On the export side, the firm foresees a surplus of inventory as producers may choose to slow production if they already have necessary material, labour and space to store goods. Raw industrial materials such as precious metals and minerals, wine, and produce are the most common exports and will be the most impacted.
Until the dispute is resolved and the backlog of cargo is processed, the strike will also impact West African and East African nations that are leveraging free trade with South Africa.
Supply Chain Latest: South Africa Port Strike Snarls Commodity Exports (Bloomberg)
A wage strike at South Africa’s port and rail operator has crimped about 75% of the bulk minerals typically exported every day from its mines to global customers, adding to a string of setbacks for the company and worsening shipping congestion in the region. Over the weekend, workers from South Africa’s Transport and Allied Workers Union rejected a compromise pay deal aimed at ending the dispute.
Transnet SOC owns and operates 16 terminal operations — including containers, bulk, break bulk and automotive sectors — across seven South African ports. It had plans to draw investment and address declining performance when the biggest union embarked on a strike Oct. 6 that spread as other labor groups joined.
The ongoing strike has staunched the flow of mineral exports at the main harbors to 12% to 30% of their daily averages, the Minerals Council South Africa, a lobby group for the mining sector, reported a week into the strike. Shippers have been unable to move 357,000 tons a day of iron ore, coal, chrome, ferrochrome and manganese onto vessels.
Even if a pay deal is reached, Transnet will need to resolve pre-existing rail issues on its main coal line that delivers the fuel from mines to Richards Bay Coal Terminal, the biggest facility of its kind on the continent.
SA Businesspeople Relish Prospects of Exporting Products to Europe (the dtic)
The South African businesspeople representing 26 companies that will be participating in the Sial Paris International Food Products Exhibition in France this week are relishing the prospects of exporting their products to Europe. The group departs for France on Wednesday, 13 October 2022 with optimism that Sial Paris, where they will be showcasing their products from 15-19 October 2022, will open doors for them to export their goods to France and the rest of Europe.
Italy-SA trade overview 2022/2023 South Africa economic outlook 2022 (Engineering News)
South Africa remains the third largest African economy, behind Nigeria and Egypt, and the most advanced and varied economy across the continent. In 2021, South Africa’s GDP was worth about $420 billion.
The 2021 annual GDP growth rate was 4.9% and the first two quarters of this year have continued the positive trend, with consumer services, manufacturing, trade and agriculture being the main sources of growth. An expansion in consumer spending on products and services boosted the demand side of the economy, but the largest share of growth came from exports and household consumption alongside. As a sector, manufacturing, already the country’s largest sector was the best performing. Additionally, smaller providers of services are diversifying and showing positive results.
Regardless of these positive signs, however, last year’s civil disorder and harsher lockdown restrictions had a severe impact on the economy in Q3, to such a degree that real GDP has not yet regained the level registered in Q2 2021, before the events. Furthermore, South Africa’s employment has taken another definitive step downwards, which is likely to further local demand in the long run.
On a positive note, South Africa’s exports showed remarkable results during the last year, with an increase of 8.5% in the fourth quarter of 2021, driven mainly by precious metals and stones (gold, platinum, diamonds), base metals and motor vehicles, parts and accessories. Imports have also steadily increased, especially in the fields of chemical and mineral products as well as iron and steel.
Maize milling drops over Sh4 billion subsidy debt (Business Daily)
Millers have scaled down purchasing maize amid a cash crisis in the wake of Sh4 billion that the government owes them. The debt, argue the millers, has cut their working capital even as the cost of maize remains high amid diminishing demand for flour.
The processors argue that the consumers’ purchasing power has significantly declined, resulting in a slow movement of flour on the shelf. “Maize remains costly on the market and our capital is tied at the Ministry of Agriculture, this means we do not have enough to purchase more stocks,” said Ken Nyagah, chairperson of the United Grain Millers.
The amount owed to millers results from the Sh8 billion subsidy that was introduced by former President Uhuru Kenyatta to tame the high cost of flour that had topped Sh250 for a two-kilo packet. The scheme lowered the cost of the staple to Sh100 before rising again to Sh200. However, only Sh4 billion was deposited in the escrow account for payment of millers who participated in the subsidy programme.
Lamu port off to slow start as 13 ships dock in a year (Business Daily)
At the time of its official commissioning in July 2021, Kenya’s second commercial port in Lamu was billed as a game-changer in trade. Transshipment involves large vessels docking at the port and redistributing their cargo to smaller ships that serve regional ports. It mainly happens when there is no direct connection between ports. But so far, only 13 ships have docked at the port, with the latest one being the MV Banyas 1 ship which will transport live animals to Oman today.
The slow rise in ship traffic and business at the port has seen the government approach more operators and shippers to market and position the Lamu port as competitive among its regional peers. The Kenya Ports Authority (KPA) has been on a charm offensive targeting to demystify doubts about the facility’s viability. Lamu port is a key part of the wider Lamu Port South Sudan-Ethiopia Transport (Lapsset) Corridor, which is being implemented at a total cost of Sh2.5 trillion ($24 billion) and mainly targets transshipment cargo. Lamu Cargo Operations manager Peter Masinde yesterday said the arrival of the Mv Banyas shows the confidence shipping lines have in the facility.
Lamu port is also the anchor facility for the Lapsset project that seeks to create a logistical corridor from the port to South Sudan and Ethiopia. The official added that the port will open dedicated berths to handle specialised cargo as the facility seeks to attract more business from the region.
Kenya-Ethiopia power buy deal to vary after five years (The East African)
Kenya will buy power from Ethiopia at 6.5 US cents per kilowatt for the next five years before it can be allowed to renegotiate. Ethiopian Electric Power (ECC) has revealed a clause in the power purchase agreement that says Kenya Power can only seek a review of the tariff after that period.
Kenya signed a 25-year deal with the Horn of Africa’s nation to start importing electricity from next month in a bid to edge out the expensive power from the national grid and ensure buffers to meet peak demand. The clause allowing tariff renegotiation is a key plank for the State-owned utility to get cheap energy that will then be passed on to consumers in the form of lower bills.
High tariffs charged by independent power producers have squeezed Kenya Power’s ability to lower the cost of electricity.
South Sudan’s oil sector pulls in more deals (The East African)
South Sudan’s oil and related sectors are still attracting enthusiasts in spite of the publicised problems, including on revenue sharing. Two weeks after the South Sudan Oil and Power Conference (SSOP) in Juba, firms have been publicising their deals from the forum meant to drive business and investment in the country’s oil production. Several agreements on financing, oil exploration and production, oil refinery and infrastructural development were inked, according to a prospectus from the petroleum ministry.
South Sudan’s Kush Bank signed a deal worth $75 million with AIS Capital Advisors for power distribution and management. Leonard Mathu, managing director of AIS Capital Advisors, said the agreement will create “a domestic value chain that enables us to control costs, deliver power at stable rates, and without interruption.”
South Sudan is the major oil producer in the East African region but its near-total dependency on the oil has made the resource a curse. Due to fees and obligations owed to oil firms, South Sudan’s 170,000 per barrel production per day means it only earns value worth 50,000 barrels of oil per day, with the rest paying up advance payments or contractual obligations.
FG Woos Foreign Investors, Says Nigeria Most Attractive Destination in Africa (This Day)
The Minister of State for Industry, Trade and Investment, Mrs. Mariam Yalwaji Katagum, yesterday in Cairo, Egypt, insisted that Nigeria remained one of the most attractive investment destinations in Africa, urging investors to take advantage of the enormous economic opportunities thereof. The minister also said Nigeria’s current e-Commerce spending stood at about $13 billion per annum, adding that the figure was projected to rise to about $75 billion in annual revenue by 2025.
She said the market outlook for the country’s e-commerce showed that the number of online shoppers in the country which was at 76.7 million in 2021, was expected to hit 122.5 million by 2025.
FG, manufacturers explore sustainable non-oil export incentives (The Guardian Nigeria)
To improve earnings from non-oil export, the Federal Government and local manufacturers are exploring sustainable incentives to encourage non-oil exporters for improved productivity and export. Indeed, the Federal Ministry of Industry, Trade and Investment has assured manufacturers and exporters of the federal government’s resolve to make foreign exchange available for businesses in the country. The Minister of Industry, Trade and Investment, Niyi Adebayo, said courtesy of the recent efforts put together by economic managers to address insecurity in the country, in the next few months there would be enough foreign exchange to go around for the business community.
He noted that the theme of the event tagged “Non-Oil Export Incentives in Nigeria – Effectiveness and Sustainability” is apt, saying that Nigeria now more than ever needs to support exports. “Historically the biggest incentive for exporters has been the Export Expansion Grant (EEG). Over the years, EEG has faced several constraints and has changed form several times.
Gambia, Nigeria trade fair will test international market for AfCFTA participation – VP (The Point)
The VP’s speech was delivered by the newly appointed Minister of Trade, Baboucar O. Joof during the maiden edition of a sub-regional trade fair of The Gambia and Nigeria. The exhibition is an initiative of the West African, Micro, Small, and Medium Enterprise Exhibition (WAMSMEE) and was organised by The Gambia Investment and Export Promotion Agency (GIEPA), in partnership with The Nigerian High Commission in The Gambia.
The theme for the exhibition is “Ahead of AFCFTA, strengthening West African MSMEs capacity to boost Intra-Regional Trade.”
“The Gambia is in a process of an economic and digital transition. Since the change to democratic government in 2017, the government has not only focused on redirecting and re-structuring the country’s human and material resource base, but we have also directed our vision to boost Inter-African trade and promote values inherent to our beliefs, product and services,” he stated.
Trade Ministry engages stakeholders on implementation of Textiles Tax Stamp Policy (GhanaToday)
The Ministry of Trade and Industry has held a second national engagement forum with textile wholesalers and retailers to discuss the implementation of the Textiles Tax Stamps Policy. The engagement follows an earlier one with importers on May 27, 2022, in Accra. It is part of the preparations for the policy’s launch and implementation before the end of the year.
The goal of the engagement, according to sector Minister, Mr Alan Kyerematen, was to “sensitize and educate the public, particularly industry dealers, on the introduction/implementation of textiles tax stamps as part of the government’s commitment to addressing the challenges of the textiles industry as well as developing the sector to harness the significant gains the sector stands to offer.”
He disclosed that there is an annual demand for African prints of 120 million yards, of which only about 35% (42 million yards) are produced locally. The remaining 65% are imported.
Ghanaian producers fail to register products to maximise export potentials – GEPA (Myjoyonline)
Many Ghanaian producers are failing to register their products to access international marketing potentials. According to the Ghana Export Promotion Authority (GEPA), exporters can only ship across borders when their products are certified by regulatory institutions. The Authority observed that exporters are challenged in selling overseas when they overlook the essence of following protocols.
“People should not see export as a difficult business. There are things you [exporters] need to do, especially, there are documentations you need to get in place,” the Deputy Ashanti Regional Director of GEPA, Francis Fosu Kwakye, said. He added, “Some need to get their products certified by regulatory institutions like the Food and Drugs Authority or the Ghana Standards Authority. They need to take things step by step. Once they can do that, they are good to go into the international export business.
African trade and integration
African states are poised to benefit from harmonised UN tools (IRU | World Road Transport Organisation)
African states are taking the necessary steps needed to improve regional trade, but more obstacles remain ahead. IRU and regional actors discussed proven UN solutions to transport and trade challenges facing the continent.
Public and private sector actors, international organisations and academia recently came together and shared a comprehensive overview of the progress made in making trade and transport more efficient and less costly in Africa. They highlighted issues and opportunities related to regional connectivity, the cross-border movements of goods, drivers and vehicles, as well as the residual impact of the pandemic.
As is the case in many other regions, trade and transport procedures – such as repetitive customs checks, road safety and border congestion – can be dramatically improved to better connect African countries internally and to global markets.
Tatiana Rey-Bellet, IRU’s Director of TIR and Transit, who highlighted the proven track record of available instruments, said, “While African states are very diverse, harmonised, tried-and-tested UN tools can double or triple intra-regional trade, at the very least, as well as significantly reduce transport costs and ultimately lower the price of goods.
UN, EU, OWIT, AWTC others harp on positioning women for global opportunities (Vanguard)
Positioning African women for the next big opportunity in the regional and global markets was the focus of the 2nd edition of the Africa Women Trade Conference, AWTC, hosted by the Organisation of Women in International Trade, OWIT, Nigeria which was held in Abuja between September 27-30, 2022.
Some of the keynote speakers harped on solutions to challenges, accessible financing, leveraging on digitization to advance trade and facilitate the integration of African women-owned businesses in regional and international markets and the global value chains.
Youth urged to exploit intra-Africa trade opportunities (The New Times)
The Secretary General of the African Continental Free Trade Area (AfCFTA), Wamkele Mene, has encouraged youth to tap into opportunities offered by AfCFTA, saying that governments can only offer a conducive environment to trade but it’s the youth to conduct the trading. Mene made the remarks during the closing of the fifth Youth Connekt Summit that was attended by over 9000 youth from across Africa.
“AfCFTA is being negotiated by governments, but it is not governments that trade, its entrepreneurs, small medium enterprises that are led by young Africans. Under AfCFTA, young people will be able to create 450 million jobs in Africa, contributing over 60per cent to Africa’s GDP. It is the driver of Africa’s economy.”
Lowering trade finance costs could provide billions in economic benefits in four West African countries, according to a new report released today by the International Finance Corporation (IFC) and the World Trade Organization (WTO). The report, Trade Finance in West Africa, examined the major barriers to trade finance in the four largest economies of the region – Côte d’Ivoire, Ghana, Nigeria, and Senegal – which face a trade finance shortage of up to $14 billion annually.
The analysis showed that while trade flows have been on the rise in the four countries, their potential remains constrained by limited and costly access to trade finance. Lowering costs and increasing availability of trade finance could boost exports and imports in the four countries by up to $26 billion annually. Most opportunities lie in trade within the Economic Communication of West African States (ECOWAS), trade with other African countries, and with developing countries outside the continent.
Africa in pole position to grow organic food market share (The Exchange)
One of the main reasons why people eat organic food is because they believe it is healthier for them. For this segment of the market, the primary objective is healthy eating. They may also believe that organic food is more nutritious because it is grown in more natural conditions. Organic food is grown without the use of synthetic chemicals, such as human-made pesticides and fertilizers, and does not contain genetically modified organisms (GMOs).
With the new global realignment Africa is poised to tap into the EU organic food market, the continent already has organic food producers. The global organic food and beverages market size was valued at US$188.35 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 13.0 per cent from 2022 to 2030.
But who makes up the target market for organic products? Is it just a niche group of people interested in healthy eating, or is the target market much broader?
With the new global realignment, Africa is poised to tap into the EU organic food market, Africa already has organic food producers. In 2020, there were nearly 834’000 organic producers in Africa. The countries with the highest number of organic producers were Ethiopia (almost 220’000), Tanzania (nearly149’000), and Uganda (over 139’000).
Bank commits to Africa’s energy transition and electrification goals (ESI-Africa)
A financial institution in Mauritius has committed to helping Africa reach its transition and electrification goals. The Mauritius Commercial Bank (MCB) Ltd, the banking arm of MCB Group, has ambitions to become a more prominent player in the African energy landscape by financing and supporting electrification projects that encourage the use of renewable energy. MCB has recently participated in three landmark projects in Ghana, Rwanda and Nigeria. These projects are crucial milestones in the electrification goals of these respective countries and in their transition from fossil energy to more renewable, low-carbon energy sources.
Soaring inflation, low exports slow economies in East Africa (The East African)
The economic prospects of the East African region remain in dire straits over the continual low exports amid inflation raising the cost of living. A report by the UN Conference on Trade and Development (UNCTAD) says both developed and developing countries are staring at a recession following high inflationary rates that are likely to inflict worse damage than the 2020 pandemic. A global recession will most likely affect EAC exports as well as exchange rates against the dollar, the Trade and Development Report 2022 says.
The growth deceleration in 2022 was expected, as countries used up their idle capacity once vaccine programmes were rolled out and lockdowns eased. A Kenyan economist has warned that the impact is likely to be huge as it would affect the cost of living. “Export potential is likely to reduce because the demand in key destinations has reduced because people are being affected by inflation.”
Former Mandera Senator Billow Kerow warns that should world economies slide into recession, it will have a huge impact on EAC exports. “If the global economy goes into recession, as it is likely to, particularly because of what is happening in Europe, then we have two major impacts for Kenya and the rest of East Africa. First, some exports mainly to Europe, particularly horticulture will reduce significantly,” said Kerow. “Then also exports of tea, coffee and avocado will reduce because recession means demand will go down significantly.”
A new era is reshaping African air travel (Independent)
The launch of a portal to share route traffic data, including on underserved markets, connections and partnership opportunities, is the latest attempt by African airlines to shore up intra- Africa air travel numbers. The route intelligence portal launched this October by the African Airlines Association (AFRAA) to give its 44 operator members access to Africa-specific data and analysis, is seen helping airlines develop more robust post-COVID recovery plans. The portal “will facilitate data-driven decision-making on connectivity opportunities, passenger/cargo capacity, and route profitability to effectively meet the needs of the growing African aviation market,” said AFRAA Secretary General, Abdérahmane Berthé.
The latest development will complement the lobby group’s earlier proposal to create a roadmap for “hop and pick” and implement a Single African Air Transport Market (SAATM).
Global economy
After two years of shipping snarls, things are starting to turn around (CNBC)
After two years of port congestions and container shortages, disruptions are now easing as Chinese exports slow in light of waning demand from Western economies and softer global economic conditions, logistics data shows. Container freight rates, which soared to record prices at the height of the pandemic, have been falling rapidly and container shipments on routes between Asia and the U.S. have also plunged, data shows. ”The retailers and the bigger buyers or shippers are more cautious about the outlook on demand and are ordering less,” logistics platform Container xChange CEO Christian Roeloffs said in an update on Wednesday.
“On the other hand, the congestion is easing with vessel waiting times reducing, ports operating at less capacity, and the container turnaround times decreasing which ultimately, frees up the capacity in the market.”
Moscow threatens to exit Black Sea grain deal (Politico)
Russia has warned that it might not extend the Black Sea grain initiative next month unless certain demands are met, in a move that threatens to cut off exports from Ukraine under a secured route set up in July by the United Nations. Gennady Gatilov, Russia’s ambassador to the U.N. in Geneva, said in an interview with Reuters news agency on Thursday that Moscow had sent a letter to the U.N. with complaints about the deal not being implemented to facilitate Russia’s own fertilizer and grain exports. “If we see nothing is happening on the Russian side of the deal — export of Russian grains and fertilizers — then excuse us, we will have to look at it in a different way,” he said.
The current deal, created in July for an initial four months, allows Ukrainian grain to flow out of ports in the Odesa region. As of October 12, more than 7 million tons of Ukrainian grain had left the country through the secured route, according to the U.N.’s Joint Coordination Centre.
Over the past few months, Ukrainian officials have grown increasingly worried about how long the deal could last as Ukraine continued to successfully ramp up grain exports through its ports in the Odesa region — rebuilding an economic lifeline for Kyiv and critical food supplies for hungry populations around the world. Those fears have now been confirmed.
Ukraine Crop-Deal Talks May Hinge on Fertilizers and Extra Port (SupplyChainBrain)
Russia and Ukraine are both seeking changes to their landmark grain-export deal as part of discussions to extend the initiative beyond the current deadline next month, according to the United Nations.
Russia wants to see a pipeline that transports its ammonia to Ukraine’s Odesa port for shipment reopened as part of the new terms, Amir Abdulla, UN coordinator for the Black Sea Grain Initiative, said in an interview in Istanbul on Oct. 14. Ukraine is seeking to extend the deal by more than year, and include Mykolayiv as a fourth exporting port, he said.
The initial run of the pact — which has revived seaborne grains trade from Ukraine in the midst of Russia’s invasion — is due to end Nov. 19. The UN, which helped broker the deal with Turkey, is intensifying efforts to secure an extension amid heightened tensions between the two sides.
Chair’s Statement Forty-Sixth Meeting of the IMFC (IMF)
The global recovery is slowing amidst high uncertainties. Hit by multiple shocks, the global economy is facing significant challenges, and the outlook is more difficult than in April and subject to downside risks. More than two years of pandemic, followed by Russia’s war against Ukraine, are weighing heavily on economic activity with significant impact on livelihoods. Inflation is at multi-decade highs, debt is elevated, food and energy security risks are increasing, supply-chain and trade disruptions persist, and financial conditions are tightening, while capital flow and exchange rate volatility have increased. The global economy is subject to increased fragmentation risks. The steep rise in the cost of living is affecting everyone, with the most vulnerable hit the hardest. These developments come on top of intensifying inequality, debt vulnerabilities, and climate shocks. Rapid digitalization brings both opportunities and risks.
In this global context, appropriate domestic policies and intensified multilateral cooperation are essential to safeguard macroeconomic and global financial stability, shore up resilience, limit negative spillovers, and overcome the current food crisis. We will calibrate and coordinate our domestic policies, managing tradeoffs, and bolstering the effectiveness of the policy response, tailored to country-specific circumstances.
We support the IMF’s surveillance focus on timely and granular policy advice to respond to ongoing shocks and uncertainty and strengthen resilience. We welcome the IMF’s policy advice and analytical work on inflation, monetary-fiscal policy interactions, policy spillovers, and risks related to global food insecurity, trade, and safety nets. We support the IMF’s emphasis on inclusive policies. We welcome the IMF’s progress on operationalizing the Integrated Policy Framework, guiding members on the appropriate use of multiple policy tools to deal with shocks and risks taking into account country-specific circumstances and in line with the Institutional View. We look forward to the upcoming reviews of the Role of Trade in the Work of the Fund and of the implementation of the 2018 Framework for Enhanced Fund Engagement on Governance.
Shedding new light on the evolving regulatory framework for digital services trade (UNECA)
Trade is an essential vehicle to enable digital transformation, which relies heavily on access to digital networks and equipment, seamless transfer of data across borders, and movement of skilled workers and knowledge. Policies that aim to increase connectivity, to ease trade restrictions on information and communication technology (ICT) goods, and to lower barriers on digitally enabled services contribute to strengthening the pillars upon which digital trade operates.
In an effort to improve regional and global evidence on policies affecting digital trade, the UN Economic Commission for Latin America and the Caribbean (ECLAC), the UN Economic and Social Commission for Asia and the Pacific (ESCAP), and the UN Economic Commission for Africa (ECA) have worked with the OECD between 2020 and 2022 to expand the coverage of the STRI and Digital STRI tools to shed new light on the current state of global and regional regulatory landscapes that affect digital services trade.
This brief provides a summary of the key findings and insights across the three regions covered. The first section introduces the meaning of digital trade and its growing economic importance, followed by an analysis of recent developments on digital trade across the three regions. The subsequent sections describe the STRI tools and present the findings, trends, and preliminary associations between regulatory policies and trade performance.
Botswana leaps in 2022 Global Innovation Index (TechCabal)
Botswana has edged out Kenya in the list of top global innovators as more African countries punch above their weight to come up with ideas and technologies that increase productivity and output. Botswana is now the continent’s fifth most innovative country and ranked among sixteen African countries that improved their global innovation positions, fuelled by the COVID-19 pandemic.
“Botswana took the biggest leap forward, reaching 86th position, and in so doing overtaking Kenya (88th),” according to Global Innovation Index 2022.
A chapter in the World Intellectual Property Organization’s index titled, ‘What is the future of innovation driven growth?’ shows growing expenditure in education (2nd), human capital and research (51st), new business (4th), ease of access to micro-credit (15) and intellectual property payments (22) as key drivers for the Southern Africa country’s rise.
