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SA Canegrowers maintains sugar tax increase will destroy jobs (Engineering News)
Ahead of Finance Minister Enoch Godongwana’s Budget Speech on February 21, industry body the South African Cane Growers’ Association (SA Canegrowers) has called on National Treasury to prioritise measures to aid economic recovery and job retention in the sector, including by not increasing the Health Promotion Levy (HPL). It has been a trying five-year period for the sugar industry, SA Canegrowers says, adding that an increase in the levy, also called the sugar tax, would be destructive and unjustifiable.
Tanzania calls for protection of Indian Ocean beaches from pollution (CGTN Africa)
Tanzanian authorities on Monday called for efforts to protect Tanzania’s beaches along the Indian Ocean from pollution. “The beaches are often littered with garbage, including used plastics, which not only pollute the beaches but also present an eyesore for visitors,” Selemani Jafo, minister of State in the Vice President’s Office responsible for Union and Environment, said in a statement. Jafo assigned the local government the responsibility to ensure robust pollution control measures on the beaches. According to the Tanzania National Guidance for Plastic Pollution Hotspotting Report, 29,000 tonnes of plastics were released into the Indian Ocean, rivers, and lakes in 2018.
TanTrade: International trade forums pay off (Tanzania Daily News)
Trade Development Authority (TanTrade) says trade forums are paying off due to their contribution in wooing domestic and international investors to determine the best investment options. The forums, according to TanTrade, are acting as platforms like markets where sellers and buyers meet and enter into an agreement—so ultimately, it’s like the forces of supply and demand that, in this case, determine the best investment criteria modalities.
“TanTrade leads these efforts intending to facilitate trade between Tanzania and other African countries. “Like today [Sunday] we organised Tanzania and Egypt forum. Forums like this help exchange knowledge and explore new opportunities for sustainable business,” Ms Khamis told Business Standard. She said for instance DarCairo forum held in Dar es Salaam achieved its goal of strengthening strategic trade partnerships between the two.
DRC state miner Gecamines plans reform of copper, cobalt ventures (The East African)
The Democratic Republic of Congo’s (DRC’s) state miner is broadening a push to extract more from its copper and cobalt joint ventures, seeking to negotiate for higher stakes across the board to gain leverage in management of some of its biggest mines. Gecamines is also leveraging existing shareholding in mines to negotiate off-take contracts for the purpose of trading copper and cobalt on its own. The miner wants more local executives on boards governing joint ventures to have a greater say in how assets are managed, Guy Robert Lukama, the Gecamines chairman, told Reuters. The plans may mean overhauling some terms of agreements that Gecamines deems unfavorable to capitalise on the world’s scramble for supplies of minerals critical to global green energy transition.
Ghana and Nigeria to witness the slowest economic growth in West Africa 2024 – AfDB (Nairametrics)
The economies of Ghana and Nigeria are poised to see the slowest economic growth in 2024 when compared to their peers in the West African region. Overall, the West African region is expected to grow by 0.8% to 4.0% this year and 4.4% in 2025 according to the AfDB macro-economic performance outlook for 2024.
The African Development bank stated that aside Nigeria and Ghana, every other country in the sub-region is estimated to grow by at least 4% in 2024 with embattled Niger leading the pack at 11.2% followed by Senegal and Ivory Coast at 8.2% and 6.8% respectively. Despite these challenges, the report suggests that the strategic redirection of resources—specifically, the $5 billion formerly allocated to fuel subsidies between 2022 and May 2023—towards vital social infrastructure, holds the promise of yielding significant long-term benefits over the immediate discomforts.
Wamkele Mene re-elected as AfCFTA secretariat boss (Africa Feeds)
South African Wamkele Mene has been re-elected as the Secretary General of the AfCFTA Secretariat. African Heads of State and Government at the African Union’s summit last weekend in Addis Ababa, Ethiopia, re-affirmed their confidence in Mene, re-appointing him for another four year term. Mene was first elected in February, 2020 for the top job after vying for the position with other shortlisted persons.
Mene has been operating from Ghana’s capital, Accra which is the host country for the secretariat. The continental free-trade zone is the world’s largest free trade area uniting 1.3 billion people and creating a $3.4 trillion economic bloc. The free trade zone is considered a critical action to usher Africa into a new era of development. The African Continental Free Trade Area (CFTA) will have 54 African Union (AU) members. African countries only do about 16 per cent of their business with each other with the African Union hoping to change this trend. The CFTA is a major project of the AU’s long-term development plan Agenda 2063, which emphasis the need to ease trade and travel across the continent.
Addressing Africa’s debt dilemma: The role of ECAs and new strategies (Trade Finance Global)
The African economy has suffered three major shocks in quick succession, namely, the COVID-19 pandemic, spillovers from geopolitical tensions and supply chain disruptions. This, coupled with widening fiscal deficits, exchange rate volatility and natural disasters have eroded the fiscal space of African economies and increased debt levels.
The rising debt in Africa and the high risk of sovereign default hampers the activities of export credit agencies (ECAs) on the continent. However, this challenge has also presented opportunities for flexibility, for example, cover for down payments, higher percentages of cover for both political and commercial risks, as well as longer tenors. From an industry viewpoint, the ECIC portfolio has shifted away from its traditional mining focus. Currently, power generation leads as the top sector, accounting for 45.8% of total exposure, with construction following closely at 40%.
EAC focuses on renewable energy sources (Tanzania Daily News)
The East African Community (EAC) partner states have reaffirmed their commitment to enhance energy efficiency and exploit wind, solar, and geothermal energy as sustainable energy sources for the region. According to a statement posted on the community website, partner states have subsequently embarked on various initiatives to tap into the potential of renewable energy and energy conservation. The initiatives include the review of national renewable energy laws, implementation of energy management regulations, national strategies and standards for energy efficiency and renewable energy, and promotion of energy efficiency and conservation.
EAC: Uganda no longer the ‘small boy’ (Monitor)
Despite struggling with the high cost of doing business which President Museveni in his end of 2023 address says is a challenge that his government is trying to address, the country’s manufacturing and export sector somewhat managed to stamp its foot prints beyond the national borders. In his speech, President Museveni referenced high energy costs and exorbitant cost of financing as some of the reasons driving the cost of doing business in the country.
Burkina Faso, Mali, Niger juntas confirm plan to form new tri-state confederation (The North Africa Post)
Burkina Faso, Mali and Niger have confirmed their commitment to form a confederation following their ‘exit’ from the regional bloc ECOWAS and called to “urgently” draft provisions ensuring the free movement of people and goods between the three West African countries.
A trilateral meeting of ministerial delegations on 15 February also recommended expanding the Alliance of Sahel States (AES) objectives in diplomacy and economic development. The AES was created in September 2023, a few months after the military coup in Niger. They “reaffirmed their commitment to advancing resolutely in the process of implementing the AES and creating the Tri-State Confederation,” the Malian foreign ministry said in an online post. Burkina Faso, Mali and Niger last month announced their withdrawal from the Economic Community of West African States (ECOWAS) on grounds of what they said were illegal and inhumane sanctions.
ECA’s Gatete advocates for skills-based education for Africa’s technological advancement (UNECA)
Speaking at the 2024 edition of the annual ECA Africa Business Forum (ABF2024), held in Addis Ababa, Ethiopia, on 19 February 2024, he highlighted the importance of shifting the focus of education to address its relevance and inclusivity in the digital age. Claver Gatete, Executive Secretary of the Economic Commission for Africa (ECA) highlighted the potential of Africa to become a global solutions powerhouse through concentrated efforts in science and technology.
While acknowledging the significant growth in broadband access and the mobile money market’s value at $836.5 billion, Mr. Gatete stressed that these achievements pale in comparison to the vast potential available. He raised crucial questions about bridging the digital skills gap for 650 million workers by 2030 and generating millions of jobs for Africa’s youth. “The potential of Africa’s digital economy is enormous. However, realizing this potential rests on closing critical gaps in digital skills, data generation, and utilization, as well as the requisite infrastructure,” he added.
37th AU Summit: African Union takes steps to address Education Challenges in Africa (AU)
The achievement of Aspiration 1 of Agenda 2063 for “A prosperous Africa based on inclusive growth and sustainable development” requires that Africa makes significant investments in education with the aim of developing human and social capital through an education and skills revolution emphasizing innovation, science, and technology. Even with a substantial increase in the number of African children with access to basic education, a large number still remain out of school. This reality calls for concern.
The AU, through its Continental Education Strategy for Africa (CESA), is vying to expand access not just to quality education, but also to education that is relevant to the needs of the continent given that the continent’s population is rapidly increasing. The CESA aims to reorient Africa’s education and training systems to meet the knowledge, competencies, skills, innovation, and creativity required to nurture African core values and promote sustainable development at the national, sub-regional and continental levels.
Volkswagen Africa builds 1.5-millionth export vehicle (Engineering News)
Volkswagen Group Africa (VWA) this week celebrated building the 1.5-millionth vehicle built at the Kariega plant for the export market. The milestone vehicle, a Polo GTI destined for the UK, also marked the 21 165th vehicle built for export this year. The Kariega plant assembled 101 557 Polos for export last year. The plant’s record for export units in one year was in 2019, when the team built 108 422 vehicles for export markets. VWA has been building vehicles for export since 1992, including models such as the Jetta and Golf. Currently the Kariega plant is the sole manufacturer of the Polo, exporting this vehicle to 38 markets worldwide.
African Union imposes historic ban on cruel donkey skin trade (Down to Earth Magazine)
Donkeys are critical to millions of people and the global trade in the animal’s skin undermines global efforts to achieve at least nine of the 17 SDGs A historic ban on the trade in donkey skins has been agreed upon by the African heads of state. This agreement, announced on the concluding day of the African Union summit in Ethiopia, outlawed killing of donkeys in the African continent for their skin.
This is a significant outcome following the Dar es Salaam declaration adopted at the first AU-IBAR Pan-African Donkey Conference in December 2022. The statement acknowledged the socioeconomic significance of donkeys in Africa. It had demanded for an African Union Commission (AUC) resolution to be passed in favour of a 15-year ban on the commercial killing of donkeys for their skins. Other demands included the creation of an Africa donkey strategy for donkey production and productivity, and the inclusion of donkeys in the global development agenda.
In face of climate change, AfDB invests $15m to stimulate clean technologies (Afrik 21)
With pollution and natural disasters on the rise across Africa, the time has come for concrete solutions. For the African Development Bank (AfDB), one of the most effective approaches is the promotion of clean technologies, i.e. technologies that do not pollute, but rather help to reduce the environmental impact of activities.
Through its Clean Technology Fund (CTF), the AfDB identifies and supports all initiatives in this field. To this end, the financial institution based in Abidjan, Côte d’Ivoire, has injected $15 million into the capital of the Mauritius-based Trade and Development Bank of Eastern and Southern Africa (TDB). It launched its Green+ Class C shares (a mechanism to attract institutional investors) in 2022, at the 27th Conference of the Parties on Climate (COP27) in Egypt.
The aim is to “stimulate investment in clean technologies on the continent, in particular for the large-scale development of low-carbon solutions that offer significant potential for reducing greenhouse gas emissions over the long term”, says the AfDB. The $15 million will therefore be used to design and transfer digital tools and Internet of Things (IoT) to 25 countries vulnerable to climate change.
DDG Hill emphasizes role of trade in fostering access to digital finance (WTO)
Deputy Director-General Johanna Hill emphasized on 16 February the role trade can play in unleashing the benefits of digitalization, including access to digital finance. She was participating in a digital finance conference organized by the United Nations Institute for Training and Research (UNITAR). DDG Hill noted that trade, especially in services, is an important part of the digital economy. She pointed out that global exports of digitally delivered services reached USD 3.82 trillion in 2022. This is an almost fourfold increase in value since 2005 and accounted for 54 per cent of total global services exports. Of these, digitally traded services in the financial sector accounted for 16 per cent.
Red Sea attacks: What trade experts have to say about the shipping disruptions (WEF)
The Red Sea has long been a vital waterway for international trade. Yet since last fall, the Houthi group in Yemen has been attacking shipping vessels in the Red Sea, causing turmoil in one of the world’s most important waterways. In response to the assaults, which were launched following the outbreak of war in Israel and Gaza, a coalition of Western countries has retaliated against Houthi targets and deployed naval forces to protect commercial ships.
Zera Zheng, Global Head of Business Resilience Consulting, Maersk: “The Red Sea has become a hotspot of geopolitical tension due to Houthi militants targeting commercial vessels, with over 33 attacks reported since 19 November 2023. These disruptions threaten a key maritime route essential for a significant share of global container traffic and over $1 trillion in annual merchandise. In response, the US and EU spearheaded Operations Prosperity Guardian and Aspis to safeguard navigation and trade flows, yet challenges from the Houthis’ deployment of drones and missiles and vessel tracking capabilities remain.
“The Suez Canal/Red Sea, vital for around 30% of the world’s container traffic, has seen disruptions leading companies to reroute around the Cape of Good Hope. This situation has led to an immediate contraction in market capacity and a surge in shipping rates, with significant impacts on global trade networks and economic stability.
Lars Karlsson, Maersk’s Global Head of Trade and Customs Consulting, and Rico van Leuken, Maersk’s Global Head of Solutions and Services, contributed to this statement.
Simon Evenett, Founder, St. Gallen Endowment for Prosperity Through Trade: “To date, the harm to the global economy is modest. Chinese shipping lines haven’t given up on the Suez Canal route. Although shipping rates have risen, they remain well below pandemic-era peaks. The New York Fed’s index of Global Supply Chain Pressure has barely moved. Important as it is, just 11% of global trade flows through the Red Sea. On its own, this isn’t enough to disrupt the world economy. “What’s harder to assess is whether yet more upheaval in trade routes further undermines policymakers’ and corporate trust in long-distance sourcing. A further nudge towards national and regional sourcing can be expected.”
Gaza post-war reconstruction estimated at $20 billion: UN trade body (Reuters)
Gaza will need a new “Marshall Plan” to recover from the conflict between Israel and Hamas, a U.N. trade body official said on Thursday, adding that the damage from the conflict so far amounted to around $20 billion. Speaking on the sidelines of a U.N. meeting in Geneva, Richard Kozul-Wright, a director at trade body UNCTAD, said the damage was already four times that endured in Gaza during the seven-week war in 2014. “We are talking about around $20 billion if it stops now,” he said. Kozul-Wright said the estimate was based on satellite images and other information and that a more precise estimate would require researchers to enter Gaza.
The challenges of achieving the UN Sustainable Development Goals, the perils of the climate crisis and the complexities of leveraging finance were among the topics discussed at a gathering today of ministers from many of the Asia-Pacific Region’s countries most vulnerable to global economic and climate shocks.
A key purpose of the gathering – a special event forming part of the 37th session of the Food and Agriculture Organization of the United Nations (FAO) Regional Conference for Asia and the Pacific – was also to canvass views on what countries need from a proposed network bringing them together to jointly address shared challenges.
“The increasing trends of globalization” provide “many advantages and disadvantages,” for the region’s SIDS (Small Island Developing States), LDCs (Least Developed Countries) and LLDCs (Landlocked Developing Countries), FAO Director-General QU Dongyu said in opening remarks. For example, “small-scale farmers and fishery households enjoy increasing access to global markets yet are also extremely vulnerable to the impacts of global economic turbulence as we have recently seen with the cascading impacts of COVID-19 and the increase in prices of food, agricultural inputs, and energy.”
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South Africa: Budget must address revenue challenges, infrastructure investments (Engineering News)
While there has been a clear effort by the National Treasury to rein in spending and turn the trajectory of government’s financial performance around, the revenue side of the equation has not been able to deliver enough money to fully restore government finances, and this will be a key indicator that must be addressed in the Budget Speech, said business organisation Business Leadership South Africa (BLSA) CEO Busi Mavuso on February 19.
With revenue under pressure, the time at which revenue will exceed expenses before interest payments - a primary surplus - has consistently drifted outward, while gross debt as a percentage of gross domestic product (GDP) has continued moving upward.
“South Africa was meant to achieve a primary surplus during the current year, but there are doubts this will be achieved. If it does not, eyes will turn to whether it can do so in the year ahead, requiring clear spending discipline,” she said in her latest weekly newsletter.
Energy Council of South Africa joins World Energy Council (Engineering News)
The Energy Council of South Africa has become a member of the United Nations-affiliated global body the World Energy Council (WEC), which will serve to strengthen the standing of the Energy Council of South Africa and provide access to a range of international resources and global networks, as well as leading practice across global energy systems.
South Africa is currently grappling with an electricity crisis, which is compounding its triple challenge of poverty, inequality and unemployment, the Energy Council says. The crisis is receiving the highest attention from business leaders through the Business for South Africa partnership with government under the President’s direct oversight. South Africa has also made firm commitments towards transitioning to a net-zero future economy through the Paris Agreement and pending national emissions legislation, it says.
“The Energy Council and its members unequivocally support these commitments and, although the required energy transition will be a significant challenge, it is a significant opportunity for economic growth and clean industrialisation of South Africa.
Uganda signs $400m deal for green hydrogen fertiliser plant (The East African)
Uganda’s Energy Minister Ruth Nankabirwa on Thursday signed a joint development agreement with Industrial Promotion Services (IPS) and Westgass International for a green hydrogen fertiliser plant. The plant will be strategically located at Karuma, Kiryandogo District, within Bunyoro sub-region to leverage its proximity with the 600 megawatts Karuma hydropower plant.
According to Ms Nankabirwa, the significance of the project extends far beyond the realms of agriculture. She said the project aims to reduce the country’s dependence on imported fertilisers, therefore strengthening economic resilience and sovereignty with an estimated investment of about $400 million (Ush1.55 trillion).
Kenya woos Uganda, Rwanda and South Sudan to Mombasa port (The East African)
Uganda, Rwanda and South Sudan have supported Kenya’s move to offer end-to-end logistics services, even as clearing and forwarding agents protested the move that potentially locks them out of business. In the latest efforts to make Northern Corridor more efficient and serve landlocked countries to compete with Dar es Salaam port, officials of the three countries met with their Kenyan counterparts and agreed on a number of issues to make them use Naivasha inland container deport.
Kenya Ports Authority (KPA) had opposed the idea, but it has been given mandate to offer end-to-end logistics services after government completed procurement of more than 250 railway wagons and entered into an agreement with some transporters to offer last mile services through a tender advertised sometime last year. But clearing and forwarding agents say this is a return to compulsory railage of over 11.5 metric tonnes cargo destined for regional countries.
Creation of free zones between Algeria, five African countries in 2024 (Algeria Press Service)
In an address via video conference, at the 41st meeting of the Steering Committee of the Heads of State and government of the New Partnership for Africa’s Development (NEPAD), the president of the Republic said “Algeria will see, in 2024, the creation of free zones with sister countries, starting with Mauritania, then Sahel countries such as Mali and Niger, in addition to Tunisia and Libya.”
The president of the Republic also stressed Algeria’s commitment to meeting the goals of economic development and continental integration, and the importance of working for the improvement of the efficiency of the economic integration processes in Africa.
It also includes the improvement of regional production and trade networks, through the strengthening of production capacities, the continuation of the efforts to promote the industrial sector’s role and getting access to global value chains, by promoting the diversity of African industries, the president of the Republic said.
Malawi opens its borders to the world (CAJ News)
The recent removal of visa restrictions by Malawi is a major boost to tourism. Following the announcement, 79 nationalities can now enter the Southern African country visa-free and cost-free. Among these are 17 from the Asia-Pacific nations, 15 from Europe, 14 from the Americas and four from Africa and the Middle East.
Nationals of the 16-member Southern African Development region (SADC) region and 21-member Common Market for Eastern and Southern Africa (COMESA), in both instances except for those countries that subject Malawians to a visa requirement, also qualify for visa-free and cost-free entry.
Ghana implements ECOWAS free roaming initiative with Cote d’Ivoire (Citinewsroom)
The Minister for Communications and Digitalisation, Ursula Owusu-Ekuful, announced on Sunday, February 18, 2024, that Ghana has successfully implemented the ECOWAS free roaming initiative in collaboration with Cote d’Ivoire. The initiative aims to enhance integration and foster international connectivity between the two nations.
Speaking at a press briefing under the theme, ‘Digital Infrastructure to Bridge the Digital Divide,’ Minister Ursula Owusu-Ekuful revealed that the initiative, initially adopted in 2016, faced challenges in its implementation. However, she disclosed that Ghana and Cote d’Ivoire overcame obstacles and became the first ECOWAS member states to implement the ECOWAS free roaming in June 2023.
National Commodity Board Will Bring Stability To Food Prices (Leadership News)
The Lagos Chamber of Commerce and Industry (LCCI) has said the recent announcement regarding the federal government’s intention to establish a National Commodity Board has the potential to bring stability to food prices in Nigeria. The director-general of LCCI, Dr. Chinyere Almona stated that, “this initiative comes at a critical juncture when the rising cost of food has become a pressing concern for both the government and citizens, where food inflation has reached an alarming level, as highlighted by the National Bureau of Statistics data placing Nigeria’s food inflation at 33.9 per cent as at January 15, 2024.”
According to Almona, the chamber views this initiative as the government’s commitment to implementing effective short-term strategies to counteract subsidy removal and ensure immediate food supply and to deploying concessionary capital from the Central Bank of Nigeria (CBN) to the agricultural sector, especially, toward fertilisers, processing, mechanisation, and other key aspects, as a positive move that can enhance the overall productivity of the agricultural value chain.
Cocoa Prices Surge To Record High On Naira Depreciation (Leadership News)
Nigerian cocoa farmers and exporters are reaping big as global cocoa prices hit record high, thanks to the steep naira devaluation that has resulted in a sharp increase in the naira income from the export of the beans. The cost of cocoa – the key ingredient for making chocolate – has almost doubled since the start of the year, and quoted prices on the Internal Cocoa Organisation’s website reached a new historic high of US$5,874 a ton on February 8. This is because bad weather has battered harvest in top West African growers – Ivory Coast and Ghana, causing a supply shortfall and sending prices surging.
Locally, prices are also surging as the naira continues on a free fall hitting N1,534 at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Monday, data from FMDQ showed. Findings show that the local price of cocoa per ton at Matori cocoa warehouse in Lagos was N8 million per ton on Wednesday, 14 February, a 344 percent increase when compared to N1.8 million per ton in December of 2023.
Nigeria, UK trade hits N12trn as deal sealed to ease barriers (Daily Trust)
The value of trade between Nigeria and the United Kingdom has hit N12.3 trillion (£6.7bn) as at the end of 2023, Minister of Industry, Trade and Investment, Doris Uzoka-Anite, has revealed. The minister made the revelation on Tuesday in Abuja during the signing ceremony of the Memorandum of Understanding on the Enhanced Trade and Investment Partnership (ETIP) between the trade and investment ministry and the Secretary of State, Department of Business and Trade, Hon. Olukemi Badenoch.
