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Government Publishes Policy Proposals on Measures to Address Scrap Metal Theft (the dtic)
Government today published draft proposals to address widespread theft of copper cable and other forms of metal from public infrastructure that has crippled power supplies, left trains unable to operate and damaged public facilities in many parts of the country. The proposals have been developed following consultations by the Departments of Trade, Industry and Competition (the dtic), Police, National Treasury, Mineral Resources and Energy, Public Enterprises (including state owned enterprises), and Transport and was published in the Government Gazette today by Minister Ebrahim Patel.
The draft measures propose a six-month export prohibition on scrap and waste metal, including copper cable, together with a permit system for export of specified semi-processed metal products. This is the first of three envisaged phases, with further actions proposed in future that include a new, enhanced registration system for scrap buyers and sellers to improve monitoring, policing and law-enforcement, limitations on the ports and (potentially) border posts to be used for trade in scrap metal, and changes to the legislation to make it more difficult for stolen copper and metal to be traded.
“A disaster”: South African citrus fruit trapped in European ports (Fresh Fruit Portal)
After South Africa filed a complaint with the World Trade Organization (WTO) last month when the EU introduced new phytosanitary requirements, the trade dispute between the two parties continues. The measures came into force in July when ships carrying hundreds of containers full of South African fruit bound for Europe were already at sea and now, tonnes of oranges are rotting in containers stuck in European ports and could be wasted, according to a report by Euro news.
The new rules, which came at the height of the orange season, caught producers off guard. Some 3.2 million cartons of citrus fruit worth about €35 million were left with papers that were invalid on arrival.
In its WTO complaint, South Africa argues that the EU’s requirements are “not based on science”, “discriminatory” and excessive. Moreover, “it will add costs. And right now, that’s what no producer in the world can afford,” added Hannes de Waal, who runs the almost century-old Sundays River Citrus farm in South Africa’s southeast. On the other hand, the EU has expressed confidence that its measures are “WTO compatible”. A European Commission spokesperson said that the objective of the phytosanitary criteria is to protect the EU “from the potentially significant impact on agriculture and the environment, should this pest become established.” The dispute is now in the hands of the WTO. The parties have 60 days to negotiate a solution. Failing that, the complainant can request arbitration by a panel.
Kenya’s new vehicle exports rise 55 percent in half-year (Business Daily)
New vehicle dealers exported 137 units to the regional market in the half year ended June, marking a 55.6 percent jump from the 88 units they delivered to neighbouring countries the year before. Data from the Kenya Motor Industry Association (KMI) shows that the dealers, including Scania East Africa, Isuzu East Africa, and Inchcape Kenya exported their respective vehicle brands to Tanzania and Uganda.
The export market is limited due to differences in rules on vehicle age restrictions, with Kenya having one of the strictest laws that cap vehicle imports at a maximum of eight years from the date of manufacture. Kenyan companies, which have invested the most in local vehicle assembly, say harmonization of rules and incentives touching on the automotive sector could unlock more demand from the region. Kenyan firms currently hold small market shares in the neighbouring countries as measured by the exports they make against total sales.
“Looking at opportunities within the East African Community (EAC) region, the full implementation of the 25 percent duty on imported vehicles as per the EAC’s Common External Tariff (CET) would unlock tremendous benefits for the auto industry in the region,” Isuzu East Africa said recently.
Poor tax policy erodes Kenya’s investor attractiveness – survey (The Star, Kenya)
A rigid tax regulation environment in Kenya has seen Africa’s CEOs and leaders’ investor confidence in the country drop three positions in a year. According to the latest survey by Deloitte, commissioned by Africa CEO Forum, Kenya is ranked fifth with 23 per cent on Investment Attractiveness Index. This is a drop in rank from last year when the country was ranked second in the continent with an index of 6.9 per cent. “Market access and business environment are among the main criteria when choosing a site for investment,” the survey noted.
The tax change in the country’s betting, telecommunication, alcohol and corporate tax has skyrocketed in the past three financial years. Generally, in the continent, the survey notes that this year 78 per cent of the private sector leaders and CEOs are confident in the economic investor trends of African markets.
Kenyan farmers have a new market for avocado: China (The East African)
This week, Nairobi flagged off its first ever consignment of fresh avocados to China, cementing its place as the continent’s leading exporter of the fruit and the sixth largest globally. And it could be a jackpot for local farmers who had initially failed to meet the tough conditions set by Beijing.
“The net effect of accessing the Chinese market is that our avocado farmers will have more money in their pocket and increase employment in the agricultural sector,” said David Osiany, chief administrative secretary in Kenya’s Ministry of Industrialisation, Trade and Enterprise Development. At an estimated market value of $15.15 billion in 2022 according to Statista, avocado exports could transform the Kenyan economy.
EU tightens checks on fresh produce imports (Business Daily)
Europe has lowered the level of detection for chemical residues and pests on Kenya’s produce in a move that will raise the level of checks on exports of fresh produce. Exporters are now worried that a lack of compliance to the required Minimum Residue Level (MRL) by farmers will lead to frequent interception of the produce in the wake of increased checks. Europe, Kenya’s largest market for fresh produce has lowered the level to a bare minimum of LOD — level of detection — meaning that any hazard found whether high or low will be treated the same.
“These guides provide a clear explanation of what needs to be done in order to ensure that exported produce is in compliance with EU phytosanitary requirements,” said the EU in the new guidelines.
Kenya eyes US companies dumping China in Biden deal (Business Daily)
Kenya is vying to become the manufacturing hub for American companies seeking to relocate or diversify out of China in fresh trade talks Washington opened with Nairobi in July. Industrialisation and Trade Cabinet Secretary Betty Maina said Nairobi will be negotiating a deal that will lay ground for a manufacturing base for the US firms with a key focus on tech factories. “With all the changes globally, the US firms are looking at identifying new production bases for their products. They are diversifying out of their traditional production places in the Far East, particularly China,” Ms Maina told the Business Daily. “This gives us an opportunity as a country to attract these new investments. That is why it [proposed deal] is called trade and investment partnership that is informed by the need for US firms to diversify their production bases and for us to find new products [for export].”
US manufacturers operating in China are escalating decade-long plans to relocate production after being rattled by strict Covid-19 lockdowns in April and May, which further disrupted supply chains and bit into their profits.
Trade-offs for Uganda’s ‘Middle-Income’ status (Monitor)
After years of trying to attain the Middle Income status, Uganda, according to President Yoweri Museveni, has finally made it into the coveted bracket irrespective of tough economic times. In his 2022 State of the Nation Address, Mr Museveni, noted that despite locust invasion, the rising waters of the lakes, the floating islands, the landslides, the terrorist bombs, the Covid-19 pandemic and now the rising commodity prices largely caused by the Russian invasion of Ukraine, the country still managed to find its way into the middle income status. Currently, he says the economy is standing at $45.7 billion (Shs176 trillion) by the exchange rate method and at $131.6 billion (Shs507 trillion) by the Purchasing Power Parity (PPP) method. This, according to Mr Museveni means the GDP per capita is $1,046 (about Shs4 milion) which is slightly beyond the entrance points for the lower middle-income status of $1,036 (about Shs3.9 milion). Following some years of eluding the country, President Museveni disclosed: “We have passed that figure. Congratulations!”
The President was also quick to add: “However, to be declared a middle-income country, you should sustain this for two to three consecutive years. I am confident that we shall over perform in achieving that.”
Singapore, Rwanda, Kenya’s electronic single window hold lessons for Nigeria (Businessday)
While the Federal Government of Nigeria has for years been nursing the idea of introducing the electronic single window platform for cargo clearing at the ports, shippers in East African countries and Singapore are reaping the benefits of such a facility. The single window is a facility that allows parties involved in trade and transport to lodge information and documents with a single entry point to fulfill all import, export, and transit-related regulatory requirements. Kenya, Tanzania, Uganda, and Rwanda have fully embraced the Electronic Single Window System, according to a report by Trade Mark East Africa. They started with their heads of government coming together to usher in the system in one voice. The introduction of a single window, which ensures the East African countries align their Customs clearance systems to the new electronic platform, has made cargo clearance faster and more efficient.
National Agriculture Investment Plans at core deliberations in Dakar (IPPMedia)
The African Union Development Agency- NEPAD and African Union Commission convened in Dakar, Senegal, a three-day meeting to discuss the implementation of the National Agriculture Investment Plans and the progress therefor.
The main objective of the consultative meeting was to establish status of the NAIPs and RAIPs implementation in member states including linkages to the National development Plans and in the process identify lessons, challenges and opportunities that might have accelerated or delayed the implementation of the NAIPs and RAIPs.
Speaking during the opening ceremony, the CEO of the African Union Development Agency-NEPAD, Mrs Nardos Bekele-Thomas indicated that the meeting created an opportunity to engage all AU Member States and work towards strengthened financing and multi-stakeholder coordination on the Comprehensive Africa Agriculture Development Programme (CAADP) and said that it will also build on the outcomes and commitments of 2021 such as the UNFSS, COP26 and the N4G Summit.
The critical role of the NAIPs in the agriculture transformation agenda of the continent was brought to the fore once again at the Ordinary Session of the AU Assembly in Malabo, Equatorial Guinea where the Heads of State and Government adopted a Declaration on Accelerated Agricultural Growth and Transformation for Shared Prosperity and Improved Livelihoods and later referred to as the “Malabo Declaration”. The Malabo Declaration highlights seven commitments as indicators for progress and impact on the 10-year vision and goals of Africa Accelerated Agricultural Growth and Transformation (3AGT) agenda.
African trade and integration
AfCFTA records significant progress – Wamkele Mene (Ghana Business News)
The African Continental Free Trade Area (AfCFTA) agreement has made significant progress in the last few years, thanks to the commitment of the continent’s heads of state, Mr Wamkele Mene, Secretary-General of the AfCFTA Secretariat, has said. Speaking at a meeting with media managers, Mr Mene said the Secretariat had been able to make significant progress in trade rules, especially the rules of origin, which are key to measuring the movement of goods across borders.
“We have now been able to negotiate almost 90 per cent of the rules of origin. So, 5,000 products that we have in Africa we now have agreement close to 90 per cent. It is a remarkable achievement,” adding that every single item has to be negotiated. “We’ve produced all the certified documents to trade with and it is now up to the member states to cooperate diligently with the process to make sure that trade is fully exploited,” the Secretary General noted.
Strong regional value chains imperative for Africa’s economic resilience (Chronicle)
AS the world economy navigates through negative impacts of the on-going Russia-Ukraine war and its interplay with the Covid-19 pandemic, there is growing debate on rethinking global supply chain strategies with focus on strengthening resilience building mechanisms, especially for Africa, in order to cushion local economies and save jobs. The widescale Covid-19 lockdown measures experienced in the last two years and the Russia-Ukraine crisis so far this year, have clearly exposed the fragility of the globally interconnected economic system, putting on spotlight the need to bolster resilience building against future shocks, according to The Economist Magazine, June 2022.
For the African continent, which is largely dependent on supply chains linked mainly to the global north, the prevailing global disruptions pose a serious threat to many economies within the region.
Full agenda for the 42nd SADC Summit: Accelerating the industrialization drive (sardc)
The Democratic Republic of Congo will host the annual SADC Summit this month when southern African leaders will discuss regional integration and sustainable development. The theme for the 42nd Summit of Heads of State and Government is “Promoting industrialization through, agro-processing, mineral beneficiation, and regional value chains for inclusive and resilient economic growth.”
The theme continues the trajectory of the previous nine summits, building towards the integration goals of the Southern African Development Community (SADC), and resonates well with the vision of the Summit that conceived the industrialization drive, held in Victoria Falls, Zimbabwe in 2014 with a focus on economic transformation “through beneficiation and value addition”. This article is the first of a series to unpack some of the key issues expected to be considered by the 42nd SADC Summit on 17-18 August in Kinshasha.
‘Sadc cannot progress without industrialisation’ (Chronicle)
SOUTHERN African Development Community (Sadc) executive secretary, Mr Elias Magosi, has called for enhanced positive exploitation of key value chains such as agro-processing and mineral beneficiation, stressing that “the region cannot progress without industrialisation”. As the bloc focuses on development of key infrastructural projects that drive regional integration as outlined in the Regional Indicative Strategic Development Plan (RISDP) 2020-2030, Mr Magosi says robust industrialisation must take centre stage if the region is to achieve desired economic integration. Speaking during a courtesy call on him by the African Development Bank (AfDB) Group senior vice president, Ms Bajabulile Swazi Tshabalala, on the sidelines of the recent meeting of the Committee of Ministers of Finance and Investment and Peer Review Panel, held in Lilongwe, Malawi, Mr Magosi said infrastructure development and industrialisation were key components towards Sadc regional integration.
EU trade relations with Southern African Development Community (SADC) (European Commission)
The ECOWAS Bank for Investment and Development (EBID) has officially released the 2022 edition of the West Africa Development Outlook (WADO), which takes stock of socio-economic developments of the previous year and presents a macroeconomic outlook for the year 2022. The WADO discusses the socio-economic challenges of the times and postulates policy interventions that could help ease these challenges.
The 2022 WADO, which is themed, “Navigating Global Shocks through Structural Transformation and Trade”, discusses how the ECOWAS sub-region can mitigate the recent price escalation by increasing local production capacities, improving intra-regional trade and embarking on a deliberate structural transformation agenda. It also discusses the causes of the recent price hikes as being structural and the need for cautious monetary policy interventions.
Africa must strive to improve digital infrastructure – President Chakwera (Ghana Business News)
Dr. Lazarus Chakwera, President of the Republic of Malawi has noted that the vision for a “digital Africa” can only be realized if African Governments invest in indigenous solutions and workforce to drive the agenda of transformation. “Africa must be a leader in this revolution with its youthful population who are already strategically positioned to create tailored made digital solutions for Africa’s problems,” President Chakwere stated at the 11th African Internet Governance Forum (AfIGF 2022) in Lilongwe, Malawi. The forum which was on the theme: “Digital Inclusion and Trust in Africa,” was organized by the government of Malawi in collaboration with the African Union Commission (AUC) and the United Nations Economic Commission for Africa (UNECA).
Dr. Amani Abou-Zeid, African Union Commissioner for Infrastructure and Energy said “since 2020, digital technologies have proven to be the lifeline that made our communications easy, our work going and businesses functioning.
Fintech, other knowledge-intensive services could drive Africa’s prosperity, boost inclusion (Africa Renewal)
The UNCTAD report touts Opay, a Nigerian point of sale platform and mobile payment service company, which raised $400 million in 2021 and currently boasts 160 million users, including millions in the huge unbanked population. Despite such progress, hurdles remain in the way. The report lists “restricted access to finance, poor integration in regional and global markets, and a limited skills base.” As well, the fintech sector is not developed enough to support production.
AfDB to deliver climate-adapted wheat, other seeds to 20m African farmers (BusinessAmLive)
The African Development Bank (AfDB) says it is set to deliver climate-adapted, certified wheat and other staple crops seeds to 20 million farmers in Nigeria and other African countries.
The initiative, which includes the delivery of seeds and increased access to fertilisers, would be done through the bank’s African Emergency Food Production Facility as part of activities to tackle the food crisis in African countries. Akinwumi Adesina, president of the multilateral finance development institution, stated this in a recent document titled “Averting an African Food Crisis: The African Food Production Facility”.
Speaking on AfDB’s plan towards addressing the challenge, Adesina said the bank in May established a $1.5 billion African Emergency Food Production Facility and in less than 60 days, it put into action $1.13 billion-worth of programmes under the facility across 24 African countries.
Fact Sheet: U.S. Strategy Toward Sub-Saharan Africa (The White House)
Sub-Saharan Africa plays a critical role in advancing global priorities to the benefit of Africans and Americans. It has one of the world’s fastest growing populations, largest free trade areas, most diverse ecosystems, and one of the largest regional voting groups in the United Nations (UN). It is impossible to meet today’s defining challenges without African contributions and leadership. The region will factor prominently in efforts to: end the COVID-19 pandemic; tackle the climate crisis; reverse the global tide of democratic backsliding; address global food insecurity; promote gender equity and equality; strengthen an open and stable international system; shape the rules of the world on vital issues like trade, cyber, and emerging technologies; and confront the threat of terrorism, conflict, and transnational crime.
Building on the Biden-Harris Administration’s actions and commitments to deepen our engagement and partnerships in Africa during the past year, the strategy articulates our new vision for a 21st Century U.S.-African Partnership.
The new U.S. Strategy Toward Sub-Saharan Africa represents a reframing of Africa’s importance to U.S. national security interests. We will pursue four main objectives in sub-Saharan Africa:
Vital Partners, Shared Priorities: The Biden Administration’s Sub-Saharan Africa Strategy (United States Department of State)
Speech by Antony J. Blinken, Secretary Of State: Future Africa, delivered in Pretoria, South Africa, on August 8, 2022
The United States and the Republic of South Africa (United States Department of State)
China to overtake the EU as Africa’s biggest trade partner by 2030 (The Africa Report)
Asia sees Africa’s youthful population as a source of labour for its manufacturing companies and a market for its consumer goods. Although trade should be reciprocal, the continent’s trade deficit is large as it continues to import significantly more than it exports.
In recent years, the West’s already fragile reputation in Africa has worsened. The only western institution still properly active seems to be the IMF, while China on the other hand has, broadly speaking, kept up its commercial operations. Question marks are also being raised in Africa over the motives behind the re-engagement of the EU and the US … [raising] memories of past commitments and are viewed merely as a desire to counter Chinese influence rather than work with African business partners. Western engagement in Africa is not changing very much as times are changing, with the exception of more dynamic markets such as New York City that are funding startups on the continent, although the EU and US want to ensure that China does not continue to become more powerful there.
The EIU said: “Question marks are also being raised in Africa over the motives behind the re-engagement of the EU and the US … [raising] memories of past commitments and are viewed merely as a desire to counter Chinese influence rather than work with African business partners.”
As Abou El Houda, Managing Partner of Houda Law Firm in Senegal and Côte d’Ivoire told Mining Review Africa: “The challenge for Africa is in establishing where its interests converge with China’s, where they diverge, and how areas of convergence can be shaped to advance African development priorities.” Although this recent plan to increase trade with Africa by China seems to imply that the move away from an over-reliance is not happening, many governments on the continent are now more aware of the so-called ‘Chinese debt trap’ that countries like Zambia and Angola fell into post-Covid, and as such are able to better pick and choose which trade/financial flows with China works for them.
Global economy
Fostering the digital economy in small island developing states (UNCTAD)
UNCTAD has launched a new project to strengthen the capacities of 38 small island developing states (SIDS) in Africa, the Caribbean and Asia and the Pacific to adopt trade policies that develop the digital economy and enhance crisis responses. Digital technologies and e-commerce have immense potential to support the participation of SIDS in international and regional markets. They can also help build resilience and promote stronger recovery from disasters. But the digital economy is in its early stages of development in SIDS, whose common challenges to digital transformation include limited access to affordable infrastructure. And the COVID-19 pandemic has reinforced pre-existing bottlenecks in SIDS’ e-commerce ecosystem.
Importance of building evidence for gender-sensitive trade policies (Trade for Development News)
Inclusive programming has been central to the EIF’s Aid for Trade interventions in least developed countries (LDCs). This emerged from a recognition that the gains from trade are amplified when they generate opportunities for women and youth and enable micro, small and medium-sized enterprises (MSMEs) to integrate into global trade.
The OECD-WTO monitoring and evaluation (M&E) exercise has noted that mainstreaming gender into national strategies is a continuous process. This reflects our ongoing work which has been to partner with governments in LDCs to formulate and implement gender-sensitive trade policies and regulations, as well as to improve the collection of gender-disaggregated trade data.
The best policies are evidence-based, but they can be challenging to formulate in contexts where data do not exist.
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Tons of fruit stranded in Europe as SA battles EU over import rules (EWN)
Millions of boxes of oranges are spoiling in containers stranded at European ports as South Africa and the European Union lock horns in a dispute over import rules, citrus growers have said. South Africa, the world’s second-largest exporter of fresh citrus after Spain, filed a complaint with the World Trade Organisation (WTO) last month after the EU introduced new plant and health safety requirements that orange farmers say threaten their survival. The measures came into force in July as ships were already at sea carrying hundreds of containers full of South African fruit to Europe, resulting in them being held up on arrival, South Africa’s Citrus Growers’ Association (CGA) says. “It’s a complete and utter disaster,” CGA’s CEO Justin Chadwick told AFP by phone. “Food that has fantastic quality and is safe is (just) sitting there -- and this at a time when people are worried about food security.”
The EU rules aim at tackling the potential spread of an insect called the false codling moth, a pest native to sub-Saharan Africa that feeds on fruits including oranges and grapefruits.
Farmers fight on despite lost export markets (Food for Mzansi)
Farmers in South Africa who once relied on Russia and Ukraine as key export markets, are trying their level best to find alternative destinations for their top crops. Exporters are now setting their sights on Africa, where the two countries at war have created potentially lucrative gaps. According to Western Cape fruit exporter and managing director at Riyp, Uzair Essack, more and more farmers – mostly apple, pears, citrus and grape producers – have approached Riyp to help them find new markets.
“A lot of farmers [who exported to Russia and Ukriane] are reaching out to us to handle their exports because we focus on Africa, the Middle East and Ireland. So, those three markets have seen more inflow recently,” Essack says.
South Africa and Botswana to improve rail freight links (Reuters)
South Africa and Botswana have agreed to fund the improvement and extension of rail links between the countries in a bid to boost trade and better connect Botswana to export markets, South African state-owned logistics firm Transnet said on Friday. Transnet Freight Rail (TFR) will collaborate with Botswana Rail (BR) to fix parts of the 126 km (78 mile) rail line between Swartruggens, in South Africa’s North West province, and Mafikeng, on the border with Botswana, helping South Africa’s landlocked northern neighbour get its minerals, including thermal coal, to market. European countries are scrambling to meet their coal needs after a ban on imports of the fossil fuel from Russia, and coal-rich countries like Botswana are looking to cash in on the surge in demand.
Kenya launches its National AfCFTA Implementation Strategy (UNECA)
“To fast-track implementation of the African Continental Free Trade Area (AfCFTA), the development of an implementation strategy is critical as it leverages deeper integration within the framework of AfCFTA to facilitate an expansion of Kenya’s trade and investment in Africa” says Cabinet Secretary Betty Maina, Kenya Ministry of Industrialization, Trade and Enterprise Development during the launch of the pdf Kenya AfCFTA Implementation Strategy (4.87 MB) .
Competition From Kenya Causes Sluggish Khat Exports (The Reporter Ethiopia)
Khat exporters in Ethiopia face a business slowdown following a new deal signed between the governments of Kenya and Somalia. Ethiopia had a comparative advantage for the last two years after the Somalia government placed a ban on Khat imported from Kenya, with no reason given during the suspension. A protracted maritime boundary dispute has strained relations, and Somalia has accused Kenya of interfering in its internal affairs. Nairobi has countered by accusing Mogadishu of using it as a scapegoat for its own political and security problems.
Last week, Business Daily reported that Kenya had exported USD 2.2 million worth of Miraa (Khat) within four days after the official lifting of the suspension. While this is a big win for traders in Kenya, the story is different for their counterparts in Ethiopia. “It is now a peak season and we expect exports to grow, not decline, which is happening right now,” said Fahmi Abdulmajid, an exporter of Khat. “In my experience, demand fell by 50 percent from Somalia, which is shocking to say the least. “Ethiopia exported almost USD 392 million worth of Khat during the last fiscal year, exhibiting almost no change from the previous year, though it is USD 100 million higher than the figure registered before Somalia placed a ban on Kenya’s khat.
USAID assists 106 Namibian exporters (Namibian)
THE United States Agency for International Development (Usaid) TradeHub has assisted 106 Namibian firms to engage in business-to-business events with potential buyers, showcase their products, and start new business discussions. According to Jessica Long, United States (US) embassy chargé d’affaires, more than 6 400 qualifying exports from eligible sub-Saharan African countries, including Namibia, have had access to the US market through the African growth and Opportunity Act (Agoa).Long was speaking at a stakeholders meeting in Windhoek to reflect on the six-year southern Africa trade and investment hub (Usaid Trade Hub)
She said through the trade hub, the US has helped Namibian firms achieve Agoa and non-Agoa-related exports valued at US$2,7 million (about N$43 million) over the past three years.
Nigeria’s central bank urges manufacturers to approach development financing institutions for loans (Nairametrics)
The Central Bank of Nigeria has urged the Manufacturers Association of Nigeria (MAN) to approach the development financing institutions like the Development Bank of Nigeria and Bank of Industry for their funding needs.
This was disclosed by Mr Eboagwu Ezulu, Deputy Director, Financial System Stability Directorate of the Central Bank of Nigeria (CBN), at the first National Stakeholders Conference organised by the Association of Corporate Affairs Managers of Banks (ACAMB) in partnership with the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos.
Mr Eboagwu Ezulu advised MAN to approach the development financing institutions for loans, stating that these institutions were created in collaboration with the apex bank.
“Have we the manufacturing sector approached those entities to utilise the funds available rather than asking the commercial banks? Banks are supposed to approach the CBN on behalf of their customers to solve these problems; the commercial banks lend for credit purposes, and they have the primary responsibility to protect their depositors.”
Buhari, address threats to food security now (Punch)
NIGERIA is undergoing a severe food crisis fuelled mainly by the raging insecurity threats in all parts of the country. The Minister of Agriculture and Rural Development, Mohammad Abubakar, has recently admitted this reality, warning that with the current prices of food items, many Nigerians may plunge deeper into poverty if proper measures are not taken. On the President, Major General Muhammadu Buhari (retd.), and the state governors lie the responsibility to urgently take measures to stave off famine in the country. Abubakar’s warning is neither new nor an isolated missive. As far back as 2015, such alerts have been raised by many international bodies, NGOs and experts about the imminent danger of this calamity, but the federal and state governments have failed to act with dispatch or mount effective countermeasures.
Algeria: Strengthening Resilience to Better Address Future Shocks (World Bank)
Nonhydrocarbon sectors in Algeria are expected to recover to pre-pandemic levels in 2022 and trade and budget balances will also show a marked improvement this year, according to the latest edition of the World Bank’s Algeria Economic Update. Issued in French under the title Renforcer la résilience en période favorable (Strengthening resilience in favorable times), the report is part of a series of semi-annual publications aimed at analyzing economic development trends and the outlook for Algeria. The Spring 2022 edition reflects the data and information available as of June 17, 2022.
Supported by increased hydrocarbon production and exports, Algeria’s GDP is estimated to have recovered to its pre-pandemic level in the fourth quarter of 2021. The hydrocarbon sector and a stronger recovery in the services sector were the main drivers of Algeria’s economic growth in 2021. The economic rebound, however, suffered from a drop in agricultural activity and an incomplete recovery in the public manufacturing sector. Job creation also lagged and by the end of 2021, the number of registered jobseekers was significantly higher than the number recorded before the pandemic. Non-hydrocarbon GDP remained 1.6% below its 2019 level and inflation continued its upward trend, in part due to international factors. In response, the authorities have implemented a set of measures to limit the impact of such rising prices on the purchasing power of households, including the introduction of unemployment benefits for first-time job seekers.
African trade and integration news
On 25 June 2022 during the 9th Council of Ministers Meeting, the AfCFTA secretariat launched two major tools deemed key in accelerating trading under the AfCFTA; the AfCFTA E-Tariff Book and the Rules of Origin Manual. Both were developed with the support of the World Customs Organization and the European Union under the EU-WCO HS and RoO Africa programmes.
The AfCFTA e-Tariff Book contains all the information on the tariff schedules and applicable tariff rates for all of the AfCFTA State Parties structured based on the WCO 6 digits Harmonized System (HS). This tool is a milestone as it will facilitate the publication of information on rates of duty applied by AfCFTA State Parties under their Schedules of Tariff Concessions with several search functionalities, comparison of applicable rates between all state parties and option to download the results, hence making it a practical instrument for trading under the AfCFTA Agreement. This tool will further include key information on AfCFTA RoO and could be further enhanced as one stop platform for all relevant stakeholders.
African economic blocs to meet in Kigali to explore AfCFTA opportunities (The New Times)
Business executives from different African trading blocs are set to meet in Kigali next week, to draw strategies through which they can tap into opportunities offered under the African Continental Free Trade Area (AfCFTA) The two-day meeting, according to the CEO of East African Business Council (EABC) John Bosco Kalisa, will bring together traders from the East African Community, the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Cooperation (SADC). “As a follow up to the recommendations and action plan from the Accra meeting, the East African Business Council will meet in Kigali along with SADC and COMESA to jointly position themselves in the efforts towards preparing the private sector to benefit from the AfCFTA” Kalisa said.
The blocs’ meeting is to develop a joint position paper on matters detailing the private sector involvement in the implementation of the AfCFTA, develop joint capacity building initiatives for the RECs Business Council members to enhance participation in the AfCFTA initiatives, as well as development of an Action Plan for collaboration between the Councils.
African Continental Free Trade Area Secretariat launches the AfCFTA Hub (GhanaWeb)
The AfCFTA Hub digital platform was launched on July 8th, 2022 at the Boma of Africa event convened to mark Africa Integration Day. The AfCFTA Hub platform was launched on behalf of AfCFTA Secretariat by the African Union AfCFTA Champion, H.E Mahamadou Issifou, former President of the Republic of Niger and 2020 Ibrahim Prize Laureate. The Boma of Africa was jointly convened by the African Union (AU), the AfCFTA Secretariat, AfroChampions and the Africa Center for Disease Control and Prevention (Africa CDC). It was supported by the AfCFTA Hub Network, with support from Afreximbank, MTN, Ecobank, the Village Foundation, IC Publications, Dominion Television and APO.
The launch of the AfCFTA Hub also coincided with the 3rd Anniversary of the entry into force of the African Continental Free Trade Agreement (AfCFTA). The launch event also featured a prize ceremony for a hackathon organised to mark the 3rd Anniversary of the AfCFTA and to demonstrate the benefits of an “AfCFTA Hub” to Small & Medium Enterprises (SMEs) and startups around the continent. The following companies as well as one individual were recognized as finalists at the Hackathon Prize Ceremony.
PAPSS sets platform for single currency (GhanaWeb)
The Pan African Payment and Settlement System (PAPSS) offers an opportunity for countries in the ECOWAS region to expedite the long-awaited goal of a single currency within the West Africa Monetary Zone, Head of Mission, AfreximBank, Eric Monchu Intong, has said. Mr. Intong, who was speaking on the theme: ‘Trade Finance and Pan African Payment Systems’ at the UPSA Law School-ACCA Africa Trade Roundtable V, said.
“The PAPSS platform offers the opportunity to know the average rate of conversion of cedi to naira over the past decade using the dollar as an intermediary to benchmark the rate to a specific amount. Same criteria must be applied to all other African currencies. This will totally eliminate convergence criteria with the dollar”. This process, he said, will easily renew the interest on the common currency agenda for the West Africa Monetary Zone, allowing the sub-region to easily determine whether to move naturally toward cedi, naira or the CFA, hence, narrowing interests to a single currency.
Boosting intra-African trade will power post-COVID-19 recovery and foster food security (Africa Renewal)
The COVID-19 pandemic is disrupting Africa’s development trajectory. It is exacting a substantial socio-economic toll and putting the survival of half of the continent’s micro, small and medium-sized enterprises (MSMEs) at risk. Four in five African businesses are witnessing a dramatic reduction in sales. As African countries restart their economies and phase out COVID-19 restrictions, the ripple effects of the Ukraine crisis increase daily. The effects are particularly acute in terms of food security, given the continent’s reliance on food imports from the region of conflict. In addition, the rising cost of fertilizers and the impact of climate change are exacerbating food shortages. These shocks have slowed progress towards achieving SDG2, which is zero hunger by 2030.
A 2021 joint publication by FAO, the United Nations Economic Commission for Africa (UNECA), and the African Union titled Africa: Regional Overview of Food Security and Nutrition indicated that over one-fifth of the continent’s population faced hunger in 2020. That is about 281.6 million people—46.3 million more than the figure for 2019.
Due to current harsh economic realities in countries, the International Monetary Fund is encouraging governments worldwide to subsidize the cost of food and energy for their poor. Such a social intervention presents a huge fiscal challenge for many African countries.
SADC Industralisation Week aims to foster new opportunities for intra-African trade and investment (SADC)
My government attach great importance to SADC regional integration efforts and in particular to all efforts towards creating a strong economic block through the promotion of industrialisation. This was said by the Prime Minister of Democratic Republic of Congo (DRC) His Excellency Mr. Jean- Michel Sama Lukonde Kyenge, when officially opening the 6th SADC Industralisation Week (SIW) held in Kinshasa, DRC on the 2nd August, 2022. He applauded the SADC Founding Fathers for the strong foundation laid down both at political and socio-economic level for the integration of the region and urged delegates to be resilient and to remain steadfast in the implementation of the resolutions that will emerge from the week-long event.
The SADC Deputy Executive Secretary for Corporate Affairs, Ambassador Joseph Nourrice underlined that the SIW facilitates establishment of partnerships among stakeholders to enhance cooperation and collaboration in the implementation of the SADC Industrialisation Strategy and Roadmap (2015-2063), both at the national and regional levels. He said the event also provides a platform for regional companies, youth and women to showcase their innovations towards industrialisation.
The Southern African Development Community (SADC) remains focused on development of infrastructural projects that drive regional integration as outlined in the Regional Indicative Strategic Development Plan (RISDP) 2020-2030. This was said by the SADC Executive Secretary, His Excellency Mr. Elias M. Magosi, during a courtesy call on him by Her Excellency Ms. Bajabulile Swazi Tshabalala, Senior Vice President of the African Development Bank Group, on the margins of the meeting of the Committee of Ministers of Finance and Investment and Peer Review Panel, held in Lilongwe, Malawi on 28th July, 2022. The Executive Secretary stated that infrastructure development and industrialisation are key components towards SADC regional integration. He highlighted that development of infrastructure projects such as roads, railway lines, information communication technology, amongst others, are inevitable ingredients to facilitate seamless movement of people, goods and services in order to bring the desired developmental impact
EAC Delegation in South Korea to set ground for grand bilateral Economic and Social Cooperation (EAC)
The East African Community (EAC) has officially kick-started engagements with the Republic of Korea (ROK) on a grand economic and social cooperation between the EAC and South Korea. The engagement, in the form of a bilateral cooperation seminar, was held at the Korea Chamber of Commerce (KCCI) in Seoul. This seminar is a follow-up of an earlier bilateral meeting held between the EAC Secretary General and South Korea’s Ambassador to the United Republic of Tanzania earlier this year. The partnership seminar was convened under the theme: Exploring Economic Cooperation between the ROK and the EAC.
“The expansion of the EAC following the admission of the Democratic Republic of Congo into the Community has not only substantially increased the market population but also the GDP of the EAC, thereby making the region an attractive trade and investment destination,” EAC Director of Trade, Al-hajji Rashid Kibowa added.
Infrastructure development, ICT and the automobile industry, Trade in Services, Human Capital Development and mineral development were highlighted as the core areas for Korea - EAC support and cooperation. These areas were identified taking full advantage of Korea’s cutting-edge digital technology and its thriving automotive- manufacturing industries.
Northern Corridor cited most costly in the world (The East African)
Transporters using the Northern Corridor have been bearing some of the highest costs in the world, reflecting how shortage of arteries is impeding the competitiveness of the East African region to trade. According to a survey carried out by the Shippers Council of East Africa (SCEA), transport costs in the region are estimated at $1.8 per km per container against international best practices of $1 per km per container.” The most expensive route to transport cargo was Kampala-Mombasa at $2.5 per tonne followed by Mombasa-Kampala at $2.17, Dar es Salaam-Kampala $1.17 and Bujumbura-Dar es Salaam at $1.02 per tonne,” the SCEA Logistics Performance Survey 2021 report says.
Ahead of the 2022 United Nations Climate Change Conference (COP27) the Economic Commission for Africa (ECA) and the UN Climate Champions hosted the “African Roundtable on Initiatives to Accelerate Climate Action and Advance the SDGs” and “Coordination Meeting of the African Group of Climate Change Negotiators and National UNFCCC Focal Persons” from 2-4 August, 2022. The events brought together key stakeholders from both public and private sectors, to showcase both the success stories of private sector investments in climate areas as well as investment-ready climate initiatives in Member States towards ensuring enhanced actualizing enhanced climate action at scale and speed to strengthen African economies and build resilience.
USAID TradeHub facilitates N$43 million worth of AGOA exports over three years (Namibia Economist)
The US Embassy on Wednesday held a meeting with the government and representatives of the United States Agency for International Development (USAID) to reflect on the past six years of the Southern Africa Trade and Investment Hub (USAID TradeHub). The event brought together Namibian manufacturers and exporters to tell about their experiences, successes, and lessons learned in enhancing the flow of trade and capital between Namibia, South Africa, and the United States, especially under the African Growth and Opportunity Act (AGOA), said US Embassy spokesperson, Perry Stamp, in a statement. The US Embassy’s Chargé d’Affaires, Jessica Long stated, “The United States is a proud partner of the private sector in Namibia, particularly firms seeking to explore opportunities in the South African and U.S. markets through the AGOA.”
The US is revisiting its trade relations with African countries: key issues on the table (The Conversation)
Last year, the US’s Biden administration announced plans to increase two-way trade and investment between the US and Africa. The starting point was a revamp of the Trump-era “Prosper Africa initiative”. As American secretary of state Antony Blinken visits three African nations – South Africa, Democratic Republic of Congo and Rwanda – Kefa Otiso and Francis Owusu provide insights into US-Africa trade relations and what’s being planned to improve them.
In July 2021, the Biden-Harris administration launched the Prosper Africa Build Together Campaign. The idea was to elevate and energise the US’s commitment to trade and investment with countries across the African continent. The revamped Trump strategy includes a targeted, long-term effort to connect American and African businesses with new trade and investment opportunities. Key sectors being targeted are clean energy and climate smart solutions, health, and digital technology. Through the initiative, the US is promising to help drive billions of dollars of investment to Africa and to work towards equitable access to the benefits of trade and investment. It also envisages harnessing the power of small businesses, especially those led by women and members of the African Diaspora.
What should a good trade pact look like? This is a difficult question to answer, given the many possible configurations of a potential trade pact. Nevertheless, we offer two key elements of such a trade pact. First, it should be truly multilateral unlike, for example, the prevailing US-Africa trade agreement, the African Growth and Opportunity Act (AGOA) – which is a unilateral US government policy. A truly multilateral pact would recognise African leaders as equal partners and ensure that they have an opportunity to properly engage in US-Africa trade negotiations.
China’s trade with Africa gets boost from rising commodity prices despite impact of Covid controls (Yahoo Finance)
Trade between China and Africa grew by 16.6 per cent to US$137.4 billion in the first half of this year, boosted by a recovery in commodity prices, especially oil. China imported goods worth US$60.6 billion from Africa, a 19.1 per cent increase compared with the same period in 2021, according to the latest figures from China’s General Administration of Customs. Meanwhile, exports to the continent increased by 14.7 per cent to US$76.8 billion. However, growth was fastest in the earlier part of the year, with analysts attributing the drop-off to pandemic-related supply chain disruptions including the Shanghai lockdown and port closures.
Global economy news
ICC calls for cautious optimism as markets begin to stabilise (ICC)
The International Chamber of Commerce (ICC) has called for cautious optimism following the publication of the third report of the UN Secretary General’s Global Crisis Response Group examining the global impact of Russia’s invasion of Ukraine The findings of the third report of the UN Secretary General’s Global Crisis Response Group call for cautious optimism. Markets for key commodities are beginning to stabilise – helped significantly by the departure of the first grain shipment from Odesa this week. This is certainly cause for hope. But that must not breed complacency as to the nature of the situation we face.
The evidence set out clearly in the third report shows that the rising cost of food and energy now threatens social, political and economic stability in all regions of the world. Current fertiliser shortages risk precipitating an unprecedented global hunger crisis in 2023, millions risk being pushed into extreme poverty in the coming months and more than 20 countries are at high risk of sliding into default.
2022 External Sector Report: Pandemic, War, and Global Imbalances (IMF)
Global current account balances—the overall size of current account deficits and surpluses—continued to widen in 2021 to 3.5 percent of world GDP, and are expected to widen again this year. The IMF’s multilateral approach suggests that global excess balances narrowed to 0.9 percent of world GDP in 2021 compared with 1.2 percent of world GDP in 2020.
The pandemic has continued to affect economies’ current account balances unevenly through the travel and transportation sectors as well as a shift from services to goods consumption. Commodity prices recovered from the COVID-19 shock and started rising in 2021 with opposite effects on the external position of exporters and importers, a trend that the war in Ukraine is exacerbating in 2022.
The medium-term outlook for global current account balances is a gradual narrowing as the impact of the pandemic fades away, commodity prices normalize, and fiscal consolidation in current account deficit economies progresses. However, this outlook is highly uncertain and subject to several risks. Policies to promote external rebalancing differ with positions and needs of individual economies.
Exploring blockchain technology to transform agrifood systems (FAO)
To feed more people without exacerbating the climate crisis, we urgently need our agrifood systems to become more efficient, inclusive, resilient and sustainable. One way of achieving such an ambitious objective is to leverage the potential of modern, innovative technology. And with all the technologies that have emerged, blockchain is truly one that holds great promise. Born in 2009 as an application for the virtual currency Bitcoin, blockchain is essentially a shared and decentralized database. However, unlike traditional databases, it uses a digital ledger that is simultaneously duplicated and distributed across a network of nodes on computers or servers. As new data comes in, it is entered into a fresh block. Once the block is filled with data, it is chained onto the previous block and the data within it is locked.
There are two key advantages to this distributed ledger technology: Records are immutable, since they are virtually impossible to change or hack; and the decentralized nature of the network means no single person or group controls the data, so fraud is less likely.
Such benefits go well beyond the world of virtual currencies. When it comes to producing food for human consumption, feed for livestock or timber for homes, traceability and transparency ensure that we know that such products come from a safe source or that materials are from a sustainable provider, enhancing food safety and making recalls easier. Blockchain can also facilitate trade and provide greater legal certainty to land tenure systems.
Despite this alarming situation, major oil and gas companies recently reported record profits, which Secretary-General António Guterres, who launched the brief today, called “immoral.” “The combined profits of the largest energy companies in the first quarter of this year are close to $100 billion. I urge governments to tax these excessive profits, and use the funds to support the most vulnerable people through these difficult times,” he said. The GCRG’s third brief recommends that governments find the most effective ways to fund energy solutions, such as publicly funded cash transfers and rebate policies, to protect vulnerable communities everywhere, including through windfall taxes on the largest oil and gas companies. At the same time, the brief urges a transition to renewables.
Climate negotiations: time to implement planetary health promises (The Lancet)
Six months on from the Glasgow climate talks, countries are struggling to deliver on their Paris Agreement promises.
It had been six months since the COP26 UN climate conference in Glasgow, Scotland; where there had been a renewed sense of momentum for the promises of the Paris Agreement. Glasgow saw the finalisation of the so-called rulebook of the Paris Agreement, and a renewed commitment by countries to more ambitious climate plans, as part of a Glasgow Climate Pact.
But a lot can change in six months, and the diplomats gathered in Bonn have had to navigate the technical climate talks in the background of a deadly cocktail of unfolding events in the real world, including: the invasion of Ukraine; escalating food and energy crises; continuing pandemic reverberations; and a constant barrage of climate change-fuelled extreme weather events in the first half of 2022.
This policy brief provides an overview of recent developments at the Bonn climate talks and explores their relevance to health, and the signals about what we might expect at COP27.
India and Brazil in the Global Multilateral Order (Observer Research Foundation)
India and Brazil are celebrating 74 years of diplomatic relations in 2022. In more recent years, the two countries have elevated their relationship based on a common global vision, commitment to development, and shared democratic values. They established a strategic partnership in 2006, and sought to deepen it in 2020 by agreeing to an Action Plan to Strengthen the Strategic Partnership. Today the two countries work together in various international forums, including platforms such as BRICS, IBSA, G4, G20, BASIC, as well as the United Nations in the wider multilateral context; they engage in summit meetings, high-level visits, and exchanges. Trade and investment between them have grown over the years, as has cooperation in important areas such as bioenergy.
Both countries have a long and robust tradition of engaging in forums in which they have often developed strong and enduring partnerships. Greater knowledge of each other’s actions would allow potential interactions and promote both countries’ interests.
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Kenya launches national trade strategy (Kenya News Agency)
Kenya has launched its National African Continental Free Trade Area (AfCFTA) Implementation Strategy 2022-2027 to boost opportunities for industrial diversification, investment and job creation.
The strategy also aims at deepening relations with other countries in the African Continent which has a population of over 1.3 billion people and a combined Gross Domestic Product of over USD 3.4 trillion.
Speaking during the launch of the Strategy and unveiling of AfCFTA National Implementation Committee held at a Nairobi hotel today, the Cabinet Secretary for Industrialization, Trade and Enterprise Development, Ms. Betty Maina said AfCFTA will help the country’s trade expansion into untapped African markets.
Agribusiness entrepreneurs must take advantage of AfCFTA (BusinessGhana)
Ghana: The Managing Director of Agricultural Development Bank Plc, Dr. John Kofi Mensah has disclosed that the African Continental Free Trade Area (AfCFTA) will help agribusiness entrepreneurs to access the African Market.
The AfCTA is a single market (duty-free-quota-free) trading bloc covering the entire African Continent with a total population of 1.3 billion to create a single continental market for goods and services.
Speaking on the side of the launch of the National AfCFTA Policy Framework Action Plan at the Kempinski Hotel, Gold Coast City in Accra, Dr. Kofi Mensah said Ghanaian entrepreneurs in the Agricultural sector can access a market with a combined Gross Domestic Product of almost USD3.4 trillion.
KAM says home hurdles will hurt Kenya in Africa trade deal (The Star Kenya)
The business costs, bureaucratic policies and unfriendly regulations threaten to derail Kenya from tapping into the African market, local manufacturers now say.
The Kenya Association of Manufacturers said the hurdles expose Kenyan industries to low export volumes, as their products are expensive compared to other key markets.
This is against cheaper imports from other African markets, under the African Continental Free Trade Area (AfCFTA) which seeks to address tariff and non-tariff barriers.
However, Kenya which is among the 49 member states that have ratified the agreement, lacks product competitiveness due to quality challenges, high trade investment and trade costs.
African trade and integration
South Africa-Botswana roundtable cements bilateral relations (SAnews)
President Cyril Ramaphosa says government would like to see “far greater levels of trade and investment” between South Africa and Botswana. He was giving his closing remarks at the High Level South Africa-Botswana Business Roundtable held at the Gaborone International Convention Centre in Botswana on Thursday.
“His Excellency [Botswana] President [Mokgweetsi] Masisi and I agreed that we need to encourage business in our respective countries to invest in catalytic development projects, particularly infrastructure. It has been pleasing to have representatives of our respective state-owned companies share their perspectives on the importance of infrastructure development to our common industrialisation efforts.
African Economic Blocs to Meet in Kigali to Explore AfCFTA Opportunities (Top Africa News)
Business executives from different African trading blocs are set to meet in Kigali next week, to draw strategies through which they can tap into opportunities offered under the African Continental Free Trade Area (AfCFTA)
The two-day meeting, according to the CEO of East African Business Council (EABC) John Bosco Kalisa, will bring together traders from the East African Community, the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Cooperation (SADC).
"As a follow up to the recommendations and action plan from the Accra meeting, the East African Business Council will meet in Kigali along with SADC and COMESA to jointly position themselves in the efforts towards preparing the private sector to benefit from the AfCFTA" Kalisa said.
NSC Links Trade Imbalance In W/A To Composition Of Sub-Sahara African Trade (The Tide)
Worried by the slow flow of trade in West Africa, Nigerian Shippers Council (NSC) has said that the composition of West African Sub-Sahara African trade was responsible for trade imbalance in the sub-region.
Executive Secretary, Chief Executive Officer, NSC, Emmanuel Jime, stated this in Port Harcourt during a one-day sensitisation programme on the mandate of Shippers Council as ports economic regulator, with the Theme, “Port Economic Regulator NSC in Focus”.
NSC, he said, was mandated to creates an effective regulatory regime at Nigerian Ports for the control of tariff, rates, charges and other related economic service’s
Cape Town to Host the 8th Africa Fintech Summit (Top Africa News)
In November 2022, leading innovators, investors, and policymakers from around the world will gather in Cape Town, South Africa, for the 8th edition of the Africa Fintech Summit (AFTS).
With participants who represent over $4.5bn in private equity and venture capital funding, the AFTS is the premier global initiative dedicated to financial technology in Africa. The bi-annual summit occurs each April in Washington, D.C., and each November in a different African city. The AFTS Advisory Board
ETHICORE Political Lobbying & Moharram & Partners form largest pan African & Middle East partnership (BusinessGhana)
Award winning and leading pan African public policy, regulatory and government affairs firm, ETHICORE Political Lobbying has concluded a landmark partnership agreement with Egypt based Moharram & Partners (M&P).
ETHICORE and M&P have established the largest and first-of-its kind partnership in Africa and the Middle East. The firms are the biggest and leading indigenous public policy and government affairs agencies on the African continent.
Headquartered in South Africa with national offices in the economic centres of both Cape Town and Johannesburg, ETHICORE and its subsidiary – Africa Government Affairs Xchange (AfricaGX) has rising market coverage in 27 African and the Middle East countries.
Global economy
US: Africa can buy Russian grain but risks actions on oil (AP News)
African nations are free to buy grain from Russia but could face consequences if they trade in U.S.-sanctioned commodities such as Russian oil, the U.S. ambassador to the United Nations said Thursday.
“Countries can buy Russian agricultural products, including fertilizer and wheat,” Linda Thomas-Greenfield said. But she added that “if a country decides to engage with Russia, where there are sanctions, then they are breaking those sanctions.”
Thomas-Greenfield spoke in the Ugandan capital, Kampala, after a meeting with President Yoweri Museveni, a U.S. ally who has not criticized Russia’s invasion of Ukraine and has expressed sympathy with Moscow.
Ukraine's Zelensky: Africa gains nothing from Russian ties (The East African)
Ukrainian President Volodymyr Zelensky on Thursday warned African countries against supporting Russia’s aggression on his country, saying the continent had gained little from siding with Moscow.
Zelensky told a group of African journalists that it was in Africa’s interest to condemn the Russian invasion of Ukraine because it would amount to supporting “the truth.”
On Thursday, President Zelensky said Africa should not see the war as distant but look at Ukraine as a victim of an invasion violating international law, which African countries have signed.
The US-Led Drive to Isolate Russia and China Is Falling Short (Bloomberg)
When Group of Seven leaders gathered in the Bavarian Alps in June, they pledged to stand with Ukraine for the long haul. Their Group of 20 counterparts are proving less supportive.
Comprising nations that account for some 85% of global economic output, the G-20 is supposed to be more reflective of the world. Yet only half its number has joined the international sanctions imposed on fellow member Russia over its invasion of Ukraine.
Senior officials from the smaller group of wealthy nations have been traveling the world to make the case for a tougher economic net around Russia. They’ve been surprised by the lack of sign-on from G-20 states, even if those countries aren’t going out of their way to help Moscow circumvent the penalties.
Facing the Future: CBP Hosts First Trade Summit in Anaheim (Customs and Border Protection)
The focus was on the future at U.S. Customs and Border Protection’s first Trade Facilitation and Cargo Security Summit. Over 3,000 attendees, 1,000 on-site and more than 2,000 virtually, gathered in Anaheim, California, July 18-20, to learn more about CBP’s forward vision in a constantly changing trade environment.
“I know we have experienced some incredible challenges over the past few years. In fact, even saying, ‘incredible challenges,’ sounds like a gross understatement. Some of these challenges have been driven by the pandemic. Others are a result of global, political, economic, and environmental trends. But they’ve been difficult,” said CBP Commissioner Chris Magnus, who welcomed the hybrid audience from the Hilton Anaheim.
“CBP’s trade experts are leading the global fight against forced labor, a practice with more than 25 million victims worldwide. We know forced labor hurts vulnerable workers of all kinds, legitimate businesses and consumers. I am incredibly proud of the work CBP has done to address this issue,” said Magnus. “Over the past year, CBP has issued five new withhold release orders and two findings. So far in this fiscal year 2022, CBP has detained approximately 2,000 shipments worth an estimated $358 million.”
Chinese trade bans on Taiwan risk 'deeper predicament' as Nancy Pelosi visit leaves geopolitics 'on the mind' of businesses (Yahoo Finance)
China should think twice before unleashing more economic weapons on Taiwan to avoid blowback that could leave it in a "deeper predicament", experts and foreign business leaders say.
Beijing launched a barrage of trade suspensions on Taipei on Wednesday following the controversial visit of US House Speaker Nancy Pelosi, including export and import bans and sanctions on multiple organisations and companies for supporting "Taiwan independence".
Business Councils Call on Ottawa to Secure Trade Agreement With India (The Epoch Times)
Two business councils are urging the Canadian government to reach a trade agreement with India, as Western countries seek stronger political and economic ties with allies in the Asia-Pacific region.
The Business Council of Canada and the Canada India Business Council commissioned a report in which they recommend that the federal government forge stronger economic ties with India and develop a “comprehensive India strategy.”
“There is no path to achieving success in this massive and strategically important region without building strong and enduring economic ties with India—one of Canada’s last large, untapped trade opportunities,” said the report, published on Aug. 4.
Labour laws upgrade, simplification of taxes, stable tariffs key to India's trade: Report (The Week)
Upgrading labour laws, simplifying taxation and creating a stable tariff environment are imperatives to facilitate a larger trade between India and the world, a new report said.
'Building Resilient Global Value Chain Linkages in India: Findings from an Enterprise Survey' - a report jointly published by the Observer Research Foundation (ORF) and ORF America - examines how India can better integrate into global value chains (GVCs) in the post-COVID world.
"The risks posed by supply chain shocks have never been more visible, following the compounding crises of the US-China trade war, the COVID-19 pandemic, and the Russia-Ukraine conflict. GVCs, once viewed as the silver bullet for economic development, are coming under increasing scrutiny," the think tank said in a release.
ASEAN foreign ministers say RCEP key contributor to region's recovery strategy (Xinhua)
The Regional Comprehensive Economic Partnership (RCEP) free trade agreement would be a key contributor to the recovery strategy of the Association of Southeast Asian Nations (ASEAN), according to an ASEAN foreign ministers' joint communique released here on Friday.
In the joint communique issued after the 55th ASEAN foreign ministers' meeting (55th AMM) held in Phnom Penh, capital of Cambodia, the ministers welcomed the entry into force of the RCEP from Jan. 1, 2022.
"The RCEP would make significant contribution to our recovery strategy and continue to support an inclusive and open trade and investment architecture in the region," the communique said.
China to Focus on Trade to Deepen Africa Ties, EIU Says (Yahoo Finance Australia)
China will deepen its ties with Africa over the next decade by focusing on trade and is unlikely to be dislodged by US and European Union attempts to re-engage with the continent, the Economist Intelligence Unit said.
The Asian country is likely to keep investing in Africa’s natural resources and may look to the continent as a source of food, boosting its expenditure on agriculture, the EIU said in a report released Thursday.
China plans to surpass the EU as Africa’s biggest trade partner by 2030, and while western powers are trying to boost relations with the continent, they will struggle to catch up, the EIU said. Their relations with the continent are complicated by Europe’s colonial history with Africa and distrust of their intentions due to erratic engagement over the last few decades.
India and Mauritius held the 1st session of India-Mauritius High-Powered Joint Trade Committee on 01-03 August 2022 in New Delhi.
The High-Powered Joint Trade Committee had been constituted as per the mandate of the India-Mauritius Comprehensive Economic Cooperation and Partnership agreement (CECPA), to review the general functioning and implementation of the India-Mauritius CECPA which entered into force on 1st April, 2021. CECPA is the first trade Agreement signed by India with a country in Africa.
Both sides noted that the traditionally close, strong economic ties between the two countries touched a new high with the signing of the landmark CECPA. Appreciating the growth of the bilateral merchandise trade between India and Mauritius, which rose to USD 786.72 million in 2021-22 from USD 690.02 million in 2019-20, both sides agreed to enhance bilateral collaboration to further increase bilateral trade and realize the true potential of the bilateral relationship especially under the CECPA.
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Science, Innovation dept envisions a solid hydrogen economy by 2050 (Engineering News)
South Africa’s Department of Science and Innovation (DSI) views hydrogen as a key enabler of decarbonisation, particularly in the transport sector – heavy-duty trucking, shipping, aviation, and rail – and in major polluting industries such as steel, cement and chemicals manufacturing, as well as mining.
By 2050, government aims to have established an inclusive, competitive and sustainable green hydrogen economy. To this end, it has various policies that support the development of green hydrogen, including the Hydrogen Society Roadmap which was published in February.
SA, Botswana strengthen business relations (SAnews)
South Africa and Botswana share borders and it is therefore important for the two countries to work together, says Trade, Industry and Competition Minister Ebrahim Patel. “There are opportunities for both countries,” Patel said on Wednesday at a media briefing at the conclusion of the South Africa-Botswana Business Forum in Gaborone. He said however that both countries have high unemployment challenges. “We have to resolve these challenges, we need to create millions of job opportunities for our youth. We need to complement each other,” he said. Patel emphasised the need to start thinking about how to address the challenges facing both countries.
Traders face fines as e-customs clearance system law kicks in (Business Daily)
Traders risk up to Sh500,000 in fine or a year in jail if they fail to register online for clearance of all imports and exports as the State moves to plug loopholes manipulated to ship in or export products. This follows the creation of the National Electronic Single Window System, which is now the only entry point to register and clear all inbound and outbound cargo. The online clearance system is linked to the Kenya Revenue Authority and the Kenya Ports Authority, giving the State more tools to tame tax evasion.
“The system shall serve as a single entry point and platform for any person involved in trade and transport to lodge documents electronically, including import or export documents for processing and approval,” the Act reads in part. The law took effect on July 11 and revokes an Executive Order of 2010 that the government relied on to ensure that imports or exports are cleared electronically and ensure compliance with all taxes and duties.