Mauritius (45) tops the continent’s list, propelled by the highest venture capital deals globally and performs well in trademarks, ICT service imports and new businesses indicators. South Africa (61) takes the second position in Africa, its innovativeness driven by market capitalisation – the highest on the continent. South Africa is also among countries that recorded the fastest rate of global labor productivity growth, between the 1970’s and 2020.
Work fast and work together, speakers urge at opening of Trade and Environment Week (WTO)
“We need to act boldly and rapidly to confront this reality and turn trade into a fully sustainable economic activity,” Deputy Director-General Jean-Marie Paugam said, noting that the WTO must fully enable sustainability policies. He noted growing efforts at the WTO, including the recently concluded Fisheries Subsidies Agreement, three new initiatives on trade and environmental sustainability, fossil fuel subsidies reform, and plastic pollution, and continuing collaboration with civil society, businesses and secretariats of various multilateral environmental agreements (MEAs).
“Trade policy must support and amplify this global effort. This is a member-driven organization. Members, please drive and drive fast!” the Deputy Director-General said.
Technical Barriers Committee helps strengthen value chains, acts as incubator for WTO reforms (WTO)
DDG Paugam cited a recent WTO analysis that quantifies the commercial and economic value of work in the TBT Committee, in particular discussion of so called “specific trade concerns” that address WTO members’ proposed or adopted regulatory measures. He noted: “Trade concerns raised at the Committee over the years cover an average of USD 2.4 trillion worth of imports per year.” This has helped prevent lengthy and costly dispute settlement cases and allowed regulations to be adapted before they enter into force.
“Trade concerns related to climate change currently represent on average 24% of the measures put on the Committee’s agenda over the past three years. This means that we are discussing issues at the core of the net-zero transition, such as the carbon footprint of solar panels or batteries for electric vehicles.”
Related News
tralac Daily News
Local trade news
Exports a way to create jobs in South Africa (SAnews)
President Cyril Ramaphosa says the export of South African products to markets in other countries has a lasting effect on the fight against unemployment in the country. He was speaking at the opening of a Lulu Hypermarket in the Kingdom of Saudi Arabia during an official State Visit to the country.
The President said the 500 South African products that are being sold at the hypermarket make an impact on the lives of those exporting the products. “[These products] create jobs in South Africa by those workers who produce this product. But they also create jobs in Saudi Arabia, by those who package them, who repackage them, who present them, and who sell them. So that, in my view, is the smartest of all partnerships that you can ever get. And we should applaud everyone who is involved,” he said. President Ramaphosa highlighted that bringing South African products to other parts of the world means that other cultures can also enjoy and become knowledgeable about the South African way of life.
Why South Africa is losing its mining investment appeal (The Exchange)
Mining MX the South African mining industry journal published its 2022 edition of the Mining Yearbook recently. The 2022 edition ran under the theme “Rock Bottom: Why South African Mining cannot risk more Mantashe blunders”. The theme is a harsh though factual indictment on the effect of government policy on the mining industry personified by the current minister of mines and former communist Gwede Mantashe.
South Africa owes its existence as a nation to its mining industry which remains one of its largest contributors to its GDP. Mining investment however, been gradually on the decline in South Africa relative to other mining destinations like Australia which consistently attracts the most in terms of mining investment in exploration and development Mining MX reports.
Botswana banned SA fruit and veg. Now traders there are demanding a U-turn (Business Insider)
A short supply of fresh produce in Botswana has left traders pleading with their government to allow them to get produce from South Africa and others again, following the Tswana nation’s decision to instate an import ban on certain commodities, the Sunday Standard reported. Instead of closing off the borders completely, Batswana traders and representatives of small-scale traders are requesting that the government reconsiders its importation ban policy to allow them to import at least 30% of vegetable and fruit commodities, it reported. Botswana earlier this year halted imports of certain produce from South Africa, including tomatoes, carrots, beetroot, potatoes, cabbage, lettuce, garlic, onions, ginger, turmeric, chilli peppers, butternut, watermelons, sweet peppers, green mealies, and fresh herbs.
Its rationale was to protect its local agricultural sectors, decrease its P9.2 billion (R12 billion) yearly import bill and boost horticultural competitiveness; but the little supply of produce it is now left with is being absorbed by big chains, with most farmers reserving contracts to supply them, per the Sunday Standard.
Coffee farmers bank on grafting to grow returns (Business Daily)
Coffee ranks among key foreign exchange earners for Kenya. However, its production has over the years been dwindling to stand at a paltry 40,000 tonnes annually from highs of 150,000 tonnes at its peak. The decline has been partly attributed to farmers abandoning the crop due to poor returns, adverse effects of climate change and an ageing farming population. To stop the sector from suffering the same fate as pyrethrum, Kenya has stepped up initiatives to boost production in the race to match successful producers such as Ethiopia, which is one of the top exporting nations of the Arabica variety in the world market.
Kenya sugar price increases on weak shilling, global scarcity (Business Daily)
A global shortage of sugar and the depreciating shilling to the dollar is contributing to the high cost of the product, as the regional States opt to sell their commodity to the European market where it is fetching a premium. The sugar prices on the world market have been volatile in the last one year with a tonne of the product going up from $509 in January to $531 in August, according to the International Sugar Organisation.
Kenya relies on imported sugar to meet its annual deficit which has now grown to 200,000 tonnes, with the country consuming one million tonnes against production of 800,000 tonnes annually. The Common Market for Eastern and Southern African (Comesa) countries, from where Kenya is allowed to import the commodity, are selling their produce to other global regions especially the European Union owing to good prices that it fetches there.
“The diversion of the commodity to other markets has contributed to an acute shortage of the produce, thus denying countries that benefit from quota sanctioned by the regional bloc secretariat every year,” said Willis Audi, head of the sugar directorate.
Zambia, US Hold Inaugural Business Summit to Boost Trade, Investment (VOA)
Zambia is hosting a two-day business summit in Lusaka this week to try to attract American investors to the country. Zambian officials say they want to diversify the economy and decrease dependence on extractive industries such as copper, which account for most of the country’s exports. Zambia’s Commerce Minister Chipoka Mulenga said the U.S. should be a key partner in that effort.
“But our focus right now is to see how best we can create jobs and revive our economic fortunes by value addition,” said Mulenga. “We want to take advantage of the new energy system that the world is migrating to from fossil fuels into clean and green energy. And we are trying to take advantage of the minerals that we have and bring a consortium of developed players that have the technology already to see how we can develop our copper from exporting concentrates in its raw form into developing it into finished products for the green energy system that we want to go into.”
Zambia is Africa’s second-largest producer of copper – after the Democratic Republic of Congo – and an important source of other critical minerals like manganese, nickel, and cobalt.
But economists say Zambia’s dependence on minerals means it has not taken advantage of being a member in the Common Market for Eastern and Southern Africa (COMESA) or the Southern African Development Community (SADC).
Uganda financial sector hailed as most developed in EA (The East African)
Uganda is running an economy with the most developed financial sector in the region, according to the latest study by the Official Monetary and Financial Institutions Forum (OMFIF) and Absa Bank. The latest feat depicts a major milestone in the country’s race towards becoming a regional financial hub, with an eye to increased inflow of foreign direct investments. The sixth edition of the Absa Africa Financial Markets Index (2022) report shows that Uganda has made significant improvement in five key areas compared to Kenya, Tanzania, Rwanda and the DR Congo. These include access to foreign exchange market, transparency in taxation and regulatory regime, capacity of local investors, state of the macroeconomic environment and transparency in the enforcement of legal contracts.
Uganda gold exporters glitter again after year’s standoff (The East African)
Ugandan gold exporters are back in business after a 13-month impasse over a tax dispute with the government. According to the recent Bank of Uganda’s composition of exports values report, the country exported gold worth about $171 million in August after recording nil exports of the mineral in the intervening 13 months. The slump came about after the government, in April last year, imposed a new levy of five per cent on every kilogramme of refined gold and 10 per cent on unprocessed gold for export. The tax had proposed a charge of $200 on every kilogramme.
The requirement became operational in July last year, forcing gold exporters to hold back stocks in protest against the tax, pending talks with the government to revise the tax downwards.
Country Economic Memorandum: Accelerating Growth and Jobs in Zimbabwe (World Bank)
Constrained private sector growth has limited the number of quality jobs. Only 33 percent of workers in Zimbabwe receive a salary, well below peers in the region and globally, suggesting a limited share of quality jobs despite workers possessing relatively higher skills. Labor productivity in informal firms is only a fraction of the labor productivity in similar formal firms, negatively affecting overall productivity. Moreover, competition from informal firms has tended to lower the productivity of formal firms by around 24 percent on average, compared with firms that do not face such competition. Dealing with the challenges of informality requires sustained economic growth, and a comprehensive and consistent policy package that tackles the root causes and consequences of informality. The CEM offers two pathways to tackle informality while placing priorities on removing policy distortions and regulatory burdens in the short run
Zimbabwe’s economy remains highly concentrated with few firms and industries, and a small number of export products—mostly minerals and tobacco—generating the bulk of foreign exchange revenues.
Supporting export diversification and participation in global value chains (GVCs) can boost productivity and contribute to jobs. Zimbabwe’s export performance has been declining over the past two decades and is still lagging in terms of the quality of trade-related infrastructure, such as certification systems and border risk management. Fully implementing the WTO Trade Facilitation Agreement would have positive provisions that could be leveraged to improve trade-related infrastructure and new technologies will have a huge impact on how these trade-related services are delivered.
FG receives draft copy of revised trade policy (TVCNews)
The ongoing review of Nigeria’s trade policy, according to Otunba Adeniyi Adebayo, minister of industry, trade, and investment, will redefine trade and commerce in the nation. The Minister stated, while receiving a draft copy of the revised Trade Policy in Abuja, that “both Nigeria and the world have witnessed major developments such as the explosion of E-commerce and digital payments, the agreement establishing the African continental Free Trade Area (AfCFTA), and the withdrawal of the United Kingdom from the European Union (Brexit).” The African Growth and Opportunity Act is only in its second year, he pointed out, making the policy review even more crucial to seizing present and upcoming prospects.
Nigeria, the most attractive investment destination in Africa – Minister (Voice of Nigeria)
The Nigerian Minister of State for Industry, Trade and Investment, Mrs Mariam Katagum says Nigeria is one of the most attractive investment destinations in Africa. The Minister was speaking at the maiden Nigeria-Egypt Trade Conference and Exhibition, with the theme “For Africa – By Africa” taking place in Cairo, Egypt. The Minister pointed out that Nigeria is a country blessed with huge natural and mineral resources in commercial quantities, favourable climate conditions and high potentials for industrial development adding that the country is one of the most attractive investment destinations in Africa. According to her, “At the onset of the Covid-19 pandemic, the government made tremendous efforts towards sustaining MSMEs, which are the engines of economic growth in any economy.”
The Minister also disclosed that the Government of Nigeria through the Federal Ministry of Industry and Trade and Investment and the Nigerian Export Promotion Council (NEPC) launched the first Export Trade House (ETH) in Egypt on the 21st March, 2022 in Sadat City.
African trade and integration
Sub-Saharan Africa: Living on The Edge (IMF)
Sub-Saharan Africa’s economic activity is expected to slow significantly in 2022 and remain relatively modest in 2023. A downturn in advanced economies and emerging markets, tighter financial conditions, and volatile commodity prices, have undermined last year’s gains. Looking ahead, the outlook remains highly uncertain. Consequently, countries in the region are living on the edge, the International Monetary Fund (IMF) said in its latest Regional Economic Outlook for Sub-Saharan Africa.
The region is expected to grow by 3.6 percent in 2022, down from 4.7 percent in 2021, due to muted investment and the overall worsening of its balance of trade. Non-resource-intensive countries, which enjoy a more diverse economic structure, will continue to be among the region’s more dynamic and resilient economies, growing by 4.6 percent in 2022, compared to 3.3 percent in oil exporters and 3.1 percent in other resource-intensive countries.
Mr. Selassie pointed to four priorities for policy makers in the region:
“First, in the context of rising food insecurity, the utmost priority must be to protect the most vulnerable. Scarce resources should go to those who need them most. Poorly targeted emergency measures should be gradually phased out.
“Second, to contend with increased inflation and tightening global interest rates, policymakers should cautiously raise policy rates, while keeping a close eye on inflation expectations and foreign exchange reserves.
“Third, policy makers in the region need to continue consolidating their public finances to preserve fiscal sustainability, particularly in the context of rising interest rates. Credible medium-term fiscal frameworks, including effective debt management, can help lower borrowing costs. In countries with acute debt vulnerabilities, debt restructuring or reprofiling may be required, suggesting the need for improved implementation of the G20 Common Framework.
“And finally, they should set the stage for high-quality growth, amid accelerating climate change. Investment in resilient, green infrastructure, and capitalizing on the region’s sizable renewable-energy resources will require both innovative private finance and energy sector reforms.
Strong, robust logistics support fundamental to successful implementation of AfCFTA – Minister of Trade (GhanaToday)
The Minister for Trade and Industry, Mr Alan Kyerematen has urged African governments to set up the necessary institutional and logistical support structures so that they can all profit equally from the implementation of the African Continental Free Trade Area (AfCFTA) agreement. The Minister, who made this call at the launch of the Africa Guided Trade Initiative in Accra last Friday, underscored the need to have institutional structures and programmes of action for boosting intra-African trade to enable entrepreneurs to produce and take advantage of the huge market provided by the agreement. He stated that governments must ensure that they have the logistics support required to move goods from one country to another.
AfCFTA’s Guided Trade Initiative takes off, set to ease and boost intra-African trade (Africa Renewal)
The Guided Trade Initiative (GTI) was launched in Accra, Ghana on 7 October and seeks to allow commercially meaningful trading, and test the operational, institutional, legal and trade policy environment under the AfCFTA. “The products earmarked to trade under this initiative include ceramic tiles, batteries, tea, coffee, processed meat products, corn starch, sugar, pasta, glucose syrup, dried fruits, and sisal fiber, among others, in line with the AfCFTA focus on value chain development,” says Secretary-General of the AfCFTA Secretariat, Wamkele Mene. The eight countries participating in the GTI are Cameroon, Egypt, Ghana, Kenya, Mauritius, Rwanda, Tanzania and Tunisia and represent five regions of Africa.
Other countries that have met the requirements and deployed the AfCFTA E-Tariff Book and the Rules of Origin Manual and have officially published their tariff rates and have had them approved by the Secretariat—will also be able to take part in the Guided Trade Initiative.
African business still up on AfCFTA (ICLG.com)
The African business community has maintained its bullish outlook on the benefits of the African Continental Free Trade Area, as it weathers global instability and the after-effects of the Covid-19 pandemic. African business advocacy group the Pan-African Private Sector Trade and Investment Committee (PAFTRAC) has published the results of its second Africa CEO Trade Survey Report, examining the effects of the African Continental Free Trade Area (AfCFTA).
In an online presentation announcing the findings of the survey, PAFTRAC Chairperson Patrick Utomi was unequivocal about the AfCFTA’s advantages: “Current challenges such as the war in Ukraine make it imperative for intra-African trade to help protect better the continent of Africa, even in a more globalised world,” he said, adding: “This must be seen as a strategic thing for Africa to do to strengthen our hand in international trade, this ability to trade and aggregate across boundaries enables us to be a bigger stakeholder in international trade.”
Ongoing regional infrastructure will boost free trade in Africa (Africa Renewal)
There is an infrastructure challenge in Africa. Annually, there is a funding gap of up to $100 billion for infrastructural development. Yet the African Continental Free Trade Area, one of the biggest projects on the continent currently, cannot succeed without adequate infrastructure. How does Africa address this funding gap?
The AfDB has been investing heavily in infrastructure in Africa. In the last six years alone, we have invested well over $44 billion in infrastructure—from roads to airports, seaports, digital infrastructure, water and sanitation and energy infrastructure. There’s no institution in the world that is investing more in African infrastructure than the AfDB. Infrastructure is our forte.
Now, for the African Continental Free Trade Area, yes, we need a lot more infrastructure. But let’s see some of the things we’ve done already to promote regional trade.
UNCTAD and AfCFTA Secretariat strengthen ties to boost regional integration and trade in Africa (UNCTAD)
UNCTAD and the African Continental Free Trade Area (AfCFTA) Secretariat have signed a memorandum of understanding to boost their joint efforts to promote regional integration and inclusive growth in Africa. The heightened partnership will enable UNCTAD to work closely with the AfCFTA Secretariat, African member states, regional economic communities, the business community and strategic development partners to foster regional economic integration and growth in Africa.
Joint work under the agreement aims to help African countries build the productive capacities they need to integrate regionally and participate in world trade more equitably. The two organizations will draw on the depth and breadth of their experiences and prioritize five key areas. These include enhancing cooperation on trade in goods, addressing non-tariff measures and non-tariff barriers and improving trade facilitation and customs cooperation across Africa.
Pandemic shocks, Russia-Ukrainian crisis transforming African trade (The Exchange)
After overperforming in its post-pandemic recovery in 2021, Africa’s economic growth will expectedly lag in 2022. IMF projects that growth will drop from 4.6% in 2021 to 3.8%. The global shocks from Russia’s invasion of Ukraine have dampened Africa’s economic prospects. The high import bills and fuel prices continue to strain import-dependent countries’ fiscal and external balance sheets. The strain risks the recent poverty alleviation progress. Consequently, Africa will remain the only developing economic zone and emerging market where per capita incomes will not revert to the pre-pandemic levels by 2023.
Recent economic diversification has incredibly cushioned East Africa against the pandemic shocks. Moreover, solid agricultural performance, closer intra-regional trade, and public spending on flagship infrastructure projects have supported the region’s GDP.
Africa has continued its post-pandemic trade recovery. Following a sharp decline during the pandemic, exports have since risen. According to IMF’s Direction of Trade Statistics (DOTS), exports topped pre-pandemic levels to reach $150 billion in the first quarter of 2022. However, similar to GDP, the sub-regions have not equally contributed to African trade growth. Since 2019, exports from East Africa have remained reasonably steady. However, some countries in the region have individually stood out. For instance, Rwanda accounts for just 8% of East Africa’s trade.
Africa’s governance, peace and security landscape has continued to present a very mixed picture, with progress in some countries and regions, stagnation in others and retrogression in yet others, with grave implications for the African Continental Free Trade Area (AfCFTA). The African Union and the Regional Economic Communities (RECs), alongside the United Nations and other stakeholders, are trying to prioritize and strengthen governance systems and promote peace and security on the continent.
Trade agreements can foster integrated economies and reduce conflict by creating disincentives among states and their actors due to the disproportionate cost of conflict. In states with high government accountability, low levels of income inequality and ethnic divisions, changes in export prices of certain high demand commodities have also been found to have limited effects. This suggests that overall public governance and systematised trade governance aimed at wide scale income generation, could positively contribute to fostering peace and stability. However, at national level, the marketplace as the locus for trade is a space where conflict becomes manifest and therefore holds the potential to contribute to both peace and development outcomes.
Against this background, the Economic Commission for Africa (ECA) commissioned a study entitled “Realizing the Triple Nexus And Trade: Towards A New Agenda For Africa” to explore the contribution of trade in the transitions from fragile, unstable and emergency contexts to sustainable development within the framework of the triple humanitarian-development-peace nexus.
Against this background, the Economic Commission for Africa (ECA) commissioned a study entitled “Realizing the Triple Nexus And Trade: Towards A New Agenda For Africa” to explore the contribution of trade in the transitions from fragile, unstable and emergency contexts to sustainable development within the framework of the triple humanitarian-development-peace nexus.
Africa’s governance, peace and security landscape has continued to present a very mixed picture, with progress in some countries and regions, stagnation in others and retrogression in yet others, with grave implication for the African Continental Free Trade Area (AfCFTA). Economists, social and political researchers have devoted vast efforts to better understand the causes of civil conflicts. Trade agreements can foster integrated economies and reduce conflict by creating disincentives among states and their actors due to the disproportionate cost of conflict. It is against this background that the Economic Commission for Africa (ECA) commissioned a study entitled “Realizing the Triple Nexus And Trade: Towards A New Agenda For Africa” to explore the contribution of trade in the transitions from fragile, unstable and emergency contexts to sustainable development within the framework of the triple humanitarian-development-peace nexus. Using the conflict assessment tools of the Fragile States Index (FSI) collated by the Fund for Peace, it identifies and analyses states with high levels of vulnerability to protracted social conflict due to the complex interplay of political, social and economic factors.
Experts Meet to Review Progress on Liberalization of Trade in Services in COMESA Region (COMESA)
Progress on the implementation of the COMESA liberalization programme on trade in services in the COMESA region is the focus of a three- day meeting of experts that got underway in Lusaka, Zambia today. This is the 12th meeting of the Committee on Trade in Services (TIS) whose key mandates include trade negotiations amongst Member States. During this meeting, the Committee will review the status of negotiations including what has been achieved and the challenges faced, with the goal being to conclude negotiations on the sectors that have been prioritized for liberalization. These are communication, finance, tourism, transport, business, construction and energy-related services.
Assistant Secretary General of COMESA, Dr Kipyego Cheluget, who opened the meeting noted that even though trade liberalization is a continuous process, the negotiations on COMESA trade in services (TIS) liberalisation programme has been lagging. “Trade in services accounts for more than 70 per cent of the global output and 51.1 per cent of labour force and thus playing a significant role in the COMESA economies,” he said. “A slow pace of negotiations cannot deliver effectively the expected results and within the given time- frames.”
Ruto navigates EAC muddy waters, but he has a grand trade plan (The East African)
Speeches by Kenyan President William Ruto since his inauguration on September 13 have left no doubt about the East Africa he wants — a borderless bloc. And he’s banking on his friend, Ugandan leader Yoweri Museveni, to help push the agenda of eliminating barriers in trade, customs, financial services and even cultures.
President Ruto lamented that border barricades have impacted the region’s growth pace. “It is our place as leaders and citizens of East Africa to work together so that we can transform our borders, which today stand out as barriers, and convert them to bridges so that goods, services and people can move across the region without any impediment,” he said.
Taxes still giving traders in East Africa sleepless nights (The East African)
The business community in the region want taxes and protectionist laws reviewed to make their products competitive. The complaints emerged at the end of a manufacturers exhibition last week in Kampala, during which they lamented taxation regimes, which are making it harder to sustain businesses. “Your tax collectors are prioritising collecting the last penny and sometimes beyond. When you tell them to broaden the tax base, they only understand registering more taxpayers, when you tell then to deepen the tax base, they understand charging more tax to the existing taxpayers; Excise duty here and there,” Deo Kayemba, the chairman of the Uganda Manufacturers Association (UMA) told an audience, among them told Prime Minister Robina Nabbanja, who represented President Yoweri Museveni at the closure of the week-long trade fair on Monday.
“None of the tax collectors thinks about the survival, sustainability and continued growth of the taxpayers and we think this is not helping the long-term growth of the economy,” Mr Kayemba said. Ms Nabbanja promised to address the concerns of the business community. But the complaints over tax are just among several issues that continue to plague the wider East African Community, 12 years after the Common Market Protocol was mooted to establish easier movement of goods, persons, labour, services and capital. Domestic market protectionism also featured among the complaints.
EU preparing new regional programmes to help strengthen EU-SADC partnership (SADC)
The European Union (EU) is preparing new regional programmes that will benefit the Southern African Development Community (SADC) Region and help strengthen the EU-SADC partnership by bringing it to a new level, representative of the EU Delegation to SADC and the Republic of Botswana, Mr Jose Angel Marta Beccera, has said. He was speaking at the official launch of the workshop on Intellectual Property Rights (IPRs) organised by the SADC Secretariat under the Support to the Industrialisation and Productive Sectors programme (SIPS) on 5th October 2022.