“Nigeria and the UK have shared a long-term prosperity and have maintained long historic and commercial ties as the UK remains top trade partner both in import and exports amounting to £6.7bn pounds as at end of 2023,” she said. Speaking on the MoU, she noted that, “The first target is to reduce barriers to trade and which the ministry is diligently working to see that conducive atmosphere is created for businesses, especially now that Nigeria is working to get into AfCFTA that will lead to diversification of economy and improve exports while the second is to increase investment flows by improving ease of doing in furtherance with the eight-point agenda of the current administration.”
ECA and Google Sign Agreement to Foster and Accelerate Digital Transformation in Africa (UNECA)
The United Nations Economic Commission for Africa (ECA) and Google LLC (Google) have signed a landmark Memorandum of Understanding (MoU) to foster and accelerate digital transformation in Africa on the margins of the 2024 edition of the Africa Business Forum. The partnership is founded on the complementary expertise and strengths of both parties who wish to collaborate on activities to support ECA’s mandate such as digital development in Africa in line with the African Union Digital Transformation Strategy for Africa (2020-2030) and Google’s Digital Sprinters Framework, and to leverage the power of information and communication technologies (ICTs) for the benefit of Africa’s digital economy.
As a general framework for collaboration, the MoU will seek to further explore specific key areas of interest pertaining to digital skills development for Africa’s burgeoning young population, startup development, increasing financial inclusion, strengthening cybersecurity and online safety measures, and advancing AI policy research for policymakers on the continent.
ECA’s Executive Secretary, Mr. Claver Gatete, acknowledged Google’s pivotal role in improving Africa’s connectivity infrastructure, supporting Africa’s innovators and entrepreneurs, and building digital capacity in emerging technologies through skills development for researchers, students and educators.
EAC set to negotiate trade agreements with UK, UAE after EPA flops (The Independent Uganda)
At least seven countries have requested free trade arrangements with the East. African Community (EAC), as the bloc also intensifies efforts to expand the markets for its products. These countries include the United Kingdom, Singapore, Pakistan, and the United Arab Emirates (UAE), as well as China, Turkey, and Serbian. It follows the failure of the deal between the European Union (EU) and EAC dubbed the EU-EAC Economic Partnership Agreement (EPA) after the EAC states failed to agree amongst themselves on key issues. The EAC leaders have called on the relevant authorities for the prioritization of the negotiations with the seven countries.
Now, at the 43rd Meeting of the Sectoral Council of Trade, Industry, Finance, and Investment, the EAC line ministers approved negotiations of FTA Agreements between the EAC and the United Kingdom, United Arab Emirates, Pakistan, and Singapore. The Council also directed the EAC Secretariat to engage each of the four countries by July 30, 2024, with a view to the commencement of negotiations for FTA Agreements. The Ministers resolved that negotiations with Turkey, China, and Serbia will be undertaken after negotiations of FTAs have progressed with the first four.
NTBs cost region $16m, threatening intra-EAC trade (The East African)
The direct costs of non-tariff barriers (NTBs) in the East African Community (EAC) is estimated at $16,703,970, with the total trade impact being $94,918,000, a new report shows. The EAC Regional Meeting Committee report (2023) shows that trade has decreased by an average of 58 percent. Tanzania and Uganda have been cited as having the highest number of unresolved NTBs, with Tanzania having four unresolved issues, Uganda, three, and Kenya and South Sudan having one each as at February 2024.
Addressing the EAC Sectoral Council of Trade, Industry, Finance and Investment on the matter, EAC Secretary-General Peter Mathuki said that while in the financial year 2021/2022, intra-trade reached $8.7 billion, followed by an increase to $9.4 billion in 2022/23, NTBs continued to pose threat to trade in the region.
Small businesses cry foul over EAC payment system (The East African)
Small businesses have attributed their apathy towards the East African Payment System (EAPS) to its focus on high-value transactions between commercial banks, locking them out. They say that the system, in its current format, is a deterrent to cross-border interoperability of digital payments.
“This is a missed opportunity because micro entrepreneurs, 70 percent of whom are women, are the backbone of East Africa’s economy. Their limited digitalisation is hindering financial inclusion-commerce and cross-border trade in the region,” Netherlands-based think-tank European Centre for Development Policy Management (ECDPM) says in a discussion paper dated October 2023.
According to ECDPM, which is working on international co-operation and development policy in Europe and Africa, the EAPS is facing low uptake from regional governments, and this is hindering seamless digital payments interoperability — the ability of systems to exchange information and work together in a coordinated manner without end user’s involvement
Niger: Ecowas Prepares to Lift Sanctions on Niger - Report (allAfrica)
According to information from Jeune Afrique, regional organization Ecowas will lift the economic sanctions on Niger “soon” - a decision made after the coup on July 26, 2023, by General Abdourahamane Tchiani against elected president Mohamed Bazoum.
Negotiations between the Alliance of Sahel States (AES) and the mediators of the regional organization seemed to be at a standstill. At the end of January 2024, tension rose between the juntas, led by the Malian Assimi Goïta, the Burkinabè Ibrahim Traoré and the Nigerien Abdourahamane Tiani, and the West African civilian regimes, when the military-ruled countries first announced their departure from ECOWAS.
To break the deadlock, the heads of state at Ecowas have decided to take the first step - reportedly preparing to removed sanctions placed on Niger - the only country still subject to such measures. The announcement is expected to be made before Ramadan, which is scheduled to begin on March 10.
37th AU Summit updates
Education, Peace, Politics, Climate, Economy and International /Global Diplomacy in Focus at 37th AU Summit (African Union)
The 37th Ordinary Session of the Assembly of Heads of State and Government of the African Union (AU) kicked off on Saturday 17 February 2024. Holding under the theme: “Educate an African fit for the 21st Century: Building Resilient Education Systems for Increased Access to Inclusive, Lifelong, Quality, and Relevant Learning in Africa”, the event at the AU headquarters in Addis Ababa, Ethiopia, was well attended by African Heads of state and Government, and high-level representatives from the African continent and beyond.
Taking the floor, the outgoing Chair of the Union, President Assoumani, presented a comprehensive report of the achievements and activities undertaken on behalf of the AU during his leadership. He noted successes in peace and security, socio-economic development, youth and women’s empowerment, Africa speaking with one voice and taking common positions on global issues, enhancement of infrastructure, agriculture, climate change, education, health, and ICTs among others. He called for peace in the Middle East, reiterating the need for a two-state solution for Israel and Palestine.
In his welcome remarks, Ethiopian Prime Minister H.E. Dr Abiy Ahmed, underscored the importance of creating strong regional and continental platforms, emphasizing that these platforms are essential for addressing national development challenges from geopolitical, logistical, and security standpoints. He commended the African Union for its accession to the G20, as “marking a significant milestone” on the global stage.
Addressing the Assembly, AUC Chairperson, H.E. Moussa Faki Mahamat highlighted some critical concerns facing the continent, including peace, political and institutional instability, climate change, economic governance deficits, integration challenges, poverty, and the marginalization of women and youth in development and leadership processes. He stressed the urgent need for Member States to proactively engage with these issues, underscoring their importance in achieving the aspirations of Agenda 2063 for a transformed and prosperous Africa.
In highlighting the continent’s progress, H.E. Faki commended the successful advancement of institutional reforms and the strides made in regional integration, notably through the African Continental Free Trade Area (AfCFTA). He expressed satisfaction with the progress made in some areas including the Peace Fund, the African Common Positions on climate change, the reform of global governance, the financing of African peace keeping missions, and the notable accession of the AU to the G20 Forum.
Agenda 2063: Launch of 2nd Decade of Acceleration (AU)
The launch of the Second 10-Year Implementation Plan of Agenda 2063, also dubbed as the decade of acceleration (2024-2033), is a historic milestone for the African Union, its Member States, and all African citizens. It marks the beginning of the second decade of a collective effort to realise the vision of a prosperous, peaceful, and integrated Africa by 2063.
The Second 10-Year Implementation Plan of Agenda 2063 is a bold and ambitious roadmap for Africa’s transformation. It is a manifestation of the collective will and determination of the African people to shape their destiny. It is a reaffirmation of the African dream of unity, dignity, and prosperity for all. The plan outlines seven moonshots of how the continent aims to achieve key priorities, goals and targets to achieve in the next 10 years. By 2033, Africa wants to be prosperous, integrated, democratic, peaceful, cultured, people-driven and influential.
The plan also identifies flagship projects that will have a high impact, such as the African Continental Free Trade Area, the African Passport, the Grand Inga Dam, the Single African Air Transport Market, the African Virtual University, the Pan-African E-Network, and the African Outer Space Strategy. These projects will enhance regional integration, economic diversification, innovation, and competitiveness, as well as social inclusion and cohesion.
pdf Agenda 2063: Second Ten Year Implementation Plan 2024-2033 | Abridged version (6.58 MB)
AU faced with old crises as leaders plot to polish scorecard, roadmap (Nation)
At the opening session for the Executive Council of Ministers of Foreign Affairs, African Union Commission Chairperson Moussa Faki Mahamat pointed at the resurgence of military coups, pre- and post-election violence, humanitarian crises linked to war and the effects of climate change as old challenges the AU should address. Liesl Louw-Vaudran, Senior Adviser on the African Union at ICG said diplomacy is a better tool to nurture for the continental body to address the current crises but added: “The AU should also keep channels of communication open with countries in the Sahel and put Cameroon’s Anglophone conflict on the agenda.”
At the African Union Summit, President Lula defends the entry of more countries from the continent as full members of the G20 (G20 Brasil 2024)
During the opening of the 37th African Union Summit in Ethiopia, the Brazilian president also stressed that “without the Global South countries, a new cycle of world expansion will not be possible, with growth, a reduction in inequalities and environmental preservation, with the expansion of freedoms” and condemned the ongoing wars in the world.
See Speech by President Lula at the opening of the 37th African Union Summit
Towards a Prosperous Africa: A Conversation with UNDP Africa Regional Director Ahunna Eziakonwa (UNDP)
Following the 37th African Union (AU) Summit, in this interview Ahunna Eziakonwa, Director of the UNDP Regional Bureau for Africa, describes UNDP’s role in supporting communities and governments in advancing sustainable development across the continent, calls on African leaders at the AU Summit to prioritize education and development, and underscores the importance of partnerships in forging regional solutions to global challenges. To the distinguished leaders and decision-makers that gathered at the African Union Summit - Let us recognize that education is the most powerful currency in today’s knowledge economy, and it is through lifelong learning that we will continue to secure prosperity for Africans in Africa but also Africa’s place in the world.
Statements
Statement by Mr. Claver Gatete at the pre-launch of the African Union Theme for 2024 (UNECA)
President Ramaphosa concludes participation at the African Union Summit (The Presidency, South Africa)
AU today is fit-for-purpose, says Kagame as Ruto takes over reforms team (The New Times)
The African Union is better positioned to drive the interests of the continent than it was in 2016, when the body launched institutional reforms, President Paul Kagame said on Saturday, February 17 as he attended the 37th AU Summit in the Ethiopian capital Addis Ababa.
Kagame, who spearheaded the AU reforms for the past eight years, concluded his mandate and handed over to Kenya’s President William Ruto. “Almost $400 million has been mobilized. As a direct result, the United Nations Security Council recently decided to finance three-quarters of African Union peace operations for the first time. “This was only possible because the African Union today is more fit-for-purpose than it was. And we are getting better at defining our common interests, and advocating for them.”
See Report by President Paul Kagame on the Institutional Reform of the African Union – 17 February 2024
African countries to spend $74bn on debt service in 2024; negotiating new terms with private creditors failing - AfDB (MyJoyOnline)
African countries are expected to spend around $74 billion on debt service in 2024, the Macroeconomic Performance and Outlook 2024 by the African Development (AfDB) Bank has revealed. This would be up from $17 billion in 2010. According to the AfDB, some $40 billion, or 54.0% of total debt service is owed to private creditors.
“Except in Chad, the Democratic Republic of Congo, Gambia, and Mauritania, debt service costs in African countries was higher in 2020–22 than in 2015–19. Debt service payments have risen substantially in tandem with the growing share of debt owed to private creditors”.
This it said is a cause for concern because current debt restructuring negotiations are failing to reach agreement with private creditors. Presently, Ghana is negotiating a debt restructuring terms with its private creditors. The country is proposing about 40% haircut of up to $13 billion. The report pointed out that debt service costs have risen, narrowing the scope for government spending and increasing debt vulnerabilities. “External debt service payments as a proportion of government revenue are higher than before the COVID-19 pandemic in many countries”, it added.
See Africa’s Macro-Economic Performance and Outlook - January 2024
Fisheries subsidies chair circulates draft text to ministers as basis for MC13 negotiations (WTO)
The chair of the fisheries subsidies negotiations, Ambassador Einar Gunnarsson of Iceland, on 16 February circulated to ministers a draft text on Additional Provisions on Fisheries Subsidies, with disciplines on subsidies contributing to overcapacity and overfishing, as the basis for finalizing the negotiations on these issues at the 13th Ministerial Conference (MC13). The chair said the text, which draws on members’ proposals and discussions, reflects his best attempt to identify a balance most likely to build consensus.
Agriculture negotiations chair circulates revised text, aiming for outcome at MC13 (WTO)
The Chair of the WTO's agriculture negotiations, Ambassador Alparslan Acarsoy of Türkiye, circulated a revised negotiation text on 16 February. This text was submitted as a potential outcome document for ministers to consider at the organization’s 13th Ministerial Conference (MC13), due to take place in Abu Dhabi on 26-29 February. “The text represents my best efforts to help members in their desire to reach a successful outcome on agriculture at MC13,” the Chair said.
Political Fragility: Coups d’État and Their Drivers (IMF)
The paper explores the drivers of political fragility by focusing on coups d’état as symptomatic of such fragility. It uses event studies to identify factors that exhibit significantly different dynamics in the runup to coups, and machine learning to identify these stressors and more structural determinants of fragility—as well as their nonlinear interactions—that create an environment propitious to coups. The paper finds that the destabilization of a country’s economic, political or security environment—such as low growth, high inflation, weak external positions, political instability and conflict—set the stage for a higher likelihood of coups, with overlapping stressors amplifying each other.
Reform of global governance and international crises are on the agenda of the first G20 foreign affairs ministers’ meeting in Brasil (G20 Brasil 2024)
Rio de Janeiro will host one of the most important meetings in global diplomacy, with the participation of the world’s largest economies’ foreign affairs ministers for the G20’s first ministerial meeting in 2024, presided over by Brasil. The meeting, scheduled for the afternoon of February 21 and the morning of February 22 at Marina da Glória, takes place during a period of great geopolitical instability, with crises erupting in various parts of the world. Among the most pressing issues to be discussed are the situation in the Middle East and the Russian offensive in Ukraine, which continue to generate global concern over the humanitarian crisis and the geopolitical and economic consequences of the conflicts.
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Climate Change Response Fund to channel resources to adaptation, early-warning systems (Engineering News)
Forestry, Fisheries and the Environment Minister Barbara Creecy reports that the Climate Change Response Fund announced by President Cyril Ramaphosa in his State of the Nation Address (SoNA) has been established to support the development of early-warning systems, as well as for adaptation projects to improve the climate resiliency of infrastructure amid the growing threats posed by extreme weather events.
Addressing the Presidential Climate Commission (PCC) in Johannesburg, Creecy said that there was also potential to use the fund as a “channel” for financial resources that could be made available to developing countries following the recent operationalisation of a loss and damage fund.
Strategic integrated projects (SAnews)
In South Africa government is undertaking a massive infrastructure investment and build programme in the form of Strategic Integrated Projects (SIPs), which are aimed at improving the quality of life for all South Africans. Government is working to transform key sectors of our economy such as electricity, rail, ports and telecommunications through infrastructure. We are also working to rebuild and renew infrastructure in critical areas such as student accommodation, social housing water and sanitation. Our focus on infrastructure is critical to driving economic growth and creating employment, while also ensuring that we can change lives and empower communities.
Over the medium-term the public sector is projected to spend R903 billion on infrastructure and a number of these projects have been completed, while many others are in the construction and procurement phases.
The Strategic Integrated Projects are breathing life into many sectors of the economy, including potentially new and game changing ones. South Africa has amassed a pipeline of Green Hydrogen Projects with a value of over R300 billion, which are in project preparation stages.
Once all 88 SIPs are concluded there will be a massive increase in energy and water security. They will also further boost our Fourth Industrial Revolution ambitions and capabilities, while also ensuring that we provide homes, accommodation and revitalise the agricultural value chain.
*Written by Nomonde Mnukwa, Acting Director-General of the GCIS
South Sudan and Kenya Pave the Way for Regional Integration: A Highway to Prosperity Amidst Disputes (BNN)
In a significant move towards regional integration and economic development, South Sudan and Kenya have taken a step forward by agreeing to continue the construction of a pivotal highway.
This decision comes amidst the longstanding border dispute over the Ilemi Triangle, a testament to the two nations’ commitment to transcending historical conflicts for mutual benefit. The planned highway, set to link Eastern Equatoria State with Turkana County, promises to bridge South Sudan to Kenya’s vibrant Mombasa Port, turning Juba into a crucial hub for Kenyan exports. Amidst negotiations, the Ministers of Roads from both countries convened, laying the groundwork for a Memorandum of Understanding, signaling a new dawn of cooperation beyond their borders.
Macroeconomic and Distributional Implications of Gender Gaps: The Gambia (IMF)
We present the current status of labor market gender gaps in The Gambia and examine the macroeconomic and distributional gains from closing the gaps. We also study the impacts of high costs of living and the determinants of poverty. Closing labor market gender gaps, would significantly boost GDP, government revenues, women’s earnings, and reduce income inequality. High food costs adversely affect the levels of consumption in the bottom four quartiles of the income distribution. Lack of access to finance, living in rural areas, lack of employment, low levels of education, and exposure to climate shocks contribute to higher poverty levels.
Climate Change Vulnerabilities and Strategies: The Gambia (IMF)
This paper analyzes The Gambia’s vulnerability to climate change, highlighting risks like flooding, droughts, and coastal erosion, which threaten food security and key industries. It details The Gambia’s climate strategies, including the National Climate Change Policy, 2050 Climate Vision, and Long-Term Climate-Neutral Development Strategy, targeting net-zero emissions by 2050. Despite its minimal global emissions contribution, The Gambia’s focus on renewable energy expansion offers dual benefits for energy security and development. The paper underscores the need for improved land management, crop diversification, and irrigation to boost adaptive capacity and resilience, ensuring food security amidst climate challenges.
IMF Staff Completes 2024 Article IV Mission to Gabon (IMF)
The 2024 Article IV consultation focused on the near-term challenges facing Gabon: strengthening transparency and governance, revitalizing economic growth and stabilizing the budgetary position.
The economy has recovered from multiple shocks emanating from the global and domestic economy, with growth expected to settle around 3 percent in 2024-25 and inflation to remain below the regional ceiling of 3 percent.
Efforts to strengthen transparency and the management of public finances should continue unabated, while policies should put increased focus on correcting fiscal imbalances to bring deficits to financeable levels and pause the increase in debt.
Ghana, Zambia sign 3 bilateral agreements (Graphic Online)
Ghana and Zambia have signed three memoranda of understanding (MoUs) to reinforce and promote cooperation between the two countries.
The agreements — Political Consultation, Defence Cooperation and Agreed Minutes of the Permanent Joint Commission between Ghana and Zambia — were signed at Zambia’s Ministry of Foreign Affairs in Lusaka, the capital, last Tuesday.
The MoUs are geared towards fostering, governing and monitoring bilateral cooperation for the mutual benefit of the two countries.
They also aim to provide a structure for the exchange of views on regional and international issues of mutual interest, covering areas such as politics, diplomacy, trade infrastructure, eco-tourism and wildlife conservation, education and spatial planning.
Seychelles and Botswana: A Burgeoning Alliance for Regional Integration (BNN)
In a pivotal move that underscores the growing camaraderie and shared visions between Seychelles and Botswana, Ambassador Claude Morel has put a spotlight on the burgeoning relationship between the two nations. With a keen focus on mutual values and development strategies, this alliance is set to redefine the landscape of regional integration within the Southern African Development Community (SADC).
At a recent gathering at the SADC Headquarters, the dialogues weren’t just about formalities but a testament to a future where cooperation spans education, tourism, trade, and governance. As middle-income countries in Africa, both Seychelles and Botswana are charting a course towards a unified goal of regional integration and shared prosperity.
Niger, Mali, Burkina Faso to form confederation (Premium Times Nigeria)
The governments of Niger, Mali and Burkina Faso have made public their plans to form a confederation following their ‘exit’ from ECOWAS. “Our excellent diplomats then recommended to the Heads of State the creation of a Confederation bringing together Burkina, Mali and Niger, awaiting the creation of a Federation of the three countries,” said the Malian government spokesperson, Abdoulaye Maiga, on Thursday in a Facebook post.
It was part of a speech the army colonel delivered at a meeting that ministers of the three states held in Ouagadougou, Burkina Faso. Mr Maiga, who is also Mali’s minister of Territorial Organisation and Decentralisation, said the recommendation to create a confederation was made in a November 2023 meeting by the countries’ ministers of development affairs. They also recommended expanding the Alliance of Sahel States (AES) objectives in diplomacy and economic development. The AES was created in September 2023, a few months after the Niger coup.
The three states last month announced their withdrawal from ECOWAS on grounds of what they said were illegal and inhumane sanctions.
Africa will account for eleven of the world’s 20 fastest-growing economies in 2024, the African Development Bank Group said in its latest Macroeconomic Performance and Outlook (MEO) of the continent released on Friday. Overall, real gross domestic product (GDP) growth for the continent is expected to average 3.8% and 4.2% in 2024 and 2025, respectively. This is higher than projected global averages of 2.9% and 3.2%, the report said.
The continent is set to remain the second-fastest-growing region after Asia.
“Despite the challenging global and regional economic environment, 15 African countries have posted output expansions of more than 5%,” Bank Group President Dr Akinwumi Adesina said, calling for larger pools of financing and several policy interventions to further boost Africa’s growth. The latest report is calling for cautious optimism given the challenges posed by global and regional risks. These risks include rising geopolitical tensions, increased regional conflicts, and political instability—all of which could disrupt trade and investment flows, and perpetuate inflationary pressures.
African Union’s 37th Summit: Forging Resilient Education Systems Amidst Rising Violence (BNN)
Amidst this backdrop of ambition and aspiration, a dark shadow looms over the continent’s educational landscape, with recent reports highlighting a dramatic rise in violence against schools, casting a pall on the quest for enlightenment and progress. The focus is clear - to transform education systems to ensure increased access to inclusive, lifelong, quality, and relevant learning, thereby preparing Africa’s youth for the future.
Africa’s development challenges are multifaceted and require innovative and sustainable solutions. The continent, despite its vast resources and potential, faces economic, social, and environmental challenges that hinder its growth and sustainable development. The global financial architecture, which encompasses international financial institutions, global economic governance structures, and financial regulatory mechanisms, plays a pivotal role in shaping Africa’s economic destiny. However, the current system inadequately addresses the unique development needs and vulnerabilities of the African continent.