KAM urges govt to address gaps in the implementation of AfCFTA (Capital FM)
The Kenya Association of Manufacturers (KAM) has urged the government to put in place measures that will enable the country to enjoy full benefits from Africa Continental Free Trade Area (AfCFTA) agreement. Speaking during the launch of KAM’s study findings on the implications of AfCFTA on Kenyan products, the association’s acting Chief Executive Officer Tobias Alando noted that even though the agreement offers the best opportunity for the country’s business goals, the lack of proper mechanisms to achieve this remains a major hindrance block. “Kenya’s export market in Africa is expected to increase with the full implementation of AfCFTA. However, if unaddressed, challenges such as dwindling country competitiveness, lack of product competitiveness, and supply chain constraints shall hinder local manufacturers from reaping the benefits that come with AfCFTA,” he stated.
Mid-year budget: Slash E-Levy rate to 0.75 or 0.5% – ISSER boss reiterates (GhanaWeb)
The Institute of Statistical, Social and Economic Research (ISSER) has called for aggressive domestic revenue mobilization through efficient tax and non-tax revenue generating measures to firm the country’s fiscal space. The Institute also called for a unified common platform for collecting property rates to boost domestic revenue.
Professor Peter Quartey, Director, ISSER, speaking at this year’s mid-year budget in Accra, commended the Government’s plan to spend within its means, but said achieving a fiscal deficit of 6.6 per cent of Gross Domestic Product (GDP) was ambitious and daunting.
The Government in the 2022 mid-year budget statement revised the country’s GDP growth rate from 5.8 per cent to 3.7 per cent in 2022.
Effort to export to other African countries: Govt outlines plans for local businesses (Business Ghana)
In a speech read on his behalf at the launch in Accra yesterday, he said the National AfCFTA Policy Framework and Action Plan was geared towards the harmonisation of relevant policies, programmes, laws, and regulations to boost the productive capacities of the private sector, particularly the small and medium scale enterprises to harness the full benefits of AfCFTA.
“A successful implementation of the Action Plan will boost the capacities of the Ghanaian private sector to take advantage of market access opportunities in Africa to promote ‘Made in Ghana’ goods and services,” he stated.
“The effective operationalisation of the AfCFTA Agreement in Ghana would significantly boost Ghana’s balance of trade, stimulate investment and innovation, diversify exports, improve food security, foster structural transformation, enhance economic growth, and above all, provide jobs for the youth,” the President stated.
We can sustain $500m oil palm investment in Edo, says Obaseki (The Guardian Nigeria)
Edo State government has built a formidable structure to sustain the gains of the $500 million investment in the state’s oil palm sector. Governor Godwin Obaseki, in a chat with Africa Report, said the investment would drive Nigeria’s diversification targets, as the plantations developed through the Edo State Oil Palm Programme (ESOPP) would provide feedstock for manufacturing companies in the country. His words: “We decided to be strategic in the development of oil palm, rubber and cassava value chains in Edo. We developed plans and went to the Federal Government for support. This is why we got financing from the Central Bank of Nigeria (CBN).
“There has to be a market. Agriculture is a business. We located companies and partnered them. We looked at what they needed and asked them to come to Edo to invest in the raw materials they needed to run their factories and plants. “One of the criteria we considered is that they must have a market for their product and require a steady source of raw materials. We asked them to walk back through the production value chain and come and site in Edo as the source of their raw materials. With this arrangement, the investment is sustainable,” he explained.
South Sudan is a very fragile post-conflict state and one of the most vulnerable countries in the world to climate-driven disasters. The pandemic reversed the economic recovery that followed the 2018 peace agreement. The oil price shock from the pandemic resulted in a massive loss of revenue, causing the government to run up expenditure arrears and resume monetary financing. This led to sharp exchange rate depreciation and runaway inflation. The policies implemented under a Staff Monitored Program (SMP) that was approved in March 2021 and supported by two disbursements under the RCF (in November 2020 and March 2021) have helped restore macroeconomic stability and eliminate a long-standing system of multiple exchange rates. Higher oil prices have dampened the effects of floods on lower oil production and sustained international reserves in the face of a rising import bill. The sharp rise in global food prices risks is exacerbating the dire humanitarian situation in South Sudan, where 70 percent of the population suffers from acute food insecurity, at a time when aid budgets are being cut.
African trade and integration news
Competition from new East Africa ports boon for importers (The East African)
Competition between old and upcoming ports on the eastern African coast could signal better alternatives for importers who have struggled with inefficiency. A new report by logistics consultancy firm GBS Africa says that while veterans at the job such as the Port of Mombasa in Kenya and Dar es Salaam in Tanzania could face rough challenges from newcomers, it could be good news for importers as they may be spoiled for choices.
The report notes that the port of Dar es Salaam offers faster and more cost-effective trade and transport solutions than Mombasa, citing that the port of Dar es Salaam is benefitting from ongoing expansion and investments.
The competition among ports has already started yielding fruits since both Kenya and Tanzania have tapped foreign investors to expand related facilities such as the northern corridor expansion as well as the refurbishment of berths in Mombasa.
“This emerging diversity creates a highly lucrative trade corridor to inland markets and population centres while attracting fresh investments into associated sectors,” the report indicated, citing the expansion of other ports, including in Somalia.
EU-SACU Poultry Safeguard Measure Arbitration (SACU)
In a historic milestone, in its final Report delivered on the 3rd August 2022, the Arbitration Panel’s Ruling on the dispute between the European Union (EU) and the Southern African Customs Union (SACU) Member States, secures a landmark victory for the SACU poultry industry. The dispute was initiated by the EU under the Economic Partnership Agreement (EPA) between the EU and the SADC EPA States (EU-SADC EPA) and relates to a bilateral safeguard measure imposed by SACU on frozen bone-in chicken cuts imports from the EU, in 2018. The EU had challenged the legal basis and compliance of the measure with the EU-SADC EPA on a number of grounds.
Dismissing the majority of the EU’s claims, in particular those pertaining to the geographical scope of the measure, the requirement for an investigation, the adequacy of the information provided to the EU as well as the request for a refund of the duties already paid, the Arbitration Panel confirmed that the EU-SADC EPA provides for a safeguard regime that departs from that under WTO rules, emphasising the developmental character of the EU-SADC-EPA.
Vodacom decries Africa’s restrictive digital economy policies (ITWeb)
Africa’s restrictive policies and practices continue to hinder the growth of the digital economy, along with the related socio-economic benefits across the continent. This is one of the biggest takeaways from a white paper published yesterday by Vodacom Group in partnership with AUDA-NEPAD, titled “Enabling policy frameworks for digital and data services for expanded economic growth and development – a focus on the SADC region”. The paper highlights that one of the keys to unlocking Africa’s digital economic growth, and resulting digital financial inclusion, is to create an enabling regulatory environment that supports the secure flow of data between jurisdictions.
“An enabling regulatory environment for digital, cloud and data services that ensures appropriate free flow of data between jurisdictions should be a priority for any country which has its development as a viable digital economy as a key objective,” says Stephen Chege, chief officer for external affairs at Vodacom Group. “The importance of free data flows within the context of the fourth industrial revolution and its unique economic value cannot be overemphasised. The enablement of secure and easily facilitated cross-border data flows is a strong predictor for African Union (AU) member states to successfully compete in the global economy and thrive in a post-COVID-19 world.”
ECOWAS Commission holds a retreat for its Interdepartmental Trade Facilitation Committee (ECOWAS)
The Directorate of Trade of the Commission of the Economic Community of West African States (ECOWAS) organised a Retreat for the ECOWAS Interdepartmental Trade Facilitation Committee (IDTFC) in Lagos, Nigeria from August 1 – 3, 2022. The 3-day retreat provided a platform for Directorates and Agencies of the ECOWAS Commission to review guiding documents on regional trade currently in drafting stage, such as the Regional Trade & Transport Facilitation Strategy (RTTFS), framework for elimination of Non-Tariff Barriers (NTBs), the Common Trade Policy (CTP), and the Trade and Investment Development Strategy.
Mr. SOFOLA highlighted the recent efforts facilitated by the Commission such as the adoption of the Supplementary Act on ECOWAS Community Transit and the establishment the ECOWAS Regional Trade Facilitation Committee (RTFC). The RTFC provides advisory recommendations to the ECOWAS Commission regarding the implementation of all instruments associated with the simplification of export, import, and transit inside and outside the region. Before declaring the meeting open, he assured members of the IDTFC that their comments and inputs will be incorporated in the draft documents prior to presentation to the Member States for consideration and adoption.
Funding secured for new dry bulk port set to boost West African trade (Global Trade Review)
A trio of commercial banks has agreed to lend €90mn towards a new dry bulk port in Côte d’Ivoire, as the West African country works to modernise its ageing trade infrastructure and grow export volumes. Rand Merchant Bank (RMB) and Standard Bank are acting as mandated lead arrangers (MLA) on the 10-year senior debt financing, while local media reports indicate Stanbic is the other lender to be involved in the deal. The funding supports the development of a multi-purpose bulk terminal in San Pedro, which is the second largest port in Côte d’Ivoire, behind Abidjan.
New EU rules risk Africa farm exports (Business Daily)
As developing countries look into ways to address food security, the agricultural sector plays a critical role in supplying food and export earnings. But this might be further affected if the leaders in these countries do not take the newly established European Union (EU) regulations seriously. The measures the European Commission unveiled seek to increase the contribution of EU trade agreements in safeguarding the climate, environment, and labour rights worldwide. It is part of the EU’s efforts to make trade greener, fairer and more sustainable. The European Green Deal is focusing on the EU climate strategy to reach net zero emissions by 2050. It is a roadmap for a socioecological transition to a low-carbon future and it provides building blocks for a green economic strategy in Europe. But what does this mean for the developing world? The changes will also have far-reaching implications in export countries like Kenya. Currently, Africa’s exports of agricultural produce to the EU and agri-food make up 16 percent of EU-Africa trade and are worth €5 billion ($19.6 billion).
In its latest economic data, the Kenya National Bureau of Statistics reported that horticulture profits increased from Sh150.2 billion in 2020 to Sh158.1 billion ($1.39 billion) in 2021. However, the upward trajectory is now under threat unless Kenya creates widespread awareness and builds the capacity to implement the rules.
African officials lay out goals ahead of the U.N. climate summit (PBS News Hour)
African officials outlined their priorities for the upcoming U.N. climate summit, including a push to make heavily polluting rich nations compensate poor countries for the environmental damage done to them. The continent will also focus on how countries can adapt to global warming and how the continent can best halt further climate-related disasters. Africa has seen debilitating droughts in the east and Horn of Africa and deadly cyclones in the south.
Other key areas for discussion include moving from high-carbon energy sources like oil and gas to renewables, and “carbon credit” schemes, where foreign governments and companies pay for tree planting in exchange for producing greenhouse gases.
Energy Minister says regional integration ideal for sustainable energy for all (Malawi24)
Malawi’s Minister of Energy Ibrahim Matola has stressed the need to have regional integration in the energy sector so as to achieve sustainable energy for all as articulated in the UN’s Sustainable Development Goals (SDGs). Minister Matola was speaking this on Wednesday 3rd August, 2022 at the 4th Tanzania Energy Congress which is currently underway in Dar-Es-Salam, United Republic of Tanzania. The minister told delegates during a session titled; “Improving Africa’s Economy Through Energy Sector Market Development Expansion,” that African countries need to work together to easily achieve SDGs 7 that advocates for sustainable energy for all.
“As a starting point, we need to review archaic laws and policies in order to improve Africa’s Economy through energy sector market development expansion. Currently, we have regional projects that Malawi has and plans to develop with its neighbors,” he said.
China to Deepen Africa Ties Over Next Decade With Focus on Trade (Bloomberg)
China will deepen its ties with Africa over the next decade by focusing on trade and is unlikely to be dislodged by US and European Union attempts to re-engage with the continent, the Economist Intelligence Unit said. The Asian country is likely to keep investing in Africa’s natural resources and may look to the continent as a source of food, boosting its expenditure on agriculture, the EIU said in a report released Thursday. Asia may see Africa’s youthful population as a source of labor for its manufacturing companies and as a market for its consumer goods, the research organization said.
China, G7 and Africa’s infrastructure challenge (The Nation Newspaper)
In the next few months, Africa’s most populous country and also her largest economy, Nigeria will get her first deepest sea port, the Lekki Deep Seaport. When fully operational, as expected before the end of the year, the port would generate estimated 170,000 jobs and rake in revenues of about $201 billion to central and state governments through royalties, taxes and duties. The 17 meter draught sea port constructed by one of the world biggest maritime engineering firm, China Harbour Engineering Corporation (CHEC) would reposition Nigeria as key maritime hub of the west and central African regions.
The Lekki Deep Seaport is a major artery in the network of infrastructure connectivity that is at the heart of China’s Belt and Road Initiative, (BRI), a framework of International Cooperation that also includes policy coordination, unimpeded trade, financial integration and deepening people to people contacts.
Accelerating Trade and Investment between India & Africa (APO)
A developing entrepreneurial relationship has surfaced in the past several years as a result of the substantial historical, commercial, and cultural ties between Africa and India. This has opened up a huge opportunity to capitalize on the innovative capacity of entrepreneurs in both regions to collaborate and solve urgent problems that affect both regions, thereby boosting trade and investment. This was the theme of the 2nd India - Africa Entrepreneurship & Investment Summit held at the Sarova Panafric Hotel in Nairobi, Kenya.
Due to its huge economic potential, the fintech sector has seen significant interest from notable investors and players in both Africa and India over the past few years. This is especially true in Africa, where the issue of financial inclusion still persists and much innovation and technology is required to guarantee that more Africans have access to financial services that can drive economic growth.
Global economy news
One of the world’s biggest shipping firms says there’s no telling when the bottlenecks disrupting global trade will ease up (Business Insider Africa)
One of the world’s biggest shipping and logistics companies, AP Moller-Maersk, said it doesn’t know when the supply chain bottlenecks that are disrupting global freight trade will end. “On the supply side, supplier delivery times remain lengthy, and it is still uncertain when capacity constraints including landside bottlenecks in trucking and warehousing will abate, the report said. The COVID pandemic and the war in Ukraine, among other global events in recent years, have stretched supply chains, leading to shortages of some goods, log-jams at ports, and surging prices for many products. Demand for goods increased during the COVID-19 pandemic, at a time when ports and factories were shuttered or limited, left freight firms dealing with a backlog of goods. More recently the war in Ukraine and growing consumer concerns around inflation have both weakened demand for shipping containers, Maersk said.
China to Lagos container shipping cost grows 203.22% in 2021 – UNCTAD (Businessday)
The cost of shipping a container from Shanghai Port in China to Lagos Port reached a record high of $8,102 per twenty equivalent units (TEU) of container in July 2021 from $2,672 per TEU in the same period in 2020, according to the United Nations Conference on Trade and Development (UNCTAD). This represents about 203.22 percent increase in freight rate, which according to UNCTAD also affected other trade routes and was due to the disruption in the global supply chain caused by the outbreak of the Covid-19 pandemic. The disruption, UNCTAD said, also resulted in global container shortages, port congestion, and delays at ports. UNCTAD in its latest report titled the ‘Review of Maritime Transport 2021,’ said the fluctuations in freight rates experienced in 2021, reflect changes in lockdown policies and varying speeds of recovery, as well as the impact of shortages of both containers and ships as well as congestion in key ports.
“These surges are likely to be amplified in most of the low- and middle-income countries of the Arab region, especially those suffering from conflicts or economic or financial crises which have had major impacts on patterns of production and consumption – and on maritime freight rates,” UNCTAD stated in the report.
Global impact of war in Ukraine: Energy crisis (UNCTAD)
Disruptions to the global energy market are putting Governments worldwide under enormous pressure. Rising energy prices are accelerating the cost-of-living crisis and sustaining the vicious cycle of constrained household budgets; increasing food and energy poverty; and increasing social unrest. In this context, safeguarding countries’ commitments to the Paris Agreement and the 2030 Agenda for Sustainable Development will require significant efforts from all involved stakeholders. Policies that address the short-term emergency while ensuring countries’ climate-related and other sustainable development commitments must be pursued. Such policies are available to both developed and developing countries, although the mix varies depending on geography, income level and commodity status.
Climate Explainer: CCDRs (World Bank)
Climate change is profoundly connected to development and human wellbeing. Unchecked, climate impacts could push 132 million people into poverty over the next 10 years. Climate change also interacts with other social, economic, and environmental pressures – as is now evident from repeated and more frequent extreme natural events and disasters - compounding risks that can increase vulnerability, exacerbate grievances, and deepen pre-existing fragility. And despite having contributed the least to global greenhouse (GHG) emissions, developing countries are especially vulnerable to the adverse impacts of climate change.
But not only does climate change pose a serious threat to sustainable development, now and in the future, the converse also applies: countries can achieve good development outcomes, including by reducing poverty and boosting sustainable growth, while taking action on climate. Achieving this, though, requires a clear understanding of which interventions will have the highest impact, what they will cost, what are the tough policy choices that may be needed; and that’s what these CCDRs will aim to provide.
BRICS-led bank plans US dollar bond to downplay Russia ties (Devex)
The New Development Bank is in “active” talks with investors about issuing a new U.S. dollar bond before the end of the year — a move aimed at shoring up its image in financial markets following a Fitch Ratings downgrade of the institution last month over its links to Russia, Devex has learned.
The bank is preparing an investor roadshow for later this year in which it will make clear that the new bond will be used to fund projects in all its member states except Russia, NDB Chief Financial Officer Leslie Maasdorp told Devex. NDB’s founding members include Brazil, Russia, India, China, and South Africa, known collectively as the BRICS economies.
The Shanghai-based lender put all its operations in Russia on hold in March, just after the invasion of Ukraine and the imposition of a slew of Western sanctions on Moscow. For the upcoming bond, this means the financing it raises will not be used for Russian investments. “The bank is presently in active dialogue with our investor base to explore the feasibility of a benchmark-size U.S. dollar bond offering in the final quarter of 2022,” Maasdorp said.
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Local news
South Africa’s trade surplus increases mainly due to an increase of precious metals and stones export (Cape Business News)
South Africa’s trade surplus narrowed to R24.2bn in June 2022, compared to the revised surplus of R30.9bn for the previous month. The surplus was slightly lower than market expectations of R25.5bn and was the result of a small increase in exports of 1.6% month-on-month and a higher increase of 6.3% in imports compared with May 2022. The small and disappointing growth in exports is partially explained by the widely reported problems experienced in and by the mining industry. This is evident from the fact that the exports of precious metals and stones increased by R2.5bn (+6%), and in contrast, the exports of mineral products declined by R3.2bn (-6%). Whilst both precious metals (PGMs, gold, diamonds etc.) and mineral products (different types of ores, coal etc.) are experiencing high global prices, only the precious metals industry is benefitting fully from the price bonanza.
The conundrum lies in the fact that the former is exported by air to its final export destinations, whilst the latter is dependent on transport by rail to the various South African ports. The inability of both rail transport and ports to provide an effective and efficient service to the industry is impacting the industry and the country. However, the mining industry also slightly contributed to the declining production volumes experienced by certain commodities amidst a commodity boom.
Poultry association says capacity built under masterplan may lie idle (Engineering News)
The South African Poultry Association (Sapa) says it is disappointed in the suspension of anti-dumping duties on certain imported chicken products, adding that the South African industry has invested R1.5-billion in expanding local processing capacity in support of the Poultry Sector Masterplan and created more than 1 500 new jobs. Emerging farmers have spent more than R600-million to build new farms to support the increase in capacity at a time when input costs are against the industry on the back of global macroeconomic issues, says Sapa Broiler Organisation GM Izaak Breitenbach.
Rail constraints costing South African miners billions of rands in lost exports (Engineering News)
Despite bulk mineral exports being State-owned Transnet’s single biggest client base, South Africa is unable to access the full benefits of minerals exports, Minerals Council South Africa CEO Roger Baxter told delegates attending the first day of the South African Heavy Haul Association (SAHHA) 2022 conference on August 2. He said it had been a challenging last couple of years, with a deterioration in Transnet’s rail performance.
EU increases agri-food exports to South Africa (Agriland.ie)
The latest EU agri-food trade figures released recently show that the total value of EU agri-food trade reached €31.4 billion in April 2022, a 14% increase on to April 2021. Exports of agricultural products from the EU decreased by 5.4%, mainly due to lower exports to Russia (-26%) and China (-11%). Imports of agricultural products from the EU reached a value of €13.5 billion (1.2% less than in March), giving an agri-food trade balance of €4.4 billion for April 2022. This is a decrease of 16% month-over-month. Overall, trade flows from January to April 2022 are significantly higher than the corresponding period last year, with exports increasing by 10% and imports increasing by 28% due to high world prices.
Cheap chicken gets dumping customs pass (Namibian)
NEITHER Namibia nor South Africa will impose anti-dumping tariffs on chicken imports from Brazil, Denmark, Ireland, Poland, and Spain. This is because food prices are too high, the International Trade Administration Commission (Itac) announced yesterday. After an investigation, the commission determined those countries were dumping chicken in the Southern African Customs Union (SADC) area at below the cost of production, “causing material injury” to local producers. Under global trade rules, this allows South Africa to impose extra import duties to level out the price and so protect local producers from predatory behaviour. Itac had recommended just such tariffs to South African trade and industry minister Ebrahim Patel, who makes the final decision on such matters.
“The minister approved the commission’s recommendation. However, in making his decision, the minister considered the current rapid rise in food prices in the Southern African Customs Union market and globally, and the significant impact this has, especially on the poor, as well as the impact the imposition of the anti-dumping duties may have on the price of chicken as one of the more affordable protein sources.”
Agri SA assures wool exports are safe, while ban on exports to China persists (Engineering News)
Industry body Agri SA and the National Wool Growers’ Association of South Africa (NWGA) have noted concern about the “unjustifiable” ban on wool exports to China owing to Foot-and-Mouth Disease outbreaks in parts of South Africa. The first wool auction for the 2022/23 season is scheduled for August 17; however, with up to 80% of the clip normally destined for China, the ban will have a “devastating” effect on the local wool industry, the industry bodies point out. The value of the South African wool clip is about R5-billion a year. Since the ban was announced in April this year, the South African wool industry has lost an estimated R734-million in wool exports to China.
Impoverished Zimbabweans turn to scrap metal trade as inflation bites (Reuters)
Shepherd Chowe pushes a cart filled with tins, iron rods and other metallic objects down a dusty pathway in Hopley, a poor settlement about 15 km west of Zimbabwe’s capital, Harare. “I start moving around the township at 8 a.m. ... asking people for scrap metal or anything metallic they are not using anymore,” Chowe said, adding that on a good day he takes home $40.
Chowe is among Zimbabweans selling scrap metal for survival as the cost of living soars, piling pressure on a population already facing food shortages and high unemployment, stirring memories of economic chaos years ago under veteran leader Robert Mugabe’s near four-decade rule.
Zimbabwe’s steel industry has been struggling since the collapsed of the Zimbabwe Iron and Steel Company (Ziscosteel) more than a decade ago. However, in recent years, small steel producers working with scrap yard dealers are picking up the pieces.
High-Level Debt Resolution Forum on the cards (Chronicle)
Zimbabwe is planning to host a High-Level Debt Resolution Forum with development partners and other stakeholders aimed at building consensus on the process and procedures of resolving the country’s external debt and arrears clearance.
The country’s external debt continues to burden the economy by restricting access to low cost, long-term financing required to support the desired medium to long term growth trajectory. To address the challenge, Finance and Economic Development Minister, Professor Mthuli Ncube said the Government has developed the Arrears Clearance, Debt Relief and Restructuring (ACDRR) Strategy aimed at restoring debt sustainability. According to the strategy document, the country is ready and geared for private sector-led inclusive economic growth.
NRZ takes up import substitution challenge (The Chronicle)
The National Railways of Zimbabwe (NRZ) has set focus on substituting imports through domesticating critical engineering services under its Integrated Rail Technologies (Inter Rail Tech) arm.
The firm’s engineering services unit provides internal services to the parent company and also manufactures mining equipment spares for small-gscale and established mining businesses. NRZ participated at the recent Mining, Engineering and Transport (Mine Entra) Exhibition in Bulawayo where it showcased its diversified services. Company spokesperson, Mr Martin Banda, said the integrated rail technologies unit consists of different engineering departments capable of providing solutions to challenges faced by local industries, including miners.
“It has been noted that there is a need for industries and miners to work together, which will result in cutting down on looking for talent and engineering components out of the country,” said Mr Banda.
Zimbabwe’s industry is on recovery mode, riding on the back of efforts by the Government to create a stable operating environment through initiatives such as the foreign currency auction system.
Secure Mombasa port’s strategic trade position (Business Daily)
Kenya must protect its transport corridor by investing in the Mombasa port amid emerging competition from other facilities in the region. Mombasa currently handles 3,000 containers daily and many landlocked countries in the region rely on it. A report by advisory firm GBS Africa shows that plans to develop Lamu and Tanzania’s Bagamoyo into transshipment ports could in the long run give them an advantage over Mombasa in terms of the size and number of vessels handled and the time taken to move containers. A shift to other ports will remove Mombasa’s historic shine as a strategic trading post and the main gateway to international markets
Kisumu Shipyard will expand regional trade — Uhuru (The Star, Kenya)
Trade within the East Africa Community is expected to expand greatly with commissioning of the Kisumu Shipyard Limited and floatation of the MV Uhuru II. President Uhuru Kenyatta on Tuesday commissioned the shipyard where the Kenya Defence Forces built its first ship, the MV Uhuru II cargo carrier. He said the project will be crucial in growing the country’s economy. The EAC member states are Kenya, Uganda, Rwanda, Tanzania, Burundi, South Sudan and DR Congo. “The port will create jobs and business opportunities for Kenyans and increase their income if put into good use,” Uhuru said.
Tanzanian, Zambian leaders agree to revive TAZARA railway (CGTN Africa)
Tanzania and Zambia on Tuesday agreed to mobilize resources to revive the TAZARA railway to make it modern and vibrant. “Tanzania and Zambia are long-time friends. We have agreed to further promote these relations which now should be translated into economic and trade relations to improve the lives of our people,” said President Hassan.
For his part, Zambian President Hichilema said: “We need to work together because our relationship and co-existence is historical, we were together in the struggle for independence, since then we have worked together and our people have been one.”
Uganda mulls revised borrowing model to manage debt (The East African)
Uganda is considering changes to future borrowing in the light of rising debt, with Ministry of Finance officials saying such a move is meant to manage debt and reduce the burden of repayments. Maris Wanyera, director for cash and debt policy at the Ministry of Finance, says one way will be to re-examine ratios of interest payments to tax revenues, as well as interest payments against export earnings, in addition to the debt-to-economic growth balances. “Future borrowing will be biased towards concessional loans and the domestic debt market for purposes of budget support, but we shall not acquire commercial loans for project implementation,” Ms Wanyera told The East African. Uganda’s debt-to-gross domestic product (GDP) ratio, usually measured as the level of indebtedness based on national wealth, rose to 54 percent in June from 49.1 percent by end of May based on cumulative debt statistics captured between July 2021 and June 2022.
It means Uganda owes Ush73.5 trillion ($19.2 billion), with external debt valued in excess of Ush40 trillion ($10.5 billion), recent government data shows.
Ghana launches National AfCFTA Policy Framework and Action Plan (Ghana Business News)
Ghana government has outlined interventions geared towards the harmonisation of existing laws, programmes, policies, and regulations to boost Ghana’s trade with Africa under the African Continental Free Trade Agreement (AfCFTA). The interventions were highlighted in a National AfCFTA Policy Framework and Action Plan that provided policy prescription and strategic objectives with focus on trade facilitation, trade policy, infrastructure, enhancing productive capacity, trade information, market integration and finance. The document was put together by the AfCFTA Inter-Ministerial Committee, National AfCFTA Steering Committee and seven Technical Working Groups that comprised of representatives from the private sector, Senior Government Officials, and other technical experts.
At the launch on Tuesday, Mr Kojo Oppong Nkrumah, the Minister of Information, who launched the document on behalf of President Nana Addo Dankwa Akufo-Addo, said the implementation of the framework was crucial to ensuring Ghanaian businesses exported significantly into the African continent.
FULL TEXT: Trade Minister’s speech at launch of National AfCFTA policy framework (GhanaWeb)
Trade Facilitation: Stakeholders fault Customs Bill (New Telegraph)
Stakeholders in the port sector have said that the 283 clauses in the Nigeria Customs Service (NCS)’s 2022 Draft Bill with grey areas could hamper trade facilitation, import and export activities and the nation’s manufacturing potentials, if not urgently reviewed
the Nigeria Customs Service Bill 2022, surfaced at the National Assembly with 283 clauses of grey areas. Top among the drawback of the new bill was the scheme to seek the creation of ministry of Customs with a further constitutional clause that seeks the appointment of a retired Customs officer as minister.
Redefining business models necessary for SMEs’ growth (Businessday)
With poor power supply in Nigeria, small and medium enterprises (SMEs) incur additional operational costs when they operate generators to power their businesses. Coronavirus practically changed the business models of many firms. Just about the time the world thought the crisis was gradually coming to an end, the prices of crude oil skyrocketed, thus increasing the pains for businesses, which come in the form of higher costs of raw materials. It is thus surprising that some Nigerian businesses still stick to the old ways of doing things. The old model produced poor customer convenience and a low customer satisfaction. That is why the order of the day now is innovation around technology adoption in businesses to improve performance and retain customers.
Nigerian businesses need to raise their game due to the increasing competitiveness on the African markets as the African Continental Free Trade Area (AfCFTA) gains more traction and because of the urgency to create more jobs for the increasing number of unemployed Nigerians who are getting more frustrated daily.
Nigeria commits to energy self-sufficiency by 2026 – NAPIMS chief (WorldStage)
The Federal Government of Nigeria has reiterated its commitment to achieving self-sufficiency and net exporter of energy resources by 2026. Mr Bala Wunti, Group General Manager, National Petroleum Investment Services (NAPIMS) said at the 2022 Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE) on Tuesday in Lagos that though the government had pledged to achieve net zero carbon emission by 2060, its priority remains reducing energy poverty in the country with its abundant hydrocarbon resources.
Speaking during a panel session on “Sustainable Energy Transition Strategy: The Role of Legislative Frameworks and Investment Programmes”, he said the government’s target was to attain zero dependence on imported energy, both primary and secondary, as well as becoming a net exporter of secondary energy resources by 2026.
Minister tasks industries, pharmacists on vaccine production (The Guardian, Nigeria)
The Minister of State, Federal Ministry of Industry, Trade and Investment, Amb. Maryam Katagum, has urged Nigerian pharmaceutical companies to utilise the licensing provision of the TRIPS Waivers Agreement for COVID-19 to establish vaccine production plants for the country. Katagum gave the advice at the 9th African Day of Standardisation 2022 Symposium, organised by the Standard Organisation of Nigeria (SON) in collaboration with the African Organisations for Standardization (ARSO) in Lagos. With the theme: “Promoting the African Pharmaceutical and Medical Devices Industries Through Standardisation”, the Minister explained that following WHO’s declaration of the coronavirus as a global public health emergency and inability of some countries to get the COVID-19 vaccine, some countries have issued compulsory licences to enable them to start manufacturing of vaccines within the next five years.
Under the Revitalized Agreement on the Resolution of Conflict in South Sudan (R-ARCSS), the peace process to end South Sudan’s civil war has achieved some notable milestones since 2018. However, progress has been slower than anticipated, and the global pandemic and devastating floods have further impeded the recovery from the sharp contraction of the economy during the civil war years. South Sudan remains highly dependent on oil, which accounts for nearly all of exports and 90 percent of government revenue. This leaves the country exceptionally exposed to oil price fluctuations. Moreover, the population is critically reliant on international humanitarian aid. Off-budget support from international donors provides for most of South Sudan’s social spending but is set to decline amid shrinking aid budgets and the rising cost of providing such aid.
African trade and development news
Africa must adopt single trade currency and stop using U.S dollars – Afrexim Bank COO (MyJoyOnline.com)
The West African Chief Operating Officer (COO) of the Afrexim Bank, Eric Intong has underscored the need for Africa countries to introduce a common local currency on the continent as against the use of the dollar. This, he argues will help check exchange rate depreciation on the continent. Speaking at the University of Professional Studies, Accra (UPSA) Law School, Africa Trade Round Table 5, Mr. Intong warned that the implementation of the African Continental Free Trade Agreement (AfCFTA) will face serious challenges if a common currency is not introduced to facilitate trade. He stressed that the inability of African countries to develop a common currency to trade with adds more cost to moving goods on the continent”
“If we stop paying African trade in dollars that is going to reduce the pressure on our currencies. We have made that estimate and it is at $5 billion annually. This will even be more once we start operating and the data from the Pan-African Payment and Settlement System (PAPSS)”, he said.
He disclosed that trade assessments undertaken in the West African region show that pressure on local currencies in the sub-region could drop if common currency is used for trading even among West African nations
West African Bakers Aim to Reduce Dependence on Imported Grains (VOA)
Commercial bakers from eight West Africa countries are doing what they can to reduce their dependence on foreign wheat and strengthen their nations’ food security by forming a trade association. For VOA Allison Fernandes reports from Dakar, Senegal.
Zim to participate at SADC annual industrialization week (Chronicle)
ZIMBABWE is expected to participate in the sixth Southern Africa Development Community (SADC) annual industrialisation week, a platform that brings together multiple faceted players to explore ways on how the region can contribute to poverty reduction through industrialisation and structural transformation of economies. The Democratic Republic of Congo is hosting the event which kicks off today and runs until Saturday under the theme “Promoting industrialisation through agro-processing, mineral beneficiation, and regional value chains for inclusive and resilient economic growth”. In a statement, the SADC secretariat said the annual event provides a platform for member states, the private sector, international cooperating partners, multinational corporations, regional and global policy makers, research institutions and academia, small and medium enterprises, development finance institutions and civil society to interact and share experiences on how best the region can contribute to poverty reduction through industrialisation and structural transformation of our economies.
The SADC Council of Ministers endorsed the convening of the annual SIW to intensify engagement with various partners, including the private sector to accelerate the implementation of the SADC Industrialisation Strategy and Roadmap 2015-2063.
EABC launches online SMEs finance access platform (New Vision)
The East African Business Council (EABC) has launched the EAC Small and Medium Enterprises (SMEs) online platform to ease access to cheap and affordable finances from the available capital in the region. According to John Bosco Kalisa, the EABC Chief Executive Officer, the level of regional intra-trade is low and there is a need to negotiate better. Kalisa says that the region is blessed with the unveiling of Equity Bank’s $6b SME fund and $1b from Afriexim Bank and the joining of the Democratic Republic of Congo (DRC) into the East African Community. “Our role as EABC will be to coordinate SMEs focal points across all the 6 partner states in the region hoping to double opportunities created by the African Continental Free Trade Area (AfCFTA) to benefit from over 130 million people in the region,” he explained during the launch of the EABC portal at Hotel Africana last week. However, Kalisa acknowledges that there are numerous challenges facing SMEs in the region despite the fact that 90% of the SMEs play a vital role in the livelihoods of the people.
The African Union Releases the Continent’s First Collective Climate Response Framework (tralac)
In February 2022, the African Union endorsed the continent’s first collective climate response framework. The AU’s Climate Change and Resilient Development Strategy and Action Plan (2022-2032) released at the end of June, comes at a time of growing evidence Africa is one of the most vulnerable regions to the impacts of climate change. This is due to high exposure to climate hazards, reliance on climate-sensitive sectors (such as agriculture) and low adaptive capacity.
A booming tech sector can unleash pan-African trade (Chatham House)
The Africa Continental Free Trade Area (AfCFTA) not only lays the groundwork for a single market across the continent, it can act as a driving force to unleash the full potential of the technology revolution that is under way across the African continent. To help achieve this, the AfCFTA must go beyond simply lowering barriers to the movement of goods and services, to what the World Bank calls an ‘FDI [foreign direct investment] deep scenario’. This requires harmonizing policies on investment, competition, intellectual property rights and e-commerce to encourage FDI at a greater scale.
There is no doubt the African tech industry is growing. In 2021, 681 African technology companies raised $5.2 billion in equity venture funding, up from $2 billion in 2019, according to Partech Partners’ annual Africa Tech Venture Capital report. It is understandable why the industry has attracted global venture capital. While tech businesses are often initially focused on meeting needs in their home markets, most have a strong desire to tap into the pan-African market, with its 1.3 billion consumers across 54 countries and a combined GDP of $3.4 trillion. This in turn should attract global venture capital to invest in Africa.
The AfCFTA has created a framework for technology-led companies to scale across the continent in a way that will impact digital infrastructure, logistics, energy and much else. For example, Africa’s hyperscale data centre capacity would benefit from the ability to locate centres in the lowest cost jurisdiction with the best energy availability and to use that to power cloud storage across the continent.
Similarly, logistics and other sectors would be transformed if the information on goods in transit, such as digital customs documentation, could move easily across borders while being tracked across all 54 countries. Financial services would also benefit from the ability to pay across borders in a low-cost, frictionless way.
African airlines caught in Ukraine turbulence (The East African)
The war in Ukraine is eating into earnings by airlines that have had to endure rising costs of jet fuel. And since Russia invaded Ukraine in February, cargo air freight and air tickets charges have increased to match the rise in jet fuel prices, engaging a reverse gear to an industry already struggling with post-Covid-19 recovery. According to the African Airlines Association, airlines on the continent are likely to post losses of up to $4.1 billion this year on the back of expensive jet fuel. This is equivalent to 23.4 percent of 2019 revenues. In a fight-back, the airlines have joined forces to negotiate better prices and a steady flow of jet fuel in a bid to help stave off a potential crisis caused by supply issues and soaring costs.
African Airlines Association Secretary-General Abderahmane Berthe’ said last week that a committee, which includes major carriers such as South African Airways and Kenya Airways, is set to secure deliveries for 12 months starting this month.
The youth will drive Africa’s digital economy; hence the need to invest in their skills development to accelerate innovations and growth on the continent, African Development Bank Director General for East Africa Nnenna Nwabufo said. Speaking at the 9th World Financial Innovation Series in Nairobi, Kenya, on 19 July, she noted that the youth are ambitious, enterprising, and eager for change. “Africa’s young people are the most avid adopters of ICTs and digital solutions.” Recent statistics show that 60% of Africa’s population is below 25 years old. “We anticipate a future that will be very different from today in terms of innovation, enterprise, and job and wealth creation,” Nwabufo added.
SADC Secretariat implementing Intra-ACP Climate Services and Related Applications Programme (SADC)
The Southern African Development Community (SADC) Secretariat is implementing the Intra-African Caribbean and the Pacific (ACP) Climate Services and Related Applications (ClimSA) programme across the Southern Africa region. ClimSA is a six-year project which aims to improve the production, access to and use of climate information, services and applications for decision-makers.
As one of seven regional organisations, SADC Secretariat signed the Contribution Agreement for ClimSA with the EU in October 2019 and launched the programme in April 2021. The total cost of the programme is US$8,748,000 and is funded by the 11th European Development Fund. The ClimSA programme also features a Focus Country, in which some activities will be implemented at the national level. In the SADC Region, Angola has been identified as the first Focus Country.
Horn of Africa faces most ‘catastrophic’ food insecurity in decades, warns WHO (UN News)
More than 37 million people are facing acute hunger, with approximately seven million children under the age of five acutely malnourished in the region. While finding food and safe water is the absolute priority, WHO said that ensuring a strong health emergency response is needed to avert preventable disease and deaths. The UN agency is calling for $123.7 million to respond to rising health needs and prevent a food crisis from turning into a health crisis. “The situation is already catastrophic, and we need to act now,” said Ibrahima Soce Fall, WHO Assistant Director General for Emergencies Response. “We cannot continue in this underfunding crisis”.
Climate change, conflict, rising food prices and the COVID-19 pandemic have compounded one of the worst droughts in the region in recent decades, according to the WHO appeal.
Global economy news
How can we harness aid for trade for a just transition to sustainable trade? (Trade for Development News)
Aid for trade is a crucial part of the integrated policy approach needed for trade and trade policies to advance sustainable development and support environmental objectives in least developed countries. At the Eighth Global Review of Aid for Trade on 27–29 July 2022, governments and stakeholders shared views on how best to harness aid for trade to support a just transition to sustainable trade that addresses the needs of developing and least developed countries.
As governments and stakeholders work to promote the economic transformations vital to achieving resilient, low carbon, and sustainable development, aid for trade is an important component of the financing and partnerships required to support a just transition for LDCs that supports new economic opportunities and decent work.
UNIDO Director General calls for a fairer global trade system with binding international standards (UNIDO)
UNIDO Director General Gerd Müller took part in the World Trade Organization’s Eighth Aid for Trade Global Review with the theme “Empowering Connected Sustainable Trade”. In his introductory remarks at the Opening Plenary session, Müller called for a move towards a fairer global trade system, with increased investment in productive capacity in developing and least developed countries. Moreover, he declared it a “moral must” that international social and ecological standards be established, respected and enforced to prevent the exploitation of nature, people, and especially children, in global supply chains.
Müller later participated in the roundtable discussion on “Better Trade for Better Health” focusing on the fight against illicit trade in medical products. He drew attention to the urgent need to combat substandard and counterfeit products and expand high quality manufacturing capacity for vaccines and essential medicines worldwide to assure a fair availability of these life-saving medicines and to avoid a repetition of the disastrous imbalance in the distribution of COVID-19 vaccines.
TIR needed to boost connectivity of landlocked developing countries (IRU)
The United Nations Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS) and the Republic of Botswana conducted, in close collaboration with World Trade Organization (WTO), a session on improving the connectivity of landlocked developing countries (LLDCs) last week. The session took place during the Aid for Trade Global Review 2022.
IRU’s TIR Director Tatiana Rey-Bellet outlined the benefits of TIR in improving transit connectivity, facilitating cross-border trade and turning landlocked countries into land-linked countries. The recent implementation of TIR and digital TIR solutions in LLDCs of Central Asia is a successful example of the economic growth potential when transit runs under TIR.
Highlighting the relation between the WTO’s Trade Facilitation Agreement (TFA) and the TIR Convention, Tatiana Rey-Bellet commented: “The TIR system provides the necessary mechanisms, ensuring both security and facilitation of traffic in transit. The principle of mutual recognition under TIR eliminates the burden of filing a transit guarantee at the entry to each country. With TIR, transport does not need to stop at each border and the same guarantee applies for the whole journey. Moreover, identical information on the transit movement is provided in advance to all customs authorities along the itinerary. This way, TIR supports the implementation of the WTO’s TFA and contributes to boosting intra- and inter-regional trade.”
Transforming the Global Economy: A Key Role for the IFIs (Modern Diplomacy)
SMEs play a significant role for the economic growth in developing countries, such as Indonesia. They are estimated to represent around 90% of the businesses and 50% of employment worldwide. Data per May 2021 from the Ministry of Cooperatives and SMEs shows that there are more than 64 million SMEs actors in Indonesia that contribute to roughly 61% of national GDP with over 97% of total labour absorption. With this such huge scale of business representation, it is rather important to put more effort bolstering SMEs in Indonesia to be more resilient and sustainable for the benefit of the national economic growth as well as public welfare improvement.
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Local news
Increased import duties will help local industry compete against dumped goods – SATMC (Engineering News)
Industry association the South African Tyre Manufacturers Conference (SATMC) says more than 70% of tyres sold by its members are produced in South Africa. It further notes that its application to the International Trade Administration Commission of South Africa (Itac) is part of efforts to rescue the local tyre industry. The SATMC’s comments follow a briefing earlier this week by the road transport and freight industries, as well as the Tyre Importers Association of South Africa (Tiasa), in which they said they would be opposing the application to Itac by domestic tyre manufacturers seeking increases in respect of import tariffs for tyres originating from China. Tiasa said it was worried that the proposed tariff increases would raise the prices of tyres in South Africa.
“The SATMC supports healthy trade and competition at fair prices. However, tyres designed and manufactured in China are imported unfairly into South Africa at unsustainable, rock-bottom rates, which limits the competitiveness of domestic manufacturers.
Govt suspends chicken import tariffs to ‘help cash-strapped consumers’ (Engineering News)
The South African Meat Imports and Exporters Association (Amie) has welcomed national government’s decision to suspend anti-dumping duties on chicken imported from Brazil, Spain, Poland, Ireland and Denmark for 12 months. Trade, Industry and Competition Minister Ebrahim Patel indicated in the Government Gazette on August 1 that, in making the decision, government considered the current rapid rise in food prices in the Southern African Customs Union (SACU) market and globally, and the significant impact this has on the poor. Patel said the imposition of anti-dumping duties may impact on the price of chicken as one of the more affordable protein sources. The Minister therefore decided to suspend the imposition of anti-dumping duties for 12 months.
South Africa: Agriculture minister steps up efforts to save citrus shipped to EU (The Africa Report)
“Our farmers must have confidence that our minister and the department are working around the clock to negotiate a positive outcome,” says Reggie Ngcobo, spokesperson of the agriculture department. The short-term goal is to negotiate for the citrus consignments to be off-loaded, which would avoid a worst-case scenario of the produce being destroyed. However, South Africa has lodged a formal dispute against the EU at the World Trade Organisation. The trade fracas has caused an uproar among South Africa’s citrus-growing farmers and even reached the highest corridors of power, with the issue being raised when European Council president Charles Michel met President Cyril Ramaphosa a week ago. South African citrus exports to the EU generate more than €1bn ($1bn) for the industry, according to the CGA.
New-vehicle sales, exports surge – but compared with a weak July 2021 (Engineering News)
Domestic new-vehicle sales in July surged by 30.9%, to 43 593 units, compared with the same month last year. The Automotive Business Council warns, however, that last month’s performance was distorted by the cyberattack on Transnet, as well as the widespread riots that plagued parts of the country in July last year.
Trade, Industry and Competition celebrates 28 years of bilateral trade relationships between South Africa and Botswana (South African Government)
In celebration and commemoration of 28 years of bilateral economic relations, the Ministry of Trade and Industry of the Republic of Botswana together with the Department of Trade, Industry and Competition (the dtic) of the Republic of South Africa are convening a High Level Business Forum and Roundtable on the 03rdand 04th of August 2022, in Gaborone, Botswana.
both countries anticipate the following outcomes: identification and recommendation of measures to address trade and investment barriers between the two countries; identification of trade and investment opportunities as a basis to strengthen cooperation at government and private sector level to advance localization, joint export promotion efforts and industrialization efforts identification of a package of concrete actions to create a conducive environment to strengthen business to business linkages and cooperation to support the implementation of Southern African Customs Union (SACU) Regional Value Chains and the African Continental Free Trade Area (AfCFTA).The Deputy Director General for Trade and Investment South Africa at the dtic, Ms Lerato Mataboge says this session is critical in cementing ties between the two countries.
Tanzania’s meat exports to Middle East hit record high (The Citizen)
Tanzania exported a record 10,000 tonnes of meat to the Middle East in the first six months of this year. This offers prospects of a reliable market there as only 7,000 tonnes were exported during the whole of 2021.”By December this year, the tonnage will certainly be double the amount exported until June,” said Livestock and Fisheries minister Mashimba Ndaki. He revealed this during a regional meeting on meat production for the Southern Africa Development Community (Sadc) member states.
Import cover in six-year low as bond cancelled (Business Daily)
Kenya’s import cover has fallen to the lowest levels in six-and-a-half years after the National Treasury cancelled more than a $1 billion sovereign bond, shrinking the country’s stock of dollar reserves. The Central Bank of Kenya last Thursday held foreign currencies amounting to $7.74 billion (Sh919.90 billion) which can cover the country’s import needs for 4.46 months, the lowest backup since 4.44 months of cover on January 28, 2016.The foreign exchange reserves are largely tapped for government payments like servicing external debts and essential government imports such as medicines.
Kenya abandoned plans to borrow at least $1 billion (Sh118.85 billion) from international capital markets — Eurobond — in the recently ended fiscal year after interest demanded by investors doubled to about 12 percent from 6.3 percent Kenya paid a year earlier for a similar amount.
The import cover is, however, still within the target level of four months, but has fallen below the desired 4.5 months cushion recommended by the seven-nation East African Community bloc.
Kenya risks losing Sh1.5bn coffee market as Japan flags local exports (Business Daily)
Kenya risks losing the Sh1.5 billion Japanese coffee market after the authorities in Tokyo raised a red flag over the use of non-recommended pesticides in the produce.
The Japanese said samples taken out of Kenyan coffee have been found to have Chlorpyrifos- an active ingredient found in the insecticides and which is not recommended for use in coffee. The authorities say they detected 0.06 parts per million in the coffee that was sampled, which was above the required minimum of 0.05 percent. Japan is currently Kenya’s sixth largest importer of coffee having earned the country Sh1.5 billion in foreign exchange last year.
Zimbabwean minister decries low level of trade with Rwanda (The New Times)
Zimbabwe’s Minister of Foreign Affairs and International Trade, Fredrick Shava, has bemoaned the low levels of trade and economic cooperation with Rwanda saying this does not match the levels of friendship the two countries enjoy. Shava said there is an urgent need to enhance trade and economic cooperation between Rwanda and Zimbabwe in line with the cordial relations the two countries enjoy.
“The framework of the Zimbabwe Rwanda Trade and Investment Conferences which we have started implementing should therefore spur us to greater heights in this field of economic endeavor,” Shava said. “I am confident that coupled with opportunities presented by the African Continental Free Trade Area our economic and trade relations will greatly improve.”
Both countries have held reciprocal trade and investment conferences aimed at identifying and exploiting opportunism presented by each of the two countries.
Zambian Prez underscores the need for low-cost capital for Africa (News Ghana)
President Hichilema Hakainde of the Republic of Zambia has expressed concern that national incomes for African countries remained low coupled with high inequality and poverty rates partly due to huge infrastructure deficits and low levels of human development and private investment. To address this the Zambian President underscored the need for Africa to access low-cost capital and a establish predictable, competitive and stable economic policy environment.
President Hichilema stated in a speech read on his behalf at the AU Member States Ministers of Finance, Monetary Affairs, Economic Planning, and Integration which focused on “Improving Africa’s access to Capital: Debt Management and the Rising Influence of Credit Rating Agencies.” A document made available to the Ghana News Agency in Tema explained that the 5th Ordinary Session of the Specialized Technical Committee also made far-reaching recommendations on assessments by the Member States on the state of the debt crisis in their respective countries as a way of promoting transparency and accountability, which in turn facilitates debt restructuring and reduces vulnerabilities.
GEPA to establish Export School and Impact Hub in Kumasi (GhanaToday)
The Chief Executive Officer (CEO) of Ghana Export Promotion Authority (GEPA), Dr Afua Asabea Asare, has disclosed that the Authority will be establishing an Export School and Impact Hub in Kumasi. She said this when she called on the Ashanti Regional Minister, Mr Simon Osei-Mensah, at his office in Kumasi after a broadcast show GEPA undertook to sensitize the public on available opportunities under the African Continental Free Trade Area (AfCFTA). Dr Asare said the school is a strategy adopted to build and expand the required human capital for the export industry.
The CEO said the Impact Hub is designed to provide value-added services to Small and Medium Enterprises because it incorporates other entities like the Ghana Standard Authority, Food and Drugs Authority and the Food and Agriculture Ministry.
Egypt, Djibouti discuss developing trade exchange, joint investments (Daily News Egypt)
Egypt’s Minister of Trade and Industry Nevine Gamea met Djibouti’s Minister of Trade and Tourism Mohamed Warsama Dirieh and his accompanying delegation in Cairo on Monday. The meeting discussed ways to develop joint economic and trade relations between the two countries. The meeting also tackled the current global economic developments in light of the COVID-19 pandemic and the Russian-Ukrainian crisis.
The volume of trade exchange between the two countries witnessed a tangible development during the past year, reaching $95m, compared to $82.1m in 2020, an increase of 15.7%. Egyptian exports to Djibouti amounted to $88.3m, and Egyptian imports reached $6.7m. The most prominent goods of trade exchange between the two countries included nitrogen fertilizers, mixtures of aromatic materials, cleaning preparations, live camels, and Arabic gum, according to the Egyptian Minister.
Nigeria and Egypt test different approaches to tax digital economy (Daily News Egypt)
The booming digital economy in many African countries like Nigeria and Egypt raises the hopes for more revenues for the countries in their COVID-19 fatigued economies. More tax revenues derived from the digital economy could help governments of African countries save their crumbling education and healthcare systems.
But much of these funds from the digital economy are being sucked out of the continent by non-resident multinational enterprises (MNEs). These companies escape taxes on the profit they make in various countries because of the age-old international tax rules which require companies to be physically present in a country to be taxed by the country.
On October 8, 2021, the 137 member countries and jurisdictions (the list has since grown to 141) of the OECD/G20 Inclusive Framework on BEPS unveiled a Two-Pillar solution deal to tackle the tax challenges arising from the digitalisation of the economy and introduce a global minimum tax. Pillar 1 seeks to remove the requirement of physical presence of firms in a country for the country to have a right to tax them. Pillar 2 seeks to curb the incentives for MNEs to shift profits from high tax jurisdictions to tax friendly jurisdictions.
Nigeria and Egypt, like many countries of the world just recovering from the devastating impact of COVID-19, are in desperate need of money. But, unlike Nigeria, Egypt rests its hope of raising its tax revenues from the digital economy on the Inclusive Framework Two-Pillar solution deal.
The construction of the Nigeria-Morocco gas pipeline is underway and everything points to the project having very positive consequences. Younes Maamar, a Moroccan energy and development expert, was interviewed by the official Moroccan news agency, MAPNews, where he stated that the pipeline will be beneficial in every way.
“The importance of this project is the development of a regional gas infrastructure for the benefit of all the countries that this pipeline will cross, because it would do three things. Firstly, it would consolidate the small markets of all these countries that, on their own, do not have the critical mass to develop a gas infrastructure for their own market,” the energy expert says.
African Development Bank and Côte d’Ivoire start preliminary discussions for 2023-2027 strategy (AfDB)
The African Development Bank and the government of Côte d’Ivoire initiated a preliminary dialogue in Abidjan on July 18-22, 2022, to lay the foundations for the Bank’s strategy in Côte d’Ivoire over the next five years.
The discussions focused on the first version of the country diagnostic note, prepared by the Bank for Côte d’Ivoire, and the completion report of the Bank’s 2018-2022 Country Strategy Paper (CSP) for Côte d’Ivoire, which expires at the end of the year. The dialogue also included a performance review of the portfolio of projects financed by the Bank in Côte d’Ivoire during 2022. Lessons were learnt regarding cooperation between the Bank and Côte d’Ivoire, and a number of strategic and operational recommendations were formulated with a view to improving future projects.
The Bank’s current Country Strategy Paper (CSP) for Côte d’Ivoire, which runs to the end of 2022, supports implementation of the Ivorian government’s National Development Plan for 2016-2020. The two pillars of the plan are: strengthening key infrastructure and governance for greater competitiveness and investment efficiency; and the development of agro-industrial value chains to promote inclusive and sustainable growth.
Morocco’s trade deficit swells 48.7% in Q1 as energy imports soar (Reuters)
Morocco’s trade deficit widened 48.7% to 150.5 billion dirhams ($14.6 billion) in the first six months of this year, as global commodities prices surged, the foreign exchange regulator said on Monday. Imports rose 44.2% from a year earlier to 365.5 billion dirhams, while exports increased 41.2% to 215 billion dirhams, the regulator said in a monthly report. Morocco’s energy bill soared the most, up 124.7% to 71.4 billion dirhams, while cost of wheat imports climbed 55% to 13.3 billion dirhams, as the drought-hit country reaps a meagre harvest.
African trade and development news
The African Union Commission (AUC) in collaboration with the Republic of Malawi and the United Nations Economic Commission for Africa (UNECA) organised the 11th African Internet Governance Forum (AfIGF 2022) in Lilongwe, Malawi from 19th to 21st July 2022 under the theme Digital Inclusion and Trust in Africa.
Speaking during the occasion, President of the Republic of Malawi H.E. Dr Lazarus Chakwera stated that his government attaches high priority to digitalization. “The vision for a “digital Africa” can only be realized if we invest in indigenous solutions and workforce to drive this transformation. Africa must be a leader in this revolution with its youthful population is already strategically positioned to create tailored made digital solutions for Africa’s problems”. Said the President. On her part, the African Union Commissioner for Infrastructure and Energy, H.E. Dr Amani Abou-Zeid said “Since 2020, digital technologies have proven to be the lifeline that made our communications easy, our work going and businesses functioning. “We can’t go back as we need to ensure digitalization is deep-rooted in our economies since our ultimate goal is to create a single digital market for a united Africa”, she added.
The African Statistical Yearbook 2021 (AfDB)
The Yearbook series is a result of joint efforts by major African regional organizations to set up a joint data collection mechanism of socioeconomic data on African countries as well as the development of a common harmonized database. The Joint African Statistical Yearbook is meant to break with the practices of the past where each regional/subregional organization was publishing statistical data on African countries of the continent in an inefficient way, leading to duplication of efforts, inefficient use of scarce resources, increased burden on countries and sending different signals to users involved in tracking development efforts on the continent. It is expected that the joint collection and sharing of data between regional institutions will promote wider use of country data, reduce costs and significantly improve the quality of the data and lead to better monitoring of development initiatives on the continent.
East Africa Heads of State officially launch the Arusha Bypass Road (AfDB)
On 22 July 2022, Heads of State of the East Africa Community (EAC) launched the Arusha Bypass Road, during the EAC Heads of State summit, which took place in Arusha, Tanzania. The 42.4 km bypass seeks to decongest traffic in the towns of Arusha and Moshi and to promote intra-regional trade. It is a component of the multinational Arusha-Holili/Taveta-Voi Road project, funded by the African Development Bank Group, and connects Tanzania and Kenya. The funding, from the African Development Fund, the Bank’s concessional window, amounts to $217 million, $112 million for Tanzania and $105 million for Kenya.
Speaking during the event, President Kenyatta said the road would reduce traffic congestion and foster integration of the EAC. He also noted that that it will make transporting goods between Tanzania and Kenya and the wider EAC easier.