Mr Beccera said in the new Multiannual Indicative Programme 2021-2027 for Sub-Saharan Africa, the EU will focus its efforts on promoting enabling environments for further economic integration and trade. Under Priority Area 5 (Sustainable Growth and Decent Jobs), the Indicative Programme will support the harmonisation of trade related policies in order to strengthen Africa’s competition regime through the establishment of both modern competition rules at all levels and independent competition authorities.
ECOWAS convenes experts meeting towards the finalization of a harmonized visa regime (ECOVISA) (ECOWAS)
Regional Experts in charge of issuing and control of visas have converged in Abuja for a three (3) day technical meeting to validate the recommendations of the previously held Task Force meeting, harmonize the cost and design of the visa and deliberate on other associated modalities related to the implementation of the ECOVISA.
ECOWAS Commissioner for Economic Affairs and Agriculture, Massandje Touré-Litsé welcomed participants on behalf of the President of the ECOWAS Commission, H.E. Dr. Omar Alieu TOURAY, and the new management. She reemphasized the commitment of ECOWAS Commission towards the actualization of ECOVISA which will boost tourism in the ECOWAS region as a major economic activity in terms of income generation, job creation, foreign exchange earnings and cultural exchange which cannot be overlooked. She also underlined the benefits the implementation of the ECOVISA will bring to the region in terms of foreign direct investment drive, strengthened private sector for industrialisation that can boost economic development. Finally, she stated that ECOVISA would play a vital role in the implementation of the African Continental Free Trade Area (AfCFTA) as a tool to allow citizens of third countries to focus on our region.
Civil societies are key to Africa’s climate change resilience, says Dr Adesina (AfDB)
President of the African Development Bank Group Dr Akinwumi Adesina says civil society organizations are essential partners in the Bank’s effort to build the continent’s resilience to climate change. Addressing the opening plenary of the 2022 Civil Society Forum on Thursday in the Ivorian economic capital, Abidjan, Adesina highlighted the African Development Fund’s Climate Action Window to mobilize up to $13 billion to provide 20 million farmers with climate-smart agricultural technologies and 20 million farmers and pastoralists with weather-indexed insurance. The scheme will also revive 1 million hectares of degraded land, and provide renewable energy for about 9.5 million people.
The two-day forum was held under the theme “Engaging civil society for climate resilience and just energy transition.” It fostered an open dialogue with civil society actors, allowing them to share their views and proposals ahead of the global climate summit, COP27, slated for mid-November in the Egyptian resort city of Sharm El Sheikh.
The Board of Directors of the African Development Bank Group has approved a $50 million Risk Participation Agreement (RPA) for Natixis, a French Bank. The agreement will enable Natixis to support African banks and their small and medium-sized enterprise (SME) clients to undertake more regional and international trade. The agreement is expected to help achievement of a cumulative trade volume of $430 million over the next three years
“With this new operation, we are strengthening the trusting relationship between the various players in the African banking system in order to accelerate the development of trade,” said Mohamed El Azizi, Director General of the African Development Bank for North Africa. He added: “This is another step towards the realization of the African Continental Free Trade Area which will unleash the full growth potential of the continent and create new opportunities and jobs.”
COMESA Member States Meet to Prepare for COP27 in Egypt (COMESA)
The 27th Conference of Parties (COP27) on Climate Change will take place in Egypt from on 6 – 18 November and COMESA is gearing up for robust participation. On 6 – 7 October 2022, representatives from 13 Member States met in Harare, Zimbabwe for a preparatory workshop to develop a Regional Position Paper. In the paper, the delegates put together strategic regional priorities and critical thematic issues for submission to the African Group of Negotiators (AGN) for the COP27. The agreed priorities will be included in the negotiating texts of the global discussions.
Africa must bridge trade deficit with China – Mahama (Class FM)
Former President John Dramani Mahama has said African imports from China amount to roughly $148 billion, while exports from Africa to China is estimated at roughly $106 billion, hence, it is important to work together to bridge this trade deficit. He said the takeoff of the African Continental Free Trade Area (AfCFTA) will further bolster free trade between the continent and China but the concern should focus on how this trade benefits countries on the continent as much as it benefits China, as China is one of Africa’s biggest bilateral trading partners and will remain so.
In his keynote address to open the virtual Abuja Forum 2022 organised by Gusau Institute on Thursday, 13 October 2022, Mr Mahama noted that Ethiopia should be a model for Africa’s relations with China.
“Why should the rest of Africa not look up to that model and get the support of China to develop same and contribute to a great industrialisation drive on the continent?” he quizzed.
Global economy
Tackling food and energy crises: How trade and logistics can help (UNCTAD)
The perfect storm of crises hitting the world has strong trade dimensions, hence trade solutions must be at the heart of global efforts to respond to the challenges, UNCTAD Secretary-General Rebeca Grynspan said on 13 October. The combined effects of the COVID-19 pandemic, the climate emergency and the war in Ukraine have accelerated a global cost-of-living crisis that could plunge tens of millions more people across the world into hunger and poverty this year. Rising trade costs, especially in maritime transport, have contributed to soaring food and energy prices, which have hit record levels this year.
Trade restrictions, which now cover about 10% of all calories traded worldwide, have limited global supplies.
“If the problem has a trade dimension, then the solution must also have a trade dimension,” Ms. Grynspan said as she opened an UNCTAD side event at the 77th session of the United Nations Economic and Financial Committee.
UNCTAD warns of policy-induced global recession (UNCTAD)
Monetary and fiscal policy moves in advanced economies risk pushing the world towards global recession and prolonged stagnation, inflicting worse damage than the financial crisis in 2008 and the COVID-19 shock in 2020, UNCTAD warns in its Trade and Development Report 2022. According to the report, rapid interest rate increases and fiscal tightening in advanced economies combined with the cascading crises resulting from the COVID pandemic and the war in Ukraine have already turned a global slowdown into a downturn with the desired soft landing looking unlikely.
UNCTAD expects the world economy to grow 2.5% in 2022. Prospects are worsening, with growth in 2023 expected to decelerate further to 2.2%, leaving real GDP still below its pre-pandemic trend by the end of next year and a cumulative shortfall of more than $17 trillion -- close to 20% of the world’s income.
Net capital flows to developing countries have turned negative with the deterioration of financial conditions since the last quarter of 2021, the report says. On net, developing countries are now financing developed ones.
Online connectivity improves, but digital inclusivity remains a challenge, new UN survey shows (UNECA)
Despite multiple crises of the past two years, countries and municipalities have remained committed to pursuing digital government strategies — many implemented specifically to address the impacts of the COVID-19 pandemic. Yet, many have fallen short in providing adequate online services, according to the 2022 edition of the United Nations E-Government Survey – The Future of Digital Government.
Africa’s digital infrastructure gap is physical (TechCabal)
WTO tasks Africa on adopting digital technology for trade (The Guardian Nigeria)
To attain the objective of economic integration and sustainable development on the continent as enshrined in the Africa Agenda 2063 of ‘The Africa We Want’, the World Trade Organisation (WTO) has harped on the need for adoption of digital technology for trade in Africa. At the WTO Public Forum 2022 held recently in Geneva, Switzerland, the Lead Advisor, Dynamics Impact Advisory (DIA), Gbemisola Osadua, spoke on harnessing technology and digital innovation in order to advance Africa’s Trade and Sustainable Development Agenda during the working session.
In her remarks at the session, President of Borderless Trade Network (BTN), Dr. Olori Boye-Ajayi, specifically highlighted the peculiar challenges that women encounter while trading on the continent in relation to harnessing the potential of digital innovations.
Also speaking, the CEO of Supply Chain Africa (SCA), Adebayo Adeleke, made emphasis on Africa’s disjointed and fragmented economic and trade situation post-COVID.
On his part, Head of Trade Logistics Branch of United Nations Conference on Trade and Development (UNCTAD), Jan Hoffmann, spoke on how technological advancement would be faster in the future than it is now.
DDG González: “More cooperation on digital will create trade opportunities, reduce costs” (WTO)
“But domestic policies are just one part of the equation,” she said, adding that “we must also intensify work to develop and strengthen international standards, norms and rules to build a truly global and inclusive digital economy that benefits all, including small and women-owned businesses and least developed countries.” “To turn the huge potential of digital trade into tangible benefits, governments must deploy the right policies, including policies to build trust and confidence in the digital economy and help mobilize the massive investments needed to expand the digital economy and shrink the digital divide,” DDG González said.
World Food Day: African Development Bank marks key milestones in interventions to feed Africa (AfDB)
To help mitigate the impacts of soaring food prices and grains, worsened by Russia’s war in Ukraine, the African Development Bank in May launched the African Emergency Food Production Facility to enable production of 38 million tonnes of food over the next two years.
Agricultural aid: a game changer in tackling hunger crises (FAO)
The alarming signs of growing acute food insecurity should make us rethink the way we tackle hunger crises by addressing the root causes rather than just treating ad hoc symptoms of hunger, Director-General of the Food and Agriculture Organization of the United Nations (FAO) QU Dongyu said today. He spoke at a special side event looking at how to change the humanitarian game plan to better meet people’s needs and priorities and reverse the march of hunger across the planet.
Global food crisis: Let’s move from ‘despair to hope and action’, urges Guterres (UN News)
Sending a special message to the event, Secretary-General Antonio Guterres said it was taking place “at a challenging moment for global food security”. Secretary-General António Guterres delivers a message via video link at a FAO World Food Day event held in Rome, Italy.
AfDB head to tackle climate Africa needs finance and more finance (Devex)
Guterres: UN-African Union partnership a ‘cornerstone of multilateralism’ (UN News)
The 55-member body was founded in July 2002, and ambassadors met to discuss how UN collaboration with the organization has grown, and where progress still needs to be made. “Over the past 20 years, the United Nations and the African Union have developed a unique partnership, rooted in the principles of complementarity, respect and African ownership – a partnership that has become a cornerstone of multilateralism,” said Mr. Guterres. He listed some of the latest highlights in their cooperation, including initiatives to support the timely return to constitutional order in Burkina Faso, Guinea and Mali, conducted jointly with the West African regional bloc, ECOWAS.
Tapping the full potential of cotton in developing countries (UNCTAD)
World Cotton Day marked on 7 October is an opportunity to celebrate and show the positive impact of this important commodity. Cotton is a source of income for over 100 million families worldwide, many of them small farmers in rural communities in developing countries. A single tonne of cotton provides year-round employment for 5 people on average, often in some of the most impoverished regions, according to United Nations estimates. “But the importance of cotton for many developing countries extends beyond its producers and those directly or indirectly engaged in the value chain,” UNCTAD Secretary-General Rebeca Grynspan said in a statement.
Ms. Grynspan said it’s important for developing countries to reap the full benefits offered by cotton, by addressing both old and new challenges present in the cotton value chain.
First, productivity must be increased to produce cotton at a scale that can feed the cotton industry.
Second, adequate, timely and affordable access to inputs like fertilizers remains challenging in several cotton-producing developing countries, especially following the war in Ukraine, which has produced a massive fertilizer crunch.
Third, the cotton sector faces the rising challenge of climate change, especially the elevated risk of extreme weather events, in countries where farmers have very limited access to risk-mitigating measures such as insurance.
Fourth, efforts need to be devoted to fostering higher and more stable prices for cotton farmers, increasing access to post-harvest services such as transport, and investing in the production of cotton by-products. This could boost the benefits of this commodity by creating a wider industry cluster around it.
WTO, IFC launch joint publication on trade finance in West Africa (WTO)
In his opening remarks at the launch, Mr Diop said: “Global trade finance gaps increased during the pandemic. Supply chain pressures, inflation, and the war in Ukraine have only exacerbated the problem. This study couldn’t be timelier. There is enormous potential for an economic boost in West Africa by harnessing intra-Africa trade, but we will need coordinated action from governments, the private sector, and multilaterals to build the capacity of local lenders and improve access for SMEs.”
He continued: “The report focuses on improving the competitiveness in the region although it also shows this potential has been constrained by the costs of trade.”
More WTO news
-
Group on small business discusses implementation of 2020 recommendations, future work
-
Members seek to advance transparency decision for non-preferential rules of origin
-
Members discuss extending MC12 TRIPS Decision to COVID-19 diagnostics and therapeutics
-
Members and partner organizations look into future priorities for Aid for Trade
Related News
tralac Daily News
Local news
Egypt to participate in launching AfCFTA Guided Trade Initiative in Ghana (Ahram Online)
Egypt will participate with the largest shipment of products to Ghana within the framework of the initiative, according to a press statement.
The 10th African Trade Ministerial Meeting of the AFCFTA will be hosted for two days in the Ghanaian capital Accra.
The initiative will symbolise the beginning of commercially meaningful trade on a pilot basis between Ghana, Cameroon, Egypt, Kenya, Mauritius, Rwanda, Tanzania, and Tunisia. These countries were selected to represent the five African Union regions, namely: Western, Central, Eastern, Southern and Northern Africa, respectively.
Kenya exports tea to Ghana in first AfCFTA trading deal (TheCable)
Kenya has commenced tea exportation to Ghana under the African Continental Free Trade Area (AfCFTA) agreement.
Kenyan President William Ruto, on Wednesday, flagged off the inaugural consignment of tea to Ghana.
AfCFTA is a free-trade area agreement signed by most African countries.
Zambia remains important bilateral Namibian partner (Namibia Economist)
Zambia remains one of Namibia’s important bilateral partners, Netumbo Nandi-Ndaitwah, the Deputy Prime Minister and Minister of International Relations and Cooperation said Wednesday.
“Of all the dry Ports at the port of Walvis Bay, the Zambian dry port, is the most active in terms of volumes. Containerized imports continue to account for over 60 percent of all transit cargo via the dry port at Walvis Bay, she added. “As a consequence of our joint commission mechanism, we have jointly recorded common achievements such as the completion of the Trans-Caprivi Highway, Katima Mulilo-Sesheke Bridge on the Zambezi River, and the Livingstone-Sesheke Road, all of which have facilitated the export of goods through the port of Walvis Bay at a faster speed,” she added.
Liberia: APM Terminals Liberia Posts Significant Results with Cargo Deliveries (Front Page Africa)
MONROVIA – A month after launching the Port Automation and Digitization system (PAD), APM Terminals Liberia is already recording milestones in the efficiency of the system.
For the first time ever, 210 import containers were delivered in a day to customers, a feat that occurred on September 22, 2022. The direct result of this for the economy is that essential goods such as food, medicine, construction materials, and other products will be available faster on the market.
Commenting on this achievement and its importance for trade in Liberia, Minister of Commerce, Minister Mawine Diggs said that continuous improvement in container deliveries at the Port has a ripple effect for a vibrant Liberia market and trade industry.
The Board of Directors of the African Development Bank Group has approved a $15 million trade finance line of credit and $10 million transaction guarantee for FSDH Merchant Bank in Nigeria. FSDH will use the line of credit to provide loans to local enterprises in Nigeria.
The $25 million package will help to reduce the trade finance gap in Nigeria by making financial resources available to small and medium-sized enterprises (SMEs) in the industrial sector.
The Bank will also guarantee up to 100% of non-payment risks arising from letters of credit and similar trade finance instruments issued by FSDH under the guarantee portion. This will allow confirmation of trade transactions originated by FSDH, benefiting local import and export businesses.
How Terminal Africa is transforming logistics solutions for African businesses (Businessday)
Nigeria – A leading software startup, Terminal Africa has deployed scalable technology-based solutions to help African businesses grappling with logistical challenges, in a bid to facilitate continental and global commerce.
In Africa, logistical solutions are essential to the survival of businesses due to the dearth of critical physical infrastructure and low connectivity on both the inter and intra-country levels.
Terminal Africa has positioned itself to address the pain points for African businesses. The company has served over 3,500 businesses, shipping goods worth over ₦350m monthly, since 2021 when it was officially established.
African trade and integration
Eastern Africa Market and Trade Update, October 2022 - Burundi (ReliefWeb)
Although global food and fuel prices have decreased since the price spike that started February through June 2022, this has not been reflected in domestic commodity prices as they are still elevated and continue to rise. Most domestic currencies in the region have been a free fall against the US$ and weakening trend is expected to continue through the end of the year.
Despite the start of seasonal harvests in unimodal areas, the prices of staple cereals remained significantly higher in the third quarter, much elevated than previous year and the recent five year average in most markets. Staple commodity prices increased m-o-m in most markets in Rwanda, Burundi, Kenya, Ethiopia, Sudan, and South Sudan, due to a reduction in stocks and localized factors (drought, macro-economic challenges, conflict etc). Maize prices however decreased in Uganda and parts of Tanzania due to supply from the below-average June-to-July harvest.
The high cost of food and fuel will keep upward pressure on inflation across the region. The continued increase in cost of living is expected to constrain disposable income and purchasing power of low-income households.
African countries delay cross-border trading of securities to December (Independent)
Nairobi, Kenya | Xinhua | African countries have delayed the cross-border trading in listed securities from October to December, Geoffrey Odundo, chief executive officer (CEO) of the Nairobi Securities Exchange (NSE), said on Tuesday.
The African Development Bank (AfDB) will provide support to link ten African stock exchanges through a digital platform, he said.
“The digital platform will enable investors to place orders seamlessly with their local stockbrokers for listed equities and debt instruments in other African countries,” Odundo said.
Africa - Poor Transport Infrastructure Hindering Trade Growth (Top Africa News)
According to a World Bank report titled 'How does infrastructure support international trade?' global trade has contributed to economic growth and poverty reduction in the past three decades ' so transport infrastructure stimulates trade which brings about economic growth and reduces poverty.
To better share the gains of trade, more road infrastructures are needed to connect better regions of a country and countries in a given area as well that is the basis to improving intra-African trade. However, high transport costs continue to hinder regional integration since large-scale transport infrastructure investments require huge investments. However, once set up, road infrastructure can 'reduce transport costs both within countries and to other countries, increasing internal as well as external trade integration,' reads the report in part.
Osinbajo urges African nations to collaborate to boost blue economy (Peoples Gazette)
Vice President Yemi Osinbajo has called on African states, non-governmental and private organisations and other stakeholders to synergise efforts at harnessing seabed resources to boost the continent’s blue economy.
Mr Osinbajo said the UN Convention on the Law of the Sea (UNCLOS) allowed nations to explore and exploit mineral resources on the seabed beyond national jurisdiction for the benefit of mankind.
According to him, there is a need for Nigeria and African industrial stakeholders, private organisations, entities and NGOs to synergise efforts towards strengthening the engagement of African states in activities in the international seabed area.
Free movement across ECOWAS sub-region must be embraced - Afenyo-Markin (Myjoyonline)
Ghana – The Deputy Majority Leader, Alexander Afenyo-Markin, says while free movement within the ECOWAS sub-region is being embraced, this must be done within a framework that ensures the safety of member states’ borders and their stability.
According to him, with conflicts and jihadist insurrections taking place across the sub-region, member states have increasingly become wary of people that troop into their country, Ghana not being an exception. This he says have led to the extra checks and scrutiny that occur at various borders across the sub-region.
First AfCFTA trading - Ghana tiles, Rwanda goods take lead (Graphic Online)
Ghana has issued its first certificate of full commercial trading to a ceramic tiles production company to export its products under the African Continental Free Trade Area (AfCFTA) Guided Trade initiative.
The Assistant Commissioner of Customs in charge of the AfCFTA Secretariat, F.Y. Akoto, who made this known in an interview with the Daily Graphic in Accra yesterday, said on September 30, this year, the Customs Division issued the certificate of trading to a tiles manufacturing company, Keda Ghana Ceramics Company Limited, located at Shama in the Western Region, to export a consignment of its products to Cameroun.
“It is expected that when the products reach Cameroun, their customs officials will give the necessary preferential treatment to Keda Ceramics for it to enjoy reduced tariffs and quota-free facility,” he said.
Global economy
Trade thoughts, from Geneva, by DDG Anabel González (World Trade Organization)
A few days ago, representatives from government, business, academia, and civil society from across all regions descended on Geneva to participate in the largest outreach event of the World Trade Organization (WTO), its annual Public Forum. Buzzling with lively conversations under the broad umbrella topic of "Towards Sustainable and Inclusive Recovery: Ambition to Action", the house was packed with 3200 participants and 671 speakers engaged in person in over 140 sessions on all things trade. Like in a grand bazaar, there was something for everyone. In my case, I heard five key messages from many stakeholders, loud and clear. The common thread among them is that it is time for action at the WTO.
First, the WTO matters. In a world of overlapping and reinforcing crises, from geopolitical rifts and war, threats to food and energy security, high inflation, supply chain disruptions, climate change, and the lingering impacts of the pandemic, the strengths and weaknesses of the global trading system have come into sharp focus. The WTO system has been vital to create and maintain stability and predictability in trade relations, both in normal and in more challenging times. But it has been slow to negotiate new rules, some of its working procedures could be more effective, and its dispute settlement system is no longer functioning as intended.
There were no calls in the Public Forum to ditch the WTO, however. On the contrary, evidence continues to mount that a well-functioning global trade system is not really a choice. It is a necessity. A necessity to manage the risks arising from a vastly more complex trade policy landscape. A necessity to fill the gaps in global governance that are weighing on the ability of countries to respond to pressing collective challenges. And a necessity to help make international trade more resilient, inclusive, and sustainable.
WTO anticipates sharp slowdown in world trade growth in 2023 (UN News)
Trade growth is expected to lose momentum in the second half of this year and remain subdued in 2023, as the global economy sustains multiple shocks, such as ripple effects from the war in Ukraine, the latest forecast from the World Trade Organization (WTO) has revealed.
The UN partner agency has cautioned against imposing trade restrictions which would ultimately result in slower growth and lower living standards.
Global merchandise trade volume is estimated to grow 3.5 per cent in 2022, or slightly better than the 3.0 per cent anticipated in April.
However, volume will slow to 1 per cent next year, a sharp decline from the 3.4 per cent previously estimated.
UK exports to EU moving in 'right direction' despite traders reporting negative Brexit impact (The Institute of Export & International Trade)
British exports to the EU are starting to recover from the dual shocks of Brexit and Covid, but not as quickly as hoped.
This was the latest view from the Department for International Trade’s (DIT) director of exports Paul McComb on an Institute of Export & International Trade (IOE&IT) webinar today (6 October) titled ‘How to reboot your exports to the EU’.
McComb pointed to an 11% increase in exports to the continent in the four quarters leading up to Q1 2022 as evidence.
Despite this, UK-EU trade is still not where it was pre-Brexit, with 45% of delegates on the webinar saying their exports to the EU had been ‘negatively impacted’. A quarter said they were exporting at the same levels, while only 3% said they were exporting more.
The Latest Menace on Supply Chains Is Mother Nature (Bloomberg)
Climate change and the extreme weather it spawns are making it harder for tangled supply chains to sync up with a slowing global economy.
In the US Midwest, the problem is low river levels at just the wrong time — in the early weeks of the corn and soybean harvest. A logjam of more than 100 vessels in the falling Mississippi River is threatening to grind trade of grains, fertilizer, metals and petroleum to a halt. The largest US barge operator warned customers it won’t be able to make good on deliveries.
Over the longer term, though, supply-chain disruptions from weather events could become common, meaning businesses will “increasingly need to invest in expensive climate-change adaptation strategies,” Treasury Secretary Janet Yellen said in a speech last month. Also, households will probably have to devote resources to climate-related expenses like flood insurance, she said.
Air Cargo Demand Shows Resilience in August (IATA)
Geneva - The International Air Transport Association (IATA) released August 2022 data for global air cargo markets which demonstrated the industry’s resilience amid economic uncertainties.