His Excellency Nana Addo Dankwa Akufo-Addo, President of the Republic of Ghana and Champion on African Union Financial Institutions, is hosting a Heads of State dialogue in collaboration with the African Union Commission (AUC), the African Multilateral Financial Institutions, the United Nations Economic Commission for Africa (UNECA), and the African Center for Economic Transformation (ACET).
During this event, participants will have the opportunity to reaffirm their commitment to establishing AU Financial Institutions; solidify Africa’s Agenda for Global Financial Architecture Reform and agree on a way forward; and officially launch the Africa Club as a key avenue for strengthening Africa’s position in the global financial landscape.
Africa is poised to embark on a transformation journey to help its countries and people reach their fullest economic potential, with a real opportunity to accelerate its evolution as a single market, a valuable player in value chains, and a destination for investment, particularly in the green economy.
This progress is unfortunately held back by a global system that was created in a different time, for a different world, and which neither adequately meets African countries’ needs nor harnesses the opportunities that Africa’s natural and human capital offer. It is past time to create a global financial architecture that better serves Africa.
44th Ordinary Session of Executive Council of AU Concluded (ENA)
The 44th Ordinary Session of the Executive Council of African Union that has been held in Addis Ababa from 14-15 February 2024 concluded. Foreign Affairs Ministers of African countries have held their 44th Ordinary Session of the African Union (AU) Executive Council in Addis Ababa for the past two days. The meeting held under AU’s this year theme: Educate an African fit for the 21st Century: Building resilient education systems for increased access to inclusive, lifelong, quality, and relevant learning in Africa.” has discussed on the progress, challenges, and prospects of Africa’s development as well as peace and security of the continent.
The foreign ministers in their night long deliberations evaluated performance report of African Union institutions and organizations, the committees and sub-committees under the council, and the 10-year implementation of Agenda 2063.
Peace and security, trade and connectivity, institutional reforms, education, agriculture and climate change, human rights, gender and youth empowerment as well as the selection of institutions and organizations are among the main agendas discussed during the meeting.
See also: The elephant in the room at this weekend’s African Union summit (EU Observer)
Africa’s Lobito Corridor Railway Provides Huge International Opportunity (U.S. Chamber of Commerce)
On February 8, the Lobito Corridor Private Sector Investment Forum in Zambia concluded with great optimism. This gathering, hosted by the White House’s Partnership for Global Infrastructure and Investment (PGI) in collaboration with the Africa Finance Corporation, underscored the transformative potential of the Lobito Corridor rail project. It also positioned the project as a focal point for public-private partnerships with the potential to yield shared prosperity for Americans and Africans.
The Lobito Corridor project entails the construction of almost 350 miles of rail line in Zambia, along with hundreds of miles of feeder roads, linking the southern part of The Democratic Republic of the Congo (DRC) and the northwestern part of Zambia to regional and global markets via Angola’s Port of Lobito.
Linking the copper-rich mining region to the sea, the Lobito Corridor ushers in myriad new opportunities for economic growth and development that will unlock the region’s commercial competitiveness. This infrastructural investment is a powerful catalyst for the establishment of small businesses along the railway transport routes, fostering local economic growth. The corridor’s impact will be far-reaching, touching sectors vital for the region and Africa overall: transportation & logistics, clean energy & critical mineral supply chains, and agribusiness.
Horticultural accelerator project rolls-out (COMESA)
Implementation of a new project known as the COMESA- EAC Horticultural Accelerator (CEHA) has just begun and is expected to enhance policy coordination, value chain development, financing, and research and development in the horticulture industry. Established in 2022 through public and private sector partnerships, and launched in June 2023, the project covers five countries in the Common Market for Eastern and Southern Africa – COMESA and the East African Community – EAC. These are Ethiopia, Kenya, Rwanda, Tanzania, and Uganda.
CEHA targets avocado, onion, and Irish potatoes development. Its initial activities are supported by the Bill and Melinda Gates Foundation with USD 5 million, and the Foreign, Commonwealth & Development Office providing a total of GBP 500,000.
It will facilitate the modernization of regional horticulture value chains by coordinating private sector-led investments, improving policies and standards, and providing access to finance and technical assistance for accelerated growth.
Political will: A key ingredient in developing regional agriculture value chains (COMESA)
COMESA in partnership with the United Nations Economic Commission for Africa (UNECA) are collaborating to enhance political will and strengthen the capacity of Member States to apply the African Union Guidelines for the Development of Regional Agricultural Value Chains (RAVCs) in Africa. This is being done under a project: Strengthening Member State capacity to develop Regional Agricultural Value Chains to promote Diversification and Intra-African Trade.
Currently, the project is being piloted in the COMESA region to promote regional value chains of two strategic commodities; maize and dairy in Zambia and Zimbabwe. The aim is to foster agro-processing and support the actualization of the Common Agro Industrial Park (CAIP) initiative which was mooted under the Joint Industrialisation Cooperation Programme between Zimbabwe and Zambia. Towards this goal, COMESA and UNECA conducted a validation workshop on January 22, 2024, to discuss the Recommendation Report for Strengthening Maize and Dairy Value Chains. The report was based on the review of the policy, regulatory and institutional frameworks in Zambia and Zimbabwe and the industrialization and export strategy for maize and dairy products in the two countries.
Ag investment in Africa looks to scale productivity (Meat and Poultry)
In an effort to scale up agriculture and nourish a growing population in Africa, which contains 65% of the world’s uncultivated land, the African Development Bank Group and Consortium of International Agricultural Research Centers (CGIAR) have committed to strengthen their collaboration. Akinwumi Adesina, president of the African Development Bank, received Africa-based directors general of CGIAR at the bank headquarters in Abidjan, Ivory Coast, on Jan. 25, to discuss efforts at scaling up food and agricultural productivity on the continent.
US trade chief looks for incremental reform at WTO meeting (Investing.com)
U.S. Trade Representative Katherine Tai said on Wednesday that she is taking a “pragmatic” approach to the World Trade Organization’s next ministerial meeting, aiming for incremental but meaningful improvements that sustain the trade body’s reform momentum.
Tai told reporters ahead of the WTO’s 13th Ministerial Conference (MC13) in Abu Dhabi that she did not anticipate a massive reform agreement that addressed all of the institution’s shortcomings at once.
“We’re looking for success,” she said of the Feb. 26-29 conference. “The Athena coming out of the brain of MC13, it’s not going to happen. So why would we set ourselves up for that?”
Ministerial Identifies Solutions to Development Challenges in MICs (SDG Knowledge Hub)
Morocco hosted a high-level ministerial conference dedicated to the specific challenges middle-income countries (MICs) face in their economic and social development. Participants adopted the Rabat Declaration, in which they commit to developing a Strategic Action Plan for MICs for the years 2025-2030, in collaboration with the UN system, development partners, and stakeholders.
Held on the theme, ‘Solutions to Address Development Challenges of Middle-income Countries in a Changing World,’ the conference brought together 32 countries and 23 UN development agencies and other international and regional institutions. MICs are a diverse group of more than 100 countries.
In her message to the conference, among the many challenges MICs face, UN Deputy Secretary-General Amina Mohammed highlighted conflicts and instability, climate change, recurrent and more intense natural disasters and associated economic losses and costs, and heavy public debt burdens. She said many MICs “are unable to find the fiscal space for sustainable development,” with 39 of them shouldering net interest payments that account for more than 10% of government revenue, compared to 23 a decade ago.
Quick links
Modernizing AGOA for the 21st century (Brookings)
Guest Article: What to Expect at MC13 (SDG Knowledge Hub)
In Munich, Guterres calls for new global order that works for all (UN News)
Brazil G20 presidency to take India’s food security agenda forward (Mint)
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Vegetable export bans stir concerns in Southern African agriculture (Food For Mzansi)
While Botswana and Namibia have banned vegetable exports from South Africa, trade relations between the countries have been excellent, said Thabile Nkunjana from the National Agricultural Marketing Council (NAMC). It spans a variety of industries that are interlinked to agriculture such as finance, logistics, retail, wholesale, and primary agricultural production. However, experts have warned that new policies by incoming governments might either harm or unblock the great potential of the agricultural industry.
“Using the vegetable industry as an example, South Africa’s average annual export revenue between 2018 and 2022 was R3.1 billion, largely due to the country’s neighbours. About 20% of South Africa’s vegetable export revenue in 2021 came from Mozambique, with the remaining 15% coming from Botswana, 9% from Namibia, 7% from Eswatini, and 4% from each of Zimbabwe and Lesotho. “From South Africa’s perspective, these figures demonstrate why the recent prohibition on its vegetable exports by its bordering major markets is problematic,” he explained.
Nkunjana said numerous companies from South Africa, Southern African Customs Union (SACU) and Southern African Development Community (SADC) member nations have made significant investments over the years, which have resulted in the creation of employment and an improvement in the region’s food security.
Subdued growth expected in transport sector; more freight going to Maputo (Engineering News)
The Ctrack Transport and Freight Index (Ctrack TFI) forecasts “another year of fairly subdued growth for the transport sector”. This is based on the assumption of mediocre economic growth in South Africa this year, forecast at 1.3%, up from 2023’s estimated 0.6%. The latest Ctrack TFI says real transport sector growth is expected to reach 3.7% for 2024, compared with an estimated 3.4% in 2023.
On the assumption that rail will continue to improve gradually to account for 15.8% of total freight payload (compared with 15.5% in 2022 and 2023), growth of 7.4% is forecast for rail freight in 2024, compared with an estimated 1.5% last year. “Though off an extremely low base, and clearly continuing to underperform relative to other transport modalities given ongoing challenges plaguing the sector, the improvement should be celebrated,” notes the TFI report.
“While government approved the Freight Logistics Roadmap at the end of 2023, with proposals to resolve the immediate operational challenges while developing interventions to fundamentally restructure the logistics sector…implementation still needs to be fast-tracked before a notable difference would be evident. More of a medium-term expectation for improvement would be realistic here.” This said, road freight payload is forecast to grow by 5.1% this year versus 1.5% in 2023, which makes it likely to account for 84.2% of total freight payload in the country in 2024.
“The transport and logistics sector is of utmost importance to the South African economy,” comments Ctrack CEO Hein Jordt. “The inability to effectively move products to and from markets comes at a cost, which has a negative impact on the whole economy. “Not only does it subtract from economic growth, given that products are not timeously available for trading, but the cost of products is typically higher given inefficiencies.”
EIB in talks with South Africa over loan for ports, freight rail (Engineering News)
The European Investment Bank (EIB) said it’s in talks to loan South Africa money to upgrade its port and freight-rail infrastructure as its first contribution to a decarbonization pact known as the Just Energy Transition Partnership. “This potential investment would aim to support South Africa’s ambitious decarbonization efforts under the JETP, while boosting economic growth through more efficient and reliable freight transport,” the EIB said.
Kenya’s power imports from Uganda rise 18pc in January on high demand (The East African)
Kenya’s electricity imports from Uganda increased 18.4 percent in January, fuelled by a bigger demand. Data from the Energy and Petroleum Regulatory Authority (Epra) shows that Kenya last month imported 20.29 million units of power from the Uganda Electricity Transmission Company Limited. This is a significant increase from 17.12 million units that Kenya imported from her neighbour in December.
Kenya and Uganda have a power exchange programme during which either country supplies the other with power during periods of deficit. At the close of the financial year, the country that will have exported more electricity to the other invoices its counterpart. In January for instance, Kenya exported 3.41 million units to Uganda, and in December, it exported four million units to its neighbour, meaning that Uganda continues to enjoy a positive trade balance in this exchange. Besides Uganda, Kenya also imports power from Ethiopia, which has been key in stabilising local supply over the past year.
Kenya rolls out tax incentives for key foreign investors (CGTN Africa)
Kenya said Wednesday it has commenced rolling out tax incentives for foreign investors who set up establishments worth more than 65.5 million U.S. dollars. Abubakar Hassan, the principal secretary in the Ministry of Investments, Trade and Industry, told a trade forum in Nairobi, the capital of Kenya, that the customized incentives will apply to companies undertaking manufacturing activities in the country.
“We are rolling out performance-based tax incentives to expand our industrial base,” Hassan said during the Diamond Trust Bank economic and sustainability forum. He noted that firms that qualify for the fiscal tax regime will enjoy reduced tax rates on excise, import duty as well as value-added taxes subject to the approval by the National Treasury.
Uganda in talks to import all its oil via Tanzania (The East African)
Uganda is negotiating with Tanzania to import all of its oil products through Dar es Salaam, which would mean an end to imports via Kenya’s Mombasa port, Uganda’s Energy minister told Reuters on Thursday. Uganda has been dissatisfied with the longstanding system under which Ugandan fuel companies buy 90 percent of their supplies through affiliated firms in Kenya. President Yoweri Museveni has complained this exposes his country to supply disruptions and high pump prices.
In response, Uganda announced in November it would hand over exclusive rights for supply of all petroleum products to a unit of global energy trader Vitol. Uganda imported $1.6 billion worth of petroleum products in 2022, mostly originating from the Gulf. The government planned for imports to still arrive via Kenya, but Energy Minister Ruth Nankabirwa said the Kenyan government refused to grant the required licence.
“We are negotiating with the Tanzanian government. The technical teams are talking, and I will be meeting Her Excellency, the president on that,” Nankabirwa said. “We want to find a route that will keep us safe in terms of petroleum supplies.”
Zimbabwe should speed up currency reforms, IMF says (The East African)
The International Monetary Fund (IMF) on Wednesday encouraged Zimbabwe to speed up currency reforms at the end of a staff visit, saying authorities should move towards a market-driven exchange rate and remove distortions currently in place. The visit discussed Zimbabwe’s request for an IMF staff-monitored programme, part of the Southern African country’s efforts to re-engage with the international financial community by demonstrating a track record of sound economic policies.
Zimbabwe has not been able to secure financing from the likes of the IMF for more than two decades due to arrears in servicing its debt to lenders including the World Bank, the African Development Bank and European Investment Bank.
“An IMF financial arrangement would require a clear path to comprehensive restructuring of Zimbabwe’s external debt, including the clearance of arrears and a reform plan that is consistent with durably restoring macroeconomic stability.” Zimbabwe’s central bank and finance ministry have said they are working on measures to stabilise the Zimbabwean dollar, which has fallen about 40 percent against the US dollar since the start of the year. One option being considered is linking the exchange rate to assets such as gold.
See IMF Staff Completes 2024 Article IV Mission to Zimbabwe
Algeria and Tunisia promote a free trade area (Atalayar)
Algeria and Tunisia are seeking to develop their economic collaboration. The two North African countries have proposed strengthening their commercial ties by promoting a free trade zone between the two countries.
The aim is for this free trade zone to become operational in a few months’ time in order to revive the Algerian and Tunisian economies, which are not going through the best of times. Algeria is highly dependent on the income derived from its powerful energy industry, which supplies gas and oil to many other countries, but it has deficits in other economic sectors and, in addition, various sectors have criticised institutional corruption in part of the Algerian state, which has also influenced the national economic crisis and poor administrative management. Tunisia, for its part, is also experiencing major economic problems and social discontent with the political class, which President Kais Saied, who came to power as an independent politician against the traditional political formations, is now trying to reverse.
This free trade zone between Algeria and Tunisia is expected to reinforce economic integration between the two nations, as trade and economic exchanges have remained isolated and mostly limited to the activity of smuggling networks across the border strip, as reported by media outlets such as Al-Arab.
TotalEnergies: IMF debt rules hobbling Africa green energy projects (The East African)
Renewable energy investments in Africa are being hobbled by insufficient government loan guarantees, as the International Monetary Fund keeps a tight leash on country indebtedness, TotalEnergies CEO Patrick Pouyanne said on Wednesday. Pouyanne said currently electricity projects in Africa suffer from “a problem of solvency... you have a risk not to be paid”.
“So, when a renewable developer wants to develop, and it’s obvious you have huge potential, he will go and see the government and ask for guarantees,” he said. “But the African governments, they will tell you, are not able to give these guarantees because the IMF is coming and telling them, ‘Don’t go and give these guarantees, you are already over-indebted’.”
Related blog: ‘Total’ Transformation or ‘Total’ Chaos? Mozambique’s LNG Saga Continues (tralac)
Road project to link SADC countries underway (Tanzania Daily News)
Construction of a 50-kilometre strategic road that will link Southern African Development Community (SADC) countries through neighbouring Zambia is underway which will facilitate the smooth flow of goods and services in the region. Tanzania National Roads Agency (TANROADS) Rukwa Regional Manager, Ms Mgeni Mwanga said here on Tuesday that the completion of the project will help to facilitate the movement of people services and goods within the SADC countries. “The road will relieve trucks from congestion at Tunduma border posts that has been causing delays leading to increased transport costs,” he said.
She said the first phase of the project involving the construction of 25 km Matai – Tatanda road works has reached 45 per cent. She said the road is part of an important road network within the country linking Dar es Salaam, Morogoro, Iringa, Njombe, Mbeya Songwe, Rukwa and the neighbouring Zambia via Kasesya border post. Likewise, the Matai – Tatanda – Kasesya road will also link 107 kilometres of tarmac road stretching from Sumbawanga town to Kasanga port on Lake Tanganyika. Furthermore, the road will strengthen socio-economic activities including the transportation of people and goods including food and cash crops, forest products and other cargo.
The East African Community Competition Authority (the EACCA) has signed a Memorandum of Understanding (MoU) with Rwanda’s Inspectorate, Competition and Consumer Protection Agency (RICA) to strengthen cooperation between the two authorities in the advancement of competition policy and law in the East African Community. The signing took place on the sidelines of the EAC Stakeholder Merger Workshop held in Kigali on 12-13 February, 2024. The MoU will ensure that implementation of EACCA and RICA mandates and activities will foster joint efforts in addressing competition and consumer protection matters while enhancing regional integration and cross-border trade.
The MoU sets out modalities for a wide range of collaborative initiatives through which the two institutions will cooperate and coordinate their activities in regard to cross-border competition and consumer protection matters in the region. ”It is important to foster a regulatory environment that supports fair competition, innovation and the protection of consumer rights in the community”,
East African Community (EAC) Partner States have reaffirmed their commitment to enhance energy efficiency and exploit wind, solar and geothermal energy as sustainable energy sources for the region. Partner States have subsequently embarked on various initiatives in an effort to tap into the potential of renewable energy and energy conservation, such as review of national renewable energy laws, implementation of energy management regulations, national strategies and standards for energy efficiency and renewable energy, and promotion of energy efficiency and conservation.
During the Ministerial Session of the 16th Sectoral Council of Energy that was held at the EAC Headquarters in Arusha, Tanzania, Partner States reported that investments in wind and solar energy infrastructure were also underway, from Burundi’s solar mini-grids to Kenya’s wind and solar projects, all aimed at increasing renewable energy contributions to the national grid. Similarly, Rwanda and Tanzania reported increased investment in solar energy projects, while Uganda reported that she is focusing on solar energy deployment for rural electrification.
Speaking during the opening session of the Ministerial Session, the Chairperson, Hon. Shaib Hassan Kaduara, the Minister of Water, Energy and Minerals, Revolutionary Government of Zanzibar, United Republic of Tanzania, emphasised the significance of the energy sector noting its unique role in achieving socio-economic development of the Community. “Energy plays a critical role in industrial development and investment promotion, and therefore access to reliable, safe and cost-effective energy is not optional but compulsory if our region is to realise its development objectives,” said Hon. Kaduara.
Consultative Competition Committee of ERCA met in Abuja (ECOWAS)
The ECOWAS Consultative Committee on Competition (CCC) held its 8th meeting to review the draft Cooperation Agreement between ECOWAS bodies in charge of competition in the Member States and to review and validate the Terms of Reference (ToRs) of the Market Study on Digital Marketsfrom the 6th to 8th February 2024, in Abuja, Federal Republic of Nigeria.
The meeting brought together Members of the CCC and staff of ERCA to review and validate the draft Cooperation/ Grant Agreement for the collection of information and administration of the ECOWAS Competition Information System (ECIS),review and validate the Terms of Reference of the market study on digital markets as well as Elect a new Bureau for the Consultative Competition Committee, being the commencement of the mandate and the maiden meeting of the new the Committee.
ECOWAS-UNDP Technical Consultation Initiates Efforts To Develop West Africa Resilience Strategy (ECOWAS)
The ECOWAS Commission, in partnership with the United Nations Development Programme (UNDP), has launched a three-day regional workshop aimed at developing the Regional Resilience Strategy for West Africa. Held at the NAF Conference Centre in Abuja, this event represents a significant step in addressing the region’s challenges and promoting resilience and sustainable development.
Despite West Africa’s abundant natural resources, sustainable exploitation and equitable distribution of benefits to communities remain challenging. The region, contributing only 1.8% of global greenhouse gas emissions, faces increasing temperatures and extreme weather events, exacerbated by inadequate development and governance, and security-related issues.
In her opening remarks, H.E. Professor Fatou Sow Sarr, Commissioner for Human Development and Social Affairs at the ECOWAS Commission, highlighted West Africa’s vulnerability to hazards and disasters, including climate change impacts, conflict, poverty, and disease outbreaks, stressing the importance of disaster risk reduction in post-disaster recovery and development.
The President of the ECOWAS Commission sanctioned a special Mission to the Bo-Waterside-Jendema land border, where Engineers, Sector Ministries and Border Control Officials from the two neighboring Member States, Liberia and Sierra Leone, met to review and approve architectural, engineering, electro-mechanical and related technical designs for a new ultra-modern Joint Border Post to be constructed at this strategic land border crossing between the two Countries.
The new Jendema-Bo Waterside Joint Border Post is yet another major regional integration intervention being provided by the ECOWAS Commission to facilitate cross border trade and the free movement of community citizens along the Dakar-Abidjan Road Corridor. In addition to improving the border crossing environment for officials and travelers of the two neighboring Member States, this Joint Border Post complements the ongoing project to transform the transport corridor from Dakar through Banjul, Bissau, Conakry, Freetown, Monrovia to Abidjan, into a supranational economic development corridor, which will spur on development of economic activities among the corridor Countries.
How Africa can attract tech investment beyond ‘Big Four’ (The Herald)
Africa’s “big four” countries — Kenya, Egypt, South Africa, and Nigeria — continue to lead as markets that have long captured attention from global investors, securing 87 percent of all startup funding in Africa in 2023. However, there is a need for venture capitalists to redirect and explore untapped potential in other parts of Africa’s techpreunerial landscape.
Amidst the well-known challenges associated with the global macroeconomic environment such as high interest rates, currency devaluation, inflation, and layoffs, the Partech Africa Report attributed the funding contraction to two key factors. Firstly, startups adopted conservative capital raising strategies, prioritising cash efficiency over fundraising due to a significant decline in valuations and heightened economic requirements. Secondly, there was a notable withdrawal of investors from the market, with a 50 percent decrease in the number of investors participating in funding rounds in Africa in 2023 compared to the previous year. This decline was particularly pronounced among major institutional funds, which typically play a significant role in driving larger funding rounds.