The African Development Bank Director General for East Africa, Nnenna Nwabufo, was present at the launch of the road project and said: “The Arusha Bypass will not only enhance trade between Tanzania and Kenya, but will also facilitate trade for landlocked regional neighbors, namely Rwanda, Burundi, Uganda and eastern Democratic Republic of Congo.”
African Governments must invest in indigenous digital solutions — Malawi President (Modern Ghana)
African Governments must invest in indigenous digital solutions and workforce to drive the agenda of transforming the digital space in Africa.
“Africa must be a leader in this revolution with its youthful population who are already strategically positioned to create tailored made digital solutions for Africa’s problems,” Dr Lazarus Chakwere President of Malawi stated at the 11th African Internet Governance Forum (AfIGF 2022) in Lilongwe, Malawi.
The vision for a “digital Africa” can only be realized if we invest in indigenous digital solutions, Dr. Chakwere stated as captured by the Communication for Development and Advocacy Consult (CDA Consult) in Tema.
How Agtech can ‘dramatically improve’ food insecurity on the continent (The Africa Report)
Hopes have grown in recent days that grain shipments could resume, following a deal to unblock exports from Black Sea ports. But the intense disruption to one of the world’s largest bread baskets this year has worrisome implications for Africa’s food security. In the opinion of the World Food Programme (WFP), famine is likely unless urgent action is taken. A sustainable solution to food security cannot rely purely on the traditional approach of Western aid transfer. Instead, Africa’s leaders should lean into a continent-wide revolution in agricultural technology. This debate is not just about food; it’s about how Africa develops and prospers in the years ahead.
According to the WFP, the number of people effected by food insecurity in the Sahel has more than tripled since 2018, to 43 million people this year. There are three key areas where African leaders should focus their attention to turbocharge agtech and have a lasting impact on food security: data, digital tools, and start-ups.
Over the past few decades, Africa’s food import bill has also tripled, reaching around $35bn a year (World Bank figures). Many countries rely on agricultural exports from Russia and Ukraine and the continent is highly vulnerable to global supply chain disruption. The recent reduction in the supply of seeds and fertiliser has led to soaring prices, food shortages, and the risk of starvation.
The fourth edition of the intensive and engaging Africa Climate Talks (ACT!-4) closed yesterday in Maputo, Mozambique.
This was the first session of ACT!-4 organized as part of a regional Climate Talks series by the African Climate Policy Centre (ACPC) of the ECA to pursue the theme, “Ensuring a just and equitable transition and human security in Africa: Building resilience.” This year’s theme builds up on the gains realized from last year, which run under the aegis, “Climate Change and Development in Africa: African perspectives on climate resilient recovery from COVID-19”.
Speaking on behalf of Vera Songwe, the Executive Secretary of the ECA, Jean Paul-Adam, who heads the Technology, Climate Change and Natural Resource Management division at the ECA, noted that ACTs! serves as an all-inclusive climate change and development dialogue forum. “The fourth ACTs! is an opportunity to deliberate on viable solutions on Just Transition, Loss and Damage, innovative financing models including green and blue bonds as well as Climate-Debt-Swaps to boost resilience in Africa.”
African Growth and Opportunity Act: Program usage, trends, and sectoral highlights (Brookings)
The African Growth and Opportunity Act (AGOA) is a preferential trade program that gives countries in sub-Saharan Africa preferential access to U.S. markets, allowing them to export products tariff-free.1 AGOA was created with the aim of increasing trade activity between the United States and sub-Saharan African countries and with a broader goal of fostering economic and political development in Africa.2 To date, AGOA has greatly increased total exports to the United States, but data on utilization rates has caused some to question why certain countries are able to capitalize on AGOA more than others. Despite some successes, the continued dominance of oil and apparel exports along with the decline in AGOA exports after their peak in 2008 has lowered confidence among some leaders and experts in AGOA’s ability to deliver on its promises. The potential of AGOA remains powerful to promote regional integration and diversified economies, but the data and experience of the past two decades must be examined to understand how the policy can be better structured and implemented in the future. While there is limited empirical evidence on the effects of these factors on AGOA implementation and success, this testimony suggests that they can be analyzed by comparing across commonalities and by using the lens of policy implementation theories. Themes that emerged from the discussion with Commissioners included the role that the African Continental Free Trade Area can play in widening and deepening AGOA’s successes, and the importance of value-adding activities being located in African countries.
Economic Watch: African diplomats expect closer economic ties with China (China Daily)
Twenty-nine diplomats from 15 African countries visited the pilot zone for the In-Depth China-Africa Economic and Trade Cooperation Program in central China’s Hunan Province from July 27 to 29. They expressed confidence in China’s economy and said they expected closer economic and trade ties between their country and China. Despite recurring COVID-19 outbreaks and the complex and volatile international situation, the diplomats said China’s economy is resilient and the Chinese market is full of opportunities. They expressed hope to strengthen cooperation with China in sectors such as agriculture, the digital economy and health care. According to the Tanzanian ambassador to China Mbelwa Kairuki, China’s 1.4-billion-strong consumer market has plenty of opportunities for all African countries.
“China-Africa trade and economic cooperation has been increasing in the last 20 years,” said Kairuki, who is convinced that there will be more opportunities for Tanzania to export products to China, especially high value-added products.
Partnership can boost rural industrialization in Africa (China Daily)
Africa remains the world’s least-industrialized region, despite the continent’s ongoing infrastructure development. Its economies still rely on raw materials, so its share of global manufacturing is only around 1.9 percent, according to the African Development Bank. Thus, when the global community faces unprecedented challenges emanating from changing global governance, the socioeconomic impacts of COVID-19 and the ongoing Russia-Ukraine conflict, Africa becomes the hardest-hit continent on matters related to food security and economic growth.
The African Development Bank recently launched the $1.5 billion Emergency Food Production Facility to mitigate the effects of the Russia-Ukraine Conflict, climate change and COVID-19 on food security in Africa.
Three problems with the EU’s ‘Global Gateway’ to Africa (EUobserver)
The EU’s investment package for development, the “Global Gateway”, which the EU Commission president Ursula von der Leyen described as the “future of the EU’s development cooperation”, seems fixated on boosting private sector investments in energy, infrastructure and climate-smart solutions in Africa. But it is unclear whether this investment package of the world’s largest aid donor will trickle down within African communities, reaching those needing it the most. It is also unclear if it will be part of the problem or the solution when it comes to fighting hunger and transforming our broken food systems.
Global economy news
Report of the TPRB from the Director-General on trade-related developments (WTO)
Transparency is critical for the individuals and companies that make the global economy work. That’s why Members have placed transparency at the heart of the multilateral trading system — and of this monitoring exercise, which provides you a fact-based platform for analysis and non-legal peer review.
Overall, the Report shows that Members have shown restraint in the use of trade-restrictions. The trade coverage of the import-facilitating measures far exceeds that of import-restrictive measures. This is positive and it shows that Members understand the importance of keeping markets open and letting trade flow.
Another challenge that has emerged even as the number of pandemic-related trade restrictions has waned relates to what is happening in the area of global supply chains. Open trade and global value chains have historically fostered increased competition, specialization, and scale. But over the past two years, the pandemic has upended supply chains — factory closures and transport restrictions constrained the supply side, while consumers pivoted from services to durable goods, even as fiscal and monetary stimulus boosted aggregate demand.
WTO launches database on gender equality provisions in regional trade agreements (WTO)
This new policy tool “complements the ongoing work of the Informal Working Group on Trade and Gender on issues related to data collection, one of our priorities”, said Ambassador Athaliah Molokomme of Botswana, co-chair of the Informal Working Group on Trade and Gender. The database maps more than 300 gender provisions included in more than 100 regional trade agreements (RTAs), representing almost a third of RTAs currently in force and notified to the WTO by members. The provisions identify the type of gender issue being addressed, the implementation instruments, and the enforcement mechanism.
The WTO Trade and Gender Officer, Lolita Laperle-Forget, who designed the database, stressed the importance of demystifying gender provisions in order to support the formulation of gender responsive RTAs and ensure that women are not left behind in trade opening policies.
China announces zero-tariff treatment for least-developed countries (China Daily)
China will offer zero-tariff treatment on 98 percent of taxable products from 16 least-developed countries, including Togo, Djibouti, Cambodia and Rwanda, according to a statement released by the Customs Tariff Commission of the State Council on Monday. Coming into force on September 1, the move will facilitate to share market opportunities with these countries, push for common growth and advocate the building of a community with a shared future for mankind, said the statement.
Nigeria, others plead with G20 for debt service extension (The Nation)
Nigeria and other African countries have written a letter to the Group of 20 (G20) countries to extend their debt servicing timeline. They took the step to ensure that debt servicing obligations do not cripple their economies.
The plea is contained in a letter by the Ministers of Finance of Ghana, Senegal and Egypt, on behalf of African Ministers of Finance and Central Bank Governors, and copied to the Chairperson of G20 Chairperson, African Union (AU) Managing Director, International Monetary Fund (IMF) President, The World Bank.
In the letter, the African Ministers of Finance and Central Bank governors said: “We ask for immediate liquidity support akin to the global response during the COVID-19 pandemic to help support our economies.
“The end of the G20 Debt Service Suspension Initiative (DSSI) in December 2021 meant that countries are due to resume payments on their debt obligations, despite a deteriorating global context, particularly for middle and low-income economies on the African continent.
Ukraine: Guterres welcomes departure of first grain ship, to help ease food crisis (UN News)
In a statement issued by his Spokesperson, UN Secretary-General António Guterres said that ensuring “existing grain and foodstuffs can move to global markets is a humanitarian imperative.” The deal dubbed a “beacon of hope” by Mr. Guterres when it was signed in the Turkish city of Istanbul on 22 July, is a “collective achievement” of the newly-established Joint Coordination Centre, or JCC, set up in Istanbul, under the auspices of the UN, by representatives from the three governments who inked the deal, known officially as the Black Sea Grain Initiative.
Since the deal was signed, the parties involved “have been working tirelessly” to begin the process of shipping grain and cereals out from Ukraine’s Black Sea ports.
“The Secretary-General hopes that this will be the first of many commercial ships moving in accordance with the Initiative signed, and that this will bring much-needed stability and relief to global food security especially in the most fragile humanitarian contexts.”
Food Security Update | Rising Food Insecurity in 2022 (World Bank)
Record high food prices have triggered a global crisis that will drive millions more into extreme poverty, magnifying hunger and malnutrition, while threatening to erase hard-won gains in development. The war in Ukraine, supply chain disruptions, and the continued economic fallout of the COVID-19 pandemic are reversing years of development gains and pushing food prices to all-time highs. Rising food prices have a greater impact on people in low- and middle-income countries, since they spend a larger share of their income on food than people in high-income countries. This brief looks at rising food insecurity and World Bank responses to date.
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Trade Statistics for June 2022 | South African Revenue Service (SARS)
The South African Revenue Service (SARS) today releases trade statistics for June 2022 recording a preliminary trade balance surplus of R24.23 billion. These statistics include trade data with Botswana, Eswatini, Lesotho and Namibia (BELN). The year-to-date (01 January to 30 June 2022) preliminary trade balance surplus of R133.52 billion is a deterioration from the R249.86 billion trade balance surplus for the comparable period in 2021. Exports increased by 16.7% year-on-year whilst imports increased by 47.6% over the same period.
A look at the mega projects planned for South Africa (BuinessTech)
Transnet National Ports Authority (TNPA), the wholly-owned subsidiary of Transnet says it has a strategy to become a world-class port operator, and will focus on the hub port in Durban. Earlier this week, Transnet reported a slight increase in revenue for the year ended March 2022, to R68.5 billion, while EBITDA (Earnings before interest, taxation, depreciation and amortisation) improved by 20.5% to R23.4 billion. Profit for the year is R5 billion from a loss of R8.7 billion in the prior year. The significant increase in profits is mainly attributable to the improvement in the EBITDA, a decrease in asset impairments and an increase in fair value adjustments related mainly to investment property (IP), it said.
“Part of Transnet’s hub port strategy includes further development of the Ngqura port into an efficient, trans-shipment-focused container terminal. The port has modern infrastructure and equipment, and is capable of handling large container vessels,” Silinga said. Due to operational challenges and lack of competition, Silinga said the Ngqura container terminal is currently not making effective use of its capacity.
Kganyago warns of climate change threats to growth (IOL)
The SA Reserve Bank warns that climate change has emerged as a key threat to economic and financial stability in the country, following the devastating floods in KwaZulu-Natal (KZN). “The economic research department is assessing the implications of climate related shocks for monetary policy execution and implementation,” he said. “Climate change and the transition to a greener economy have the potential to generate larger, longer and often more frequent economic and financial shocks, with disruptive effects for economic activity and high inflation.” Climate change is already manifesting rapidly in the form of droughts, fires, floods, resource scarcity and species loss, among other impacts.
South Africa turns to renewables, gas and batteries to end power cuts (Climate Change News)
South Africa’s president Cyril Ramaphosa has promised to end the country’s frequent electricity black-outs by mobilising investment in renewables, gas and batteries. In a prime-time address to the nation on Monday, Ramaphosa said: “After more than a decade without reliable electricity supply, South Africans are justifiably frustrated and angry. They are fed up.” Ramaphosa blamed the power cuts on the country’s old and unreliable coal power plants, on the “design flaws” in two new coal power plants and on “extensive theft, fraud and sabotage” and “years of state capture and mismanagement” under his predecessor Jacob Zuma. After talking to trade unions, business, experts and opposition parties, Ramaphosa said he planned to fix the black-outs by improving the existing power plants, encouraging investment in renewables, flexible gas generators and battery storage and enabling businesses and households to sell rooftop solar to the grid.
WCO conducts Integrity Diagnostic Mission for Eswatini Revenue Service (WCO)
The World Customs Organization (WCO) conducted an Integrity Diagnostic mission in Mbabane, Eswatini, from 18th to 22nd July 2022 to support the implementation of a robust anti-corruption and integrity development by the Eswatini Revenue Service (ERS). The mission was a follow-up to the recommendations of a scoping mission conducted by the Sida-WCO Trade Facilitation and Customs Modernization (Sida-WCO TFCM) Programme in June 2021, on the priority areas for implementing an effective integrity development program in ERS.
As part of the mission objectives, the WCO team, comprising member Experts from the South African Revenue Service (SARS) and Mauritius Revenue Authority (MRA), performed an organizational assessment of the ERS anti-corruption and integrity development initiatives using a comprehensive and detailed methodology in accordance with the WCO Revised Integrity Development Guide (RIDG) to assist ERS staff to assess their compliance with the requirements of the Revised Arusha Declaration on Integrity in Customs.
As part of their assessment of the integrity issue in their environment, the experts met with the Anti-Corruption Commission and private sector stakeholders. In order to examine the customs procedures, the WCO experts also visited the Ngweya Border Post between South Africa and Eswatini.
New report reveals Maseru generates half of Lesotho’s GDP (UNECA)
A new report for the first time reveals that Lesotho’s capital city Maseru, which accounts for only 17 per cent of the country’s population, generates about half of the country’s annual gross domestic product (GDP) – a vital economic well-being indicator. The report, developed by the Lesotho Bureau of Statistics with the support of the United Nations Economic Commission for Africa (ECA), was validated by Lesotho’s national and local government officials, data specialists, national account experts, development experts and urbanisation practitioners at a workshop in Maseru on 25 July 2022.
Zimbabwe infrastructure upgrades to boost revenue performance (Bulawayo24 News)
GOVERNMENT expects the on-going infrastructural development projects, particularly the upgrading of major highways, to impact positively on revenue performance through improved transport and logistics movement, which enhances trade facilitation between Zimbabwe and regional markets.
The highway project, which closely connects to the US$300 Beitbridge Border Post modernisation, is critical given its significance as a major link for Zimbabwe to the North-South Corridor, which is a strategic trade route for the entire southern region and the Comesa bloc. When complete, the highway is expected to have eight toll plazas and result in increased and more efficient movement of cargo and passenger travel for the benefit of Zimbabwe and the entire region. Projected to cost US$650 million, the project is key towards attainment of Vision 2030, which seeks to transform the country into an upper middle-income economy and also feeds into the Africa Agenda 2063 developmental ideals.
“Infrastructure developments, particularly the completion of part of the Beitbridge-Chirundu Highway that links Zimbabwe to the North-South Corridor is expected to enhance revenue performance,” said Zimra Acting Commissioner General, Ms Regina Chinamasa, in a latest revenue
Slow govt progress on milk export talks worry producers (Monitor)
Milk exporters and private sector players have expressed concern, noting the speed with which government is conducting negotiations for markets reopening is extremely slow and frustrating. About three months ago, Uganda and Kenya completed talks in which it was agreed that Kenya would verify and clear exportation of milk into the country following months of bickering between the two countries. The ban is yet to be lifted with producers expressing frustration, amid falling returns and a narrowing market.
Speaking in an interview, Mr Simon Kaheru, Uganda’s delegate to the East Africa Business Council, told Daily Monitor that milk exporters, some of whom had gone as far as Zambia, have been frustrated, noting that government should find a quick way of resolving the impasse. ”One of our members had even gone as far as exporting milk to Zambia but has been frustrated by the standoff. As East Africans, we need to acknowledge and address the slow speed of resolution of these issues, because they hold back regional development,” he said.
In April a trade delegation from Kenya arrived in Uganda to iron out trade rifts between the two East African member states. At the end of the meeting, a number of resolutions were made but milk, which had been one of the subjects of the discussions, remains unresolved. Kenya has for about two years now maintained a ban on Ugandan milk from entering its territory.
Zambia IMF Managing Director Welcomes Statement Creditor Committee Zambia Common Framework (IMF)
“I am very pleased to welcome the statement issued on July 30 by the Official Creditor Committee for Zambia. The support from the Official Creditor Committee for Zambia’s envisaged IMF-supported program, together with its commitment to negotiate debt restructuring terms, accordingly, provides the IMF with official financing assurances. I strongly endorse the call by the Official Creditor Committee for private creditors and other official bilateral creditors to commit to comparable debt treatments.
“The delivery of these financing assurances will enable the IMF Executive Board to consider approval of a Fund-supported program for Zambia and unlock much needed financing from Zambia’s development partners.
First-time exporters encouraged to explore Zambian Market (The Herald)
Zimbabwean companies are set to increase exports to Zambia following increased engagements with buyers in the country, during the ongoing Zambia Agricultural and Commercial Show. National trade development and promotion organisation, ZimTrade, has facilitated 30 companies that are exhibiting at Zambia’s largest trade exhibition event, among them seven youth-owned enterprises.
ZimTrade Chief Executive Officer, Allan Majuru, said the comments received by participating companies from potential buyers shows a positive outlook for Zimbabwean products in Zambia. “There is potential for diversified products in the Zambian market riding on the existing positive reputation of Zimbabwe’s quality products. “Already most buyers in the market are familiar with the high quality of products from Zimbabwe and have indicated that they prefer our products compared to competition,” he said.
DG Okonjo-Iweala highlights success of Nigeria’s Growth Platform in driving digital trade (WTO)
The COVID-19 pandemic has played an important role in accelerating digital connectivity, DG Okonjo-Iweala stressed, citing two reports launched on Day 1 of the Global Review. “The pandemic also underscored shortcomings,” she noted, “such as underdeveloped physical and regulatory infrastructure, unaffordable connections, and limited information and communications technology skills, especially among MSMEs”. With a population of over 1.3 million – representing one-sixth of the world’s population – Africa accounts for only 3 per cent of global trade. The Growth Platform was created in 2016 in Nigeria - Africa’s most populated nation - to help marginalized groups tap into the benefits that digital trade brings to economic growth and the achievement of development objectives.
Nigeria’s automobile sector comatose as import levy grosses N180bn (New Telegraph)
As records show that the Nigeria Customs Service has so far collected over N180 billion from the 35 per cent import levy on fully built cars, investors in the Nigerian automotive manufacturing sector, whom the levy was put in place by the Federal Government to assist, are gasping for breath. According to reports, not less than 20 of the 26 companies that commenced assembling of different brands of vehicles in the country at the inception of the auto policy have closed shop due to the current economic crunch and the unfavourable operating environment in Nigeria.
Deputy Managing Director of CFAO Motors, Kunle Jaiyesimi, who disclosed this at the weekend in Lagos, stated that Nigeria’s automotive industry was in a precarious situation and needed urgent intervention or the country would in no distant time become market for Ghana and other more serious African countries as the African Continental Free Trade Area (Af- CFTA) goes into operation.
Jaiyesimi made disclosures while making a presentation at the 7th edition of the Nigeria Auto Journalists Association ( NAJA) training/ capacity building workshop held on Friday in Lagos with the theme: “Accelerating Automobile Industry Recovery Strategy In Post-COVID-19 Era.”
Algeria, Africa’s Largest Natural Gas Exporter, Talks Of Joining BRICS (NDTV.com)
Algerian President Abdelmadjid Tebboune has suggested that his country, Africa’s largest natural gas exporter, could join the BRICS economic group that includes Russia and China. Tebboune’s comment comes after Russian President Vladimir Putin -- whose country is hit with Western sanctions over its Ukraine invasion -- in June called on BRICS leaders to move towards “formation of a truly multipolar system of inter-government relations”. The BRICS group also includes the major emerging economies of Brazil, India and South Africa. “The BRICS interest us” as an alternative to traditional power centres, Tebboune said in a televised interview late Sunday. “They constitute an economic and political force.”
African Development Bank adopts new Country Strategy paper for Egypt covering 2022-2026 (AfDB)
The African Development Bank Group’s Board of Directors has approved Egypt’s Country Strategy Paper for the 2022-2026 period. Under the new strategy, the Bank will be guided by the priorities of the country’s National Development Plan— also known as Egypt’s Vision 2030— and its Government Action Program 2023-2027. The goal is to support the country’s efforts to build a competitive and resilient economy. The new strategy builds on results and lessons from the preceding 2015-2021 strategy paper, which helped develop the country’s infrastructure and improve the business environment, fostering sustainable and inclusive growth.
IMF Executive Board Concludes 2022 Article IV Consultation with Equatorial Guinea (IMF)
Equatorial Guinea’s oil-dependent economy is slowly emerging from the ravages of the COVID-19 pandemic and Bata explosions, but substantial challenges remain. The relaxation of pandemic containment measures and higher international oil prices are helping boost economic activity, government revenues, and export earnings. However, surging food prices and banking sector vulnerabilities cloud the short term, while real GDP and living standards are expected to decline over the medium term.
Following a contraction of 3.2 percent in 2021, real GDP is projected to grow by 5.8 percent in 2022 supported by hydrocarbon production and Bata reconstruction. Starting in 2023, the economy is projected to contract through the medium term, reflecting a reduction in hydrocarbon output together with a stalled structural reform agenda.
African trade and integration news
WCO Secretary General addresses the AfCFTA Ministerial Meeting in Ghana (WCO)
At the invitation of the H.E Wamkele Mene, Secretary General of the African Continental Free Trade Area (AfCFTA) Secretariat, Dr. Kunio Mikuriya, Secretary General of the World Customs Organization (WCO), spoke at the opening session of the 9th AfCFTA Council of Ministers meeting, which took place on 25 and 26 July 2022 in Accra, Ghana. During the meeting, the AfCFTA Secretariat reported major strides towards achieving the African common market: 54 signatories of the agreement, 43 states had ratified the agreement, and 46 schedules deposited.
In his opening speech, Secretary General Mikuriya emphasized Customs’ importance in implementing trade agreements, basing their operations on international standards developed by the WCO, including the Revised Kyoto Convention and the SAFE Framework of Standards, that would ensure connectivity at borders. He mentioned the HS and Rules of Origin and how the WCO had been able to support the AfCFTA, leading to the launch of the E-Tariff Book and the Rule of Origin Manual as concrete examples of cooperation. He informed ministers of the recent WCO Council sessions’ focus on data strategy, green Customs, and fragile borders. In conclusion, he stated that there remained much room to enhance collaboration between Customs and trade ministries to achieve the common goal of a prosperous and integrated Africa and asked for political support of trade ministers present in this respect.
African Development Bank and International Monetary Fund (IMF) experts have stressed the urgency of mobilizing climate financing for Africa during a panel discussion on the African Development Bank’s 2022 African Economic Outlook hosted by the IMF in Washington, DC on Monday.
Participants at the meeting heard that African countries need to mobilize $1.6 trillion between 2022 and 2030 to meet their Nationally Determined Contributions to fight climate change, So far, they have only received $18.3 billion annually, leaving a financing gap of $108 billion annually. With current trends, Africa’s NDCs will not be achieved. Africa has huge comparative advantages to lead the world in this new green transition, but it lacks the capital to do so, African Development Bank’s Acting Chief Economist and Vice President Kevin Urama said in his presentation.
Urama emphasized that the findings of the 2022 African Economic Outlook, show that the structure of climate finance is very complicated and creates a misallocation of resources. As a result, the main objective of climate finance - to support climate-vulnerable countries - is not being achieved. “One fundamental, existential issue for Africa is climate change. The countries that are receiving climate financing are the less vulnerable ones,” Urama noted.
ECA inaugurates the fourth edition of Africa Climate Talks (UNECA)
The all-important fourth edition of the Africa Climate Talks (ACTs!), takes place in Maputo, Mozambique this week under the theme “Ensuring a just and equitable transition and human security in Africa: building resilience.”
ACTs! 2022 ACTS comes against the backdrop of more frequent and severe weather events, including unprecedented droughts, cyclones and tropical storms in East and Southern Africa. The West Indian Ocean region in particular has suffered considerable damage and losses from weather and climate related events.
The deliberations of the Maputo meeting will cover disaster preparedness, early warning systems, and insights of the sixth assessment report by the Intergovernmental Panel on Climate Change (IPCC), just transition, resilience building and the global stock take on adaptation. The all-inclusive forum will also benefit from engagement with the different policy and practical responses to climate impacts, and seek to contribute to the realization of the aspirations of Africa’s Agenda 2063 and the 2030 Agenda for Sustainable Development by identifying pathways to climate resilient development.
The issue of regional cooperation, continental synergies and global solidarity, aided by a strong multilateral framework in line with the aspiration of the Paris Agreement framework will also feature in the intensive ACTs! deliberations.
EABC optimistic business in EAC to rise by 11% in 2022/23 (East African Business Council)
Business Captains in the region are optimistic that business in the East African Community bloc is set to increase by 11% in 2022/23, this was revealed by the EABC Barometer on Business & Investment in the EAC & Outlook 2022/2023. The EABC Barometer was commissioned by EABC with support from GIZ and was officially launched during the Webinar on Facilitation of Cross Border Investments organized jointly by East African Community and AFRICA Reform for Investment and Sustainable Economies Project supported by the European Union.
Businesses in Burundi, Kenya, Rwanda and Uganda reported reduced cost of doing business while those in South Sudan and Tanzania felt that the costs increased during the pandemic and recovery relative to a year before the pandemic.
On Business outlook during 2022 into 2023, most businesses in Rwanda, South Sudan and Tanzania are optimistic about the following dimensions: Improvements in the business climate, Businesses performance, Governments will put in place interventions for business recovery, Recovery from the losses suffered during the pandemic and Expansion the businesses to other markets within the EAC post the pandemic. It is notable that businesses in Tanzania stood out with an optimistic view of the outlook across all dimensions.
East Africa Cross Border Trade Bulletin (July 2022, Volume 38) (ReliefWeb)
Maize grain remained the most traded commodity in the region in the first quarter of 2022 (January to March). Wheat and maize flour surpassed dry beans as the second and third most traded commodities in the region while, rice, sugar, and sorghum remained significantly traded.
Regional trade in maize, sorghum, rice, and dry beans was above average driven by above-average prices in deficit countries including Kenya, Rwanda, Burundi, Somalia, South Sudan, Eritrea, and Djibouti. This attracted supply from the main surplus countries of Tanzania, Uganda, and Ethiopia.
The prices of staple food commodities followed seasonal patterns but were elevated given below-average harvests, high inflation as a result of COVID-related pent-up demand driving up prices, as well as high oil, wheat, and flour prices due to the Ukraine-Russia conflict.
CEMAC Tariff Committee gauges progress in implementation of HS 2022 amendments (WCO)
The Central African Economic and Monetary Community (CEMAC) convened a meeting of its Tariff Committee to review progress in the implementation of the seventh edition of the Harmonized System (HS) by member countries and examine other issues in relation to tariff work in the Community. The meeting was held on 25 and 26 July 2022 in Douala, Cameroun. It was attended by delegations of Cameroun, Central African Republic, Chad, Republic of the Congo and Gabon, as well as the CEMAC Commission and the WCO. The meeting was co-organized and jointly financed by the CEMAC and the WCO, within the framework of the EU-WCO Programme for HS in Africa (HS-Africa Programme), funded by the European Union.
In their opening remarks, Mr. Michel Niama, Commissioner in charge of the Common Market at the CEMAC, Mr. Samuel Désiré Kwedi, Director of International Co-operation and Tax Bases at the Cameroon Customs, and Mr. Gilles Montagnat-Rentier, Senior Economist at the International Monetary Fund reiterated the importance of timely and coordinated implementation of HS amendments by all Community members. They emphasized the pivotal role of the HS and tariffs in ensuring correct and efficient administration of various policy measures, which was particularly relevant in the current context of unstable and disrupted supply chains. They welcomed the opportunity to discuss the implementation of the HS 2022 offered by the Tariff Committee meeting.
Delegates took note of the fact that the CEMAC, under the work plan and with the support of the EU-WCO HS-Africa Programme, had completed the work on the preparation of the 2022 version of the Common External Tariff (CET) well in advance of the implementation date, creating a good basis for member countries to migrate to the new version of the CET in a timely manner. The Committee expressed its appreciation to the CEMAC Commission and Cameroun for the technical preparatory work that they had carried out in that area for the benefit of the Community. Cameroun delegation delivered a presentation with detailed analysis of the process whereby the 2022 CET had been developed and the work model used in Cameroun to implement HS amendments at the national level.
Ministers of Finance conclude discussions on access to finances; debt restructuring and Africa’s credit rating (African Union)
African Union Member States Ministers of Finance, Monetary Affairs, Economic Planning, and Integration concluded their deliberations focused on “Improving Africa’s access to Capital: Debt Management and the Rising Influence of Credit Rating Agencies”. The meeting convened under the 5th Ordinary Session of the Specialized Technical Committee made far-reaching recommendations on assessments by Member States, on the state of debt crisis in their respective countries as way of promoting transparency and accountability, which in turn facilitates debt restructuring and reduces vulnerabilities. The Ministers of Finance and Central Bank Governors further recommended for the establishment of a regulatory institution in Africa in order to strengthen mechanisms on tax transparency, effective and prudential fiscal management, and combating illicit financial flows.
The Ministers reiterated the need to establish an African Credit Rating Agency on the basis of self-sustainability, political and financial autonomy, and adopted the Tax Strategy and the Strategy on curbing Illicit Financial Flows (IFFs).
The STC requested African Union Member states to ensure a significant proportion of their annual budgets are committed to the financing of industrialisation projects, supported by prudential taxation policies and practices to enhance domestic resource mobilization, to minimise rigidities in credit creation.
IFC Invests Record $9.4 Billion for Private Sector Development in Africa (IFC)
IFC provided record financing in Africa in fiscal year 2022 helping to develop regional pharmaceutical manufacturing, increase intra-Africa trade, expand access to climate financing, and strengthen food security among many other pressing development needs.
IFC made $9.4 billion in investments between July 1, 2021 and June 30, 2022 across 36 countries, the largest ever annual commitment for the continent. The investments include $3 billion in trade financing that is unlocking intra-Africa trade for thousands of small businesses, $2.1 billion that is supporting the continent’s green transition, from increasing access to climate finance to funding renewable energy projects, and $672 million that is supporting increased digital connectivity. IFC also provided $603 million in agriculture financing, helping to strengthen food security during a turbulent global economic period.
Some additional 2 million people will benefit from a second phase of the West Africa regional Food Systems Resilience Program (FSRP-2) approved today for a total amount of $315 million in International Development Association (IDA*) financing. FSRP-2 will support Chad, Ghana and Sierra Leone to increase their preparedness against food insecurity and to improve the resilience of their food systems. This comes at a moment where it is projected that approximately 38.3 million people in West Africa are projected to be in food security crisis.
“Multiple shocks, driven by climate change and environmental degradation, weaknesses of the food markets, conflicts and insecurity, Covid-19 implications, and the war in Ukraine have further deteriorated food insecurity and inflation across West Africa”, declares Ms. Massandjé Toure-Litse, the Commissioner for Economic Affairs and Agriculture at the Economic Community of West African States (ECOWAS). “FSRP-2 further expands cooperation across the ECOWAS region to ensure food security, now and into the future.”
More specifically, the new financing will help to (i) increase the effectiveness of agriculture and food crises prevention and management and strengthen the capacities to adapt to climate variability and change, (ii) strengthen the adaptive capacity of the food system’s productive base and make it sustainable, and (iii) support the regional food market’s integration by linking the beneficiary countries, consolidating their food reserve systems, and strengthening the development of strategic regional value chains”.
Six-Point Shared Vision for Youth Agenda in Regional Peace and Security (COMESA)
Youth delegates attending the 2nd High Level Ministerial Conference on youth, peace and security have presented a six-point shared vision for their agenda to Ministers in charge of youth affairs in the southern African region. The six points focus on strengthening the continental, regional and national frameworks for youth inclusion in decision-making relating to peace and security.
In their outcome statement the youth called for strengthening of the following: the implementation of AU continental framework on youth peace and security; engagement with decision-makers; National Youth Councils and youth organizations, research and development; technological advancement and Youth, Peace and Security (YPS) agenda monitoring and evaluation. “We call for urgent action by governments to address the challenges through the establishment and strengthening early warning and response systems at national, regional, and continental levels,” said the youth in the statement presented by the Chairperson of the COMESA Youth Advisory Panel, Ms. Angel Mbuthia.
New roadmap sets out nine priority actions for the implementation of the Ocean Decade in Africa (Africa Renewal)
Building on a robust participatory process initiated in 2018, the Ocean Decade Africa Roadmap provides a coordinated framework for ocean science planning and uptake, and a foundation to monitor the achievement of Decade priorities and outcomes in the region. The Ocean Decade Africa Roadmap, launched on the occasion of the African Conference on Priority Setting and Partnership Development for the UN Decade of Ocean Science for Sustainable Development (May 2022), provides both an aspirational vision and a solid plan for diverse stakeholders to convene around a common set of priorities for the implementation of the Decade at the African continental level and in adjacent island states.
Global economy
WTO issues new edition of World Tariff Profiles (WTO)
Summary tables at the start of the publication provide cross-country comparisons of the average “bound” or maximum tariff each economy may apply to imports from other WTO members and the average tariffs it applies in practice. Data is provided for the category of “all products” as well as for agricultural and non-agricultural products. Import and export profiles provide cross-country comparisons on the value of imports, export diversification, and relevant tariff data.
This edition also includes two special topics. The first analyzes the preferential rules of origin in international trade. The second special topic looks at the use of NTMs on “green” and “brown” energy products.
Aid for Trade must adapt to channel resources for an effective, green transition (WTO)
At a plenary session on the second day of the Aid for Trade event, speakers focused on how this initiative can help develop critical trade infrastructure while supporting resilient, climate friendly and inclusive trade outcomes. The session benefited from the expertise and practical insights of experts and financing partners engaged in green transition activities.
“Adapting to climate change by reducing climate-related risks and vulnerability is a key economic strategy. International trade can contribute to climate change adaptation efforts by enhancing economic resilience to extreme weather events through diversified supply chains, timely provision of essential goods and services, improved food security, and greater access to climate-related adaptation technologies,” WTO Deputy Director-General Xiangchen Zhang said.
6 things to know about Aid for Trade (Trade for Development News)
This year’s WTO Aid for Trade Global Review takes place against the backdrop of many simultaneous crises affecting the multilateral trading system. It is against this background that WTO will launch the results of the 2022 joint OECD-WTO monitoring and evaluation exercise.
The COVID-19 pandemic continues to disrupt the global economy. Rising public debt levels, inflationary pressures, notably in food and energy markets mean the outlook to developing countries, and especially least-developed countries is at best uncertain. Notwithstanding these immediate difficulties, developing and least-developed countries continue to face a range of supply-side and trade-related infrastructure obstacles which constrain their ability to participate in international trade.
Trade continues to play an important driving force not just of economic growth, but also poverty alleviation. Recognizing the role that trade can play in development, the WTO Aid-for-Trade Initiative seeks to mobilize resources to address trade-related constraints identified by developing and least-developed countries. But against the backdrop of multiple crises affecting the world economy, this task is challenging.
Under the theme “Empowering Connected, Sustainable Trade”, the publication analyses the changes in Aid for Trade priorities in developing and least-developed countries in response to the COVID-19 pandemic; how environmentally sustainable growth is being pursued in national and regional development strategies; digital connectivity and e-commerce growth priorities; and how Aid for Trade is empowering women towards sustainable development objectives.
First grain ship leaves Ukraine port of Odesa after UN-brokered deal (ThePrint)
The first grain ship left Ukraine’s port of Odesa on Monday morning, under a United Nations facilitated deal that will provide it safe passage through the Black Sea. This was the first vessel to have left a Ukraine port since the Russian invasion began on 24 February, Ukrainian Infrastructure Minister Oleksandr Kubrakov tweeted Monday. “It’s important for us to be one of the guarantors of food security,” the minister said, thanking the United Nations, and other partner countries.
Russia and Ukraine signed a landmark deal in Istanbul last month, brokered by Turkey and the United Nations, to open grain and fertilizer exports that have been blocked by the war. This is expected to ease the global food crisis, analysts said.
The Russia-Ukraine Conflict: Implications for Food Security in the Commonwealth (Commonwealth iLibrary)
Food security is essential for economic well-being and maintaining social and political order. The COVID-19 pandemic and associated production and supply chain disruptions, along with the effects of climate change, have triggered an increase in food prices globally. Recently, the Russia–Ukraine conflict and the disruption of supplies from the Black Sea region have increased turbulence in the global grain and edible oils markets, accentuating inflationary pressures on food prices. Besides higher prices for staple foods, sunflower oil exports from Russia and Ukraine have dried up, sending buyers scrambling for alternative sources and driving up prices.
DG Okonjo-Iweala calls for more support for sustainable fisheries, launches new report (WTO)
“At our 12th Ministerial Conference, WTO members adopted a new Agreement on Fisheries Subsidies. The Agreement is the first broadly-focused, binding multilateral agreement on ocean sustainability. It also is the first WTO agreement with environmental sustainability at its core,” DG Okonjo-Iweala said at the event, where she also took the opportunity to urge members to formally accept the Agreement so that it can enter into force.
“The WTO’s new report, ‘Implementing the WTO Agreement on Fisheries Subsidies: Challenges and opportunities for developing and least-developed country members,’ helps set the context for this important conversation,” DG Okonjo-Iweala said, underlining that 65% of USD 5 billion in assistance earmarked for fisheries and the ocean economy between 2010 and 2020 targeted sustainable fisheries according to data from the Organisation for Economic Co-operation and Development (OECD) presented in the report.
DG calls for increased investment on cotton projects, welcomes Afreximbank pledge (WTO)
DG Okonjo-Iweala noted that cotton is a vital crop in over 30 African countries, generating some USD 1.5 billion in export earnings but that the sector had been hit hard by the COVID-19 pandemic. “Policymakers should aim to boost productivity sustainably, strengthen competitiveness and add value to cotton goods” in order to strengthen resilience to future shocks, the Director-General said.
Statement by the OECD Secretary-General on climate finance trends to 2020 (OECD)
Climate finance provided and mobilised by developed countries for climate action in developing countries reached USD 83.3 billion in 2020, according to new OECD analysis. This is a further 4% increase from 2019 and followed a 1% increase from 2018 to 2019. However, it still falls short of the goal for developed countries to provide and mobilise USD 100 billion a year for developing countries by 2020. The increase in 2020 climate finance was primarily driven by a rise in public flows.
Aggregate Trends of Climate Finance Provided and Mobilised by Developed Countries in 2013-2020 is the OECD’s fifth annual assessment of progress towards the UNFCCC goal.
New Net-Zero Tracker Gives Heavy Industries a Platform to Catch Up on Climate Goals (WEF)
The World Economic Forum released today the first edition of a report on the state of the net-zero transition in key industrial sectors, the Net-Zero Industry Tracker 2022. The report highlights the need to fully understand the scope and scale of the challenge for these sectors and identifies a significant gap versus the pace of decarbonization necessary to achieve net-zero goals to limit global warming to 1.5C by 2050. The urgency for industrial decarbonization is reinforced by high energy prices and energy supply chain disruptions.
“While there are efforts under way and climate commitments being made, we currently lack a robust and comprehensive mechanism to understand the pace and direction of the progress of transformation of heavy industries, which account for 30% of global greenhouse gas emissions,” said Roberto Bocca, head of Energy, Materials and Infrastructure, World Economic Forum. “Several industrial sectors and individual companies have set up targets with the aim of reaching net zero emissions. We believe that bringing transparency to closing net-zero gaps and reporting on this progress is critical to achieve these ambitious goals.”
Commonwealth supports new oil and gas producers to cut emissions (The Commonwealth)
Developing countries who are emerging oil and gas producers face complex challenges as the world moves away from fossil fuels to fight the climate crisis. To help them navigate this new reality, the Commonwealth Secretariat, Chatham House and the Natural Resource Governance Institute delivered an interactive virtual training programme titled ‘Minimising Greenhouse Gas (GHG) Emissions from the Petroleum Sector’ from 27 June to 7 July. This was part of a larger discussion series organised by the New Producers Group (NPG) – a joint initiative established by these three partners that brings together a network of over 30 new oil and gas producing countries for peer-to-peer exchanges. The series, called ‘Forging a New Path’, is designed to support the effective management of petroleum resources, including the integration of climate resilient strategies.
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Govt lodges WTO dispute over EU citrus import regulations (Engineering News)
The Permanent Mission of South Africa to the United Nations and other International Organizations has written to Ambassador of the European Union (EU) to the World Trade Organisation (WTO) Joao Aguiar Machado to request consultations with the EU concerning the new regime governing the importation of citrus fruit from South Africa.
"These transgressions have already impacted an estimated 3.2-million cartons of citrus valued at R605-million, with reports of hundreds of containers of South African citrus being detained by authorities in the EU on arrival. Without immediate political intervention, the threat remains that these consignments will be destroyed by EU authorities.
"The local industry is still of the view that the cold treatment prescribed within the new regulations is contrary to scientific evidence, making it an arbitrary and unnecessarily trade restrictive measure and accordingly contravenes international requirements for such phytosanitary trade regulations," the organisation states.
AfCFTA: ActionAid advocates massive investment in agric to spur local consumption (Blueprint Newspapers Limited)
ActionAid Nigeria (AAN) has called for massive investment in the agriculture sector to boost domestic consumption, rural infrastructural development, and export promotion.
According to AAN, this will enable Nigeria to benefit from the African Continental Free Trade Agreement (AfCFTA).
In a paper presentation on State of Agriculture Budget Allocation across the 36 states and the FCT and gaps on ground at National Parliamentary Briefing on the 3rd Biennial Review (BR) Report in Abuja on Thursday, the Food and Agriculture programme coordinator AAN, Azubike Nwokoye also said the federal and state governments need to use the agriculture sector to remove Nigeria from the global list as the poverty capital of the world.
Government and business must increase collaboration in 'new reality' for supply chains (Supply Management)
Kenya: Post-pandemic disruption will require governments to develop local capacity, decentralise manufacturing hubs, cut down on bureaucratic processes and red tape, and collaborate more with the private sector.
“The old theories about business being left alone, government doing their own regulation, supply chain management being left to private sector, quite frankly don’t hold,” said Dr Fred Matiang’i, cabinet secretary for the Ministry of Interior and Coordination of National Government in the Republic of Kenya.
During a panel on global supply chains at the Qatar Economic Forum, Matiang’i warned governments that “remain steeped in bureaucracy” will worsen disruption moving forward. He suggested further decentralisation of manufacturing hubs, so countries are not dependent on a singular region avoiding disruption.
Zimbabwe exports rise 33% (Bulawayo24 News)
Zimbabwe's exports increased by 33% to US$3,5 billion in the first half of this year, from US$2,6 billion during the same period in 2021, driven by an increase in agriculture, mineral and manufactured exports, official data showed.
In his 2022 mid-term review and supplementary budget, Finance and Economic Development minister Mthuli Ncube projected exports to reach US$7,3 billion by year end.
"Merchandise exports and imports increased by 33% and 15% to US$3,5 billion and US$3,7 billion, respectively, during the first half of 2022, compared to the same period in 2021. To year end, exports are expected to reach US$7,3 billion, spurred by increases in mineral receipts benefiting from the mineral commodity price boom, as well as increases in agriculture and manufactured exports," he said.
Agriculture, trade, and technology to intersect at Code Cash Crop 3.0 (Techpoint Africa)
AFEX, Nigeria’s leading commodities market player, is holding the third edition of its Code Cash Crop event themed “The Role of Technology in Disrupting Agriculture Trade Infrastructure” at Oriental Hotel, Victoria Island, Lagos, on Friday, July 30, 2022, starting from 8:00 am through to 4:00 pm.
Code Cash Crop is an integration of technology, finance, and agriculture, sectors that AFEX interacts with and provides solutions for. Using technology and finance in agriculture will lead to innovative solutions that will help solve Africa’s food challenges and facilitate economic growth and poverty alleviation.
The organisers have also brought speakers from various sectors to drive the conversations around the three sectors and how they intersect.
Clearing Agents Seek Withdrawal Of Customs Bill Over AfCFTA Breach (Leadership News)
Nigeria: The National Council of Managing Director of Licensed Customs Agents (NCMDLCA) has urged President Muhammadu Buhari and the minister of Finance, Budget and National Planning, Zainab Ahmed, to order the withdrawal of the Nigeria Customs Service (NCS) draft bill 2022 from the National Assembly, saying it does not reflect the Trade Facilitation Agreement (FTA) and the African Continental Free Trade Area (AFCFTA) doctrines.
The president of NCMDLCA, Lucky Amiwero, said due to the importance of the Customs and Excise Management Act (CEMA) to the economy as an instrument that assists the federal government to formulate proper trade and fiscal policy direction, the draft bill must be withdrawn, reviewed and redrafted to accommodate the shortfalls of international conventions, treaties and protocol missing in the draft.
He said the conflicting 283 clauses in the Nigeria Customs Service bill will hinder trade, fiscal policy, international investment and protection of the international trade community.
African trade and integration
Addis Ababa, 28 July 2022 - The United Nations Economic Commission for Africa (ECA)’s led AfCFTA-anchored Pharmaceutical Initiative held a consultative meeting with Kenya Association of Pharmaceutical Industry (KAPI) on the 22nd July, 2022 at the Serena Hotel in Nairobi, Kenya. The objective of the meeting was to introduce the AfCFTA-Anchored Pharmaceutical Initiative to KAPI as well as define collaborative roadmap between the two entities.
The meeting commenced with the AfCFTA-anchored Pharma Initiative National Consultant for Republic of Kenya, Dr. Edward Kamamia making a presentation in which he highlighted the historic events which led to the formation of the Pharma Initiative and took the meeting through a review of the global and regional framework and models which leveraged on the initiative’s three pillars, namely; Pooled-Procurement, localized Manufacture and Regulatory Quality & Standards of medicines.
The meeting ended with a commitment to support the AfCFTA-anchored Pharma Initiative on advocacy in ensuring quality standards of medicine and strengthening collaborative mechanisms on the 3 pillars of the initiative.
APN says trading on AfCFTA must begin among member states (News Ghana)
The Africa Continental Free Trade Agreement (AfCFTA) Policy Network (APN) has called for trading on to start to keep up the momentum among member countries.
Mr Louis Yaw Afful, Executive Director of APN, and a trade practitioner said even though AfCFTA had the potential to rake in some three trillion dollars for the continent, since it takes off in January 2021, not much trading had taken place under it.
The APN Executive Director, also mentioned that another challenge was customs management and procedures, as party states were supposed to pass their legislative instruments to enforce the agreement, which he noted was however slow.
Future Manufacturing Africa to showcase and unlock opportunities on the continent - RX Africa (Bizcommunity.com)
A new manufacturing platform will provide unprecedented opportunities and access to accelerate the industrialisation of the African continent. Taking place in May 2023, Future Manufacturing Africa Trade Fair & Summit will gather local and international companies to showcase and demonstrate new technologies, machinery, and equipment to enable African industries to invest in to enable them to increase manufacturing output on their home soil.
Future Manufacturing Africa is collocated with the long-running Africa Automation Technology Fair (AATF), the continent’s most comprehensive and focused automation technology platform. Next year’s event from 9–11 May will be the 12th edition of the event that has been running for 25 years.
Egypt-Somalia trade exchange grows 2.6% YoY in 2021 (ZAWYA)
Trade exchange between Egypt and Somalia increased by 2.6% in 2021 to $67.5 million, compared to $65.8 million in 2020, according to a recent press release by the Central Agency for Public Mobilization and Statistics (CAPMAS).
The value of Egyptian exports to Somalia increased by 10.2% year-on-year (YoY) to $66.3 million last year from $60.1 million.
On the other hand, the value of Egypt’s imports from Somalia recorded $1.3 million in 2021, falling by 77.9% YoY from $5.7 million.
Kenya inks import deal with Ethiopia for hydro-power (Kenya Broadcasting Corporation)
Kenya Power has reached a deal for importation of hydro-electric power from Ethiopia under the Kenya-Ethiopia Electricity Highway Project.
The deal involves a transmission inter-connector linking the two nations’ power systems while also creating a pathway for countries within the East African region to trade electricity.
The commercial operations are envisaged to commence this November upon the joint testing and commissioning of the inter-connector.
Job Advert: DEPUTY SECRETARY GENERAL- CUSTOMS, TRADE & MONETARY AFFAIRS (1 post) (ECA)
Grade : D2
Organ : EAC Secretariat
Station : Arusha, Tanzania
The key purpose of this role is to ensure achievement of the EAC’s mission which is to widen and deepen economic, political, social and cultural integration through increased competitiveness, value added production, trade and investments. The Deputy Secretary General will be in charge of matters related to customs, trade and monetary Affairs in line with the Protocols and the Treaty for the Establishment of the East African Community. She/he will deputise and assist the Secretary General and provide strategic leadership for the development of overall strategies and implementation of projects and programs in the sectors in collaboration with the implementing ministries of the Partner States in line with the EAC Development Strategy.
Global economy
Chairs Programme Conference concludes with call for enhanced cooperation with policymakers (World Trade Organization)
The WTO Chairs Programme (WCP) concluded its three-day annual conference on 27 July, wrapping up fruitful discussions on a wide range of trade-related issues, including sustainable trade, outcomes reached at the 12th Ministerial Conference (MC12), future research priorities, training and outreach, and opportunities for collaboration within the WCP network and with policymakers.
From 25 to 27 July, a series of panel discussions and roundtables took place to discuss MC12 outcomes, in particular the decisions on the WTO's response to the COVID-19 crisis, the TRIPS waiver, food security and the Fisheries Subsidies Agreement.
At a dialogue session with WCP Chairs and Academic Advisory Board members, Director General Ngozi Okonjo-Iweala laid out how new research projects could be developed to facilitate implementation of MC12 outcomes. The Director-General suggested that Chairs from countries with COVID-19 vaccine manufacturing capacities explore ways to help their governments foster the supply of vaccines to countries in need. The Chairs also have an important role to play in helping countries bring the Fisheries Subsidies Agreement and other MC12 results into effect and in providing new ideas for negotiators to tackle unsolved issues on overfishing and overstocking, she said.
WTO high-level event examines how international cooperation can tackle illicit trade (World Trade Organization)
Top officials of six global organizations have called for greater coordination among relevant national and international bodies in the fight against illicit trade in medical products, which puts the health and livelihood of people all over the world at risk. Speaking at a high-level roundtable on 27 July held at the Aid for Trade Global Review, they shared perspectives on activities they are undertaking and how they could engage in closer cooperation.
Participants agreed on the need to strengthen public awareness activities, to support developing countries in procuring legitimate medicines and to help them in the fight against illicit trade in medical products.
WTO Director-General Ngozi Okonjo-Iweala outlined her long-standing concerns with illicit trade: “Time and again, we see how illicit trade is threatening people's health and livelihoods, and how it undermines legitimate business activity and abets corruption.”
UK services hamstrung by 'bizarre' neglect in trade policy, lobby group says (City A.M.)
The UK’s services sectors are being hamstrung by political neglect and a lack of attention in trade policy, a top City group warned today.
Nicola Watkinson, Managing Director, International Trade and Investment at industry group The CityUK, said it was “a little bizarre” that the UK services industry still had to fight for visibility and inclusion in trade policy despite making up some 80 per cent of economic output.
“Prioritise trade agreements with those countries that are likely to secure the greatest economic benefits for the UK. Put trade in services at the heart of all of these negotiations,” she said.
India got highest aid for trade from developed countries in 2020 (Business Standard)
India received the highest aid for trade in 2020 at $2.7 billion from developed countries even as the receipts declined during the pandemic year compared to $3.9 billion received in 2019.
The World Trade Organisation-led aid for trade flows is particularly meant for the least developed economies. It consists of official development support to build supply-side capacity and trade-related infrastructure to enable such countries to participate in international trade.
Bangladesh was the second largest recipient of the aid, followed by Egypt, Ethiopia, Kenya, Vietnam, Pakistan, Morocco, Myanmar and Indonesia, among others. Institutions such as the World Bank, European Union Institutions, Asian Development Bank, and developed countries such as Japan, United States, Germany, France are among the top donors for the aid.
Brexit trade war looms for next PM as EU and UK continue to battle over hated deal (Express)
Anand Menon, Professor of European Politics and Foreign Affairs at King's College London, said Brexit was “far from done” as he warned the “already strained UK-EU relations” could only get worse due to disagreements over the hated deal. He issued the warning to Tory leadership contenders Liz Truss and Rishi Sunak continue to battle it out for their place in Number 10.
Professor Menon told them the “most pressing issue” facing them when they get in to power is the Northern Ireland Protocol as the UK continues to threaten to scrap parts of the deal.
“This could prompt a trade war and would worsen already strained UK-EU relations, which are hampering cooperation in areas of mutual benefit such as the Horizon research programme.”
China's foreign trade bucks trend, sets new records (News Ghana)
According to customs statistics, China’s foreign trade of goods jumped 9.4 percent year on year in the first half of this year. The total imports and exports in May and June grew 9.5 percent and 14.3 percent, respectively, reversing the decline in growth in April led by the COVID-19 resurgence. The month-by-month growth signified a V-shaped rebound in China’s foreign trade and has laid a solid foundation for the whole-year performance.
While the growth picks up, the quality of foreign trade is also improving. The proportion of general trade continues expanding, and the trade with major trading partners is on a rise. Besides, foreign trade entities have become more active and there’s a steady growth in the imports and exports of major products. As of June this year, China’s foreign trade had recorded positive growth for eight consecutive quarters.
China-Africa economic trade projects worth 170 million USD signed (News Track)
CHANGSHA- A total of 14 trade and economic cooperation projects and agreements worth nearly 170 million U.S. dollars were inked between China and various African countries on Thursday in central China's Hunan Province.
The deals, covering areas such as regional cooperation, strategic agreement, project financing, investment cooperation and trade procurement, were signed at the Promotion Conference for China (Hunan)-Africa Economic and Trade Cooperation, held in the city of Changsha.
The commerce departments of six Chinese provinces also jointly signed an agreement to advance economic cooperation and trade exchange with African countries at the conference.
Morocco, UK building thriving partnerships in trade, green finance (The North Africa Post)
Morocco and the United Kingdom are building thriving partnerships, including in trade, green finance and education, said the British Minister of State for Foreign Affairs for South and Central Asia, North Africa, the UN and the Commonwealth, Lord Tariq Ahmad.
“Our kingdoms are working together to deliver a shared vision of economies that are innovative and focused on building a sustainable future, resilient to the global challenges we all face,” Lord Ahmad said in a statement issued Thursday at the end of the visit he paid to Morocco July 25 to 27.
The British official praised the leadership of King Mohammed VI and the vision of reform set out in Morocco’s New Development Model, as well as Moroccan efforts to support growth, stability and adaptation to climate change in Africa.
LONDON, July 28, 2022 -- A new trade promotion campaign will target everywhere from Vancouver to Vanuatu as the Commonwealth Games kicks off in Birmingham.
It will spotlight businesses across the Commonwealth, showcasing why the UK is the best place in the world to invest, with our world-class talent, high spending consumer market and business-friendly regulatory landscape. It will also highlight our fantastic exporters to help stimulate global demand for British goods and services.
"This exciting campaign, reaching out to some nations for the first time, will raise awareness of the exciting opportunities to boost two-way trade, drive business and economic growth and support local communities."
UAE and Kenya to begin negotiations on Comprehensive Economic Partnership Agreement (The National)
The UAE and Kenya will soon start negotiations on a Comprehensive Economic Partnership Agreement, the UAE Ministry of Economy said in a statement on Friday.
Dr Thani bin Ahmed Al Zeyoudi, UAE minister of state for foreign trade, and Betty Maina, cabinet secretary, ministry of industrialization, trade and enterprise development, signed a joint statement in Nairobi announcing the intention to begin negotiations towards a Comprehensive Economic Partnership Agreement (CEPA) between the two countries.
Such an agreement will deepen trade and investment ties between Africa and the Middle East and boost the total value of UAE-Kenya non-oil bilateral trade, which grew to $2.3 billion last year.
Morocco, a strategic enclave between America and Africa (Atalayar)
Morocco's dynamic success has not gone unnoticed by the Global Policy Institute, an American think tank based in Washington, which has affirmed that the Kingdom can play an important role as a bridge between the United States and African economies.
In its article 'Business in Africa goes through Morocco', signed by Paolo von Schirach, the think tank's president, it highlights the choice of Morocco to host the US-Africa Business Summit that took place from 19 to 22 this month in Marrakech. Morocco's designation as host was not fortuitous, as the Kingdom has managed to develop and strengthen its political and commercial relations with several countries in the rest of the continent, particularly with sub-Saharan Africa.
For the Global Policy Institute, Morocco is already a "serious partner", capable of attracting US investment and playing an "essential role as a gateway and meeting point between the Americas and the economies of the African continent".