“Air cargo continues to demonstrate resilience. Cargo volumes, while tracking below the exceptional performance of 2021, have been relatively stable in the face of economic uncertainties and geopolitical conflicts. Market signals remain mixed. August presented several indicators with upside potential: oil prices stabilized, inflation slowed and there was a slight expansion in goods traded globally. But the decrease in new export orders in all markets except the US tells us that developments in the months ahead will need to be watched carefully,” said Willie Walsh, IATA’s Director General.
African airlines saw cargo volumes increase by 1.0% in August 2022 compared to August 2021. This was a significant improvement on growth recorded the previous month (-3.5%). Capacity was 1.4% below August 2021 levels.
Around the world in 9 months: DP World adds new trade routes to open global markets (Khaleej Times)
DP World added more than 23,000 nautical miles of new trade routes across the globe in the first three quarters of 2022, equivalent to a complete circumnavigation of the earth. The new routes -- connecting the Americas, Europe, Asia and the Middle East -- are already opening new trading opportunities for cargo owners, better access to goods and services for underserved populations, and providing alternatives to globally congested routes and ports across the globe.
"Our purpose is to make trade flow. By bringing together our world-leading capabilities in road, rail, sea and ports, we’re able to provide new trading opportunities that connect cargo owners with their customers, whatever their products and wherever they are in the world," Tiemen Meester, chief operating officer of Ports and Terminals at DP World, said.
Tanzania, Qatar ink deal to boost trade, investments (Anadolu Agency)
Tanzania and its semi-autonomous Zanzibar island signed an agreement with Qatar on Thursday to strengthen trade and investment relations and revitalize their long-standing bilateral ties.
The agreement, witnessed by Tanzanian President Samia Suluhu Hassan, who is on an official visit to Qatar, is aimed at enhancing trade and investment cooperation and partnership between business communities from the two countries in tourism and hospitality, infrastructure, and energy, the statement said.
It added that the agreement was signed by Mohamed bin Ahmed Twar Al Kuwari, first vice chairman of the Qatar Chamber of Commerce, and Paul Koyi, chairman of Tanzania Chamber of Commerce Industry and Agriculture, as well as Ali Suleiman Amour, chairman of Zanzibar National Chamber of Commerce.
United Nations & Shanghai Cooperation Organisation To Facilitate Agricultural Trade (Silk Road Briefing)
The Food and Agriculture Organization of the United Nations (FAO) and the Shanghai Cooperation Organization (SCO) intend to facilitate trade in agri-food products between SCO member states. The aim is to look at new ways of facilitating cross-border trade, including the organization of green corridors, as well as the creation of cross-border wholesale distribution centres. SCO full members include China, Russia, India, Iran, Pakistan, Kyrgyzstan, Tajikistan, and Kazakhstan and comprise the bulk of global grain production.
The cooperation comes after supply chains problems emerging from sanctions placed on Russia due to the Ukraine conflict and the closing of borders with Russia, which is also the world’s largest grain producer. Moscow has also criticized the EU for taking grain for itself that was subject to Russia and Turkish monitoring from Ukraine that under the shipping agreement was supposed to be sent to emerging countries in Africa. Apparently, Russia was told that these shipments would be sent to developing nations and especially countries in Africa, such as Egypt, which is reliant on grain for its stable component foods for much of its 100 million population. Other African nations are in a similar position. However, it turns out that according to Putin, of the 87 ships containing Ukrainian grain sent so far, only two have been sent to developing countries (Ethiopia and Yemen) – the rest went to the EU. The EU has replied by stating that Russia does not have the right to determine where Ukraine exports its products. The Russia-Turkiye-Ukraine agreement on Ukraine’s exports of grain ends at the end of October.
Europe's largest economy Germany expects to slide into recession next year (The Daily Star)
The German government expects Europe's largest economy to slide into recession next year, contracting 0.4% as an energy crisis, rising prices and supply bottlenecks take their toll, two sources told Reuters on Thursday, citing provisional figures.
The government has cut its growth forecast for 2022 to 1.4% from an April projection of 2.2%, the sources added. It had previously forecast growth of 2.5% for 2023.
The government also expects inflation to remain in the high single digits, at a level of 7.9% this year and 8% in 2023, the sources said, though these figures could change slightly depending on the effect of a gas price brake.
Publication: Annual Update on SDR Trading Operations (International Monetary Fund)
This paper provides an update on the status of the SDR trading market and operations one year after the historic fourth general allocation of SDRs. In the reporting period, SDR trading has been dominated by SDR sales due to the 2021 SDR allocation. The VTAs continue to have ample capacities to meet the demand for exchange of SDRs into currencies. Staff has made significant progress in further strengthening the SDR trading market. Since the SDR allocation, eight new VTA members have been welcomed to the SDR trading market and many existing VTA members provided additional operational flexibilities. Discussions with a number of potential new entrants continue in the broader context of SDR channeling, which encourages contributors to have VTAs.
Related News
tralac Daily News
Local news
President Ruto flags off Kenya tea to Ghana under AfCFTA trade initiative (Kenya Broadcasting Corporation)
President Ruto spoke at the Kenyatta International Convention Center in Nairobi on Wednesday when he flagged off the first consignment of Kenyan tea destined for Accra, Ghana, under the African Continental Free Trade Area (AfCFTA) guided trade initiative.
The Head of State noted that for a long time Kenya has helped other countries to brand their tea with the good quality Kenyan tea, saying that practice must change.
The President added that in the next five years Kenya’s value added tea for export must rise from 5 per cent to 50 per cent at the minimum, noting that competitors are producing approximately 60 percent of what Kenya produces but earn three times because they are adding value to their tea.
UNDP supports AfCFTA implementation (Namibian)
The Namibia Trade Forum is conducting countrywide visits to create awareness on the country's trade policy and market access potential linked to the African Continental Free Trade Area (AfCFTA).
The United Nations Development Program (UNDP) financial specialist Sophia Nambahu said the AfCFTA holds potential for Namibians to access larger markets for their export goods, improved employment opportunities and thereby improved living standards. Nambahu said UNDP partnered with Namibia to assist with the implementation of the trade agreement by finalising the trade in goods and trade in services policies, and the national AfCFTA implementation strategy.
We must expand link between Ghana's raw materials with industrial needs (News Ghana)
Dr Kodjo Esseim Mensah-Abrampa, Director General of the National Development Planning Commission (NDPC), has underscored the need to expand link between the country’s raw materials with its processing and industrial needs.
Dr Mensah-Abrampa made the call during the 2022 Regional Annual General Meeting of the Eastern, Volta and Oti Branch of the Association of Ghana Industries (AGI) held in Worawora, on the theme, “Promoting Local Economic Development for the African Continental Free Trade Area (AfCFTA).”
“Investors must be able to identify the raw materials and invest along the chain, assuring them of ready market internally and externally,” Dr Mensah-Abrampa said.
Nigeria: Effective air connectivity key to unlocking African tourism – Minister (P.M. News)
The Minister of Information and Culture, Alhaji Lai Mohammed, has said effective air connectivity within Africa is key to unlocking the potentials of tourism in the continent.
“There is no doubt that air transportation is pivotal for any international tourism development (more so in Africa), owing to the need for tourists to move to the product destination. Air travels continue to be the dominant mode of travel for international tourists, accounting for over 50% of all international arrivals.
Reeling out statistics to back his assertion, the Minister, who also listed unfavourable visa regimes, insecurity, high cost of air transport and low quality of tourism support services among other factors hindering the growth of tourism in Africa, said Africa’s share of global international arrivals remains a paltry 5%.
Egypt inks deal to modernize Suez Canal Economic Zone (CGTN Africa)
The Suez Canal Economic Zone has signed a contract with a multi-national company that deals in infrastructure to develop and operate a customs and logistics center. The deal will see the modernization and improvement of the infrastructure at one of the busiest shipping lanes in the world. The deal was signed between the Suez Canal Economic Zone and Agility, a supply chain services, infrastructure and investment leader, to develop and operate a customs and logistics center in the Suez Canal Economic Zone.
The project is aimed at turning the zone into a global logistics hub, and improve the flow of goods and commodities and bring efficiency and lower costs to international companies and investors operating there.
Ghanaian logistics startup Swiftly aims for funding to scale internationally (Disrupt Africa)
Ghanaian logistics startup Swiftly has bootstrapped its way to a solid market presence in its home market since its launch, but is now seeking capital to help it expand internationally.
“Shipping rates directly affect everything we use, and so price is important to businesses. International shipping is mostly expensive and cumbersome due to low-tech, outmoded processes, five times more so for Africa trade lanes,” CEO Edem Dotse told Disrupt Africa.
“We want to Introduce our unique shared shipping model to the US, China and Europe, and launch a collective purchasing service to allow importers to Africa to negotiate in groups and enjoy associated price benefits and logistics benefits,” Dotse said.
African trade and integration
Afreximbank, NGF, AfSNET Commit to Smooth Implementation of AfCFTA (THISDAY Newspapers)
The second African Sub-Sovereign Governments Network (AfSNET) conference has affirmed the need for sub-sovereign governments in Africa to institute local mechanisms that would enhance the smooth implementation of the African Continental Free Trade Area (AfCFTA).
The AfSNET, which was convened last month in Abuja, Nigeria by the Nigerian Governors Forum and the African Export and Import Bank (Afreximbank) under the theme “African Sub-Sovereign Governments Network-Championing Africa’s Development,” also observed that enunciating policies on quick wins and areas where sub-sovereign governments have competitive advantage could help to build the early momentum required to optimise gains and opportunities under AfCFTA.
The conference also called for the development of the technical capacities of the operators of Micro, Small, and Medium Enterprises (MSMEs), to boost their competitiveness and their integration into the intra-African trade value chain. The communiqué of the AfSNET conference said that the removal of tariff and non-tariff trade barriers, including difficulties in securing visas and travelling within the continent, would be critical to fostering the movement of goods and services across the continent.
Egyptian investors eye Kenya's manufacturing sector (newsaf.cgtn.com)
The Egyptian business community is keen to invest in Kenya's manufacturing sector to boost the industrialization agenda of the east African nation, a government official said on Wednesday.
Khaled el Abyad, Egyptian Ambassador to Kenya said in Nairobi, the capital of Kenya, that bilateral investment and trade partnerships need to extend beyond the traditional agricultural products.
"Egyptian companies are exploring opportunities such as joint ventures, technology, and skill transfer programs with their Kenyan counterparts, especially in the area of manufacturing," Abyad said during the Egypt-Kenya business bridge forum.
Global economy
Trade growth to slow sharply in 2023 as global economy faces strong headwinds (World Trade Organization)
World trade is expected to lose momentum in the second half of 2022 and remain subdued in 2023 as multiple shocks weigh on the global economy. WTO economists now predict global merchandise trade volumes will grow by 3.5% in 2022—slightly better than the 3.0% forecast in April. For 2023, however, they foresee a 1.0% increase—down sharply from the previous estimate of 3.4%.
Import demand is expected to soften as growth slows in major economies for different reasons. In Europe, high energy prices stemming from the Russia-Ukraine war will squeeze household spending and raise manufacturing costs. In the United States, monetary policy tightening will hit interest-sensitive spending in areas such as housing, motor vehicles and fixed investment. China continues to grapple with COVID-19 outbreaks and production disruptions paired with weak external demand. Finally, growing import bills for fuels, food and fertilizers could lead to food insecurity and debt distress in developing countries.
"Policymakers are confronted with unenviable choices as they try to find an optimal balance among tackling inflation, maintaining full employment, and advancing important policy goals such as transitioning to clean energy. Trade is a vital tool for enhancing the global supply of goods and services, as well as for lowering the cost of getting to net-zero carbon emissions," Director-General Ngozi Okonjo-Iweala said.
UNCTAD and World Customs Organization enhance cooperation (UNCTAD)
UNCTAD and the World Customs Organization (WCO) have expanded their decade-long cooperation to include more areas of work. UNCTAD Secretary-General Rebeca Grynspan and her WCO counterpart Kunio Mikuriya signed a memorandum of understanding on 4 October, updating the two organizations’ previous agreement from 2013.
The new agreement will boost customs modernization by enabling interoperability between UNCTAD’s Automated System for Customs Data (ASYCUDA) programme and various WCO projects.
Policy mistakes could trigger worse recession than 2007 crisis (Modern Diplomacy)
The world is headed towards a global recession and prolonged stagnation unless fiscal and monetary policies holding sway in some advanced economies are quickly changed, according to a new report released on Monday by the UN Conference on Trade and Development (UNCTAD). “There is still time to step back from the edge of recession,” said UNCTAD chief Rebeca Grynspan.
UNCTAD is warning that the policy-induced global recession could be worse than the global financial crisis of 2007 to 2009. Excessive monetary tightening and inadequate financial support could expose developing world economies further to cascading crises, the agency said.
An anatomy of the impact of COVID‐19 on the global and intra‐commonwealth trade in goods (Wiley)
The COVID-19 pandemic generated a global shock of unprecedented magnitude, with a devastating effect on international trade flows (WTO, 2020a). This followed from disruption of economic activity as a consequence of lockdowns, travel restrictions, international border and port closures, and other virus-containment measures resulted in a macroeconomic shock. Several accounts indicate that 2020's global recession has been the worst since 1930 (Blake & Wadhwa, 2020; Hevia & Neumeyer, 2020). The pandemic affected trade flows along both supply and demand channels (Lakatos, 2020). In 2020, global trade flows collapsed on average by around 8% (WTO, 2020b); that impact, however, has varied across countries and regions, largely depending upon the level of development, trade structure, stringency of containment measures, and governments' capacity to implement policies supporting business and households.
Read the rest of this open access article here
India: Govt considering forming units to build expertise in Free Trade Agreements (Business Standard)
The Department of Commerce is considering the formation of dedicated units called "subject matter divisions" to build expertise in industries like services, agriculture, medicines, trade remedies, and digital trade as part of a more aggressive approach to free trade agreements, Livemint reported. India wants to be able to negotiate agreements with other nations at the World Trade Organization from a position of strength.
A government official said that the move aims to participate in negotiations fully prepared. With the free trade agreements being comprehensive nowadays, it is important to have experts from different domains, who have insights and so it is important to bring in people, if required, from outside the bureaucracy, the official added. India is negotiating a comprehensive free trade agreement (FTA) with the UK, EU, and Canada while it has already struck a free trade agreement with the UAE and an interim accord with Australia.
From landlocked to landlinked: Uzbekistan at the heart of Eurasian trade (IRU)
Transport sector leaders have come together in Tashkent to talk trade facilitation and Uzbekistan's critical role in developing and digitalising Eurasian logistics chains.
The recent “International Road Transport: Challenges and Opportunities” conference in Tashkent, organised by IRU member AIRCUZ, focused on the growing role of Uzbekistan as a pivotal transit country and the challenges and opportunities that lie ahead. IRU Secretary General Umberto de Pretto, who spoke in the opening session of the event, said, “Uzbekistan is a key crossroads in Central Asia and has been a trade hub for people and goods for thousands of years. And today, by turning itself from a double-landlocked to a landlinked country, Uzbekistan’s forward-looking vision is helping the sector to keep trade moving.
77% of EU companies sourcing abroad do it in the EU (European Commission)
In the last two decades, many European enterprises have engaged in international sourcing, which refers to the cross-border movement of jobs previously performed domestically, within the enterprise. Enterprises may engage in international sourcing for various reasons, such as cost reduction or to increase competitiveness.
Eurostat’s experimental statistics on Global Value Chains (GVCs) and international sourcing show policy-relevant information such as the EU's integration in global value chains, the movement of EU jobs to extra-EU countries and the motivation behind this movement of jobs.
Data for 2018 – 2020 show that most international sourcing of European enterprises takes place from one EU Member State to another: 77% of all EU enterprises sourcing abroad sourced from other EU Member States, underlining the importance of the European Single Market. In other words, when EU jobs are moved to another country, they are more likely to stay within the EU.
Taiwan currently exploring new investment opportunities in Nigeria's manufacturing, others - Envoy (Businessday)
Taiwan’s Ambassador to Nigeria and Representative, Taipei Trade Office Andy Yih-Ping Liu, has disclosed that Taiwanese investors are currently looking to expand investment in Nigeria. The investors are looking to set up manufacturing plant and other businesses, in a bid to boost trade between both countries. Liu, made this known at the ongoing 17th Abuja International trade fair organised by the Abuja Chambers of Commerce and Industry (ACCI) and also sponsored by the Taiwanese government.
“Our companies have started examining future investment opportunities. In the past one and half months, we already had two major delegations from Taiwan to explore the investment opportunities,” he said.
Related News
tralac Daily News
Local news
South Africa’s trade surplus drops to R7.2 billion (BusinessTech)
The South African Revenue Service’s (SARS) trade statistics for August 2022 recorded a preliminary trade balance surplus of R7.18 billion.
The surplus was lower than market expectations of R23.7 billion and the second lowest surplus since May 2020, said financial services group FNB.
The smaller surplus was the result of a decrease in exports of 1% month-on-month and a sizable increase of 10.4% in imports compared to the previous month, it said., noting that the decline in exports came mainly on the back of substantial lower exports of precious metals and stones of R5.4 billion (-15%); base metals of R2.0 billion (-11%) and chemical products of R1.5 billion (-13%).
“The export values of South Africa’s mining products continue to be impacted by the country’s inability to mine and ship these products to export markets during a time of high – although somewhat softer – global commodity prices,” FNB said.
Egypt: US$ 400 Million Project will Help to Improve and Decarbonize Logistics (Modern Diplomacy)
World Bank approved a US$400 million development financing agreement to enhance the performance of the logistics and transportation sectors in Egypt and to support the shift towards low-carbon transportation along the Alexandria–the 6th of October–Greater Cairo Area (GCA) railway corridor.
Egypt’s rail system is one of the most extensive in Africa, with a generally heavier focus on its passenger services, and three freight trains per direction per day in the GCA with the rest dedicated to passenger trains. The Cairo Alexandria Trade Logistics Development Project will implement a railway bypass to the congested GCA. The bypass will provide freight trains between the Alexandria Sea Port and the newly constructed 6th of October Dry Port, with an alternative route to the west of Greater Cairo. The operational bypass will also allow 15 container trains per day by 2030, and as demand increases, 50 trains by 2060 to this dry port. Additional freight trains will flow between the Alexandria Port, Upper Egypt, and the Red Sea.
There’s no intent to ban Ghana’s cocoa to the EU (Pulse Ghana)
The European Union (EU) Ambassador to Ghana, Irchad Razaarly, has dispelled reports that Ghana’s cocoa will be banned from the EU.
“The call for more sustainable cocoa production is growing globally. And our citizens in Europe are increasingly demanding measures for ensuring that cocoa and other commodities are produced in a socially environmentally sustainable way. This explains EU’s legislation on afforestation and forest degradation and must not be seen as a threat to Ghana’s cocoa.”
“There is no ban on Ghana’s cocoa. On the contrary, we want more of Ghana’s cocoa, and we are in support of Ghana and Côte d’Ivoire amongst all of the producers who meet these requirements.”
Buhari: Trade Central to Poverty Eradication, National Productivity (THISDAY Newspapers)
Abuja, Nigeria – President Muhammadu Buhari yesterday said trade has remained critical to the country’s economic growth, poverty eradication, building wealth as well as improving foreign reserves and national productivity. Buhari, said this during the opening of the 17th Abuja International Trade Fair, with theme: “Creating an Export-Ready Market Through SME Digitisation,” that was organised by the Abuja Chamber of Commerce and Industry (ACCI).
According to Buhari, trade was crucial for raising standards of living of Nigerians and improving productivity, adding that, “No economy can thrive without robust trade.”
To address Guinea-Bissau's development challenges, the African Development Bank's new strategy will promote economic diversification, structural transformation and lay the foundation for inclusive, resilient, and sustainable growth through support for infrastructure and good governance. The African Development Bank Group and Guinea-Bissau mutually adopted this approach in the Country Strategy Paper 2022-2026, published on 20 September 2022.
The objective of the Country Strategy Paper is to support Guinea-Bissau in building the necessary infrastructure to transform agricultural goods, promoting entrepreneurial initiatives for job creation, improving governance and targeting fragility drivers. The Bank Group will target three sectors: energy, transport and financial governance, to support the government's debt sustainability efforts.
Osinbajo, governors to attend Africa Trade Consortium (Daily Times Nigeria)
The Vice President of Nigeria, Prof. Yemi Osinbajo, governors, President of World Trade Organization, will be among key participants of Africa Trade Consortium (ATC) in Abuja, Nigeria. The Africa Trade Consortium (ATC), the first edition of an event the forum is organising will be hosted at the Sheraton Hotel, Abuja, Nigeria from October 21 – 22.
The forum, which is expected to attract more than one thousand participants within and outside Nigeria, will be held under the Theme “Africa Round Table for Promoting investments and Trade Relations, Long Lasting Business Cooperation within the Continent.” According to the organizers, other event’s key participants will include, Africa Development Bank, Term President of the African Union, Chairperson of the African Union Commission (AUC), AUC Commissioners, AfCFTA Secretary General, Africa Development Bank (AfDB), and Afreximbank.
Afreximbank approves $200 million for crude pipeline: Uganda presidency (Reuters)
Afreximbank has approved $200 million toward financing of a contested oil pipeline to export Uganda's crude, and is willing to finance construction of a refinery in the east African country, Uganda's presidency said on Monday.
The $3.5 billion pipeline will run from landlocked Uganda's oilfields in the country's west to a port on Tanzania's Indian Ocean coast, but has drawn criticism from environmentalists and European Union lawmakers.
France's TotalEnergies (TTEF.PA), the lead developer of the pipeline, is facing mounting pressure to drop the project or re-route it because of protests over potential harm to the environment and livelihoods of local communities.
Togo seeks new standards for food and agricultural products (Farmers Review Africa)
Through its agency for the promotion and development of agropoles (Aprodat), Togo seeks to adopt new standards for food and agricultural products.
The consultant picked will assess all legislative, regulatory, and institutional texts, good practices, and existing guides, related to animal production and processing. They will also identify and recommend draft legislative and regulatory texts, standards for implementing farm equipment, specifications, and guides to good agricultural and processing practices applicable to the poultry, fish, and vegetable sectors (rice, sesame, peanuts, and soybeans), in Togo.
African trade and integration
Reprioritisation needed as African growth slows (Engineering News)
Global headwinds are slowing Africa’s economic growth as countries continue to contend with rising inflation, hindering progress on poverty reduction, the World Bank’s latest Africa’s Pulse, a biannual analysis of the near-term regional macroeconomic outlook, indicates.
It adds that the risk of stagflation comes at a time when high interest rates and debt are forcing African governments to make difficult choices as they try to protect people’s jobs, purchasing power and development gains.
“What is most worrisome is the impact of high food prices on people struggling to feed their families, threatening long-term human development. This calls for urgent action from policymakers to restore macro-economic stability and support the poorest households while reorienting their food and agriculture spending to achieve future resilience,” says World Bank chief economist for Africa Andrew Dabalen.
Get the full report here, or the press release summary here.
Mantashe says that Africa's oil and gas resources can help accelerate continent's energy security (IOL)
Mining, energy, and petroleum ministers from African nations and the oil industry are attending the Africa Oil Week in Cape Town — a week that drives agreements, transactions, and investment possibilities.
Speaking at the opening of the week-long event, South Africa’s Minister of Mineral Resources and Energy Gwede Mantashe said that the ongoing global geopolitical confrontation taking place in Eastern Europe has proven to be detrimental to developing economies.
Mantashe says that Africa’s oil and gas resources can help accelerate and guarantee the continent’s energy security and drive regional economic development through the processing and beneficiation of petroleum products.