There is a need to transform non-”Big Four” countries into appealing destinations for startup investments. Countries can leverage the African Continental Free Trade Area (AfCFTA) as a tool to attract investments. Through the AfCFTA, African governments, including those in non-”Big Four” countries, can draw increased start-up funding by reducing investment barriers and enhancing investment governance within their respective countries. However, before venture capitalists can venture into the space, it is essential to acknowledge that Africa is not a uniform market. African markets are unique, and the constraints also differ. Issues to do with infrastructure limitations, regulatory requirements, and socio-economic factors, therefore necessitate a tailored approach for each region. The aim is to extend investments beyond the “Big Four.”
The Digital Trade Protocol of the AfCFTA and Digitally-Driven Development in Africa (tralac)
One of the important protocols forming part of the set of agreements within the African Continental Free Trade Area (AfCFTA) is the Digital Trade Protocol (‘the Protocol’). This protocol has the very important task of defining the desired digital environment for digital trade within Africa, and by implication, also has bearing on Africa’s digital trade with respect to the rest of the world. The Protocol aims to establish harmonised rules and common principles to enable and support digital trade across Africa. It focuses on promoting intra-African digital trade, enhancing cooperation on digital matters among State Parties, and creating a transparent, secure, and trusted digital trade ecosystem.
The three most important areas in which governments and regulatory authorities can contribute to digitally-driven development and digital trade would be: Creating supportive regulatory frameworks; Enhancing internet accessibility; and Ensuring that tax and customs duties do not create perverse incentives.
High Level Forum on Inclusive Instant Payments Systems in Africa (African Union)
In a world increasingly reliant on digital connectivity, access to financial services remains a crucial determinant of economic empowerment and social development. Unfortunately, millions of Africans are excluded from the formal financial system, trapped in a cycle of poverty and limited opportunities, primarily due to limited investments in digital infrastructure especially in the rural areas. Presently, the digital transformation is expanding to almost all economic sectors altering the local job markets. Over 500 African companies provide technology-enabled innovation in financial services or fintech, with over 640 tech hubs active across the continent.
To accelerate the expansion of digital public infrastructure translating into universal access to digital financial services for all Africans, the African Union Commission has entered a strategic partnership with AfricaNenda to develop an advocacy program to support Digital Transformation Strategy for Africa (2020-2030), policy harmonization in Africa, and contribute to implementing the strategy’s roadmap with a particular focus on Inclusive Instant Payments Systems in Africa.
The partnership aims to unlock access to the formal financial system for over 400 million adults in Africa who are primarily financially excluded from the formal economy. This gap has exposed millions of people who are heavily reliant on cash or informal providers for their financial needs, which is costly, risky and leaves them vulnerable to economic instability. The partnership will enhance collaboration with governments, central banks, regional organizations, the private sector, and development institutions.
African Union (AU) Summit will discuss and make far-reaching decisions on the security situation on the continent as some of its member states continue to face security challenges. At the opening of the Executive Council of Ministers of Foreign Affairs, the resurgence of military coups, pre- and post-election violence, humanitarian crises linked to war and the effects of climate change, were highlighted as serious threats that may reverse the gains accumulated in the development agenda of the continent. The emerging cracks on regional integration will also be discussed in the two-day ministerial session on the 14th to 15th February 2024.
On advancing multilateral cooperation, H.E. Moussa Faki Mahamat, Chairperson of the African Union Commission noted the significance of the African Union as a member of the G20 stating that “our membership at the G20, for which we have made intense advocacy, imposes on us more rationality, method and constant vigilance in the turbulent sphere of international relations of the moment.” His sentiments were echoed by H.E Taye who noted that “the African union participation in the G20 will provide us with a unique platform to contribute to global economic governance and decisions. We must therefore ensure that the voice of Africa is heard, that our participation is meaningful, and in the same vein enhance our working relationship with the BRICS to advance South-South cooperation. Ethiopia will certainly leverage it BRICS membership with other sisterly African countries to further advance, interest of our continent and strings and global governance.”
African Union Summit: A chance to transform Africa’s debt, climate and development agenda (African Business)
See also: Morocco attends 44th AU Executive Council Ordinary Session in Addis Ababa (The North Africa Post)
A look ahead at the AU Summit and Africa Business Forum (Google Africa Blog)
This year’s theme for the Africa Business Forum; “Boosting Africa’s Transformation Through Education, Science, Technology, and Innovation”, could not be more timely, as new advances in Artificial Intelligence (AI) will revolutionize how the world addresses its biggest challenges, drives economic growth, and unleashes new opportunities in African economies and around the world. Our first grantee in Africa, the African Leadership University Foundation, will explore how AI can address poverty, hunger and disease in Sub-Saharan Africa, propose AI governance frameworks that can mitigate potential risks, and study AI’s impact on social equality and economic opportunity.
Energy leaders from around the world met in Paris this week for the International Energy Agency’s 2024 Ministerial Meeting and 50th Anniversary, a two-day event that produced a strong commitment to safeguard energy security while speeding up clean energy transitions to keep the goal of limiting global warming to 1.5 °C within reach.
The major gathering of high-level energy decision makers took place just a few months after the COP28 Climate Change Conference in Dubai, where nearly 200 governments reached a key agreement on energy and climate issues. This included the new 2030 global goals – aligned with the Paris Agreement target of limiting global warming to 1.5 °C – of transitioning away from fossil fuels, tripling renewable energy capacity, doubling energy efficiency progress and reducing methane emissions.
In the joint communique, IEA ministers recognised the significant focus on energy in the outcomes of COP28 and directed the IEA to take a leading role in ensuring their implementation. Ministers noted the continued importance of oil supply security to the global economy, and emphasised the key role played by the IEA’s oil stockholding system. They also directed the IEA to develop a framework to advance the objectives that have been laid out for a voluntary IEA Critical Minerals Security Programme, which would look to boost the security of the supply chains for the crucial minerals needed for clean energy technologies.
Read: 2024 IEA Ministerial Communique
DG Okonjo-Iweala on MC13: “We are going to get it done” (WTO)
Speaking at a special meeting of the WTO’s General Council on 14 February, WTO Director-General Ngozi Okonjo-Iweala acknowledged the challenges members face in securing a package of outcomes for the organization’s upcoming 13th Ministerial Conference (MC13) in Abu Dhabi but said she was confident members would be able to deliver.
She noted that she intends to work with delegations in the following days to address some issues that remain outstanding, in order to circulate a “clean” draft Declaration on 16 February for members’ consideration. The General Council Chairperson, Ambassador Athaliah Lesiba Molokomme of Botswana, briefed members on the state of play regarding the drafting of an MC13 Ministerial Declaration.
DDG Ellard stresses importance of securing substantive outcomes at MC13 (WTO)
Deputy Director-General Angela Ellard on 12 February outlined priorities for the WTO’s 13th Ministerial Conference (MC13) at the 2024 Washington International Trade Conference, organized by the Washington International Trade Association (WITA). In particular, she stressed the importance of securing the entry into force of the Agreement on Fisheries Subsidies and concluding the second wave of fish subsidy negotiations, securing progress on dispute settlement reform, and taking a decision on extending the existing e-commerce moratorium.
She noted that MC13 priorities include entry into force of the Agreement on Fisheries Subsidies and completing the second wave of negotiations; progress on dispute settlement reform; a decision on the extension of the e-commerce moratorium; agriculture negotiations; development-related issues; and deciding how to integrate outcomes of the joint initiatives into the WTO rulebook. A successful MC13 would achieve outcomes or make substantive progress on as many issues as possible, she added.
More WTO-related news
Barbados, Dominica, Senegal, Uruguay formally accept Agreement on Fisheries Subsidies (WTO)
New edition of “WTO Ministerial Conferences: Key Outcomes” publication now available (WTO)
TRIPS Council finalizes preparations for MC13 (WTO)
WTO’s E-commerce Moratorium: Will India Betray the Interests of the Global South Again? (The Wire)
Related News
tralac Daily News
Upcoming events: 37th African Union Summit
Theme of the year: “Africa fit for the 21st century: building resilient education systems for increased access to inclusive, qualitative, lifelong and relevant learning for Africa.”
14-15 February 2024: 44th Ordinary Session of the Executive Council (Ministers of Foreign Affairs)
17-18 February 2024: 37th Ordinary Session of the AU Assembly (Heads of State and Government)
Transnet steps up efforts to curb shipping delays (SAnews)
The first batch of four hydraulic mooring units procured by Transnet National Ports Authority (TNPA) to improve operations and reduce shipping delays at ports have been delivered and operationalised at the Ports of Cape Town and Ngqura. The batch is part of the 52 units procured by the authority.
TNPA General Manager for Infrastructure, Thecla Mneney, said: “This marks the first of a series of major port equipment deliveries at our commercial seaports this year. We continue to make progress in fast-tracking the implementation of key investments in port infrastructure to improve operational efficiencies and provide quality service to the maritime industry”.
“A hydraulic tension mooring unit is a system that is placed on the quayside to ensure the safety of vessels alongside and mitigate the severity of long-wave effects on vessels. The units assist with stabilising vessels alongside during strong winds, adverse weather conditions and high swells. The benefits also include minimized down-time and safety during operations.
Association concerned about assumptions in commission’s poultry market inquiry (Engineering News)
Industry organisation the South African Poultry Association (SAPA) has expressed concern about some of the statements and assumptions in the Competition Commission’s announcement of a market inquiry into the poultry industry value chain. The commission on February 9 announced the market inquiry, saying it has reason to believe there are features in the poultry market that may impede, distort or restrict competition.
SAPA says the poultry industry is “extremely concerned” at the commission’s statement that there are “ongoing demands for bailouts through ever-increasing tariffs and the imposition of anti-dumping duties”. The association states that the domestic poultry industry has never asked for “bailouts”, saying the International Trade Administration Commission of South Africa (Itac) and the Department of Trade, Industry and Competition are aware of that. “The use of this term indicates a hostility that we find disturbing. What the industry has asked for is protection against unfair and dumped imports. Itac investigations have repeatedly found that these imports are harming the industry and costing local jobs,” SAPA says.
Durban’s Dube TradePort air cargo terminal sees demand spike because of harbour issues (Engineering News)
Air freight through the Dube TradePort cargo terminal, at King Shaka International Airport, at Durban, spiked sharply during the last quarter of last year, in quarter-on-quarter terms. This quarter-on-quarter increase was 57%, driven by issues at Durban harbour. “This significant increase in airfreight has been observed across various industries, from perishables to automotive, the latter being traditionally reliant on ocean freight,” reported Dube Cargo Terminal senior manager: cargo development and operations Ricardo Isaac. “This emphasises the need of these industries to ensure uninterrupted production and timely delivery to export markets.”
This data showed that, for industries using or producing time-sensitive commodities, an efficient air cargo alternative was invaluable. The existence of the Dube TradePort had become an important part of their supply chains. Freight through the terminal increased both during the 2022/23 and 2023/24 financial years. Data from January indicated that the spike in demand was continuing.
The World Customs Organization (WCO) delivered a mission to the benefit of the Nigeria Customs Service (NCS) to enhance Post-Clearance Audit (PCA). The WCO PCA Diagnostic mission took place from 29 January to 2 February 2024 in Abuja, Nigeria. In the opening ceremony, the NCS Comptroller-General, Mr. Bashir Adewale Adeniyi, shared insights into the NCS’s recent trade facilitation efforts, focusing on robust risk management strategies and the development of PCA functions, especially in conjunction with the NCS’s ambitions to launch an Authorized Economic Operator Programme in the near future.
Emphasizing the importance of trade facilitation measures, he expressed their role in fostering economic development opportunities, job creation, and poverty alleviation. Moreover, the Comptroller-General outlined the importance of trade facilitation, particularly in the context of the African Continental Free Trade Area Agreement (AfCFTA) and Nigeria’s strategic position in the global trade framework. He extended his gratitude to the WCO and commended the dedication, expertise and collaborative efforts with the IMF and World Bank experts.
FG Targets Increased Trade Volume with NTFC (This Day)
The federal government through the Ministry of Industry, Trade and Investment, has announced plans to revitalise the National Trade Facilitation Committee (NTFC) in its bid to increase Nigeria’s trade volume. The Minister of Industry, Trade and Investment, Mrs. Doris Uzoka-Anite, explained that the Committee would comprise of the Nigerian Customs Service (NCS) alongside Ministries Department and Agencies (MDAs) and the private sector. She stated this at the launch of the World Customs Organisation (WCO) assisted Time Release Study (TRS) scoping mission for Nigeria in Lagos. According to her, effective trade facilitation requires efficient coordination across the entire supply chain, maintaining that the country currently has 12 Domestic Export Warehouses (DEWs) and one aggregation centre established to reduce the time it takes to ship their goods for export.
Int’l partners’ funding for Egypt reaches $10.3B over 4 years (EgyptToday)
International partners provided Egypt around $10.3 billion in funding over the past four years from 2020 to 2023, according to the Minister of International Cooperation, Rania Al-Mashat. Al-Mashat noted that this funding includes both developmental aid and investments in the private sector, along with technical support. The minister pointed out on Tuesday that despite this, there are challenges hindering some companies from recognizing the services provided by development partners to the private sector.
In her video speech, the Minister of International Cooperation added that, in line with the recommendations of the Egypt Economic Conference 2022, the Ministry of International Cooperation launched the “Hafiz” platform for financial and technical support to the private sector. It is the first integrated platform connecting financial and non-financial services provided by multi-stakeholder development partners to support local and foreign private sectors in Egypt.
She mentioned that digitization, innovation, and entrepreneurship are among the top priorities of the Ministry of International Cooperation, with a current portfolio of 36 projects worth about $1 billion contributing to the implementation of 12 Sustainable Development Goals. She highlighted that regional focus on supporting entrepreneurship and startups can enhance South-South cooperation between countries.
Gas users call for urgent policy and infrastructure decisions to avert 2026 ‘day zero’ (Engineering News)
The Industrial Gas Users Association – Southern Africa (IGUA-SA) is warning of a gas supply ‘day zero’ for several large and small manufacturing enterprises and says that urgent decisions will be required within the coming four months if South Africa is to avoid a looming “gas cliff” within the coming 30 months. IGUA-SA executive officer Jaco Human said the looming shortfall had arisen on the back of Sasol’s announcement last year that it will be halting supply to downstream consumers from 2026. This, partly because it had failed to find sufficient reserves to replace an anticipated tapering of supply from southern Mozambique and partly because Sasol plans to use the remaining gas to displace coal at its own operations to support its decarbonisation.
Human suggested the most realistic supply option to be the importation and re-gasification of liquefied natural gas (LNG) at a new terminal, which is proposed for development at the Matola harbour in Maputo, Mozambique, given its relatively advanced state of development when compared with a proposed terminal at the Port of Richards Bay, in KwaZulu-Natal. However, there were still significant timing risks, with a final investment decision on the $350-million terminal dependent on several offtaker and related infrastructure developments, including a tie-in to the existing Rompco pipeline, a connection between the Rompco and Lilly pipelines, as well as a GtP anchor offtaker.
EAC, ECOWAS seek enhanced cooperation (Tanzania Daily News)
The East African Community (EAC) and the Economic Community of West African States (ECOWAS) members have met in Abuja, Nigeria for the purpose of enhancing cooperation among them. This was revealed here in Arusha in the statement released recently to the media by the Senior Public Relations Officer, Corporate Communications and Public Affairs of EAC, Mr Simon Owaka,
According to the statement, a high-level delegation of the EAC led by the Deputy Secretary General in charge of the Infrastructure, Productive, Social and Political Sectors, Andrea Malueth visited the ECOWAS Commission Headquarters in Abuja, Nigeria recently on a benchmarking mission to enhance integration with EAC bloc.
It was disclosed that during their conversation, Dr Touray highlighted the importance of collaborations among the Regional Economic Communities (RECs) and it was high time the two parties learn from each other. On his side, among other things, Mr Malueth emphasised the importance of EAC learning from the experiences of ECOWAS in their journey to effectively promote trade and integration. “We believe that EAC and ECOWAS can learn from each other and jointly promote regional integration in Africa,” said Malueth.
EAC set to promote trade, investment (Tanzania Daily News)
The Members of the East African Community (EAC) have agreed to strengthen their cooperation in trade and investment to promote trade and strengthen competition in the world market. Speaking to journalists over the weekend immediately after participating in the Meeting of the Sectoral Council on Trade, Industry, Finance and Investment (SCTIFI) in Arusha, the Deputy Minister of Industry and Trade, Mr Exaud Kigahe said they also agreed to cooperate with other communities.
“Apart from cooperation, member countries have agreed to help the private sector grow by removing trade barriers including tax and non-tax barriers as well as improving infrastructure in border areas to strengthen the sector which has an important role in the development of the EAC economy,” said Mr Kigahe.
16th Sectoral Council on Energy currently underway in Arusha (EAC)
The 16th Meeting of the Sectoral Council of Ministers on Energy is currently underway at the EAC Headquarters in Arusha, Tanzania. The three-day Sectoral Council meeting started with the Session of Senior Officials on 12th February, 2014. The Session of the Coordination Committee that brings together Permanent/Principal/Under Secretaries planned for 13th February, 2024 while the Cabinet Secretaries/Ministers’ session will be held on Wednesday 14th February, 2024.
Among the items on the agenda of the meeting are the considerations of the: Implementation status of various decision of the Sectoral Council on Energy, progress made in the development of the EAC Energy Efficiency Policy, review the status of power supply and demand in the region and the progress in the implementation of Power Interconnection Projects in the region.
On 7th of February 2024, fisheries and regulatory officials from the Southern African Development Community (SADC) Member States, accompanied by representatives of private entities in the fish value chain from Malawi and Zambia, visited the Mchinji/Mwami One Stop Border Post (OSBP) in Malawi. The purpose of the visit was to gain a comprehensive understanding of the OSBP’s operations in clearing fish and fishery products, as well as to identify obstacles that may hinder the efficient clearance process.
The Mchinji OSBP, located 120km from the capital city of Malawi, Lilongwe which is in the Central Region of Malawi, has recently standardised its operations and established synergies with Mwami OSBP on the Zambian side. Both these borders resumed OSBP functions in November 2023 after being officially opened by the Presidents of Malawi and Zambia. The automation of systems and the synergies at these borders have significantly reduced the real-time clearance of the movement of people and goods, particularly perishable foods such as fish and fishery products.
Dr. Alexander Kefi, the SADC Project Coordinator for the Programme for Improving Fisheries Governance and Blue Economy Trade Corridors (PROFISHBLUE Project), a project funded by both the African Development Bank (AfDB) and SADC, emphasised the importance of achieving the expected deliverables and noted that thus so far, a total of 13 standards have been harmonised at the regional level.
Three’s a Crisis: Burkina Faso, Niger, and Mali announce that they will leave ECOWAS (tralac)
On 8 February, the foreign ministers of the Economic Community of West African States (ECOWAS) convened to address the potential loss of three member states. At the end of January Niger, Mali and Burkina Faso announced that they would be withdrawing from the regional economic community (REC). While ECOWAS does not yet recognise the departure of these states – to legally withdraw, they would have had to give one year’s notice – the three military-run states have chosen to ignore this requirement and announce their withdrawal anyway. In place of ECOWAS, they have formed an “Alliance of Sahel States” (AES), a military alliance.
One immediate concern for trade is what this will mean for the AfCFTA. ECOWAS has made an offer of tariff concessions, with 90% of tariff lines to become duty free, and it is unclear if the trio’s departure would impact that offer, or if each would submit a new offer. All three states (Niger, Burkina Faso and Mali) are members of the West African Economic and Monetary Union (WAEMU or UEMOA in French) who use the Central African Franc (CAF), pegged to the Euro. WAEMU member states implement a common external tariff, which shares 4 tariff bands with the ECOWAS CET, but does not include the 5th band (35%) that is implemented by ECOWAS on 130 tariff lines. WAEMU also provides for the free movement of persons across borders. However, some relationships will be severed as not all members of ECOWAS are members of WAEMU (notably, Nigeria and Ghana).
ECOWAS chair Tinubu to meet Senegal’s Sall over postponed elections (Al JAzeera)
Nigerian President Bola Tinubu is set to meet his Senegalese counterpart, Macky Sall on Monday in the capital Dakar as a constitutional crisis continues there over postponement of elections initially scheduled for this month. Tinubu, who is also chair of the Economic Community of West African States (ECOWAS), is visiting days after the bloc’s foreign ministers held emergency talks to discuss Senegal, in Nigeria’s capital Abuja. Sall’s decision to push back the February 25 presidential vote has plunged Senegal into one of its worst crises since independence from France in 1960.
ECOWAS has urged Senegal – one of its most stable member states – to return to its election timetable, but critics have already questioned the group’s sway over increasingly defiant member states. The foreign ministers met in Abuja on Thursday, without representatives of the military-led trio – Niger, Burkina Faso, and Mali – which announced withdrawal from the bloc in January. Guinea, also suspended from the bloc for a coup, was also not in attendance.
AfCFTA pledge to eliminate trade barrier within Africa (The Guardian Nigeria)
African Continental Free Trade Agreement (AfCFTA) has reiterated its commitment to eliminate trade barriers within Africa. This was at the recently concluded 13th meeting of AfCFTA Council of Ministers responsible for Trade in Durban, South Africa, which provided participants with a crucial opportunity to negotiate and consider further measures to strengthen the implementation of AfCFTA.
Honourable Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, negotiated Nigeria’s unique position on several crucial matters bordering on digital trade, safeguarding against illegal transshipment under the AfCFTA, and tariff lines in specific sectors of the economy. The Honourable Minister, in strategically protecting Nigeria’s interest, highlighted the need for governments of member states and the secretariat to ensure that the collective interests of the continent is taken into account in adopting a targeted, pragmatic approach towards achieving the objectives of the AfCFTA Agreement.
AfCFTA: Critical issues of infrastructure must be addressed — Rwanda High Commission (Vanguard)
To further promote intra-Africa economic integration, boost African Continental Free Trade Area, AfCFTA, the Rwanda High Commission to Nigeria, Christophe Bazivamo said that unlocking the full potential of AfCFTA requires more than just eliminating tariffs, but critical issues of infrastructure must be addressed. Speaking at a media briefing, Bazivamo added that beyond the removal of trade barriers and development of infrastructures, to truly unlock the AfCFTA potential, local industries must be nurtured to transform Africa from a resource exporter to a manufacturing powerhouse.
Bazivamo said: “Let us nurture our entrepreneurs, empower our skilled workforce especially our youth, and invest in technology that elevates our products to global standards. We must amplify our voices on the global stage participating in trade fairs and exhibitions like Ecofair, it is crucial. We must invest in modern roads, efficient railways, and revitalized ports, stitching our continent together in a seamless web of connectivity. Only then can trade thrive, delivering goods swiftly and cost-effectively across vast distances”, he said.