Referring to this US-Africa Business Summit organised by the Moroccan government, the think tank's president reported "real optimism" about the real opportunities for US investment in Africa, along with the partnerships that American companies are beginning to initiate with corporations on the African continent.
RCEP, Cambodia-China FTA give Cambodia larger exporting markets (Xinhua)
PHNOM PENH, July 29 -- The Regional Comprehensive Economic Partnership (RCEP) trade pact and the Cambodia-China Free Trade Agreement (CCFTA) have provided wider exporting markets for Cambodia, officials said on Thursday.
Ly Thuch, president of Cambodia's National Committee for the UN Economic and Social Commission for Asia and the Pacific (UN-ESCAP), said thanks to these free trade agreements, Cambodia's total export to other RCEP member countries totaled 3.28 billion U.S. dollars in the first half of 2022, up 10 percent year-on-year.
"Overall, these positive developments have transformed Cambodia into a more important and potential center for production, businesses and investments in the region, with larger and more competitive exporting markets for investors from all over the world," he said in a speech at the Policy Dialogue on the Economic and Social Survey of Asia and the Pacific 2022.
Dry Bulk Market: Coal Trade a Boon for Bulkers (Hellenic Shipping News Worldwide)
Coal imports of up to 40 million tons, coming into the EU from Russia, need to be replaced from other sources. This could present a significant opportunity for the dry bulk market. In its latest weekly report, shipbroker Intermodal said tha “amid the upcoming ban on Russian coal from the EU, which will be in full effect on August 10th, EU nations have been accelerating their coal imports as a direct reaction to the threat of a reduction in gas supply from Russia. The ban comes at a time when coal trade is already tight. As a result, thermal coal prices have been surging on the back of tight supply and geopolitical tensions”.
According to Intermodal’s Research Analyst, Ms. Chara Georgousi, “considering that the EU was importing approximately 35-40mn tonnes/year from Russia, these cargoes need to be supplied from elsewhere, namely US, Australia, South Africa, and Colombia. US accounts for the largest exporter of thermal coal to Europe at the moment, with exports surging to 11.2mn tonnes during 1H22, noting a 91.6% y-o-y increase. Amid intensified sanctions, US Government is exerting pressure on miners to increase production, therefore, trade flows from US to EU ports (mainly Netherlands and Germany) are expected to increase within 2H22”.
Iranian trade with China on the rise (Al-Monitor)
Iranian state media today reported a significant increase in the Islamic Republic’s trade with China.
Iranian exports to China rose 31% from January to June of 2022, reaching around $4.1 billion. Chinese exports to Iran also increased 16%, amounting to approximately $4.2 billion, the official Islamic Republic News Agency reported. Why it matters: Iran’s relations with the People’s Republic have been improving for some time. Iran is currently seeking to join the so-called BRICS alliance featuring China, Brazil, Russia, India and South Africa.
UK-GCC Trade Deal Could Be A Boon For Renewables (OilPrice.com)
As part of plans to expand and diversify its global trade partners, the GCC has launched negotiations with the UK on a free trade agreement that is expected to bolster the bloc’s economy, help attract investment and provide greater opportunities for local businesses.
The talks, which followed months of exploratory discussions, are focused on securing a free trade agreement that would reduce or remove tariffs on a series of goods and services.
While there is no official timeline for the completion of the deal, UK and GCC policymakers hope to launch the first round of negotiations in the third quarter of this year, with local and international media reporting that both sides are hopeful of securing a deal before the end of 2023.
Kyrgyzstan enterprises gain more opportunities on trade and export to EU market (Times of Central Asia)
BISHKEK — Six trainers were trained in digital presentation skills and facilitation techniques through the Ready4Trade Central Asia (R4TCA) project of the International Trade Center (ITC), funded by the European Union (EU). Kyrgyz enterprises now have the opportunity to learn more easily about international trade rules, the export process, EU market requirements, and quality and compliance standards, the Delegation of the European Union to the Kyrgyz Republic reported.
The essence of the event is to train trainers who come from the faculty of the Kyrgyz Economic University (KEU), which is the institutional partner of the "Support for Inclusive Development through Trade and Digitalization" component of the R4TCA project, in facilitation skills for these digital workshops.
The methodology offered by the International Trade Center is very unique in its nature and in the way it communicates information to students, has been tested in all five Central Asian countries, and has shown to be highly effective, being already well received by entrepreneurs.
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Logistics Performance Index: Nigeria ranks lowest In West Africa — Experts (Tribune Online)
The Managing Director/CEO, Analyst Data Service Ltd, Dr Afolabi Olowo-okere, has stated that Nigeria, in terms of Logistics Performance Index, ranks behind Ghana, Togo, South Africa, Egypt, Republic of Benin and Cameroon with a score of 1.97 percent.
He pointed out that Nigeria’s medium-term plan for the maritime sector recognises the country’s seaports as heavily congested due to the absence of dry ports and multi-modal transport infrastructure, stressing that the inland waterways are grossly under-utilised with only 3000 miles of about 10,000 miles currently navigable.
He said for Nigeria’s port to become the preferred destination in West Africa and Central Africa, and that there is a need to improve security and safety in the sector, leverage technology to improve efficiency and ease of business, and make inland waterways serve as an alternative cheap mode of transportation to decongest the seaports and deliver cargo closer to the hinterland.
SA customs officials strike: Commercial cargo movement improves (The Herald)
The movement of commercial cargo between Zimbabwe and South Africa has gradually improved after some customs officials from the neighbouring country who have been on strike over a pay increase returned to work at the weekend.
However, the larger number is still on strike.
“We would like to assure traders and travellers that we have put various contingency measures in place at land border posts to ensure minimal disruption during the current industrial action at SARS,” said the revenue collector.
Gold Trading Kicks Off on Nigerian Exchange Ahead of Launch (Bloomberg)
A newly licensed Nigerian commodities exchange started trading in gold ahead of its official launch this week, the first time the metal will be offered on a bourse in the West African nation.
The Lagos Commodities and Futures Exchange is licensed by the Securities and Exchange Commission to trade gold with the specification of the London Bullion Market Association’s 99.99% purity, targeting globally acceptable pricing and quality, according to Akinsola Akeredolu-Ale, managing director of the Lagos bourse.
The exchange is scheduled for a formal launch on July 28 and will in addition to gold trade other commodities including cashew, shea butter, paddy rice, maize, soy beans and sorghum, Akeredolu-Ale said in an interview. “The aim is to diversify the asset base of the capital market and improve government revenue sources,” he said.
New report reveals Maseru generates half of Lesotho’s GDP (UNECA)
A new report for the first time reveals that Lesotho’s capital city Maseru, which accounts for only 17 per cent of the country’s population, generates about half of the country’s annual gross domestic product (GDP) – a vital economic well-being indicator.
The report, developed by the Lesotho Bureau of Statistics with the support of the United Nations Economic Commission for Africa (ECA), was validated by Lesotho’s national and local government officials, data specialists, national account experts, development experts and urbanisation practitioners at a workshop in Maseru on 25 July 2022.
The report offers accurate evidence on the economic weight and performance of Maseru and identifies measures that could help unlock its full potential. Findings can support the government in prioritising policy interventions to attract investors, improve competitiveness and strengthen productive economic sectors.
Botswana’s economic output back to pre-pandemic level, IMF says (CGTN Africa)
Botswana is one of the few economies in Sub-Saharan Africa whose output has recovered to its level before the COVID-19 pandemic took hold, the International Monetary fund said on Wednesday.
The lender attributed the positive trend in part to the strong demand for diamonds globally. The IMF also cited Botswana’s strong vaccination efforts against COVID-19 and the country’s “prudent macroeconomic management”.
“The recovery is expected to continue through the medium term, but there is significant uncertainty,” the IMF said in its report on Botswana. “Growth will be supported by higher prices and demand for diamonds, increased copper production, prospects for a good harvest, less COVID-19 mobility restrictions, and more international tourist arrivals.”
Nigeria has the second largest market for cryptocurrencies in Africa in 2022 – Bitget report (Nairametrics)
A new cryptocurrency market report titled, “What Does the Future Hold for Crypto Exchanges,” has revealed that in terms of the cryptocurrency market size in Africa, Nigeria has the second largest market, behind South Africa. The report mentions that South Africans primarily use crypto as an alternative investment, while Nigerians use it mainly for savings.
The report explains that the African continent’s cryptocurrency centralized exchange trading accounts for less than 1% of the spot and derivative trading seen around the world. It went further to rank South Africa as #1 on the continent as a result of the country’s “more advanced financial infrastructure and fiat-to-crypto payment rail.”
In terms of Africa’s future potential in the cryptocurrency space, the report reads, “We expect strong growth in crypto adoption in Africa. However, derivatives may lag given their limited use in traditional markets.”
AfDB, AGF sign a $110 million financing facility with CRDB Bank (IPPmedia)
Tanzania: The African Development Bank (AfDB) signed a $60 million financial package comprising $50 million subordinated debt to support CRDB’s regional expansion efforts and a senior loan of $10 million to support CRDB’s efforts in accelerating access to finance for women SMEs in Tanzania.
The facility is also coupled with $175,000 technical assistance grant through AfDB’s AFAWA Initiative supported by the Women Entrepreneurship Initiative (WeFI) to strengthen CRDB’s capacity to support women entrepreneurs in Tanzania to become more bankable.
Similarly, the African Guarantee Fund (AGF) has renewed its guarantee line to CRDB Bank with $ 50 million.
African trade and integration
DFIs pledge support for African Infrastructure Investment Fund (Engineering News)
British International Investment (BII) and FMO on July 27 made a joint commitment to the African Infrastructure Investment Fund 4 (AIIF4), managed by African Infrastructure Investment Managers (AIIM), aimed at supporting AIIF4 in reaching its $500-million target fund size.
Anchor investor BII – the UK’s development finance institution, has committed $76-million, while FMO – the Dutch entrepreneurial development bank, has committed $40-million to AIIM’s fourth pan-African fund.
As such, the AIIF4 will assist AIIM in building on the successful performance of its predecessor funds by investing across three priority infrastructure subsectors – renewable energy, such as rooftop solar; digital infrastructure, including mobile telecoms towers, data centres and fibre-optic networks; and mobility and logistics, such as ports, roads and other supporting infrastructure.
AfDB woos American businesses to investment opportunities in Africa (BusinessAMLive)
The African Development Bank Group (AfDB) has called on American businesses to invest in the opportunities created by the bank’s $1.5bn African Emergency Food Production Facility, established to curb the impact of the current global food crisis worsened by Russia’s invasion of Ukraine.
Akinwumi Adesina, AfDB president, while speaking in the US-Africa Business Summit held in Marrakech, Morocco, urged American investors to see Africa as a logical investment destination where they can engage in win-win partnerships.
Adesina, who confirmed that U.S. investments were critical for accelerating infrastructure development on the world’s second largest continent by population and size, also gave a strong assurance to the investors that Africa is a secure, competitive and profitable market for investment.
Global economy
WTO members show restraint in trade-restrictive measures despite economic uncertainty (World Trade Organization)
The Director-General’s mid-year report on trade-related developments covering mid-October 2021 to mid-May 2022 shows WTO members continued to exercise restraint in imposing trade restrictions. The report, presented to members on 27 July at a Trade Policy Review Body meeting, looks at the use of trade measures at a time when the world faces severe challenges and economic uncertainty. Speaking at the launch of the report, DG Ngozi Okonjo-Iweala said it is important not to underestimate the risks generated by the COVID-19 pandemic and the impact of the war in Ukraine.
During the review period covered by the report, the estimated trade coverage of the regular (non-COVID-19-related) import-facilitating measures introduced by WTO members (USD 603.2 billion) far exceeded the trade coverage of import-restrictive measures (USD 23.5 billion).
The report highlights that the global economic outlook has deteriorated since February as a result of the war in Ukraine, prompting the WTO to downgrade its forecasts for world trade over the next two years. The WTO, in its latest forecast of 12 April 2022, expects merchandise trade volume growth of 3.0% in 2022, down from 4.7% in the previous forecast from last October.
Heads of multilateral agencies outline central role in addressing multiple crises (World Trade Organization)
The WTO, the International Monetary Fund (IMF), the World Bank, the European Bank for Reconstruction and Development (EBRD) and the Asian Development Bank (ADB) outlined on 27 July the role they play in supporting sustainable development and helping developing economies respond to the COVID-19 pandemic, the war in Ukraine and climate and energy-related crises. The session held at the Aid for Trade Global Review looked at where Aid for Trade financing is being directed, what it is achieving and how future priorities should balance short-term pressures with longer-term needs.
Heads of the five agencies examined how the multiple crises facing the world are impinging on the trade and development prospects of developing economies, with countries everywhere facing inflationary pressures and high food and energy prices, hitting the poorest people the hardest. These issues are converging at a time when the need to take action on greenhouse gas emissions and to support a just transition to a low-carbon model of growth has never been more pressing, they said.
In her opening remarks, WTO Director-General Ngozi Okonjo-Iweala said: "These institutions, which have a growing role in supporting sustainable development and supplying local public goods, are also at the forefront of addressing trade-related capacity and infrastructure issues, which continue to roll back the economic integration of many developing and least developed countries (LDCs)."
The surge in the dollar is slowing global trade and worsening debt crises around the world, the IMF warns (Business Insider Africa)
The surge in the dollar is adding to the stresses afflicting the global economy, the International Monetary Fund has said, by slowing world trade and piling pressure on indebted developing countries.
The dollar index, which measures the currency against a basket of its peers, has risen around 16% this year as the Federal Reserve has hiked interest rates faster than other major central banks, drawing investor money back towards the US.
Worries about the global economy have also powered the surge, as the dollar is seen as a safe haven at times of stress.
British exporters report stagnating trade as post-Brexit delays blamed (The Guardian)
Britain’s exporters have seen their overseas trade stagnate over the past year despite strong growth in domestic demand for their products and booming export markets, according to a survey.
The British Chambers of Commerce (BCC) said that a survey of 2,600 exporters found a quarter had suffered a fall in exports and another 46% reported no change.
Firms said Brexit was one of the main barriers to exports, after the introduction of customs checks and delays at the border.
UK and Morocco's growing partnership GOV.UK
Minister of State for South and Central Asia, North Africa, UN and the Commonwealth, Lord (Tariq) Ahmad of Wimbledon visited Morocco from 25th to 27th July, following the 300th anniversary of the first bilateral trade treaty with Morocco.
During his visit he met with government Ministers including the Minister for Foreign Affairs Nasser Bourita, Minister for Industry and Commerce Ryad Mezzour, Minister for Higher Education, Scientific Research and Innovation Abdellatif Miraoui and Minister for Energy Transition and Sustainable Development, Leila Benali, as well as the Speaker of Morocco’s House of Representatives, Mr Rachid Talbi Alami. Discussions focused on deepening collaboration between the UK and Morocco on trade, education, climate, clean energy and green growth, as well as on regional and international issues of common interest, including the situation in Libya, and the global implications of the Russia-Ukraine war on food and energy security.
Turkey offers duty relief on 261 tariff lines (The Express Tribune)
Turkey has offered concessions on 261 tariff lines to Pakistan under the Trade in Goods Agreement with the objective of achieving annual bilateral trade value of $5 billion.
The development came in the wake of Prime Minister Shehbaz Sharif’s visit to Turkey about two months ago. Pakistan and Turkey had been in talks for the past several years to ink a trade agreement, but Turkish businessmen were not in favour of the move.
Now, Ankara has offered concessions to Islamabad on 261 tariff lines, which include key items of Pakistan’s export interest from both the agriculture and industrial sectors.
Middle East And Africa Dairy Market To Be Driven By The Growing Dairy Trade Globally During The Forecast Period Of 2021-2026 (This Is Ardee)
The new report by Expert Market Research titled, ‘Middle East and Africa Dairy Market Report and Forecast 2021-2026’, gives an in-depth analysis of the Middle East and Africa dairy market size, share assessing the market based on its segments like Product, and Regional markets among others. The report tracks the latest trends in the industry and studies their impact on the overall market. It also assesses the market dynamics, covering the key demand and price indicators, along with analysing the market based on the SWOT and Porter’s Five Forces models.
The increase in milk exports from important markets in Africa, Central America, Europe, and North America boosted the trade. With the exception of Iran, yoghurt and sour milk are gaining popularity across the region. In the region, whey and whey proteins are also in high demand. The leading regional dairy markets are Saudi Arabia, South Africa, the United Arab Emirates, Egypt, and Iran.
Iran Backs Azerbaijan's Accession To D-8 (Eurasia Review)
The foreign minister of Iran voiced support for the Republic of Azerbaijan’s bid to join the D-8 Organization for Economic Cooperation, saying enlargement of the D-8 and accession of new members would serve as a tool for the realization of its goals.
Hossein Amirabdollahian delivered an address via videoconference to the 20th session of the Council of Ministers of D-8, held in the Bangladeshi capital of Dhaka on Wednesday.
“The Organization should move quickly to accept new members,” he stated, describing economic diplomacy and deepening ties with the neighboring and Muslim countries as two of the priorities in Iran’s foreign policy agenda.
China, Vietnam, and Indonesia among fastest-growing countries for coming decade (Phys.org)
China, Vietnam, Uganda, Indonesia, and India are projected to be among the fastest-growing economies to 2030. That is the conclusion of researchers at the Growth Lab at Harvard University who presented new growth projections in The Atlas of Economic Complexity. The release provides the first detailed look at 2020 trade data, including major disruptions to tourism and transport vehicle exports from the global pandemic. As the effects of the pandemic dissipate, long-term growth is projected to take off between Asia, Eastern Europe, and East Africa. China is expected to be the fastest growing economy per capita, even if the projection finds growth to be slowing from what the country achieved over the past decade. The research finds that countries that have diversified their production into more complex sectors, like Vietnam and China, are those who will experience the fastest growth in the coming decade.
The Growth Lab researchers released new country rankings of the Economic Complexity Index (ECI), which captures the diversity and sophistication of the productive capabilities embedded in the exports of each country. Despite the trade disruption of the pandemic, countries' economic complexity rankings remain remarkably stable. The ECI ranking finds the most complex countries in the world held steady with, in order, Japan, Switzerland, Germany, South Korea, and Singapore at the top. Other notable countries include the United Kingdom at 10th, the United States at 12th, China at 16th, and Italy at 17th. The measure of economic complexity is able to closely explain differences in country income levels. Among the most complex countries, the greatest improvements in the rankings for the decade ending in 2020 have been made by the Philippines (ECI: 30th), China (16th), and South Korea (4th). Those developing economies that have made the greatest strides in improving their complexity include Vietnam (51st), Cambodia (72nd), Laos (89th), and Ethiopia (97th).
85% of planned CIIE exhibition area already booked (SHINE)
Preparations for the upcoming 5th China International Import Expo are proceeding well, with 85 percent of the planned exhibition area already booked. To date, more than 270 Fortune Global 500 enterprises and industry leaders have signed up for the November 5-10 expo. It is noteworthy that of all the Fortune Global 500 enterprises and industry leaders who participated in previous editions of the expo, nearly 90 percent will be in attendance this year, too.
US Trade Rep. to host AGOA ministerial meeting (addisstandard.com)
United States Trade Representative Katherine Tai announced she will host a meeting of sub-Saharan African trade ministers and senior officials on 13 December 2022. The ministerial meeting will occur during the week of the United States-Africa Leaders’ Summit that President Joe Biden and Vice President Kamala Harris announced last week. “The meeting will discuss expanding trade and investment relations and implementation of the African Growth and Opportunity Act (AGOA),” according to a statement from State department.
“The 2022 Africa Growth and Opportunity Act Ministerial Meeting will be a valuable opportunity to re-affirm the United States’ engagement with the continent,” said Ambassador Katherine Tai. “I look forward to welcoming my fellow trade ministers to Washington, D.C. this December for productive and thoughtful discussions on the future of this important relationship.”
The meeting will be the first since since President Biden announced the termination of three sub-Saharan African countries, including Ethiopia from AGOA privileges effective January 1, 2022.
Q1 Trade With Africa Tops $480m (Financial Tribune)
Trade between Iran and African countries stood at 807,180 tons worth $483.56 million in the first quarter of the current fiscal year (March 21-June 21). South Africa with 229,834 tons worth $140.81 million, Nigeria with 129,003 tons worth $80.33 million and Mozambique with 82,462 tons worth $57.2 million were the main trade partners during the period. Data released by the Islamic Republic of Iran Customs Administration show Iran exported 788,028 tons of goods worth $460.29 million to the African continent during the period. Iran’s main export destinations in Africa were South Africa with 229,511 tons worth $137.77 million, Nigeria with 129,003 tons worth $80.33 million and Mozambique with 82,462 tons worth $57.2 million.
Barbados to host first-ever ACTIF2022 (Loop News Barbados)
The Government of Barbados and the African Export-Import Bank (Afreximbank) have announced the first-ever Africa-Caribbean Trade and Investment Forum (ACTIF2022), scheduled to take place in Bridgetown, Barbados, from August 31 to September 3, 2022.
ACTIF2022 will be held under the theme “One People, One Destiny: Uniting and Reimagining Our Future”. The Forum aims to foster the development of strategic partnerships between the business communities in Africa and the Caribbean, to bolster bilateral cooperation and increase engagement in trade, investment, technology transfer, innovation, tourism, culture, and other sectors.
Additionally, ACTIF2022 is expected to contribute to the implementation of the African Continental Free Trade Agreement (AfCFTA) and the Caribbean trade development agenda, further reflecting the deep-rooted ties between Africa and the Caribbean based on their shared history, culture, common
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Local news
IMF raises South Africa’s growth outlook for 2022, but says global picture tilted to the downside (BusinessTech)
The International Monetary Fund’s (IMF) latest global economic outlook review sounds the alarm bell for a slowdown in global economic growth – but prospects are more positive for South Africa.
Inflation this year is anticipated to reach 6.6% in advanced economies and 9.5% in emerging market and developing economies—upward revisions of 0.9 and 0.8 percentage points respectively—and is projected to remain elevated longer.
The global economy, still reeling from the pandemic and Russia’s invasion of Ukraine, is facing an increasingly gloomy and uncertain outlook, the IMF said, with many of the downside risks flagged in the group’s April World Economic Outlook beginning to materialise.
GIPC urges business investment in Central Region (Graphic Online)
The Ghana Investment Promotion Centre (GIPC) has urged investors to capitalise on the Central Region's untapped economic potential to grow their companies and create jobs in the region.
It said doing so would help the local economy, provide jobs and speed up the region's socioeconomic growth.
This was made known during the GIPC's Central Regional Sensitisation tour earlier in the month to show traditional leaders and the metropolitan municipal and district assemblies (MMDAs) the importance of making land available for investment.
Steel market embracing need for decarbonisation, says Kumba Iron Ore (Engineering News)
JOHANNESBURG – At a time when steelmakers the world over are taking strong steps to decarbonise steelmaking, Kumba Iron Ore’s high-quality lump and iron (Fe) is highly sought after, which positions the Johannesburg Stock Exchange-listed mining and marketing company well in the global fight against climate change.
Simultaneously, steel demand is expected to increase significantly as a result of the massive global transition to renewable energy.
This is because the steel intensity in renewable power infrastructure is 10 to 30 times more than the steel intensity of fossil-based power infrastructure, making steel a vital energy transition ingredient.
Nigeria: NCS draft bill excludes AfCFTA, trade facilitation agreement, as NCMDLCA seeks withdrawal (Daily Sun)
The President, National Council of Managing Director of Licensed Customs Agents (NCMDLCA), Lucky Amiwero, has petitioned President Muhammadu Buhari and the Minister of Finance, Zainab Ahmed to order the withdrawal of the Nigeria Customs Service (NCS) Draft Bill 2022 from the National Assembly.
This is even as he said that the bill does not reflect the Trade Facilitation Agreement (FTA) and African Continental Free Trade Area (AFCFTA).
He said due to the importance of the Customs and Excise Management Act (CEMA) to the economy as an instrument that assists the Federal Government to formulate proper trade and fiscal policy direction, the draft bill must be withdrawn, reviewed and redrafted to accommodate the shortfalls of the international conventions, treaties and protocol missing in the draft.
Webb Fontaine Awarded Contract with Benin Government for Implementation of New Customs System in Replacement of ASYCUDA World (PR Newswire)
Webb Fontaine, a leading provider of advanced and innovative trade and Customs services, has announced its Customs Webb solution has been chosen by Benin as their new Customs system, in replacement of ASYCUDA World.
The project strengthens Webb Fontaine's long-standing partnership with Benin Government, who has ambitions to expand and develop into one of the region's most technologically advanced trade environments.
The project continues towards a fully integrated approach to trade, interconnecting all major trade platforms such as the Single Window, the Port Community System, the e-Tracking solution and now through Customs Webb the Customs System. As a central and critical part of the trade environment, it is crucial and urgent for Governments to operate modern and efficient Customs Systems.
President Museveni says Uganda will continue trading with Russia (CGTN Africa)
Ugandan President Yoweri Museveni on Tuesday said his country will continue trading with Russia, noting that the East African nation will not be drawn into making decisions against Moscow based on its ongoing military operation in Ukraine.
Museveni made the remarks at a joint press briefing with visiting Russian Foreign Minister Sergey Lavrov at State House in Entebbe.
“We want to trade with Russia. We want to trade with all countries of the world. We don’t believe in being enemies of somebody’s enemy,” he said.
Ghana: Small and Medium Enterprises rally support to compete in AfCTA (News Ghana)
Small and Medium Enterprises (SMEs) exhibiting at the ongoing Central Regional Trade, Tourism and Investment Fair, have called for support to enable them to participate in the African Continental Free Trade Area (AfCFTA).
Representing about 90 per cent of businesses participating in the Fair, the SMEs in separate interviews with the Ghana News Agency, described the sector as the backbone of Ghana’s economy.
According to the SMEs, the support should focus on innovative trade policies, trade infrastructure, improved capacity, trade information and facilitation, market access for growth and expansion.
Sierra Leone: African Development Fund approves $2 million grant to boost food production (AfdB)
The Board of Directors of the African Development Fund, the concessional window of the African Development Bank Group, has approved a grant of $2 million to boost food production in Sierra Leone.
The program falls under the African Development Bank Group’s $1.5 billion African Emergency Food Production Facility, a response to the global food crisis that resulted from the Russia-Ukraine conflict, which has deepened existing food insecurity in Sierra Leone.
The program will also benefit rice value chain actors and support the government of Sierra Leone to improve the regulatory environment in order to achieve climate-resilient agricultural development.
Tap into EAC market to increase incomes, manufacturers told (The Star Kenya)
Kenyan manufacturers have been challenged to take advantage of the expanded East African Community market to create more jobs and increase incomes. EAC and Regional Development PS Kevit Desai said with the inclusion of the Democratic Republic of Congo, the market size population has hit 350 million with a turnover of $250 billion.
“This market holds endless opportunities to organisations like Capwell to diversify their manufacturing and, most importantly, to achieve what EAC espouses which is value addition and value chains to ensure the wealth reaches every citizen in their respective countries,” Desai said.
Revenue Shortfall: Nigeria's Economy Is Like A 'Truck Powered With Volkswagen Engine'---Prof Ken Ife (The Whistler Nigeria)
The various fiscal and monetary challenges facing the Nigerian economy has made it to become so inefficient and currently performing sub-optimally, according to finance and economic experts.
Specifically, the depreciation of the naira, the huge debt burden, the revenue underperformance and the country’s over reliance on import is seriously having negative impact on the economy.
The Medium-Term Expenditure Framework Report for 2023-2025 showed that gross oil and gas federation revenue for the first four months of the year was projected at N3.12trn but as of April 30, only N1.23trn was realised, representing a mere 39 per cent performance.
Ghanaian, Dutch Businesses to Explore Business Opportunities (Top Africa News)
A statement issued by the organisers in Accra yesterday said, "This year's objective is to bridge the gap between Dutch investors and businesses and Ghanaian businesses as well as provide an opportunity to know more about the changing trends in e-Commerce, digitalisation, data censoring and knowing the latest products and services in the business technology industry."
The statement said representatives of authorities from both countries would have the opportunity to discuss Netherland-Ghana partnerships, trade and investments.
At least 200 investors, companies, and entrepreneurs would have the opportunity to visit The Netherlands to discuss business opportunities. Slated for September 28 to 30, 2022 this year's Netherland-Ghana Business fair; is under the theme: "Our Digital Future: Ghana beyond 2022".
Kenya seeks Bangladeshi investment in agriculture, ICT (The Business Standard)
Director General of Bilateral and Political Affairs of Kenya Amb Moi Lemoshia has invited Bangladeshi entrepreneurs to invest in the agriculture and ICT sector in Kenya, which will give them access to other African countries since Kenya is a member of Common Market for Eastern and Southern Africa (COMESA) and East African Community (EAC).
"Kenya has a warm diplomatic relation with Bangladesh. Now we want to turn it into a good trade relation," said Lemoshia during a meeting with the Dhaka Chamber of Commerce and Industry (DCCI) on Monday.
As the economy of both Bangladesh and Kenya is SME driven, he suggested a collaboration between the two country's SME sectors. He also urged for a strong partnership of private sectors and chamber-to-chamber relations for technology transfer and training.
South Africa: Banking sector continues to progress transformation target, report shows (Engineering News)
Banks continued to meet many of the empowerment and transformation targets set out in the Financial Sector Code (FSC), despite the severe economic contraction of 6.4% experienced in 2020, which reduced opportunities for job creation and inclusive economic growth.
This is according to industry organisation the Banking Association of South Africa’s ‘Transformation in Banking Report 2022’.
The report points out that, until the South African economy recovers from the years of State capture, maladministration, political uncertainty and a lack of urgent economic reforms, sustainable black economic empowerment (BEE) will be hampered.
African trade and integration
The African Development Bank Group and the Secretariat of the African Continental Free Trade Area (AfCFTA) have signed a Protocol of Agreement for an $11.24 million support package to enhance the Secretariat’s effective implementation.
The signing took place on 25 July 2022, on the margins of the ninth meeting of the AfCFTA Council of Ministers responsible for trade, held in Accra, Ghana.
The AfCFTA Secretariat, currently in phase II of its implementation phase, will benefit from this support package, which aims to boost sustainable intra-Africa trade and to augment the number of participating African member states. The funds are intended to move the African trade integration agenda forward.
AfCFTA secretariat commences pilot trading with seven countries (Guardian Nigeria)
Seven countries, including Rwanda, Cameroun, Egypt, Ghana, Kenya, Mauritius and Tanzania have been selected among countries to start trading under the African Continental Free Trade Area (AfCFTA) framework in a pilot phase.
The move seeks to test the environmental, legal and trade policy basis for intra-African trade, according to the AfCFTA secretariat.
According to the AfCFTA Secretariat, the initiative seeks to demonstrate that AfCFTA is functioning and send a political message to countries that are yet to submit their provisional schedules of tariff concessions in accordance with agreed modalities.
Africa’s top renewable firm may raise $4bn after takeover (Engineering News)
Africa Finance Corporation (AFC) and Egypt’s Infinity Group plan to raise as much as $4-billion to double the size of a recently acquired business that’s already Africa’s biggest renewable power company.
The two firms agreed to buy Lekela Power last week and are seeking between $2.5-billion and $4-billion from capital markets over the next four years, Samaila Zubairu, AFC’s chief executive officer and president, said in an interview.
The duo are looking to take advantage of a drive by governments to increase access to electricity in Africa, the world’s poorest continent, through the provision of renewable energy from abundant solar and wind resources. Infrastructure-investment specialist AFC, based in Nigeria, and Infinity are buying Lekela from a group led by Actis LLP in a transaction valued at $1.5-billion.
Ministers of Finance conclude discussions on access to finances; debt restructuring and Africa’s credit rating (African Union)
African Union Member States Ministers of Finance, Monetary Affairs, Economic Planning, and Integration concluded their deliberations focused on “Improving Africa’s access to Capital: Debt Management and the Rising Influence of Credit Rating Agencies”. The meeting convened under the 5th Ordinary Session of the Specialized Technical Committee made far-reaching recommendations on assessments by Member States, on the state of debt crisis in their respective countries as way of promoting transparency and accountability, which in turn facilitates debt restructuring and reduces vulnerabilities. The Ministers of Finance and Central Bank Governors further recommended for the establishment of a regulatory institution in Africa in order to strengthen mechanisms on tax transparency, effective and prudential fiscal management, and combating illicit financial flows.
The Ministers reiterated the need to establish an African Credit Rating Agency on the basis of self-sustainability, political and financial autonomy, and adopted the Tax Strategy and the Strategy on curbing Illicit Financial Flows (IFFs). The STC meeting accepted the proposal of Afreximbank and ATIA to be designated as Specialized Agencies of the African Union. The STC requested African Union Member states to ensure a significant proportion of their annual budgets are committed to the financing of industrialisation projects, supported by prudential taxation policies and practices to enhance domestic resource mobilization, to minimise rigidities in credit creation.
IFC invests $9.4bln in Africa's private sector development (ZAWYA)
US-based International Finance Corporation (IFC) has provided $9.4 billion in financing to 36 African countries between July 1, 2021, and July 30, 2022, to develop regional pharmaceutical manufacturing, boost intra-Africa trade and strengthen food security, the fund said in a statement. The investments include $3 billion in trade financing, $2.1 billion for green transition and $861.7 million to increase digital connectivity. In addition, the fund provided $603 million in agriculture financing to strengthen food security. Financing across Africa included short-term finance ($3 billion) and mobilisation ($2.6 billion), with 49 percent of the funds going to low-income and fragile and conflict-affected states.
PEBEC to boost Nigeria-Botswana trade, investment drive (Daily Trust)
The Presidential Enabling Business Environment Council (PEBEC) has said it will work with the Republic of Botswana, to create a favourable business climate for the ease of doing business for more trade investment activities in Nigeria.
The Special Adviser to the President on Ease of Doing Business (EoDB), Dr Jumoke Oduwole, stated this on Tuesday, during a virtual trade promotion meeting with private and public business owners in Nigeria and Botswana.
“We have states that are doing incredibly well in attracting and poaching private sector manufacturers. Companies in Botswana would do well to just look at all the companies here and see how we can collaborate particularly as we charge for the African Continental Free Trade Area (AfCFTA),” Oduwole said.
Verify Engineering eyes export market (The Herald)
Technology development agency Verify Engineering, whose medical oxygen plant was opened less than a year ago by President Mnangagwa, is not just supplying Zimbabwean hospitals but has already won contracts in Mozambique, is in advanced negotiations in Botswana and is targeting Zambia and Malawi.
In an interview at the plant in Feruka near Mutare recently, Verify Engineering CEO Engineer Pedzisai Tapfumaneyi said the plant was meeting Zimbabwean requirements and was now pushing exports. “We have started registering our products with organs that guide international trade like Comesa and Sadc and we are also riding on the bilateral agreements which have been done with Zimbabwe,” he said.
Envoy: South Africa, Nigeria should collaborate for effective implementation of AfCFTA (TheCable)
Thami Mseleku, South Africa’s high commissioner to Nigeria, has called for a stronger collaboration between the two countries for the effective implementation of the African Continental Free Trade Area (AfCFTA) agreement.
The high commissioner said collaboration between South Africa and Nigeria would go a long way to facilitate the acceleration of development on the continent and would also enhance the implementation of AfCFTA.
“At the moment the main issue for us in Africa is to make the Africa Free Trade agreement work in practice, not just on paper, and for that to happen, the leading economies of Africa should collaborate,” he said.
Africa urged to end reliance on food and pharmaceutical imports (SABC News)
The conflict between Russia and Ukraine has worsened commodity price increases. As a result, farmers in Africa face serious fertilizer shortages. Plans are now afoot to avert a famine in parts of Africa. The African Development Bank (AfDB) approved a $1.5 billion financing facility for emergency food production, with the aim of averting a looming food crisis. AfDB president Akinwumi Adesina told Reuters, “Africa should not allow itself to be vulnerable in excessively depending on others, whether it is for vaccines or whether it is for food.”
Angola, Egypt Strengthen Bilateral Cooperation (Energy Capital & Power)
Angola is pursuing improved cooperation with Egypt as the country looks at strengthening trade and investment within the energy, industry and commercial sub-sectors.
Leveraging Egypt’s expertise, particularly within oil, gas, renewable energy and industrial engineering, the southern African country has prioritized foreign investment, intra-African trade and economic diversification. Speaking during the opening of an economic forum between the two countries this month, Angola’s ambassador to Egypt, Nelson Manuel Cosme, emphasized that the country is officially open to foreign investment.
Logistics, fintech combine to address Africa's transport challenges (Creamer Media's Engineering News)
Financial institution Standard Bank has attributed the success of its recent direct minority equity investment into technology-enabled logistics solution Tripplo to its ability as a large, established corporate to work effectively with small, agile start-ups. The bank says this is the key to unlocking value chains, particularly among tech start-ups. Standard Bank says big corporations partnering with start-ups was an untested and undeveloped space, with few models having been developed to date and few examples of successful collaborations.
Tanzania joins Kenya, Uganda tax squeeze on gamblers’ winnings (The East African)
Tanzania has this month introduced a gaming tax on the amount or value of winnings through casinos and sports betting, tightening the noose on gamblers already squeezed by levies in neighbouring Kenya and Uganda.
In changes to its Gaming Act, Tanzania said levies of 12 percent and 10 percent are now applicable on the amount or value of all winnings in casinos and sports betting, respectively joining its East Africa Community partners Kenya and Uganda, which have both already gone hard on gamblers with punitive taxes to discourage the addictive habit.
The move by Tanzania solidifies a trend in which EAC countries are cracking down on gambling addiction through punitive taxation and other regulatory measures.
Global economy
Global Economic Growth Slows Amid Gloomy and More Uncertain Outlook (IMF)
The global economy, still reeling from the pandemic and Russia’s invasion of Ukraine, is facing an increasingly gloomy and uncertain outlook. Many of the downside risks flagged in our April World Economic Outlook have begun to materialize.
Higher-than-expected inflation, especially in the United States and major European economies, is triggering a tightening of global financial conditions. China’s slowdown has been worse than anticipated amid COVID-19 outbreaks and lockdowns, and there have been further negative spillovers from the war in Ukraine. As a result, global output contracted in the second quarter of this year.
Under our baseline forecast, growth slows from last year’s 6.1 percent to 3.2 percent this year and 2.9 percent next year, downgrades of 0.4 and 0.7 percentage points from April. This reflects stalling growth in the world’s three largest economies—the United States, China and the euro area—with important consequences for the global outlook.
WTO chief calls on members to work on MC12 outcomes to respond to global trade challenges (Institute of Export)
The World Trade Organisation (WTO) needs to keep building on its successes and guard against complacency following a historic June meeting, according to its director general.
Speaking at a meeting of the General Council, the highest decision-making body of the WTO, Ngozi Okonjo-Iweala this week called on the organisation’s members to build on the achievements from the 12th Ministerial Conference (MC12), held in Geneva in June 2022. She also urged members to step up efforts so that the organisation continues to respond to the challenges facing the global trading system.
The Institute of Export & International Trade attended MC12 and its director general, Marco Forgione, echoed the WTO chief's clarion call. “The outcomes of MC12 were hard-won and it is vital that we continue to build upon these reforms without losing momentum,” he said.
Dubai forms higher committee for future technology and digital economy (The National)
Dubai has formed a higher committee for future technology and digital economy as the emirate continues to boost efforts to establish itself as a global hub for the future economy. The goal of the new body is “to promote Dubai's supremacy in the digital economy globally”, Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, said in a tweet on Tuesday. “We are working as a team to enhance Dubai’s position as a global birthplace and research laboratory for future technologies and one of the world’s top 10 metaverse economies, in line with the Dubai Metaverse Strategy,” Sheikh Hamdan, who will be chairman of the committee, said.
Policymakers, businesses stress D-8 PTA implementation (newagebd.net)
Policymakers and business leaders on Tuesday emphasised the implementation of a preferential trade agreement the member countries of the Developing-8 (D-8) signed to facilitate trade and investments among the eight countries.
The D-8, an economic bloc for development cooperation among Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey, was established around the concept of cooperation among major Muslim developing countries across South Asia, Southeast Asia, Europe and Africa.
At the inaugural ceremony of the D8 Chambers of Commerce and Industry Business Forum and Expo 2022 held at the Sonargaon Hotel in the capital Dhaka on Tuesday, policymakers and business leaders said that the D-8 countries should have a consensus on enhanced cooperation to overcome the present global economic crises caused by the Covid pandemic and the Russia-Ukraine war.
UN and World Economic Forum Behind Global 'War on Farmers' (The Epoch Times)
The escalating regulatory attack on agricultural producers from Holland and the United States to Sri Lanka and beyond is closely tied to the United Nations’ “Agenda 2030” Sustainable Development Goals and the U.N.’s partners at the World Economic Forum (WEF), numerous experts told The Epoch Times.
Indeed, several of the U.N.’s 17 Sustainable Development Goals (SDGs) are directly implicated in policies that are squeezing farmers, ranchers, and food supplies around the world.
If left unchecked, multiple experts said, the U.N.-backed sustainability policies on agriculture and food production would lead to economic devastation, shortages of critical goods, widespread famine, and a dramatic loss of individual freedoms.
Lavrov Meets Arab League Leaders In Egypt, Engages In African Tour (Russia Briefing)
Sergei Lavrov, Russia’s Foreign Minister, has been in Africa discussing food and fertilizer supplies amongst regional concerns over supply chains impacted by the Ukraine conflict. He has visited Egypt, and the Democratic Republic of Congo, with Ethiopia and Uganda to follow on a trip notable because Russia has made commitments to Africa to discuss these issues while the EU nations have not.
Bilateral trade between Russia and Egypt has been growing, reaching US$4.7 billion in 2021. An EAEU trade agreement would push that far higher and also allow Egypt easier trade with fellow Islamic nations Kazakhstan and Kyrgyzstan, about to become far more accessible via the INSTC routes through Iran.
While in Cairo, Lavrov met with Arab League Secretary General Ahmed Aboul Gheit, and reiterated mutual interest in invigorating business ties. The Arab League includes Algeria, Bahrain, Comoros, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, United Arab Emirates and Yemen.
Dr. Peter Mathuki EAC Secretary General To Be Keynote Speaker Of EABN 17th Annual Trade & Investment (EIN News)
The East Africa Business Network (EABN) is proud to announce the Honorable Dr. Peter Mutuku Mathuki as the Keynote speaker at the 17th Annual EABN Investment & Trade Conference. “We are extremely honored to welcome Dr. Mathuki to the United States and to this year’s annual event” says the EABN’s Founder, Benson Kioko Kasue. “This is our BreakOut year” says Kasue, “we encourage everyone interested to register today and join us as we celebrate the future of business trade, investment and collaborations, September 29th – October 1st 2022 at the DFW Sheraton in Irving, Texas.
Egypt-Serbia bilateral trade nears $80mln in 2021 (ZAWYA)
The value of the trade exchange between Egypt and Serbia amounted to $79.70 million in 2021, Egypt's Minister of Trade and Industry, Nevine Gamea, announced.
Egypt’s exports to Serbia reached $42.40 million last year, while the Arab Republic imported goods worth $37.40 million from the European country. Moreover, the minister pointed out that items of trade exchange between the two countries included phosphates, vegetables, fruits, plastics, fertilisers, tobacco, machinery, and electrical appliances.
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Industry calls for renewal of poultry tariffs (Engineering News)
The biggest threat to South Africa’s poultry industry is “unfair trade practices from countries like Brazil, Ireland, Spain and Denmark which dump their product on South African shores”, industry organisation the South African Poultry Association broiler organisation GM Izaak Breitenbach says. While South Africa’s International Trade Administration Commission (Itac) considers the imposition for five years of anti-dumping duties against these countries, provisional anti-dumping duties were in force from December 2021 to June 14. These temporary duties have expired and have not so far been renewed, he notes.
“South Africa is currently open to predatory trade from other countries, and the progress that’s been made to achieve the objectives of the Poultry Sector Master Plan are under threat.
Harness local raw materials to make unique products for export, SMEs urged (NewZimbabwe.com)
MICRO as well as small and medium enterprises (MSMEs) have been called upon to make use of cheap locally available raw materials to manufacture unique products for export markets. Innovators must also register trademarks and patents to protect their ingenuity, as well as operate businesses legally and pay taxes. This was said by Professor Marian Tukuta, Chinhoyi University of Technology (CUT) dean of Business Sciences and Entrepreneurship during the inaugural Hurungwe Chamber of SMEs Expo, which ended at the weekend. “There are lots of raw materials at our disposal, especially for those in the arts and crafts sector who can use pods, seeds and other natural elements to make unique jewellery for export,” said Tukuta.
Zimbabwe misses out on G7 stimulus package (Bulawayo24 News)
Zimbabwe missed out on a G7-backed multi-billion-dollar stimulus package designed to help countries of the global South weather economic shocks caused by the Covid-19 pandemic. The reason for the country’s exclusion is the failure to pay arrears to international financial institutions (IFIs), Finance minister Mthuli Ncube has said. The Covid-19 pandemic has precipitated an unprecedented economic crisis worldwide, with disastrous social consequences. After 25 years of continuous growth, Africa was severely hit and suffered recession in 2020.
“Zimbabwe cannot adequately respond to the Covid-19 pandemic in a way that protects the vulnerable and addresses inequality without arrears clearance, debt relief and restructuring,” said Ncube said in the latest Arrears, Debt Relief and Restructuring Strategy availed to The NewsHawks.
Kenya slashes imports of sugar by half in June 2022 (Business Daily)
Kenya cut sugar imports by nearly half in June when compared with the previous month as sugarcane production jumped 11 per cent in the review period. Data from the Sugar Directorate indicates the imports were slashed by 49 per cent to 17,231 in the review period, down from 33,650 a month earlier. The regulator says sugarcane production jumped 11.3 per cent to 70,376 tonnes, the highest to have been recorded since January. An increase in production has seen the prices of the commodity remain low in the market with a kilogramme going for Sh128 down from Sh129 in May on average. Retailers have since April maintained the price of two kilogramme packet at an average of Sh239.
Kenya exports first miraa batch to Somalia (Capital Business)
Kenya is set to export the first batch of miraa to Somalia on Sunday, the Agriculture and Food Authority (AFA) has said. The authority said the resumption of exports followed efforts by the Ministry of Agriculture. According to the agency mandated to promote exports from Kenya, 22 of the traders that have been approved are set to receive their export licenses. The move follows reopening of the Kenya-Somalia border after talks between President Uhuru Kenyatta and his Somalian counterpart Hassan Sheikh Mohamud on July 16.
Former Somali President Mohammed Farmaajo suspended Miraa imports from Kenya two years ago citing COVID-19 restrictions but the suspension was never lifted as diplomatic issues kicked in. The ban led to a loss of more than 50 tonnes of Kenyan khat valued at more than Sh20 million a day. According to the Ministry of Finance, in 2021, the import of Miraa contributed Sh1.3 billion in tax to the country’s revenue.
Tanzania bans day-old chicks imports, again (The East African)
Tanzania has imposed a total ban on the importation of day-old chicks effective next week as it seeks to protect its local hatcheries and limit the inflow of substandard chicks. The ban, which takes effect on July 30, aims to protect the local poultry market, the Ministry of Livestock and Fisheries said in a statement on Monday. Deputy Minister for Livestock and Fisheries Abdallah Ulega said the government would no longer issue import permits on chicken from Saturday. This was after a meeting with poultry business executives in the capital Dodoma. The government, Mr Ulega said, is currently collecting poultry industry data to ascertain the demand for day-old chicks.
Kenya, Tanzania struggle to run shipping lines (The East African)
Plans to revive national shipping lines in East African ports are facing usual delays over lack of capacity to compete internationally. Kenya and Tanzania recently formed shipping lines, but are struggling to establish themselves without own vessels. Tanzania’s bid to sell its disused vessels has been a struggle, with few people coming forth to buy, and leaving it with an unwanted burden of storage.
As a result of increasing operating costs, Zanzibar Shipping Corporation, Tanzania’s shipping line is auctioning three of its vessels, leaving it with none of its own. Zanzibar Shipping Corporation, in May this year, floated a tender to dispose of three public vessels MV Maendeleo, MT Ukombozi and MV Mapinduzi 1. Those vessels are still unsold. According to documents, the assets are being disposed of through the international competitive bidding procedures specified in the public procurement and disposal of public assets.
Dar port strengthens regional market share (Dailynews)
Significant expansion and improvement of efficiency at Tanzania’s principal port of Dar es Salaam has enabled it to offer faster and cost-effective trade and transport solutions compared to other seaports in the region, a new report by GBS Africa has shown. According to the dossier by the advisory services firm, Dar es Salaam Port is becoming a regional transshipment hub for exports and imports for both Tanzania and its land-linked countries in the East African Community (EAC) and Southern African Development Community (SADC). “Land-linked countries like the Democratic Republic of Congo (DRC), Malawi, Uganda, Zambia, Rwanda, and Zimbabwe are increasingly opting for Dar es Salaam Port,” reads part of the report. The report mentioned some of the products which are transported through the harbour as metals like copper as well as agricultural produce such as tea, coffee, tobacco, oilseeds, cotton, sisal, and cashew nuts.
SON Secures FG’s Approval To Return To Ports (Leadership)
The minister of State for Industry, Trade and Investment, Ambassador. Mariam Katagum, applauded the recent approval secured by the Standards Organisation of Nigeria (SON) to return to the ports with a view to collaborating with the Nigerian Customs Service (NCS) to tackle the menace of substandard at all entry points in Nigeria. She also reaffirmed his ministry’s commitment to supporting SON in its bid to discharge its mandate. Katagum disclosed this at the 9th African Day of Standardisation 2022 organised by SON and the African Organisation for Standardisation (ARSO) themed “Promoting the African pharmaceutical and medical devices industries through Standardisation” in Lagos.
Shippers’ Council launches manual for inland dry ports in Kano (Daily Trust)
The Nigerian Shippers’ Council (NSC) has launched its operational manual for inland dry ports to promote efficient transportation, enhance efficiency at the ports and engender trade facilitation. Speaking at the official launch in Kano Friday, the executive secretary/chief executive officer of the Council, Emmanuel L. Jime, said the manual was produced to articulate the step-by-step procedures for receiving, storing, handling and delivery of cargoes, as well as highlighting the operations, responsibilities of agencies and timelines for discharging such tasks. He said the operational manual would also be launched in Port Harcourt and Lagos at later dates to bring stakeholders in other regions in the country on board the reform, adding that immediately the process is concluded, the operators and regulators would be compelled to abide by the operational processes as contained in the manual.
Vice President Bawumia Cuts Sod for First Inland Marine Port in Northern Ghana as Part of the Trans-Volta Logistics Corridor (African Business)
The Vice President, Dr Mahamudu Bawumia, has cut the sod for work to begin on the construction of the first Inland marine port in the northern parts of Ghana and an accompanying Industrial Park at Debre in the Savannah Region. The multi modal transport corridor, known as the Trans-Volta Logistics Corridor, is being undertaken by LMI Holdings and involves the development of a system to transport containers and bulk cargo from the Port of Tema to Burkina Faso and other landlocked countries via the Volta Lake
“Easing the congestion of clearing goods from Tema will be one of the main objectives for this port and industrial park. Using the Volta Lake, vessels will transport goods and containers in transit to and from the Tema Port. These containers will be moved by rail to Akwamu-Korankye (Eastern region) and then loaded onto barges to the Debre Inland Port. In Debre, operating at its fullest capacity like Tema with all the attendant facilities, containers will be offloaded and put on trucks to continue their journey further into the sub region. All services such as customs, transits clearances will be provided as pertains to any international port.
Lack of economic diversification hindering Nigeria’s progress – Don (Punch Newspaper)
The Senior Special Adviser to the President on Industrialisation, African Development Bank, Prof. Banji Oyelaran-Oyeyinka, has said Nigeria is backward because it did not achieve economic diversification. Speaking at the 8th Edition of the Nigerian Society of Engineers’ Annual Distinguished Lecture, Oyeyinka said the country required leaders who were not only committed to ensuring high-performing public sector institutions and organisations but those who seek to transform society through both vision and action. His lecture was titled, ‘Nigeria’s development reversal: Halting descent into industrial Backwardness.’ Oyeyinka explained that Nigeria was poor because the country had experienced not only weak industrial growth but also de-industrialisation.
Mpango pushes for carbon trade (Dailynews)
Vice-President Dr Philip Mpango has directed the State Ministry (Union Affairs and Environment to work on shortfalls in the policy that administers carbon trade in the country so that the nation can benefit from the business. He issued the directives on Saturday in Tanganyika District, Katavi region when handing over a dummy cheque worth 2.3bn/- that has been earned by the district council and eight villages through carbon trade. Dr Mpango also instructed the ministry to embark on public sensitisation programmes that will create awareness on opportunities that are being brightened by carbon business for individual and national development.
He moreover instructed the Ministry of Natural Resources and Tourism in collaboration with the regional authorities to take legal measures against individuals engaging in malpractices of cutting down trees and burning the forests. The ministry should properly enforce laws that protect environment to reduce effects that are brought by environmental degradation, said Dr Mpango, asking the Katavi region authorities to conduct the environmental assessment as well as provide public education to members of the community.
Kenya ranked top in manufacturing vaccine (Business Daily)
Local vaccine production can earn Kenya billions of shillings each year in additional investments, savings and revenue, the Lancet medical journal says. In a newly published study released recently, the journal has ranked Kenya a top candidate for vaccine manufacturing globally ahead of India and South Africa citing its strategic advantages in traditional research capacity as well as distribution logistics.
“New products developed and manufactured in Kenya would benefit all 21 countries in the Common Market for Eastern and Southern Africa (Comesa),” said Lancet in the study backed by American private university Duke University and the Bill & Melinda Gates Foundation. “In Kenya, each dollar invested by the government would return $2·51.”The study by the medical journal assessed the case for investing in clinical trials and manufacturing capacity for three middle-income countries including India, Kenya, and South Africa. “We show that India, Kenya, and South Africa can generate a substantial return on investment while averting millions of deaths,” says the study.
Museveni: Electric vehicles will help counter oil supply shocks (The East African)
Amidst the galloping fuel prices, Uganda President Museveni took to national TV on Wednesday to push for electric cars and railways as a long term solution to crude oil supply shocks. “This is the answer. The correct way is to start moving away from petrol to electric cars and we have already started,” President Museveni said, rejecting fuel subsidies that are suggested in some quarters to lower costs.
Earlier on the same day, Dr Joseph Muvawala, the executive director of the National Planning Authority (NPA), mooted a plan for direct importation of crude oil from the producing countries as a short term measure, a development that would eliminate Kenyan oil marketers that hold contracts to buy petroleum product for refining and supply to the wider Eastern Africa. This, he argued, would result in prices at the pump dropping by 15 to 20 percent.
However, industry players say eliminating companies that control oil imports and obtaining slots to refine crude at the Mombasa refinery is a complex process for landlocked Uganda to navigate in the short term.
Democratic Republic of the Congo’s Growth Among Highest in Region Amid Significant Challenges (IMF)
According to a recently completed annual assessment by IMF staff, growth in the Democratic Republic of the Congo (DRC) sharply rebounded from 1.7 percent in 2020 to an estimated 6.2 percent in 2021, well above the 4.5 percent rate in sub-Saharan Africa. The strong recovery was driven by the country’s mining and services sector performance.
Under a Fund-supported program, the authorities have adopted policies that have helped moderate inflation and stabilize the exchange rate, while commodity prices have supported higher exports, revenues, and international reserves. The war in Ukraine has led to an increase in inflation, raising food insecurity risks, but the outlook remains favorable with support from elevated commodity prices.
Decades of war, poor governance, and underinvestment, however, have left the country with high poverty rates, very low access to basic services and one of the largest infrastructure gaps in the world.
Nigeria, South Africa To Deepen Ties In Manufacturing, Film Industry (Leadership)
The Nigerian government and South Africa are engaging to improve their collaboration in the manufacturing sector under the platform of the African Continental Free Trade Agreement (AfCFTA) and also to enhance the film industry in both countries. The High Commissioner of South Africa to Nigeria, Thami Nseleku, made this known in an interview with reporters after a live stage play entitled ‘Philomena’ in Abuja on Sunday night, stressing that the script is dealing with very serious issues in the society.
African trade and integration
AfCFTA Secretariat via Twitter:
The AfCFTA Website, the Rules of Original Manual and the e-Tariff book have officially been launched at the 9th Meeting of the AfCFTA Council of Ministers on 26 July 2022. These tools are key for Member States to begin trading.
See the AfCFTA Operational Instruments launch video
AfCFTA Secretariat gets $11m grant to enhance effective implementation (The New Times)
The Board of Directors of the African Development Fund has approved an $11.02 million support package to the Permanent Secretariat of the African Continental Free Trade Area (AfCFTA). The AfCFTA Secretariat opened its doors in Accra, Ghana, on August 17, 2020, with initial support of $5 million to set up the Secretariat, the programs, and the tools and to raise stakeholder awareness. Prudence Sebahizi, the chief technical adviser on AfCFTA, told Doing Business that the Bank’s latest support comes along other financial supports from member states and other partners to strengthen AfCFTA implementation.
“The funding is mainly aimed at strengthening AfCFTA institutions through technical assistance and capacity building. However, more support is required to fund private sector projects and member states’ programs,” Sebahizi said. “The private sector with benefit through capacity building programs and technical assistance. In addition, studies will be conducted to identify market opportunities for businesses.”
Africa’s free trade area offers promise for cities – but only if there’s investment (The Conversation Africa)
The African Continental Free Trade Area came into operation on 1 January 2021. This is a considerable achievement. The free trade area is now the world’s single largest market for goods and services, when measured by number of countries, after the World Trade Organisation. It is also the largest in terms of geographic area and population size.
Less well understood, however, is the fact that for the agreement to fulfil its promises, the continent’s cities are key. They are hubs for production and consumption, and will become significantly more so. But their current set-up, lacking the necessary infrastructure and services, means most of Africa’s cities are not yet ready to benefit from and support the free trade area. This will require substantially greater investments in the continent’s cities. This link between urbanisation and trade is analysed in the United Nations Economic Commission for Africa’s recently launched publication, Cities: Gateways for Africa’s Regional Economic Integration.