Webinar: Presentation of African Economic Outlook 2022 to Asian Audiences (AfDB)
What: Presentation of the African Development Bank African Economic Outlook 2022: Supporting Climate Resilience and a Just Energy Transition in Africa to Asian Audiences
Who: The African Development Bank Group
When: Friday, 21 October 2022; Time: 8:00-10:00 AM GMT | 13:30-15:30 PM (India Standard Time) | 16:00-18:00 PM (China Standard Time) | 17:00-19:00 PM (Japan/Korea Standard Time)
Where: Virtual (Click here to register (link is external))
The Asia External Representation Office (PEXT) and Macroeconomic Policy, Forecasting and Research Department (ECMR) of the African Development Bank Group will co-organize a webinar to present the African Economic Outlook (AEO) 2022 to Asian Audiences on 21 October 2022. The African Economic Outlook is the Bank’s premier flagship report that serves as a tool for economic intelligence, policy dialogue, and operational effectiveness.
Global avocado craze is a business opportunity in Africa (TVP World)
Farmers in Kenya are starting to shift from traditionally grown maize to avocados because of their better prices and yields. One such farmer, Albert Gumo, started his avocado journey just over a month ago and has already had two successful harvests.
Kenya is now Africa’s largest producer of avocados exporting about 80,000 tonnes annually. The country ships produce to Europe, the Middle East and also trades with other African countries including Egypt and South Africa and.
The country has also ventured into the Asian market in August this year, becoming the first African country to export fresh avocados to China.
AIIM commits $150m to create pan-African cold chain logistics platform (IPE Real Assets)
African Infrastructure Investment Managers (AIIM) has set up a pan-African cold chain logistics platform with the acquisition of a cold storage operator from Oceana Group for $46m (€40m).
CCS, Southern Africa’s leading cold store operator, has been in existence for over 50 years. The company currently operates about 100,000 pallets of storage across six facilities in Johannesburg, Cape Town and Walvis Bay, Namibia. Damilola Agbaje, AIIM’s investment director, said the cold chain logistical infrastructure sector is underdeveloped, and in places non-existent, across Sub-Saharan Africa and the investment diversifies AIIM’s current portfolio into a high-growth and high-impact area.
Kenya Aims To Deepen Trade Ties With Uganda (EABW News)
Kenya will be selling its key export products in Uganda during the ongoing Uganda International Trade Fair that will run from 3rd to 10th October 2022.
The Kenya Export Promotion and Branding Agency (KEPROBA) charged with promotion of exports and country branding is spearheading Kenya’s participation at the Trade Fair.
“Uganda remains Kenya’s number 1 trading partner and participating in this trade fair will give us an opportunity as a country to penetrate deeper in this market especially with our emerging export products,” said Kenya Export Promotion and Branding Agency CEO, Dr. Wilfred Marube.
Fintechs, Investors and Regulators Gather in Cape Town for the 8th Edition of Africa Fintech Summit (The New Dawn Liberia)
Fintech stakeholders from across Africa and the world will converge in Cape Town, South Africa, for the 8th Africa Fintech Summit, from November 2-4, 2022. The prestigious conference billed as Africa’s premier fintech event will be hosted at the Cape Town International Convention Centre (CTICC).
Over the past five years and seven editions, the Africa Fintech Summit is a fintech ecosystem-building initiative by bringing the world’s attention to Africa’s rapidly growing fintech sector, fostering intra-African and continental partnerships, and providing a launch pad for innovative and impactful financial services solutions. Voted the most engaging event of the World Bank Spring Series, the Africa Fintech Summit is hosted twice a year, each April in Washington D.C. during the spring meetings of the World Bank Group and each November in a different African city, with the most recent editions hosted in Addis Ababa, Ethiopia, Lagos, Nigeria, and Cairo, Egypt.
Afreximbank Trade Finance Seminar Opens in Kampala (inspenonline)
Kampala, Uganda, 4 October 2022 – The 2022 Afreximbank Trade Finance Seminar (ATFS2022) and Factoring Workshop opened on 3 October in Kampala, Uganda. The three-day programme of presentations, panel discussions, interactive sessions and workshops focuses on managing the challenges of trade finance in the context of increased global economic uncertainty and the opportunities offered by the African Continental Free Trade Agreement.
In her Keynote Address, Mrs. Kanayo Awani, Afreximbank Executive Vice President, Intra-African Trade Bank, explained that the 2022 Afreximbank Trade Finance Seminar, which is being held for the first time in a face-to-face setting since the onset of the COVID-19 pandemic in 2020, was geared towards building participants’ skills to handle the increased demand for trade finance following the entry into force of the African Continental Free Trade Area and to address the challenges of financing transactions in the face of increased global economic uncertainty.
“This year’s Trade Finance seminar is designed to, among others, briefly refresh our understanding of the current crisis and its implications for our dear continent, introduce many of Afreximbank’s crisis containment programme, as well as programmes to accelerate trade development and expansion in Africa, while reminding us of the essential credit and compliance risk mitigation tools to mitigate the impact of these crisis on our various institutions,” Mrs. Awani said.
Global economy
Supply Chain Latest: Bloomberg Trade Tracker Shows Boom Is Over (Bloomberg)
Sandwiched between the US-China trade war and today’s gloomy landscape, these past two years will enter history books showing both the peak strength and the painful drawbacks of global goods trade.
The recent turn for the worse is punctuated by the positioning of 10 primary gauges on the Bloomberg Trade Tracker, all of which currently sit below their averages, with four of those in “below-normal” territory. (Click here to see the latest readings)
As services spending comes back in earnest, and supply chains continue to be tangled by a myriad of logistics and labor problems, goods trade is increasingly hobbled. Soaring inflation and rising global recession risks don’t help matters.
Dip in demand from China, Italy may have hit Indias merchandise exports (Business Standard)
A decline in external demand from countries, such as China, Bangladesh, and Italy, is driving down India’s merchandise exports that could have led to exports contraction in September for the first time in 19 months. Disaggregated data available till August showed, among top 50 export destinations of India, shipments contracted to 19 and 17 economies in July and August, respectively. In contrast, exports had declined only to six among the top 50 destinations in June.
Among other countries to which cumulative exports have contracted during the April-August period include Singapore (-22 per cent), Hong Kong (-15.15 per cent), Japan (-6.8 per cent), Vietnam (-19.7 per cent), Poland (-5.2 per cent), and Russia (-24.4 per cent).
The World Trade Organization (WTO) in its latest goods trade barometer pointed to stagnating global trade growth. The volume of world merchandise trade plateaued with year‐on‐year growth slowing to 3.2 per cent in the first quarter of 2022, down from 5.7 per cent in the fourth quarter of 2021. WTO has projected 3 per cent growth in volume of global merchandise trade in 2022 compared to 9.8 per cent growth in 2021. “Uncertainty surrounding the forecast has increased due to the ongoing conflict in Ukraine, rising inflationary pressures, and expected monetary policy tightening in advanced economies,” it added.
Non-Durable Goods Merchant Wholesalers Global Market to Reach $23.49 Trillion by 2026 at a CAGR of 13.8% (GlobeNewswire)
The global non-durable goods merchant wholesalers market is expected to grow from $17491.23 billion in 2021 to $19241.45 billion in 2022 at a compound annual growth rate (CAGR) of 10.0%. The non-durable goods merchant wholesalers market is expected to grow to $23497.28 billion in 2026 at a compound annual growth rate (CAGR) of 13.8%.
The use of analytics in the wholesale trade market enhances efficiency by anticipating the future demand of the customer. Predictive analytics uses past data to predict future events. Some of the applications where wholesale trade companies use predictive analytics are to project customer profitability, model business scenarios, and improve marketing campaigns.
Click here for more information about this report.
Ukraine's foreign minister pledges to export grain to Africa (The Washington Post)
Ukraine’s Foreign Minister Dmytro Kuleba promised that his embattled country will do all it can to send more grain to Africa as he began his tour this week of the continent in Senegal.
Ukraine will be sending “boats full of seeds for Africa,” Kuleba said after meeting with Senegal’s president and foreign minister in Dakar on Monday.
“We will do our best until the last breath to continue exporting Ukrainian grain to Africa and the world for food security,” Kuleba said at a joint press briefing with his Senegalese counterpart, Aissata Tall Sall.
Related News
tralac Daily News
Local news
Brand SA to host the 6th Annual Nation Brand Forum aimed at rebuilding the economy (BizNews)
This year’s Nation Brand Forum will be held from the 4th to 6th of October under the theme “an inclusive partnership to rebuild the economy and drive the nation’s competitiveness”. The theme aims to foster collaborative partnerships between business stakeholders who contribute to growing the economy of the country and help position South Africa as an attractive investment destination. The three-day event will consist of a youth symposium, roundtable side-events with various stakeholders, including the media, and private sector open plenaries, focusing on key drivers of trade, investment and sustainability.
The forum will also host spotlight sessions on best practices on nation branding, youth empowerment and development, as well as how to leverage opportunities presented by the newly established African Continental Free Trade Area (AfCFTA).
Somalia Receives $58 million in World Bank Financing to Develop Regional Transport Infrastructure, a First in Decades (India Education Diary)
The World Bank approved a $58 million International Development Assistance (*IDA) grant to help lay the foundation for the future development of Somalia’s transport infrastructure. Somalia will develop a pipeline of projects and establish the capacities to plan for, implement, and manage the sector.
The Somalia – Horn of Africa Infrastructure Integration Project will benefit from an additional $5 million investment from the Horn of Africa (HoA) Initiative Multi-Donor Trust Fund which seeks to foster economic trade and integration in the Horn. The project will contribute to the overarching objective of the HoA Program Series of Projects which is to enhance connectivity among the HoA countries and access to seaports; facilitate domestic and regional trade and economic integration; and improve road safety.
Women Economic Assembly to bring together private sector in SA (Devdiscourse)
The second Women Economic Assembly (WECONA) is expected to bring together the private sector, including businesswomen, government, and civil society to transform the economic landscape in South Africa.
WECONA, which is held for the second time this year, will take place in Pretoria on 5 and 6 October 2022.
The assembly will be held under the theme, 'Unlocking gender-responsive value chains for a resilient economy', with a focus on showcasing how the public and private sectors have implemented their commitment towards gender transformation in industry value chains.
Energy, commodities imports deepen Morocco's trade deficit (The North Africa Post)
Morocco’s trade deficit deepened 56% to 215 billion dirhams ($20 billion) up to August amid soaring prices of refined energy products, wheat and ammonia in the international market.
Energy imports increased 128% to 103 billion dirhams in the first eight months this year, partly because Morocco imports all of its refined gas and fuel oils, the foreign exchange office said.
Overall, imports increased 43% largely outweighing exports which also rose 37%.
Kenya 'effectively' lifts ban on genetically modified crops (The Associated Press)
Kenya’s new president says the Cabinet has “effectively” lifted the country’s ban on openly cultivating genetically modified crops, reversing a decade-old decision as the East African country struggles with food security and a deadly drought.
“Open cultivation and importation of White (GMO) Maize is now authorized,” the presidency statement said Monday, after years of concerns in Kenya and much of the African continent over the safety of genetically modified foods.
Earlier this year, the United States via its trade representative’s office criticized Kenya over its ban and the effects on U.S. agricultural exports to East Africa’s commercial hub. The ban also affected food aid, the office asserted in its annual report published in March.
SA presents array of investment areas from manufacturing to pharmaceuticals (Devdiscourse)
Trade, Industry and Competition Minister, Ebrahim Patel, has opened the 9th session of the South Africa-Saudi Arabia Joint Economic Commission (JEC) and the South Africa-Saudi Arabia Trade and Investment Forum in Pretoria.
The forum aims to provide South African and Saudi Arabian companies with a strategic platform to engage on bilateral trade and investment opportunities in both markets, while simultaneously affording them access to senior decision-makers and stakeholders.
Patel told the forum – which was attended by delegations of business people from both countries – that South Africa presents an array of investment areas, from manufacturing to pharmaceuticals.
African trade and integration
EAC to set up Diaspora Desk to facilitate the Diaspora Community to invest and trade in the region (EAC)
Tanzania, 3rd October, 2022: The East African Community (EAC) is setting up a Diaspora desk that will focus on facilitating East Africans living in the diaspora to invest and trade in the region.
The Secretary General was speaking during the East Africa 17th Annual Trade and Investment Conference, organized by the East Africa Chamber of Commerce in Irving, Texas – USA. The meeting saw hundreds of East Africans residing across the USA and East African-focused investors, converge to explore areas of investment and deliberate on solutions to overcome investment and trade challenges.
The diaspora community highlighted a lack of trust in local financial institutions as one of the challenges deterring investment in East Africa. Dr. Mathuki responded by urging them to establish financial institutions such as an EAC diaspora bank, located in one EAC’s Partner States, where they can access credit and transact business.
New report outlines how digital finance can drive women’s economic empowerment in Africa (UNECA)
Addis Ababa, 3 October 2022 (ECA): A new report reveals persistent barriers in the digital finance sector that limit women’s economic empowerment in Africa, while recommending policy responses to overcome them.
Commissioned by the United Nations Economic Commission for Africa (ECA), the latest edition of the biennial African Women’s Report was published today. The report analyses the digital finance ecosystem in Africa to examine all its components and how they impact women’s economic prospects.
The report outlines 10 policy responses for governments to consider in ensuring their national digital ecosystem supports, not challenges, women’s economic empowerment.
ECOWAS trains port stakeholders on Maritime and Port Safety and Security standards in West Africa (ECOWAS)
Within the framework of the 2020-2024 Priority Action Plan to eradicate Terrorism in the ECOWAS Area, in particular in its component 4 relating to the strengthening of border management and security controls at land, air, sea and river, and of the Action Plan for the implementation of the ECOWAS Integrated Maritime Strategy (SMIC), the ECOWAS Commission and the Ports Management Association of West and Central Africa (PMAWCA/ AGPAOC) have developed technical cooperation activities and capacity building and tools for stakeholders in the maritime and port safety and security system.
In this context, the ECOWAS Commission is organizing training on “the International Code for the Security of Ships and Port Installations (ISPS) and the upgrading of ports to enhance maritime and port safety and security. in West Africa”. This training will take place at the PMAWCA/AGPAOC Professional Training Center (CFP), located in Cotonou, Benin, from October 3 to 14, 2022.
African sub-sovereign government leaders urged to take ownership of the AfCFTA (African Export-Import Bank)
Abuja, 3 October 2022 – The second edition of the African Sub-sovereign Governments Network (AfSNET) conference, held on 30 September 2022 in Abuja, Nigeria, unanimously called on African sub-nationals to play their full role in facilitating the implementation of the African Continental Free Trade Area (AfCFTA).
While commending Afreximbank and NGF for “demonstrating innovative thinking by taking the AfCFTA to the grassroots”, H.E. President Muhammadu Buhari said the AfSNET initiative, “if properly harnessed, is a significant step for Africa to begin carving its own niche in the global value chain, from the constituent units up.”
“This complements broader programmes such as the African Continental Free Trade Area, which remains one of the most strategic pan African agenda to deliver inclusive and sustainable development,” he said, calling upon the leaders of African Sub-Sovereign Governments to accelerate their involvement in facilitating the implementation of the AfCFTA.
Afreximbank launches academy for skilling businesses (New Vision)
The Executive Vice President of the Intra-African Trade Bank (INATB), Kanayo Awani, has expressed optimism about the newly launched first Africa Academy aimed at building skills of the business community within Africa.
The training programme is provided jointly by the International Trade Centre (ITC) and Afreximbank and is designed to prepare African enterprises to take maximum advantage of intra-African trade and the African Continental Free Trade Area (AfCFTA).
Addressing the press on the sidelines of a three-day Afreximbank Trade Finance Seminar 2022 (ATFS2022) which opened in Kampala Uganda, Awani stressed that the academy will offer efficiency, quality and certification of trained members.
77th UN General Assembly meetings stress key African Development Bank priorities: climate finance, job creation, and food insecurity (African Development Bank)
The African Development Bank had several productive engagements around its strategic priorities at the just concluded 77th United Nations General Assembly (UNGA) meetings in New York.
African Development Bank Group President Dr Akinwumi Adesina led the bank’s delegation to the meetings and played an active part in discussions leading to an international declaration to end malnutrition and stunting.
The bank’s engagements reflect its strategic priorities as African countries, which it supports, struggle with the lingering impacts of the Covid-19 pandemic, as well as food and fuel price spikes arising from Russia’s war in Ukraine, and climate change.
Global economy
Trade and Development Report 2022 (UNCTAD)
The world is headed towards a global recession and prolonged stagnation unless we quickly change the current policy course of monetary and fiscal tightening in advanced economies.
Supply-side shocks, waning consumer and investor confidence and the war in Ukraine have provoked a global slowdown and triggered inflationary pressures.
All regions will be affected, but alarm bells are ringing most for developing countries, many of which are edging closer to debt default. Climate stress is intensifying, with mounting loss and damage in vulnerable countries who lack the fiscal space to deal with disasters, let alone invest in their own long-term development.
WTO, WCO publication looks at how new technologies can assist cross-border trade (World Trade Organization)
A joint publication entitled “Study Report on Disruptive Technologies” was launched by WTO Director-General Ngozi Okonjo-Iweala and World Customs Organization (WCO) Secretary-General Kunio Mikuriya at a virtual event today (3 October). The publication reviews how so-called disruptive technologies, such as blockchain, the Internet of Things, artificial intelligence and machine learning, can help to improve the conduct of international trade and border management.
The report, a follow-up to an edition published by WCO in 2019, notes the benefits of disruptive technologies for Customs administrations and international traders. However, there are still opportunities for broader implementation, the report underlines, highlighting the challenges and opportunities associated with the adoption of these technologies.
The publication can be found here.
Path uncertain for US-Taiwan free trade deal despite Hill support (Roll Call)
It’s assumed that deepening Taiwan’s economic ties first to the West and then the global economy through trade deals with the United States, as well as with other Asian countries and Europe, would significantly raise the stakes for China. The thinking is that could convince Beijing against any military attack on the self-governing island because of the likely risk of being punished by Western sanctions.
Given how dependent on foreign trade China continues to be, particularly for imports of natural gas, food and advanced technologies like semiconductors, it is hoped that fear of a lasting and severe sanctions response would act as a deterrent on Beijing and indefinitely preserve the status quo in cross-strait relations.
The Biden administration is essentially pursuing parallel regional trade talks, with the U.S.-led Indo-Pacific Economic Framework for Prosperity – launched earlier this year with participation from 14 countries including Japan, South Korea, and Australia – and with a separate bilateral trade path for Taiwan.
Experts say decoupling from China unrealistic (Xinhua)
BEIJING, Oct. 4 (Xinhua) -- Given China's economic resilience and pivotal position in the global economy and supply chains, the "decoupling from China" rhetoric is not only unrealistic, but also short-sighted, experts have said.
As the world's second-largest economy, China plays a significant role in the global supply chains and will be crucial to the world's economic recovery, said Wichai Kinchong Choi, senior vice president of Kasikornbank, a leading Thai bank.
Arab Federation for Digital Economy and Distichain sign MOU (ZAWYA)
The Arab Federation for Digital Economy and Distichain signed a memorandum of understanding in the presence of His Excellency Dr. Ali M. Al Khouri, Chairman of the Federation.
The agreement aims to adopt digital technology solutions to enable export activities and support digital transformation in the areas of cross-border digital trade and between companies, with the aim of providing more support and strengthening the free trade agreement in the Arab region and linking with a wide international network of trading partners and logistics service providers. This agreement also aims to enable flexible connectivity between supply chains and promote the growth of small and medium-sized enterprises.
Trade, IT, education: Ukraine and Senegal intensify cooperation (Ukrinform)
Minister of Foreign Affairs of Ukraine Dmytro Kuleba held talks with Minister of Foreign Affairs of Senegal Aïssata Tall Sall as part of the first tour of African countries in the history of Ukrainian diplomacy.
"Within the framework of the African strategy, Ukraine deepens relations with the countries of the African continent. It is symbolic that the first stop on my African tour was Senegal, an important country that currently presides over the African Union. Together with my colleague Aïssata, we agreed today to open a new chapter of mutually beneficial cooperation between Ukraine and Senegal," Kuleba said. In this context, the ministers discussed steps to intensify cooperation in the fields of IT, digitalization, cyber security, trade, and education. Senegal’s FM thanked the Government of Ukraine for organizing the safe evacuation of Senegalese students from war zones.
USAID (U.S. Agency for International Development) announced it will partner with the Federal Trade Commission (FTC) to launch a new initiative that will help protect consumers and increase competition in countries across Africa. This initiative will strengthen legal and regulatory frameworks and the institutional capacity to ensure that the benefits of the digital economy are not undermined by anti-competitive, unfair, or deceptive practices.
Robust frameworks for competition and consumer protection are indispensable foundations for partner countries seeking to promote inclusive economic growth, sustain economic competitiveness, promote gender equality and equity, support resilient democratic institutions, and strengthen the rule of law.
Redefining Trade Relations between Nigeria and China Stanbic IBTC Bank (TechEconomy.ng)
Stanbic IBTC Holdings, a member of Standard Bank Group has continued to serve as a connecting link in facilitating trade transactions between Nigerian and Chinese importers, thereby fostering international trade.
As part of its efforts to boost trade relations between the two nations, Stanbic IBTC Holdings, through its banking subsidiary has developed several solutions towards boosting favourable business deals and trade relationships between Nigerian business owners and their Chinese counterparts.
One of the initiatives through which Stanbic IBTC Bank has been redefining trade relations between Nigeria and China is the ACTS propositions, aimed at allowing African enterprises to explore new markets, expand their customer base and create a mutually beneficial relationship between the two countries.
EU agri-food imports rise by 31% within one year (Agriland)
The total value of EU agri-food trade has increased by 24% within one year, reaching €34 billion in June 2022, according to the latest edition of the monthly EU agri-food trade report.
Exports reached €19.5 billion, while imports were valued at €14.5 billion, which reflects a 19.5% and a 31% increase respectively. Trade surplus stood at €5.1 billion, up 33% from May.
Related News
tralac Daily News
Local news
Trade Statistics for August 2022: South Africa records surplus of R7.18 billion (South African Revenue Service)
The South African Revenue Service (SARS) has released trade statistics for August 2022 recording a preliminary trade balance surplus of R7.18 billion. These statistics include trade data with Botswana, Eswatini, Lesotho and Namibia (BELN). The year-to-date (01 January to 31 August 2022) preliminary trade balance surplus of R163.36 billion is a deterioration from the R325.06 billion trade balance surplus for the comparable period in 2021. Exports increased by 11.9% year-on-year whilst imports increased by 44.9% over the same period.
The R7.18 billion preliminary trade balance surplus for August 2022 is attributable to exports of R175.37 billion and imports of R168.19 billion. Exports decreased by R1.83 billion (1.0%) between July and August 2022 and imports increased by R15.80 billion (10.4%) over the same period.
SA hosts women economic assembly (SAnews)
The second Women Economic Assembly (WECONA) is expected to bring together the private sector, including businesswomen, government and civil society to transform the economic landscape in South Africa. WECONA, which is held for the second time this year, will take place in Pretoria on 5 and 6 October 2022.
The assembly will be held under the theme, ‘Unlocking gender-responsive value chains for a resilient economy’, with a focus on showcasing how the public and private sectors have implemented their commitment towards gender transformation in industry value chains.
The theme of WECONA 2022 talks to South Africa’s economic recovery, which is at risk of becoming a futile exercise if women are deliberately excluded from participating in value chains in various sectors.