Related: Research-driven PPPs will catapult our fortunes under AfCFTA (The Business & Financial Times)
Action Against Hunger Calls on African Union Summit to Prioritize Conflict Resolution and Gender Equality (Action Against Hunger)
Action Against Hunger, a global leader in finding sustainable solutions to world hunger, is calling on African Heads of States and Governments to prioritize regional conflict resolution and gender equality at the Feb. 18th AU Summit. The AU Heads of State Assembly, Africa’s supreme policy and decision-making body that determines AU policies, programs, and priorities, will meet for the 37th Ordinary Session under the theme, ‘Transforming Education in Africa; A Gender Perspective.’
This year’s Summit occurs against a backdrop of growing challenges throughout the continent, including droughts and floods fueled by climate change, increasing food insecurity, widespread conflict, and a rise in gender-based violence. Action Against Hunger urges leaders to take action, especially as food prices spike following the aftermath of global events including the war in Ukraine, the Rea Sea crisis, and the conflict in Gaza.
TDB and the World Bank to Accelerate Access to Sustainable and Clean Energy in Africa (World Bank)
The World Bank has extended a facility of close to $300 million to the Eastern and Southern African Trade and Development Bank (TDB), to support distributed renewable energy (DRE) and clean cooking private sector projects in eligible countries of the World Bank’s International Development Association (IDA) that are TDB member states. This new facility follows TDB’s successful financing of innovative off-grid solar projects in the region it serves which were financed under a groundbreaking $415 million World Bank Regional Infrastructure Financing Facility (RIFF) facility that was extended to TDB in 2020.
It is part of a first wave of phases of IDA’s $5 billion Accelerating Sustainable and Clean Energy Access Transformation (ASCENT) program, which is expected to provide access to electricity to up to 100 million people in Africa over the next seven years and contribute to achieving SDG 7.
Africa will ‘friend-zone’ Canada if Ottawa doesn’t improve engagement: experts (Montreal Gazette)
Canada is approaching total irrelevance in the world’s fastest-growing continent, experts argue, saying that a pattern of disengagement in trade, diplomacy and investment in Africa means Ottawa is ceding ground to Russia and China. “Africa is going to friend-zone Canada if the current approach remains, because it’s lukewarm,” said Stanley Achonu, the Nigeria director for the One Campaign.
In recent years, senators have warned Canada is falling behind its peers, as well as emerging states, in setting strategies for trade and development with a continent of more than one billion people. They note that Africa makes up the majority of the world’s potential for solar panels, and has huge reserves of critical minerals and carbon-reducing ecosystems. The World Bank says a looming continental free-trade deal could lift 30 million people out of extreme poverty and inject US$3.4 trillion into African economies. But to get there, Africa needs better governance, huge infrastructure projects and debt restructuring, according to Christopher MacLennan, Canada’s top bureaucrat overseeing foreign aid.
UN deputy chief calls for ‘courage, vision and solidarity’ to boost middle-income nations (UN News)
Speaking at a conference on addressing development challenges of middle-income countries (MICs), in Rabat, Morocco, Amina Mohammed said recent crises have laid bare inequalities and exposed stark contrasts. “While developed countries have been able to protect and swiftly support their populations, other countries have been left dependent on the international community and the existing global support systems.” She said existing frameworks fall short in meeting the complex needs of developing nations.
MICs are a large and diverse group of over 100 countries. According to the World Bank, their per capita incomes vary from $1,000 to $12,000.Perhaps counter-intuitively due to the different classification metrics in use, the list includes 20 least developed countries (LDCs), 19 landlocked developing countries (LLDCs) and 29 small island developing States (SIDS).As a group, they account for nearly one third of global gross domestic product (GDP) and serve as major engines of growth. They are home to around three quarters of the world’s population. However, their vulnerabilities persist regardless of income level, with 62 per cent of the world’s poor residing in MICs.
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U.S. Cuts African Trade Benefits, Hurting the Poor (InDepthNews)
Devise strategy for extension of post-LDC benefits (The Daily Star)
Double taxation treaties and their implications for investment (UNCTAD)
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tralac Daily News
It’s time for Africa! (SAnews)
The official launch of South Africa’s first shipment and preferential trading under the African Continental Free Trade Agreement (AfCFTA) on 31 January 2024, at the Port of Durban goes beyond a feather in the cap for trade and economic growth. It signals the unyielding African spirit which has prevailed against the injustices that plagued our continent, including colonialism and apartheid.
Together we can harness our collective energies and resources ensure to take our continent closer to the ultimate vision of being free of poverty and conflict. The AU’s flagship project of Agenda 2063, is a roadmap to our development over the next 50 years. This project prioritises African goals, including; equality, intra-regional trade, infrastructure and technology development. The African Continental Free Trade Area is in line with Agenda 2063, which is aimed at deepening African economic integration. Strong partnerships among African nations for inclusive socio-economic development is key to advancing the African Agenda. The African Continental Free Trade Area (AFCFTA) also presents opportunities for massive financial growth in Africa.
A thriving African economy requires developed infrastructure to facilitate trade globally. South Africa is working to improve its rail and port efficiencies to drive economic growth and enable further economic opportunities across the continent.
IRP deadline extension an opportunity for more renewables ambition in line with SoNA vision (Engineering News)
The recent extension of the deadline for responses to the draft Integrated Resource Plan 2023 (IRP 2023) presents an opportunity to incorporate the vision presented by President Cyril Ramaphosa in his State of the Nation Address (SoNA) for more renewable energy, the South African Wind Energy Association (SAWEA) asserts. Minerals Resources and Energy Minister Gwede Mantashe announced a month-long extension to the public comment period to March 23 in a recent speech to the Mining Indaba but without committing to public hearings.
There is significant concern about the technology cost assumptions used by the drafters of the document, as well as the material increase in the allocation for gas-to-power for the short-term horizon to 2030 and the substantial decrease in the allocation for wind over the same period.
Draft work visa regulations a boon for attracting skills (SAnews)
South Africa’s new draft work visa regulations are a milestone for the country’s efforts to attract investment and promote job creation. This is according to President Cyril Ramaphosa who addressed the nation through his weekly newsletter on Monday. Last week, the Department of Home Affairs released the draft second amendment of the Immigration Regulations for public comment. The draft regulations deal with remote work and critical skills visas.
“The publication of the new draft regulations are part of our ongoing drive to reform the country’s visa system, making it easier to attract the skills our economy’s needs and promoting innovation and entrepreneurship. An efficient, agile, responsive visa regime is key to attracting business investment and boosting economic growth.
Malawi Announces Visa-Free Entry for Visitors From 79 Nations (VisaGuide.News)
Malawi has recently announced a significant step towards boosting tourism and trade within its borders by lifting visa restrictions for travelers coming from 79 different countries. In this regard, President Lazarus Chakwera revealed the decision aims to facilitate entry for visitors, specifically from countries such as the United Kingdom, China, Russia, Germany, Australia, Canada, France, members of the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (Comesa), VisaGuide.World reports.
Following Malawi’s new visa regulations, multiple entry visas now grant travelers up to 12 months of validity. However, this exemption doesn’t extend to countries that impose visa requirements on Malawian citizens. In addition, certain privileged groups such as diplomats, government officials, and countries with mutual exchange agreements for multiple-entry visas with Malawi are also exempt from these regulations.
Historically, Malawi’s stringent visa requirements have been a significant barrier to realizing its potential for tourist inflows. With its new visa policies, it joins the growing list of countries making travel more accessible for international visitors. In addition to Malawi, last month, Ghana announced plans to implement a policy allowing visa-free entry for all African visitors by the end of 2024. While 48 African countries offer visa-free travel to citizens of at least one other African nation, only five out of 52 African countries allow complete visa-free entry. Seychelles, Gambia, Kenya, Rwanda, and Benin are the only countries every African can visit without a visa.
Moreover, in November 2023, Rwanda also extended visa-free entry to all African nationals, positioning itself as the latest African nation to adopt such a policy to promote free movement and trade across the continent.
Dar port managers woo Ugandan businesses (The East African)
Cargo figures in the Dar es Salaam port to most of its hinterland markets has grown in recent years, but Tanzanian ports chiefs are uneasy about the share of transit traffic destined to Uganda, which has stagnated at two percent, despite the port’s multimillion-dollar investment to compete with Kenya’s Mombasa. According to the Private Sector Foundation Uganda (PSFU), Mombasa still accounts for 80 percent of Uganda’s cargo, as the Central Corridor continues to grapple with infrastructure challenges, high transport costs and slower clearance at the port.
Under the $421 million Dar es Salaam Maritime Gateway Project (DMGP) – implemented since 2017 – Tanzania Ports Authority (TPA) invested to upgrade the facility, to widen and deepen the port’s berths and entrance channels to enable post-panamax size vessels to call at the port.
The authority also invested in a new roll-on, roll-off vessel terminal, among many other service facilities all meant to enhance the port’s overall performance, leading to container traffic to grow at an average rate of 12 percent per annum, and transit traffic at an average rate of 23.5 percent per annum since 2020.These growth numbers saw the World Bank last year rank the Dar port above its main regional competitor, Mombasa, in port efficiency ranking.
‘Africa stands as one of the biggest source markets for trade, business, and tourism’ (The Guardian Nigeria)
The Chief Executive Officer of Kenya Tourism Board (KTB), Ag John Chirchir has said that the West African market is integral in the strategy to diversify tourist source markets and broaden the country’s destination portfolio. According to Chirchir during a meeting held to mark the beginning of a series of roadshows in Nigerian and Ghanian cities, recently, “with around 1.4 billion people, Africa stands as one of the biggest source markets for trade, business, and tourism. This is why Kenya is targeting to raise tourist arrivals from West Africa by pitching for business and leisure travel that are key interests to the region.”
Chirchir noted that Nigeria and Ghana have shown improvements of 6 per cent and 48 per cent respectively in 2023 and rank among Kenya’s potential markets in the African continent. “KTB and Kenya airways are leading over 15 travel trade companies for in-market activations set for February 5th-9th, 2024 and will be held in various cities of the two countries and is expected to attract over 400 trade partners.
Cautious on debt, Ruto woos Japan with public-private deals for projects (The East African)
Kenya has turned to Japan to support its infrastructure ambitions, opening up for Tokyo to tap into public-private partnerships (PPPs) as a way of reducing the load of debt owed to external lenders. This week, President William Ruto made an official visit to Japan, which State House inaccurately labelled a state visit and confirmed that PPPs would be central to the discussions.
Some governments adopt PPPs to avoid debt by inviting investors to fund projects and then recoup their money by charging users of the facility before handing it over to the government. One such PPP is the Nairobi Expressway built by the Chinese. The model usually works well where the demand to use the facility is high. After a series of talks, President Ruto said his administration was upending financing arrangements for mutual benefit.
Tanzania’s major breakthrough in helium (African Mining Market)
As the government amplifies its commitment on carrying out geological survey on critical minerals’ presence in the country, the Helium One Global licensed for exploration has discovered 4.7% of helium concentrations at Rukwa Rift Basin. The Helium One Global on Monday this week in its breakthrough statement described the high concentrations as a big milestone toward achieving commerciality at the earliest opportunity.
“When performing the Basement Drilling Stem Testing (DST), high concentrations of helium began to flow to the surface, following reverse circulation and yielding a compositional mix up to 4.7% helium, 1.5% argon, 8% oxygen and 86% nitrogen” read the statement from the company. Adding “a measured helium concentration of 4.7% equates to almost nine thousand times above background levels.” According to the statement, the company has identified that the frequency of helium increases with depth and is preferentially carried in hot fluids.
Africa’s biggest oil and gas finds are doing little for economies at home (Engineering News)
The last thing Senegal needed in its long-drawn-out effort to capitalize on large oil and gas finds off its coast was political turmoil. Africa’s newest natural gas superstar had bubbled with optimism when BP, Woodside Energy Group and Kosmos Energy agreed to develop the fields off the shores of the West African country a few years ago. The finds were touted as a game changer in a country where villages are still not connected to the power grid and more than a third of the inhabitants live in poverty.
“General electrification for the entire population will become a reality,” Sokhna Ba, the youngest member of Senegal’s parliament, said in an interview in the capital Dakar late last year. “The revenue could also be used to improve the living conditions of the population.” But a string of delays in BP’s $4.8-billion Grand Tortue Ahmeyim, or GTA, gas project, with the latest coming just last month, has meant it won’t happen soon, prompting the country to say it may miss the International Monetary Fund’s economic growth forecast in 2024. Now, matters have been made worse by a bid to delay elections that extends President Macky Sall’s term by almost a year, throwing the country that is among the most stable democracies in West Africa into crisis and raising the cost of funds needed for its energy aspirations.
Ivorian company receives Africa50 investment (ALB)
The Africa-focused private equity platform has taken a stake in a border-control solutions provider active in the WAEMU region. Africa-focused investment bank Africa50 has made an equity investment into Ivorian company Scanning Systems. International law firm Orrick Herrington & Sutcliffe served as legal counsel to Africa50 on the deal which was announced on 18 January, and for which financial terms were not disclosed.
Abidjan-headquartered Scanning Systems was established in 2008, and is a subsidiary of holding company Tassec Investment Holdings Africa. It focuses on the provision of technology-led infrastructure solutions to facilitate border control. It is involved in the construction and operation of one-stop joint border posts (JBPs) in a number of jurisdictions within the West African Economic and Monetary Union (WAEMU) area, including administering the Cinkansé JBP bordering Burkina Faso and Togo for a decade.
Research group warns maritime operators against 2024 uncertainty (The Guardian Nigeria)
The Maritime Researchers and Authors Association of Nigeria (MARASSON) has warned that the year holds a bleak future for the maritime industry, especially as 2023 witnessed poor import and export. The research group stated that Nigeria is gradually sinking as the current economic challenges demand a total liberalisation of trade.
The National Secretary, MARASSON, Ajanonwu Vincent said the deliberate war on trade by the previous Customs administration is still affecting the psyche of the international traders as many of them have gone out of business in the country. Vincent noted that the current administration’s penchant for higher revenue collection without looking at the effects on the masses has consequences for importers and exporters.
He pointed out that the continuous hike in tariff bands and some customs comptrollers’ zeal to exceed their targets were discouraging trade, adding that the Customs Service has abandoned trade facilitation for revenue mobilisation.
APMT, Customs explore investment in scanners (The Guardian Nigeria)
Terminal Manager, APM Terminals Apapa, Steen Knudsen, has said the terminal is in talks with the Nigeria Customs Service (NCS) to invest in more scanners for optimal cargo delivery to consignees. He expressed optimism that cargo delivery to consignees would be faster with the deployment of more scanners to the ports to boost efficiency.
Knudsen stated this to the Executive Secretary of the Nigerian Shippers’ Council (NSC), Akutah Pius Ukeyima and a delegation of the Association of Nigerian Licensed Customs Agents (ANLCA), led by the National President, Nwokeji Emenike, during a working visit to the terminal. He said the terminal has made substantial investments in digital technology and cargo handling equipment to ensure prompt service delivery to customers.
IMF Executive Board Concludes Post Financing Assessment with Nigeria (IMF)
Niger reiterates ban on flights from Nigeria (Business Insider Africa)
In a Notice to Airmen (NOTAM) issued by Niger Republic, the airspace authority stated that the country’s airspace “is opened to all national and international commercial flights from ground to unlimited except for Nigerian flights to or from Nigeria.”
“This restriction doesn’t affect commercial flights that fly over Nigerien airspace without landing there. However, it is recalled that ADB-B (Automatic Dependent Surveillance–Broadcast) or Radar transponders (for surveillance and communication) must remain on for any flight taking place in the Niger Republic airspace,”
“On the other hand, the Niger Republic Airspace remains closed for all military, operational and other special flights. These military or special flights are only permitted subject to prior authorization from the competent authorities. This circular, which only concerns Niger and Nigeria does not repeal no NOTAM in force,” the circular stated.
Lobito corridor: Hoping to break China’s grip on African ore (DW)
In the Congolese border town of Kasumbalesa, you will see one delivery truck after another, in a long queue of more than ten kilometers. Their trailers are covered with tarpaulins to protect the precious cargo: heavy copper plates and bags filled with cobalt. Trucker Tito Mandela has turned of the engine of his Mercedes truck and waits in his driver’s cabin for literally anything to happen.
In October 2023, the United States and the European Union passed a declaration to support efforts to revive and strengthen the Lobito corridor, especially by assisting with finding investors for the project, which according to US government officials will cost more than $1 billion (€1 billion). For Washington and Brussels, linking the Copper Belt with the Atlantic Ocean is, however, also a geopolitical move in their race against Beijing. China currently dominates the market for the strategic supply chains for the energy transition.
In addition to these shorter distances, the fact that the Lobito corridor is a rail link also helps drum up excitement for the project: Hauling cargo on rails is far more climate-friendly. And there is yet another upside: Not a single tree has been felled for the new railway line, as the trains are set to run on a historic artery that is already in place, but needs a major revamp.
African coffee-producing countries urged to add value to coffee export (Xinhua)
While specialty coffee from Africa is gaining popularity among consumers across the world, officials of the African Fine Coffees Association (AFCA) have urged African coffee traders to boost value-added coffee export, and cease export of unprocessed coffee to the international market. The remark came during the 20th African Fine Coffees Conference and Exhibition and the First African Coffee Week that took place from Feb. 6 to 10 in Addis Ababa, the capital of Ethiopia, with the aim of advocating the export of value-added coffee from Africa.
Amir Hamza, chairperson of the AFCA, said coffee-exporting African countries need to concentrate on value addition and apply better marketing strategies to boost their earnings from the coffee export. “The biggest problem Africa is facing is poor marketing approaches and export of unprocessed coffee, something the AFCA is trying to solve. Africa has the best coffees, but they are not marketed as they should be,” Hamza told Xinhua in an interview.
Somalia close to formalise EAC membership (The East African)
Somalia has moved a step closer to ratifying its admission to the East African Community (EAC), paving the way for local legislative authorities to formalise laws that will make it enjoy the benefits of membership. Somalia was admitted to the regional bloc in December, making it the eighth member state. The others are Kenya, Tanzania, Uganda, Rwanda, Burundi, South Sudan and the Democratic Republic of Congo.
Abdullahi Bidhan, a member of the parliamentary sub-committee for foreign relations said “This endorsement of Somalia joining the EAC is historic, benefitting our people and the rest of the community in many ways.” “It will stimulate economic growth,” he added. Somalia has until June to deposit the ratified instruments of the Treaty of accession at the EAC headquarters to become an official full-fledged member.
EAC embarks on use of Mobile App to eliminate NTBs (EAC)
The East African Community Secretariat and Partner States have been directed to operationalise the EAC Elimination of Non-Tariff Barriers (NTBs) Mobile Application including sensitisation by 30th April, 2024. Making the directive, the Ministerial Session of the 43rd EAC Sectoral Council on Trade, Industry, Finance and Investment (SCTIFI) that was held at the EAC Headquarters in Arusha, Tanzania further commended Trademark Africa for supporting the development of the EAC Elimination of Non-Tariff Barriers (NTBs) Mobile Application.
The EAC Elimination of NTBs Mobile Application was developed to ease the reporting, monitoring and elimination of NTBs in the Community. The EAC Elimination of Non-Tariff Barriers (NTBs) Mobile Application was finalised and piloted during the National Monitoring Committee (NMCs) meetings in March 2023. The EAC NTBs App allows the users to report the complaints in one of the three (3) EAC official languages, i.e., English, Swahili and French. The mobile app can be downloaded from the Apple Store, Google’s Play Store, and other Android devices, and can be accessed through www.eac-mobile.portal.africa
EAC experts adopt strategies to boost the region’s agricultural, pharmaceutical and leather sectors (EAC)
East African Community (EAC) regional experts in the agricultural, pharmaceutical, and leather sectors convened in Nairobi, Kenya, to review the progress achieved within their respective industries and to formulate recommendations aimed at enhancing growth and scaling up regional trade. The two-day workshop dubbed ‘Regional Focal Persons Workshop to Monitor the Implementation of the EAC Fruits & Vegetables; Leather & Leather Products; and Pharmaceutical Sectors Strategies and Action Plans’ comprised of experts from EAC Partner States, the EAC Secretariat, East African Business Council and representatives from GIZ/GFA.
In the fruits and vegetables sector, the experts emphasised the importance of harmonizing agricultural and food safety standards within the region. They highlighted the need to support the development and adoption of a code of conduct for farmers and exporters, aiming to strengthen self-monitoring frameworks. Additionally, the experts stressed the significance of prioritising the development and improvement of quality planting seeds and seedlings.
On the pharmaceuticals front, the experts noted significant ongoing projects, singling out the developments in Kenya where two Biovax vaccine manufacturing plans are being set up while in Rwanda, with a BioNTech Vaccines manufacturing plant is set to go to production by end of 2024. They underscored the urgent need for Partner States to expedite and streamline approval processes for pharmaceutical waste disposal, citing the potential risks associated with prolonged procedures.
On the leather sector, the experts highlighted the need for investment and adoption of modern processing technologies to address existing challenges. These challenges include the high cost of production and the production of low-quality leather products. Notable issues identified included low volumes of locally produced leather products, limited capacity of tanneries, and insufficient technology and manpower
SADC aims to enhance growth and development of fish value chains to meet market demand (SADC)
During the validation workshop for the PROFISHBLUE project, a collaborative initiative between the Southern Africa Development Community (SADC) and the United Nations Industrial Development Organisation (UNIDO), which took place in Lilongwe, Republic of Malawi on 6th February 2024, several speakers expressed concerns and lessons learned regarding the inadequate fish and fisheries production in the SADC region to sufficiently meet its market demand.
The workshop aimed to validate project outputs, through exchanging ideas, shared experiences, and discuss policy harmonisation and the elimination of barriers to promote the free flow of fish and fishery products. Dr. Hastings Zidana, the Director of Fisheries for the Republic of Malawi emphasised that fish contributes 4% to Malawi’s GDP, and constitutes 30% of the protein consumed in Malawi, highlighting the paramount importance of fish and fisheries product trading for Malawi and the SADC Region.
A messy withdrawal from ECOWAS (tralac)
On 29 January 2024, the military juntas of Niger, Mali, and Burkina Faso announced their withdrawal from the Economic Community of West African States (ECOWAS). Their explanation was that instead of helping them to protect their security, ECOWAS had imposed “illegitimate, inhumane and irresponsible” sanctions on them after they had previously staged military coups “to take their destiny into their own hands.” They claimed that ECOWAS, under the influence of foreign powers, is betraying its founding principles and has become a threat to its member states. They also said that it was a “sovereign decision” to withdraw from ECOWAS.
In this saga nothing has happened according to the rulebook, and this is certainly not a Brexit type divorce. It is the first time in ECOWAS’ nearly 50 years of existence that some of its members are withdrawing in such a manner.