Steps Towards Establishing an Electronic Single Window System (COMESA)
The Electronic Single Window System (eSW) is one of the key trade and transport facilitation instruments prioritized by most of the COMESA Member States to improve the ease of doing business environment and to enhance intra-regional trade in region. In 2017, the COMESA Council of Ministers decided that Member States should adopt a harmonized and standard data connectivity platform in the form of electronic single windows (eSWS) among government agencies and private stakeholders aimed at improving the intra-regional trade and investment environment at national and regional levels.
On 18 – 21 July 2022 in Addis Ababa, Ethiopia the TWG conducted its first meeting to review various reports that have been prepared towards the development of the eSW system. Among them were Situational Assessment Study Report on Implementation of the eSW, the Draft Legal Framework and the Draft Strategy for Development and Implementation of the eSW. The development of eSW system is one of the instruments under the COMESA Digital Free Trade Area Action Plan. It includes developing and implementing the system at national and regional levels. In this regard, the project activities have been incorporated as part of the Result Area 3 of the COMESA Trade Facilitation Programme funded under the 11th European Development Fund.
The meeting agreed that political will and high-level leadership direction and financial support together with cooperation of stakeholders are some of the key factors for the eSW system to succeed.
In response to a series of shocks facing countries in the Middle East and North Africa (MENA), , which ended June 30. These investments, together with strategic and reform-oriented advisory and analytical support, are helping people across the region as they mitigate the impacts of the war in Ukraine on food and energy prices, continue to respond to the impacts of the COVID-19 pandemic, and build resilience to climate and other shocks, notably in the fragile and conflict-affected countries.
“Overlapping crises, including the war in Ukraine and its impacts on food and energy prices, have further burdened the poorest and most vulnerable in the region,” said Ferid Belhaj, World Bank Vice President for the Middle East and North Africa. “Food price inflation is a major challenge. As many as 23 million people in the MENA region are at risk of falling into deeper poverty. The World Bank is committed to doing even more to help the people and the countries in MENA as they continue to strengthen food security, respond assertively and equitably to the COVID-19 pandemic, and build resilience against a range of other shocks that threaten to roll back hard-won progress.”
Improved statistics key to unlocking the development potential of migration conclude African experts (UNECA)
The urgency of improving data and statistics to capture the benefits of migration for Africa’s prosperity and resilience was underscored at an Expert Group Meeting on migration statistics, convened by the United Nations Economic Commission for Africa (ECA).
The meeting was informed by a background paper by ECA, entitled ‘towards a coordinated mechanism for collecting and utilisation of accurate and disaggregated migration data for evidence-based policies in Africa’. The paper unpacks migration patterns, progress and practices and pathways in Africa for the Global Compact for Safe, orderly and Regular Migration’s implementation, involving all stakeholders.
Global economy
A world in crisis needs both trade and aid (UNCTAD)
We are in the toughest period the world economy has faced since the creation of the multilateral system more than three-quarters of a century ago. A quadruple shock of COVID, climate change, conflict and cost-of-living has undone years of hard-fought development gains. As financial conditions tighten, even countries that had seemed on track to prosperity and stability now stare into the abyss of debt distress, fragility and uncertainty about the future. Coordinated, multilateral action is necessary to tackle the crises we face. Both aid and trade have key roles to play in reversing the impacts of this quadruple shock and putting the world back on track to achieve the Sustainable Development Goals.
Black Sea grain exports deal ‘a beacon of hope’ amid Ukraine war – Guterres (UNCTAD)
An “unprecedented agreement” on the resumption of Ukrainian grain exports via the Black Sea amid the ongoing war is “a beacon of hope” in a world that desperately needs it, UN Secretary-General António Guterres said at the signing ceremony in Istanbul, Türkiye, on 22 July. The UN plan, which also paves the way for Russian grain and fertilizer to reach global markets, will help to stabilize spiralling food prices worldwide and stave off famine, affecting millions. Russian and Ukrainian Ministers signed the Black Sea Grain Initiative, facing each other at opposite ends of the table, while the Secretary-General and Turkish President Recep Tayyip Erdogan sat in the centre.
Oxfam reaction to Ukraine and Russia’s historic grain deal | Oxfam International
Russian foreign minister says there is ‘no obstacle’ to grain deal (Anadolu Agency)
Russian Foreign Minister Sergey Lavrov said Monday there is “no obstacle” to the implementation of a UN-Türkiye brokered grain export deal between Russia and Ukraine. His remarks came after Russian missiles struck Ukraine’s key Black Sea port of Odessa on Saturday in an attack that UN Secretary-General Antonio Guterres “unequivocally” condemned.EU foreign policy chief Josep Borrell said striking a target crucial for grain exports a day after the deal was signed in Istanbul was particularly reprehensible and demonstrated Russia’s total disregard for international law and commitments. But speaking at a press conference in the Republic of Congo after a meeting with President Denis Sassou N’Guesso, Lavrov said the strikes at Odesa “should not affect” grain exports as they targeted “depots of arms and ammunition supplied to Kyiv by the West.”
Europe’s dash for gas means blackouts for the Global South (EURACTIV)
Europe’s increased demand for fossil gas has caused a hike in fossil fuel prices and energy shortages in the Global South. EU leaders must avoid long-term gas deals and invest in renewables to secure a fair and lasting transition away from fossil fuels, writes Khondaker Golam Moazzem.
The pressure on European leaders to curb their demand for Russian gas has reached a fever pitch. This week’s temporary shutdown of the Nord Stream pipeline has forced Europe to consider the ‘nightmare scenario’ of a complete halt to the flow of Russian gas. Europe has side-stepped calls for the mass implementation of energy efficiency measures ahead of winter in the EU and instead embarked on a dash for new gas supplies from the rest of the world. Its imports of liquefied natural gas (LNG) – natural gas cooled for transport – have skyrocketed by 50% compared to a year ago. That upswing in demand made an already-competitive global gas market even tighter, sending energy prices and the cost of living soaring. Due to their complementary nature, the price of other fossil fuels such as petroleum and coal also shot up.
DG Okonjo-Iweala urges members to build on MC12 success to revitalize WTO core functions (WTO)
“Delivering results last month has generated expectations for more in the future,” said the DG, highlighting the many expressions of support she has received in recent weeks in her meetings with leaders from around the world for the unprecedented package of outcomes reached at MC12. “We need to use this support and momentum by continuing our efforts to revitalize or reinvigorate all of the WTO core functions so that we can remain fit-for-purpose in a changing global economy and continue to deliver more for people around the world,” she added.
DG stresses at Chairs Programme Annual Conference importance of implementing MC12 outcomes (WTO)
DG Okonjo-Iweala thanked Chairs for their active participation in the WCP through evidence-based research and tailored advice to governments and other stakeholders. This is key to supporting national and regional trade policy formulation and central to the capacity building objectives of the Programme, she emphasized. The DG said the programme has generated excellent results and the WTO Secretariat will continue to provide all the resources needed to support the Chairs network so the Programme can continue to “deliver results that truly make an impact on those on the ground”.
Members urged to find new ways to rejuvenate agriculture negotiations (WTO)
Delegates took the floor to pay tribute to Ambassador Abraham Peralta for her leadership, dedication and hard work over the last two years. They also praised her contributions to the important milestones achieved at MC12 — the adoption of the declaration on the emergency response to food insecurity and the decision on the exemption of UN’s World Food Programme (WFP) food purchases from export prohibitions or restrictions.
UN Synergies Conference presses for integrated solutions to scale up action on climate crisis and sustainable development setbacks (United Nations)
More than 2,000 participants at the UN Climate and SDG Synergies Conference, held in Tokyo and virtually on 20-21 July, generated an impressive range of potential solutions and proposals for how to better integrate efforts to tackle these interlinked global crises and accelerate action to address the climate emergency and recent reversals in achieving the Sustainable Development Goals.
Creating fiscal space for development finance and stepping up regional infrastructure projects will be vital to Africa’s road to achieving net zero, African Development Bank Director General for Southern Africa Leila Mokaddem told participants at the OPEC Fund’s inaugural Development Forum. “We need to rethink the way we finance development. We need to put more resources into institutions like the African Development Bank,” Mokaddem said. Mokaddem spoke during a session entitled Turning Public Ambition into Effective Action, during which panelists discussed actions and examples of how to move commitments made by development institutions, governments and other stakeholders, “from lofty declarations to real-world change.”
The African Development Bank is making a strong case for an allocation of some of the International Monetary Fund’s Special Drawing Rights so that they can be leveraged to meet the $218 billion a year needed for Africa’s infrastructure needs such as roads and ports, participants heard.
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Arab-Spring Warning Spurs Ramaphosa to Tout Growth-Plan Progress (Bloomberg)
South African President Cyril Ramaphosa said the government is making progress on a plan to boost economic growth, after he was criticized by one of the nation’s former leaders for failing to deliver the plan.
Ramaphosa on Feb. 10 pledged to provide a comprehensive social compact -- in cooperation with business, labor unions and civil society -- within 100 days. Former President Thabo Mbeki last week slammed Ramaphosa for not fulfilling that promise, and warned that growing poverty and lawlessness in the country risks triggering protests that engulfed the Arab world a decade ago.
While the government has held talks with its social partners since February about agreeing to a compact, the process has been “slow and at times it has been quite difficult,” Ramaphosa said in an address to members of the governing African National Congress in KwaZulu-Natal province on Sunday. The party earlier elected new leaders in the province who are considered sympathetic to former President Jacob Zuma, whose followers oppose Ramaphosa’s economic reforms.
Russia-Ukraine war: Nigerian economy bleeds over logistics, forex, inflation crises (Daily Trust)
Nigeria, being an import-dependent country, is heavily reliant on the import of commodities priced in dollars. As the value of the dollar rises and these dollar-priced commodities become more expensive for holders of other currencies, such as the naira, high incidents of imported inflation will arise and weigh on the spending power of domestic consumers.
With the Russia-Ukraine war in its fifth month, Nigerians are feeling a harder pinch with the scarcity of energy sources, wheat and fertiliser, over what importers attribute to logistics issues, as well as a worsening foreign exchange (forex) scarcity.
The inflation rate is also rising, as well as a stretch in the over N41.6trillion debt servicing, which has exceeded revenue generation.
South Africa: Government affirms legitimacy of Taxi Relief Fund (SAnews)
The Department of Transport has dismissed claims that the Taxi Relief Fund (TRF) is a scam and has called on those making these assertions to desist from doing so.
The fund was established to assist minibus taxi drivers, cab drivers and e-hailing drivers, who were hard hit during the COVID-19 hard lockdowns.
“Taxi operators have until 31 March 2023 to apply for the relief fund, however, the department encourages operators to apply now and not wait for the last minute,” the Department said.
Tanzania launches cultivation of over 11,000 hectares of block farms for youth (CGTN Africa)
Tanzanian authorities on Sunday launched the cultivation of 11,453 hectares of block farms for the youth in the country’s central region of Dodoma. Hussein Bashe, the Minister for Agriculture, the launch of the cultivation of 11,453 hectares of block farms is part of the implementation of a national agricultural program for the youth.
AfDB Funding Boosts Electrification in Rural Guinea-Bissau (Energy Capital & Power)
The African Development Bank (AfDB) has greenlit a $66.4 million support package in aid of accelerated rural electrification programs in the West African nation of Guinea-Bissau.
The funding package consists of a $24.13 million grant and $27.72 million loan from the Transition Support Facility along with a $4.17 million grant and $9.37 million loan from the African Development Fund, USAID, the Sustainable Energy Fund for Africa and the Islamic Development Bank.
Work to develop social compact framework underway (SAnews)
To reduce the impact of the triple challenges of unemployment, poverty and inequality, President Cyril Ramaphosa says the country needs a number of impactful interventions, including attracting more investment and enhancing the capability of the state. “Our economy has not been growing at the pace that could enable us to make a meaningful dent in unemployment, poverty and inequality. “To turn our economy around and create the millions of jobs needed is something that cannot be achieved by government alone. A comprehensive programme will require the mobilisation of all social actors,” the President said.
Suspensions in Numsa reversed (The Citizen)
With the overturning of the suspensions of National Union of Metalworkers of South Africa (Numsa) second deputy president Ruth Ntlokose and several other union members overturned by the weekend Johannesburg Labour Court judgement, the union’s central committee was late on Sunday locked in a meeting on how to respond to the damning order handed down by Judge Graham Moshoana.
The all-important Numsa national elective congress planned for Monday at the Cape Town International Convention Centre, has been interdicted from going ahead by the court – in what has been seen as a scathing judgement by Moshoana.
Labour analysts have expressed concern that the unconstitutional suspension of Ntlokose, elected leaders and shopstewards, has heightened concerns about a possible split in the country’s biggest trade union.
Nigeria: FG's $150bn Target Receives Boost As NEPC Certifies 101 SMEs To Export Non-Oil Products (The Whistler Nigeria)
The federal government’s target to generate about $150bn in the next ten years through its Zero Oil Plan has been boosted with the certification of 101 Small and Medium Enterprises to export non-oil products.
This is just as the Minister of Industry, Trade and Investment, Otunba Richard Adeniyi Adebayo, said the federal government is leveraging on the opportunities presented by the African Continental Free Trade Area Agreement to deepen its international trading through non-oil exports.
The Minister also described NEPC’s initiative in promoting non-oil exports and increasing the market share as pro-active and urged other agencies under the ministry to emulate the action.
African Development Bank arm releases $5.4mln for Somalia food security (ZAWYA)
The African Development Fund, a subsidiary of the African Development Bank (AfDB), has approved a $5.4 million grant to support food security programmes in Somalia.
AfDB’s East Africa Regional Director General Ms Nnenna Nwabufo said the money would help address the impact of the prolonged drought and the added impact of the Russia-Ukraine conflict have deepened food insecurity in the Horn of Africa country.
Concerns raised as South Sudan delays creation of peace court (Monitor)
South Sudan’s peace monitoring body has expressed concerns over delays in creating a hybrid court, slowing the country’s bid to look into past atrocities. The Court is part of institutions which were to be set up under Chapter 5 of the Revitalised Agreement on the Cessation of Conflict in South Sudan (R-JMEC), the 2018 peace deal that halted war.
On Friday, the Revitalised Joint Monitoring and Evaluation Commission (RJMEC) says that Court, to be composed of local and foreign judges, is key in checking past accountability.
African trade and integration
The Board of Directors of the African Development Bank Group has approved a Risk Participation Agreement of $50 million with Crédit Agricole Corporate and Investment Bank.
The deal will enable African banks and their small and medium-sized enterprise (SME) clients to participate more in regional and international trade. It aims to support a cumulative trade transaction volume of $450 million over the next three years.
“This agreement strengthens confidence among various African actors to encourage a new trade dynamic on the continent,” said Mohamed El Azizi, the African Development Bank’s Director General for North Africa. “And this is crucial for the realization of the African Continental Free Trade Area, which will help to build resilience, generate growth and promote a recovery that creates opportunities and jobs.”
Steps Towards Establishing an Electronic Single Window System (COMESA)
The Electronic Single Window System (eSW) is one of the key trade and transport facilitation instruments prioritized by most of the COMESA Member States to improve the ease of doing business environment and to enhance intra-regional trade in region.
On 18 – 21 July 2022 in Addis Ababa, Ethiopia the Technical Working Group of Customs (TWG) conducted its first meeting to review various reports that have been prepared towards the development of the eSW system. Among them were Situational Assessment Study Report on Implementation of the eSW, the Draft Legal Framework and the Draft Strategy for Development and Implementation of the eSW.
Customs and Single window experts from Burundi, Djibouti, DR Congo, Eswatini, Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Somalia, Sudan, Uganda, Rwanda, Tunisia and Zambia attended the meeting.
The 41st Ordinary Session of the Executive Council adopted the African Common Position on Energy Access and Just Transition, on the 15th of July 2022, a comprehensive approach that charts Africa’s short, medium, and long-term energy development pathways to accelerate universal energy access and transition without compromising its development imperatives.
Led by the African Union Commission (AUC) in collaboration with other pan-African institutions, the Common Position stipulates that Africa will continue to deploy all forms of its abundant energy resources including renewable and non-renewable energy to address energy demand. Natural gas, green and low carbon hydrogen and nuclear energy will therefore be expected to play a crucial role in expanding modern energy access in the short to medium term while enhancing the uptake of renewables in the long term for low carbon and climate-resilient trajectory.
Access to energy currently stands low in Africa compared to other regions, with more than 600 million Africans living without electricity services while 900 million lack access to clean cooking facilities. The African Common Position encourages striking a balance between ensuring access to electricity to catalysing the much-needed socio-economic growth in Africa and smoothly transitioning towards an energy system based on renewable and clean energy sources matching the ambitions of Agenda 2063.
SADC convenes workshop to raise awareness of Member States on the Women, Peace and Security Agenda (SADC)
The Southern African Development Community (SADC), in partnership with the United Nations Development Programme (UNDP) Regional Service Centre for Africa and UN Women, will from 25th to 28th July 2022 hold a regional consultative workshop to educate key stakeholders in Member States about the Women, Peace, and Security Agenda (WPS). The consultative workshop in Johannesburg, South Africa, to be held with the support of the Government of Canada, the European Union and other partners, seeks to promote an in-depth understanding of the WPS agenda within the SADC Region.
The workshop's objectives are to provide SADC Member States with an opportunity to review and validate the SADC WPS Assessment Report, to present the findings of the Assessment on the Progress and Challenges in Implementing the Women, Peace and Security Agenda at Regional and National Levels, to foster understanding of the global, continental, and regional normative instruments on the WPS Agenda, and to emphasise the significance of implementing these normative instruments.
In addition to providing recommendations for the operationalisation of the SADC Network of Women Mediators, the workshop aims to educate SADC Member States on the justification for creating National Action Plans (NAPs), stimulate implementation, and promote reporting on progress. It is anticipated that this will increase the ability of SADC Member States to domesticate UN Security Council Resolution 1325 and implement the WPS Agenda domestically, as well as increase their commitment to advancing and accelerating the WPS agenda's implementation in the Region.
Improved statistics key to unlocking the development potential of migration conclude African experts (UNECA)
The urgency of improving data and statistics to capture the benefits of migration for Africa’s prosperity and resilience was underscored at an Expert Group Meeting on migration statistics, convened by the United Nations Economic Commission for Africa (ECA).
Held in Kampala from 21 to 22 July 2022, the meeting brought together government officials from more than 18 African countries, cross-sector representatives from Djibouti, Ethiopia, Kenya, South Africa, South Sudan, Uganda and Zimbabwe, as well as delegates from the Inter-Governmental Authority on Development (IGAD), the African Union Commission (AUC) and the International Organization for Migration (IOM).
The meeting was informed by a background paper by ECA, entitled ‘towards a coordinated mechanism for collecting and utilisation of accurate and disaggregated migration data for evidence-based policies in Africa’. The paper unpacks migration patterns, progress and practices and pathways in Africa for the Global Compact for Safe, orderly and Regular Migration’s implementation, involving all stakeholders.
African Union Commission Chairperson Calls Libyan Warring Parties to Silence Their Guns for the Sake of Peace (African Business)
The Chairperson of the African Union Commission, HE. Moussa Faki Mahamat, is following with deep concern, the recent developments of insecurity in Tripoli, and calls on warring parties to silence their guns by refraining from all forms of violence in deference to the yearnings of the Libyan People for peace.
The Chairperson deplores the loss of life resulting from yesterday’s clashes between rival armed groups and emphasizes that the security of civilians is an obligation under International Humanitarian Law.
The Chairperson reiterates the continued commitment of the African Union to support the peace process in Libya through its roadmap for reconciliation, spearheaded by the AU Ad Hoc High-Level Committee on Libya, chaired by H.E. Sassou Nguesso, President of the Republic of Congo.
EABC wants logistics charter to boost region's competitiveness (The Africa Logistics)
Transport and logistics costs in East Africa compose of 35%-42% of production, too high compared to 8% in Asian countries, Dr. Merian Sebunya, Chairperson, National Logistics Platform, Uganda has said. This, she says has negatively impacted the competitiveness of the EAC bloc and trade balance. EAC transport costs are high estimated at 1.8USD per km per container against international best practices of 1 USD per km per container. Speaking at the EABC-TradeMark East Africa (TMEA) Webinar on Corridor Performance & Impact on EAC Business Competitiveness, Dr. Merian Sebunya appealed to Governments of the EAC Partner States to take deliberate actions to bring down the cost of transport & logistics in the EAC region to ensure EAC exports can compete at AfCFTA and international level.
African leaders call for urgent financing to protect world's biodiversity (Guardian Nigeria)
Ministers and experts from across Africa have called for an urgent increase in financing to protect the world’s biodiversity. They also urged all nations to commit one per cent of Gross Domestic Product (GDP) and protect 30 per cent of the planet by 2030.
They made the plea at the Africa Nature Finance Forum, held last week on the sidelines of the inaugural African Protected Areas Congress (APAC) 2022.
To address this crisis, governments, Indigenous Peoples and local communities (IPLCs), environmental organisations and businesses are working to develop a new framework to guide biodiversity conservation for the next decade, known as the post-2020 Global Biodiversity Framework (GBF).
Kenyan firms troop to DRC in hunt for bigger markets (Business Daily)
Audit and advisory firm BDO East Africa is set to start operations in the Democratic Republic of Congo (DRC) in October, joining a growing number of Kenyan firms that are setting up shop in the East Africa Community’s newest member state.
The largely untapped DRC market has recently attracted more than 20 Kenyan firms which have either set up shop or offered a commitment to make trade investments.
The entry of BDO now signals that firms offering professional business support services are beginning to follow their trading and manufacturing peers to the DRC, expecting to help them navigate the legal, tax, and regulatory environment in the country.
Zimbabwean exporters to strengthen footprint in Zambia (The Herald)
At least 30 companies will showcase their products and services in Lusaka, Zambia, from 27 July-1 August as Zimbabwe seeks to increase the visibility of its products in regional markets.
Participation of local companies at the Zambia Agricultural and Commercial Show (ZACS), which is facilitated by national trade development and promotion organisation, ZimTrade, will improve linkages with leading buyers in the market.
Sadc Ministers responsible for Disaster Risk Management call for acceleration of disaster risk ... (Chronicle)
The Ministers Responsible for Disaster Risk Management from the Southern African Development Community (Sadc) have expressed concern at the high prevalence of disasters in the Region, which has necessitated a shift in the regional approach on disaster risk reduction and allocation of significant resources to disaster response and recovery in recent years.
The Ministers also expressed concerns at the recurrence of disasters in the Region at accelerated frequency and severity and stressed the need for heightened vigilance, and proactiveness when dealing with natural disasters, instead of only reacting when disasters occurred.
Amid detente, Somalia, Kenya restart lucrative khat trade after 2-year break (Anadolu Agency)
The multimillion-dollar khat trade between Somalia and Kenya resumed on Sunday after a break of over two years, a sign of thawing tensions between the East African neighbors.
The khat trade, which generates millions of dollars every month, was one of the victims of a growing tiff between Somalia and Kenya.
Africa need $170 billion to finance infrastructure (The Citizen)
Africa needs a whopping $170 billion to finance the infrastructure projects.The money will enable the continent to close the huge infrastructure gap between it and other continents. Currently, the continent’s public expenditure on infrastructure development is estimated at 3.5 percent of the Gross Domestic Product (GDP). That is in contrast with the developed countries which spend between 4.7 and 6.5 percent of their GDPs for the same.
UBA: Bridging Africa's Global Financial Needs (Leadership News)
United Bank for Africa recently broke record as the first Pan African Bank to directly open a branch from Nigeria at the Dubai International Financial Center (DIFC) in the United Arab Emirates (UAE).
The newly minted branch is expected to drive the UBA Group’s goal of harnessing opportunities in the Middle East, Africa and South Asia (MEASA), which comprise of 72 countries with an approximate population of three billion and a nominal GDP of $7.7 trillion.
This is expected to reinforce it strong franchise as Africa’s Global Bank, facilitating trade and capital flows between Africa and the rest of the world, as the DIFC branch will service corporate & financial Institutions and customers across the Middle East with a core focus on correspondent banking, relationship management and advisory services.
AfCFTA programme to be added to tertiary education curriculum (Myjoyonline)
The AfCFTA Policy Network (APN) is developing a programme to be included in the curriculum of tertiary schools starting from the University of Ghana (UG).
The APN hopes to develop and inculcate a programme based on free trade practice of the AfCFTA into the curriculum of tertiary education to provide the youth an opportunity to own the Agreement in positivity; hence, its partnership with the University of Ghana Business School (UGBS).
Special Envoy for the Horn of Africa Mike Hammer's Travel to Egypt, the UAE, and Ethiopia (U.S. Embassy in Egypt)
Special Envoy for the Horn of Africa (SEHOA) Mike Hammer will travel to Egypt, the United Arab Emirates, and Ethiopia July 24-August 1. He will provide U.S. support toward forging a diplomatic resolution to issues related to the Grand Ethiopian Renaissance Dam (GERD) that would achieve the interests of all parties and contribute to a more peaceful and prosperous region. In Addis Ababa, Ambassador Hammer will also consult with the African Union, under whose auspices GERD talks occur.
EAC leaders call for fast tracking admission of Somalia into bloc (Garowe Online)
Leaders of the East African Community (EAC) have directed the EAC Council of Ministers to fast-track verification for admission of the Federal Republic of Somalia into the regional bloc. A communique issued late Friday at the end of the 22nd Ordinary Summit of the EAC heads of state in Tanzania's northern city of Arusha said the leaders noted that the verification for admission of Somalia had not been undertaken. The EAC leaders directed the EAC Council of Ministers to expeditiously fast-track the verification in accordance with the EAC procedure for admission of new members into the EAC and report to the 23rd meeting of the summit, said the communique.
Echoes of collaboration to fast-track Africa's food system transformation keep pulsating (Guardian Nigeria)
The former Ethiopia Prime Minister, and Board Chair of AGRA, Hailemariam Dessalegn has urged Africa’s leaders to collaborate in addressing the triple-threat problem – climate change, COVID-19, and the Russia Ukraine Conflict – that has recently worsened the continent’s food security situation.
Dessalegn who gave the advice during the fourth Mid-Year Coordination Meeting of the African Union, Regional Economic Communities and Regional Mechanisms, in Lusaka, Zambia, cited the latest Food and Agriculture Organisation (FAO) report, which showed that 60 per cent of the world poor now live in Africa, highlighted the need for quick action.
Global economy news
Monkeypox declared a global health emergency by the World Health Organization (UN News)
Monkeypox is an outbreak that has spread around the world rapidly, through new modes of transmission about which we understand ‘too little’, and which meets the criteria of an emergency under International Health Regulations.
“For all of these reasons, I have decided that the global monkeypox outbreak represents a public health emergency of international concern”, the World Health Organization’s Director, Tedros Adhanom Gebreyesus, announced on Saturday during a press conference.
Tedros indicated that the current risk of Monkeypox is moderate globally and in all regions, except in the European region where the risk is high.
“There is also a clear risk of further international spread, although the risk of interference with international traffic remains low for the moment”, he added.
Members urged to find new ways to rejuvenate agriculture negotiations (WTO)
At a committee meeting on 21 July, WTO farm negotiators reflected on the outcomes on food and agriculture achieved at the 12th Ministerial Conference (MC12) and discussed how to build on the momentum to revitalise the agriculture negotiations. The outgoing chair of the negotiations, Gloria Abraham Peralta (Costa Rica), stressed the importance of capitalizing on the work done and called on members to explore new approaches that could reset the negotiations in the coming months.
Many members welcomed the two MC12 outcomes on food security, which they said sent a positive signal about the WTO’s ability to provide a timely response to crises. Singapore shared a message from the WFP’s Executive Director, David Beasley, who said the decision on the agency’s food purchases “will ensure that critical relief reaches the most vulnerable populations when and where needed”.
Some also called for action to be taken to give effect to the declaration on the emergency response to food insecurity, urging others to keep trade open and refrain from applying export restrictions not in compliance with WTO rules.
Coming Soon: World Economic Outlook Update, July 2022 (IMF)
WHEN: JULY 26, 9:00 AM ET
Press Conference with:
- Pierre-Olivier Gourinchas, Chief Economist and Director of the Research Department
- Petya Koeva Brooks, Deputy Director in the Research Department
- Daniel Leigh, Division Chief in the Research Department
Russia-Ukraine updates: US says strike on Odesa 'casts serious doubt' on Moscow's credibility (DW)
Russian missiles hit infrastructure in the port city of Odesa on Saturday, the Ukrainian military said, dealing a blow to a deal signed on Friday to unblock grain exports.
Just hours before the strikes, Moscow and Kyiv signed a landmark United Nations-brokered deal seen as crucial to reining in global food prices that would allow certain exports to be shipped from Black Sea ports, including the hub of Odesa.
EU foreign policy chief Josep Borrell labeled the attacks as "reprehensible" adding they again demonstrate "Russia's total disregard for international law and commitments."
EU Seeks Nigerian Gas As Alternative To Russia (Leadership News)
The European Union (EU) delegation to Nigeria and ECOWAS has moved to replace gas from Russia with Nigerian gas following the invasion of UKraine by Russia and the global energy crisis triggered by the raging war as well as the consequences on European countries.
The deputy director-general, department for (Energy), European Commission in Brussels, Mr Matthew Baldwin, made this known at a news conference on Friday, stressing that the EU would meet with Nigerian top government officials and private sector players, including key stakeholders in the country’s energy sector to work out the modalities.
Head of the EU Delegation to Nigeria and ECOWAS, Ms Samuela Isopi, in her remarks, said that the bloc was doing its part in contributing to the energy sector through different collaborations with Nigerian Government.
Africa: U.S.-Africa Business Summit 2022 - a Successful Event (Ministry) (Top Africa News)
The 14th US-Africa Business Summit 2022, which took place from July 19 to 22 in Marrakech, was a success, according to the Ministry of Industry and Trade.
Participants in this summit, organized under the High Patronage of HM King Mohammed VI, were able to exchange during 3 days around the opportunities to strengthen industrial links, investment and trade between our continent and the United States, said the ministry in a statement.
This summit was an opportunity for Morocco to consolidate its role as a bridge between Africa and the United States and to encourage the construction of a forward-looking African economy, drawing strength from its integration into the global system and international value chains.
Global inflation, trade bans send food ever higher (Arkansas Online)
As inflation surges around the world, politicians are scrambling for ways to keep food affordable as people increasingly protest the soaring cost of living.
One knee-jerk response has been food export bans aimed at protecting domestic prices and supplies as a growing number of governments in developing nations try to show a nervous public that their needs will be met.
For business owners, the rising cost of cooking ingredients -- from oil to chicken -- has prompted them to raise prices. For consumers, it has meant paying more for the same or lesser-quality food or curbing certain habits altogether.
Food prices had been steadily climbing worldwide because of drought, supply chain issues, and high energy and fertilizer costs. The U.N. Food and Agriculture Organization says food commodity prices were up 23% last year.
Serbia’s push into Africa revives old Cold War ties (IntelliNews)
Belgrade is reviving ties forged during Yugoslavia’s leading position in the Cold War era non-aligned movement to expand its influence and trading relations in Africa.
African countries and other emerging markets are growing in geopolitical importance as a new Cold War looms. While Russia abruptly pivots towards the East and South in response to Western sanctions, Belgrade has been quietly building up its relationship with a number of African countries for several years.
Serbia lacks China’s economic clout or the long-standing, albeit troubled, relationships between former colonial powers and their former colonies. However, it still benefits from the former Yugoslavia’s role in founding the non-aligned movement alongside some of the major emerging economies.
UAE emerges as bedrock for new developments and breakthroughs (Gulf Today)
For a country known for its high technology absorption, the UAE’s sizable per capita market share in blockchain and associated applications is not surprising. Be it cryptocurrencies, the metaverse, or NFTs, the UAE has emerged as the bedrock for new developments and breakthroughs. However, its eminence found a true meaning recently after Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council, announced the Dubai Metaverse Strategy. A first-of-its-kind initiative in the world to be undertaken at the government level, the Dubai Metaverse Strategy has many implications for the nation’s, and the region’s, digital economy.
The Metaverse strategy is aimed at increasing the number of companies and innovations related to blockchain and metaverse by five times. In doing so, the government intends to support the creation of over 40,000 virtual jobs — all cumulatively expected to contribute Dhs 4 billion to the national economy over the next five years. The feasibility of these ambitious targets stems from the fact that the UAE already boasts a sizable blockchain-NFT-metaverse sector, with around 1,000 companies contributing about $500 million to the national economy.
Macron embarks on African visit to 'renew relationship' with continent (FRANCE 24)
President Emmanuel Macron on Monday begins a three-nation tour of western African states in the first trip to Africa of his new term as he seeks to reboot France's post-colonial relationship with the continent.
Macron will begin his July 25-28 tour, also the first venture outside Europe of his new mandate, with a visit to Cameroon, before moving on to Benin and then finishing the trip in Guinea-Bissau.
Top of the agenda in the talks will be food supply issues, with African nations fearing shortages especially of grain due to Russia's invasion of Ukraine.
Europe's new trade flows for coal shaping up as import ban on Russia looms (S&P Global)
With the flow of Russian coal to Europe coming to a final end, buyers jostling for alternatives are increasingly in favor of tapping non-traditional markets, a development many believe, for better, will likely lead to the creation of new trade flows for the fuel.
While obvious substitutes like South Africa, Australia and Indonesia are a fallback plan for many European coal buyers, new origins like Tanzania, Kazakhstan and Nigeria are being positively considered as a further backup measure, sources told S&P Global Commodity Insights.
Even though coals from some of these origins have been around for some time, the fine prints of these probable new origins like coal reserves and production capacity are yet to be explicitly determined. But buyers have started exploring them as a full fledged plan of action due to competitive prices and quality in line with the requirement, market sources said.
EU asked to view Africa as a trade partner not a beneficiary of aid (The Star Kenya)
The European Union (EU) has been challenged to shift its perception of the African market amid its scramble with China for trading and investing grounds.
In a survey dubbed 'Clash of Systems' conducted by Inter Region Economic Network (IREN), China is edging out Europe as a major trading partner and investor mainly in areas of large infrastructure projects and exploitation of raw materials.
Speaking during the launch of the report, Friedrich Naumann director Stefan Schott said that Europe’s romantic view of Africa and its superiority belief in values contrasts the practical view of the continent on performance.
How and Why China Is Centralizing Its Billion-Ton Iron Ore Trade (Bloomberg)
China has embarked on one of the biggest shake-ups of the global iron-ore market in more than a decade. A newly minted state-owned group will be a hub for everything from huge mine investments in West Africa to buying the steelmaking material from international suppliers. It comes amid pandemic-related disruptions and rising geopolitical tensions that have highlighted threats to supply chains and made resource security a major focus for President Xi Jinping. Mining giants Rio Tinto Group, BHP Billiton and Vale SA will be looking to understand exactly what China is now planning for them.
What Does the Black Sea Grain Agreement Mean for Africa? (The Maritime Executive)
If Russia keeps to the deal it has signed with Ukraine allowing for the resumption of grain exports, much needed relief will be provided to importing countries, including many in Africa.
Ukraine is a notable player in global grain and oilseeds export market. And thus, the blockage of exports has contributed to the notable increase in agricultural commodity prices observed since the war started.
From an African perspective, the continent imports about $80 billion worth of agricultural products a year, mainly wheat, palm oil and sunflower seed. The annual food import bill from the sub-Saharan Africa region is roughly $40 billion per year. Therefore, however marginal, a potential decline in the prices of these commodities would be positive for importing countries – and ultimately consumers.
Retail Logistics Market Size to Garner USD 622 Billion Revenue by 2030 Fueled By Increased Worldwide Trade Activity (GlobeNewswire)
The Global Retail Logistics Market size accounted for USD 231 Billion in 2021 and is estimated to reach USD 622 Billion by 2030.
According to our global retail logistics market forecast, the rapid surge in e-commerce sales is propelling the industry's growth. Rising digital literacy among customers and the advent of e-commerce have revolutionized the face of retail logistics. Such factors coupled with constant urbanization and dual-income family units are impacting consumer preferences and perspectives across developed and emerging economies. One of the important retail logistics market trends includes advancements in the retailing sector. Furthermore, the growing penetration of smartphones and increasing internet users are supporting the retail logistics market revenue to expand rapidly.
India & Ghana hold 3rd round of Foreign Office Consultations to review bilateral ties (Republic World)
The third round of Foreign Office Consultations (FOC) between India and Ghana took place on Friday, July 22 to address and discuss approaches to further bolster bilateral relations. The nations talked about “political, economic, defence, cultural and capacity-building matters.” According to a press release from the Ministry of External Affairs (MEA), the two sides decided to strengthen their collaboration in the multilateral fora after exchanging opinions on a number of important regional and global challenges.
It is to mention that Indian investment in Ghana and bilateral trade have both been expanding steadily. In 2021–2022, India had $2.60 billion in bilateral trade. As per the release, Indian firms have made more than US$1.7 billion in investments in Ghana via 730 projects in a variety of industries, including construction, manufacturing, commerce, pharmaceuticals, agro-processing, services, tourism, etc. India is one of the biggest investors in Ghana.
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Local news
With half of SA’s exports at carbon-tariff risk, new report calls for 190 GW renewables push (Engineering News)
With almost half of South Africa’s exports at risk as the country’s key trade partners prioritise imports from low-carbon economies, a new report urges South Africa to roll-out at least 190 GW of renewables by 2050 to sustain its economic competitiveness and lay the basis for employment creation. Titled ‘It all hinges on Renewables’, the report has been published jointly by the National Business Initiative, Business Unity South Africa and the Boston Consulting Group. South Africa, the report states, is the second most carbon-intensive economy globally when compared with other economies with a gross domestic product (GDP) of more than $500-billion. It is also more than twice as carbon-intensive as the G20 average. “This puts almost 50% of exports at risk as key trade partners prioritise imports from low-carbon economies via carbon border tax adjustments and other mechanisms. “Amid stalled GDP growth, unemployment at about 35% and rising inequality, ‘more of the same’ will not be enough.”
SA, Côte d’Ivoire strengthen trade relations (SAnews)
South Africa is open for business and ready to forge beneficial bilateral relations with its partners in Côte d’Ivoire. These sentiments were shared by delegates at the South Africa-Côte d’Ivoire Trade and Investment Business Forum hosted by the Department of Trade, Industry and Competition (the DTIC) on Friday.
Addressing the delegates, Industrial Development Corporation (IDC) Head of Continental Coverage, Phiwe Marumo, said South Africa and Côte d’Ivoire have historically enjoyed strong relations, both economically and politically. “But we also acknowledge there is a lot more that needs to be done to improve and enhance a mutually beneficial commercial relationship that can be leveraged between the two countries.” Marumo said the bilateral trade has been consistent at more than R2 billion between 2017 and 2021, except in 2019 when bilateral trade fell under a billion.
U.S., Kenya launch non-tariff trade and investment partnership talks (ZAWYA)
The United States and Kenya on Thursday launched a strategic trade and investment partnership to pursue commitments to boost economic growth, support African regional economic integration and deepen trade cooperation. The U.S. and Kenyan governments will start work within three months to develop a road map for engagement in areas including agriculture safety and digital trade standards, climate change, regulatory practices, and customs procedures the U.S. Trade Representative’s office said in a statement. Kenya has long sought a full free trade agreement with the United States, and negotiations for such a deal to lower bilateral tariffs were launched by the Trump administration with the east African country in 2020. But the Biden administration, which has shunned traditional trade deals, did not resume those talks. Kenya enjoys substantial duty-free access to the U.S. market through the Africa Growth and Opportunity Act (AGOA), a trade preference program for sub-Saharan African countries, but it expires in September 2025.
Adopt home grown policies to help farmers - CSO urges government (BusinessGhana)
The Ghana Agroecology Movement (GAEM), a civil society organisation, has called on the government to adopt home grown policies to support farmers to venture into organic farming and the production of organic fertilisers. It urged the government to collaborate with the private sector to provide adequate financial and logistical support for farmers to adopt agroecological farming practices such as organic farming. The movement explained that in the face of current constraints in the global supply chain, including the high cost of fertilisers and other farm inputs due to the Russia-Ukraine war, resorting to organic farming was the most prudent thing.
President Samia to launch fertiliser scheme in August (The Citizen)
President Samia Suluhu Hassan will inaugurate the country’s fertilizer subsidy programme during Farmers Day (‘Nane Nane’) in August this year. This was revealed by Agriculture minister Hussein Bashe here on Tuesday, saying the Head of State has made it clear that she was determined to revolutionise agriculture in the country. “In this fiscal year (2022/23), the government has committed itself to provide Sh150 billion as a subsidy package for fertiliser, to smallholder farmers, a response to the world’s commodity price upsurge. He added: “The government has also reintroduced the Fertilizer Bulk Procurement System (FBPS) through which a price cap for fertiliser will take effect, to stop businesses from hiking prices as witnessed in recent months.” Unscrupulous traders have been hiking the prices arbitrarily on ground of Covid pandemic and the Russia-Ukraine conflict yet sometimes this was uncalled for, hence the government sought to reinstate FBPS, and control prices.
Nigeria hasn’t been able to produce steel: Remanufacturing could be the solution (Down to Earth Magazine)
Lack of a rail line around Ajaokuta Steel plant, changes in political and operational management stymied completion Nigeria has pumped more than US$8 billion into Ajaokuta Steel Company, a project which began more than 40 years ago but has yet to produce one tonne of steel. Several attempts have been made to bring the plant into production, but without success. It was built to 98% capacity by the Soviet Union’s Tyazpromoexport. But the lack of a rail line around the plant, and changes in political and operational management over the years, stymied completion. Bilateral discussions in 2019 raised the possibility of Russian funding to resuscitate the steel plant, but the COVID-19 pandemic and the Russia-Ukraine crisis may have stalled any unofficial agreements. Another problem for the plant is that some of its installed equipment may have been corroded and degraded by now.
Resilience to Water Scarcity and Commodity Price Shocks are Critical for Moroccan Economic Growth and Stability (World Bank)
After a strong recovery in 2021, Morocco’s economy has suffered this year from the impact of a severe drought, a slowing global economy, and higher global energy and food prices. According to the World Bank’s latest report Morocco Economic Monitor, Spring 2022: The Recovery is Running Dry, the economy will slow down markedly in 2022, with a projected growth rate of 1.3 percent in 2022, compared to 7.9 percent last year. The impact of the drought, compounded by the war in Ukraine, highlights Morocco’s exposure to climate and global commodity price shocks. Successive droughts over three of the last four years are a stark reminder of the vulnerability of Morocco’s economy to increasingly erratic rainfall levels. The report includes an analysis of the macroeconomic impact of droughts and water scarcity in Morocco, carried out as part of upcoming work that looks at climate and development in Morocco.
African trade and integration
Summit of EAC Heads of State commit to revitalize the bloc’s Common Market (EAC)
The Summit of EAC Heads of State have reaffirmed their commitment to implementing the EAC Common Market Protocol. The Summit that met physically for the first time in three years noted that the Common Market was the best way to increase intra-regional trade and spur economic growth in the region.
In his remarks, President Uhuru said that infrastructure development was critical in attaining the region’s objective of being one big market stretching from the Indian Ocean to the Atlantic Ocean. President Kenyatta said that East Africa would only attain the Common Market if its citizens were able to communicate easily, and to move and ferry goods freely across the region.
President Kenyatta said that if the region is not interlinked through infrastructure, it would remain a market for other nations and blocs, not a producer of commodities for sale. He said that by exporting minerals and raw materials, the region would essentially be exporting jobs as is now the case, adding that value addition to national products was key. President Kenyatta said that EAC had a vast opportunity to grow with its ever-expanding market and therefore reduced economic dependence on the developed world.
Also in the news
Somalia renews push to join East African Community
AfCFTA council ministers agree to commence trade – Anatogu
President Kenyatta underscores importance of infrastructure in regional integration
East African leaders eye closer links, infrastructure growth for economic boost
Report: Africa Countries Partly to Blame for Food Insecurity (VOA)
Economic and trade experts are calling on African countries to increase trade with each other and revive their agriculture sectors to overcome food insecurity and slow economic growth exacerbated by the war in Ukraine. The global food crisis has led to some 300 million Africans being food insecure. The crisis in Africa has multiple causes: persistent drought in eastern Africa, high food and energy prices, and the cutoff of wheat exports from Ukraine. Speaking online to journalists Wednesday, Stephen Karingi, the head of trade at the United Nations Economic Commission for Africa, said African countries also share some blame for the situation. “Our food markets are experiencing a shock that is coming from outside the continent but why we are experiencing this shock is because we have very low intra-African trade in agriculture and agro-foods,” Karingi said. “If we had done better and unlocked the full potential of the agricultural sector, we wouldn’t be experiencing what we are experiencing today.”
As part of its regular Price Watch Dialogue series, the African Centre for Statistics (ACS) at the Economic Commission for Africa (ECA) hosted, on 21 July, a policy dialogue on the impact of the Ukraine-Russia conflict on commodity and food prices in Africa. In his welcoming remarks, Oliver Chinganya, ACS Director, stated “Africa, in the last two years, has been hit by exogenous shocks that undermine its dreams of prosperity. Interest rate hikes, increased borrowing costs, weakened currencies and tightening global financing conditions have had dire implications on the fiscal space of low and middle-income countries.”
ECA is supporting Member States to reduce the severity of the food crisis through the Africa Trade Exchange Platform (ATEX). The ATEX is a pool procurement marketplace, which has the potential to strengthen Africa’s economic resilience. “The platform can mitigate the supply shocks by pooling and aggregation Africa’s demand and supply to enable the negotiation of competitive prices and facilitate the delivery of essential commodities at affordable prices while boosting regional trade,” explained ECA economist, Wafa Aidi.
Afreximbank and East African Business Council launch the EABC-Africa Trade and Investment Council (Afreximbank)
African Export-Import Bank (Afreximbank) and the East Africa Business Council (EABC) have launched the EABC – Africa Trade and Investment Council, with the goal of creating a platform for engagement and investment between the East Africa Community (EAC) and the rest of Africa, to unlock investment opportunities, private sector development and business growth. Launched in Rwanda, the Council will help the private sector in EAC to engage with the rest of Africa with a view towards increasing access to intra-African investment as well as trade and market information through trade fairs and investment forums, while increasing knowledge and awareness. Through this arrangement, Afreximbank will provide a range of its financing instruments and trade facilitation initiatives to facilitate intra-African trade and investment under the African Continental Free Trade Agreement (AfCFTA).
AU Commissioner calls countries to address high air transport costs (IPPMedia)
The Commissioner made the statement recently at the 34th African Civil Aviation Commission (AFCAC) extra ordinary plenary that took place from 14-15th July 2022 in Dakar-Senegal. She said while the aviation industry seeks to recover, it has to be affordable to Africans and competitive with other modes of transport, to facilitate intra-African trade and free movement of people and goods. “Our priorities are to address the issue of the high cost of air transport on the continent,” she said.
Giving details she said that Africa’s total international air connectivity in May 2022 was 93 percent of pre-crisis levels and international air connectivity for May 2022 is 77 percent of pre-crisis levels. In addition to that, air cargo, which was a key lifeline for vaccines, supply chains, and airline revenues throughout the COVID-19 crisis, has grown to be an even more vital contributor to Airline revenues.
To capitalise on green transition, Africa urged to add value to critical minerals (Engineering News)
The global transition to lower-carbon economies and societies presents resources-rich Africa with an opportunity to boost growth and employment by playing a greater role in mining and processing the so-called green or critical minerals required for low-carbon technologies. Green minerals are those used in vast quantities in modern electric systems, such as renewable-energy products, batteries and power distribution, and include copper, cobalt, lithium, manganese, graphite and nickel. However, as the world’s major powers increasingly compete for green technology production capacity and search for supplies of green minerals, Africa’s priorities regarding value addition and industrialisation could be overshadowed.
To avert this, Africa needs to add value to its green minerals supply chains to capture a greater portion of the minerals supply chain, boosting its overall contribution to green technology development and the broader manufacturing sector.
The 41st Ordinary Session of the Executive Council adopted the African Common Position on Energy Access and Just Transition, on the 15th of July 2022, a comprehensive approach that charts Africa’s short, medium, and long-term energy development pathways to accelerate universal energy access and transition without compromising its development imperatives.
The African Union Commissioner for Infrastructure and Energy H.E Amani Abou-Zeid calls the adoption of the Common Position ‘a major step forward’. “This is an important and major step forward towards ensuring and confirming Africa’s right for a differentiated path towards the goal of universal access to energy, ensuring energy security for our Continent and strengthening its resilience, while at the same time acting responsibly towards our planet by improving the energy mix.” said Dr Abou-Zeid emphasising that it is a timely measure to push for favourable outcomes and tangible investments in energy and infrastructure at COP 27 set to take place in November 2022 in Sharm El Shiekh, Egypt.
Access to energy currently stands low in Africa compared to other regions, with more than 600 million Africans living without electricity services while 900 million lack access to clean cooking facilities. The African Common Position encourages striking a balance between ensuring access to electricity to catalysing the much-needed socio-economic growth in Africa and smoothly transitioning towards an energy system based on renewable and clean energy sources matching the ambitions of Agenda 2063.
Invest in Africa, African Development Bank chief urges investors at U.S.-Africa Business Summit (AfDB)
The President of the African Development Bank Group Dr. Akinwumi Adesina has given strong assurance to U.S. investors that Africa is a secure, competitive and profitable market for investment. Adesina was speaking on Wednesday at the U.S.-Africa Business Summit in Marrakech where he told American investors to see Africa as a logical investment destination and to engage with the continent in win-win partnerships.
In a video message, Vice President Kamala Harris said: “We are focused on the urgent need to increase food production and exports with and within Africa.” She said public-private partnerships could play a key role in this regard. The U.S. Corporate Council on Africa partnered with Morocco to organize the summit under the theme, ‘Building Forward Together.’
Speech by President Charles Michel at the Mid-year coordination meeting of the African Union (European Commission)]
Exactly five months ago, we, European and African leaders, gathered in Brussels for an exceptional Summit. Together, we decided on a new paradigm, a new software for our strategic partnership, a software anchored in the principles of mutual respect, common interests, shared values and sincere equality between partners.
And now we must follow through on our commitments and that is precisely what we have begun to do together, through respectful and quality partnerships. The goal of our partnership is to create ties, not dependencies, strong bonds to face challenges together.
You have decided to set up the Continental Free Trade Area. Boosting trade and economic integration, this is common sense and this is also the path chosen many years ago by the European Union to build the internal market. It is therefore no surprise that we are ready to support.
you have chosen the path of economic integration, and as President Hichilema put it so perfectly at dinner last night, our shared goal is to promote prosperity through investment, economic cooperation and trade, not so as to share poverty, but so as to share prosperity fairly. It is in that spirit that the Global Gateway project, presented in Brussels five months ago, aims to mobilise €150 billion for investments that promote and support the capacity for prosperity and economic development.
India-African trades reached a record US$89.5 bln in FY2020/2021 (Ecofin)
Trade between India and Africa reached a new record in the 2020-2021 fiscal year that ended on March 31, 2021. From US$56 billion during FY2019-2020, trade between the partners rose to US$89.5 billion, the Indian Minister of External Affairs Subrahmanyam Jaishankar (photo) announced last Tuesday.
Through the Duty-Free Tariff Preference (DFTP) Scheme that extends duty-free access to 98.2 percent of India’s total tariff lines, India has opened its market to African countries. So far 33 LDC African nations have been entitled to get benefits under this scheme,” he said at the17th CII-EXIM Bank Conclave on India-Africa Growth Partnership.
The Indian diplomat added that the implementation of the African Continental Free Trade Area (AfCFTA) would help Indian companies boost their presence on the continent.
Govt notifies five ports for imports of pulses from Myanmar, Mozambique & Malawi (The Financial Express)
To meet domestic shortfall, the government has notified imports of 0.6 million tonne (MT) of tur and urad annually under bilateral agreements with Myanmar, Mozambique and Malawi, through five ports. According to a notification issued by the Directorate General Foreign Trade, import of pulses will be allowed through five ports – Mumbai, Tuticorin, Chennai, Kolkata and Hazira. However, all the imports consignments need to have ‘certificate of origin’ issued by respective countries.
India signed an MoU with Mozambique for import of 0.2 million tonne of tur annually for five years when the retail prices of tur skyrocketed to Rs 200 a kg in 2016. This MoU was extended for another five years in September 2021. In 2021, India entered into a MoU with Malawi for the import of 0.05 MT tur per annum, till 2025. Imports from all the three least developed countries are exempted from import duties. According to estimates, India imports around 15% of annual pulses consumption. Around 2 MT of pulses were imported in FY22.
World Bank approves $100m support Africa Centres for Disease Control program (Devdiscourse)
The World Bank has approved a $100 million support program for the Africa Centres for Disease Control (Africa CDC) that will help enhance the institution’s technical capacity and strengthen its institutional framework to intensify support to African countries in preparing for, detecting, and responding to disease outbreaks and public health emergencies. Today the African continent is addressing several infectious disease outbreaks in addition to COVID-19 and there are growing risks looking ahead. Recent assessments have revealed widespread gaps in the preparedness capacities of African countries that disproportionately impact the poorest and more vulnerable. Regional approaches to health policies and interventions in complementarity with country and global efforts underscore the value of a strong Africa CDC geared towards safeguarding the health of the continent.
“Africa is changing the dynamic in its journey to realizing a New Public Health Order. This project comes at a critical time as we focus on enhancing our support to AU Member States on the health security agenda and standing up our autonomous institution of the AU,” said Dr. Ahmed Ogwell Ouma, Acting Director of the Africa Centres for Disease Control.
Global economy news
DG Okonjo-Iweala to African Union: MC12 outcomes will make a material difference for people (WTO)
One of the most important challenges facing the world today is food insecurity, a crisis already affecting millions in Africa. A number of heads of state at the African Union summit underlined the growing problem of food insecurity, which is being exacerbated by rising costs for food, energy, fertilizers and other agricultural inputs.
The Director-General urged African countries to take part in ongoing talks on making the WTO more supportive of small businesses and climate goals. On the latter, she said the UN Climate Change Conference in Sharm El Sheikh, Egypt, in November would be an opportunity to showcase how trade can be a bigger part of the solution to climate mitigation and adaptation.
UNCTAD urges action to address consumer vulnerability in financial services (UNCTAD)
The cascade of crises facing consumers, from COVID-19 to food and energy price shocks due to the war in Ukraine and climate change, puts billions of people in a vulnerable situation. The digital transformation of economies is also propelling consumer vulnerability to new heights. Amid the heightened vulnerability, world experts discussed financial consumer protection at UNCTAD’s meeting of the intergovernmental group of experts on consumer protection law and policy held on 18 and 19 July. “Accessing and benefiting from financial services is a basic consumer right,” said Teresa Moreira, head of competition and consumer policies at UNCTAD, “It’s essential to realizing most economic transactions nowadays and for improving a consumer’s life,” she added.
How competition enforcement can boost economic recovery (UNCTAD)
Experts explored how competition law enforcement should evolve to contribute to post-pandemic recovery during the twentieth meeting of UNCTAD’s intergovernmental group of experts on competition law and policy held from 20 to 22 July. The pandemic called for a rethink of how authorities administered and enforced competition laws, the exemptions they granted and the activities they authorized. “Disrupted markets required competition authorities across the world to react quickly and show flexibility to the new context. Lessons learned can lead to more effective competition law and enforcement,” said Teresa Moreira, head of competition and consumer policies at UNCTAD.
Global Findex Database 2021 reports increases in financial inclusion around the world during the COVID-19 pandemic (World Bank)
In developing countries today, 71% of people have an account, up from 42% a decade ago. (Globally, 76% of adults around the world have an account today, up from 51% a decade ago.) These tremendous gains are also now more evenly distributed and come from a greater number of countries than ever before. The biggest growth has been in the use of digital payments, which surged during COVID-19 mobility restrictions and when cash was perceived as unsanitary.
Digital payments are typically safer and more convenient, and can be an entry to using other financial services. Findex data show that adults who receive a payment into an account in developing economies make use of financial services more than the average adult.
In developing economies, 36% of adults received a payment into an account, such as private or public sector wage payments, government transfer or pension payments, payments for the sale of agricultural products or domestic remittances.
Standards committee showcases work on transparency, discusses digital and environmental issues (WTO)
The Committee also held a thematic session on how micro, small and medium-sized enterprises (MSMEs) can better participate in international trade. Other activities during the week included work on developing guidelines to help governments improve product certification and on how regulations can help pandemic preparedness. A total of 80 specific TBT-related trade concerns were discussed by members, 13 of which addressed new concerns, most of them related to environmental and digital issues.
WTO issues updated note on trade in medical goods in the context of tackling COVID-19 (WTO)
The updated note points out that total imports and exports of medical goods were valued at US$ 2,028 billion in 2019 and grew to US$ 2,654 billion in 2021, with a yearly growth rate of 14.4 per cent. In 2019, before the pandemic, the medical goods sector comprised 5.3 per cent of total world trade. This share increased to 6.6 per cent in 2020 and was at 5.9 per cent in 2021.
Black Sea grain exports deal ‘a beacon of hope’ amid Ukraine war – Guterres (UN News)
“Today, there is a beacon on the Black Sea,” the UN chief said. “A beacon of hope – a beacon of possibility – a beacon of relief -- in a world that needs it more than ever.” The UN plan, which also paves the way for Russian grain and fertilizer to reach global markets, will help to stabilize spiralling food prices worldwide and stave off famine, affecting millions.
Ukraine is among the world’s leading grain exporters, supplying more than 45 million tonnes annually to the global market, according to the UN Food and Agriculture Organization (FAO). The Russian invasion, which began on 24 February, has sparked record food and fuel prices, as well as supply chain issues, with millions of tonnes of grain stocks stuck in silos. In addition to stabilizing global food prices, the agreement “will bring relief for developing countries on the edge of bankruptcy and the most vulnerable people on the edge of famine,” said Mr. Guterres.
How trade regulations may be opening up a new era of sustainable growth in the Global South (The Conversation)
In our interconnected world the food systems are increasingly under pressure. Cross-border trade has brought prosperity to households and food diversity to our kitchens, but also an increased risk of transporting pests and pathogens. Illegal trade in live animals, which accounts for $8-10 billion annually, exacerbate these hazards yet even more. Climate change is another global challenge.