Namibia’s domestic debt increases to 68.2 percent (News Ghana)
Namibia’s debt stock rose over the year to the end of June 2022 where the total as a percentage of GDP stood at 68.2 percent, accounting for a yearly increase of 0.4 percentage points, the Bank of Namibia said Friday. In a statement in the bank’s September quarterly bulletin, Strategic Communications and International Relations Director Kazembire Zemburuka said the yearly increase was driven by a rise in the issuance of both Treasury Bills (TBs) and Internal Registered Stock (IRS).
Namibia’s total debt as a percentage of gross domestic debt (GDP) breached the Southern African Development Community (SADC) benchmark of 60 percent in 2021 where at the end of June 2021, this figure stood at 63.2 percent.
He said the stock of international reserves rose to a level of 2.56 billion U. S. dollars at the end of the second quarter of 2022, equivalent to 5.1 months of import cover, mainly due to inflows over the past year in the form of an IMF Special Drawing Rights allocation, asset swaps, and revaluation gains. The level of foreign reserves further increased to 2.6 billion U. S. dollars at the end of August 2022, partly due to revenue and revaluation gains of the Southern African Customs Union (SACU).
Zimbabwe to pay wheat farmers in U.S. dollars to preserve value of their earnings (CGTN Africa)
The Zimbabwe government will pay wheat farmers in U.S. dollars to preserve value of their earnings, according to Minister of Lands, Agriculture, Fisheries, Water and Rural Development, Dr. Anxious Masuka. Dr. Masuka’s announcement comes two weeks after it emerged that the country projects to harvest 380,000 tonnes of wheat in the ongoing harvest season, which would be the first time ever the country’s production of the cereal exceeds demand. “The wheat flour producer price is US$620 per tonne for ordinary wheat, which gives the farmer a 15 percent return on investment and the flour producer price is US$682 per tonne for premium grade wheat,” The Herald newspaper quotes Dr. Masuka.
The Zimbabwe government has been seeking ways of plugging the holes left by a disruption in food imports, partly caused by the ongoing conflict in Ukraine.
Zimbabwe: Sanctions increase cost of doing business (The Herald)
ILLEGAL sanctions imposed on Zimbabwe by the West hamper the free movement of funds across international borders, and therefore can raise the cost of doing business, or at least make investors worry about the cost, businesspeople have said. Zimbabwe has been grappling with sanctions imposed by the West in 2001 in retaliation for the land reform programme that sought to correct colonial land ownership imbalances.
The country would have moved forward faster without these financial sanctions and been able to have access to multilateral finance while the private sector would have had access to more banking finance.
In an interview, Zimbabwe National Chamber of Commerce chief executive Mr Takunda Mugaga said sanctions affect investor appetite as some of them fear an extra cost of doing business. “They (sanctions) increase both perception and country risk, which in turn raises cost of credit as well as demand for cash business, with credit sales being frozen, movement of funds by business across the borders is also difficult than ever before. “For a business to transact with an international bank, it is difficult if not impossible and in the process, increasing the cost of doing business,” said Mr Mugaga, who is an economist.
Euro zone cuts spend on Kenya flowers as inflation bites (Business Daily)
Consumers in Europe have cut spending on Kenyan flowers amid a cost of living spike in the western world that has forced households to drop essential purchases such as food and drinks, threatening thousands of jobs locally. Inflation in the Eurozone — a group of 19 countries which use the euro as a common currency — rose to a fresh record of 10 percent in September from 9.2 percent in the prior month.
The decline in exports is a blow to Kenya as the industry faces the sharpest earnings fall in a decade. Horticulture is a major source of foreign exchange for Kenya alongside tea, tourism and remittances and the industry employs over 150,000 workers.
“We were optimistic at the beginning of the year and we were looking at full recovery in 2022 because we had seen good signs in 2021 in terms of sales,” KFC chief executive Clement Tulezi told the Business Daily. “But when the Russian war came, we were subjected to high prices of fuel and other inputs coupled with inflation in Europe and weakening of the currency we use for international trade.”
Europe is the largest market for Kenya’s fresh farm produce, accounting for 70 percent of the country’s cut flower exports.
Rwandan exporters incur losses as euro, pound dip (The New Times)
Rwandans exporting products to European countries are incurring losses as a result of the declining value of the euro and the British pound (£), The New Times has learnt.
“The crashing of UK [pound] and euro against a dollar and local currency has negatively affected the contracts previously established by exporters in the business,” Robert Rukundo, Managing Director of Almond Green Farm Ltd, a local horticulture export company, told The New Times. “This comes at a time when we have issues of high freight charges and high fuel cost that has also increased cost of operations,” added Rukundo, who is also the Chairman of Horticulture Exporters Association of Rwanda.
FG assures on Greener, sustainable Maritime industry (The Niche)
The Transport Minister, Mu’azu Jaji Sambo, has said that a greener and sustainable maritime industry is achievable through partnership and a determination to achieve synergy in the formulation and implementation of a roadmap for the maritime sector in Nigeria.
The Minister who made this known in Lagos at the 2022 World Maritime Day Celebration with the theme “New Technologies for Greener Shipping” stated that as the world transits to higher levels of artificial intelligence and green technology, the need for a new technology to drive the maritime sector has not only become necessary but imperative as nation. “As a country, we must not lose out on the future race which will require a workforce of new skills and competencies of maritime institutions particularly the Maritime Academy of Nigeria, Oron and the Nigeria Institute of ⁿTransport Technology to begin to recalibrate the curricular to address this requirements of the future.
“New Technologies for Greener Shipping” Sambo, said “Comes with the responsibility of training and retraining our workforce in order to prepare them for the inevitable innovation and transformation of the future that will certainly impact on jobs and skills”.
Ships offload N4.87trn cargoes at Lagos, Tincan, Onne ports (New Telegraph)
An average of 1,000 ships with 30 million tonnes of goods offloaded N4.87trillion cargoes at Lagos, Tincan Island and Onne ports in the first three months of year 2022. Most of the imports, which came from China, Netherlands, Belgium and United States include motorcycles and cycles fitted with auxiliary motor, petrol fuel, capacity, used vehicles with diesel or semi-diesel engines, of cylinder capacity, and machines among others. Of the N4.87 trillion cargoes, Lagos Port handled ₦3.59 trillion of the total imports as Onne Port accounted for goods valued at ₦865.93 billion or 14.67per cent, while Lagos Free trade zone recorded ₦416.99billion or 7.07per cent of total imports.
Also within the period, Foreign Trade Statistics (FTS) that showed that N1.51trillion of the cargoes were from China, noting that ships ferried N618.7billion from Netherlands, while cargoes from Belgium and United States were N563billion and N337,3billion respectively. The exports goods accounted for 92.28per cent of total exports in all the ports in the period.
Nigeria-China bilateral trade hits $12bn – Envoy (Businessday)
Chinese Ambassador to Nigeria, Cui Jianchun says that the China-Nigeria trade volume has recorded a great rise of 7.1 per cent in the past one year to hit $12billion. Cui made this known in Abuja during the Nigeria-China Cultural week, one of the activities lined up to commemorate the 2022 National day celebration of Nigeria and China. He said that Nigeria has continued to be China’s number one trading partner in Africa as he strongly urged Nigeria to produce more commodities to be exported to China to ensure balance of trade.
The envoy also expressed optimism of a bigger economic boom in Nigeria with the ongoing projects like the Lekki deep sea port, Zungeru Hydroelectric Power projects, Dangote refineries amongst others set to be commissioned in 2023.
“Trade really is important not only to improve the quality of life, it is very important for the country’s economy. Trade is very important for development. “So we are encouraging more businesses in Nigeria to produce a lot of commodities to export to Chinese market and China are the number one consumer market.
DRC rare earth minerals to accelerate economic growth (The Exchange)
The Democratic Republic of the Congo (DRC) joined the East African Community (EAC) in March 2022 in a development that has been largely feted as positive. This decision was reached by the heads of state of the other member countries. The BBC in a report that covered the development said that although the country had officially become a member of the regional bloc, not much would change right away. This is because at that time in March 2022 Congolese lawmakers still had to ratify the decision.
DRC’s motivation for joining the bloc was and remains to improve trade and political ties with its neighbours that constitute the bloc.
Since the advent of the transition to net zero rare earths, minerals like lithium and cobalt have become en-vogue. These minerals are part of what are collectively known as critical minerals. They have earned this moniker because of their importance in helping the world transition to clean renewable energy and the departure from fossil fuels. The DRC has vast deposits of rare earth minerals whose applications are just as vast.
The Council adds in article they published titled, “Why Cobalt Mining in the DRC Needs Urgent Attention”, demand for cobalt will increase fourfold by 2030 because of the electric vehicle boom. More than 70% of the world’s cobalt is produced in the DRC through methods that can be best described as artisanal. This means that there is scope for more meaningful minerals development of the cobalt mining industry in the DRC.
African trade and integration
Afreximbank Trade Payment Services (AfPAY) launched (Afreximbank)
African Export-Import Bank (Afreximbank) is delighted to announce the commercial launch of Afreximbank Trade Payment Services – or “AfPAY” – an intervention designed to facilitate the settlement of international trade on open account terms on behalf of identified African financial institutions and their clients. Afreximbank developed the product specifically to address the banking challenges confronting African economies due to the withdrawal of many international banks from the continent – exits attributable to stringent regulatory and compliance requirements as well as costs.
AfPAY, which has been in a pilot phase for over a year now, currently facilitates over half a billion dollars in monthly payments across our member states. Notably, Zimbabwe has participated actively in the pilot, with twenty of its financial institutions using the solution. Mr Denys Denya, Executive Vice President, Finance & Administration, Afreximbank, commented: “African banks have, for at least a generation, been dogged by the limited access to dependable banking partners willing to support their cross-border trade transactions. We are pleased to introduce into the market a product which transforms this dynamic, which we believe will accelerate cross-border trade on this continent, connecting Africa with an international financial eco-system that will accelerate its development and economic growth.”
Key to unlocking Africa’s potential (Monitor)
Africa is on the cusp of an economic transformation. By 2050, consumer and business spending on the continent is expected to reach roughly $16.1 trillion. The coming boom offers tremendous opportunities for global businesses – especially US companies looking for new markets. But unless African policymakers remove existing barriers to regional trade and investment, the continent’s economy will struggle to reach its true potential.
Two major trade agreements – the African Growth and Opportunity Act (Agoa) and the African Continental Free Trade Area (AfCFTA) – will make it easier for African countries to trade with one another, and with the United States. Together, the agreements promise to remove longstanding impediments to industrialisation.
Value creation is critical to Africa’s economic transformation. In 2014, manufactured goods accounted for about 41.9 percent of the trade between African countries, compared to 14.8 percent of their exports to the rest of the world. Greater regional integration will provide Africa with a larger supply market, which will accelerate manufacturing specialisation and make African producers more competitive globally. More robust manufacturing industries will provide jobs for low-skilled workers – particularly those not currently integrated into the formal economy.
The real game changer is the AfCFTA. By removing tariffs for a wide range of products across the continent, it will lower production costs and shift foreign direct investment toward manufactured goods, while also reducing transit costs and shortening supply chains – major benefits in a globalised economy.
Uganda in fresh bid to ease the doing of business in EAC (Capital FM Kenya)
Uganda is lobbying for increased efforts to make doing business within the East African Community region easier. The country, in particular, will advocate for the harmonization of non-tariff barriers within the region in order to facilitate trade between the six-country block. Non-tariff barriers, among other things, impede free movement of goods and services within the region and have been blamed for the slow realization of the EAC dream.
Uganda, a landlocked country, is in the process of establishing Special Economic Zones (SEZs), and Ugandan Members of Parliament and senior government representatives have been touring Kenya to learn best practices in SEZ operationalization and to lobby for friendlier terms of doing business.
EAC Losing Investment Deals Due To Low-quality Financial Data (Taarifa News)
External investors looking for merger and acquisition deals in East Africa are facing challenges when conducting due diligence and valuing potential targets due to low-quality financial data, potentially costing the region valuable foreign direct investment inflows. Advisory firm Deloitte says in a macroeconomic outlook publication that underdeveloped target companies — in terms of revenue and profitability—are also forcing investors into a narrow band of sectors such as energy, fast-moving consumer goods and financial services, and leaving other small businesses facing a capital drought.
“Key challenges experienced in due diligence comprise tight deadlines, inadequacy in the skills in the finance function and low quality of financial information. Inadequate due diligence presents the risk of mis-assessment of the going concern of the target, resulting in an uninformed merger or acquisition,” said Deloitte in its East Africa Macroeconomic Outlook report.
“Although the East African region through the economic bloc EAC has been trying to implement a harmonised approach to regulation of M&A through the EAC competition regulations of 2010, the countries have yet to fully implement the regulation. This poses a challenge, particularly to cross-border deals,” said Deloitte.
Erratic weather, global crises push cost of food to record high levels (The East African)
Governments in East and Horn of Africa have rolled out food aid programmes to communities hit hard by inconsistent weather patterns and global crises that have pushed food costs beyond the reach of many. This week, Kenya launched a relief food programme for communities trapped in a cycle of four failed agriculture seasons, and Uganda had already been distributing relief food to people in Karamoja regions.
UN Office for the Co-ordination of Humanitarian Affairs (Ocha) is predicting the likelihood of a fifth failed crop season. Uganda, which has generally enjoyed above average food production from its arable fertile soils, having two harvest seasons annually, is now increasingly facing food challenges due to less erratic and less predictable rains and unprecedented prolonged dry spells.
The Horn of Africa, including parts of Kenya, is facing the worst drought with at least 20 million people in immediate need of food. This includes Somalia, Ethiopia, Sudan, Uganda and South Sudan, and Djibouti and Eritrea
As countries struggle to get cheaper grain from traditional sources like Russia and Ukraine, world prices and growing world demand is making the situation harder in the region.
Food, fuel price rise hands EA tough inflation lessons (Business Daily)
In mid-June, as Kenya battled maize scarcity and related production costs, the Tanzanian government asked its grain traders to get an export permit before shipping maize out. Though an unpopular decision, as it cut supplies to Kenyan grain millers and other East African countries who had ordered stocks from Tanzania, the policy helped Tanzania to keep inflation in check, exposing the rest of the region to expensive food.
Even before the dust settled, towards the end of June, Tanzania increased the export permit costs by 93 percent. In this directive, Dar es Salaam authorities increased the cost of acquiring export permits from the previous Sh27,000 per truck to Sh52,000. This meant that Tanzanian traders had to increase prices of their commodities, a scenario that discouraged export trade.
Kenya posted a 62-month high of 8.5 percent inflation in August, which rose to 9.2 percent in September, as the region races to double-digit inflation rates driven by runaway costs of consumer products, including cooking gas, fuel, food and cooking oil.
During the month, Kenyans experienced the sharpest rise in the cost of living recorded in more than five years, with the crisis largely hitting the energy, food, housing and transport sectors amid a weakening shilling.
Economies in the region have been on a steady decline owing to, among other factors, political instability, rainfall shortage that has resulted in reduced agricultural yields, and the aftermath of Covid-19.
First African Emissions Reduction Platform to Begin Trading (Bloomberg)
Africa’s first verifiable emissions reduction platform, which uses a public decentralized ledger to track emission reductions, will start trading its first tokens this quarter. The platform, known as CYNK, will use the Hedera Hashgraph ledger, and trade tokens generated by Tamuwa, Kenya’s largest biomass company. It is also in talks to trade emissions reductions credits from a company that plans to practice regenerative agriculture on 50,000 hectares (123,550 acres) of land in the East African country and a blue carbon project. Regenerative agriculture refers to farming practices that help store carbon while blue carbon is stored by ocean and coastal systems that would otherwise be released into the atmosphere.
Global economy
Global food crisis demands support for people open trade bigger local harvests (IMF Blog)
Food insecurity has been rising since 2018. Even before Russia’s invasion of Ukraine, the increasing frequency and severity of climate shocks, regional conflicts and the pandemic were all taking their toll, disrupting food production and distribution, and driving up the cost of feeding people and families. The situation took an even more dramatic turn with the war in Ukraine. This pushed the prices of food and fertilizers higher still—hurting importers and prompting several countries to impose export restrictions.
The impact of the food shock is felt everywhere. The suffering is worst in 48 countries, many highly dependent on imports from Ukraine and Russia—mostly low-income countries. Of those, about half are especially vulnerable due to severe economic challenges, weak institutions, and fragility.
“For some time now, the combination of climate shocks, the pandemic and regional conflicts has disrupted food production and distribution, driving up the cost of feeding people and families. Russia’s war in Ukraine has pushed the price of food and fertilizers even higher—hurting food importers and some exporters. As a result, a food crisis is spreading around the globe with a record 345 million people whose lives and livelihoods are in immediate danger from acute food insecurity.
“The IMF, working with partner institutions, is actively contributing to the international response to food insecurity, notably by providing policy advice and financial assistance. The newly established Food Shock Window will provide an additional line of defense after grants and concessional financing.
Public Forum session highlights importance of youth engagement in trade and peacebuilding (WTO)
The Director-General noted that more than a third of the world’s 1.8 billion young people live in fragile and conflict-affected states, where opportunities for education and jobs are extremely limited. She stressed that trade can play an important role in breaking the vicious circles of poverty, frustration and conflict in these countries and in increasing opportunities for young people. DG Okonjo-Iweala added: “Poor countries that depend heavily on exports of primary commodities are typically at higher risk of conflict. … To the extent we are able to make trade an instrument to drive growth and diversification, we would be giving peace a better chance.”
How shipping can contribute to a more sustainable future (Modern Diplomacy)
Tiny internet-connected electronic devices are becoming ubiquitous. The so-called Internet of Things (IoT) allows our smart gadgets in the home and wearable technologies like our smart watches to communicate and operate together. IoT devices are increasingly used across all sorts of industries to drive interconnectivity and smart automation as part of the ‘fourth industrial revolution’.
The fourth industrial revolution builds on already widespread digital technology such as connected devices, artificial intelligence, robotics and 3D printing. It is expected to be a significant factor in revolutionising society, the economy and culture. These small, autonomous, interconnected and often wireless devices are already playing a key role in our everyday lives by helping to make us more resource and energy-efficient, organised, safe, secure and healthy.
There is a key challenge, however – how to power these tiny devices. The obvious answer is “batteries”. But it is not quite that simple.
Full text: Ursula Owusu-Ekuful’s speech at 2022 ITU conference (Myjoyonline)
Closing the digital divide to facilitate equitable connectivity, which is vital to support the economic transformation of Ghana, is our primary objective. We are of the opinion that we can transform Covid19 from a global crisis to an opportunity through digital technology.
Our Government has also introduced initiatives to narrow the digital divide and empower citizens to embrace the use of ICT. We are implementing a Rural Telephony project to connect over 3 million people. These previously unconnected people now have equal access to the innovations introduced by the Government in Ghana’s digital transformation journey. They include:a) mobile money interoperability which has brought over 15 million previously unbanked persons onto the financial digital platform; b) The National Identity Card as a single purpose e ID for all digital transactions to prevent identity theft and cyber fraud.c) Digital skills development offered through a nationwide network of Digital Transformation Centres to benefit over 20,000 Women Entrepreneurs, Master Trainers, Youth and Children in Coding Clubs over the past 12 months.d) focused interventions to reduce the gender digital divide and create opportunities for the youth through the Girls in ICT program and nurturing of new businesses at Digital Incubation Centres.
The Crisis Facing Development – Speech by World Bank Group President David Malpass before the 2022 Annual Meetings (World Bank)
The developing world is facing an extremely challenging near-term outlook shaped by sharply higher food, fertilizer, and energy prices, rising interest rates and credit spreads, currency depreciation, and capital outflows. Under current policies, global energy production may take years to diversify away from Russia, prolonging the stagflation risk discussed in the World Bank’s Global Economic Prospects report from June 2022.These shockwaves have hit development at a time when many developing countries are also struggling in other areas: governance and rule of law; debt sustainability; climate adaptation and mitigation; and limited fiscal budgets to counteract the severe reversals in development from the COVID-19 pandemic, including in health and education.
Facing these overlapping crises, a pressing danger for the developing world is that the sharp slowdown in global growth deepens into a global recession, as the World Bank discussed in a September report. Global GDP per capita in 2021 barely exceeded its pre-pandemic level, but many developing countries have not reached their pre-pandemic per capita income levels. The U.S. has experienced contractions in GDP in the first two quarters of 2022. The sharp decline in asset prices worldwide has consequences for weakened corporate and pension balance sheets and could dampen new investment. China’s economy has slowed sharply due to COVID-19-related lockdowns, pushing the World Bank’s 2022 forecast for China down to 2.8% from 5% in April. Europe is confronting the sudden spike in energy prices caused by Russia’s invasion of Ukraine and market rigidities. The weakness of the euro and high inflation increase the likelihood of a European recession and further constrain the eurozone’s longer-term growth outlook.
Looking beyond this sharp cyclical downturn, developing countries face the risk that these trends in advanced economies –inflation, slow growth, lower productivity, the drain on global energy supplies, and higher interest rates – persist beyond 2023. If current fiscal and monetary policies become the new “normal,” it implies heavy absorption of global capital by advanced governments, prolonging the under-investment in developing countries and hampering future growth.
Embedding Development in WTO Plurilateralism: A Commonwealth Developing Country Perspective (Commonwealth iLibrary)
Trade is widely accepted as an essential tool for economic growth and sustainable development, and has helped lift millions of people out of poverty (World Bank, 2018). It can also reduce the marginalisation of developing countries in the global economy, especially that of least developed countries (LDCs), small vulnerable economies (SVEs) and countries in sub-Saharan Africa (SSA).Most of these countries depend on trade for their growth and development, especially on exports in a narrow range of goods and services.
This issue of Trade Hot Topics reflects on some of the key trade and development issues of interest to LDCs, SVEs and SSA countries. It then highlights the need to explore possibilities for prioritising their development interests, individually and collectively, in a changing global economic and trading landscape, by transforming plurilateral discussions of interest to them into more openended and inclusive multilateral discussions.
Targeted policies needed to boost investment in climate change fight (UNCTAD)
Ahead of the next UN climate change conference (COP27), UNCTAD has underscored the growing urgency of shoring up investment to combat the existential threat facing humanity. A special edition of UNCTAD’s Investment Policy Monitor released on 29 September calls for effective measures to mobilize private sector investment and foreign direct investment (FDI) in key sectors related to climate mitigation and adaptation.
“Innovative ways and means are needed to foster public and private partnerships, improve the enabling policy frameworks and build capacity for preparing pipelines of bankable and impactful projects in developing countries,” the report says.
Previous estimates indicate that annual climate adaptation costs in developing countries could reach $300 billion in 2030 and, if mitigation targets are breached, as much as $500 billion by 2050.
Related News
tralac Daily News
Local news
Coastal communities call for greater consultation on oil and gas exploration (Engineering News)
Large- and small-scale fishers and communities on the Wild Coast of South Africa request that, at the very least, more scientific research be done on the effects of exploration activities, and that various stakeholders undertake greater engagement about such activities to gain a better understanding of any potential impacts of the activities.
This was the message conveyed by community leaders who came together at the second precolloquium dialogue on August 25 at the Cape Town International Convention Centre to discuss the possible “coexistence of the upstream petroleum and fishing industries in South Africa”.
A joint statement by various community and environmental organisations describes the engagement as an attempt to “pacify and weaken” the clear message small-scale fishing communities have been sending to the DMRE and Pasa against the “pillaging” of their coastal waters. “Oil and gas development and fishing activities cannot coexist,” reads the statement.
The Mauritian government, through its finance ministry, has opened its doors and invited South African businesses and the government to strengthen trade relations and invest in the East African island country.