ECOWAS to work with member states to foster democracy and good governance (ECOWAS)
The Economic Community of West African States (ECOWAS) will continue to promote the ideals of democracy and good governance as well as accountability and transparency. President of ECOWAS Commission, H.E. Dr. Omar Alieu-Touray gave this assurance at the conclusion of the extraordinary session of the Mediation and Security Council (MSC) at the Ministerial Level convened to discuss the recent decision of Burkina Faso, Mali and Niger to withdraw from ECOWAS.
At the end of the meeting held in Abuja, Nigeria, the council urged Burkina Faso, Mali and Niger to pursue sustained dialogue and reconciliation and stressed the critical need for diplomacy and unity in the face of regional challenges. Dr. Alieu-Touray highlighted the yearnings of ECOWAS citizens for good governance stressing that “people in the region are asking for accountable and democratic governments and ECOWAS needs to reflect the aspirations of the people”.
PAPSS Expands into North Africa as Banque Centrale de Tunisie Becomes Thirteenth Member (Afreximbank)
The Pan African Payment and Settlement System (PAPSS) is proud to announce the entry of Banque Centrale de Tunisie (BCT) into its network as its thirteenth Central Bank member, further strengthening its commitment to promoting seamless cross-border payment services and enhancing financial integration across the African continent.
Banque Centrale de Tunisie’s membership in PAPSS signifies the bank’s determination to foster economic growth and development within the country and the African region. This value-adding collaboration will allow Tunisian businesses and citizens to benefit from enhanced payment efficiency, reduced transaction costs, and more opportunities to trade and pay with other African countries.
“As the Pan-African Payment and Settlement System (PAPSS) continues to attract more countries, we are witnessing a growing belief among Africans in their own abilities and potential to drive the development of the continent through their own initiatives. At Afreximbank, we have unwavering confidence that PAPSS will revolutionize the payment landscape within Africa, ultimately benefiting our people. We extend our heartfelt gratitude to Banque Centrale de Tunisie for their trust and decision to join the PAPSS network, as it signifies a significant step towards achieving our shared goals.”
Key AU summit in Addis Ababa to focus on most pressing issues facing Africa (The North Africa Post)
Over 34 African leaders are to converge in Addis Ababa for the 37th African Union (AU) Summit by this week’s end to discuss pressing issues, including education, peace, trade, and governance. African leaders will meet in Ethiopia’s capital this February 17-18, for a pivotal gathering that could shape the course of the African continent for years to come. With the theme ‘Educate an African fit for the 21st Century,’ the event aims to build resilient education systems and address the challenges of development, conflict, and inequality.
The summit could mark a turning point in Africa’s journey towards a brighter, more prosperous future. One of the key themes to be discussed is building resilient education systems for increased access to inclusive, lifelong, quality, and relevant learning in Africa. Access to quality education remains a significant challenge in many parts of Africa, with millions of children still out of school. Besides education, the summit will also cover a range of other critical issues, including peace and security, trade and integration, agriculture and climate change, governance and human rights, and gender and youth empowerment.
More info on the 37th AU Summit
Abuja Roundtable for Economic Transformation in West and Central Africa Declaration (World Bank)
As African countries continue to confront multiple overlapping internal and external challenges, an economic transformation of the continent is achievable but will require creating the right conditions to turn opportunities into transformational accomplishments in key development areas. The World Bank Group is a key partner in this endeavour and its ongoing transformation will further leverage its capacity to support the people of Western and Central Africa.
The roundtable discussed and reaffirmed key priorities for the region which include human capital improvement, job creation through private sector development, food security, and the need to further strengthen financial inclusion and expand safety nets. The importance of budget support to stabilize the macroeconomy and crate fiscal space for investments were highlighted, along with the need for stepped-up efforts by governments to strengthen domestic revenue generation.
IDA is the largest source of development finance for countries in Africa, and offers critical support for climate adaptation, conflict prevention, and private sector mobilization. A continued strong IDA is imperative to reach regional development aspirations, and the roundtable agreed to work together through the African caucus towards a consequential IDA-21 replenishment.
GEF deploys additional high-impact climate adaptation funding (Global Environment Facility)
The Global Environment Facility’s member countries have approved $203 million in high-impact climate adaptation investment for Least Developed Countries, Small Island Developing States, and other countries needing to reinforce their food systems, water resources, and warning systems as a result of growing climate change risks.
Meeting in Washington DC, the Council of the GEF-managed Least Developed Countries Fund (LDCF) and Special Climate Change Fund (SCCF) agreed to fund 21 projects that build on years of support for critical initiatives that are helping countries address their most urgent adaptation priorities in a way that helps local communities, strengthens policy frameworks, and advances environmental goals for the long term.
UNCTAD - Press Conference: Presentation of the Global Supply Chain Forum 2024 (UN Web TV)
Supply chains drive trade and the world economy: for example, international shipping connects countries and ports, carrying over 80% of global trade volumes. In recent years, global supply chains have been disrupted by crises such as climate change, as shown by the drought affecting the Panama Canal, geopolitical tensions as in the Red Sea and the Black Sea, and energy shortages, as well as the COVId19 pandemic. Supply chain disruptions increase the prices of goods, experience has shown.
Government officials, business leaders and experts at the forum will examine issues such as digitalization, food security, transport costs, climate change, developing countries’ financing needs and how to better manage the energy transition in international transport.
Renewed efforts are needed to open markets as barriers to services trade remained high in 2023 (OECD)
The supply of services through commercial presence and digital trade faced new barriers in 2023, as global services providers were confronted by fragmented regulatory environments, according to annual analysis from the OECD. The overall number of services trade liberalisation reforms enacted in 2023 was below the previous year, but the aggregate impact of liberalising policies nonetheless moderately outweighed the introduction of new restrictions.
New liberalisation efforts in 2023 contributed to easing regulatory hurdles in some countries, notably as regards infrastructure-related services, such as construction, architecture, and engineering services. These positive developments were offset, however, by a range of new barriers across several countries, including related to the screening of foreign direct investment affecting services sectors such as computer services, telecommunications, transport, and commercial banking. Similarly, rules on cross-border data flows, digital trade and market entry for foreign e-commerce platforms were tightened, adding to the challenges faced by global services providers, according to the OECD.
OECD Services Trade Restrictiveness Index: Policy trends up to 2024 shows a slowdown in the adoption of new regulations affecting services trade between 2022-23, compared to changes observed in 2021-22, across the 22 major sectors covered.
DG Okonjo-Iweala underlines the need to deliver on trade and development at MC13 (WTO)
“Development has a central place in the WTO’s work”, DG Okonjo-Iweala said. “We need to respond to the needs and concerns of developing countries that account for two-thirds of the WTO membership. … Beyond the agreements we already have, we also see opportunities for developing countries to take advantage of what we are calling ‘re-globalization’ and the decentralization of supply chains.” The 10 Agreement-specific proposals tabled by the WTO G90 group of developing WTO members seek to strengthen existing flexibilities for developing members contained in WTO agreements, otherwise known as “special and differential treatment”, and to make them more precise, effective and operational.
Participants in IFD Agreement agree on objectives for MC13 (WTO)
The over 120 WTO members participating in the successful negotiations on the new Investment Facilitation for Development (IFD) Agreement agreed, at a meeting held on 8 February, to use the occasion of the WTO’s upcoming 13th Ministerial Conference (MC13) to make the agreement public and request its incorporation into the Marrakesh Agreement Establishing the WTO.
The two co-Coordinators of the Initiative, Ambassador Sofía Boza of Chile and Ambassador Jung Sung Park of the Republic of Korea, announced that four new participants - Cameroon, Angola, Malawi and Mozambique – have joined the group since the last plenary meeting in December 2023, bringing total participation in the Initiative to almost three quarters of the WTO’s membership.
The UNCTAD Model Law on Competition after 30 years (UNCTAD)
Committee economic social and cultural rights opens seventy fifth session (OHCHR)
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tralac Daily News
Investment in infrastructure gains momentum (SAnews)
President Cyril Ramaphosa says investment in infrastructure is gaining momentum, and new and innovative funding mechanisms will be used to increase the construction of infrastructure. Delivering his State of the Nation Address (SONA) on Thursday evening, President Ramaphosa said to deal with severe inefficiencies in the freight logistics system, government is taking action to improve the country’s ports and rail network and restore them to world-class standards.
“We have set out a clear roadmap to stabilise the performance of Transnet and reform our logistics system. Working closely with business and labour, we have established dedicated teams to turn around five strategic corridors that transport goods for export purposes.
South Africa’s Agricultural Revival and Economic Resurgence (BNN Breaking)
The resilience of South Africa’s agricultural sector is not an isolated phenomenon. It is part of a larger narrative of economic fortitude and adaptability. The country’s long-term bond yield is on the decline, hinting at a potential reduction in interest rates by 2024. This could stimulate economic growth and private consumption, providing a much-needed boost to the nation’s coffers.
The Reserve Bank is expected to loosen its monetary policy, further fostering job creation and economic expansion. Despite high-interest rates, South Africa has managed to create 2.2-million jobs over the past seven quarters. This is a testament to the country’s unwavering commitment to its people and its ability to weather economic storms.
South Africa’s trade surplus has been maintained for the eighth consecutive year, a remarkable feat in the face of low commodity prices and high oil import costs. The export performance has been robust, with strong showings in various sectors. This has been bolstered by a significant increase in foreign direct investment inflows and the recovery of capital formation. Substantial investments have been made in machinery and equipment, driven in part by commitments to renewable energy.
Competition Commission invites comments on poultry industry market inquiry draft terms (Engineering News)
The Competition Commission will conduct a market inquiry into the poultry industry value chain, saying it has reason to believe there are features in the poultry market that may impede, distort or restrict competition. It invites members of the public and interested stakeholders to make written submissions by March 8 on the draft terms of reference (ToRs) for the Poultry Market Inquiry (PMI) that were gazetted on February 6.
“Market outcomes in the poultry industry matter, as chicken meat and eggs are a key source of protein for the majority of South Africans, and particularly low-income households,” says Competition Commission chief economist James Hodge. “A poultry market inquiry into the concentrated and integrated structure of the industry can complement other initiatives to improve the competitiveness of the industry to the benefit of consumers and smaller participants,” he adds. The PMI will start 20 business days after the publication of the final ToRs, and the final report will be completed within 18 months.
Tanzania eyes a new $1 billion market (Business Insider Africa)
Dr. Selamani Jafo, the Minister of State in the Vice President’s office disclosed to his fellow government officials that by the end of 2023, Tanzania received 35 applications for carbon trade projects, as seen in the Tanzanian newspaper, The Citizen. “Carbon trade is so thriving in Tanzania that it will significantly contribute to the economy soon,” the minister said, responding to a question from a legislator. The minister also went on to reveal that Tanzania had received Sh32 billion between 2018 and 2022 from the carbon trade projects implemented in different regions across the country.
“By December 31, 2023, we had received a total of 35 applications for different carbon credit projects. When the implementation of these projects starts, we expect to generate $1 billion, which will have a significant contribution to the national economy,” Dr. Selamani Jafo stated. He revealed that the government has already initiated conversations with potential catalysts to the market including district commissioners and the media. These conversations are geared toward creating public awareness of the potential carbon credit has in propelling the East African nation’s economy.
Nigeria Customs Services explores the possibility of setting up a Customs Laboratory (World Customs Organization)
From 29 January to 1 February 2024, the Nigerian Customs Service (NCS) hosted a national workshop on Customs laboratories with the aim of conducting a scoping exercise for setting up a national Customs laboratory. The workshop was delivered by the WCO within the framework of the EU-WCO Programme for the Harmonized System in Africa (HS-Africa Programme), funded by the European Union. The workshop was facilitated by a WCO recognized Customs chemist from the Spanish Customs Administration.
In his opening remarks, Mr. CG Niangwan, Assistant Comptroller General of the NSC, confirmed the commitment of NCS in implementing a modern Customs laboratory as another step in the modernization of his Administration. He stressed the importance of Customs laboratories for the purposes of revenue collection, drug enforcement, protection of the society and the environment as well as trade facilitation.
Burkina Faso government, African Development Bank launch project to bolster food security (AfDB)
The government of Burkina Faso has officially launched an African Development Bank supported project to bolster food security in the country against the impacts of Russia’s invasion of Ukraine.
Under its African Emergency Food Production Facility, the African Development Bank Group, has provided €38.4 million—nearly the entire project cost— for PURPA-BF. It will supply nearly 9,000 tons of certified climate adapted seeds to 330,000 farmers to help increase production of maize, rice, soya, cowpea, sorghum and wheat. The farmers-- more than half of them are women, internally displaced individuals and youth-- will also receive 36,000 tons of fertiliser. The project is primarily targeting the country’s major irrigated plains around Bagrépôle, Bama, Banzon and Karfiguéla.
Implementation is expected to boost national rice production by 430,000 tons and maize production by 707,000 tons. Other crops will also see production increases.
China plans to spend US$1 billion to revamp Tanzania-Zambia railway in race to control critical mineral trade routes (South China Morning Post)
As global powers vie for control over critical mineral trade routes, China plans to spend US$1 billion to refurbish a key railway line connecting Zambia’s copper belt region with the Tanzanian port of Dar es Salaam under its Belt and Road Initiative.
On Wednesday, China’s ambassador to Zambia Du Xiaohui handed over a proposal to rehabilitate the Tazara railway to Zambian Transport Minister Frank Tayali, saying the US$1 billion investment would be done through a public-private partnership (PPP) over the coming years.
When the Tanzanian and Zambian presidents visited China in 2022 and 2023 respectively, Chinese President Xi Jinping promised to support the upgrade of the railway, which was originally built in the 1970s and funded by the Chinese government under Mao Zedong as a foreign aid project.
China is keen to use the Tazara rail line to transport mining exports from Zambia and the Democratic Republic of the Congo (DRC). The refurbished Tazara railway will compete directly with a railroad backed by the US and EU to link Zambia’s copper belt and the mineral-rich DRC to the Lobito port on Angola’s Atlantic coast.
Brussels and Washington announced in late October they would fund the rail project to connect the resource-rich region of Zambia to an existing line to the Lobito port. The US and EU are eager to secure minerals that are vital for making batteries and advanced electronics – including cobalt, which comes from the DRC and Zambia. Most of these minerals are now exported to China for processing.
US to invest in rail project linking Southern Africa mines to Angola port (The East African)
The United States will provide more funds for the construction of the Lobito Corridor, a rail link to export metals from Central Africa’s Copperbelt, including a link for Zambia, US energy envoy Amos Hochstein said. US has been supporting the project linking mineral-rich Democratic Republic of Congo (DRC) and Zambia to Lobito port in Angola. The link seeks to bypass logistics bottlenecks in South Africa that have held up copper and cobalt exports - metals vital to the energy transition away from fossil fuels.
In 2022, a consortium led by global commodities giant Trafigura, Portugal’s Mota-Engil and Vecturis SA of Belgium was awarded a 30-year concession for railway services and support logistics on the Lobito Corridor. The consortium plans to spend $455 million in Angola and $100 million in the DRC on equipment, operations and infrastructure maintenance. Additional funding is required to extend the 1,700 km line into Zambia in the second phase.
Cross-border infrastructure development will fast-track regional integration - President (The Sunday Mail)
The development of cross-border infrastructure within SADC will help fast-track regional integration and anchor trade and investment, which are key for robust economic development. This was said by President Mnangagwa here on Friday while officially opening the Botswana-Zimbabwe Bi-National Commission Summit at Maun Lodge.
The President highlighted two specific projects – the Plumtree-Ramokgwebana One-Stop Border Post and the Ponta Techobanine Railway Line – as key pillars of development that hold immense potential to unlock economic growth, create jobs and improve livelihoods.
“The unrestricted movement of our citizens, as well as goods and services, is an essential cog to stronger economic cooperation,” he said. “In this spirit, the establishment of the one-stop border posts should be expedited. The development of cross-border infrastructure projects to increase our economic efficiencies and competitiveness must be pursued with greater vigour and confidence.” He added: ”The proposed railway line between Botswana, Zimbabwe and Mozambique (known as the Ponta Techobanine Inter-Regional Heavy Haul Railway Project) is highly anticipated for greater rail connectivity in the region.”
The first Lamu Port, South Sudan, Ethiopia (LAPSSET) Corridor Development Program joint Technical Committee meeting was held from 24-25 January 2024 in Nairobi, Kenya. The meeting was organized jointly by the footprint countries, in partnership with the United Nations Economic Commission for Africa (ECA) and the NEPAD/APRM Kenya Secretariat. The LAPSSET Corridor Development Program is a regional infrastructure project that aims to connect Kenya, Ethiopia, and South Sudan through a network of ports, highways, railways, pipelines, airports, and resort cities.
Mr. Stephen Karingi, Director of the Regional Integration and Trade Division of the UN Economic Commission for Africa (ECA), stated that the Programme fits well among the ambitions of the UN sustainable development goals and Agenda 2063, “the Africa We Want” as it seeks to enhance trade, investment, regional cooperation and peace among the three countries and beyond. He also recalled the crucial role of the Committee as a platform for accelerating the progress of this Corridor Development Programme, stating that “It is a forum that must be in the forefront of enhancing collaboration and partnership among the three countries and development partners supporting the programme.” Mr. Karingi reiterated ECA’s commitment to support the LAPSSET initiative.
The Sub-Regional Office for West Africa of the United Nations Economic Commission for Africa (ECA/ SRO-WA), is organizing virtually on February 13th a high-level political dialogue in prelude of the 56th Session of the Conference of African Ministers of Finances, Planning and Economic Development of ECA (COM2024).
This meeting will be held in a context where West African countries are facing significant macroeconomic and financial challenges and a continued shrinking of their fiscal space. Indeed, 6 of the 15 countries in the sub-region, namely Capo Verde, The Gambia, Ghana, Guinea-Bissau, Senegal and Sierra Leone have a debt rate exceeding more than 70% which is the convergence criterion at the ECOWAS level in terms of public debt ratio (IMF, 2023).
Placed under the theme “Financing the transition towards inclusive green economies: imperatives, challenges and opportunities for West African countries”, this high-level political dialogue aims to stimulate reflections on West African countries’ specific challenges, imperatives, and financial opportunities to transit to green economies.
ECOWAS Advocates Dialogue, Reconciliation To Bring Back Burkina Faso, Mali, Niger (The Gazelle News)
The Economic Community of West African States (ECOWAS) has called on Niger, Mali and Burkina Faso who recently announced their withdrawal from the subregional bloc to have a rethink and follow the path of dialogue and reconciliation.
The Chairman of the Mediation and Security Council at the Ministerial Level and Nigeria’s Minister of Foreign Affairs, Ambassador Yusuf Tuggar while insisting that the choice of the three countries would only hurt the people, when responding to questions at the end of the sub-region extra ordinary session of the Council.
We are “quite cognizant of the fact that this intention of the three countries namely Burkina Faso, Mali and Niger to exit ECOWAS would bring more hardship and will do more harm to the common citizens of those three countries. “That is not good, and that is why we continue to urge those three countries to remain and follow the path of dialogue and reconciliation. And ECOWAS is going to redouble its efforts towards diplomacy towards dialogue towards reconciliation.”
Tuggar on the implication of the decisions of the three countries to the integration process, said it was just a hiccup to the integration process of the continent, stressing that: “It’s not enough to just think that because of this development, that’s it. It means integration has been derailed, far from it. “This is just a minor hiccup. And we’re talking about 54 countries and even with this hiccup the integration has already started and ECOWAS gone further than a lot of other parts of Africa in terms of integration. So the number of citizens from the three countries living in the rest of ECOWAS (countries), even in this building (ECOWAS headquarters) the number of people from those countries that work in ECOWAS not to talk of the continuous movement of people. The seasonal migration which takes place across the region, these are all things that you cannot just undo overnight, so you know, it takes more than pronouncements.”
Fractured West African Bloc Appeals For Unity (Barron’s)
ECOWAS exit: Security, economic impact on Nigeria (Tribune Online)
ECOWAS told to strengthen strategies to curb membership breakaways (Modern Ghana)
Middle East conflict hits Africa and analysts examine impacts of African States’ exit from ECOWAS (Africanews)
Kagame Leads African Union Reforms for a Stronger, More Sustainable Future (BNN Breaking)
On February 8, 2024, President Paul Kagame of Rwanda convened a virtual meeting with the African Union Commission (AUC) Chair and the AU Reform Team to review the progress of the African Union’s institutional reforms. As the appointed leader of these reforms by the AU Heads of State, Kagame’s focus is to create an effective and financially sustainable African Union that is better equipped to address the challenges facing the continent.
In preparation for the upcoming African Union Summit, today’s virtual meeting between President Kagame, the AUC Chair, and the AU Reform Team emphasized the importance of sustaining progress towards an effective and financially sustainable African Union. During the meeting, the attendees reviewed the progress made in implementing the reforms and discussed strategies to maintain momentum. The discussions highlighted the need for continued commitment from all AU member states to ensure the successful implementation of the proposed changes.
The objective of the reforms, as envisioned by President Kagame, is to create an African Union that is better equipped to address the challenges facing the continent and execute high-impact programs that align with Africa’s growth, development goals, and the vision set forth in Agenda 2063. As the committee of experts continues its work, the hope is that the proposed changes will lead to a more unified, efficient, and impactful African Union. With the support of the AU member states, this vision of a stronger, more sustainable African Union may soon become a reality.
Global eco-digital economy to double in next five years (Consultancy.eu)
The combination of ecology and digitization is rapidly gaining ground in the business world. In response to the ongoing climate crisis, companies have widely adopted digitization as part of a strategy to promote sustainability. So far, that seems to have been paying off. Thanks to digital technologies, companies worldwide have reduced their energy consumption by 24% and their CO2 emissions by 21% since 2018, according to Capgemini’s research report.
In the coming years, digital solutions will play an increasingly important role in both sustainability and economic growth, said Fernando Alvarez, Chief Strategy and Development Officer at Capgemini. “We are transitioning to an eco-digital economy. It’s not just about economic value but also about ecological and social value,” said Alvarez.
BRICS financial track priorities for 2024 identified (Bank of Russia)
On 7 February 2024, as part of Russia’s BRICS presidency, Deputy Finance Ministers and Central Bank Governors of the BRICS countries hold an online meeting. This was the first event in the BRICS financial track with the participation of representatives of countries that had become full members of this association since 1 January 2024.
At a special session dedicated to the issues of interaction between BRICS central banks, the Bank of Russia presented the priority areas of cooperation within the financial track: better functioning of the mechanism of the BRICS Pool of Conventional Currency Reserves; the next issue of the BRICS Economic Bulletin dedicated to the economic situation in BRICS countries amid high interest rates; payment interaction; information security of the financial sector; use of financial technologies; transition financing and sustainable development; and a platform for open events, seminars and round tables.
Particular attention was paid to the issues of increasing the proportion of national currencies in mutual settlements and creating an independent, equally accessible financial infrastructure, as well as prospects for the development of cooperation in anti-money laundering and combating the financing of terrorism, and credit ratings.