Several international institutions, such as the World Trade Organisation (WTO), are stressing the importance of the problem and the need to act, and encourage the use of trade policies to support the climate agenda.
Trade policies such as the sanitary and phytosanitary (SPS) measures are pervasive in the agri-food sector and frequently used to regulate trade of products vulnerable to pests and pathogens and exposed to disease outbreaks. Their aim is to protect human, animal or plant life or health through safety standards.
With the Global South accounting for the vast bulk of raw agricultural production (e.g., the value added of agriculture accounted for 17.2% of Gross Domestic Product of Sub-Saharan Africa in 2021), Fabio Gaetano Santeramo and I were curious to see how these regulations impacted national economies and global trade.
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South African president urges stakeholders to examine progress in redressing racialized economy (Xinhua)
South African President Cyril Ramaphosa on Wednesday urged stakeholders to examine areas where transformation has been slow and implementation has been weak as the country reflected on progress in transforming racialized economy.
There are now more than 300,000 black entrepreneurs who own over half of all small businesses in the formal sector in the country, while in 1994, the year when apartheid ended, there were around 150,000 black-owned formal businesses in South Africa, Ramaphosa gave an example of gains in the transformation at the opening of the inaugural Black Industrialists and Exporters Conference in Johannesburg.
There has also been substantial progress on employment equity and the number of black managers in the private sector has more than doubled over the past 20 years, from 125,000 in 2002 to over 350,000 at present, Ramaphosa told more than 1,000 delegates, including officials, entrepreneurs, representatives of labour unions, citing figures of labour force surveys.
SA's consumer price inflation races to 13-year high (Sunday World)
South Africa’s consumer price inflation (CPI) raced to 7.4% in June from 6.9% in May, show Statistics SA figures that were released on Wednesday. This is the highest rate recorded since May 2009 when the rate was at 8%. “The consumer price index increased by 1.1% month on month in June 2022,” said Stats SA.
According to Stats SA, the main contributors to the 7.4% annual inflation rate were food and non-alcoholic beverages, housing and utilities, transport, as well as miscellaneous goods and services.
It said food and non-alcoholic beverages increased by 8.6% year on year and contributed 1.5 percentage points to the total CPI annual rate of 7.4%, while housing and utilities increased by 5.1% year on year and contributed 1.2 percentage points.
AfCFTA: 'Lack of export strategy undermines Nigeria's gains' (New Telegraph Newspaper)
The lack of export strategy by Nigeria will deny her the opportunity of reaping maximally from African Continental Free Trade Area (AfCFTA), a faculty member of the Lagos Business School (LBS), Dr Frank Ojadi, has said.
“I was examining the coastal shipping which ought to boost the African Continental Free Trade Area (AfCFTA) and I discovered that high costs in our ports and shipping are contributing to our not being competitive enough to export products. “Coastal shipping will help in properly placing Nigeria to reap bountifully from the AfCFTA. Infrastructural deficits that are associated with
Angola awards $333m contract to Trafigura consortium to improve Congo rail link (Engineering News)
Angola's ministry of transport has awarded a tender to a Trafigura consortium to operate and expand rail infrastructure to speed up commodity imports from Democratic Republic of Congo.
Congo, Africa's biggest copper producer, exports copper, cobalt and other metals in trucks via Tanzania or South Africa, which takes several weeks because of congestion and customs delays.
As part of a 30-year concession agreement, the consortium has agreed to invest $256-million in infrastructure, $73-million in rolling stock and $4.3-million on other activities, Angola's transport ministry said, to improve the Lobito corridor.
South Africa: Finance gaps for local green entrepreneurs need to be addressed (Engineering News)
Local green entrepreneurs (LGEs) are faced with a finance gap in South Africa, with many small, medium-sized and microenterprises (SMMEs) operating in the space seeking funding and support and struggling to find it, economic research firm Trade and Industrial Policy Strategies (Tips) sustainable growth researcher Elize Hattingh has noted.
LGEs have the agility to accelerate access to new markets and play a catalytic role in the diffusion and uptake of green innovations, owing to their role as key adopters and testers for radical green innovations in the production and manufacturing of environmental goods, services and technologies – which many established firms view as high-risk and therefore avoid.
Hattingh noted during a July 20 webinar that SMMEs were critical for economic development and job creation, but there should also be acknowledgement of their potential to be vital economic players in driving inclusive and sustainable development.
Nigeria: AfCFTA: NAC to anchor agreement on 8 pillars to boost trade (Daily Sun)
To achieve the objectives of the intra-Africa trade, the National Action Committee (NAC) on African Continental Free Trade Agreement (AfCFTA), has said it would anchor its strategy on eight pillars that would align with the African Union’s framework for boosting the continental trade.
Secretary of the Committee, Francis Anatogu, who made the remark recently also added that in partnership with the Lagos Chamber of Commerce and Industry (LCCI) and support from Nigerian Export Promotion Council (NEPC), the committee has commenced a project to onboard Nigeria SMEs on to its e-commerce platforms focusing initially on three cities of Lagos, Aba and Kano.
He said in partnership with the Federal Ministry of Agriculture and Rural Development, the committee has commenced a project to commercialise agricultural research findings available in the various research institutes across the country as one of the steps to improve yield as well as incentivise research and innovation for agricultural products development for export.
Ghana Supports The Establishment of The African Credit Rating Agency (African Union)
The APRM delegation, led by Dr. Abdoulie Janneh, who is the Vice Chair of the APR Panel of Eminent Persons and Prof. Eddy Maloka, the Chief Executive Officer of APRM Continental Secretariat, met with the Vice-President of Ghana, Hon. Mahamudu Bawumia during their official visit to Ghana. Ghana reaffirmed its support to the establishment of an African Credit Rating Agency. Ghana is already Championing the establishment of the three African Union Financial Institutions - the African Investment Bank (AIB), the African Monetary Fund (AMF) and the African Central Bank (ACB).
The APRM was mandated by the 4th African Union Specialized Technical Committee (STC) on Finance, Monetary Affairs, Economic Planning and Integration to undertake a study on Financial, Structural and Legal feasibility of establishing an African Credit Rating Agency. The outcomes of this study are scheduled to be presented to the 5th STC meeting, which will be held in Lusaka, Zambia from the 21 - 22 July 2022 for consideration, endorsement and recommendation to the relevant policy structures of the African Union.
Liberia's Agriculture, Health, WFP, Partners launch nationwide rapid food security assessment (Farmers Review Africa)
Liberia’s Ministries of Agriculture and Health, along with the United Nations World Food Programme (WFP), and sector partners have launched rapid food security and nutrition assessment in urban and rural communities of Liberia. The program which will run for two weeks, will cut across Liberia’s 15 counties. It is part of efforts to assess the impacts of the global crisis on the agricultural production, rural livelihoods, food security and nutritional status of households and communities.
Socio-economic shocks of the COVID-19 pandemic and the conflict in Ukraine have hampered the already precarious food security situation in Liberia in recent years. According to the 2022 State of Food Security and Nutrition in the World (SOFI) report, the number of people affected by hunger globally rose to as many as 828 million in 2021, an increase of about 46 million since 2020 and 150 million since the outbreak of the COVID-19 pandemic, with Sub-Saharan Africa bearing the heaviest burden.
Nigeria: Stakeholders Identify Non-oil Exports as Panacea for Economic Rejuvenation at Zenith Bank Int’l Trade Seminar (THISDAY Newspapers)
Stakeholders have unanimously called for support of Nigeria’s non-oil export sector at the seventh annual edition of the Zenith Bank International Trade Seminar with the theme: “Unlocking Opportunities in Nigeria’s Non-Oil Export Business,” which was held yesterday in Lagos as well as virtually.
In his goodwill message presentation, the Founder and Chairman of Zenith Bank Plc, Mr. Jim Ovia called for a concerted effort towards diversifying Nigeria’s export base through the promotion of non-oil exports.
UNIDO: FG Should not Take 90% MSMEs Contribution to Nigerian Economy for Granted (THISDAY Newspapers)
The Regional Director of the United Nations Industrial Development Organisation (UNIDO), Mr Jean Bakole, has opined that the current economic situation in Nigeria can be boosted if the federal government takes cognizant of the huge contribution of the Micro Small and Medium Enterprises to all business activities in the country.
Speaking in Abuja on the various interventions being spearheaded by UNIDO in the country in recent years, Bakole pointed out that the MSMEs accounts for 96 per cent of all businesses in Nigeria and contributes 50 per cent of the GDP as well as providing over 48 percent of all employment opportunities in Nigeria.
He said, “In the Nigerian economy, the role of the MSMEs is absolutely key. They represent almost 96 percent of the business activities in the country. They are contributing to about 50 percent of the national GDP and account for 48 percent of all employment in the country.
Ghana, Thelo DB Consortium to Sign Agreement for Western Railway Line Project (Top Africa News)
Thelo DB consortium will sign a framework agreement for the transformational Western Railway Line Project with the government.
The signing ceremony will take place on July 25, 2002 during the Ministerial Programme hosted by the African Continental Free Trade Area Agreement (AfCFTA) Secretariat in Accra, Ghana.
Ronnie Ntuli, Chairman, Thelo DB, in a statement issued yesterday said "The Western Railway Line Project will transform Ghana's existing railway infrastructure base into a modern, robust and integrated railway system, with the associated infrastructure to position Ghana's rail network as a leading transport system in Africa."
ZAMBIA: The State wants to mobilise nearly $6 billion for access to water by 2030 (AFRIK)
The government is launching a new programme to secure access to water in Zambia. The “Zambia Water Sector Investment Programme”, aims to mobilise $5.75 billion for the construction of new water supply facilities in the East African country.
In addition to improving water supply by 2030, the programme will create jobs in Zambia’s water sector. Some 200,000 formal jobs will be created through gender-sensitive investments in water security, industrialisation and climate-resilient development.
The programme recently launched in collaboration with the International High Level Panel on Water Investments in Africa is part of the Continental Water Investment Programme (CWIP).
Nigeria: AUDA-NEPAD partners UN to deploy technology to assist smallholder farmers (Tribune Online)
As part of its efforts to contribute towards food security in Nigeria, the African Union Development Agency-New Partnership for African Development (AUDA-NEPAD) has unveiled the Juncao technology which it said would assist Nigerian farmers especially smallholder farmers grow more food, thereby fighting hunger.
The National Coordinator/CEO of AUDA-NEPAD/African Peer Review Mechanism, Princess Gloria Akobundu while speaking at the National Workshop on “Applications of Juncao Technology and its contributions to the achievement of sustainable Agriculture and the sustainable development goals in Nigeria, said the workshop aims to help African countries eliminate hunger and reduce poverty by raising economic growth through agriculture-led development.
The program is in a partnership between AUDA-NEPAD and the United Nations Department of Economic and Social Affairs (UNDESA).
Youth Expo to be held in Lüderitz (Namibia Economist)
The Namibia Facility Management (NFM) is inviting the youth to the Youth Entrepreneurial Mentorship Expo, taking place at Lüderitz Old Power Station from 27 to 28 July, in Lüderitz.
Under the theme, ‘Youth participation in the Namibian Economy by taking full advantage of African Continental Free Trade Area (AfCFTA) through Entrepreneurial Innovation’, the expo aims to showcase career opportunities and career guidance tips to inspire the young Namibian people.
African trade and integration
UN summit galvanizes action for development agendas in Africa (UN News)
The development of Africa was spotlighted at a key UN meeting on Wednesday, with attention focused on advancing the 2030 Agenda for Sustainable Development and the African Union (AU) Agenda 2063.
Despite being “rich with human and natural resources and enormous untapped economic and social potential,” General Assembly President Abdulla Shahid told the high-level The Africa We Want dialogue that the continent “still faces challenges” in realizing the Sustainable Development Goals (SDGs).
Africa has undergone a dramatic transformation since the end of the colonial era, with many countries struggling post-independence to secure socio-economic development, peace and security.
Press Release Committee of SADC Ministers Responsible for Disaster Risk Management (SADC)
A team, led by Dr. Mubita LUWABELWA, Director for Policy Planning and Monitoring and Evaluation (PPRM) and comprising of the Mr. Khutula SIBANDA, Director for Industrial Development and Trade (IDT) as well as our representative at the African Union, Mr. Jevin Pillay Ponisamy, attended the 41st Ordinary Session of the Executive Council of the African Union, the 4th Mid-Year Coordination Meeting (also referred to as the second AU Summit) held in Lusaka, Zambia from 14 to 17 July 2022.
Several issues were on the agenda of the 41st Ordinary Session of the Executive Council such as the Member State to be selected to host the headquarters of the African Medicines Agency (AMA) and the ultimate choice was on Rwanda; discussions on phase one and two on the operationalization of the Africa CDC and the financial sustainability of the Africa Epidemics Fund; the mid-term implementation report of the African Union theme of the year for 2022 on nutrition; the appropriate level of funds to be used under the crisis reserve facility of the AU Peace Fund. Elections to different positions were also held during this session.
North Africa: Private sectors have a key role to play in economic recovery, resilience (UNECA)
Tangier, 20 July 2022 (ECA) - The ECA Office for North Africa launched today a workshop on “Scaling-up the private sector participation in North Africa,” in partnership with the Abdelmalek Essaadi University and the National School of Business and Management of Tangier (ENCGT).
This event is taking place in Tangier on 20-22 July with the aim of providing practitioners, policy makers, development institution representatives and academics with a platform to exchange views on policies and best practices on strengthening private sectors’ role in North Africa. In addition, participants are drawing the outlines of a roadmap on this issue while accounting for the country specificities.
“In the current economic context, North African public sectors have very limited room to invest, and for countercyclical policies more broadly. This also underscores the growing need for a higher private sector involvement in greening the economy and in addressing social issues such as poverty and food insecurity. We need to understand what continues to hold the private sector back and challenges related to relatively low growth, limited labour utilization and subdued labour productivity in the region,” said Zuzana Brixiova Schwidrowski, Director of the ECA office for North Africa.
The African Development Bank will release an additional $27.41 million to implement Phase II of its flagship agricultural initiative, "Technologies for African Agricultural Transformation" (TAAT). The goal is to increase farming households' productivity and incomes by giving them access to climate-resilient technologies in 36 low-income African countries, by 2025. The decision to make this new disbursement was taken in Abidjan by the Bank Group’s Board of Directors on Friday 15 July 2022.
"The Bank is well positioned to harness the power of the science, knowledge and innovation needed to catalyse Africa's agricultural transformation through this investment. The Bank already has extensive experience in agricultural development assistance in Africa and this additional funding will help us to consolidate the achievements of TAAT-I," said Beth Dunford, African Development Bank Group Vice President for Agriculture and Human and Social Development.
"TAAT-II will help to address the challenges of strategic and economic diversification and will support implementation of national strategies to boost agriculture and agribusiness to create jobs (green jobs), especially for young people and women," she continued.
Corrections officers at SADC ERM workshop call for strengthened peace-building efforts in Mozambique (SADC)
Peace-building programmes should be strengthened at community level to ensure that everybody participates, and the adoption of non-violent conflict resolution, especially the use of human rights approach, is critical to effectively deal with conflicts. This came out of a five-day training workshop for prisons and corrections services held in Pemba, Cabo Delgado Province in the Republic of Mozambique, to capacitate the officers on how to deal with terrorism conflict in the province. The workshop is part of a series of Southern African Development Community (SADC) initiatives aimed at pacifying the security situation in Cabo Delgado Province which continues to be relatively calm but faces the threat posed by terrorist activities.
The training was held under the SADC Peace Building Support to the Republic of Mozambique being implemented under the Africa Peace Facility, with financial support from the European Union (EU). The SADC Peace Building Support to the Republic of Mozambique complements on-going efforts by the SADC Mission in Mozambique (SAMIM) which was deployed following the approval of the SAMIM mandate by the Summit of SADC Heads of State and Government on 23 June 2021.
Africa can shift to sweet potato amid wheat shortage (SciDev.Net)
The rapidly rising cost of wheat globally is a cue for African countries to shift attention to sweet potato for their baking industry, says Jan Low, a principal scientist at the International Potato Centre.
The Russia-Ukraine war has triggered a wave of disruption of food supplies across Africa and the continent now faces a shortage of at least 30 million metric tonnes of food, especially wheat, maize and soybeans imported from both countries.
Low says turning to roots and tubers, such as sweet potato, which is widely produced within the continent is good policy because it supports local farmers by providing a market for their product; and if adopted widely, saves governments’ much-needed foreign exchange.
Research shows Western lenders create most of African debt crisis (News Ghana)
In a report released last week, Britain-based charity Debt Justice found that African governments owe three times more debt to Western banks, asset managers, and oil traders than to China, and are charged double the interest.
The new finding came after Harry Verhoeven from the Center on Global Energy Policy at Columbia University, and Nicolas Lippolis from the Department of Politics and International Relations at the University of Oxford published a new study in May, which said the rise in African debt due to Chinese lending pales in comparison with the debt burden created by private creditors of other countries over the last decade.
The new findings lay bare the absurdity of the so-called “debt-trap diplomacy” that has been for too long touted by Western politicians and propaganda machines in smear campaigns against China, experts have said.
Africa urged to promote innovative financing solutions to realize climate ambitions (News Ghana)
Experts have called on African countries to promote innovative financing solutions to achieve ambitious climate investment goals and meet the Paris Agreement commitments.
The experts made the call during a joint UN Economic Commission for Africa (UNECA) and World Bank virtual workshop on the development of the Green, Social and Sustainable (GSS) sovereign bond market in Africa that was held on late Tuesday.
Hanan Morsy, Deputy Executive Secretary of the UNECA, told the gathering that ahead of this year’s UN Climate Change Conference (COP27), which is slated to be held in November this year in Egypt, Africa faces a mixed landscape for achieving climate ambitions and Nationally Determined Contributions (NDCs).
How Africa can tame the time bomb that is the ballooning population and improve health (Business Daily)
The growing population in countries with limited resources and low income will result in migration of people and may deprive Africa of highly qualified productive human capital. Internally low-income countries will experience rural to urban migration and this will put pressure on resources.
To stem the rapid population growth and maximise the potential benefits of a favourable age distribution, African countries need to invest in the REEF Framework which entails increased access to reproductive health, equitable education, and sustainable economic freedom and food security.
African countries must aspire to achieve universal access to sexual and reproductive health-care services, including for family planning, information and education as espoused by SDG 3. To achieve this, Africa should invest in meeting the needs of the furthest behind first.
South Sudan, Uganda hold first ever business forum in Juba (The East African)
South Sudan and Uganda are holding their first ever Joint Business Forum in Juba, seeking to boost trade and investment ties “through industrialisation and infrastructure development”.
The three-day forum and exhibition, which kicked off on Tuesday, has attracted over 200 businesspeople from the public and private sectors.
Uganda says the talks will help to identify ways to enhance investment opportunities and the already vibrant trade relations between both countries and consequently improve the livelihood of their people.
Private Sector Foundation Uganda (PSFU) chief executive Stephen Asiimwe says Ugandan businesses are looking to discuss advocacy, and networking, explore new opportunities, showcase products and services, and seek to understand the interventions required to strengthen the trade ties between the two countries.
Impact of G7’s multi-billion dollar plan on Africa’s infrastructure gap (Africa Feeds)
In late June 2022, it was announced at the G7 Summit in Germany that a USD 600 billion lending initiative, the Partnership for Global Infrastructure Initiative (PGII), would be launched to fund infrastructure projects in the developing world, with a particular focus on Africa.
DFIs are increasingly anchoring the infrastructure ecosystem in Africa – serving a critical function for project finance as investment facilitator and a check on capital. DFIs can shoulder political risk and access government protections in a way that others cannot, enter markets others cannot and are uniquely capable of facilitating long-term lending.
The African Union’s 55 member states have stated that their primary funding needs include support in terms of safety and security on the continent, as well help in implementing the African Continental Free Trade Agreement (AfCFTA) and the massive infrastructure investment it needs to be successful.
SADC Challenge Fund for Non-Profit Organizations (fundsforNGOs)
In response to the impacts on women arising from COVID-19, the SADC Challenge Fund is now open to support non-profit organizations and women in business associations that are already supporting the capacity building and/or training of women entrepreneurs to improve their skills in business and product development.
The Challenge Fund is implemented under the SADC Project on Industrialization and Women Economic Empowerment (IWEE) and is funded by the German Ministry for Economic Cooperation and Development as part of the CESARE programme.
The aim is to contribute towards increasing the participation of women-led businesses and female entrepreneurs in selected priority sectors and value chains in line with the SADC Industrialization Strategy and Roadmap (SISR).
For more information, visit https://www.sadc.int/procurement-opportunities/sadc-challenge-fund-non-profit-organizations-supporting-women-economic.
Union Minister Piyush Goyal emphasizes Need For India-Africa Trade and Investment Agreement (Business Standard)
Union Minister for Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textile Piyush Goyal has emphasized upon the need for a trade and investment agreement between India and Africa. India plans to strengthen its partnership with Africa in four areas to fulfil aspirations of both the countries, speaking at the inaugural session of CII-EXIM Bank Conclave on India-Africa Growth Partnership, the Union Minister said. First area is solar power, this will help bring clean energy, energy security and will create jobs in Africa. Second is defence trade and military exchanges in Indian Ocean, manufacturing of armoured vehicles and UAVs. Third is physical & digital infra, helping in IT/Consultancy & Project Exports and the fourth one is healthcare & pharma.
He said, we are working to lead the developing world out of food insecurity, efforts are being made to take quality life and prosperity to the people of India and Africa.
Global economy
WHO calls for action to provide migrant and refugee healthcare (UN News)
Millions of refugees and migrants face poorer health outcomes than their host communities, which could jeopardize reaching the health-related Sustainable Development Goals (SDGs) for these populations.
The warning from the World Health Organization (WHO) comes in its first ever report on the health of refugees and migrants, published on Wednesday.
It calls for urgent action to ensure people on the move can access healthcare services that are sensitive to their needs.
“Whether by choice or by force, to be on the move is to be human and is part of human life. Whatever a person’s motivation, circumstance, origin or migratory status, we must unequivocally reiterate that health is a human right for all, and that universal health coverage must be inclusive of refugees and migrants,” said Tedros Adhanom Ghebreyesus, the WHO Director General, in the forward to the report.
UNCTAD data highlights need to strengthen business ICT statistics (UNCTAD)
As the COVID-19 pandemic has accelerated digital transformation, measuring how businesses are harnessing digital opportunities for economic resilience and sustainable development has become ever more critical.
“As the world becomes more digitally dependent, disparities that put individuals and businesses in developing countries at a disadvantage threaten to accelerate existing inequalities,” said Shamika N. Sirimanne, director of UNCTAD’s technology and logistics division.
“More decisive action is needed to bridge the widening digital and data divides,” she added.
Sri Lanka economic crisis requires ‘immediate global attention’: Rights experts (UN News)
Greater support must be given to Sri Lanka as the country faces economic crisis and political turmoil, a group of UN human rights experts said on Wednesday in an appeal to the international community.
“Sri Lanka’s economic collapse needs immediate global attention, not just from humanitarian agencies, but from international financial institutions, private lenders and other countries who must come to the country’s aid,” they said in statement.
The nine experts expressed alarm over record high inflation, rising commodity prices, power shortages, a crippling fuel crisis and economic collapse, as the country grapples with unprecedented political turmoil.
Items proposed for consideration at the next meeting of the Dispute Settlement Body (WTO)
The WTO Secretariat has circulated a meeting notice and list of items proposed for the next meeting, on 21 July 2022, of the Dispute Settlement Body, which consists of all WTO members and oversees legal disputes among them. The meeting notice is circulated in the form of a document officially called an “airgram”.
Find the meeting notice and item proposal document here.
Global Hub Launched to Eradicate Women's Digital Financial Exclusion and Accelerate Women's Business Ownership (PR Newswire UK)
New Women's Digital Financial Inclusion Advocacy Hub to Champion Equal Access to Digital Financial Services for Women; Initial Efforts to Support Local Coalitions in Indonesia and Ethiopia; as well as Encourage Others to Join the Coalition
NEW YORK, July 20, 2022 -- Women's World Banking and the UN Capital Development Fund today announced the launch of the Women's Digital Financial Inclusion (WDFI) Advocacy Hub, a new global coalition to catalyze collective action to increase women's digital financial inclusion. The coalition aims to close the gender gap in access to digital technology, skills, and digital financial products for women entrepreneurs – particularly in developing countries.
"Three quarters of a billion women around the world are excluded from the formal financial system," said Mary Ellen Iskenderian, President and CEO of Women's World Banking. "Imagine the possibilities if those women had equal access to technology, skills, and financial services. The WDFI Advocacy Hub is a groundbreaking global collaboration that will make those possibilities a reality and close the financial inclusion gap."
How record-setting heat waves in cities across UK, US and mainland Europe could punish economies already reeling from inflation (The Conversation)
Hundreds of millions of people struggled to keep cool amid a sweltering summer heat wave as cities across the U.S. and mainland Europe experienced record-high temperatures. In the U.K., thermometers topped 104 Fahrenheit (40 degrees Celsius) on July 19, 2022, the highest ever recorded.
While all this broiling heat is surely punishing on a personal level, it also has significant impacts on the broader economy.
Time is ripe for India to explore trade deal with AfCFTA: Commerce Secy (Business Standard)
With the signing of the world’s largest free trade area–African Continental Free Trade Area (AfCFTA)--the time is right for India to explore a trade with the union, commerce secretary BVR Subrahmanyan said on Wednesday.
“The African Continental FTA came into force in January last year. I know it's early years, a lot of it has to get operationalized, I think the time has come for India and Africa to also start talking about engaging in a comprehensive economic partnership or a free trade agreement,” Subrahmanyan said at the 17th CII-Exim Bank conclave.
“Officials (from India) will be engaging with some of your colleagues (from African nations) on trade matters to do that…. We can help each other with raw materials, technologies, manufacturing, ideas and potential investment. We can help each other in education, health, in pharmaceuticals, and we can help each other become part of global value chains. And I think that is something that's very important for both of us. We can do that. There is a great feature for our partnership,” he said.
Indonesia meeting represents chance for G20 to build on WTO progress (The Australian Financial Review)
Strategic competition between China and the United States has made global cooperation much harder. Both countries are the source of global uncertainty, but neither has yet walked away from the WTO or global arrangements such as the G20.
The world’s two largest powers account for about 30 per cent of the global economy, and between them have the clout to undermine certainty about the rules. At the same time, countries representing 70 per cent of the global economy want a rules-based order that constrains the major powers.
The already difficult situation has been worsened by Russia’s invasion of Ukraine and the resulting food and energy crises. Recovery from the pandemic is incomplete, and we’re starting to see what a changing climate looks like.
UN Women and Ant Foundation launch “Together Digital” to empower women entrepreneurs in the digital economy (Business Wire)
UN Women and Ant Foundation, today jointly announced the launch of “Together Digital”, a five-year programme to support women-led micro, small and medium-sized enterprises (MSMEs) and empower them to participate and thrive in the digital economy.
“The Together Digital programme will leverage UN Women’s vast expertise in women’s economic empowerment, as well as the Ant Foundation’s wide network and track record in entrepreneurship and digital empowerment,” said Sarah Knibbs, Deputy Regional Director of UN Women Regional Office for Asia and the Pacific. “We are pleased to enter this partnership with the Ant Foundation, with whom we share a mutual interest in the digital empowerment of women.”
Against this backdrop, the Together Digital programme aims to help narrow the gender gap in access to digital technology, and to support the digital empowerment of women. Through training, access to markets and resources such as funding and knowledge exchange opportunities, the programme will support women entrepreneurs in MSMEs to establish, maintain and expand their businesses in the digital era.
Green Climate Fund Board approves new climate funding, bringing assets under management to USD 40 billion (ReliefWeb)
The Green Climate Fund (GCF) Board has approved four new climate projects valued at USD 380.7 million in GCF funding and USD 1.0 billion with co-financing, whilst also launching the process for the Fund’s replenishment for the 2024-2027 period. With the newly approved projects, GCF’s portfolio now stands at 200 projects with a total value of USD 10.8 billion in GCF resources, USD 40.3 billion including co-financing.
Held in GCF’s host city of Incheon, the Board meeting was the first to be held in-person in the Republic of Korea since November 2019. During the four-day meeting, the Board also adopted new policies including an adaptation framework that will guide GCF’s approach and scope for providing adaptation support, and a climate rationale policy that will ensure a transparent and consistent approach to climate impact potential for funding proposals.
A formal decision was also made to launch the second replenishment for GCF for 2024 – 2027 (GCF-2). This launch will be followed by consultations on the strategic programming direction for GCF-2 as the GCF-1 programming period (2020 - 2023) ends next year. A pledging conference for the replenishment will be held in September 2023.
President Biden Plans African Leaders Summit Mid-December – OpEd (Eurasia Review)
As a further major step to strengthen relations, President Joe Biden plans to hold African leaders in the White House mid-December. According reports, the U.S.-African summit will discuss the emerging global order, changing geopolitical and economic issues and will also offer enormous funds for various development projects as well as for good governance and human rights.
Under the plan, Washington says the summit will focus on existing challenges, especially those relating to peace and security, food security to climate change and poverty alleviation directions across Africa.
The high-level dialogue is expected to set the scene for reviewing the opportunities for the United States and African public and private sector leaders, how to strengthen the economic partnership between the United States and Africa related to large-scale investments in key sectors.
Cost of living crisis hits poorest the hardest, warns UNCTAD (African Business)
UNCTAD’s analysis shows that a 10 per cent increase in food prices will trigger a five per cent decrease in the incomes of the poorest families, roughly equivalent to the amount those families would normally spend on healthcare.
As consumers try to reduce their spending, they will pay a high price if they buy cheaper, but unsafe products. The United States reports 43,000 deaths and 40 million injuries per year associated with consumer products, with yearly costs of over $3,000 per capita.
While more developed countries have put in place product safety frameworks, including laws, enforcement institutions, recall mechanisms and communication campaigns, developing countries with weaker systems, UNCTAD said, are less able to regulate the scourge of unsafe products.
Summer steps forward for US and global trade digitisation: Prepare to swoon? (TXF)
Digital trade in the US took what is being described as a big step forward on 13 July when the Uniform Law Commission (ULC) passed several amendments to the Uniform Commercial Code (UCC) addressing digital assets, terminology to account for digital records, electronic signatures, and distributed ledger technology, providing rules for electronic negotiable instruments, and clarifying the rules for UCC applicability to hybrid transactions involving both goods and services. The measures still need to be taken up by state legislatures. And that’s the key – it’s a federal solution.
The issue in the US has been that there has never been a federal solution to the handling of commercial trade documents. “The breakthrough was really last year where the UK secured G7 ministerial commitment, which of course includes the US,” says Chris Southworth, co-chair of the Legal Reform Advisory Board of the ICC Digital Standards Initiative (DSI). “The breakthrough is that the US government has now identified a solution which is the UCC and is now actively progressing on reforming the law to enable those documents to be handled across state boundaries.”
Ministers of Africa and the Americas hold first summit to enhance cooperation on agrifood issues (Jamaica Observer)
Ministers of agriculture, national senior officials in the fields of environment, science and technology, heads of international organisations and private sector representatives will meet this month during the first Summit of Africa and the Americas, which will seek to enhance cooperation between the two continents on agrifood systems amid global threats to food security.
The summit is being organised by IICA, the African Union Development Agency — New Partnership for Africa's Development (AUDA-NEPAD) and AGRA, who agree that both continents face common challenges in advancing agrifood system transformation and will benefit from sharing of experiences to foster collaboration within the framework of South-South Cooperation.
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Cargo thieves are going after hair extensions and wigs, as SA’s imports soar (Business Insider South Africa)
Wigs and hair extensions imports are increasingly becoming prone to cargo theft and hijackings once they reach South Africa, with these items becoming one of the most insured goods likely to be stolen. The South African illicit trade market is primarily to blame for the increasing theft of wigs and hair extensions, Marika van Rhyn, Hollard Marine’s senior business development manager, said. Globally, the hair extension market is valued at around R41 billion and is expected to grow to R59 billion in 2028, at a rate of 5.3%, market research house Fortune Business Insights states. It said a growing fashion sense and aspiration for luxury by South African consumers, and others in the UAE and Saudi Arabia, are mainly fuelling the hair extension markets of the Middle East and some African regions.
Over the past four years, South Africa’s imports for hair extensions jumped 64%, with the country’s annual imports for hair products in general reaching around R1.1 billion, Van Rhyn said.
The thefts commonly occur at the ports, when the goods get offloaded after arrival, or in transit to their final destinations in hijacking incidents.
Government quietly setting up a new state-owned gas company: report (BusinessTech)
The South African government is quietly setting up a new state-owned company that will focus on gas lines between South Africa and Mozambique, a new report by amaBhungane reveals. Energy minister Gwede Mantashe has been pushing for gas to be used to plug South Africa’s widening energy gap – this despite a global effort to move away from fossil fuels toward renewable energy programmes. According to amaBhungane, the Central Energy Fund (CEF) is now in the process of establishing a new state-owned gas trading entity that will primarily source gas from Mozambique.
Car tax changes proposed for South Africa (BusinessTech)
The opposition Democratic Alliance has called for the fast-tracking of proposals in the government’s automotive green paper, which it says will help with the adoption of electric vehicles in South Africa. The DA has also called for the scrapping of all import duties on electric vehicles (EVs) to the country, which will allow motorists to purchase reasonably-priced electric vehicles in the face of growing petrol prices, it said. Electric vehicles currently face import tariffs of 25% compared to the 18% paid on traditional internal combustion engine (ICE) vehicles. “It makes no sense whatsoever that import duty exists on electric vehicles, except to protect big manufacturers in South Africa who refuse to transition to EVs and hybrids, and keep South Africans on petrol and diesel to keep raking in fuel taxes,” said the DA’s Dean Macpherson. “While many countries offer cash incentives against the purchase of EVs, the least we could do in South Africa is reduce the cost of EVs to consumers by a massive 25%. This would be a non-cash incentive which would be manageable by government.”
Kenya: Govt launches procedures to secure borders (Capital News)
The government has launched the the Standard Operating Procedures (SOP) for points of entry and exit which are geared towards protecting the country’s borders and promoting legitimate trade. State Department of Interior and Citizen Services Principal Secretary Karanja Kibicho said that this is a momentous step for Kenya – one that is going to have a big impact on how one travels, invest in security measures and conducts business with neighbours and other countries globally. Kibicho said that these up-to-date, policy-backed, innovative and technology-centered standard operating procedures will guide in the coordination of operations and information and resource-sharing among border agencies.
In a speech read on his behalf by Nairobi Regional Commissioner Kang’ethe Thuku at a Nairobi hotel on Tuesday during the launch, Kibicho said that since the inception of coordinated border management, border officials have been conducting joint operations without a comprehensive guiding tool and to remedy this situation, a guide with modern and innovative means of border management had to be developed.
How Kenya polls could slow cargo, trade flows (Business Daily)
In 2020, the Covid-19 pandemic and subsequent geographical lockdowns significantly slowed logistics activities. Investments in international trade dropped substantially. Barely two years later, Kenya’s logistics industry is again on the brink of negative fallout from the upcoming General Election. Time has, on more than one occasion, proven that the heat from political campaigns affects the flow of goods. The worry amongst the business community stems from the negative impact Kenya’s 2007/2008 post-election violence had on the economy.
Currently, the Port of Mombasa is experiencing a slowdown in transit volumes ahead of the August 9 elections. It has also been noted that there is an increase in shipments destined for the Great Lakes region that would usually go through Mombasa Port, being diverted to the Dar es Salaam Port in Tanzania.
Many industries take a cautious stand on operations as they wait for “things to play out” before making serious investments. On the other hand, investors hold on to their cash before making a serious commitment, and neighbouring countries redirect their cargo to other ports for fear of cargo delays or disruptions. Slow economic activity and election campaign activities also lead to a reduction in lending activity by banks. Since they are usually the hardest hit in terms of risk, lending institutions limit the amount of credit they give to investors and companies such as cargo traders, affecting the operational efficiency of many depending on such sources for capital flow.
Kenya tracks Nigeria dirty cash, seizes Sh15 billion (Business Daily)
When Nigerian Mauzu Bala landed at the Jomo Kenyatta International Airport in December 2020 carrying a bag full of undeclared money, the man who claimed to be an agent for a Dubai jeweller did not anticipate a long court fight. Mr Mauzu landed carrying $880,000 (Sh100 million), 60,000 Euros (Sh7.74 million) and 63,000 Naira (Sh17,010) in his handbag. The Nigerian had jetted into the country on a Kenya Airways flight from Lagos and was waiting for a connecting flight to Dubai. The funds were swiftly confiscated after the Assets Recovery Agency (ARA) suspected them to be part of a money laundering scheme on its radar. Since then, State agencies have shone more spotlight on Nigeria, seizing about Sh15 billion from individuals and companies from the West African nation.
The bulk of the money is suspected to be from card fraud or remittance done by payment service providers at a time Kenyan authorities are cranking up the fight against money launderers who have turned Nairobi into their playground.
A report by the Sentry titled Kenya Illicit Finance Risks and Assessment has listed domestic corruption, terrorist financing, environmental crimes, illegal trafficking, tax evasion, and the misuse of digital finance such as mobile banking and cryptocurrency as some of the risks the country faces.
Exporters urged to exploit benefits of Walvis Bay (The Herald)
LOCAL exporters should utilise the Walvis Bay Dry Port in Namibia to enjoy economies of scale presented by that route as trade under the African Continental Free Trade Area (AfCFTA) grows, an official said yesterday. The AfCFTA, to which Zimbabwe is signatory was operationalised on January 1, 2021, making historic strides towards continental economic integration. Zimbabwe has deposited its instrument of ratification expected to pave the way for the country’s full participation in the estimated US$3,4 trillion trading bloc and continent wide market of about 1,3 billion people. In an interview, Shipping and Freight Forwarders Association of Zimbabwe (SFFAZ) chief executive officer Joseph Musariri said in light of the AfCFTA, Zimbabwean exporters need to tap into the opportunities being presented by the Walvis Bay Dry Port, which the Government has established.
Nigeria’s Economy Reaps Benefits of Real-Time, Digital Banking Transformation – $6 billion of Additional GDP Growth Forecast by 2026 (TechEconomy.ng)
Nigeria’s real-time and digital payments revolution is driving economic growth and financial inclusion at unprecedented levels for the largest African economy, according to the 3rd edition of Prime Time for Real-Time, published by ACI Worldwide, in partnership with GlobalData, a leading data and analytics company, and the Centre for Economics and Business Research (Cebr).
The report – tracking real-time payments volumes and growth across 53 countries – includes an economic impact study for the first time, providing a comprehensive view of the economic benefits of real-time payments for consumers, businesses, and the broader economy across 30 countries.
The report reveals Nigeria as Africa’s undisputed real-time and digital payments leader. The country recorded 3.7 billion real-time transactions 2021 – ranking 6th in the league table of the world’s most developed real-time payments markets – behind India, China, Thailand, Brazil, and South Korea.
In 2026 real-time transactions are forecast to rise 8.8 billion in 2026, a 5-year CAGR of 18.6%. This will help unlock $US 6 billion of additional GDP in 2026, representing 1.01% of the country’s GDP.
“Nigeria is fast becoming a posterchild across Africa for the successful digital transformation of the country’s economy,” Santhosh Rao, Head of Middle East, Africa, and South Asia, ACI Worldwide. “Accelerated by the Covid-19 pandemic, Nigerians increasingly expect higher speeds, greater simplicity, and modern thinking from financial service providers. While cash is still being used widely, the shift towards greater adoption of digital and real-time payments services is testament to the success of government regulators in fostering rapid growth in digital openness, particularly payments.”
Nigeria Must Maximise WTO Fisheries Subsidies, Agreements — Okonjo-Iweala (Leadership News)
The director-general of the World Trade Organisation (WTO), Dr Ngozi Okonjo-Iweala, yesterday urged Nigeria to step up efforts to leverage on the new WTO Agreements on Fisheries Subsidies and IP waiver on local vaccine production. Okonjo-Iweala said the revised agreement for new global rules is now tailored to curb harmful fishing subsidies and curtail post-harvest losses and a country like Nigeria and other African countries will greatly benefit from it.
WTO members had successfully concluded the 12th Ministerial Conference (MC12) in Geneva on 17 June, securing multilaterally negotiated outcomes on a series of key trade initiatives.
The WTO DG, who was received by the minister of state for industry, trade and investment, Amb Maryam Katagum, at the ministry’s headquarters in Abuja, said she was cautiously optimistic that agreements on issues such as a limited IP waiver for COVID vaccines as well as a decision to curb harmful fisheries subsidies that allow big industrial rigs to plunder the oceans – depleting global fish stocks and harming food security for billions of people, would be fully implemented by member states including Nigeria.
Dr Okonjo-Iweala also canvassed support from local manufacturers to guard against imports of vaccines and other pharmaceutical products. She encouraged the country to strengthen trade ties with other African neighbours with a focus on fisheries subsidies and local vaccine production and maximizing the benefits of the African Continental Free Trade Agreement (AfCFTA). On her part, Amb Maryam Katagum, said the Agreement holds great benefit for Nigeria as it will enhance food security and increase source of livelihood particularly, for lower income families in rural and coastal areas, more so, as it protects global fish stocks in a manner that also recognises the needs of fishers in developing and least-developed countries (LDCs).
Ghana, Burkina Faso to promote trade and commerce (News Ghana)
Ghana and Burkina Faso, through their respective Chambers of Commerce and Industry, seek to promote trade and commerce through exhibition of products in Accra. The five-day event, scheduled for September 27 to October 2, 2022, will focus on creating a platform and opportunities for Small and Medium Enterprises (SMEs) and Small and Medium Industries (SMIs) of both countries. The event would not only showcase Burkinabe products but bring together government officials, investors, private sector players to create conditions for a harmonious integration of Burkina Faso economy and vice versa with special attention on tourism and culture, commerce, and economic sectors.
This was said during the launch of Ghana National Chamber of Commerce and Industry (GNCCI) and Burkina Faso Trade Fair on the theme: “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 (ACFTA).”
Gov’t Embarks on Export Promotion to Spur Growth in Manufacturing Sector (SoftPower News)
Government is focusing on promoting exportation and more of import substitution in order to support and spur growth in the Manufacturing sector. According to the Minister of State for Trade, Industry and Cooperatives, David Bahati, government is encouraging import substitution and increase of exports. He said the manufacturing sector is key to the development of Uganda’s economy. Bahati revealed that the industrialisation sector contributes 27.4% of the GDP, and manufacturing alone contributes 16.4%.
Surging prices double Tunisia’s food trade deficit in first half (Reuters)
Tunisia’s food trade deficit doubled to 1.559 billion dinars ($496.99 million) due to the higher cost of imports of cereals and sugar in the first half of the year compared to the same period last year, the state Agricultural Observatory said on Tuesday. The food trade deficit was 806 million dinars in the first half last year. Tunisia’s total trade deficit widened by 56 % to $3.66 billion in the first half of 2022 , the state Institute of Statistics said this month.
Morocco calls for leveraging more private funds in African infrastructure (The North Africa Post)
Morocco reiterated its call for the setting up of a new African investment model that leverages capital from private and institutional investors to make up for a drop in public investments on the back of the successive crises. Speaking at an event by Africa50, an infrastructure investment platform operating under the umbrella of the African Development Bank (AfDB), Morocco’s finance minister Nadia Fettah Alaoui said private funds are needed to finance African infrastructure projects more than ever, especially in the current context where fiscal responses have been undermined by the response to Covid and inflationary pressures.
The Moroccan minister called for more intra-African solidarity and recalled Morocco’s investment effort in Africa in the sectors of banks, insurance, telecoms, construction, energy and agriculture. “This cooperation is set to be strengthened with the launch of the African Continental Free Trade Area,” she said. Echoing her, AfDB President and head of Africa50 Akinwumi Ayodeji Adesina said Africa needs private funds to meet infrastructure investments financing needs estimated at between 68 billion and 108 billion dollars.
African trade and integration
African Union Unveils Digital AfCFTA & Vaccination Platforms at 2022 “Boma” (AU)
The Deputy Chairperson of the African Union, H.E. Monique Nsanzabaganwa, opened the Boma of Africa event on 8th July 2022 to crown the activities marking this year’s Africa Integration Day. The theme of the Boma this year was, aptly, “Taking Stock of the African Century”, reflecting increasing interest in the belief that Africa’s rise in the 21st century as envisaged under Agenda 2063 will be globally definitive. The 2022 Boma was convened jointly by the African Union and AfroChampions.
Reflecting the balance between deliberation and action, the Boma was segmented into three parts. Two parts focused on the launch of major practical initiatives driving integration on the continent: a Common Vaccine Passport (www.africacdc.org/trusted-vaccines) embedded in continental eHealth Backbone (www.panabios.org) and a platform for the AfCFTA Digital Trading Corridor (www.afcfta.app).
The results of a consultative process ahead of the launch of the AfCFTA Hub digital trading ecosystem platform by the AfCFTA Secretariat were presented in the forms of video showing strong support from major logistics companies such as RwandAir, Kenya Airways, Ethiopian Airlines and Asky. Continental retail and distribution companies like MaxMart, Melcom, Walmart Africa and Naivas were also successfully engaged. On the digital, financial services, and fintech fronts, companies that participated in the launch of the AfCFTA Hub included M-Pesa, PAPSS, Vodacom, Orange, WebbFontaine, Scanning Systems, and Standard Bank. Input into the development finance prospects came from the African Development Bank (AfDB).
AfCFTA’s success hinges on frictionless online trading environment (ITWeb)
The African Continental Free Trade Area (AfCFTA) is expected to uplift e-commerce and digital payments in Africa. However, its success will largely hinge on governments stepping up their policies and frameworks to build a safe and frictionless digital trading ecosystem. After six years of planning, strategy and coordination, the AfCFTA became effective on 1 January 2021. Now just 18 months since its inception, payments ecosystem players believe creating a conducive regulatory environment is the next critical hurdle – and probably the most difficult part of its implementation.
Emmanuel Khisa, project manager of Smart Africa, tells ITWeb that while the organisation recognises that online selling would be a driving force of the AfCFTA, it also acknowledges the myriad of challenges faced by e-commerce and cross-border payments players on the continent.
“Cross-border payments and the volatility of national currencies is one of the main challenges. E-merchants also face antiquated customs procedures, with long delays at borders; bad transport infrastructure for deliveries, which excludes most rural areas; national non-tariff barriers that discriminate against foreign firms (like tax regulations which distinguish between local firms and importers); the ‘digital divide’ which prevents many citizens from accessing the internet,” explains Khisa.
According to Khisa, new laws and policies introduced by governments should seek to bring together the national central banks, and envision the collaboration of private banks and switching systems, as well as e-commerce initiatives.
Do central bank digital currencies have a future in Africa? (African Business)
Countries across Africa are looking to use central bank digital currencies (CBDCs) to overcome infrastructural problems affecting the banking sector. And far from being motivated by a desire to take advantage of cryptocurrencies as a ‘hyper-capitalistic technology’ in the manner of millions of enthusiasts at the start of the decade, their object is to promote financial inclusion. By using the technology behind cryptocurrencies they aim to boost bring financial services to the hundreds of millions of Africans without bank accounts, facilitate domestic and cross-border payments and increase trade.
The CBDC model will be very advantageous for Africa because it allows anybody to trade, it doesn’t need an internet connection, financial policies can be implemented much quicker, taxation and accountancy are simplified and, most importantly, in CBDCs there are no fees of transfer,” says Richard Dennis, CEO of TemTum Group, a blockchain provider, whose company advises central banks in Africa on how to implement the CBDC model.
Africa needs more private funds for infrastructure investments - Africa50 CEO (Reuters)
African countries need to leverage more private funds to meet infrastructure financing needs estimated at between $68 billion and $108 billion annually, the chief executive of Africa50, an infrastructure investment offshoot of the African Development Bank, said on Tuesday in Marrakech. Leveraging more private capital to finance infrastructure projects, as part of public-private partnerships, would help free public funds to projects shunned by the private sector, CEO Alain Ebobissé said on the eve of the launch of a U.S- Africa business summit. The U.S. Trade and Development Agency (USTDA) had planned $26 million last year to fund feasibility studies of African investment projects with a potential to generate $17 billion in financing, the agency’s director, Enoh Ebong, told Reuters.
US-Africa Business Summit in Marrakech: four questions to the CEO of Corporate Council on Africa (MAP)
The 14th edition of the US-Africa Business Summit kicks off on Tuesday in Marrakech, at the initiative of the “Corporate Council on Africa” (CCA), under the theme “building the future together”.
In an extensive interview with the Moroccan News Agency (MAP) in Washington, she talked about the main topics and objectives of the summit, its significant after two years of the pandemic and in a context of increased geopolitical tension and risks of economic fragmentation with important impact on Africa, and the role of private sector and the need of more robust public-private partnership to ensure sustainable and inclusive growth. Ms. Liser is the first woman to lead the Council since its founding in 1993. She brings to her role a strong track record of working with the private sector to translate policy into action. Before her current role, she was the Assistant U.S. Trade Representative for Africa since 2003.
Collaboration between governments and the private sector is critical to Africa and the U.S. building forward together around strategic sectors and effectively addressing a range of global challenges. For example, the U.S. government and private sector worked collaboratively with African nations and private sector partners to meet the unprecedented challenges caused by the COVID-19 pandemic. Ensuring more equitable vaccine access has been a key first step that has offered businesses in sectors ranging from health to ICT a unique opportunity to work together to meet Africa’s public health needs.
Cargo charters: Is the future promising for Africa? (Logistics Update Africa)
Africa’s air cargo market, like those in other geographies, has spent the last few years navigating through extreme turbulence caused by Covid-19, with limited and fluctuating capacity affecting the efficient movement of cargo to, from, and within the region and posing unique challenges for certain key trade lanes, commodity verticals, and market stakeholders.
As the cargo chartering industry is recovering from the pandemic, the air cargo business is expected to grow and demand to climb. The cargo chartering sector aims at expanding its footprint by growing its cargo team in African countries with new offices and cargo charter brokers.
African airlines stare at $4b loss over costly fuel (The East African)
African airlines are expected to record $4.1 billion loss this year on the back of expensive fuel that is eroding the gains made by a recovering business. Africa Airlines Association (AFRAA) says expensive jet fuel and other expenses involved in running the airlines will weigh down on the profits.
“Full-year revenue loss for African airlines for 2022 is estimated at $4.1bn, equivalent to 23.4 percent of the 2019 revenues,” said AFRAA. International Air Transport Association (IATA) had earlier warned that rising jet fuel prices were likely to cause airfares to increase this year, as airlines grapple with higher operating costs. “We have had to adjust our fares because of expensive fuel that has increased our operation cost,” said Jambojet chief executive officer Ndegwa Karanja.
African Union urges farmers to boost food production (DW)
Food security dominated the agenda at the 41st Ordinary Session of the Executive Council of the African Union in Zambia’s capital Lusaka. The summit’s theme of ”Building Resilience in Nutrition on the African Continent” highlighted the ongoing food challenges that have gripped Africa. A combination of several factors, including a three-year drought in the Horn of Africa, the 2020 locust swarms, Ethiopia’s Tigray conflict, the economic effects of the COVID pandemic, and the war in Ukraine, are all piling on pressure on Africa’s food systems. According to the UN, 278 million people in Africa lacked access to adequate food in 2021 — before Russia invaded Ukraine.
Ambassador Josefa Sacko, AU commissioner for agriculture reminded delegates of the impacts of Russia’s war in Ukraine, involving two of the biggest global producers of staple cereals, oil, and fertilizer. “We know that our continent is really dependant on imports, which we, as the African Union, if this is the agenda we want, we have all the advantage to produce, ourselves and we should stop all this importing [of] food from outside.”
The African Development Bank Group’s Board of Directors has approved 24, fast-track programs to help Africa mitigate rising food prices and inflation caused by Russia’s war in Ukraine, climate change and the Covid-19 pandemic. The first round of approvals is part of the Bank’s $1.5 billion African Emergency Food Production Facility, established in May to boost food security, nutrition, and resilience across the continent. The facility will provide 20 million African smallholder farmers with certified seeds and increased access to agricultural fertilizers. It will also support governance and policy reform, which is expected to encourage greater investment in Africa’s agricultural sector. The African Emergency Food Production Facility will enable African farmers to produce 38 million additional tons of food over the next two years. This is food worth an estimated $12 billion.
EU commits to assist Africa to achieve food security (SAnews)
President Cyril Ramaphosa has welcomed European Union (EU) Council President, Charles Michel’s pledge that commits the European Union to supporting Africa’s efforts to achieving food security. The pledge will also help to decrease the continent’s dependence on agricultural inputs that are exported from elsewhere in the world. “In this regard a joint project plan was agreed to assist Africa in developing its own fertiliser production capacity. The commitment follows positive reception to President Ramaphosa’s proposal to the G7 countries at the recent G7 summit hosted in Germany, that Africa be enabled to invest in developing its fertiliser to deal with food insecurity,” the Presidency said in a statement.
The South Africa-European Union (EU) Strategic Partnership functions within the framework of the Trade, Development and Cooperation Agreement (TDCA), which was ratified in 2004. The Presidency said that the EU is South Africa’s largest trading partner as a bloc. “Since the adoption of the Trade, Development and Co-operation Agreement (TDCA), total trade increased from R150 billion in 2000 to R843 billion in 2021. Exports to the EU increased steadily over the years, growing from R64 billion back in 2000 to R482 billion in 2021. “During the same period, imports from the EU also increased from R86 billion in 2000 to R361 billion in 2021,” the Presidency said.
Climate Change Experts Give Final Nod to Resilience Plan; Share Best Practices on Adaptation (COMESA)
The COMESA Regional Resilience Implementation Plan and Resource Mobilization Strategy is nearing completion following final review by experts in climate change, resilience, disaster risk reduction and management, drawn from 14 Member States, Regional Economic Communities (RECs) and the African Union Commission. At the same time, country focal points for the Nationally Determined Contributions (NDCs) from these Member States and organizations met and shared best practices in implementing the Paris Agreement on climate change and the pledges their countries made to reduce greenhouse gas emissions.
The financing for NDC implementation, opportunities and challenges in scaling up was one of the main subjects in focus. This meeting was part of ongoing COMESA support to the Member States to implement their NDC commitments and contribute to the attainment of the Paris Agreement goals.
Zambia’s Acting Permanent Secretary in the Ministry of Green Economy and Environment Mr Ephraim Shitima, who addressed the meeting urged the member States to review the implementation status of NDCs and recommend policies to improve it. “The opportunities for NDC implementation outweigh the challenges, therefore we need to utilize all the available opportunities on finance, technology transfer, capacity building and to achieve the setout targets,” he said.
Africa needs to promote its ‘blue economy’ (China Daily)
In Africa, the “blue economy”-the sustainable use of ocean and coastal resources to improve livelihoods and employment-is one of the most untapped sources for fueling economic growth and development. Yet 64 percent of the continent is covered by freshwater bodies and ocean ecosystems, and 38 out of the 55 African Union member states are coastal or island states, according to the AU Commission. On the other hand, some of these African countries with access to freshwater bodies such as rivers and lakes are on the verge of experiencing humanitarian catastrophe emanating from climate change-related issues such as famine.
Identifying opportunities in green business for UK-Africa trade and investment (GOV.UK)
Africa is one of the most vulnerable regions to the impacts of climate change (African Development Bank Group, COP 25, December 2019) despite having relatively low contributions to global emissions. It faces huge collateral damage posing substantial risks to its economies, food systems, and livelihoods. Important challenges that African countries face from climate change include: the impact on food security and livelihoods from reduced agricultural production and productivity the limited access to capital, technology and skills for economic adaptation and transition limited governance and institutional capacity to deal with conflict over scarce resources and displacements arising from extreme climate events While these challenges are severe, African countries have an opportunity to be an important part of the solution to the climate change challenge and contribute towards global Net Zero. This can be through unlocking the potential of renewable energy, climate smart agriculture and smart manufacturing, for instance. The UK, as a leading provider of green products and services, is in a strong position to help Africa seize the opportunity to build sustainable, green, inclusive and resilient businesses to drive the transition, which has become increasingly important in the context of climate change.
Global economy
Unsafe products exact a high price on consumers globally (UNCTAD)
Billions of people face the greatest cost-of-living crisis in a generation due to rising food and energy prices amid tighter financial conditions. Vulnerable consumers are in a dire situation. UNCTAD’s analysis shows that a 10% increase in food prices will trigger a 5% decrease in the incomes of the poorest families, equivalent to their health expenditure. As consumers try to reduce their spending, they will pay a high price if they buy unsafe products. The United States reports 43,000 deaths and 40 million injuries per year associated with consumer products, with yearly costs of over $3,000 per capita. “Governments must strive to continue and succeed in their long-term mission of protecting their consumers, a mission of renewed relevance today,” said UNCTAD Secretary General Rebeca Grynspan at the organization’s intergovernmental meeting on consumer protection held on 18 and 19 July.
Keeping consumers safe is a top priority for governments around the world. UNCTAD research shows that general safety requirements and liability regimes embedded in laws, along with standards, are the cornerstones of consumer product safety frameworks around the world.
It’s time for public-private partnerships to drive digital trade in the most vulnerable nations (Trade for Development News)
COVID-19 accelerated digitization, digital entrepreneurship, and businesses’ adoption of digital technologies even in poor developing nations. This digitization in LDCs happened in parallel with global technology companies displaying interest to go beyond larger emerging markets and promote digital trade and foreign direct investments (FDI) in the poorest nations.
Public and private sectors bring together complementary assets and capabilities to promote digital trade: development agencies have relationships with governments and experience in and resources for addressing the proverbial last mile (such as with underserved segments and rural areas), while the private sector has technologies, capabilities, and first-hand expertise on business models that accelerate development impacts.
How to then optimize and focalize PPPs to serve the needs of LDCs? Here are seven ideas.