Following the impact of the Covid-19 pandemic, which had the world’s economies reeling from the closure of businesses, Africa was once again on its own when developed countries shut their doors, leaving the continent vulnerable, said Dr Renganaden Padayachy, Mauritian Minister of Finance, Economic Planning and Development.
Padayachy stated that African companies needed to take advantage of trade agreements to develop the continent and grow its economy, and African countries should ensure that the continent’s minerals were processed in Africa rather than being processed outside the continent.
Sustaining Growth in Rwanda Requires Building Resilience to Climate Shocks (World Bank)
Climate change could be consequential for Rwanda’s growth given the reliance of the economy on climate sensitive sectors. The Rwanda Country Climate and Development Report (CCDR) launched today highlights key policies and interventions that are needed in Rwanda to strengthen climate resilience in the context of the country’s commitments under the Paris Agreement and its development priorities.
‘No GMOs in Zambia’ – stakeholders (Farmers Review Africa)
THERE is a misunderstanding between state and non-state actors on the planned revision of the 2002-Genetically Modified Organisations (GMOs) policy in Zambia with the latter insisting on the retention of the ‘traditional agroecology’ to avert insecurity and protect Zambia’s food sovereignty.
In recent years, there have been attempts by the Government to review the GMO (National Biotechnology and Biosafety Policy) at the expense of the traditionally accepted farming systems already in place which are ‘free from any modification’.
The inducing of the modified organisms have induced devastating effects on the soil, affecting yields from year to year-thus affecting farming profitability, remain hazardous to human life and the environment while further threatening the country-known to produce “non GMO maize and other produce fail to compete on export markets.
Ghana sovereign debt crisis tip of African countries loan mess (The Exchange)
Ghana’s sovereign debt woes did not come as a surprise to many. The tell-tale signs were always there, like writing on the wall. The Ghana sovereign debt debacle is one episode in a series of emerging African markets and low-income countries caught in a perfect storm. The perfect storm is made of rising global interest rates, a strengthening United States dollar and excessive borrowing by African countries and those that can be classified as emerging economies.
Ghana appears to have become a victim of its success and, dare it be said, a bit of hubris. The country is struggling under an unsustainable debt load in 2022 when it successfully floated a US$ 3 billion Eurobond in 2021. Ever since the dawn of multiparty democracy, the West African country has been a stable jurisdiction, which has helped it to attract consistently high levels of foreign direct investment from investors who view the country as a gateway into West Africa together with Nigeria.
Perhaps most profoundly, the Africa Continental Free Trade Area (AfCFTA) opened its secretariat office in Accra. According to the number of participating countries, this development alone put Ghana at the centre of the largest free trade area. On the face of Ghana should not be struggling with its finances if its record with FDI is any indicator of the country’s economic prospects. In 2007 discoveries of oil were made off its coast. Ghana has three major offshore oil and gas fields: Jubilee, Sankofa, and Twenenoa Enyenra Ntomme.
The oil and gas fields have attracted big-name producers like Kosmos Energy and Tullow Oil. Other producers have left the west African country, citing the adoption of ESG principles and net zero goals.
Ghana’s export to Burkina Faso increased to $276 million in 2021 (Modern Ghana)
Ghana’s exports to Burkina Faso have increased to $276 million in 2021 from $264 million in 2020. Meanwhile, its imports from Burkina Faso amounted to $50 million over the same period. Similarly, the Export Potential Map projection based on demand and supply, market access conditions and bilateral ease of trade showed that the total value of the 51 leading products from Ghana to Burkina Faso amounts to 8.4 billion dollars. Mr Clement Osei-Amoako, President of the GNCCI, said out of this amount Ghana was exporting only 33 per cent, representing 2.8 billion dollars.
Mr Osei-Amoako said this during the opening of a five-day Economic and Trade Promotion Days (JPEC) event in Accra. The event was on the topic: “Strengthening Economic and Trade partnership between Burkina Faso and Ghana: Which synergies of actions in the current context of the implementation of African Continental Free Trade Area (AfCFTA).”
‘Nigeria May Lose Out of AfCFTA Benefits Due to Gaps in Standardisation’ (This Day)
Stakeholders in the agri-business sector have expressed concerns that the lack of a standardisation policy for the country may deny Nigeria the much-expected benefits of the African Continental Free Trade Area (AfCFTA) agreement whose implementation had already commenced. They believed that as actual trading among African countries is about to begin in earnest, Nigerian SMEs seemed unprepared to take advantage of the opportunity presented by the agreement because they are still lagging behind global best practices.
The stakeholders at a one-day consultative workshop on the development of the national Agricultural Commodity Standards Grading System (AgCSGS) and Policy Framework, said a lot still needed to be done in terms of the quality of products and services SMEs supply, particularly agricultural commodities.
In an interview with THISDAY, Director-General, Nigeria Agri-Business Group (NABG), Mr. Manzo Maigari, said compliance and alignment with the global benchmark for standards and trading is currently lacking among Nigerian businesses. He said, “But in modern business and trade today, people want to be sure of the quality, the sanitation, and the hygiene of what you are selling and if they cannot, be sure that you cannot have access to their markets.
“We can play locally and manage and do whatever we want to do but if we want to sell internationally, if we want to be competitive in agriculture globally, then we must comply and align ourselves to global benchmark for standards and trading. And this is what does not exist currently in Nigeria.”
FG targets 242% rise in export of services to N6.5trn in 4yrs (Vanguard)
The Federal Government is set to feast on the blossoming digital economy to improve Nigeria’s balance of payments position with a projection of 242 percent rise in the export of value-added services to N6.5 trillion in 2025 from N1.9 trillion recorded in 2021. This is even as it expects the nation’s current account balance within the period to increase by 632 percent to N3.2 trillion (2025) from N436.9 billion (2021).
The projection is contained in the final draft of the 2023 – 2025 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF & FSP) prepared by the Budget Office of the federation for the National Assembly’s endorsement.
African trade and integration
Africa trade report: Many challenges, and few opportunities (Global Trade Review)
After a better-than-expected post-pandemic rebound last year, economic growth in Sub-Saharan Africa is expected to stall in 2022, dropping from 4.6% in 2021 to 3.8%, according to the International Monetary Fund (IMF), as the global shock triggered by Russia’s invasion of Ukraine sets back the region’s prospects.
“Disruptions to global trade and supply chains – primarily in agricultural, fertiliser, and energy sectors – following the Russia-Ukraine conflict and the corresponding sanctions on trade with Russia have tilted the balance of risks to Africa’s economic outlook to the downside,” says AfDB president Akinwumi Adesina in the multilateral institution’s Africa Economic Outlook Report 2022.
“The impact is, however, likely to be asymmetrical. On the one hand, net oil- and other commodity-exporting African countries could benefit from higher prices of their exported commodities. On the other, the impacts on net energy-, food-, and other commodity-importing countries are concerning as higher food and energy prices will exacerbate inflationary pressures and constrain economic activity.”
AfCFTA: CIBN, PAPSS seal pact to resolve trade payment obstacles in Africa (Daily Sun)
As part of strategies to resolve payment-related barriers in the actualization of the African Continental Free Trade Area (AfCFTA), the Chartered Institute of Bankers of Nigeria (CIBN) has signed a Memorandum of Understanding (MoU) with Pan- African and Payment Settlement System (PAPSS).
The MoU was signed between both organizations at the recently concluded CIBN’s 15th annual Banking and Finance Conference which held in Abuja with the theme ‘‘Repositioning the Financial Services Industry for an Evolving Glocal Context”.
A communiqué released by CIBN at the end of the two-day conference, noted that Focus on improving trade by resolving payments-related barriers is a fundamental requirement for the success of the AfCFTA which has been highlighted by the PAPSS.
Tunis declaration calls for inclusion of labour provisions in the African Continental Free Trade Area agreement (IndustriALL Global Union)
The declaration was made at the ITUC-Africa Trade Union Continental Forum on the AfCFTA which was held under the theme: Ensuring decent work in the framework of the AfCFTA implementation – towards the inclusion of the positions of the trade unions in the AfCFTA processes.
According to the declaration a “space for social dialogue must be created at the national, regional and continental level for African citizens, and their socio-economic groupings — that is workers including those of the informal economy, farmers, traders, producers, enterprises, civil society, private sector – to participate effectively in a democratic and transparent process and ensure the reflection of their concerns and views in the negotiations.”
AfCFTA designed to lift Africa’s people out of poverty – AU Commissioner (Modern Ghana)
Dr Monique Nsanzabaganwa, Deputy Chairperson, African Union (AU) Commission, says the design of the African Continental Free Trade Area (AfCFTA) would offer Africans an enabling environment to raise revenues and access resources in an economically integrated continent. This, she said, would lift Africans out of poverty.
She noted that it is critical to foster an inclusive and sustainable socio-economic development agenda that is anchored on the people who are to benefit from such development. “It is also important to ensure the effective implementation of supporting policies and programmes,” Dr Nsanzabaganwa stated at AfCFTA Conference on Women and Youth in Trade in Dar es Salaam, Tanzania, a document made available to the Ghana News Agency showed.
For women and youth to take advantage of opportunities offered by the AfCFTA Agreement, Dr Nsanzabaganwa said they must have the capacity to access financial products and other factors of production to build and scale up their businesses in order to meet the demands of an AfCFTA market. “Financial inclusion is intrinsically linked to trade and is essential to the success of the AfCFTA. Indeed, for women and youth to access funds to grow and scale up their businesses, they must operate within the formal financial system.”
Africa risks losing out on trade as rich countries cement relationships with trusted partners (The Conversation Africa)
Over the past few years, the world’s supply chains have been strained and disrupted by the COVID pandemic, Russia’s invasion of Ukraine, and rising geopolitical tensions. These started with the US-China trade war and then intensified following the war in Ukraine.
In response to the cumulative economic and security fallout that has ensued, some advanced countries are now ramping up efforts to divert their supply chains away from countries that are not like-minded and that don’t have shared common values.
This new supply chain strategy is called “friend-shoring.” Advanced countries are creating friend-shoring alliances which are, in turn, reshaping our global economy.
These shifts have adverse implications for Africa. The approaches to reconfiguring supply chains currently unfolding threaten to heap more stress on a continent already weighed down by multiple crises.
Africa stands to lose out because the current reshaping of supply chains is not intended to shift trade, investments and jobs towards African trade partners. Rather it’s got to do with efforts by the EU and US to insulate their supply chains from being disrupted for geopolitical reasons by less trusted.
Why Africa seeks a greater role on the global stage (DW)
The African Union has long championed reforms for the UN Security Council. The AU argues that the UN Security Council, with its five permanent members — the US, Russia, China, France and the UK — does not offer the continent a voice in global affairs.
Africa has been pushing for a permanent seat at the UN Security Council since 2005, Emmanuel Bensah, Deputy Executive Director, African Continental Free Trade Area (AfCFTA) Policy Network Communications Expert for the African Union, told DW. “This is one of the reasons why the African Union set up its own peace and security council modeled after the UN Security Council,” Bensah said, adding that the UN has and will always be the global multilateral player. “Therefore, it is important [for the AU] to have a voice there [at the UN Permanent Security Council], the AU expert on free trade said, adding that the AU needs to lobby outside the continent to garner more support for a seat at the UN permanent Security Council.
Africa Is On The Path To Digital Transformation Of Renewable Energy (Forbes)
In Africa, we are already seeing the devastating effects of climate change, even though the continent produces less than 4% of the world’s carbon emissions. Temperatures on the continent have risen faster than the global average, resulting in tropical storms in Madagascar and Mozambique, flooding in South Africa, and one of the worst droughts ever seen in the Horn of Africa. According to the Mo Ibrahim Foundation, 40 million people in Africa could be pushed into extreme poverty by 2030 due to the ripple effects of climate change. We need to act now to prevent further damage and suffering.
According to EY, 92 percent of oil and gas firms plan on investing in AI or will do so in the next two years. This is a massive shift in the way that these companies operate, and it will have a significant impact on the climate. The African population’s access to affordable energy is the most pressing and immediate priority. The need for energy services throughout Africa will proliferate; making sure it remains affordable is urgent. Achieving universal access to affordable electricity by 2030, as shown in the Sustainable Africa Scenario, requires adding 90 million people to the power grid each year–triple the rate of recent years. In fact, According to the International Energy Agency, global renewable energy capacity broke a new record in 2021 with the addition of 295 gigawatts of power and is expected to reach 320 gigawatts in 2022.
As a result, we are seeing the beginnings of a green energy revolution taking place across Africa.
President Obasanjo stated, “I will challenge this forum to really work out what should be the factors that our leaders should consider, what should be the factors that Africans in the private sector will consider, and what will be the factors that foreign investors will need and consider to be able to power Africa in terms of our development economically and socially.”
Following President Obajsanjo, Director General of the World Trade Organization, Dr. Ngozi Okonjo-Iweala who also spoke at the event, said that Africa could not industrialize or have a solid continental manufacturing base without energy, “At the same time, the world is being buffeted by numerous manmade and natural exogenous shocks that are difficult for policymakers to manage. These shocks hit a continent struggling to manage simultaneous health, debt, and energy crises with limited fiscal space. But we must not lose sight of the opportunities of this crisis. Africa is abundantly endowed with energy resources from gas to renewables, all waiting for investment. High global energy prices make new gas investments more evident, especially as a transition mechanism of will. Even as we strive towards renewables, let us focus on mutually beneficial energy investments for Africa and the world by taking up the opportunities to harness the continent’s gas and renewable energy resources.”
EAC farmers call for removal of trade barriers | Daily News (Daily News)
THE envisioned African Continental Free Trade Area (AfCFTA) could as well turn into a pipe dream if East African Community (EAC) partner states fail to trade within themselves.
Chief Executive Officer with the Eastern Africa Farmers Federation (EAFF) Stephen Muchiri warned here recently that the African Union (AU) broker could remain far-fetched if member states don’t encourage intra-trade. Mr Muchiri observed that some EAC partner states weren’t fully embracing intra-regional trade, even when they had ratified the agreement. “It is sad to note that we don’t seem to trade among ourselves and this is detrimental to the prospects of AfCFTA,” argued Mr Muchiri.
According to the East African Business Council (EABC) Intra EAC trade currently stands at 12 per cent. This was far from the 78 per cent achieved by the European Union (EU) and the 48 per cent registered by the Southern African Development Community (SADC). “We cannot take advantage of AfCFTA, if we fail to trade among ourselves,” said the EAFF CEO.
Mr Muchiri took issue with a number of Non-Tariff Barriers (NTBs), which he said was hindering trade growth within the regional economic bloc.
Investment opportunities galore as new economic zone opens in Tanga (IPPmedia)
Speaking at the launch of Mkinga Economic Zone in Dar es Salaam on Tuesday, Deputy Minister of Trade and Industry, Exaude Kigahe, said the new zone is expected to create jobs for Tanzanians especially the youth. He said the economic zone in Tanga region is expected to be a game changer in the economic development and partnership in Africa as it acts as a gateway to more than 18 land-locked countries in the region.
According to Shady El Zeki, the Zworld’s board member, the project, worth 300m US dollars (699 billion shillings) in total, is the first smart economic zone in Africa spanning on 650 acres and leading the sustainable and economic development in Africa. The project features world-class technologies like Artificial Intelligence (AI), E-commerce and digital business (virtual company) making it unique in the region.
“The project aims to create vital infrastructure for Mkinga to enhance the economy and to build the foundation for developments taking into consideration the agreements between African nations such as AfCFTA, EAC, SADC, AGOA and many other agreements,” he said. He said so far five investors have shown interest to inject money in the project coming from different nations including Brazil, Egypt, Tunisia, Blugaria, GCC, Philippines, and India.
Tanzania, DR Congo rank poorly on digital life quality: report (The East African)
The Democratic Republic of Congo (DRC) and Tanzania are among the countries with the worst digital quality of life globally, occasioned by slow internet speed, high costs of internet, and other factors. The 2022 Digital Quality of Life Index, produced by Dutch network company Surfshark, reveals that DRC citizens have the least digital wellbeing, out of the 117 countries surveyed, with Tanzania ranking 107.The index measures the quality or speed and affordability of internet in the countries along with the availability and strength of electronic infrastructure, security, and government.
Building resilience to climate change is of paramount importance in Africa: ARC (Reinsurance News)
Ahead of COP27, the African Risk Capacity (ARC) outlines the importance of parametric insurance on the African continent, highlighting the need for further collaboration with more developed nations.
RC provides parametric insurance services to African Union member states and farmer organisations to pool disaster-related risk across Africa and transfer it to international risk markets. Since 2014, it has paid out $124,3m in claims from eight risk pools, transferred $1bn risk and covered 30m people per year.
In the past year, ARC paid out $59.6m and covered 18m individuals in countries like Mali, Malawi and Madagascar, and expects the impact will be even greater in 2022.
It adds that insurance products help to build resilience by supporting the implementation of national disaster risk management policies and strategies, particularly the promotion of financial resilience to climatic hazards.
ARC insists that there’s much more work to do to achieve the organisation’s vision of extending climate risk financing to cover the estimated 200m vulnerable people who bear the brunt of climate change impacts on the continent. “We need broader collaborations between private and public sector if we are to reach even more people and close the protection gap,” “As we prepare for COP27, key discussion points must be how these partnerships can build a resilient continent able to respond to extreme weather events and, in doing so, protect the economic development gains made over the last few years. The problem is so big that all of us have a role to play,” Ndlovu concludes.
African Emergency Food Production Facility launched in Gambia (Farmers Review Africa)
African Emergency Food Production Facility (AEFPF) has been launched in Gambia. Minister for Agriculture, Hon. Dr. Demba Sabally performed the launch ceremony. The AEFPF is an additional financing that follows the joint meeting of the ministers of Agriculture and of Finance of the African Union on the African Emergency Food Production plan in which The Gambia participated.
The facility is being supported by the African Development Bank (AfDB) to The Gambia through the Rice Value Chain Transformation Project (RVCTP). Speaking at the launching ceremony, Dr. Sabally informed the gathering that the government of The Gambia is taking major strides to transform the Agriculture sector in addressing food security and meeting the nutritional needs of its people.
“Despite these efforts, The Gambia’s high dependence on imports for staple and key commodities has deepened the country’s vulnerability to external shocks such as the effect of Covid-19 and the impact of the Russia-Ukraine crisis on the food supply system” he stressed.
Global economy
The Trade Agenda Today by Ngozi Okonjo-Iweala & Anne O. Krueger (Project Syndicate)
Neither the breakdown of multilateralism nor the rise of the digital economy has made international trade and its central governing body any less important. An open, transparent, rules-based trading system remains crucial for driving economic development and addressing global problems like climate change.
From rising populism and the COVID-19 pandemic to Russia’s invasion of Ukraine, this has already been an extraordinarily difficult decade for global trade and the principles, rules, and multilateral institutions that sustain it.
The war affects all multilateral organizations, and the WTO is no exception. Since member states cannot ignore the conflict, they will need to make their views known as they see fit, within the WTO and elsewhere.
With right tools and policies, women can break the glass ceiling in trade — DG Okonjo-Iweala (WTO)
To overcome barriers that keep women out of international markets, Dr Okonjo-Iweala called for “active trade policies that ensure non-discrimination and that help women access global value chains” and for “scaling up supply side support to women-owned businesses” so they can make their way into male-dominated sectors. These range from science, finance and technology, to engineering, mathematics and aerospace. “Trade remains a tool to empower women. Trade can propel entire economies forward”, she stressed.
Noting that the most profitable sectors in international trade are male-dominated, Pamela Coke-Hamilton, Executive Director of the International Trade Centre (ITC), called for increased efforts to boost women’s technical expertise and increasing their access to land, finance and machinery. She stressed: “If half of the global population is systematically excluded from participating equally in the economy, how are we to recover in a sustainable fashion?”
Banks risk widening trade finance gap as they push for green label (S&P Global)
As banks expand their sustainable trade finance offerings to meet growing corporate demand, they face a challenge to ensure that stricter environmental, social and governance criteria do not worsen the trade finance gap by cutting off access to financing for companies that need it most.
“We need an honest debate about this. Yes, it could potentially widen the trade finance gap,” Rebecca Harding, CEO of trade data provider Coriolis Technologies, told S&P Global Market Intelligence on the sidelines of the International Trade and Forfaiting Association’s annual conference on Sept. 8. “But, equally, if trade finance is doing its job properly, what it could do is create a transition.”
HSBC Holdings PLC, one of the world’s largest trade finance banks, said it has seen an “unprecedented surge in demand” for sustainable trade finance products, particularly in the wake of COVID-19.
Related News
tralac Daily News
Local news
EU, Namibia engage in an in-depth discussion on a several topics of shared and common interest (Namibia Economist)
The 2022 Session of the EU-Namibia Political Dialogue took place in Windhoek on Wednesday, 28 September. The agenda allowed the two parties to engage in an in-depth discussion on several topics of shared and common interest, ranging from Namibia-EU relations, peace and security, climate change; trade, and economic cooperation, among others. A special focus was given to Namibia’s industrialisation aspirations in order to enhance economic growth and development, while addressing socio-economic challenges, such as youth unemployment, and social inequalities. The parties discussed the implementation of the Economic Partnership Agreement, as well as support for the implementation of the African Continental Free Trade Area (AfCFTA).
Deliberations also focused on a planned Partnership on Sustainable Critical Raw Materials Value Chains and Renewable Hydrogen. Upon conclusion, the Partnership will give rise to a new chapter of economic cooperation between Namibia and the EU, including the private sector, promoting industrialization, the beneficiation of critical raw materials which are strategic for energy transition, and the development of a green hydrogen economy in Namibia.
Manufacturers’ costs dilemma (Business Daily)
Manufacturers are facing a hard choice over whether to pass on to consumers higher production costs brought about by electricity and fuel price increases, at a time when high inflation is already eroding demand for their goods.
Three weeks ago, the Energy and Petroleum Regulatory Authority (Epra) raised power costs by 15.7 percent, reversing the January cuts by the former President Uhuru Kenyatta administration. Fuel, forex and inflation adjustments were also increased, leaving industrial users facing hefty jumps in their power bills this month. The Kenya Association of Manufacturers has however said that its members are making an effort not to pass through all these costs to consumers, alive to the fact that when prices increase, demand inevitably decreases.
Earlier, some of the manufacturers in the fast-moving consumer goods segment had told the Business Daily that they were only able to pass on about 60 percent of their additional costs to consumers, partly out of concerns over loss of market share.
Dar, Mombasa in race to attract more cargo business (The East African)
Dar es Salaam and Mombasa, the largest ports in East Africa, are in a race to attract more sea bound cargo and imports into the region. While Dar projects to handle 30 million tonnes by 2030, its competitor, Mombasa, is undergoing expansion to increase its capacity to 47 million tonnes.
These emerged during a visit by the board members of the East African Business Council (EABC) to Tanzania’s largest port, which last year handled 17.03 million tonnes. “We envision to boost capacity to 30 million tonnes by 2030,” said the director general of Tanzania Port Authority (TPA) Plasduce Mbossa during the Friday visit.
TPA has set up a One Stop Centre at the Dar port housing import and export agencies to boost capacity. The logistics centre will improve the Dar es Salaam port performance, he said during a briefing to board members led by chairperson Angela Ngalula.
Tanzania, UAE sign trade deal to remove double taxation (The East African)
Tanzania and the United Arab Emirates (UAE) have signed an agreement to remove double taxation hurdles in trade between the two countries. The Agreement on Avoidance of Double Taxation and Prevention of Fiscal Evasion on Income Taxes was signed in Dubai by Finance ministers Mwigulu Nchemba of Tanzania and Mohamed Bin Hadi Al Hussain of the UAE on Wednesday. It touches on areas including taxation of income from individual and institutional business activities, air and sea transportation operations, immovable properties, interest rates, dividends, natural resource use, workforce salaries, research payments, pension and social security payments, students’ bursaries and sports matters.