BRICS Wealth Report 2024 (Henley & Partners)
Reform IMF, WB to reflect interests of Global South, BRICS has role: Guterres (ETBFSI.com)
The international financial and development institutions should be reformed to reflect the interests of the Global South, Secretary-General Antonio Guterres has said. While the BRICS can play an important and complementary role for developing nations, he stressed that it should not contribute to a fragmentation of the world economy.
“We obviously need that those institutions reflect more obviously the interests of the Global South”, he emphasised. Asked about the role of BRICS, he said that “it is important to have a multiplicity of different organisations to support developing countries” in the finance and trade sectors. “But”, he added, “it is essential that (it) doesn’t correspond to a fragmentation of the global economy”. “One of the most important aspects that we need to preserve today is One Global Economy, One Global Market, One Global Internet and to avoid the fragmentation of that global economy”, he said.
Kenya to host 6th United Nations Environmental Assembly (CGTN Africa)
Kenya’s Cabinet Secretary for Environment, Climate, and Forestry Soipan Tuya said the 6th United Nations Environmental Assembly (UNEA-6) will be held from February 26 to March 1 at the UN Complex in Gigiri, Kenya and over 5,000 delegates, including heads of state and governments from the 193 UN member states will attend the meeting. Tuya made the statement during a press conference on Thursday in Nairobi, capital city of Kenya.
Inger Andersen, the Under-Secretary-General of the United Nations and Executive Director of the United Nations Environment Programme reiterated the importance of sticking to the world’s environmental must-do list to keep up with climate change and its effects. “The impacts are here and growing. Last year was the hottest on record, bringing more intense storms, droughts, and wildfires. Species are under massive pressure, forests are falling and soils are turning infertile. Millions of people are dying each year from exposure to pollution and chemicals,” said Andersen.
According to the United Nations, UNEA-6 will put a special focus on how stronger multilateralism can help hasten efforts toward ending the ongoing climate crisis.
Landlocked Developing Countries Conference to Address Development (Inter Press Service)
Landlocked developing countries need greater support from the international community so that they are no longer left behind when it comes to progressing with the SDGs, says the UN High Representative of the Least Developed Countries. The Third UN Conference of Landlocked Developing Countries (LLDC3) is set to be hosted in Kigali, Rwanda, in June. A preparatory committee for the conference has been established and convened its first meeting on Monday.
The overarching theme of the conference, “Driving Progress through Partnerships,” is expected to highlight the importance of support from the global community in enabling LLDCs to meet their potential and achieve the SDGs.
Rabab Fatima, Under Secretary-General and High Representative of the Office for the Least Developed Countries, and the Secretary-General of the LLDC3 Conference, remarked that this conference would be a “once-in-a-decade opportunity” for the global community to address the needs of the LLDCs in order to “ensure that nobody is left behind.”
“The 32 landlocked developing countries are grappling with unique challenges due to their geographical and structural constraints and lack of integration into world trade and global value chains. Their situation has been further exacerbated by the lingering effects of the pandemic, climate change, and conflict,” she said.
Thirty-two countries are classified as LLDCs, 17 of which are also classified as Least Developed Countries (LDCs). Sixteen are in Africa, and the remaining are located across Asia, Europe, and South America. This year will mark the first time that the LLDC Conference will be hosted in Africa.
In the current scenario of triple planetary crises, environmental stewardship and visionary leadership are indispensable elements for fostering collective action and propelling global efforts to address shared environmental challenges.
With the above backdrop, speaking at the inaugural session of the 23rd edition of the World Sustainable Development Summit (WSDS), the Hon’ble Vice President of India Shri Jagdeep Dhankhar emphasized that sustainable development and containing climate change are quintessential to a secure future.
The Hon’ble Vice President underscored, “The challenges we face are daunting, but they are not insurmountable. By joining forces, embracing innovation, and fostering international cooperation, we can pave the way for a sustainable and secure future for all. Let this Summit be a catalyst for action, inspiring us to redouble our efforts and work towards a world where the principles of sustainable development guide our every decision.”
Speaking at an earlier session on finance, H.E. Ms Teresa Ribera Rodríguez, Minister, Ministry for the Ecological Transition and Demographic Challenge, Spain, underscored, “The challenge in mobilizing climate finance is about finding the right instruments to do so, the right incentives, the right signals, to ensure that we dedicate our efforts where they are needed. For instance, we cannot expect climate vulnerable, fiscally constrained developing countries to have recourse to credit instruments that can accelerate mitigation and adaptation actions.”
H.E. Mr Willie Tokataake, Minister, Ministry of Infrastructure and Sustainable Energy, Kiribati, shared the unique challenges faced by the small island developing states. He highlighted, “For any holistic discussion on the looming climate crisis, it is pertinent to hear the voices of the most vulnerable countries. The efforts by small island nations to mitigate the climate change impacts are very minimal given our insignificant emissions compared to the developed countries’ emissions, yet we are the most impacted nations from climate change impacts. I am glad to be here today to represent the concerns my country faces and deliberate on effective global solutions.”
Rich countries miss key deadline for loss and damage fund launch 107039 (Devex)
Higher-income countries have missed a deadline to nominate their board members for the fledgling loss and damage fund, potentially creating delays in the fund’s bid to assist communities experiencing the adverse effects of climate change.
After decades of pressure from climate-vulnerable, lower-income countries and years of negotiations, countries agreed to institute the fund at the 28th U.N. Climate Change Conference of the Parties, or COP 28, and appoint a 26-member board to supervise it.
Regional groups were asked to select their board representatives “as soon as possible” and the U.N.’s climate change arm, the United Nations Framework Convention on Climate Change, was to convene the first meeting of the fund’s board after all members had been appointed, “but no later than 31 January 2024.”
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Infrastructure deficit continues to hold back African mining (African Business)
These are interesting times for the African mining industry. Interest in the continent’s critical mineral reserves is soaring: lithium, copper, cobalt and nickel are vital to the energy transition and are opening up new mining opportunities across Africa. Meanwhile, however, the problems at South African rail network Transnet have hit the country’s bulk miners hard – and delays to new rail projects are hampering efforts to develop new mines in Central Africa.
Modest global economic growth should drive slightly increased demand for mining commodities overall in 2024. However, mining analysts CRU forecasts a 7.4% fall in the global volume of seaborne thermal coal traded in 2024, as international sentiment turns against coal-fired power generation. Coking coal production is expected to remain stable as a result of solid demand from the steel industry. There should be modest growth in demand for base metals in industrialised countries, with stronger growth for critical minerals. This should benefit African exporters but as always domestic constraints will have a bigger impact on the performance of African producers.
While critical minerals are a bright spot, there appears to be no end in sight to the problems currently plaguing the South African bulk mining sector. The industry is facing something of a perfect storm, with port congestion and a lack of rail locomotives exacerbating the impact of coal contract fraud and widespread vandalism of rail infrastructure.
CGA welcomes support from shipping company to boost citrus exports (Engineering News)
The Citrus Growers Association of Southern Africa (CGA) has welcomed the announcement that global liner shipping company Hapag-Lloyd will be helping to export citrus from the ports in Durban and Gqeberha. The new service will run by the end of May, in time for the bulk of the 2024 season’s citrus, until September.
The CGA’s role in facilitating Hapag-Lloyd’s entry into the market was undertaken with the aim of increasing both capacity and competition, to ensure long-term sustainability for the sector. Recent shipping price spikes owing to attacks on vessels in the Red Sea, as well as drought-related complications affecting the Panama Canal, have shown how exposed many fruit exporters are to increases in shipping rates. CGA believes any measure that can introduce some stability and competition into the shipping market is a step forward.
“The citrus industry and the broader economy need as much access to shipping as possible. Apart from keeping the market competitive and flexible, a new entrant is also welcome in the context of the large projected increase in citrus yield over the next few years,” CGA explains.
Busa seeks govt’s backing on private sector support to resolve energy, logistics crises (Engineering News)
Business organisation Business Unity South Africa (Busa) has outlined its expectations for President Cyril Ramaphosa’s State of the Nation Address tonight, with the first being a call for a clear acknowledgement on the partnership between government and business on energy, logistics and crime and corruption. It also expects a commitment from government to open up space for greater participation by the private sector in building, operating and maintaining critical logistics networks and in generating energy.
Busa highlights that there has been some progress in these areas, particularly in energy, but also in logistics, with the recent announcement that Transnet Freight Rail has taken delivery of seven sets of locomotive batteries procured by the Richards Bay Coal Terminal. The business organisation also wants a clear commitment to ensure that critical pieces of legislation, like the National Prosecuting Authority Amendment Bill will be processed expeditiously.
This is part of a broader commitment to consider legislation that promotes partnerships between the public and private sectors to enable the private sector to assist government to build its capacity to be an enabling government and deliver critical priorities, Busa explains.
Temporary poultry rebate in response to HPAI outbreak, Itac says (Engineering News)
Amid the creation of a temporary rebate on poultry products – as set out by Trade, Industry and Competition Minister Ebrahim Patel to the International Trade Administration Commission of South Africa (Itac) – Itac notes that the directive followed the Department of Agriculture, Land Reform and Rural Development (DALRRD) confirming the outbreak of Highly Pathogenic Avian Influenza (HPAI), which forced the culling of millions of fowls at great loss to key players across the poultry value chain.
Itac explains that the temporary rebate does not apply to anti-dumping duties and is not a full rebate in some product categories, such as bone-in cuts where importers will still have to pay a duty of 37% to ensure continued protection for domestic poultry producers against unfair trade practices and injurious imports.
Moreover, the volume of the tariff rate quota for the first six months was determined to be 86 000 t, which may be equally divided into two three-month periods, or 43 000 t per three-month period, with the permits administered on a three-month basis over the first two three-month periods at 43 000 t per three-month period. As stated in the guidelines, Itac points out that the issuing of permits under the rebate provision may be discontinued if domestic production has satisfactorily recovered from the HPAI outbreak.
Five-year multinational project kicks off to advance the circular economy in the textile industry (Engineering News)
“The World Bank estimates that nearly 20% of global wastewater comes from textiles,” said United Nations Industrial Development Organization Project Administrator, Franchesca Beru at an inception workshop for a five-year multinational project, titled Promotion of the circular economy in the textile and garment sector through the sustainable management of chemicals hosted by the National Cleaner Production Centre South Africa (NCPC-SA). The countries participating in the project are Lesotho, Madagascar and South Africa, with Ethiopia being a recent addition. The application of circular economy principles promises great benefits for companies, the sector, and the country.
“The workshop aimed to set the scene for the next five years. It was a platform for delegates to share knowledge, challenges and experiences around circularity in the textile and garment sector, with specific emphasis on chemical management and waste discards,” said Lesego Hlalethwa, the NCPC-SA workshop organiser and programme director.
She explained that the participating countries were selected based on their export contributions. “South Africa is a top 10 exporter of apparel as are Lesotho, Madagascar, and Ethiopia. We also based our selection on UNIDO’s previous experience in the countries. UNIDO has worked with South Africa and the other countries quite extensively on different projects. Regional integration was also a consideration,” she explained.
Uganda has taken a major step towards creating a circular economy to drive sustainable growth and green industrialisation in line with its Vision 2040 national agenda. With the support of the African Development Bank, the country launched the circular economy roadmap process on 31 January 2024 in the capital, Kampala. Representatives of the government and the African Development Bank attended.
The initiative, implemented jointly with the African Circular Economy Alliance (ACEA) and backed through the Bank’s Africa Circular Economy Facility (ACEF), will engage government policymakers, businesses and civil society organizations in efforts to tap the full potential of circularity to accelerate progress towards sustainable development goals and climate action.
Kenya imports from China in rare decline on hard economic times (The East African)
Kenya’s imports from China, the country’s leading source of goods, recorded a rare decline in 2023, signalling muted consumption during the year amid a high cost of living. Data from the General Administration of Customs of the People’s Republic of China (GACC), which is China’s equivalent of the Kenya Revenue Authority (KRA), shows that China exported goods worth $7.87 billion (Ksh1.26 trillion at current exchange rates) to Kenya last year. This marks a decline of 1.11 percent compared to the $7.96 billion (Ksh1.27 trillion) that the Asian giant shows it exported to Kenya in 2022. Such a decline is rare, and not even during the pandemic in 2020 when global trade ground to a near halt did it occur, according to Chinese customs data.
China is a major source of electronics, clothes, beauty products, steel, furniture, equipment and machinery. The decline in imports from the Asian giant indicates muted demand from local consumers amid high inflation that has reduced the spending power of Kenyans. According to the Central Bank of Kenya (CBK), non-food imports took a hit during the year, especially due to a slowdown in infrastructure-related spending as well as manufactured goods, oil, and chemicals.
Booming sectors: Where investors put their money (The Citizen)
Tanzania’s manufacturing, transportation and commercial building sectors are increasingly appealing to investors due to their potential for profit, personnel availability, policy framework, growing demand and perceived sector stability. The three sectors, according to the statistics of registered projects by the Tanzania Investment Centre (TIC), were top investors’ choices in the country in 2023, as the centre reports over $5.67 billion (estimated Sh14.38 trillion) in total capital injected. Data showed that the three sectors contributed more than two-thirds of the total capital injected from January to December 2023, at nearly $3.9 billion.
University of Dar es Salaam (UDSM) Prof Jehovaness Aikaeli said investors look at sectors that can generate lucrative returns, those with the potential to bring profit and those with a high probability of growth over time. “But they also consider the availability of inputs, the global economic situation, and the specific economic conditions of the sector, as well as the security of their investments in the country,” he said.
Experts predict food import inflationary impact as Burkina Faso et al exit ECOWAS (The Business & Financial Times)
Experts are predicting a possible import inflationary effect on food commodities from Burkina Faso, Niger and Mali as a result of those countries’ withdrawal from the ECOWAS bloc. Global Credit Rating (GCR) – a subsidiary of Moody’s – has indicated that leaving ECOWAS will have a general inflationary impact in the domestic markets of all the three countries, which will inevitably be transferred to the price of food commodities imported into neighbouring countries including Ghana.
It says the movement of people across various borders and trading in these countries will likely be limited – a situation that could possibly promote commodity hoarding with price hikes.
Ghana currently imports 90 percent of its fresh tomato from Burkina Faso, with a national consumption demand in excess of 800,000 metric tonnes per annum, according to data from the Ghana Incentive-Based Risk-Sharing System for Agricultural Lending (GIRSAL). Trade data from the Ghana Vegetable Producers and Exporters Association show that the country imports some US$400million worth of tomato from Burkina Faso each year. Burkina Faso and Mali also account for almost 70 percent of Ghana’s livestock import.
I want to build a Digital Ghana for inclusive economic growth - Bawumia (MyJoyOnline)
Vice President and Flagbearer of the NPP, Dr Mahamudu Bawumia, has declared that his objectives as President would include building what he has labelled Digital Ghana, which will be ready for the ongoing global digital revolution for inclusive economic growth in Ghana. Addressing the nation on February 7, to reveal his vision and priorities for Ghana, he revealed several policies in other sectors but stressed the indispensability of a Digital Ghana. The programme he said will be the anchor, to ensure Ghana is not left behind in the technological demands of the modern world.
Dr. Bawumia stated further that his Digital Ghana vision is also aimed at applying technology to transform key sectors of the economy including agriculture, healthcare, education, manufacturing, and the financial sector for a prosperous digital economy which will make Ghana a digital hub and also create jobs for the youth.
“I want to build a Ghana where we leverage technology, data and systems for inclusive economic growth. I want us to apply digital technology, STEM, robotics and artificial intelligence for the transformation of agriculture, healthcare, education, manufacturing, fintech and public service delivery.”
Ghana Shippers’ Authority participates in Ghana Expo 2024 in Tanzania (The Business & Financial Times)
In line with Ghana’s strategy to increase trade within Africa under the Africa Continental Free Trade Area (AfCFTA), the Ghana Shippers’ Authority (GSA) in collaboration with the National Coordination Office (NCO) of the AfCFTA participated in the Ghana Expo 2024 in Tanzania from Wednesday 24th January to Sunday 28th January 2024, at the Mlimani City Conference Centre in Dar es Salaam in Tanzania.
The event dubbed, “Driving the AfCFTA Momentum: Enhancing Ghana – Tanzania Trade Relations,” seeks to foster business partnerships, explore trade prospects, and promote investment between the two countries through structured ‘business to business’ matchmaking sessions. The event is considered as Ghana’s contribution to the Guided Trade Initiative (GTI) under the AfCFTA, launched in October 2022 which enabled Ghanaian shippers to test trade documentation under the AfCFTA.
Mrs. Monica Josiah, Head of Shipper Service and Trade Facilitation department of the GSA, underscored the critical role of shipping in the success of the AfCFTA. She indicated the success of AfCFTA will be impeded if deliberate measures are not made to provide the necessary shipping infrastructure and streamline processes in the shipping value chain. She also stressed the need for traders to comprehend import and export requirements and procedures of the African countries they intend to trade with, to facilitate the smooth flow of goods under the AfCFTA. She urged exporters and importers in Ghana to seek necessary guidance from the GSA in matters relating to cargo shipment.
Shipping costs at Mombasa Port set to rise (The Citizen)
Kenya Ships Agents Association (KSAA) on Wednesday said importers should expect higher charges from this week as stakeholders assess the increasing insecurity from Yemen Houthis’ claim of fresh Red Sea attacks on British and American ships. KSAA Chief Executive Officer Juma Ali Tellah said shippers are concerned about the escalating conflict along the Red Sea route, and its potential repercussions on the business community and consumers in East Africa.
The worry was always expected to bring a new burden. But the actual cost increment wasn’t known since December when Houthis first fired the first missile. “Despite efforts to normalise freight rates following events such as the Covid-19 pandemic and the Russia-Ukraine War, the ongoing attacks by Houthi Rebels present a persistent challenge.” “Major shipping lines, including those represented by KSAA, are responding by rerouting vessels around the Cape of Good Hope, a costly alternative that directly impacts the business community and consumers in East Africa,” said Mr Tellah.
He added, “The rerouting of ships will result in longer shipping distances, causing an upward surge in freight rates and disturbances in the supply chain. Delays in the smooth movement of goods are expected due to extended transit routes.”
Egypt’s trade deficit rises by 5% in November 2023 (Dailynewsegypt)
Egypt’s trade deficit reached $3.07bn in November 2023, compared to $2.92bn in the same month of the previous year, marking a 5% increase, according to the monthly bulletin of “Foreign Trade Data” issued by the Central Agency for Public Mobilization and Statistics (CAPMAS). The bulletin attributed the rise in the trade deficit to the decline in export value by 20.6%, which amounted to $3.21bn in November 2023, down from $4.04bn in November 2022. The decrease in export value was mainly due to the lower prices of some commodities, such as ready-made clothes by 4.5%, petroleum products by 23.7%, crude oil by 28.6%, and fertilizers by 59.6%.
On the other hand, some commodities witnessed an increase in export value in November 2023, compared to the same month of the previous year, such as various pastries and food preparations by 26.6%, fresh fruits by 4.2%, flat-rolled products of iron or steel by 324.5%, and carpets and kilims by 12.0%.
Nigeria joins US, EU, others to launch TRS for port operations (Tribune Online)
Nigeria joined leading global economies like the United States of America, the European Union, and Asia on Thursday to launch the Time Release Study (TRS), aimed at enhancing the nation’s trade facilitation regime, at the Tin-Can Island Port in Lagos. The launch event, which took place in Lagos, marked a pivotal moment in Nigeria’s commitment to streamlining Customs operations and fostering a conducive environment for international trade.
Minister of Finance, Wale Edun, said: “TRS falls within the domain of the Federal Government’s renewed hope agenda, demonstrating President Bola Ahmed Tinubu’s commitment to unleashing full economic recovery for the country. TRS also redefines the best approaches to creating an enabling environment for businesses, in addition to providing excellent services for economic cooperation. A conducive port environment is crucial for the facilitation of international trade.
“Efficient Customs processes are paramount for achieving cost-effective goods clearance and indeed assuring us of efficiency in the system. So, for Nigeria not to be left behind in the global world of development, we need to key into this initiative. I want to encourage all stakeholders in the port to rally around Customs to ensure the success of the TRS.”
Africa’s Future Hangs in the Balance as Leaders Convene in Addis Ababa (BNN Breaking)
The 37th Ordinary Session of the Assembly of the Heads of State and Government of the African Union (AU) is set to take place on February 17-18, preceded by the 44th Ordinary Session of the Executive Council on February 14-15. With the theme “Educate an African fit for the 21st Century: Building resilient education systems for increased access to inclusive, lifelong, quality, and relevant learning in Africa,” the summit aims to address one of the most pressing issues facing the continent today.
Access to quality education remains a significant challenge in many parts of Africa, with millions of children still out of school. The summit will explore ways to build resilient education systems that can withstand the various shocks and stresses that African countries often face, from conflict and displacement to climate change and disease outbreaks.
Beyond education, the summit will also cover a range of other critical issues, including peace and security, trade and integration, agriculture and climate change, governance and human rights, and gender and youth empowerment. Each of these topics carries its own weight and significance, and the discussions that take place over the course of the summit could have far-reaching implications for the lives of millions of Africans.
Mining Indaba: Africa’s critical minerals lay the ground for mutually beneficial partnerships with industrialised nations (Daily Maverick)
Critical minerals like lithium, cobalt, copper and rare earth elements are all the rage because they are crucial ingredients of green technologies such as batteries for electric vehicles and wind turbines. But “critical for whom?” World Bank mining expert Sven Renner asked during a panel discussion at the indaba. He stressed that there were two parties in mining partnerships. Industrialised countries had a legitimate interest in securing supplies of minerals, including critical minerals.
“While African mining countries — as they tell us again and again — have an interest that goes beyond supplying industrialised countries with their minerals,” Renner said, “the question is, how do we find that common ground … that would really allow for a partnership?” To ensure the African side also benefitted, mining investors needed to align with the mining countries’ policies and priorities, including creating jobs, leveraging the mining sector for broader development, particularly infrastructure development such as energy and transportation, and adding value to raw minerals.
Renner noted that about $5-trillion a year would have to be invested in the energy transition if the world hoped to meet the target of limiting the global temperature to 1.5°C above the pre-industrial level.
Poverty, debt and climate risks: UNCTAD deputy urges stronger support for middle-income countries (UNCTAD)
UNCTAD Deputy Secretary-General Pedro Manuel Moreno spotlighted on 6 February the challenges and potential of middle-income countries during a speech at a high-level conference in Rabat, Morocco. Mr. Moreno said these nations lack the global support they need, despite being home to about 75% of the global population and 62% of the world’s poor and facing mounting debt and worsening climate vulnerabilities. “If we are committed to a world of shared prosperity, these countries need our support,” Mr. Moreno said.