Members share experiences on measures adopted to ease trade in COVID-19 essential goods (WTO)
Presentations highlighted concrete trade measures taken in the context of the pandemic in order to ease the importation and supply of certain medical and hygiene goods central to the COVID-19 response, such as suspension of domestic duties, tariff concessions, simplification of customs procedures at ports and airports, and relaxation of import regulations and standards. Members explained the choices underpinning these measures as well as their duration and impact. They agreed on the importance of adopting a flexible and non-prescriptive approach to the definition of goods that could have an impact on COVID-19 recovery.
Key UN forum closes with ‘enthusiasm, passion and high-energy’ to reach the SDGs (UN News)
“We have advanced the substantive programme of the [Economic and Social] Council (ECOSOC) and initiated concrete foundational action to implement the decisions of the General Assembly” in resolutions on strengthening the HLPF and ECOSOC, said the body’s president, Collen Kelapile.
Although the COVID pandemic continues, “we are moving on in the road to recovery and…looking far ahead, beyond today’s daunting challenges and crises,” he said. Reversing the pandemic’s negative impacts on the likelihood of reaching the ambitious SDGs; transforming socio-economic and financial systems; addressing the ripple effects of the war in Ukraine on food security and energy supply; and halting climate change, pollution and biodiversity loss, are “a calling we must work much harder to achieve,” the ECOSOC president added.
The ECOSOC President spoke about the need to bridge the financing gap by reforming international debt and taxation architecture.
Nations implored to implement Sustainable Development Goals (SAnews)
Minister in the Presidency, Mondli Gungubele, has appealed to nations to urgently adhere to the agreed international commitments to guarantee food security and limit global warming to 1.5°C as outlined by the Sustainable Development Goals (SDGs). The SDGs are the blueprint to achieve a better and more sustainable future for all. They address the global challenges including poverty, inequality, climate change, environmental degradation, peace and justice. Addressing the United Nations General Assembly Hall during the commemorations of International Nelson Mandela Day, he noted that the number of people going hungry is on the rise, a situation exacerbated by skyrocketing food prices, even for the most basic of goods such as sugar, vegetable oils, dairy products, wheat, and cereals.
The United Nations Development Programme (UNDP), in partnership with India’s State Government of Telangana, announced Data in Climate Resilient Agriculture (DiCRA) as the latest addition to the Digital Public Goods Registry. Powered by Artificial Intelligence, the platform is geared towards strengthening food systems and food security. The impact of climate change on agriculture is multifold, affecting crop yield, nutritional quality and livestock productivity. Using remote sensing and pattern detection algorithms, DiCRA is able to identify farms that are resilient to climate change and those that are highly vulnerable. In particular, it harnesses open-source technologies to facilitate analysis and insights sharing on climate resilience, based on empirical inputs crowdsourced from hundreds of data scientists and citizen scientists on best performing farms.
As co-host of the Digital Public Good Alliance, UNDP is accelerating efforts to surface new technological frameworks required to drive climate adaptation and mitigation to achieve the goals outlined in the Paris Agreement on climate change. DiCRA now joins more than 100 digital solutions that adhere to privacy and other applicable laws and best practices to help attain the Sustainable Development Goals (SDGs).
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Local news
Key Renewable Energy Market Drivers in South Africa in 2022 (Energy Capital & Power)
The need to transition to cleaner sources of fuel in South Africa is made more paramount with the ongoing energy crisis.
With load shedding significantly impacting South Africa’s economy, a target set by the government to deploy 11.8 GW of large-scale renewable energy capacity by 2030 is driving market interest for investors, independent power producers (IPP) and international energy companies.
Ghana confirms its first outbreak of highly infectious Marburg virus (Reuters)
Ghana has officially confirmed two cases of the Marburg virus, a highly infectious disease similar to Ebola, its health service said on Sunday, after two people who later died tested positive for the virus earlier this month.
"(Ghanaian) health authorities have responded swiftly, getting a head start preparing for a possible outbreak. This is good because without immediate and decisive action, Marburg can easily get out of hand," said Matshidiso Moeti, WHO Regional Director for Africa.
The two patients in southern Ghana's Ashanti region both had symptoms including diarrhoea, fever, nausea and vomiting, before dying in hospital, the WHO said.
Kenya: UN expert hails historic reparations ruling in favour of indigenous peoples (UN News)
An independent UN human rights expert on Monday hailed a decision by the African Court on Human and People’s Rights, to award reparations to the Ogiek indigenous peoples, for harm that they suffered due to “injustices and discrimination.”
The historic ruling follows a landmark judgment delivered by the Court on 26 May 2017, finding that the Government of Kenya had violated the right to life, property, natural resources, development, religion and culture of the Ogiek, under the African Charter on Human and Peoples’ Rights.
Creecy criticises lack of climate finance progress since COP26 (Engineering News)
South Africa’s environment Minister Barbara Creecy has criticised the lack of progress, since COP26, in the area of climate finance support for developing countries, arguing that there has been a failure to promote “adequate ambition”.
Quoting the United Nations Framework Convention on Climate Change standing committee on finance, Creecy highlighted that developing countries needed between $5- and $11-trillion to meet their climate objectives. However, an Organisation for Economic Cooperation and Development report shows that only about $80-billion has been mobilised.
“The only way we can re-establish credibility in financial provision is to set a realistic goal for developed countries to mobilise at least $1-trillion per annum to assist developing countries meet their climate change objectives,” Creecy said at the dialogue, which is being held as part of preparations for the COP27 talks, scheduled for Sharm El-Sheikh, Egypt, in November.
'Why Nigeria must design export strategy to harness AfCFTA' (Guardian Nigeria)
Speaking in Abuja at a five-day training programme aimed at equipping participants with relevant knowledge, tools and skills required to develop their export business in line with global best practices and in tandem with the AFCFTA, Ojadi explained that the absence of clear-cut guidelines on exports may hinder Nigeria from benefitting maximally from the trade deal when it takes operational.
Nigeria must design to strategy spell out the processes that guide products that are meant for export, a faculty member of the Lagos Business School (LBS), Dr Frank Ojadi has said.
“I was examining the coastal shipping which ought to boost the African Continental Free Trade Area (AfCFTA) and I discovered that high costs in our ports and shipping are contributing to our not being competitive enough to export products. I think that coastal shipping will help in properly placing Nigeria to reap bountifully from the AfCFTA. Infrastructural deficits that are associated with shipping will affect trade going to different parts of the world from Nigeria.”
AfDB Board Approves $134 Million Loan to Boost Local Food Production (Farmers Review Africa)
The Board of Directors of the African Development Bank Group, on Friday approved a $134 million loan for the National Agriculture Growth Scheme – Agro Pocket program in Nigeria to scale up food production and boost livelihood resilience.
The program aligns with the Bank’s African Emergency Food Production Facility and will support Nigeria’s efforts to mitigate the impacts of the war in Ukraine.
NEPC, SMEDAN seal deal to boost visibility of Nigerian goods in West Africa (Businessday)
“Considering the current economic reality of the country occasioned by dwindling price of oil in the global market, there is no auspicious time than now to aggressively promote the non-oil sector more as a way of salvaging our nation’s ailing economy,” Yakusak said.
The Nigerian Export Promotion Council (NEPC) and the Small and Medium Enterprises Development Agency (SMEDAN) have signed a Memorandum of Understanding (MOU) to facilitate the first West African MSME (WAMSME) Export Opportunities Exhibition. Ezra Yakusak, executive director/CEO of NEPC, said described the MoU as a strategic collaboration aimed at enhancing the visibility of Made-in-Nigeria goods and services within West Africa and the rest of the market.
Somalia president intensifies diplomatic trips in the Horn of Africa (Garowe Online)
President Hassan Sheikh Mohamud has already visited Kenya and Eritrea as he solidifies ties within East Africa and the Horn of Africa.
Somali President Hassan Sheikh Mohamud intensified his diplomatic trips in the Horn of Africa just a few months after he took the oath of office, following severed ties in the region by his successor Mohamed Abdullahi Mohamed better known as Farmajo.
On Sunday, Hassan Sheikh Mohamud visited Djibouti, one of the troops contributing nations in the right against Al-Shabaab. Currently, Djibouti has more than 2000 soldiers who are helping Somalia to counter violent extremism according to UN statistics.
African trade and integration
Preparations in high gear for the High-level EAC Heads of State Retreat on the EAC Common Market and 22nd Ordinary Summit of the EAC Heads of State (East African Community)
Preparations are in high gear for the EAC Heads of State Retreat on the EAC Common Market and the 22nd Ordinary Summit of the EAC Heads of State scheduled for 21st and 22nd July, 2022 respectively at the Arusha International Conference Centre, in Arusha, Tanzania.
About 300 participants from Partner States, private sector, civil society and development partners are expected to attend both the High Level Retreat and the 22nd Summit.
During their High Level Retreat on the Common Market, the Heads of State are expected to, among other things: take stock of the progress of implementation of the EAC Common Market Protocol; adopt strategic measures to unlock the lags and bottlenecks in establishment of the Common Market; agree on a roadmap for the full realization of the Common Market, and; identify key areas where Development Partners can contribute to the attainment of the Common Market.
The United Nations Economic Commission for Africa (ECA) and the World Bank co-organized on July 19, 2022, a virtual workshop on the development of the Green, Social and Sustainable (GSS) sovereign bond market in Africa.
Innovative financing solutions are needed for countries across Africa to achieve their ambitious climate investment goals and meet the Paris Agreement commitments. In the context of prudent debt management, GSS bonds can constitute a central part of the financing strategy for sovereigns and subnational entities to fund both mitigation and adaptation investments.
Hanan Morsy, ECA's Deputy Executive Secretary, said, "ahead of this year's COP27 held in Egypt, Africa faces a mixed landscape for achieving climate ambitions and NDCs. We urgently need the 100 billion USD per annum promise to be realized, while we need a new financing target which will mobilize the trillions needed. GSS bonds play a critical role in tapping into resources at the international capital markets to unleash the potential of the green and blue economy in Africa. ECA is supporting member states under various initiatives, such as the Great Blue Wall, the Liquidity and Sustainability Facility, and debt-for-nature swaps, to graduate from the aid dependencies by leveraging market-based innovative finance instruments.
Scaling-up the private sector participation in North Africa (UNECA)
The ECA Office for North Africa will hold on 20-22 July in Tangier (Morocco) a hybrid workshop under the theme: “Scaling-up the private sector participation in North Africa”.
This event will be an opportunity for officials from North African Ministries of finance, Planning & Economic development, private sector, academia and development institution representatives to share their understanding of challenges experienced by the private sector across North Africa, discuss good practices and innovative solutions and draw the outlines of a roadmap to accelerate private sector contributions to national economies.
West Africa's Top Options for Scalable Power Generation (Energy Capital & Power)
West Africa is the largest growing human population in the world and yet every one of its nations is targeting universal electrification in the medium-term. Production must meet and surpass demand for economic growth from energy exports, but for an equitable transition to be achieved, this means matching investments into gas alongside solar and wind power.
Opportunities within the power generation space, in particular, will be largely driven by the exploitation of low-carbon energy sources, and as such, the upcoming MSGBC Oil, Gas & Power conference – opened by H.E. Macky Sall, Senegalese President and current African Union Chairperson – will offer critical insight into these opportunities.
Through a roundtable forum under the theme, “Financing Electrification within the Energy Transition,” the conference will explore the strategic role played by each of these low-carbon energy sources in improving power generation capacity, formulating a robust west African energy transition narrative ahead of COP 27 this year in Egypt.
African Economic Conference invites researchers to submit papers for 2022 edition (UNECA)
The organizers of the African Economic Conference have issued a call for research and policy papers that focus on the event’s theme: Supporting Climate-Smart Development in Africa.
This year’s conference will be held from December 9–11 in Port Louis, Mauritius. As has been the practice over the years, it will be hosted by the African Development Bank, the Economic Commission for Africa, and the United Nations Development Program.
The call for papers is underpinned by the need to address Africa's vulnerability to climate change through innovative solutions and accelerate investments through green growth strategies.
AfCFTA: Afreximbank backs GAIN to train youths on entrepreneurship (Daily Sun)
The African Export-Import Bank (Afreximbank) has announced a grant for Grand Africa Initiative (GAIN) a pan-African non-governmental organisation enabling African youths through training, empowerment, mentorship, and advocacy, to train 200 young Africans on entrepreneurship and intra-African trade for a three-month period starting July 2022.
Executive Director of GAIN, Chinwe Okoli, in a statement, on Monday, confirmed that faculty of experts from around the world have been arranged to provide technical advisory and financial lessons to the successful applicants that would participate in the training.
“The programme will also broaden inclusiveness in the implementation of the AfCFTA through interventions that support young Africans, women, and small and medium-sized enterprises.
Supporting post-COVID-19 recovery among African cross-border traders (UNCTAD)
UNCTAD conducted nine six-day training sessions as part of a UN multi-agency project entitled “Global initiative towards post-COVID-19 resurgence of the micro, small and medium-sized enterprise (MSME) sector”.
The project was aimed at rebuilding livelihoods and mitigating the impacts of the pandemic.
The training programme entailed dissemination of traders' guides, content on COVID-19 control measures and sessions on strategies for making businesses more resilient.
Tripartite Framework win Accolades at the AU Mid-Year Summit (COMESA)
The Tripartite Free Trade Area Agreement that brings together COMESA, East African Community (EAC) and the Southern African Development Community (SADC) Tripartite Free Trade Area has been hailed as a good model for regional integration. This followed a presentation on the success of the Tripartite FTA at the just concluded African Union Mid Year- Summit held in Zambia, Sunday, July 17 2022.
Among the key highlights was TFTA’s tariff liberalization coverage which is now at 100% and takes into account general, specific and security exemptions provided for under the existing regional economic communities (REC)/ Regional and Multilateral agreements. Further, over 90% of the TFTA list of Rules of Origin have been agreed upon and what remains are the textiles and automobiles, and there is an established mechanism for managing the transition.
Africa: AfCFTA Secretariat Gets U.S.$11 Million Grant to Enhance Effective Implementation (Top Africa News)
The Board of Directors of the African Development Fund has approved an $11.02 million support package to the Permanent Secretariat of the African Continental Free Trade Area (AfCFTA).
"The funding is mainly aimed at strengthening AfCFTA institutions through technical assistance and capacity building. However, more support is required to fund private sector projects and member states' programs," Sebahizi said.
Studies and initiatives will be undertaken to identify new business and economic opportunities for women, to help develop the AfCFTA Women and Youth in Trade Protocol, and to support capacity building and targeted business skills for women.
Rights of migrants to dominate EUI-UCFR Conference in Kampala (pmldaily.com)
Experts from the African Union, Intergovernmental Authority on Development, East African Community and EUI alumni will on Wednesday July 20 meet at high-level event in Kampala discuss the main findings of the forthcoming report on Migration Governance and Migration Diplomacy in Uganda.
According to organizers, on 21-22 July, 25 African experts will participate in an EUI executive training about migration governance in Kampala.
AfCFTA And Equity Join Hands To Deepen Economic Integration (Soko Directory Team)
At the margins of the 41st Ordinary Session of the Executive Council of the African Union taking place in Lusaka, Zambia, the African Continental Free Trade Area (AfCFTA) Secretariat and Equity Group have signed a Memorandum of Understanding to deepen the economic integration of the African continent.
The two institutions will work on the private sector economic recovery and resilience stimulus plan, which Equity has seeded with a USD 6 Billion fund focusing on the primary sectors of food and agriculture, extractives, manufacturing and logistics, trade and investments, social impact, health, and environmental investments, as well as a technology-enabled economy to accelerate economic recovery and resilience of the African continent.
The partnership will among others, support the creation of 50 million jobs by 2025 and 5 million SMEs will receive loans to scale and grow, utilizing tools of the AfCFTA Agreement and create additional private sector lending with an envisaged loan book to be directed to agriculture (30%), manufacturing (15%), MSMEs (65%).
Africa: AU Launches Early Warning Platform to Tackle Insecurity (Top Africa News)
The Inter-Regional Knowledge Exchange on Early Warning and Conflict Prevention (I-RECKE) will play a crucial role in preventing conflicts on the continent and will also be tasked to detect and communicate threats to peace, AU Deputy Chairperson Monique Nsanzabaganwa said during the launch of the platform on the sidelines of the 41st Ordinary Session of the Executive Council.
The I-RECKE platform is expected to build resilience and stability on the continent and enhance information sharing among member countries, Nsanzabaganwa said, adding that member countries should invest in their own early warning systems due to the complexity of threats to peace.
AFR100 progress report launched (IPPmedia)
A digital monitoring tool developed by GIS experts to gauge progress has been unveiled. The online platform will be used to see what efforts are being registered in the ecosystem restoration on the entire African continent. AFR100 initiative aims to restore 100 million hectares of degraded forest and landscapes by 2030.
Speaking during the launch Mamadou Diakhite, Acting Head of Environmental Sustainability at the African Union Development Agency (AUDA-NEPAD said as African countries look for best pathways to build more durable, inclusive and resilient economies, the sixth AFR100 Annual Partnership Meeting provides a unique and timely opportunity to stress that our lives are built on healthy landscapes.
Africa: Gambia to Chair AU Peace & Security Council in August (Top Africa News)
The Republic of The Gambia will chair the African Union Peace Security Council (PSC) in August, according to report.
Under Articles 6 and 7 of the Protocol Relating to the Establishment of the PSC, this Policy Organ assumes the continental mandate to spearhead the implementation of the African Peace and Security Architecture (APSA) and the African Governance Architecture (AGA).
The Gambia will convene eight (8) Sessions principally focused on strengthening the nexus between democratic governance and sustainable peace, security and development. The PSC Sessions will be chaired by H.E. Ambassador Jainaba Jagne, Permanent Representative of the Republic of The Gambia to the African Union.
Terrorists kill 14500 people, displace 5.5m in ECOWAS (The Niche)
Terrorists have killed 14,500 people and displaced 5.5 million others in the Economic Community of West African States (ECOWAS) in the past four and a half years, says former ECOWAS Commission President Jean-Claude Brou.
“First of all, the deterioration of the security situation has caused havoc, not only in the Sahel area, affecting Mali, Burkina Faso, Niger and the North East of Nigeria, but it soon expanded to the coastal zone, hitting Côte d’Ivoire, Benin and Togo.
“Terrorist attacks and herds of bandits plunged these countries into mourning, with close to 14,500 dead in four and a half years, threatening the peace of rural population, and forcing people to seek shelter away from their home areas,” he said.
ECOWAS battling food crisis (BusinessGhana)
The Deputy Majority Leader in Ghana’s Parliament and a Member of the ECOWAS Parliament, Alexander Afenyo-Markin, has disclosed that member countries of the regional economic body are currently confronted with an unprecedented food crisis.
According to him, this has rendered about 17 million people in need of immediate assistance and an additional 51 million persons, including women and children, under pressure.
Mr. Afenyo-Markin said though ECOWAS has adopted pragmatic steps to tackle the challenge to the best of its ability, the 51 million inhabitants under food crisis pressure in the region could lapse into a crisis phase.
Global economy
UN and partners meet to address 'critical' state of global food crisis (UN News)
Scaling up climate resilience across food systems is among the actions needed to counter rising hunger and malnutrition, UN General Assembly President Abdulla Shahid said on Monday, at a special meeting to address the global food crisis.
Mr. Shahid said as countries implement more sustainable and environmentally responsible food-practices, they must also approach food security as part of a broader multilateral agenda that both recognizes the interconnectedness of today’s challenges, and the futility of trying to solve them unilaterally or in isolation.
Mr. Shahid also highlighted the need to prioritize food security in the world’s least developed countries, landlocked developing nations, and small island developing states, whose citizens “are typically forced to spend a larger share of their income on basic necessities, including food, and are thus disproportionately affected by rising food prices.”
UN publishes new guidance on curbing child abduction and other ‘grave violations’ in war (UN News)
The UN’s top official advocating for children caught up in armed conflict issued new guidance on Monday designed to help expert staff on the ground protect children who are abducted, or who suffer other grave violations.
There are six grave violations identified by the UN which serve as the basis for gathering data and reporting, namely the killing and maiming of children; recruitment or use of child soldiers; sexual violence against children; abduction; attacks against schools or hospitals, and finally, denial of humanitarian access.
The guidance can “help inform the understanding of the grave violation”, as well as provide advocacy tools that can be used as part of efforts to end and prevent the abduction of children by parties to conflict.
India and Africa to explore opportunities in defence, maritime security and more at two day conclave (The Financial Express)
India is hosting a Conclave on India-Africa Growth Partnership in New Delhi under the aegis of Ministry of External Affairs and Ministry of Commerce and Industry.
During the two days meeting which comes amidst the ongoing Russia-Ukraine war, both sides will explore ways of further strengthening bilateral ties as well as discuss emerging economic opportunities as African Continental Free Trade Area (AfCFTA) gains ground.
Besides bilateral and regional discussions, the focus of the two day event from July 19-20 will be on is going to be on specific areas including Defence, Maritime Security, Healthcare & Pharmaceuticals, Power and Energy, IT / ITES, Infrastructure and Financial Partnerships, Agriculture & Food processing, Power and Energy, Skill Development and Consultancy, and more. Also, during the conclave the possibility of Trilateral Partnerships will be explored too.
Israeli-US relations 'at one of their all-time highs' following Biden visit (Jewish Insider)
As Israel’s government gathered for its weekly cabinet meeting on Sunday, two days after the conclusion of President Joe Biden’s inaugural trip as president to the country, Prime Minister Yair Lapid proudly hung a framed copy of the newly signed “Jerusalem U.S.-Israel Strategic Partnership Joint Declaration” on the wall in the cabinet room.
The declaration, a roadmap for the U.S.-Israel strategic alliance covering issues ranging from the threats posed by Iran to the Palestinian question to shoring up and expanding regional peace, is being touted as the pinnacle of the two-day trip, which also included a meeting with Palestinian leaders in the West Bank.
Reaffirming the “unbreakable bonds” between the two countries and the enduring commitment of the U.S. to Israel’s security, the declaration outlines, among other things, the two countries’ commitments to democracy and “tikkun olam,” repairing the world, as well as a U.S. pledge never to allow Iran to acquire a nuclear weapon and to continue maintaining Israel’s qualitative military edge in the region.
Wanted: $20M to stop environmental catastrophe in the Red Sea (Devex News)
The United Nations says it needs $80 million to prevent an oil spill in the Red Sea potentially four times greater than the Exxon Valdez disaster. It is $20 million short.
Moored 4.8 nautical miles off the coast of Yemen, the FSO Safer is a supertanker built in 1976 that was later converted into a floating storage and offloading facility, or FSO. It’s been abandoned due to the war since 2015, carrying an estimated 1.14 million barrels of light crude oil.
The estimated cleanup cost when it either leaks or explodes is $20 billion. Either of those occurrences is just a matter of time, the U.N. resident and humanitarian coordinator for Yemen, David Gressly, told Devex in an interview in Brussels last month. Fishing communities would lose their income, towns would be exposed to toxins, and the nearby ports of Hodeidah and Saleef — both key to supplying aid to a country with 17 million people in need of food assistance — could be closed.
UN commemorates Nelson Mandela’s ‘fight for a better world’ (UN News)
UN Member States gathered in the General Assembly Hall on Monday to observe Nelson Mandela International Day, a celebration for everyone to take action and inspire change in their communities.
Abdulla Shahid, President of the UN General Assembly, recalled that he also advocated for democracy, gender equality, the rights of children and young people, and for protecting the environment.
“Madiba’s fight against apartheid, was in fact a fight for a better world, in which the freedom, justice and dignity of all were respected. He called for peace, social justice, equality and human understanding throughout his life,” he said.
Agricultural trade under strain - Responding to new food security challenges (EBRD)
27 Jul 2022: In the context World Trade Organization’s Aid For Trade Global Review, the EBRD and FAO are co-organising a one-hour online session to discuss the implications of the war on Ukraine for agricultural markets, trade and food security. The event will feature representatives from the private sector, of international financial institutions and the international community, as well as leading experts in the field of agriculture and the global food systems.
Ukraine denounces deadly missile strike as war overshadows G20 meeting (EU Reporter)
The attack ruined Friday's G20 finance ministers meeting in Indonesia, at which the top U.S.- and Canadian officials accused Russian officials of complicity in atrocities.
Ukraine claimed Thursday's (14 July) strike against Vinnytsia (a city of 370,000 inhabitants) was carried out using Kalibr cruise missiles fired from a Russian submarine in Black Sea.
Janet Yellen, U.S. Treasury Secretary, condemned Russia's "brutal" and unjust war and stated that Russian finance officials also shared the responsibility.
She stated that Russia was solely responsible for the negative spillovers to global economies, especially higher commodity prices, by starting this war.
Push for post-Brexit trade deals may threaten UK pledges on deforestation (The Guardian)
A war of words is raging within the government over deforestation and trade, with green campaigners warning that a proposed policy could have dire consequences for efforts to stop illegal logging.
Anne-Marie Trevelyan, the international trade secretary, is believed to want to relax tariffs for goods including palm oil from Malaysia, a country of top concern over deforestation. The relaxation would be part of a broader push for trade deals with developing countries that the government is pursuing in the wake of Brexit.
The UK’s Environment Act, which was passed last year, makes provision for due diligence when companies import goods, including palm oil, from overseas countries where deforestation is rife.
Examining the intersection of data privacy and civil rights (Brookings Institution)
For historically marginalized groups, the right to privacy is a matter of survival. Privacy violations have put these groups at risk of ostracization, discrimination, or even active physical danger. These tensions have long pre-dated the digital age.
Under modern-day surveillance capitalism, interested parties can collect and monetize online data at an unprecedented scale with little scrutiny or limitation. That is why the recent overturning of Roe v. Wade highlights the urgent and pressing need for comprehensive federal privacy legislation, particularly to reduce the potential for further exploitation and manipulation of individuals who seek fair reproductive rights. Further, Congress needs to find consensus around federal privacy legislation to address other surveillance and data collection concerns, in particular commercial surveillance practices that enable discriminatory advertising, racially biased policing, and the outing or surveillance of historically marginalized groups.
EU foreign ministers weigh up ban on Russian gold imports (The Guardian)
EU foreign ministers are discussing a ban on Russian gold imports, the most significant measure in a limited plan by the bloc to further curb funding for the Kremlin’s war machine.
The EU’s high representative for foreign policy, Josep Borrell, said the ban on Russian gold was “the most important” measure of the latest plan, which is focused largely on “improving the implementation of the already existing sanctions”.
The EU has passed six rounds of sanctions against Russia, but agreeing the last package – an incomplete ban on oil agreed in May – was a bruising experience that revealed stark differences on how far the bloc should go.
Heatwave, Energy Crisis Fuel Europe's Summer of Discontent: Balance of Power (Bloomberg)
Record heat spells are less one-off events than a foretaste of what is to come as long as the world continues to burn more fossil fuels, adding greenhouse gases to the atmosphere.
Yet that is precisely what is happening as a result of President Vladimir Putin’s war on Ukraine. The US is pressing for more oil production to curb gasoline prices inflated by the invasion, while Europe builds liquefied natural gas infrastructure and fires up coal-powered plants in the rush to replace Russian energy supplies.
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SA government hits back at new EU regulations on citrus exports (IOL)
The South African government has described new requirements for the export of citrus, mainly oranges, from South Africa to the European Union as “trade restrictive” and “unjustified”. In a statement on Monday, the Department of Agriculture, Land Reform and Rural Development said the South African government continued to engage with the European Commission (EC) on the new requirements.
SA customs strike, cargo keeps piling up at Beitbridge (Chronicle)
TRANSPORTERS of commercial cargo continue to experience long delays at the Beitbridge Border Post, as the South African Revenue Services (SARS) customs officials continue with their protest over pay increase. The revenue and customs officers are demanding a pay rise of 12 percent and their employer has offered to review the salaries by only 1,7 percent, a move that has resulted in a stalemate.
“We would like to assure traders and travellers that we have put various contingency measures in place at land border posts to ensure minimal disruption during the current industrial action at SARS,” said the revenue collector. “SARS will ensure that the following capabilities remain available throughout the duration of the industrial action: the processing of declarations will continue as normal; physical inspections of goods will continue as normal, with inspection finalisation being centralised and managed on a 24-hour basis. “In addition to that, trade has been engaged about temporary measures instituted in relation to the authorisation and management of SADC certificates of origin for cargo transported across land borders.”
Concern over move to coal (SAnews)
Minister of Forestry, Fisheries and the Environment Barbara Creecy has expressed concern at some developed countries who were reverting to coal in response to their negative national circumstances. This as the Glasgow Climate Pact called upon nations to phase down unabated coal power and inefficient subsidies for fossil fuels. “We cannot have backtracking by developed country Parties. Developed countries must continue taking the lead with ambitious action. The ultimate measure of climate leadership is not what countries do in times of comfort and convenience, but what they do in times of challenge and controversy,” the Minister said on Monday.
Horticulture cash crop farming on the rise in Zim (The Herald)
Zimbabwe’s horticultural sector is fast emerging as a major driving force for the development of agricultural sectors in the country. Several indicators are already casting a shining light on this sector. Horticulture exports in 2021 grew by 6,8 percent to US$64,6 million from US$59,5 million recorded in 2020, according to the trade promotion body, ZimTrade. With the right support and investments they are rising to the occasion, stimulating export growth through increased production and exploiting opportunities coming with growing global demand.
State relaxes deadline for yellow maize imports (Business Daily)
Animal feed manufacturers have got a reprieve after the Ministry of Agriculture announced it will allow shipments of processors whose consignment of yellow maize imports will arrive in the country past the initial set deadline of October. The imports are aimed at taming the high cost of animal feed. Livestock Principal Secretary Harry Kimtai said those who would have made orders for yellow maize within the set timeline will not be barred from offloading the produce duty-free even if it docks at the port way past the deadline. The manufacturers had last week said that they would not import the produce because of the shorter opening that is remaining between now and the end of October when the duty-free window lapses.
Sanctions block Sh13bn Russia exports to Kenya (Business Daily)
The Russia-Ukraine conflict knocked off Sh13.3 billion in imports from Moscow in the three months to March, forcing Kenya to turn to expensive sources of wheat, fertiliser and steel that helped drive inflation to a 58-month high. Latest data from the Kenya National Bureau of Statistics (KNBS) shows that the sharpest decline happened in the three months to March, as troops from Moscow marched into Ukraine, with imports from Russia dropping 66 percent from Sh19.9 billion to Sh6.6 billion. European nations and the US have imposed sanctions against Russia in the wake of its invasion of Ukraine in February, restricting the flow of its exports. They have sanctioned more than 1,000 Russian individuals and businesses and restricted the purchase of Russian oil.
Kenyan exports to Russia dropped marginally by three percent to Sh2.8 billion during the conflict period, as traders sought alternative routes to ship goods into the country at a time when the international community was announcing sanctions. “The issues on logistics are due to shipping challenges, wheat not leaving the country (Ukraine) and security around the war zone region imposing high risk even for delivery of our exports,” said Julius Opio, the Kenya National Chamber of Commerce and Industry (KNCCI), Nairobi County chairman.
Uganda’s executives globetrot to drum up investor appetite for $4b oil refinery (The East African)
Uganda government officials have been racking up air miles between Entebbe, Italy and US to strike a financing deal for the $4 billion refinery project. Government officials admit that the refinery project has fallen behind others, and will likely come onstream late in 2027 at the earliest if the necessary financing is tied up and the pending technical studies concluded sooner. As a result, local players that were primed to take up equity in the project as well as regional countries that expressed interest in the refinery that was sold as an East African Community (EAC) venture, remain non-committal, citing the project’s failure to take shape since 2018, when it was awarded to a consortium of investors.
Kenya-US go for fresh trade pact as Biden dumps Trump’s deal (The Star, Kenya)
Kenya and US will commence working within three months to develop a detailed roadmap for engagement as they seek what they term a “ Strategic Trade and Investment Partnership.” This signals an end to an initial push for a Free Trade Area (FTA) agreement, whose talks commenced two years ago.
On Thursday, CS Maina and Tai announced the launch of the Kenya-United States Strategic Trade and Investment Partnership (STIP).This was after a virtual meeting between the two, building on their June 13 meeting in Geneva. The two agreed that their governments will pursue enhanced engagement leading to high standard commitments in a wide range of areas with a view to increasing investment, promoting sustainable and inclusive economic growth, benefiting workers, consumers, and businesses.
In a statement to newsrooms, Kenya’s trade ministry said the two have identified issues where the country and the US will develop “an ambitious roadmap” for enhanced cooperation, with the goal of negotiating high-standard commitments in order to achieve economically meaningful outcomes.
ECA pushes Zambia’s Economic agenda on the margins of the African Union Summit (UNECA)
The United Nations-Under-Secretary-General (USG) and Economic Commission for Africa Executive Secretary(ES) ended a successful four-day visit to Zambia and met with the President of the Republic of Zambia, Minister of Finance and National Planning, Governor of the Bank of Zambia and delivered a public lecture to students and academics at the margins of the African Union 41st Ordinary Session of Executive Council and 4th Mid-Year Coordination Meeting that took place from 14th to 17th July 2022 in Lusaka.
The meeting organized under the theme, “Building Resilience in Nutrition and Food Security across the African Continent,” brought together thirteen Heads of State and Government, comprising five Heads of State that form the current Bureau of the Assembly of the African Union (AU), and eight Heads of State who Chair the Regional Economic Communities that are recognized by the AU. The Summit closed with concrete decisions presented by the AU Chairperson, the Senegalese President Macky Sall, who said Africa needs pharmaceutical sovereignty, access to commercial platforms for trade and regional integration to accelerate social and economic development. The USG assured member States of the Economic Commission for Africa (ECA)’s continued support and advocacy for debt sustainability in Africa and for a fair and equitable global financial architecture.
Egypt-Tanzania trade exchange grows 36.3% YoY in 2021
Trade exchange between Egypt and Tanzania amounted to $51.4 million in 2021, rising by 36.3% from $37.7 million in 2020, according to a recent official statement, citing Head of the Egyptian Commercial Service (ECS) Yahya El-Wathik Bellah. Egyptian exports to Tanzania notably grew last year to $47.9 million, compared to around $34.7 million in 2020, El-Wathik Bellah highlighted. Meanwhile, Egypt’
Kenya exempts Egyptian exports from customs duties for additional year (ZAWYA)
Kenya has decided to continue exempting Egyptian exports from customs duties for a year, starting from July 1st 2022 until the end of June 2023, according to a recent statement by the Egyptian Ministry of Trade and Industry. This decision comes after Kenya obtained the approval of the East African Community’s (EAC) Customs Union to extend the exemption of customs duties on imports from Egypt and the Common Market for Eastern and Southern Africa (COMESA) for an additional year. Egypt has been ranked first among the top 28 exporters to Kenya in 2021, acquiring more than 70% of the Kenyan market as compared to its peers.
In 2021, trade exchange between Egypt and Kenya increased by 4.7% to $666 million, versus $635.8 million in 2020, Head of the Egyptian Commercial Service (ECS) Yahya El-Wathik Bellah said.
Egypt-Germany trade exchange increases to $4.8bln in 2021: CAPMAS
Volume of trade exchange between Egypt, GCC countries in 2021 estimated at $16.1bln
Africa
Developed Countries Urged to Free Africa from Shackles of Debt (This Day)
The only way for Africa to be freed from the shackles of debt and get its development back on track is if the continent is assisted by developed countries, private financial institutions and international multilateral financial institutions. This was this submission from an international online seminar with the theme, “Africa’s Debt Situation and China’s Responses,” organised by the Shanghai Institute of International Studies (SIIS). The seminar held at the weekend had in attendance experts and professionals from international organisations, enterprises, Chinese and foreign think tanks and representatives from universities, where they discussed two major topics: ‘Assessing the debt situation in Africa, and China’s role in the African debt issue.’
The seminar aimed to deepen the understanding of African debt crisis and explore how China and the African community could deepen their cooperation with Africa. At the same time, the seminar called on all parties to coordinate and cooperate on this problem, especially the developed countries, private financial institutions and international multilateral financial institutions, and together they should take stronger actions in providing financial support to developing countries and alleviating their debt through actions by all parties can the world help Africa and the global economy to achieve inclusive and sustainable development.
Showcasing the AFCFTA-Anchored Pharmaceutical Initiative: Lessons and Experiences (UNECA)
The United Nations Economic Commission for Africa (ECA)’s AfCFTA-anchored Pharmaceutical Initiative held a virtual side event on the margins of the High-Level Political Forum on Sustainable Development: Showcasing the AfCFTA-anchored Pharmaceutical Initiative: lessons and experiences on July 6 2022.
Hon. Sidibe in his opening remarks said that the Continent’s “dependence on externally manufactured goods was problematic as access to COVID 19 vaccines starkly reminded Africans. He said that the local manufacture of pharmaceuticals on the continent, was therefore no longer an option. “The continent only produces 3% of the medicines consumed by its people. Pharmaceutical supply chains have multiple intermediaries.” He said that these intermediaries contributed to drugs being sold in Africa being the most expensive in the world and that it is very important, in addition to note that Africa has the highest prevalence of sub-standard and counterfeit medicines, with some countries are reaching as much as 30%. Hon. Sidibe said, “these challenges have been largely attributed to weak or absent drug regulatory systems, unclear policies and incomplete or inconsistent legal and regulatory frameworks in many cases. So, acting at this level is therefore critically important.”
The Board of Directors of the African Development Fund approved an $11.02 million support package to the Permanent Secretariat of the African Continental Free Trade Area (AfCFTA) to help it enhance effective implementation.
The world’s second-largest free trade area has a potential market of 1.2 billion consumers, but Africa has the world’s lowest level of intraregional trade at less than 18%, compared with 22%, 50% and 70% for Latin America, Asia, and Europe respectively. The AfCTFA aims to increase this by up to $35 billion per year (25%) over a decade, lower annual imports by $10 billion, and boost agriculture and industrial exports by up to $45 billion (7%) and $21 billion (5%) respectively.
This second phase of support continues to aim to encourage sustainable intra-African trade and to increase the share of African countries participating in it. It is also intended to move the African trade integration agenda forward by enabling the secretariat and the countries of the zone – especially transition countries – to harmonize and integrate national and regional trade policy initiatives.
African Development Bank Group approves $73.5 million to boost food production in Tanzania
Lack of product diversity leaves East Africa exposed (The East African)
East African countries are among the 45 nations in the continent that still depend heavily on the export of primary commodities such as minerals, ores, fuels, metals, agricultural produce and foods, a phenomenon which increases their vulnerability to economic shocks and slows growth. This is why the UN Conference on Trade and Development (UNCTAD) is urging them and other African countries to implement various policy recommendations that will see them diversify their exports by boosting the services sector. The UN agency’s new report, released July 14, suggests that the commodity-dependent African countries could become more resilient to external economic shocks if they diversified their exports, especially through expanding their service exports. “Dependence on commodity exports has left African economies vulnerable to global shocks and hindered inclusive development for far too long,” said Rebeca Grynspan, UNCTAD Secretary-General.
EAC transport & logistic cost high at 1.8 usd per km per container (EABC)
Dr. Merian Sebunya, Chairperson, National Logistics Platform, Uganda said “Transport and logistic costs compose of 35%-42% of production this is high compared to 8% in Asian countries. “ She explained that this has negatively impacted the competitiveness of the EAC bloc and trade balance. EAC transport costs are high estimated at 1.8USD per km per container against international best practices of 1 USD per km per container.
The EAC Trade & Investment Report (2020) shows EAC exports globally stood at USD US16.2 billion in 2020 while imports at USD 35.6 billion registering a negative balance of trade of USD 19.4 billion.
Cross border traders urge regional governments to create one stop centres (Chronicle)
CROSS border traders have urged regional governments to decentralise trade document issuance and clearance by creating one-stop-centre models for harmonised services and enhancing ease of doing business. This emerged during a stakeholder training meeting organised jointly by the Common Market for Eastern and Southern Africa (Comesa) and the International Organisation for Migration (IOM) in Bulawayo last week. In an interview on the sidelines of the meeting, Comesa consultant and advisor on migration, Mr Brian Chigawa, said the workshop highlighted the challenges facing cross border traders and sought to help address them.
He said cross border traders were also encouraged to use safe and proper channels of doing business, which is possible when they get required documents and licences.
Northern Corridor ministers eye wider use of rail and waterways (The East African)
The Northern Corridor Council of Ministers has approved $5.53 million budget for the 2022/ 2023 financial year, with an eye on roads, rail and waterways projects as solutions to congestion. The Executive Committee approved $1.1 million more than it did in the past fiscal year for railway and inland water projects expenditure. The meeting made the decision even as Kenya and Uganda remain at odds over the completion of the oil jetty in Lake Victoria on the Ugandan side. Kenya, Tanzania and Uganda had earlier agreed on using Lake Victoria as a key transit point for oil.
“There is a need for an increased inter-connectedness of the different transport modes along the corridor, especially with the increased pace of development of railway and road infrastructure and the upgrading of lake ports,” reads a joint communique by the six member states.
Africa’s risk of debt piles as countries fight inflation (The East African)
African governments owe three times as much debt to private creditors in the West as they do to China, a report by UK-based Debt Justice released this week shows. Using World Bank and International Monetary Fund (IMF) data, Debt Justice estimates that 35 percent of the continent’s external debt is owed to banks, asset managers and oil traders in the West, with Chinese lenders accounting for around 12 percent. Of the $444 billion in debt repayments that African governments will cough up between 2022 and 2028, $156 billion or 35 percent will go to these private creditors compared with $83 billion due to China.
Since the launch in November 2020 of the G20’s Common Framework, three countries – Ethiopia, Zambia and Chad –have applied for support under the programme aimed at providing debt restructuring as an answer to unsustainable debt levels. So far, none has received any debt relief.
The IMF has called for the initiative to be stepped up, warning that countries could face “economic collapse” if global action on debt relief falls short.
Now, Ethiopian authorities have approached their creditors to speed up relief decisions to help the country balance its budgetary needs in the wake of various crises. The move made this week reflects the situation in several African countries that may see their efforts at rebuilding post-Covid-19 drowned in mounting debt or weakening currencies.
Global economy
The COVID-19 pandemic, interruption in international supply chains, and the war in Ukraine have severely disrupted food, fuel, and fertilizer markets, which are interlinked. By June 2022 the number of acute food insecure people – whose access to food in the short term has been restricted to the point that their lives and livelihoods are at risk – increased to 345 million in 82 countries according to WFP. Making matters worse, around 25 countries have reacted to higher food prices by adopting export restrictions affecting over 8 percent of global food trade.
Avoiding further setbacks to achieving the Sustainable Development Goals requires short and long-term actions in four key areas: (i) providing immediate support to the vulnerable, (ii) facilitating trade and international supply of food, (iii) boosting production and (iv) investing in climate-resilient agriculture.
DG Okonjo-Iweala underlines vital role of trade in addressing food crisis, inflation (WTO)
In her virtual intervention at a session on strengthening global collaboration for tackling food insecurity, the Director-General told the gathered ministers and central bank governors that WTO members “took some important steps” at their 12th Ministerial Conference (MC12) in June. These included a decision to exempt from export restrictions food bought by the World Food Programme (WFP) for humanitarian purposes and a declaration to facilitate trade in food, fertilizer and other agricultural inputs.
“Ministers also adopted a Declaration pledging to facilitate trade in food, fertilizer and other agricultural inputs,” the DG added. “They stressed the importance of not imposing export restrictions and encouraged members with surplus stocks to release them on international markets.”
G20 finance chiefs make few policy breakthroughs at Indonesia meeting (Reuters)
The Group of 20 major economies’ finance chiefs on Saturday pledged to address global food insecurity and rising debt, but made few policy breakthroughs amid divisions over Russia’s war in Ukraine at a two-day meeting in Indonesia. With questions growing about the effectiveness of the G20 in tackling the world’s major problems, U.S. Treasury Secretary Janet Yellen said the differences had prevented the finance ministers and central bankers from issuing a formal communique but that the group had “strong consensus” on the need to address a worsening food security crisis.
The G20 will set up a joint forum between finance and agriculture ministers to address food and fertilize supply issue. A similar forum has been set up for finance and health ministers for pandemic preparedness. G20 members pulled together at the start of the pandemic, but initiatives to cushion the shock for heavily indebted poor countries failed to produce significant results.
Kristalina Georgieva, head of the International Monetary Fund, warned more than 30% of emerging and developing countries - and a staggering 60% of low-income countries - were in or near debt distress. read more “The debt situation is deteriorating fast and a well-functioning mechanism for debt resolution should be in place,” she said.
G20 Finance Ministers and Central Bank Governors Converge to More Concrete Actions amid Increasing Global Challenges (G20 Presidency of Indonesia)
Russians to hold trade talks in South Africa (The Mail & Guardian)
While their compatriots back home are engaged in mortal combat with Russians, Ukrainians in South Africa will have to settle for keeping a beady eye on their enemies when a Russian delegation arrives in Johannesburg next week on a two-day business mission. The Russian Export Centre (REC) group, which describes itself as a state-owned development institute for non-energy sector exports, is hosting the meeting on Wednesday and Thursday at the Sandton Holiday Inn. According to the invitation, REC expects to bring in representatives from 10 sizeable Russian companies as part of its bid to offer financial and non-financial support to the foreign partners of Russian exporters. The focus will be on “engineering and agricultural mechanisation”.
Working group on small business reflects on way forward post MC12 (WTO)
Members suggested that the Group should be looking into issues related to digitalization of trade processes, the treatment of low-value shipments and the impact of cyber-security on small business and enhancing engagement with the private sector to receive relevant feedback to the work of the Group.
E-commerce talks mark new phase in negotiations (WTO)
Ambassador Mina of Australia, who chaired the meeting, highlighted the statement issued at the 12th Ministerial Conference (MC12) by ministers of Australia, Japan and Singapore. This statement included a commitment to revise the working modalities of the initiative to ensure that it achieves progress in the next few months and to issue a new consolidated negotiating text by the end of 2022. Ambassador Mina said: “We are marking this new phase with a step-up of our convergence efforts that’s going to require a couple of different ways of working.” He said that participants will need to accelerate their work in the small group setting.
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Structural growth in South Africa to slow for the rest of this year (Engineering News)
While South Africa's real gross domestic product (GDP) growth expanded above consensus forecasts in the first quarter of this year, fading base effects, persistent structural constraints and the impact of Russia's invasion of Ukraine will result in growth slowing across the rest of the year, market and credit intelligence company Fitch Solutions Country Risk & Industry Research sub-Saharan Africa country risk analyst Lara Wolfe noted this week.
Elevated inflation and the poor labour market in the country will also cap real GDP gains, which are expected to slow to 1.7% for the year, well below the regional average of 3.2%.
As a result of growing inflation pressure and, given the hawkish stance of the US Federal Reserve Bank, Fitch Solutions expects the SARB to hike interest rates by a further 125 basis points to 6% before the end of the year.
Black Industrialists conference to highlight govt’s progress since 2016 (Engineering News)
Trade, Industry and Competition Minister Ebrahim Patel has confirmed that government will share the findings of research conducted into the impact of black industrialists on economic output and job numbers during the inaugural Black Industrialists and Exporters Conference.
The conference will be hosted on July 20 in Sandton and will serve to reflect on the performance of government’s Black Industrialists Programme since its inception in 2016.
The conference will comprise a keynote address by President Cyril Ramaphosa; a number of panel discussions; the launch of growth initiatives, such as the Black Exporters Network; a marketplace with 85 businesses showcasing products; and ten Presidential Awards that will be issued for excellence in business.
AfDB approves $66 million to help Guinea improve access to electricity (Devdiscourse)
On 14 July 2022 in Abidjan, the Board of Directors of the African Development Bank Group approved a $66.39 million support package for Guinea. The funding is intended to help it increase access to electricity.
It consists of a $4.17 million grant and a $9.37 million loan from the African Development Fund (the concessional arm of the African Development Bank Group) and a $24.13 million grant and a $28.72 million loan from the Transition Support Facility. The project is co-financed by the French Development Agency, the Islamic Development Bank, the Sustainable Energy Fund for Africa, hosted by the Bank, USAID, through the Africa Energy Program, and the Guinean government.
The Guinea Power Access Improvement Project will improve people's living conditions and the productivity of beneficiary companies through access to regular, reliable and cheaper energy services, explained Léandre Bassolé, the Bank Group's Country Manager for Guinea.
Rebuilding Cabo Delgado a daunting task (defenceWeb)
Mozambique’s restive northeastern province is abuzz with action. Despite recent losses, violent insurgents continue to attack villages and residents, while thousands of security forces fight to secure towns in order to welcome back displaced citizens and restore budding hopes of normalcy.
At the same time, the government, international organizations, donor countries and a regional bloc working to stabilize southern Africa are debating and forming plans to rebuild the province. The number of moving parts, like the rebuilding challenge itself, is overwhelming.
Ghana seeks IMF bailout as inflation spikes (Quartz Africa)
Ghana’s annual inflation climbed to 29.8% in June 2022, the first time the country’s inflation rate has touched 29% since January 2004. Ghana Statistical Service’s latest consumer price index report says June’s inflation was accelerated by higher costs of transportation, household equipment and maintenance, and utilities like electricity, gas, and water.
The new inflation rate underscores worsening economic conditions in the west African country especially this year. Between October and December last year, Ghana’s inflation rate averaged under 12%. In the second quarter of 2022, it was 27%, GSS’s data show.
Frustrated by rising costs of living, Ghanaians held days of protests in Accra at the end of June to draw the government’s attention, following up on previous outcries against new taxes on electronic transactions. Seemingly unable to save itself, Ghana’s federal government is, once again, looking to the International Monetary Fund for help.
AfDB to establish entrepreneurial bank in Tanzania (The Citizen)
Speaking in Dar es Salaam on Tuesday evening during the monthly engagement meeting of the CEO Roundtable of Tanzania (CEOrt), the AfDB country manager in Tanzania, Dr Patricia Laverley, said the envisaged Entrepreneurial Development Bank would be established under the AfDB’s Youth Entrepreneurship and Innovation Multi-Donor Trust Fund.
“We are committed to supporting entrepreneurs with focus on women, micro-enterprises and SMEs to have access to finance as well as equipping them with skills development,” she said, adding, “Our targeted goal is to ensure that they have businesses that are sustainable.”
Dar es Salaam. The African Development Bank (AfDB) is considering establishing a development bank that will specifically cater for the funding needs of micro and small and medium enterprises (MSMEs) in Tanzania.
Cabo Verde: Cabo Verde Prime Minister, African Development Bank Head Affirm Commitment to Strengthen Island Nation's Economy from Exogenous Shocks (African Business)
The African Development Bank Group (www.AfDB.org) President Dr Akinwumi Adesina has met with Cape Verde Prime Minister José Ulisses de Pina Correia e Silva on an official visit to the institution’s headquarters in Abidjan. The two discussed the economic situation of Cabo Verde and emphasized the need to strengthen the country’s emergence in the face of exogenous shocks such as the war in Ukraine and the Covid-19 pandemic.
Prime Minister de Pina Correia e Silva expressed his admiration for the way in which the Bank helps African countries to address key development challenges and emerging issues. In particular, he welcomed the Bank’s support in the fight against Covid-19 and the Zika Virus, which have enabled the country to preserve its economy.
Adesina praised the Cabo Verde government for its “rapid and effective” response to the Covid-19 pandemic, which mitigated its shock. He particularly noted how the country had managed to re-open its economy as early as October 2021, in tandem with the vaccine roll-out. “It is important to note that by the end of June 2022, 85.2% of the population was fully vaccinated, in contrast with an African average of 16%. I congratulate you and your government for this remarkable effort,” Adesina said.
Sh7 trillion pacts expected to create 500,000 jobs in Tanzania (The Citizen)
Exhibitors at the 46th Dar es Salaam International Trade Fair (DITF) inked a total of 19 Memorandum of Understanding (MoUs) that spell out how local and foreign investors could work together in the advancement of their common interests.Out of the number, nine – valued at $3 billion (about Sh6.9 trillion) - are those under the Sino-Tanzania Industrial Park which will create over 500,000 direct and indirect jobs upon successful execution.
Speaking at an event to officially close the 46th DITF in Dar es Salaam yesterday, Ministry of Investment, Industry and Trade’s permanent secretary Godius Kahyarara said negotiations for 16 more contracts - under the Export Processing Zone Authority (EPZA) – were still on going.
Neal Applauds Launch of the U.S.-Kenya Strategic Trade and Investment Partnership (Ways and Means Committee)
Today, House Ways and Means Committee Chairman Richard E. Neal (D-MA) applauded the launch of the United States-Kenya Strategic Trade and Investment Partnership: “Today’s announcement that the United States will be furthering our partnership with a key trading partner, Kenya, is a welcome advancement in our trade relationship, and I thank USTR Ambassador Tai for her leadership in launching this initiative.”
African trade and integration
Economic Development in Africa Report 2022 (UNCTAD)
Economic Development in Africa Report 2022 shows that neglecting the potentially transformative role of high knowledge-intensive services, such as information and communications technology services and financial services, is among the key reasons why export diversification remains a challenge in Africa.
The report shows that effectively addressing barriers to services trade under the African Continental Free Trade Area will be key to unleashing the transformative role of services in enhancing the diversity and complexity of products from Africa.
UNCTAD recommends that for export diversification strategies to be impactful in Africa, policies need to be in place that enhance inclusive access to innovative financing technologies, including for small and medium-sized enterprises. Leveraging high knowledge-intensive services to increase productivity and improve competitiveness in the private sector will be key to achieving higher value-added diversification and growth under the African Continental Free Trade Area.
Nigeria: New UN resilience project paves 'pathway to peace and sustainable development' (UN News)
The Resilience and Social Cohesion project, launched by the UN Children’s Fund (UNICEF) and World Food Programme (WFP), will enhance peace, increase livelihood opportunities, and provide education, health, nutrition, child protection, and sanitation support to vulnerable populations in Borno and Yobe states.
Funded to the tune of €40 million from the German Government, the three-year humanitarian package targets children from birth up to two years of age, pregnant women, school-age children, adolescent girls, female-headed households, and people with disabilities.
“Children and other vulnerable groups will have a lifeline, and an opportunity to survive and thrive in communities where livelihood and peace building activities are present,” the UNICEF Representative spelled out.
Solar, wind trade groups team up to drive Africa investment (reNEWS)
SolarPower Europe and GWEC have signed an agreement with RenewAfrica and the AFSIA to jointly organise the Africa Renewables Investment Summit (ARIS), an event that seeks to catalyse renewable energy investment for African countries.
Despite the continent’s massive renewable energy potential, Africa received 2% of the $2tn that was invested in renewable energy globally between 2000 and 2020.
The summit in Cape Town will gather renewable developers, institutional investors, development finance institutions, technology suppliers and African government stakeholders to explore ways to harness Africa’s renewable energy potential, with some investment set to be facilitated right at the event.
Africa World Trade Network Launched (Peace FM Online)
On Tuesday, July 12, 2022, officials from the Ministry of Trade, diplomats and multi-faceted entrepreneurs converged on the Kempinski Hotel for the launch of the Africa World Trade Network (AWTN).
In the wake of the Africa Continental Free Trade Agreement (AfCFTA), AWTN seeks to lead the way in pursuing tailored trade solutions in the best interest of Africans.
The Secretary-General of AfCFTA, H.E Wamkele Mene, in his speech lauded the initiative and made an audacious call to African leaders to dissolve barriers to free movement of Africans across the continent.
AfDB, COMESA Sign US$550,000 Grant to Conduct Study on Developing Africa Cloud Ecosystem (COMESA)
The African Development Bank and the Common Market for Eastern and Southern Africa (COMESA) have signed a Letter of Agreement for a US$550,000 NEPAD Infrastructure Project Preparation Facility grant to support a feasibility study for setting up an Africa Cloud Ecosystem (ACE) project.
The agreement was signed by the AfDB Zambia, Country Manager, Dr. Raubil Durowoju and COMESA Assistant Secretary General, Dr Kipyego Cheluget on behalf of Secretary General, Chileshe Kapwepwe, at the COMESA Secretariat in Lusaka, Wednesday,13 July 2022.
“The Africa Cloud Ecosystem project will be a first of its kind, laying the foundation to facilitate the African continent to undertake this shift in the key sectors of economy, education, government, agriculture and health through the provision of a reliable ecosystem of datacentres,” Dr Durowoju said.
Southern African bloc further extends Mozambique troop deployment (Reuters.com)
Southern African countries agreed on Thursday to extend their troop deployment in Mozambique for another month to help it fight an Islamic State-linked insurgency. The countries, linked in the Southern African Development Community (SADC), agreed last year to send troops to Mozambique
The mission's mandate was set to end on Friday but has been extended on an interim basis until an SADC heads of state summit in mid-August, when a more detailed report on the mission's progress will be considered.
Trans-Saharan Gas Pipeline Offers Hope for Europe (Horn Observer)
Europe is still looking for reliable alternative sources of energy especially gas, as its energy relations with Russia have nosedived. It has been exploring energy sources from the Asian region and Africa. While African energy sources exist, Africa lacks the needed infrastructure to transport them to Europe. Transporting gas would require clearance agreements across the various African borders
The Trans-Saharan gas pipeline (also known as NIGAL pipeline and Trans-African gas pipeline) was first proposed back in the 1970s. The inter-governmental agreement on the pipeline was signed by Energy Ministers of Nigeria, Niger and Algeria on 3rd July 2009 in Abuja. It has not materialized, among due to financial constraints and complicated government bureaucracy.
Mahamane Sani Mahamadou, Minister of Petroleum for the Republic of Niger; Mohamed Arkab, Minister of Energy and Mines, Algeria, and Chief Timipre Sylva, Minister of State for Petroleum Resources of Nigeria as well as the Director Generals of National Oil Companies (NOCs) of the three African countries have held thorough discussions on the implementation of the multi-billion Trans-Saharan Gas Pipeline (TSGP).
According to reports, a Steering Committee made up of the three Ministers and Director Generals of the NOCs, established during the two-day meeting, will be responsible for updating the feasibility study for TSGP and will meet at the end of July 2022 in Algiers to discuss the progress.