Mr Nchemba acknowledged that double taxation had long been a “point of frustration” for investors and other traders from both UAE and Tanzania, resulting in a lot of lost business opportunities for both countries that can now be better tapped.
Nigeria’s intra-African trade shrinks further despite AfCFTA (Businessday)
Nigeria’s trade with other African countries amounted to N1.305 trillion out of the N25.84 trillion worth of foreign trade recorded from January to June 2022, data from the National Bureau of Statistics(NBS) have revealed. In the comparable period of 2021, the country’s intra-African trade was worth N1.47 trillion out of the total foreign trade of N21.79 trillion in that period. Also, trade with other African countries in the first six months of 2020 amounted to N1.67 trillion out of N14.55 trillion total foreign trade Nigeria recorded.
Further analysis of Nigeria’s external trade data with the rest of Africa, in comparison to the nation’s total foreign trade in the first half of the year from 2020 to 2022, showed a decreasing trend from 11.5 percent in H1 2020 to 6.7 percent in H1 2021 and 5.1 percent in H1 2022, implying a slow start to the recently signed African Continental Free Trade Area (AfCFTA).
“We are not making much progress with AfCFTA. It is because some countries have ratified the agreement but are yet to domesticate it. Some countries are accusing others of holding the lever at the AfCFTA Secretariat. There are problems with origins and destinations. For now, it is all talk but no actions,” Ade Adefeko, vice president, Olam Nigeria, said.
Infrastructure Devt Needs $3trn In 30 Years – Minister (Leadership)
The minister of Transportation, Mu’azu Sambo, has said that the nation’s infrastructure development requires $3 trillion in 30 years to sustain a robust economic growth.
Sambo who stated this last week in a paper titled, “Financing Nigeria’s Transport Infrastructure,” at the Nigerian Economic Partnership Forum, in New York, United States of America, said that Nigeria’s core infrastructure stock was estimated at 20 to 25 percent of Gross Domestic Product (GDP), according to the National Integrated Infrastructure Master Plan (NIIMP), which makes it necessary for private sector participation.
Speaking on the huge financing demands for such capital-intensive infrastructure development as it is with the sector, the minister said the option would be to turn to models that give opportunities for workable partnerships. His words: “Infrastructure is vital for the long-term growth and competitiveness of countries worldwide. It is however capital intensive as various national governments are facing constraints in developing and funding infrastructure projects. “Likewise, the Nigerian government is increasingly exploring alternative sources of finance for infrastructure development. There are two broad sources of infrastructure financing; government funding, private sector financing.”
Maritime grossly under-explored in Nigeria, stakeholders lament (The Guardian Nigeria)
Stakeholders have described the country’s maritime sector as an overlooked goldmine with its enormous potential to drive economic growth under-explored. According to them, the sector is capable of becoming a key engine of economic development in line with the diversification agenda of the Federal Government, in the face of current global economic uncertainty. They gave the submission at a Port Users’ Conference organised by Maritime Anti-corruption Network (MACN) and the Convention on Business Integrity (CBI) in Lagos, with the theme: “Retooling the Maritime Sector for Stronger Economic Growth.”
The stakeholders said, as an import-dependent nation, it is critical for the government to support and pay more attention to maritime issues and needs to allow it to realise its full potential and contribute meaningfully to the nation’s Gross Domestic Product (GDP).
While delivering his speech titled, “Setting the Tone: The Place of the Maritime Industry in Nigeria’s Economy,” the Executive Secretary, Nigerian Shippers’ Council (NSC), Emmanuel Jime, said the country’s ports are currently classified among the worst ports in the world due to challenges such as; delay in import/export processes, traffic congestion, poor access roads, safety and security concerns, infrastructure deficits and logistics shortcomings.
Trade Ministry reiterates commitment to promoting intra-Africa trade (Myjoyonline)
The Ministry of Trade and Industry has reiterated its commitment to ensuring the promotion of intra-Africa trade on the continent. The Ghana National Chamber of Commerce and Industry (GNCCI), and the Burkina Faso Chamber of Commerce & Industry have launched the ‘Economic and Trade Promotion Days’. The objective of the event is to promote the economic, trade and cultural sectors of Burkina Faso through exhibitions of Burkinabe products; conferences and business meetings in Ghana and vice versa.
Deputy Trade Minister, Nana Ama Dokua Asiamiah-Adjei stated: “We believe that for businesses to thrive in Ghana, our regulations do play a role in how far our business thrive”.
Egypt’s Trade Ministry seeks to improve services provided to industrial community (Daily News Egypt)
Egypt’s Minister of Trade and Industry Ahmed Samir stated that the ministry is seeking to improve the services it provides to the industrial community in terms of issuing licenses and allocating land, in addition to its developmental role in establishing industrial complexes, which number up to 17 complexes in 15 governorates.
Samir also informed the new leadership of the Industrial Development Authority (IDA) while on his visit to its headquarters on Monday of the need to foster more communication with various business organisations to develop common visions that achieve the government’s strategy to bring about targeted industrial development in its true sense.
Cameroon joins Africa Finance Corporation in push toward manufacturing economy (Premium Times)
Cameroon is partnering with the Africa Finance Corporation to create an infrastructure that will help transform the economy into a manufacturing hub from mostly raw mineral exports now, driving job creation, skills transfer and higher export revenue.
Joining as AFC’s 36th member state, Cameroon will be working with the Corporation on key infrastructure to deepen integration, enable import substitution, and develop manufacturing and industrial capacity to account for 40 per cent of GDP, as part of the government’s Vision 2035 programme.
FC, Africa’s leading infrastructure solutions provider, has to date allocated over $300 million to Cameroon to capture value from the nation’s natural resources, which include maize, cassava, cotton, cocoa, oil and gas, as well as energy transition metals such as cobalt and nickel.
Gas, Mauritania’s opportunity to boost economic growth (Atalayar)
Mauritania’s natural gas reserves are attracting the interest of international energy markets. The country recently announced a gas field capable of producing up to 10 million tonnes per year. In total, Mauritania has gas reserves of 100 trillion cubic feet, more than other African countries such as Libya and Egypt.
However, despite its gas wealth, Mauritania does not have sufficient funds to invest in the necessary infrastructure for gas extraction and the construction of liquefaction and storage plants. For this reason, the African nation relies on investments from foreign companies to boost its gas industry. Among the companies operating in the country are US-based Kosmos Energy, France’s TotalEnergies and Britain’s BP and Shell.
Mauritania is trying to attract foreign investors to exploit the country’s great gas potential. Specifically, the government is seeking to develop gas pipelines and port infrastructure to enable the export of liquefied natural gas, which will begin to be produced in 2023.
Liberia Economic Update: Prospects for Inclusive and Sustainable Growth (World Bank)
The World Bank today launched the third edition of the annual Liberia Economic Update with the theme: “Investing in Human Capital for Inclusive and Sustainable Growth”. The Liberian economy experienced strong growth in 2021. After contracting by 3.0 percent in 2020 due to the COVID-19 pandemic, growth recovered to 5.0 percent in 2021.
The rebound was driven by improved external demand, higher prices for Liberia’s main exports, and the resumption of normal domestic activity. Meanwhile, growth slowed in the first half of 2022, even when mining and construction continued to perform well. In agriculture, rubber and cocoa production dropped by 13.5 percent and 27 percent, respectively. In the industrial sector, iron ore, gold, and cement production all increased, reflecting firmer international prices and an uptick in construction activity. However, services growth fell, as reflected in the decline in beverages and electricity production.
African trade and integration
Guinea-Bissau: Country is 44th member of African Continental Free Trade Area (Macau Business)
Guinea-Bissau has ratified the agreement to join the African Continental Free Trade Area, the Guinea-Bissau foreign affairs ministry announced on Wednesday in a message posted on the social network Facebook.
According to the Guinea-Bissau foreign affairs ministry, the “deposit of the legal instrument of ratification” of the agreement took place on 31 August and was attended by the Guinea-Bissau ambassador to the African Union, “thus complying with one of the objectives of the agreement which is to bring all 55 states of the African Union within the Free Trade Area, with a view to providing significant economic and social benefits to the region, increasing income and reducing poverty.
Kenya’s exports first goods under the AfCFTA (The East African)
Kenya exported its first goods under the African the Africa Continental Free Trade Area (AfCFTA) agreement to Ghana on Friday. Kenyan-made Exide batteries landed in the Port of Tema on September 23 in a historic ceremony that marks Nairobi’s formal start of preferential trading under the AfCFTA agreement. A statement from Kenya’s Ministry of Industrialization, Trade and Enterprise Development said the products were to be received by Kenya’s High Commissioner to Ghana, Amb Eliphas Barine.
“Kenya is among six countries selected to participate in the pilot phase of the AfCFTA Initiative on Guided Trade, formulated on realisation that no trading was taking place one-and-a-half years after the launch of AfCFTA preferential trading on 1st January, 2021,” reads a statement from Kenya’s Trade ministry. The other five countries are Cameron, Egypt, Ghana, Rwanda and Tanzania. “The Initiative is a programme to kick-start trade between and among State Parties that have signalled their readiness to commence commercially meaningful relations through the utilisation of AfCFTA Preferences,” the ministry added. The six pilot countries are required to identify products that can access the markets among the pilot countries.
Kenya exports batteries to Ghana in first AfCFTA trading deal (The Exchange)
Experts Deliberate on Greening MSMEs to Harness AfCFTA Benefits (UNECA)
At a session organized by the Economic Commission for Africa (ECA) and the International Trade Centre (ITC) as part of the 2022 World Trade Organization (WTO) Public Forum, experts urged the private sector to seize opportunities brought about by the green transition in Africa. The panel discussion entitled “MSMEs: The Key to Realising Sustainable Gains Under the AfCFTA”, moderated by Mr. Melaku Desta, Coordinator of ECA’s African Trade Policy Centre (ATPC), explored sustainable initiatives to integrate green solutions in Africa’s small businesses.
Panelists also underscored the sustainable gains to be harnessed from green trade alongside the African Continental Free Trade Area (AfCFTA) and called on Micro, Small & Medium Enterprises (MSMEs) to anticipate challenges as businesses seek to integrate green solutions.
Of late, the sustainability and resilience of value chains has assumed greater importance due to the disruptions induced by Covid19 and demand for more sustainable production and trade increased. This was pointed out by Mr. Robert Hamwey, Economic Affairs Officer at the United Nations Conference on Trade and Development (UNCTAD). “I urge the AfCFTA to coordinate Africa and strengthen its capacity to produce its own solar and wind energy to cater to its own needs,” Mr. Hamwey opined.
On the issue of strengthening MSMEs capacities’ to improve their competitiveness in domestic, regional and global markets, Ms. Annalisa Primi, Head of Economic Transformation and Development at the OECD Development Centre, underlined the need to reform the policies that divide the informal and formal sectors, so as to enable the poor to participate in markets and to engage in higher value added business activities.
Joint network lifetime planning and implementation of regional borderless crossings are key tools for the scaling up of integrated regional freight transport and logistics systems in Africa, participants at a conference to highlight the financing gap for African infrastructure heard.
The focus of the one-day conference, organized by the African Development Bank and Transnet on 23 September 2022, was building integrated regional freight systems to boost intra-African trade and Africa’s global trading position. The conference also highlighted the benefits of the African Continental Free trade Area agreement (AfCFTA) to this end.
African Development Bank vice president for Private Sector, Infrastructure and Industrialization, Solomon Quaynor, setting the context for the discussions, emphasized the importance of rail infrastructure to the region’s growth.
“It is absolutely essential that we do not create the largest single free trade area of consumption, but rather one of industrialization where we add value to our natural resources,” he said. The checklist of essentials to ensure growth includes economic corridors, fully established cross-border railways and ports, integrated with industrialization spaces, “more value addition, not just commodity based,” Quaynor said.
“We need to explore various financing models, and we need to think of this differently. For example, we need to finance corridors and not just national railways networks. We need to think PPP to leverage limited public capital, but we have to be aware of the risks that private sector will not bear,” he said.
The ECOWAS Regional Competition Authority (ERCA) and the ECOWAS Commission’s Directorate of Trade organised from 20 to 23 September 2022 in Accra, Ghana, training on competition policy for stakeholders from Member States with the technical and financial support of Expertise France.
The opening ceremony of the training featured three speeches. In his speech, Dr Simeon Koffi, Executive Director of the ERCA, on behalf of the President of the ECOWAS Commission, acknowledged the presence of all the expected national stakeholders and their commitment to the ongoing negotiations at the continental level. He further noted the positive dynamics of developing a competitive framework at national, regional and continental levels, with the harmonisation and adoption of rules in line with the best international standards, a development that the capacity building of stakeholders would consolidate.
Member States of the Economic Community of West African States: eTrade Readiness Assessment (ECOWAS)
The report of the regional assessment on eTrade readiness of Member States of ECOWAS highlights the prerequisites for the growth and development of e-commerce within and between member states. The Regional E-commerce Strategy Development Project was launched in October 2021, by the ECOWAS Commission and the United Nations Conference on Trade and Development (UNCTAD) with funding from the government of the Netherlands.
The ECOWAS eTrade Ready followed UNCTADs eTrade Ready methodology which is designed to identify e-commerce development challenges in developing countries, especially least developing countries. It assesses the state of e-commerce preparedness in countries or regions based on seven (7) policy areas namely: i) e-commerce readiness and strategy formulation ii) ICT infrastructure and services iii) trade facilitation and logistics iv) legal and regulatory framework v) payment solutions vi) skills development and vii) access to finance.
The ECOWAS eTrade ready report notes that most Member States have placed digitalization at the centre of their efforts towards economic growth, and for this, have adopted and are implementing strategies and policies to convert this ambition into results. Unfortunately, there remains a need for deliberate action to extend this digitalization effort and channel it into trade-driving activities that are supportive of e-commerce. The report highlights the need to: Strengthen Trade ministries in ECOWAS Member States on e-commerce development, Enhance trust within the e-commerce ecosystem within and between Member states, Improve monitoring of the e-commerce market, and Foster inclusion.
Senior Officials responsible for Treasury and Energy in the Southern African Development Community (SADC) held a regional workshop in Johannesburg, South Africa, on 19th September 2022 to deliberate on the proposal to develop a Regional Transmission Infrastructure Financing Facility (RTIFF) which is aimed at providing a long-term solution to energy financing challenges within the Region.
Most of the mainland SADC Member States are experiencing insufficient supply of electricity due to frequent breakdown of aging power generation plants; inadequate power generation capacity to meet growing demand; inadequate transmission interconnectors to fully facilitate energy trading between SADC Member States and congested power lines along the main power transfer corridors.
In her opening remarks, Ms. Elsie Salima from the Ministry of Finance and Economic Affairs in Malawi, reiterated that RTIFF was expected to facilitate the implementation of regional transmission projects and corridors, and therefore the outcome of the consultative engagement including financial modelling and priority projects that will support the RTIFF concept would be presented to the SADC Committee of Ministers of Finance and Investment for consideration.
The importance of enhancing interconnection and power trade to increase the reliability of supply and connect three outstanding Member States, namely Angola, Malawi and the United Republic of Tanzania, onto the Southern African Power Pool (SAPP) has been acknowledged by SADC.
Africa Food Prices Are Soaring Amid High Import Reliance (IMF Blog)
Staple food prices in sub-Saharan Africa surged by an average 23.9 percent in 2020-22—the most since the 2008 global financial crisis. This is commensurate to an 8.5 percent rise in the cost of a typical food consumption basket (beyond generalized price increases).
Global factors are partly to blame. Because the region imports most of its top staple foods—wheat, palm oil, and rice—the pass-through from global to local food prices is significant, nearly one-to-one in some countries. Prices of locally sourced staples have also spiked in some countries on the back of domestic supply disruptions, local currency depreciations, and higher fertilizer and input costs.
The Food and Nutrition Security Committee in the Southern African Development Community (SADC) has agreed on common areas of concern that need regional coordination and focus in order to improve food security and nutrition in the Region. The Committee noted that SADC Member States needed to consider transformative food systems to enhance availability and access to diversified foods such as maximising the value chain for fisheries and aquaculture, and there is a need for all Member States to adopt a comprehensive food balance sheet that generates production information on diverse commodities.
The 8th Tokyo International Conference on African Development (TICAD8) was held in the Tunisian capital of Tunis, on August 27 and 28. Prime Minister Kishida, in his opening speech, emphasized the importance of “investment in people,” with “Japan as a partner growing together with Africa,” and expressed his commitment to “invest a sum of US$ 30 billion in public and private financial contributions over the next three years” and to “cultivate 300,000 professionals.”
Based on the results of the two-day discussions, the meeting adopted the Tunis Declaration, which consists of three pillars: 1) Economy: Realizing a structural transformation for sustainable economic growth and social development; 2) Society: Realizing a resilient and sustainable society; and 3) Peace and stability: Realizing sustainable peace and stability. The Declaration confirms the importance of “investment in people,” as well as the importance of multilateralism, respect for sovereignty and territorial integrity, and the pursuit of peaceful resolution of disputes.
Global economy
Public Forum explores role of trade in accelerating transition to a green economy (WTO)
Leading representatives from international organisations, the private sector and academia discussed on 29 September how trade rules can be strengthened to address the environmental challenges the world is facing. At the high-level session on “Delivering a Trade Agenda for a Sustainable Future”, panellists shared their views about possible ways to reinforce partnerships between the various stakeholders involved in ensuring the transition towards a green economy and the role the WTO should play.
Put landmark Fisheries Subsidies Agreement into motion, governments urged at Public Forum (WTO)
“The essential step now is to have the Agreement enter into force, so we need two-thirds of members to deposit their instruments of acceptance. Our Director-General has set the goal of less than a year from the conclusion of the Agreement so that we can begin to experience the positive effects of the Agreement,” Deputy Director-General Angela Ellard, who served as moderator, said at the event titled “The WTO Agreement on Fisheries Subsidies: What Happened at the 12th Ministerial Conference (MC12) and What Comes Next?” The event featured high-level representatives from developed and developing countries, civil society and the WTO Secretariat.
Chair urges members to find common ground on development negotiations after MC12 impetus (WTO)
In the MC12 Outcome Document adopted by ministers at MC12, WTO members reaffirmed the provisions of special and differential treatment (S&DT) for developing and least developed country (LDC) members as an integral part of the WTO and its agreements.
WTO members instructed their officials to continue to work on improving the application of S&DT in the special sessions of the Committee on Trade and Development and other relevant venues and report on progress to the General Council before the WTO’s next Ministerial Conference.
The WTO’s agreements contain over 150 provisions for developing countries and LDCs. They include access to technical assistance activities and longer transition periods to implement agreements and decisions.
E-commerce reshaping logistics industry, facilities (Engineering News)
The factors contributing to growth in logistics facilities are primarily centred around ecommerce, as smaller companies continue adopting ecommerce and delivery in addition to larger companies and, with demand from smaller companies expected to continue, this will continue to drive growth into the foreseeable future, said logistics parks property company Inospace founder and CEO Rael Levitt. South Africa is in the early stages of adoption and will see further growth as online retail grows, as companies adopt new technologies and as the country’s delivery economy grows, he said during a talk hosted by JSE-listed real estate investment trust Fortress REIT on September 28.
“The global growth of ecommerce, as well as the supply-chain disruptions worldwide, are contributing factors to the growth in demand for logistics and facilities, and significant demand from smaller and medium-sized companies will continue to drive growth in the sector,” he noted.
High-level panel explores the need to leverage technology to promote inclusive growth (WTO)
Gayle Smith, Chief Executive Officer of ONE Campaign, said digitalization could be a key driver of economic growth provided action is taken to level the playing field and support those who are denied digital access. Currently, 40% of the world’s people do not have access to the internet, and many of them do not even have access to electricity, she said.
There is a massive potential for African businesses to seize digital opportunities, Florizelle Liser, Chief Executive Officer of the Corporate Council on Africa said, flagging that “Africa has only 2.5% of global trade” and 60% of the African population is under 30. She highlighted the important role of trade rules, pointing to the ongoing e-commerce negotiations at the WTO. If rule makers can put in place the right rules for e-commerce, she said, not just developed countries but developing countries will benefit as well. She also highlighted the importance of harnessing the opportunities provided by the African Continental Free Trade Area (AfCFTA), which will help remove trade barriers.
DDG Paugam: “Clear that sustainability is at the heart of trading models of the future” (WTO)
Meanwhile, many new dimensions of trade have been happening in the real-world economy and world trade which are not fully grasped: climate change is already massively impacting trade patterns and value chains, most multinationals and governments are developing and implementing net-zero strategies, in particular through decarbonisation of value chains and traceability of their inputs. For the first time in the history of the WTO, the software of a multilateral agreement has completely shifted from trade to sustainability.
Closing investment gap in global goals key to building better future (UNCTAD)
Amid cascading crises, more investment in the Sustainable Development Goals (SDGs) is needed to get the world back on track towards a better future, UNCTAD Secretary-General Rebeca Grynspan told a meeting of G20 trade and finance ministers on 22 September. “Investment in the SDGs is a huge opportunity to make things right,” Ms. Grynspan said.
While 2021 saw strong 70% growth in global foreign direct investment (FDI) flows, the recovery has been brittle. “Investor uncertainty following the war in Ukraine and interrelated crises have put a stop to global FDI growth,” Ms. Grynspan said. “UNCTAD now expects global FDI flows to follow a downward trajectory this year.”
Closing the gap requires tackling the principal constraints to investment in the SDGs, especially in developing countries. A paper prepared by UNCTAD and Indonesia for the first G20 Trade, Investment and Industry Working Group classified these constraints in five broad categories: Systemic international constrains. These include the decline of multilateral development finance as a percentage of GDP in the Global South, the lack of a structured multilateral mechanism for debt issues in developing countries and the lack of private environmental, social and governance funds directed towards emerging markets. Political and institutional barriers, such as the absence of clear government policies, or the lack of coordination between the various stakeholders at the national and international levels. Regulatory barriers, including those related to market structures, the efficiency of licensing and permitting procedures, access to land issues or the rule of law. Economic and financial barriers, such as those linked to high initial capital costs and high-risk perception in several SDG sectors, inefficient use of incentives and limited markets in developing countries. Technical barriers, such as those related to low infrastructure investment in the energy sector, distribution and storage issues for renewables, and the quality of operational data and reliability of technical information.
How to make markets work for sustainable development (UNCTAD)
Markets are failing to ensure sustainable economic and social outcomes, slowing progress towards the Sustainable Development Goals, experts said at UNCTAD’s ad hoc expert meeting on competition, consumer protection and sustainability on 28 September. To turn the tide of businesses maximizing profits to the detriment of the planet, countries should address market failures through public policies, including those on competition and consumer protection. “Markets can only work for more sustainable development if appropriate competition and consumer policies are in place and enforced,” said Teresa Moreira, head of competition and consumer policies at UNCTAD. “We must provide clear guidance to businesses and information to consumers on governments’ strategic priorities.”
Join forces to prevent ‘food availability crisis’ urges FAO chief (UN News)
FAO Director-General QU Dongyu told a meeting of agriculture ministers from the G20 industrialized nations in Bali, that with access to Ukrainian grain, cooking oils and other vital foodstuffs for the most vulnerable countries restricted by seven months of conflict, “we must must increase the resilience of global agrifood systems.”
He lauded the UN-brokered Black Sea Grain Initiative as “an important step forward”, and it has now freed-up more than five million metric tonnes of food, with well over a quarter of shipments going directly to lower income countries. “But still it needs to be complemented to improve the food access of most vulnerable countries”, he said.