Dr Omar Alieu Touray Assumes Office as New President of the ECOWAS Commission (African Business)
Dr. Omar Alieu Touray, a Gambian National, has assumed office as the new President of the ECOWAS Commission for a four-year tenure. He takes over from Jean-Claude Kassi Brou, an Ivorian National, who has piloted the affairs of the Commission from 2018 till date. Other statutory management appointees inaugurated include Damtien L. Tchintchibidja, Vice-President of the ECOWAS Commission, Prof. Nazifi Abdullahi Darma, Commissioner for Internal Services, Dr. Abdel-Fatau Musah, Commissioner for Political Affairs, Peace, and Security, Mme Massandjé Toure-Litse, Commissioner for Economic Affairs and Agriculture, Mr. Sédiko Douka, Commissioner for Infrastructure, Energy and Digitalisation and João Alage Mamadu Fadiá, Auditor-General.
AfDB regional funding to improve and promote regional integration (ESI Africa)
The Board of Directors of the African Development Bank Group (AfDB) has approved a $175 million Trade Finance Funded Risk Participation Agreement facility for the Eastern and Southern African Trade and Development Bank (TDB) to improve regional integration.
The agreement is expected to boost intra-Africa trade, promote regional integration and contribute to the reduction of the trade finance gap in Africa.
The Bank will provide liquidity of up to 50% (the other 50% to be matched by TDB), to issuing banks on a risk share basis and facilitate the issuing on a risk share basis, to support trade activities of local corporates and SMEs in member countries of the Common Market for Eastern and Southern Africa (COMESA).
Akufo-Addo swears in members of National African Peer Review Mechanism Governing Council (Myjoyonline)
It will be recalled that the African Peer Review Mechanism (APRM) was adopted by Member States of the African Union (AU), within the framework of the New Partnership for Africa’s Development (NEPAD), as a self-monitoring tool.
The APRM is a vehicle for sharing experiences, reinforcing best practices, identifying deficiencies and assessing capacity-building needs to foster policies, standards, and practices that lead to political stability, high economic growth, sustainable development and accelerated regional and continental integration.
President Akufo-Addo has sworn into office the members of the Governing Council of the National African Peer Review Mechanism on Thursday.
Ghana: Afreximbank Takes Trade, Investment Drive to Caribbean... to Hold Maiden Actif in Barbados (Top Africa News)
The maiden AfriCaribbean Trade and Investment Forum (ACTIF) aimed at boosting trade and investment between Africa and the Caribbean will be held in the Republic of Barbados.
Slated for September 1-3, 2022 it is being convened by the African Export-Import Bank (Afreximbank) in collaboration with African Union Commission (AUC), African Continental Free Trade Area (AfCFTA) Secretariat, Africa Business Council, the Caribbean Community Secretariat, and Caribbean Export Development Agency.
A media advisory issued by Afreximbank yesterday said the main goal of the forum was to provide a platform for the development of strategic partnerships between the business communities in Africa and the CARICOM Region with the objective of fostering bilateral cooperation and engagement in trade, investment, technology transfer, innovation, tourism, culture and other services.
SOUTHERN AFRICA: Fresh hopes for investment as SADC adopts public finance management law (Daily Maverick)
The 51st Plenary Assembly session of the Southern African Development Community (SADC) Parliamentary Forum (PF) on 14 July 2022 adopted the much-anticipated Model Law on Public Financial Management (PFM), raising hopes in a region in which lack of accountability in the use of public funds has perennially jinxed socioeconomic development.
The Speaker said the management of public finances across SADC member states continued to face various challenges such as corruption, misappropriation, overspending and other forms of illicit financial flows.
In an impassioned and factual submission, Nelly Butete Kashumba Mutti, the Speaker of the National Assembly of Zambia, enjoined the Plenary to adopt the model law. She said the PFM affects all aspects of any nation’s life as it is the fulcrum upon which the implementation of all government programmes hinges.
NEPC, SMEDAN sign pact to expand exports in W/Africa (Daily Trust)
The Nigerian Export Promotion Council (NEPC) and the Small and Medium Enterprises Development Agency (SMEDAN) have signed a Memorandum of Understanding (MOU) geared towards facilitating the first West African MSME (WAMSME) Export Opportunities Exhibition.
Speaking at the MOU signing in Abuja, the Executive Director of NEPC, Dr Ezra Yakusak, said the collaboration was aimed at enhancing the visibility of Made-in-Nigeria goods and services within West Africa.
Beyond Covid-19: Strengthening Africa’s health systems to address current and future health priorities (Mail and Guardian)
All of the speakers agreed that significantly more financing is required for stronger African health systems. The goal is for each African country to spend 15% of its budget on healthcare; at present the average is closer to 3%.
Dr Ahmed Ogwell Ouma, Acting Director, Africa CDC (Africa Centres for Diseases Control and Prevention) said that to boost African countries’ pandemic responses, health systems need to be strengthened to manage crises as fast as possible and information must be made available to the public.
As the Covid-19 pandemic develops, African countries’ response strategies must shift from crisis response to long-term control strategies. The momentum of Covid-19 management must be integrated into broader health systems to achieve health equity and health security, while also ensuring that other health issues and deadly diseases are prioritised.The continent’s leading health experts and policymakers discussed these issues in a webinar hosted by the Mail & Guardian and organised by The Conversation Africa and Global Health Strategies, with Devex as a media partner.
Global economy
Divided Over Russia, G-20 Aims at Food Security, Debt Crises (Bloomberg)
Group of 20 finance chiefs started official meetings in Bali Friday with an eye toward progress on food security and debt issues as tensions over Russia impeded prospects for a more sweeping agreement.
Host Indonesia is pushing for G-20 members to pledge more concrete action to respond to food insecurity, including by sharing data on commodity stockpiles, and for them to coordinate better on macroeconomic policies, according to a person familiar with the discussions.
The G-20 discussions have been “very difficult but sometimes fruitful,” Sri Mulyani Indrawati, Indonesia’s finance minister, said in opening remarks for the Friday meetings. “Despite all our differing positions, we have been able to make tangible progress on some critical issues.”
G20 finance meeting under Ukraine cloud (Manning River Times)
G20 finance leaders are meeting on the resort island of Bali, as host Indonesia tries to find common ground in a group frayed by the Ukraine war amid rising economic pressures from soaring inflation.
Russia's invasion of Ukraine has overshadowed recent previous meetings by the Group of 20 major economies, including last week's gathering of foreign ministers.
G20 members include Western countries that have imposed sanctions on Russia and accuse it of war crimes in Ukraine - which it denies - as well as nations like China, India and South Africa, which have been more muted in their responses.
US Treasury Secretary Janet Yellen said on Thursday the war was causing a negative spillover globally and Russian officials had no place at the G20 meeting.
UNCTAD convenes consumer protection talks amid heightened vulnerability (UNCTAD)
Ministers, high-level government representatives, experts, civil society and private sector representatives will next week discuss how to better protect consumers amid the global cost-of-living crisis during meetings organized by UNCTAD.
The sixth session of the Intergovernmental Group of Experts on Consumer Protection Law and Policy will take place from 18 to 19 July, followed by the twentieth session of the Intergovernmental Group of Experts on Competition Law and Policy from 20 to 22 July, in Geneva and online.
High-level speakers will discuss pressing and timely consumer protection issues related to financial consumers, health services and international trade of unsafe products.
Policy Makers and leading stakeholders from around the world have called for a united global effort to combat ongoing crises and deliver meaningful change and sustainable development. These issues were emphasized during the “Messages from the Regions” session during the 2022 High-Level Political Forum on Sustainable Development (HLPF). The HLPF is an annual gathering of government, civil society, youth and private sector representatives from around the globe to address pressing socioeconomic issues and propose a sustainable way forward for the planet.
The session heard interventions from environmental stakeholders across the globe, including Arlette Soudan-Nonault, Minister of Environment and Sustainable Development of the Republic of Congo and technical coordinator of the Congo Basin Climate Commission. She highlighted the importance of operationalizing Blue Funds in the region, with the support of ECA.
The Session stressed the importance of regional and sub-regional approaches to crisis recovery, through cooperation between countries and the sharing of lessons and best practices amongst partner countries. As we approach the halfway mark between the adoption and finish line of the 2030 Agenda, such partnerships will be key in accelerating progress. Regional visions such as Agenda 2063 of the African Union complement these global efforts and provide the needed context-specificity for inclusive development that is meaningful and impactful for our communities.
Soaring dollar risks widening US trade deficit (The Africa Logistics)
For the first time in over two decades the exchange rate between the US Dollar and the Euro has hit parity meaning that the two currencies are worth the same amount.
The dollar is the world’s reserve currency, which means it is used in most international transactions.
In a nutshell Americans will have great spending power now than ever before.
On the flipside, the US is likely to experience a bigger trade deficit as countries shy away from buying their products.
U.S. Secretary of Commerce Gina Raimondo Appoints New Members of the President's Advisory Council on Doing Business in Africa (US Department of Commerce)
Secretary of Commerce Gina Raimondo has appointed 24 members to the President’s Advisory Council on Doing Business in Africa (PAC-DBIA) to serve a two-year term. The PAC-DBIA was established in 2014 to provide recommendations and analysis to the President, through the Secretary of Commerce, on strengthening commercial engagement between the United States and Africa.
Over the next two years, the PAC-DBIA will serve as an important source of private sector input helping to advance the Biden Administration’s commitment to expanding and deepening U.S. commercial partnerships in Africa that are grounded in shared interests, support, and mutual respect and responsibility. The PAC-DBIA will advise the President on facilitating U.S. business participation in economic sectors critical to economic recovery from recent global crises and inclusive long-term growth across Africa, creating jobs in the United States and Africa through trade and investment, building the capacity of Africa's youth and entrepreneurs to develop trade and investment ties with partners in the United States, and developing and strengthening partnerships and other mechanisms to increase U.S. public and private sector financing of trade with and investment in Africa
A Chinese port in Nigeria will change the world economy (Nikkei Asia)
A milestone was reached this month when a Chinese vessel became the first ship to berth at Nigeria's first deep-water port in Lekki that was financed by the China Development Bank and built by Lekki Port LFTZ Enterprise, a special purpose vehicle owned by a group of investors led by state-owned China Harbour Engineering and Tolaram Group, a Singapore-based conglomerate, and including local and federal Nigerian governments.
According to Nigerian Ports Authority managing director Mohammed Bello-Koko, the arrival of the megaship from Shanghai was historic, signifying not only Nigeria's readiness to take trade facilitation a notch higher but also the port's potential to help optimize the African Continental Free Trade Area, a pact connecting 1.3 billion people across 55 countries that the World Bank believes can transform Africa's economies.
Just 60 km east of the world's 15th largest city and Africa's largest metropolis Lagos, the port will increase its container-carrying potential from 3,000 containers to up to 20,000 containers. It will also allow up to 5 megaships to berth at the same time, putting Nigeria light years ahead of what is presently available in alternative Nigerian ports at Tin Can Island and Apapa.
EU Slows on Ukraine Aid as Bloc Girds for Economic Pain (Bloomberg)
High-profile aid to Ukraine that the EU promised in May seems to be shifting to the back burner as the bloc faces the prospect of severe economic pain at home. While commission President Ursula von der Leyen proposed sending 9 billion euros in emergency loans to Ukraine, so far, the EU has only managed to agree on an initial tranche that covers a ninth of that target. When finance ministers discussed the issue this week, we learned that economy commissioner Paolo Gentiloni told them that governments need to ensure the economic response to the war’s fallout at home is strong enough to avoid the risk of fatigue among Europeans. Heading into the traditionally sleepy summer period in Brussels, the EU will face new challenges as the specter of a total cut-off from Russian gas and the tightening of monetary policy risk pushing the region into a second recession in two years.
World Bank Group Responds to Overlapping Crises with Nearly $115 Billion in Financing in Fiscal Year 2022 (ReliefWeb)
In its just-completed fiscal year 2022 (FY22), the World Bank Group responded with unprecedented scale to overlapping global crises, providing advice and financing in response to the sharpest economic slowdown in eight decades, rising inflation, deepening food insecurity, war and fragility, and the continued negative impact of the COVID-19 pandemic.
“Developing countries are facing multiple challenges—from war to surging food and energy prices—which deepen inequality and lead to reversals in development gains,” said World Bank Group President David Malpass. “The World Bank Group has responded with urgency, scale, and impact. We have committed consecutive surges of financing, analytical support, and policy advice, first in response to the COVID-19 pandemic, and now to address the food crisis, the war in Ukraine, and its spillover effects.”
Amid these devastating crises, the World Bank Group deployed a record $114.9 billion in FY22 (July 1, 2021-June 30, 2022). Commitments during FY22 were informed by our knowledge work and helped countries address rising food prices, manage refugee flows, bolster health preparedness, maintain private sector trade, and support efforts to mitigate and adapt to climate change, among others, benefitting especially the poor and most vulnerable.
FTAs will stimulate trade, spur recovery (China Daily)
China will make full use of free trade agreements to guide export-oriented companies to explore overseas markets, while encouraging exports of innovative, green and high value-added products to bolster their competitiveness, said the Ministry of Commerce on Thursday.
As the country's foreign trade still faces uncertainties in the second half, the government will urge related parties to lower exporters' corporate financing costs and shipping expenses, and accelerate the progress of export tax rebates, Shu Jueting, a ministry spokeswoman, said.
UK-China trade talks on ice as hawks vie to replace Boris Johnson (POLITICO Europe)
Boris Johnson's government paused two key sets of trade and economic talks with China amid a backlash from Tory MPs and hawkish statements from candidates vying to replace him as U.K. prime minister. The outgoing British leader's administration has put two sets of talks that businesses were expecting to take place later this month back on ice, according to three people familiar with the discussions.
The decision to keep them in limbo has some British businesses worried, while human rights campaigners are claiming victory and hoping Conservative leadership contenders will keep the talks paused.
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Local news
Both the South African and Angolan economies are abound with opportunities that the South African and Angolan businesspeople can take advantage of and explore in order to produce food products for the two countries for the purpose of food security. This was said by the President of the Angola-South Africa Chamber of Commerce and Industry, Dr Victoriano Nicolau. He was speaking on the sidelines of a business networking session that was hosted by the Department of Trade, Industry and Competition (the dtic) in Luanda, Angola.
“The far-reaching and negative impact of the Ukraine-Russia conflict on food security provides a timely and perfect opportunity for businesspeople from Angola and South Africa to think about how they can work together to come up with ways and means of plugging the gap created by the shortage of products that we import from other countries as a the result of the conflict,” said Nicolau.
He added that there were unlimited opportunities in the agricultural and agro-processing sectors that companies from Angola and SA could collaborate in to produce food products for the two countries in particular, and the SADC region in general, in order to be self-sufficient.
Uganda, South Africa agree to deepen cooperation (New Vision)
Uganda and South Africa have agreed to strengthen cooperation in agriculture, energy, trade, health, finance, tourism and investment. During the 2nd session of the Joint Commission of Cooperation between Uganda and South Africa, the State Minister for Foreign Affairs, Henry Okello Oryem, noted that the good relationship will create an enabling platform that allows the two countries’ public and private sectors to discuss business challenges, identify opportunities, share experiences and create business networks.
Traders urged to use customs advance rulings (Namibian)
NAMIBIAN traders have been encouraged to use advance rulings to reduce the time spent at the border, which would further contribute to reducing the cost of doing business, improve Namibia’s performance and rating in the trading across borders index as well as the ease of doing business. This was said by the executive secretary of the Southern Africa Customs Union (Sacu) Paulina Elago at the launch of the advance ruling programme in Namibia yesterday. Advance rulings are binding decisions by customs at the request of a trader on specific particulars in relation to the intended importation or exportation of goods. They can be requested regarding either the classification, the origin or the customs value of the goods in preparation for importation or exportation. Elago said the launch of the advance ruling in Namibia has come at an opportune period, as globally nations are recovering from the effects of the Covid-19 pandemic.
“This initiative will also go a long way in responding to the broader international framework of the World Trade Organisation (WTO) trade facilitation agreement that places an obligation on WTO members to issue advance rulings in respect of tariff classification, origin and valuation matters,” she said.
Zim exporters can tap UK, Ghana markets (The Herald)
ZIMBABWEAN exporters should take advantage of national trade promotion and development body, ZimTrade’s, trade missions to diversify exports into the United Kingdom (UK) and Ghana as well as unlock opportunities in the wider African Continental Free Trade Area (AfCFTA). ZimTrade chief executive officer Mr Allan Majuru said this in a speech read on his behalf by the agency’s operations director Mr Similo Nkala during a UK and Ghana market survey dissemination seminar in Harare on Tuesday. Zimbabwe’s national trade development and promotion organisation conducted the survey in the two markets in May this year.
”The UK is heavily dependent on imports for most of its products and the market survey that was conducted by our team aimed to gather information on what type of produce Zimbabwe can export to that country following the signing of the Economic Partnership Agreement. “Historically, we all know that the UK was a traditional trading partner for Zimbabwe where we exported a wide range of products.
“At one time, the UK was among the top five export markets for Zimbabwe,” said Mr Majuru, adding that the UK market was heavily dependent on imports for most of its products and the market survey that was gathered by the agency aimed to gather more information on what type of products Zimbabwe can export to that country.
“In our endeavour to diversify our exports markets as well as take advantage of the AfCFTA, this year we targeted the Ghana market, which is in West Africa (a first for us to explore this region).
“Our plan is that as we penetrate the Ghanaian market, it will be a springboard into other West Africa countries using the AfCFTA trade agreement. Buyers in these markets don’t know much about some of our brands, therefore, we need to invest a lot in terms of brand development. This should be both at company level and us as your trade promotion organisation investing into the promotion of our brands as a nation,” he said.
African Development Bank and partners to work together on Zimbabwe’s debt action plan (AfDB)
Zimbabwe has received reassurance of support for a strong push to help it clear its debt arrears. African Development Bank Group President Dr. Akinwumi Adesina, representatives of multilateral finance institutions, the Zimbabwean government, and other partners have agreed to work together to develop an action plan that will resolve the country’s debt arrears. Zimbabwe owes $13.5billion to multilateral financial institutions, bilateral partners, and other creditors.
The African Development Bank supported Zimbabwe with $13.8 million under the Bank’s Covid Response Facility. The Bank has focused on strengthening the country’s public finance management capacity through a Transition Support Facility. It will also provide Zimbabwe with $4.2 million in technical support for the implementation of its arrears clearance and debt resolution strategy.
Growing Kenya’s share of exports to African markets (Business Daily)
Kenya is expected to rise above the waves of the Covid-19 pandemic in terms of economic recovery, according to the 23rd Edition of Kenya Economic Update recently launched by World Bank. The Economic Survey 2022 shows Kenya’s real GDP grew by around 7.5 percent in 2021, compared to a contraction of 0.3 percent realised the previous year.
There has been gradual, normalisation in economic activity in most sectors, including manufacturing and exports. Against the back of a weaker global economy due to the effects of the pandemic, Kenya has shown signs of resilience in most sectors. The total exports in 2021 grew to Sh743.7 billion compared to Sh643.7 billion in 2020 — an increase of 15.5 percent.
Vegetables, fruits sold locally get new safety standards (Business Daily)
Local consumers of horticulture produce are now assured of their safety following the unveiling of new standards, a departure from the previous practice where only export commodities were subjected to quality checks. The launch of the Kenya Bureau of Standards backed KS1758 will now ensure that whatever is consumed locally is also safe for consumers and adheres to international practice on the minimal levels of pesticides accorded to exports. The bulk of Kenya’s horticulture produce is consumed locally with only four percent finding its way to the export market.
The rolling out of the standards started last week with the launch at Beyond Fruit, a local outlet dealing with fresh produce. The new safety code has also been rolled out in the Kongowea market starting with mchicha- a popular traditional vegetable at the coast. It will also be rolled out in hotels and restaurants as well as other open-air markets. The produce that has been certified as being safe will be clearly labelled on the shelves with the new standard.
Current account widens over oil, food import bill (Business Daily)
Kenya’s current account deficit widened further in May on sustained pressure from high fuel and food import costs, which negated improved dollar inflows from remittances and agriculture exports. The deficit as a percentage of GDP rose to 5.3 percent in the 12 months to May 2022 from 5.1 percent in April, piling more pressure on the shilling as it meant there was a higher demand for dollars in the local market to fund the rising imports. The current account measures the difference between a country’s forex inflows and outflows, falling into deficit when outflows are higher.
Higher crude and food prices in the global market-driven in part by the Russia-Ukraine war—pushed Kenya’s inflation to a 58-month high of 7.9 percent in June, breaching the government’s upper limit target for the first time since August 2017.
“A widening current account deficit, amid a fuel-linked increase in the import bill, has elevated the local demand for US dollars and as such sustained the Kenya shilling’s depreciation by an average 4.56 percent this year,” said NCBA in a weekly fixed income note.
Kenya intercepts scrap metal to TZ despite ban (Business Daily)
Kenya has intercepted illicit scrap batteries destined for Tanzania barely two months after the State lifted a ban on dealings in scrap metal. Authorities on Monday intercepted a truck along Mombasa Road ferrying scrap batteries to neighbouring Tanzania.
The government in May issued strict regulations that require licensed scrap metal dealers to transport their cargo between the prescribed 6.30am and 6.30pm.With the new regulations in place, the State lifted a January 20, 2022 ban that President Uhuru Kenyatta imposed on scrap metal business following a surge in vandalism of critical national assets including power transformers. The new rules impose a Sh10 million fine or a three-year jail term to anyone found operating without a license.
Rwanda eyes more trade with ECCAS bloc (The New Times)
Rwanda plans to put more efforts in its trade with the Economic Community of the Central African States (ECCAS), a bloc where the country is exporting far more than it imports and has more economic opportunities, the Minister of Trade and Industry has said. Béata Habyarimana made the remarks on Wednesday, July 13 while interacting with Senators, Members of the Committee on Foreign Affairs, Cooperation and Security on the trade benefits that Rwanda gets from regional and continental organisations.
According to data from the Ministry of Trade and Industry, Rwanda’s trade with other ECCAS countries amounted to Rwf171.9 billion in 2021 from Rwf88.2 billion in the previous year. This figure includes Rwanda’s exports worth over Rwf155.4 billion (or 90 percent of total trade) to those countries and its imports from them worth over Rwf16.4 billion.
Museveni and the illusions of middle income (Monitor)
Last month, during the State-of-the Nation Address we were astounded with an incredible announcement that Uganda was now a lower middle income country having crossed the threshold of an average national income estimated at just over $1,000. The World Bank uses $1,045 as the threshold of Gross National Income (GNI) per person (total income including money by nationals from abroad but not foreigners in the country). Last Thursday, the World Bank released a report that contradicted Mr Museveni’s claims of middle income status, insisting that at $840 GNI per person, Uganda was still a poor, low-income country.
Then on Wednesday, the head of Uganda Bureau of Statics dug in on the government side about the promised land of ‘middle income’. The difference between the World Bank’s $840 and the government’s quoted figure of $1,046 is huge.
DR Congo cancels 14 customs levies in bid to smooth trade (The East African)
The Democratic Republic of Congo’s Trade ministry has ordered the cancellation of 14 levies on exports and imports and the reduction of 20 more duties at the borders in a bid to make trading more smooth and stamp out “illegal” taxes. Africa’s biggest copper producer and the world’s biggest cobalt producer, Congo has battled with lengthy queues of trucks carrying metal at its borders, which mining companies blame on poor infrastructure and inefficient customs systems. The move aims to “rationalise import and export taxes and reduce costs and delays”, Trade minister Jean-Lucien Bussa Tongba wrote in a letter to the prime minister dated July 6 and seen by Reuters on Wednesday.
Sierra Leone jumps in for exploration offering (Energy Voice)
Sierra Leone is in the midst of a licence round as it aims to cash in on a return of interest to the energy sector. Petroleum Directorate of Sierra Leone (PDSL) director general Foday Mansaray struck a bullish tone in comments to Energy Voice last week. Sierra Leone launched the round on May 18, he said. “We saw the positive oil prices and realised this was a good time to take action. Europe is thinking again about energy security and where energy supplies will come from,” he said. The West African state aims to “fill that void. The opportunity is now.”
African trade and integration
UNCTAD urges African countries to rethink export diversification to survive economic shocks (UNCTAD)
African countries must diversify their exports to survive economic shocks from global crises such as the COVID-19 pandemic and the war in Ukraine, says the United Nations Conference on Trade and Development (UNCTAD). In its Economic Development in Africa Report 2022 published on 14 July, UNCTAD says African countries can diversify their economies through boosting exports of high-value services, expanding private businesses’ access to financial services, tapping into new financial technologies and implementing effective policies. Despite decades-long efforts to diversify, 45 out of the continent’s 54 countries remain dependent on exports of primary products in the agricultural, mining and extractive industries. UNCTAD considers a country to be dependent on commodities when these products make up more than 60% of its total merchandise exports. The report outlines how African countries can rethink efforts to diversify their economies.
AfCFTA: Inconclusive rules of origin, trade in services delay commencement – NAC (Daily Sun)
Secretary, National Action Committee on African Continental Free Trade Agreement (AfCFTA), Francis Anatogu, has disclosed that trade was yet to commence due to delays in the conclusion of negotiations on rules of origin and trade in services. Anatogu, who made the remark while speaking on the theme: “Implementing AfCFTA in Nigeria – the journey so far,” noted that although official commencement date of trading under the AfCFTA was January 1, 2021, as at May 31, 2022, rules of origin have been concluded on 88 percent of tariff lines.
However, the outstanding rules of origin on automobiles, textile and apparels, fisheries, sugar and tobacco, under discussion centre on how to treat goods produced within free trade zones and special economic zones.
The Financial System Africa Needs - Vera Songwe (Project Syndicate)
For African economies that have yet to recover from the COVID-19 pandemic, Russia’s war in Ukraine could not have come at a worse time. The economic wounds of the previous crisis had been stitched up, but more time was needed for them to heal, let alone for the scars to fade. Now, commodity-price spikes and supply-chain disruptions are compounding inflationary pressures, causing currencies to depreciate and food and fuel costs to skyrocket. Since the war began, oil prices have reached their highest levels since 2008, wheat prices have soared to 14-year highs, and fertilizer prices have surged by nearly 30%. These macro trends have high human costs. As many as 25 African countries depend on wheat imports from Russia and Ukraine.
With grain products often accounting for a large share of local diets, the risk of hunger and undernourishment is rising fast – and not just for low-income households.
But many African governments have little scope to respond to this escalating crisis. Pandemic-related uncertainty led to massive capital flight from the continent, output shrank, and countries’ debt burdens grew heavier. Over $40 billion in debt repayments were due in 2021, and debt service is expected to exceed 7% of Africa’s GDP in 2022 even before the Ukraine crisis and the US Federal Reserve’s interest-rate hikes.
SADC Ministerial Task Force Reviews Policies and Strategies for Enhancing Growth in Regional Trade (SADC)
Implementing the Southern African Development Community (SADC) Industrialisation Strategy and Roadmap (2015-2063) remains a key priority, therefore, there is a need to create a conducive environment for trade to continue flourishing in the region, Honourable Mark Katsonga Phiri, Minister of Trade and Industry of the Republic of Malawi, said.
Hon. Minister Phiri said this at the official opening during the 22nd Meeting of the Ministerial Task Force on Regional Economic Integration in Lilongwe, the Republic of Malawi, on 9th July 2022. He commended SADC Member States for their pragmatic decision to open up and resume economic and social activities while observing all necessary measures and precautions against the spread of the COVID-19 pandemic.
The Ministers urged Member States to incorporate some of the recommendations of the Industrial Upgrading and Modernisation Programme and Gaps analysis study which was undertaken in 2021 by the Secretariat, including establishment of industrial intelligence units and the Industrial Observatory functions in their national industrialisation programmes. On the same note, the Ministers directed the Secretariat to continue working with the SADC Business Council in implementing the study recommendations that require the involvement of the private sector.
Member States of the Southern African Development Community (SADC) need to step up efforts to accelerate intra-regional trade by addressing challenges that humper the region’s quest for increased trade in the SADC region. Honourable Mark Katsonga Phiri, Minister of Trade and Industry of the Republic of Malawi and Chairperson of the 33rd Committee of Ministers of Trade has said this during the official opening of the 33rd meeting of the Committee of Ministers of Trade which was held in Lilongwe, Republic of Malawi on the 8th July 2022. The Minister urged Member States to address issues that include low supply capacity, limited industrialisation, poor logistics for movement of goods and services, protectionism, poor infrastructure and non-harmonisation and cooperative mechanisms for cross-border infrastructure, imposition of non-tariff barriers including stringent rules of origin, poor implementation of trade commitments, among others.
The Ministers hailed the entry into Force of the Protocol on Trade in Services and urged Member States to widely publicise the Protocol; directed the Secretariat to fast track the development of the Regional Implementation Action Plan and urged those Member States that need technical assistance in the development of their National Implementation Action Plans to submit their requests to the Secretariat. The Ministers approved the SADC Simplified Trade Regime Procedure Manuals and related training materials which are aimed at building capacity of customs officials and other stakeholders and raise awareness on the SADC Simplified Trade Regime Framework.
East Africa’s Ports Step Up Competition Over Indian Ocean Trade Market Share: Report (allAfrica)
From the Horn of Africa on the strategic Red Sea to the buoyant ports of Mozambique, East Africa’s ancient “Swahili Coast” provides a logistical nexus between Africa’s massive population centres and other continents. Foreign direct investment is driving expansion and rehabilitation of existing seaports, while entirely new facilities are also being rolled out. Ports that shun partnerships with experienced foreign investors are set to lose out as competition for market share intensifies. One of the flagship infrastructure projects identified by the Government in Kenya Vision 2030 is the development of a new transport corridor linking a new and modern Port of Lamu with Garissa, Isiolo, Maralal, Lodwar and Lokichogio and branching at Isiolo to Moyale at the border with Ethiopia and proceeding to the border with Southern Sudan. The facilities at Lamu port once complete will lead to creation of substantial job opportunities that covers not only direct jobs related to the Port operation but also indirect jobs of all fields (Agriculture, fishery, manufacturing, logistics, transport, trade, commerce, etc.) No tender has yet been issued for the management of this port.
Congo’s entry into EAC doubles regional market (Business Daily)
The Central Bank of Kenya (CBK) has backed the admission of the Democratic Republic of Congo (DRC) as the East African Community (EAC) seventh member, saying the move will boost the regional bloc’s market by half to 300 million people and create new investment opportunities. “The admission of the DRC as the seventh member—joining Burundi, Kenya, Rwanda, South Sudan, Tanzania, and Uganda—expands the market size of the EAC, offers a path between the seas for trade and cultural integration, as well as new investment and employment opportunities for a dynamic population of about 300 million,” CBK said in a statement on Tuesday.
East African GDP jumps to Sh29trn after DRC joins bloc (Business Daily)
Central Bank welcomes DRC’s admission into the East Africa Community (Capital FM)
Trade finance grows for Ecobank as Africa emerges from pandemic (African Business)
With the global trading system emerging from the impact of Covid-19, the financial instruments and products that are used by companies to facilitate international trade and commerce – are becoming ever more important. Trade finance revenues for the world’s top transaction banks were up by 10% in 2021 and are set to grow further this year, after almost a decade of decline or stagnation, according to figures from research company Coalition Greenwich. The world’s 10 largest transaction banks posted a combined revenue of $6.3bn from trade finance in 2021, up from $5.7bn in 2020, surpassing pre-pandemic levels. In the second half of 2021, banks’ trade finance revenues grew by 13% year on year, driven in part by higher post-pandemic trade volumes and banks efforts to finance trade on behalf of SMEs, according to S&P Global.
The Board of Directors of the African Development Bank Group has approved a $175 million Trade Finance Funded Risk Participation Agreement facility between the African Development Bank and Trade & Development Bank (TDB). The agreement is expected to boost intra-Africa trade, promote regional integration, and contribute to the reduction of the trade finance gap in Africa. The Bank will provide liquidity of up to 50% (the other 50% to be matched by TDB), to Issuing Banks on a risk share basis, to support trade activities of local corporates and SMEs in member countries of the Common Market for Eastern and Southern Africa (COMESA). Together, the two institutions will provide a ticket size of $350 million to support trade transactions. This is a strategic effort by the African Development Bank to support the Africa Continental Free Trade Area’s agenda of reshaping markets and economies across the region by helping to boost output in the services, trade, manufacturing, and natural resources sectors.
African Ministers of Finance, Economy, Development and Environment are expected to meet ahead of the 2022 United Nations Climate Change Conference (COP27), and to participate in Egypt – International Cooperation Forum to ensure an African led position at the global meeting. Egypt is the host of COP27 and the Finance Day that will take place in November 2022. Ahead of these events, a high-level meeting of African Ministers with related mandates is expected to take place beforehand to deliver an articulate and strong African position. The ministers’ meeting scheduled for 7-9 September 2022, in Egypt, is being organised by the Government of the Arab Republic of Egypt with the support of the United Nations Economic Commission for Africa. Key international and regional partners will be invited to engage in the discussion and contribute to the development of key messages to be taken to COP27. African countries have called for delivery on finance to accelerate a green transition- and while development partners need to step up through upscaling public finance, the conference will also discuss how to better channel private finance into climate resilience on the continent and de-risk investments through Multilateral Development Banks’ contributions.
The meeting is an opportunity to address the continent’s specific challenges, potential, financing needs and innovative instruments for its development. African ministers will discuss Africa’s needs, ambitions and challenges regarding climate finance which is paramount to face challenges prevailing in the global environment. Egypt has already explored numerous innovative financing initiatives- we need to ensure that we can deliver a framework which allows new and additional resources to be invested in climate resilience from both public and private sources” said Mohamed Maait, Minister of Finance of Egypt.
Towards Climate Resilient Ocean Economies in Africa (AfDB)
Sustainable economic development based on the oceans and meeting the aspirations of individual countries, the African Union, economic actors and the African public has many different labels. The choice of either of the terms ‘blue’ or ‘ocean’ linked to ‘economy’ are used in different contexts, but the key attributes desired include minimizing damage to the environment and natural assets, generating benefits and opportunities equitably for people, and promoting resilience to climate change. This report uses the terms ‘blue economy’ and ‘ocean economy’ synonymously – as the business, local and national economies, citizens, beneficiaries and potential victims are the same. Natural ecosystem assets generate goods and services which are the primary resources of the blue or ocean economy, with annual benefit flows estimated at $20.8 billion for ten Western Indian Ocean countries and $47 billion for the five North African countries bordering the Mediterranean. The national dependence on ocean economy sectors varies, with the highest levels for Small Island States, where the estimated ocean output may be as high as 50% of Gross Domestic Product (GDP).
Impact of COVID-19 pandemic on African timber and wood products trade (AfDB)
Globally, the coronavirus pandemic (COVID-19) is killing thousands of people daily and has resulted in production and supply chain disruptions, termed as ‘supply-demand shocks’. The pandemic has caused ripple effects across all economic sectors including those linked to natural resources, manufacturing, services and entertainment. The impacts of the pandemic are being felt in Africa particularly because most national economies are commodity-dependent, and demand for commodities has generally declined over the first quarter of 2020 and may continue to decline if the future remains uncertain.
Global economy
Emerging markets need new engines of growth (Atlantic Council)
In 2022, the difference in growth between emerging and advanced economies is projected to shrink to its smallest level this century. Forecasts suggest developing nations will grow at just over half a percent more than advanced economies, ending a two-decade period during which emerging markets (EMs) consistently grew much faster than their rich counterparts. Prior to the 1990s, it was unusual for EMs to persistently grow more than their rich counterparts. From 1945 until 1995 fewer than one-third of developing economies grew faster than developed economies at any given time. Periods of explosive EM growth during one cycle were often reversed in the next. In the late 1990s, that changed. Starting at the turn of the century, EMs experienced a period of rapid growth that, if maintained, would have converged their income levels with advanced economies in a single generation. Unfortunately, it seems as though the era of rapid EM growth is over. Now, many of the world’s lesser developed economies risk being ejected from this economic convergence process. A confluence of factors, including trade conflicts, a global pandemic, supply chain breakdowns, rising interest rates, and the war in Ukraine, have dismantled the engines of growth that had supported their rapid development throughout the 2000s and 2010s. These factors may not only halt, but also reverse this trend in the 2020s.
ICC calls on the G20 to take the risk of a global debt crisis off the table (ICC)
Ahead of this week’s G20 Finance Ministers’ meeting, ICC is calling on G20 leaders to avoid a global debt crisis by suspending debt payments for all countries in need. Governments in emerging economies have very limited – if any – fiscal space to support business and families in dealing with the worrying inflationary pressures prevailing in global food, agricultural and energy markets. The wave of economic shocks caused by the war in Ukraine risks precipitating a widespread debt crisis in emerging markets which could result in further disruption to global trade and supply chains – thus placing a further drag on growth in advanced economies. As a recent report from the United Nations’s Global Crisis Response Group makes clear, there is now an acute risk of severe hunger in many developing economies absent of action to ensure that governments have the fiscal space to provide appropriate social safety nets.
Facing a darkening economic outlook: How the G20 can respond (IMF Blog)
When the G20 last met in April, the IMF had just cut its global growth forecast to 3.6 percent for this year and next—and we warned this could get worse given potential downside risks. Since then, several of those risks have materialized—and the multiple crises facing the world have intensified.
Recent indicators imply a weak second quarter—and we will be projecting a further downgrade to global growth for both 2022 and 2023 in our World Economic Outlook Update later this month. Indeed, the outlook remains extremely uncertain.
That is why we need decisive action and strong international cooperation, led by the G20. Our new report to the G20 outlines policies that countries can use to navigate this sea of troubles.
Improved online platform launched to ease access to product information (WTO)
The new ePing SPS & TBT Platform facilitates the tracking of sanitary and phytosanitary (SPS) and technical barriers to trade (TBT) measures, making it easier for users to notify and follow changes in product requirements.
The platform brings together all stakeholders involved in the process of notifying, consulting and coordinating on product requirements at the national and international level. The new ePing makes it easy for businesses, particularly micro, small and medium-sized enterprises, to track a specific sector or market through filtering options and offers several communication features to share information on and discuss notified measures.
Most major aid agencies are now transparent, but for how long? (Publish What You Fund)
The 2022 Aid Transparency Index reveals that more aid organisations than ever before are publishing good quality information and score “very good” or “good” in the global ranking. However, the whole data set could be under threat as the Aid Transparency Index, the only tool driving tangible improvements in data quality, is set to close for lack of funding.
Produced by Publish What You Fund, the Index is the only independent measure of aid transparency among the world’s major aid donors. At a time of climate, hunger, health and debt crises, and some worrying trends in the way official development assistance (ODA) is counted, transparency is more important than ever.
Improvements in the timeliness and quality of aid data, coupled with advances in tools and dashboards to enable easier access and analysis, have led to a dramatic rise in use of the data for activities as diverse as tracking global health finance investments, monitoring Covid spending, and helping recipient government’s track flows alongside their national spending.
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Local news
AfDB to lead Zim debt clearance roadmap (The Herald)
African Development Bank (AfDB) president Dr Akinwumi Adesina has formally accepted President Mnangagwa’s request to lead Zimbabwe’s debt clearance strategy, which is key for Harare to unlock fresh funding from international financial institutions (IFIs).
The AfDB president met President Mnangagwa at State House in Harare yesterday where he formally informed him that he had accepted a role to champion the debt and arrears clearance process because the region and the continent needed a stronger Zimbabwe.
Solidarity calls on Parliament to remove obstacles to private power generation (Engineering News)
Trade union Solidarity says it has submitted a petition to Parliament, demanding that all regulatory or legislative obstacles to unlimited private power generation be removed as a matter of urgency.
“By 2035, South Africa will need approximately 68 000 MW of private generation just to replace this coal fleet. We therefore have to move much faster just to maintain the current level of generation. For this reason, we urgently need to facilitate and encourage private generation,” Solidarity Research Institute head Connie Mulder states.
Niger Delta stakeholders harp on companies, host communities' cooperation for sustainable development (Tribune Online)
Members of Civil Society Organisation (CSO), community leaders and other stakeholders in the Niger Delta region on Tuesday harped on the mutual relationship among companies operating in the area and their host communities, as a panacea to sustainable development and a lasting solution to security in the environment.
Welcoming participants to the meeting, the convener of the event and Coordinator, Voice of the Earth Initiative (VOTI), Chief Sunday Ajele, said the meeting was organised to ensure that companies, especially the Okomu Oil Palm Company Plc, and its host communities live in harmony devoid of any infringement by the communities and the company on the mutual rights of the parties.
Ethiopia creditors to discuss debt restructuring on Monday (Reuters.com)
Ethiopia's creditors' committee will meet on Monday, a source briefed on the matter said on Tuesday, moving the cash-strapped African country a step closer towards restructuring its debts under a common framework set up by the Group of 20 economies.
The International Monetary Fund, the World Bank and others are pushing China and private creditors to accelerate work on debt treatments sought by Ethiopia, Chad and Zambia after glacial progress over the past year and a half.
IMF Managing Director Kristalina Georgieva told Reuters last week it was crucial to jumpstart a process that had failed to deliver a single result thus far, given worsening debt problems facing developing countries and even nations with middle-income economies.
Morocco: African Development Bank Commits €87 Million Loan to Widen Social Protection and Strengthen Health Services (African Business)
The Board of Directors of the African Development Bank Group (www.AfDB.org) approved an €87 million loan to implement the Support Program for the Generalization of Social Coverage in Morocco. The primary objective of this operation is to consolidate the foundations of a viable social protection program based on an integrated and inclusive approach. The program will contribute to extending social protection, particularly for early childhood, young people, and the self-employed.
African trade and integration news
New report highlights the leading role of cities in Africa’s regional economic integration (United Nations Economic Commission for Africa)
A new report by the United Nations Economic Commission for Africa (ECA) highlights the leading role of cities in unlocking economic gains made available through regional economic integration, particularly under the African Continental Free Trade Area (AfCFTA) agreement.
Launched yesterday, the report is the first piece of comprehensive research to assess the linkages between Africa’s rapid urban transition and regional trade integration. It seeks to answer several critical questions, including how African cities can benefit from AfCFTA, what strategic investments are needed for cities to drive accelerated regional trade integration and how AfCFTA may transform cities and spatial development across the continent.
In response to these questions, the report provides concrete steps for an increased policy focus on investment in Africa’s cities to realise the full economic potential from AfCFTA, thereby boosting economic growth, reducing poverty and fostering inclusion.
African Development Bank ranks first on Global Aid Transparency Index (African Development Bank)
Publish What You Fund, the global campaign for aid and development transparency, has named the African Development Bank the most transparent organisation in the world.
The Bank’s Sovereign Portfolio now ranks first out of 50 global development institutions in Publish What You Fund’s 2022 Aid Transparency Index, released today with a top score of 98.5.
The African Development Bank achieved the highest score in the Aid Transparency Index’s ten-year history and moved into the top spot from its fourth-place ranking in 2020. The Index is the only independent measure of aid transparency among the world’s major development agencies. The Bank has remained consistently in the ‘very good’ category since 2014. It has consistently demonstrated its commitment to increased transparency and its extraordinary progress over the past 10 years in providing high-quality information and becoming more transparent.
Member States of the Southern African Development Community (SADC) need to step up efforts to accelerate intra-regional trade by addressing challenges that humper the region’s quest for increased trade in the SADC region.
The Minister urged Member States to address issues that include low supply capacity, limited industrialisation, poor logistics for movement of goods and services, protectionism, poor infrastructure and non-harmonisation and cooperative mechanisms for cross-border infrastructure, imposition of non-tariff barriers including stringent rules of origin, poor implementation of trade commitments, among others.
SADC Executive Secretary, His Excellency Elias Mpedi Magosi underscored the importance of consolidating the SADC Free Trade Area (FTA) which is key to collective efforts to liberalise SADC intra-regional trade in goods and services.
SADC calls for joint sector coordination on pro-employment policies and strategies (SADC)
The Southern African Development Community (SADC) Joint Sector Ministerial Dialogue on job creation was held in Lilongwe, Republic of Malawi, from 8th to 9th July 2022 to promote joint sector coordination for job creation through coherent and harmonised action on employment and productivity across macro-economic and sectoral policies and strategies.
The Dialogue was attended by Ministers and Senior Officials responsible for Ministries of Finance and Planning, Industry and Trade, and Employment and Labour; SADC Business Council, SADC Private Sector Forum (SPSF), Southern Africa Trade Union Coordinating Council (SATUCC) and youth organisations. Representatives from the International Labour Organisation (ILO) and the United Nations Economic Commission for Africa (UNECA) also participated in the Dialogue.
Sadc registers progress on trade and finance programmes (Chronicle)
The Southern African Development Community (Sadc) says steady progress is being achieved on its programmes to facilitate industrial development, investment and trade in goods and services among member States.
This emerged out of the Trade, Industry, Finance and Investment (TIFI) thematic group hybrid meeting held recently to discuss progress on the implementation of the bloc’s programmes to deepen regional economic integration.
According to a joint update from the Sadc directorates of finance, investment and customs and industrial development and trade, 25 percent of the 64 outputs or deliverables from the TIFI Multi-Year Action Plan 2021-2023 have been completed. This has been aided by support from global partners.
Africa looks to private sector to fund ocean climate action (Star Tribune)
The U.N. says many of the financial climate promises made by richer countries are not being committed to in full, meaning that many African nations are unable to take necessary adaptation and mitigation measures against the effect of climate change.
Following on from Africa's Great Green Wall, which spans across the continent's Sahel region, east African nations are now seeking funds for the Great Blue Wall initiative, which aims to protect marine areas across the coastline. Both blue and green finance refers to funding aimed at preventing environmental damage and combating climate change while creating sustainable ecosystems.
Countries on Africa's west coast are increasingly turning to climate funding initiatives to boost livelihoods of oceanside communities, aid biodiversity and take climate action.
Uganda, South Africa Agree to Expedite AfCFTA to Bolster Post-Covid Economic Recovery Efforts (softpower.ug)
The governments of Uganda and South Africa have committed to enhance political, economic and social cooperation. This is contained in a joint communique issued by Okello Oryem, the Ugandan State Minister for Foreign Affairs, and Dr. Naledi Pandor, the South African Minister of International Relations and Cooperation, at the Second Session of the Uganda-South Africa Joint Commission for Cooperation held in Kampala.
To achieve sustainable prosperity, the JCC resolved that both countries should cooperate to expedite the implementation of the African Continental Free Trade Agreement (AfCFTA), which has become more critical to bolstering economic recovery efforts on the Continent post the Covid-19 pandemic.
The two Ministers also reviewed and exchanged views on the status of bilateral relations and expressed satisfaction with progress achieved in various areas of cooperation between the two countries which are contributing to the alleviation of poverty, elimination of inequality and creation of employment.
Africa Needs $424bn to Recover from Pandemic Devastation, Says Adesina (THISDAY Newspapers)
African nations need $424 billion this year to help them cope with the devastation caused by the coronavirus pandemic, according to the Head of the African Development Bank (AfDB), Akinwumi Adesina.
After decades of progress in the continent’s fight against poverty, Covid-19 has now plunged 30 million Africans into “extreme poverty” in 2020, a Bloomberg report stated. Meanwhile, Russia’s war on Ukraine has fuelled inflation and left millions hungry while surging prices along with slowing economic growth are also increasing indebtedness in the region.
The road to COP27: Making Africa's case in the global climate debate - World (ReliefWeb)
The final 2022 Ibrahim Forum Report, '*The Road to COP27: **Making Africa's Case in the Global Climate Debate', *outlines key facts and figures and 15 recommendations for how policymakers, climate leaders and African citizens can articulate Africa's case in the global climate debate.
Commenting on the final 15 recommendations, Mo Ibrahim, Founder and Chair of the Mo Ibrahim Foundation, said: "It is clear that the current climate agenda is failing Africa. When over 600 million in Africa still lack access to electricity, equivalent to twice the total US population, we need to pause and think very hard."
The report concludes with a set of recommendations issued from the Ibrahim Governance Forum debates to inform COP27 preparatory works and decisions, as well as any other global climate-related debates on the way to COP27 and beyond. By taking these recommendations on board, policymakers can ensure that going forward climate commitments take into account the continent's specific context, including the Africa's economic development path, and acknowledge the important role the continent can play globally.
SMEs: British firm unveils $25m Africa-focused trade access programme (New Telegraph Newspaper)
The British International Investment (BII) and INOKS Capital announced first-of-its-kind Africa-focused Trade Access Programme (TAP) to help increase needed liquidity to SMEs and target trade intermediaries in Africa. TAP launched with $25 million capital from the BII.
Africa Business Communities reports that in addition to fostering trade, job creation, local income, and positive impact generation on climate change, TAP will boost economic inclusion by specifically seeking to improve access to finance for women by targeting investments that qualify for the 2X Challenge.
The platform will also support women-owned and led SMEs while also backing climate positive trade, which will help boost productivity across local and vital value chains, increase food security and accelerate sustainable and inclusive economic growth.
Adopting Kiswahili as Africa's official language will unite, strengthen continent – Tanzanian Envoy (Nigerian Observer)
Abuja – Dr Benson Bana, Tanzanian High Commissioner to Nigeria on Tuesday, said that the adoption of Kiswahili as Africa’s official language by the African Union (AU) will help unite, strengthen the continent and bridge diversities.
Bana said that the adoption of a working language among African countries will foster the integration of the AU agenda and the realisation of the African Continental Free Trade Agreement (AfCFTA).
Global economy news
US Has Cost the World More Than $1.9 Trillion in Climate Damages Since 1990, Study Finds (EcoWatch)
Climate activists have long argued that countries that have contributed the most to the climate crisis owe something to countries that have released relatively few emissions yet still suffer the effects of rising temperatures.
Now, a first-of-its kind study from Dartmouth College backs this argument with hard data. The study, published in Climatic Change, calculates for the first time the financial damages that emissions released by certain nations have caused for others.
When it comes to responsibility for climate damages, the U.S. leads, having cost other nations more than $1.9 trillion in economic losses related to the climate crisis, The Guardian reported. That’s 16.5 percent of the total economic losses calculated by the study.
Russia Calls on BRICS Nations To Adopt New Payment Methods (teleSUR English)
Russia's Deputy Chairman of the Security Council, Dmitry Medvedev, called on BRICS to turn to new payment methods as Russia looks to overcome global dollarization and cope with the euro's loss of value.
He also said that "in the future, it is also possible to establish a new reserve currency for the BRICS countries. The US dollar, euro, and pound sterling are not enough for the modern world."
As virus spreads ‘freely’ COVID-19 ‘nowhere near over’: Tedros (UN News)
Rising COVID-19 cases are not only putting further pressure on already stretched health systems and workers but also triggering an “increasing trend of deaths”, World Health Organization (WHO) chief Tedros Adhanom Ghebreyesus told journalists at the regular weekly press briefing on Tuesday.
“The virus is running freely, and countries are not effectively managing the disease burden based on their capacity, in terms of both hospitalization for acute cases and the expanding number of people with post COVID-19 condition, often referred to as long-COVID,” he said.
He highlighted a disconnect in COVID-19 risk perception between scientific communities, political leaders and the general public, describing it as “a dual challenge of communicating risk and building community trust in health tools and public health social measures like masking, distancing and ventilation”.
Market values are destroying nature: UN report (FRANCE 24)
A major UN report warned Monday that a global economy focused on short-term profit is wrecking the planet and called for a drastically different approach as to how we value nature.
Without this shift, universally accepted goals of sustainable development and greater equity will remain out-of-reach, the science advisory panel for biodiversity, known as IPBES, found.
"The way we understand economic growth is at the core of the biodiversity crisis," Unai Pascual, an ecological economist at the University of Bern and co-chair of a 139-nation meeting in Bonn that approved the report, told AFP.
Commodity swings could pose 'outsize' hit to economy, says G20 watchdog (Reuters)
The G20's financial watchdog said on Wednesday that commodity markets should be closely monitored, since energy and metal prices swings like those triggered by Russia's invasion of Ukraine potentially pose an "outsize" hit to the global economy.
"The centrality of key energy, metals and food commodities to the functioning of the global economy means that any disruptions to the financing of producers or traders in these markets could have an outsized impact," FSB Chair Klaas Knot said in a statement before a meeting with G20 finance ministers and central bankers in Indonesia.
US, Japan vow joint efforts on Ukraine, trade, food crisis (Devdiscourse)
U.S. Treasury Secretary Janet Yellen and Japan's finance minister agreed Tuesday to cooperate in dealing with challenges from the war in Ukraine and promoting free trade, sustainable energy, and food security. Yellen was visiting Tokyo on Tuesday for talks ahead of a meeting of the Group of 20's financial leaders on the Indonesian island of Bali later in the week. Before beginning her meeting with Finance Minister Shunichi Suzuki, she stressed the importance of effective sanctions against Russia for its invasion of Ukraine and said she hoped to gain the support of Japan and other nations in seeking a price cap on Russian oil that would limit funding going to Moscow's military.
A joint statement issued Tuesday after the talks pledged support for Ukraine in coping with its economic challenges. It also said both sides had welcomed efforts to pursue price caps "where appropriate." A price cap would be aimed at curbing the war's impact on gas and energy prices.
G20 regulator to present first global crypto rules in October (UPI News)
The Financial Stability Board, which includes central bankers and treasury officials from G20 countries, is working on bringing global cryptocurrency regulations to the industry by October.
Such regulations have become a necessity due to the recent collapse of the cryptocurrency market, which led to the loss of billions of dollars.
Great Power Conflict Fuels BRICS Expansion Push (The Diplomat)
Soon after Chinese President Xi Jinping’s emphasized the acceleration of the BRICS expansion process at the 14th BRICS Leaders’ Meeting in Beijing in late June, Iran and Argentina announced they had submitted their formal applications to join the group. Meanwhile, the foreign ministers of Kazakhstan, Saudi Arabia, Argentina, Egypt, Indonesia, Nigeria, Senegal, the United Arab Emirates, Thailand, and other guest countries attended the BRICS Foreign Ministers’ Meeting for the first time in May. All these positive actions are the clear indications that the expansion of BRICS is accelerating.
In the new context of the ongoing conflict between Russia and Ukraine and the intensifying Sino-U.S. competition, the confrontation between the East and the West has become increasingly prominent. Both sides, therefore, want to expand the network of friends and partners, thus consolidating their camps. As emerging economies and great powers in the region, the BRICS countries have a strong motivation to absorb other “node” countries with key strategic locations and booming economies to join the camp. The more intense the East-West confrontation, the stronger the impetus for the expansion of BRICS.
Experts call for defining non-personal data before making laws on it (Economic Times)
The Joint Committee of Parliament (JCP)’s recommendations on non-personal data (NPD) and anonymised personal data in last year’s draft Data Protection Bill will not work till NPD is defined clearly, cybersecurity and policy experts said on Tuesday. Most experts who participated in a panel discussion by not-for-profit Consumer Unity & Trust Society (CUTS) International said that regulation of NPD when the definition of the term itself was still vague would be premature.
They said proper guardrails must be put in place before access to any NPD could be shared.
G20 host Indonesia hopes for progress in finance chief talks despite war friction (Reuters.com)
G20 finance leaders will meet in Bali this week for talks that are due to include issues like global food security and soaring inflation, as host Indonesia tries to ensure frictions over the war in Ukraine do not blow discussions off course.
Russia's invasion of Ukraine overshadowed a meeting of foreign ministers from the Group of 20 major economies last week, as Russia's top diplomat walked out of a meeting and accused the West of "frenzied criticism".
China's foreign trade with other BRICS countries jumps 14.1% yoy in H1 (Global Times)
In the first half of 2022, China's foreign trade with other BRICS countries amounted to 1.64 trillion yuan ($243.8 billion), up 14.1 percent year-on-year, 4.7 percentage points higher than the overall growth rate of the country's foreign trade, indicating the closer trade ties among BRICS countries, data by the General Administration of Customs of China (GAC) on Wednesday showed.
GAC Spokesperson Li Kuiwen said at a press briefing on Wednesday that since the BRICS leaders met in 2009, China's trade with other BRICS countries has become increasingly closer, with the value of imports and exports growing from 960.21 billion yuan in 2009 to 3.17 trillion yuan in 2021, with an average annual growth rate of 10.5 percent.
Our Oceans Are Sick: The Solution Is More Money and More Protection, Says WWF (Impakter)
“WWF supports states to deliver on their commitments under SDG 14 in a variety of ways, including our support for the designation of new marine protected areas, our efforts to curb harmful fisheries subsidies through the World Trade Organization, and our global campaign for a legally binding treaty to address plastic pollution. We also call on states to finalize an ambitious new High Seas treaty to conserve biodiversity beyond national jurisdiction.
As WWF Director-General Marco Lambertini pointed out, we managed to do “tremendous damage” to our oceans that can only be solved by “eliminating pollutiotn and overfishing and immediately start[ing] to responsibly manage and protect all marine life around the world.”
Meanwhile WWF Oceans Practice Lead Pepe Clarke reminded us that the Ocean is a “powerful economic engine,” highlighting that “[c]ompanies and investors risk trillions of dollars due to declining ocean health and climate change if business as usual continues.”
FAO Director: Immediate Efforts Needed to Reduce Global Threats to Agrifood Systems (FoodSafetyTech)
The challenges undermining global food security call for a complex approach embracing investment, policy reforms and better use of resources, Qu Dongyu, Director-General of the Food and Agriculture Organization of the United Nations (FAO) told a key meeting of the G20 on July 10.
“Recent global events, from the COVID-19 pandemic to the climate crisis, multiple conflicts around the world and the war in Ukraine, have all heavily affected agrifood systems in multiple ways,” Qu told the G20 Sherpa meeting of senior government representatives.
The war in Ukraine has added to an already challenging situation and could lead to an increase of 13 million more chronically undernourished people this year, and 17 million more in 2023, according to FAO estimates.
The challenges of supply chain regulation – GIS Reports (Geopolitical Intelligence Services AG)
The increasing complexity of global supply chains has raised concerns that some companies, taking advantage of opaque interactions with their suppliers, are indirectly abusing human rights or harming the environment. In the area of corporate governance and “soft law,” attempts have already been made to introduce more due diligence into firms’ decision-making. But recent “hard law” initiatives have gone further, especially in European countries and at the level of the European Union. Such efforts, however worthy of their goals, face significant challenges.
European efforts to police global supply chains are likely to be limited in their effectiveness while jeopardizing economic development.