Mr. Moreno highlighted the essential role of industrial policies in helping some nations avoid the trap, pointing to East Asian success stories like the Republic of Korea. These countries leveraged their existing industrial skills to develop and expand new production and export sectors, moving into more complex and high-value areas like steel and electronics. “At the heart of these success stories were targeted industrial policies,” Mr. Moreno said. “While such policies became out of fashion a few years ago, there is renewed interest in them, and for good reasons.”
Mr. Moreno emphasized the key role industrial policies can also play in capitalizing on these countries’ “green” potential. “There is immense potential of renewable energies and the energy transition in middle income countries,” he said, pointing to Morocco as an example. The country now hosts one of the largest wind farms in Africa and has the potential to become a key exporter of solar energy. But realizing this potential requires quick access to clean technologies.
Quick links
Could the EU’s trade deal with Kenya strengthen the African Continental Free Trade Area? (EUROPP)
America should not allow its trade programme with Africa to die (Financial Times)
While the world is in a state of flux, all eyes are on Africa (African Business)
How Africa can finance its climate change strategy (African Law & Business)
Economists call for negotiating trade benefits at WTO MC13 (Business Post)
Stitching future apparel manufacturing digital supply chain (The Edge Signapore)
The West is turning inward. Here’s how the Brics+ countries can surpass it (The National)
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Investec Logistics Update: South Africa’s trade outlook for 2024 (Investec)
Global growth is expected to be subdued, if not stagnant in 2024 and amidst this slow growth and some of the challenging market conditions, global trade is also expected to be sluggish. According to The World Bank global trade growth, in 2024, is anticipated to be only half the average in the decade before the pandemic.
“Current geopolitical tensions are high. While these tensions currently only have a direct effect on certain regional trade routes such as Europe-Asia, should they escalate, it certainly can destabilise global trade and supply chains in many ways,” adds Hobson.
From a South African perspective, the biggest concern is the efficiency of ports and rail infrastructure. “If sustainable progress doesn’t get made soon we may see further route and capacity changes on the South African in and outbound routes as it has become too expensive to have vessels stuck in ports for days and weeks,” says Hobson.
“Shipping lines could utilise their capacity more effectively on other trades if required. We may even see some remove direct sailings or only have limited sailings coming into South Africa – which will reduce available capacity and increase freight rates”.
South Africa Committee Approves WTO Fisheries Subsidies Agreement Ratification (BNN)
In a significant step towards sustainability, the Portfolio Committee on Trade, Industry and Competition in South Africa has given its approval to ratify the World Trade Organization’s (WTO) agreement on fisheries subsidies. The agreement, adopted by consensus at the WTO’s 12th Ministerial Conference in June 2022, is an effort to alleviate pressure on global fish stocks and aligns with the United Nations’ sustainable development goal to eliminate harmful fisheries subsidies.
The first phase of the agreement includes rules to curb harmful fishing subsidies. It also provides for special treatment for developing and least-developed countries, establishing a fund for technical assistance. The agreement prohibits support for IUU fishing, fishing of overfished stocks, and subsidies on the unregulated high seas.
Further negotiations on overfishing and overcapacity issues are scheduled for the second phase, with the objective of delivering a comprehensive agreement at the upcoming 13th Ministerial Conference.
Mashatile calls for more to be done to transform mining industry (SAnews)
Deputy President Paul Mashatile believes that although the Mining Charter has achieved some success in reforming the mining industry, more still needs to be done. “The 30 years of our nation’s democracy should compel us to become even more proactive about the issue of economic transformation in this industry and country.” The Deputy President delivered a keynote address at the South African Youth Economic Council (SAYEC) Business Dialogue during the Mining Indaba in Cape Town.
“The transformation of this sector is important because it forms a vital part of our country’s development trajectory, driving infrastructure development, which includes the construction of roads, railways, and power plants, and positively impacting the economy. “Our country’s rich natural resources provide a comparative advantage in processing, manufacturing, and beneficiation through mining value chains,” he told attendees on Tuesday.
The Deputy President said while the economic growth of the sector is important, its transformation is equally important, to the extent that it is inclusive of women, youth, and other marginalised groups in society.
Crucial to combine agricultural development with mining, Indaba hears (Engineering News)
Africa is going to have a huge amount to do to help solve the world’s climate change problems, Toronto-listed Ivanhoe Mines executive chairperson Robert Friedland emphasised in his far-reaching thirtieth address to the thirtieth Investing in African Mining Indaba in Cape Town.
In those 30 consecutive Indaba presentations, Friedland has regularly highlighted the global need to combat climate change along with the critical role that young Africans will play in saving the planet, even though Africa has done the least to damage it.
Last year, humanity experienced the highest temperatures ever recorded. “This is no joke, and it’s not going away,” Friedland told the full-house audience at the event covered by Mining Weekly. In current circumstances, the world’s greatest commodity is, no, not copper, but water, “the most valuable commodity on our planet”, with only 2.5% of it fresh and humanity facing a looming water crisis.
National food loss, waste reduction strategy on the cards (Engineering News)
The Department of Forestry, Fisheries and the Environment’s (DFFE’s) Draft Strategy for Reducing Food Losses and Waste, published for comment in September 2023, will likely result in a newly promulgated national food loss and waste strategy in 2024, says alternative waste treatment company BiobiN South Africa director Brian Küsel.
“Businesses that produce large volumes of food waste will need to make provisions to divert their waste through alternative waste treatment methods, like composting for example. “Numerous waste regulations have come into effect in recent years with the intention to divert more waste from landfill and improve recycling rates. We have seen this with the extended producer responsibility regulations and the waste classification regulations,” he notes.
The food and organic waste stream in South Africa generates about 12.6-million tonnes of food loss and waste a year. The majority of South Africa’s food losses and waste, or 68%, occur in the early stages of production, with 19% occurring during post-harvest handling and storage, and 49% during processing and packaging. Of the food that is wasted, 44% is vegetables and fruits, 26% grains, 15% meat and the remaining 13% consists of oilseeds, tubers and roots.
Despite the hazards, Ghana’s illicit waste trade is booming (ISS Africa)
Volkswagen spends big to counter loadshedding as it becomes sole Polo supplier (Engineering News)
Volkswagen Group South Africa, now trading as Volkswagen Group Africa (VWA), is investing R55-million to generate 3 MW in additional solar energy for its assembly plant in Kariega, in the Eastern Cape, says MD Martina Biene. The panels will be installed on the car ports in the employee car park.
VWA production director Ulrich Schwabe says this means the local arm of the German vehicle maker will have 6.3 MWp in solar energy installed by the end of this year, in an investment totaling R89-million, across its facilities in Kariega, as well as in Centurion and Sandton, in Gauteng.
“Our expectation is that, in 2024, we would have installed more than 6 MW,” notes Schwabe. “This means that, at around lunch time, we can cover 50% of our electricity needs in production. And this is just a first step.” He notes that VWA has the ambition for the Kariega plant to become carbon neutral by 2030.
Kenya: African Development Bank Adopts New 5-yr Plan to boost growth and human development (AfDB)
The Board of Directors of the African Development Bank Group on 14th December 2023 approved a new five-year Country Strategy Paper (CSP) for Kenya. The 2024-2028 CSP focuses on boosting private sector-driven growth through infrastructure development, strategic reforms, and human capital development.
The Bank’s country office said these priority areas will complement each other and build on what has already been achieved with the Bank’s assistance while continuing to support Kenya’s vision of structural transformation and strengthening resilience.
Uganda: Trade Ministry urged to table Consumer Protection Bill (ZAWYA)
The Deputy Speaker, Thomas Tayebwa, has tasked the Minister of State for Trade Industry and Cooperatives (Industry), Hon. David Bahati, to honour his earlier pledge and table the Consumer Protection Bill. The Bill aims at setting standards for the quality, safety, and reliability of goods and also provides remedies in case of non-compliance with those standards as well as prohibiting unfair trade practices.
“Hon. Minister, remember we discussed the Consumer Protection Bill and you said it should be different from the Competition Bill - we need you to table the Bill,” Tayebwa said in his communication during the plenary sitting on Tuesday, 06 February 2024.
The magic of Mali’s digital pharmaceutical registry (UNCTAD)
Mali announced in November 2023 that it was working on the live rapid prototyping and testing of a new online pharmaceutical registry, developed in a joint project by UNCTAD, the country’s health ministry and the national pharmaceutical association.
It will improve the efficiency of the marketing authorization process, ensure the quality and safety of medicines, strengthen transparency and traceability, optimize resources, support the development of the pharmaceutical industry locally and fight against counterfeiting.
Through the online registry, Mali’s pharmaceutical importers, producers and distributors – and the government – will be able to remedy supply chain delays and tackle fraud and accessibility challenges more effectively.
Republic of Equatorial Guinea: 2023 Article IV Consultation (IMF)
Equatorial Guinea’s macroeconomic situation has deteriorated over the last decade due to a secular decline in oil production. In 2022, economic indicators improved somewhat. However, this recovery was short-lived, with the economy projected to fall back into recession in 2023. In the years ahead, the economy would contract further. Without strong policy responses, all the gains in per capita income achieved over the last two decades are expected to fully unravel by 2028. The three-year Extended Fund Facility (EFF) approved in 2019 to support the authorities’ diversification agenda expired at end-2022 without a single completed review. The authorities have nonetheless continued to implement reforms delayed under the program as well as the 2022 Article IV Consultation recommendations.
Video: US Mission in Nigeria is particular about the future of Africa trade - Julie Le Blanc (Businessday Nigeria)
Extensive changes to COMESA competition laws out for comment (Cliffe Dekker Hofmeyr)
Changes to the existing regulations governing the enforcement of competition law in the Common Market for Eastern and Southern Africa (COMESA) have been proposed and shared for comment by the COMESA Competition Commission (CCC). The proposed changes are extensive and were apparently prompted by challenges experienced by the CCC arising from the existing 2004 regulations. Comments on the draft revised regulations are due by 14 February 2024.
“No Central African country, despite the Congo Basin’s enormous natural resource endowments, has an economic and environmental accounting system. An integrated, participatory approach is needed to appropriate this tool and make it a lever for mobilizing project financing”, emphasized Dr. Nebiyeleul Gessese, during the sub-regional dialogue on the theme “natural capital accounting, greenhouse gas inventory, nature-based solutions, sustainable finance mobilisation: concepts, tools, methodologies, winning business models at your fingertips”, as a prelude to the ECA’s 56th session of the Conference of Ministers.
To enrich the calculation of gross domestic product (GDP) with the environmental dimension, Central African countries need to develop economic and environmental accounting systems. The aim of updating GDP is to broaden the fiscal space and improve the positioning of African countries in climate negotiations.
To achieve this, participants in the webinar recommended sub-regional cooperation to promote information sharing between countries, mastery of the concept and the technical and technological requirements associated with it. We will need to invest in the adaptation and harmonization of legal frameworks in order to link them to climate challenges, the design of measurement tools that will facilitate the qualification of statistically quantifiable assets, and capacity building through targeted training of stakeholders according to the role expected of each of them.
Trans-Kalahari Railway will boost regional trade and connectivity (Windhoek Observer)
In a decisive effort to bolster and advance regional trade and connectivity, Namibia and Botswana are moving closer to the realization of the Trans-Kalahari Railway project. This ambitious initiative aims to create a direct rail link between the Port of Walvis Bay and Botswana, extending further to the Southern African Development Community (SADC) region. The project was discussed during a recent Joint Ministerial Committee Meeting in Swakopmund.
By leveraging the strategic position of the Port of Walvis Bay, the project aims to offer a more efficient and cost-effective route for cargo destined for Botswana and beyond, thereby enhancing the economic integration of southern Africa. The Trans-Kalahari Railway is set to be implemented through a develop, operate, and transfer (DOT) model. This approach allows private investors to recoup their investments over time, making the project more attractive to potential financiers.
In Africa’s Free Trade Area, Investment In Pharmaceuticals Means Impact And Profit (Africa.com)
Countries across Africa, a continent which struggled to gain equal access to vaccines and that imports the majority of its packaged medicines from abroad, know all too well the importance of a strong domestic pharmaceutical industry and trade. Total demand for packaged medicines in Africa is worth around $18 billion annually, of which 61% is imported and 36% is locally produced and not traded. Just 3% of demand is met by intra-African trade. Now, under the newly active African Continental Free Trade Area (AfCFTA) agreement, Africa’s pharmaceutical and medicine trade is about to receive a significant boost — one fueled by intra-African trade, alleviating some of African states’ reliance on outside economies.
According to a new report by the World Economic Forum, AfCFTA: A New Era for Global Business and Investment in Africa, the pharmaceutical industry is likely to be among the prime beneficiaries of the introduction of frictionless trade in Africa. The industry’s high product complexity means there are tremendous opportunities to invest in local value chains for goods such as packaged and unpackaged medicines, vaccines, medical instruments and bandages — all of which have high local valued added potential — and the AfCFTA will open the possibility of meeting local demand locally as well as make it easier to overcome production barriers in a short time frame.
Mali, Burkina Faso and Niger want to leave Ecowas. A political scientist explains the fallout (The Conversation)
Mali, Burkina Faso and Niger have sent Ecowas, west Africa’s main political union of 15 countries, a formal notice of their withdrawal from the bloc. The three countries are governed by military rulers who have overthrown democratically elected leaders since 2021.
The three countries have given three main reasons. First is what they call the “illegal, illegitimate, inhumane and irresponsible sanctions” imposed on them for truncating their democracies. Second is the failure of Ecowas to assist them in their “existential fight against terrorism and insecurity”. The juntas have also argued that Ecowas has deviated from the founding principles of the organisation and is now controlled by foreign powers.
The main impact will be on trade and economic development. Ecowas is primarily an economic community and the loss of any member will affect trade and economic development. The three countries collectively account for 8% of the US$761 billion Ecowas gross domestic product (GDP). In 2022, the total trade volume from the Ecowas region totalled US$277.22 billion. The concern is that the exit of these countries could affect the flow of goods and services in the bloc.
Mali says it will not respect ECOWAS treaty’s withdrawal notice period (Reuters)
Mali said on Wednesday that it would not wait a year to leave the Economic Community of West African States (ECOWAS), as is required by the bloc’s treaty. Mali and its neighbours Niger and Burkina Faso, all run by military juntas, announced last month that they were immediately leaving ECOWAS, West Africa’s main political and economic bloc, reversing decades of regional integration.
In a statement posted online, Mali’s foreign ministry said that ECOWAS had violated its own texts by closing its borders to Mali when it imposed sanctions on the military regime. “Consequently, the Government of the Republic of Mali is no longer bound by the deadline constraints mentioned in Article 91 of the Revised Treaty,” the statement said.
Video: Africa’s free trade area under threat as ECOWAS shrinks (Businessday Nigeria)
First Africa Coffee Week Momentous Occasion for Elevating African Coffee to New Heights: IACO Chair (ENA)
The African Fine Coffees Conference (AFCA) and Exhibition and the First African Coffee Week is a crucial event to elevate African coffee to new heights, Inter-African Coffee Organization (IACO) Chairperson and Agriculture Minister Girma Amente said. The chairperson made that remark today at the opening of the 20th African Fine Coffees Conference and Exhibition and the First African Coffee Week 2024 at the Millennium Hall in Addis Ababa.
Stating that coffee has the power to transform lives, empower communities and drive economic growth, Girma added that it provides livelihoods for millions of small holder farmers and entrepreneurs across Ethiopia and in the continent. By investing in the sector, member countries can reduce poverty by generating meaningful employment and increase household incomes, he pointed out.
The Africa Coffee Week offers a great opportunity to provide the platform for effective dialogue on increasing coordination and collaboration between the governments and the private sectors of the African coffee producing countries and the global stakeholders representing coffee producing countries, the secretary general stated.
BRICS: Growing in strength and stature (Financial Express)
BRICS brings five of the world’s largest developing countries (Brazil, Russia, India, China and South Africa) together on one platform to review and assess ongoing global developments that could have an impact on 41 percent of the world population, 24 percent of global GDP and 16 percent of global trade.
Seen as emerging markets, the BRICS member states have sought to act as a counterbalance to traditional Western influence by establishing deeper ties between themselves and through cooperation on economic expansion, including trade.
2024 has started off with a bang with five more countries – Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates -joining this grouping as full members from January 1. Argentina was also approached to join, but hasn’t done so thus far. However, 34 other countries have expressed their desire in principle to join.
Last month, Russian President Vladimir Putin issued an agenda statement on assuming the BRICS chairmanship. He said Russia’s focus would be to ensure “positive and constructive cooperation” between all members.
E-commerce negotiators engage in first review of Chair’s text (WTO)
At the first round of e-commerce negotiations in 2024, held from 29 January to 2 February, the co-convenors of the talks — Australia, Japan and Singapore — welcomed participating members’ willingness to work in the coming months on the basis of the text circulated by the co-convenors in mid-January. The text reflects the co-convenors’ judgement on where consensus is most likely to be achieved for a future e-commerce agreement.
UNCTAD urges reforms on global debt architecture amid rising debt distress (UNCTAD)
In the wake of the COVID-19 pandemic, developing countries’ external sovereign debt – funds borrowed in foreign currency – increased by 15.7% to $11.4 trillion by the end of 2022. The mounting debt levels are further complicated by the diversity of lenders and financial instruments.
Equally alarming is the surge in debt servicing costs. Low-income and lower-middle-income countries – also referred to as frontier markets – that borrowed when interest rates were low and investors keen are now spending around 23% and 13% of their export revenues, respectively, to repay their external debt.
“To put this in perspective, after World War II, the share of export revenue going into debt servicing for Germany was capped at 5% to aid West Germany’s recovery,” says Anastasia Nesvetailova, head of UNCTAD’s macroeconomic and development policies branch.
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Energy shortage presents mining industry with opportunities, pivotal choices (Mining Weekly)
The energy challenges facing mining companies in South Africa have given rise to significant opportunities, strategic management consulting firm Boston Consulting Group partner Rudi van Blerk says. Already, many of these companies have seized these opportunities, capitalising on the unique advantages offered by the country’s current unstable economic and political landscape, he adds.
“The primary advantage lies in the simultaneous opportunity for the enhancement of access to reliable electricity, decarbonisation and increased affordability of energy. This integrated approach allows mining companies in South Africa to address these three elements collectively, a prospect not always feasible in other global regions where these aspects often conflict, necessitating trade-offs,” he tells Mining Weekly.
Initial signs that energy sector is stabilising; logistics to take longer (Engineering News)
The domestic mining industry is looking at 2024 as a year of stabilisation, rather than growth, says Minerals Council South Africa CEO Mzila Mthenjane. The industry continues to face persistent challenges such as loadshedding, an ailing logistics sector, and a declining commodity market. Mthenjane spoke at a Minerals Council media briefing, held on Monday morning ahead of the Investing in African Mining Indaba 2024 in Cape Town.
Council data, released on Monday, shows that the mining industry’s contribution to South Africa’s gross domestic product declined to 6.2% in 2023, down from 7.3% in 2022. Total primary sales dropped from R883.5-billion in 2022, to R786.2-billion last year. Overall, mining input costs in South Africa increased by 8.6% year-on-year in 2023 – well above inflation – softening from 13.8% in 2022.
Energy Council welcomes IRP extension, calls for strong reform message in SoNA (Engineering News)
Energy Council CEO James Mackay has welcomed the decision of the Department of Mineral Resources and Energy to extend the comment period for the draft Integrated Resource Plan (IRP) 2023 by a month and has also called on President Cyril Ramaphosa to use his State of the Nation Address (SoNA) to emphasise government’s commitment to “open and robust debate on national energy policy”.
Mineral Resources and Energy Minister Gwede Mantashe used his Mining Indaba address on February 6 to announce that the IRP comment period had been extended to March 23 from February 23 to “allow maximum participation in this process”. However, he refrained from initiating public hearings, which some commentators have called for given serious concerns over the assumptions and modelling used to produce the draft document.
“Our reality is that business confidence is near historic low levels resulting in continued reluctance to make the much-needed capital investment required to grow our economy and create jobs. “It is well accepted that the majority of future energy investment will come from the private sector, so building a national energy vision that has the buy-in of the public and private sector is critical.”
Angola’s diamond sparkle brightened by new De Beers deal (Engineering News)
Diamond mining and marketing company De Beers is to collaborate with Angola on opportunities to increase diamond production, support alluvial mining sector and enhance social development for the benefit of Angola’s citizens. De Beers on Tuesday signed a memorandum of understanding (MoU) with Angola’s National Mineral Resource Agency, Angola’s State-owned Endiama diamond company, and Angola’s State-owned Sodiam diamond trading company, to support these objectives.
“Angola continues to set an example as a country that has reformed its prospects through enhanced transparency, adoption of internationally recognised best practices and a business-friendly investment environment,” De Beers CEO Al Cook highlighted following the MoU signing at the Investing in African Mining Indaba under way in Cape Town. “This is a strategic partnership with the objective of increasing diamond production in Angola to contribute towards the socio-economic development of our country,” said Endiama CEO Ganga Junior.
Progress in the nation’s recovery and rebuilding documented in summary five-year review (SAnews)
The Presidency has released a five-year review publication that documents the strides made in South Africa’s recovery and reconstruction since 2019, delving into the transformative initiatives undertaken by the Sixth Administration, specifically targeting the pressing challenges confronting the nation.
‘Leave No One Behind 2024 – A Five-Year Review’, which was released on Tuesday, outlines in summary form the progress made in growing the economy and jobs; fighting corruption; tackling poverty; developing human capital; providing quality health care for all; fighting crime, violence and instability; making communities safer, and investing in infrastructure.
Kenya: Power demand could overtake generation by 2027 (Business Daily)
Electricity demand in Kenya could exceed the generation capacity by 2027 unless production increases to catch up with usage and avert power shortages that might lead to load shedding and rationing. The International Energy Agency (IEA) projects that the electricity demand growth rate will accelerate to an average of 5.7 percent between 2024 and 2026, meaning that Kenyans could consume more than 13,055 gigawatt-hours (GWh) by 2027. This will outpace the growth rate of electrical energy generation, set to slow down after Kenya changed its policy on buying electricity from independent power producers last year.
Kenya to acquire 300 SGR wagons by end of February (Business Daily)
Kenya has received fifty new standard gauge railway (SGR) wagons that are aimed at boosting the transport of cargo on the Chinese-built line. The wagons, procured for the Madaraka Express SGR freight service, were received on Monday by the Transport Cabinet Secretary Kipchumba Murkomen. A second batch of 250 wagons is expected to dock at the port of Mombasa later this month having been loaded at the Tianjin port in China towards the end of last month, said Mr Murkomen.
“Railway transport is a key enabler of the aspirations set out in our country’s long-term development blueprint, Vision 2030,” Mr Murkomen said. This is the first time new wagons have been added since the launch of SGR in May 2017.
Somalia joins Kenya, Rwanda in banning single-use plastics (Business Daily)
Somalia is the latest African country to ban single-use plastics, potentially boosting the growing campaign to limit the use of non-biodegradable packaging material in the war against global warming. A decree issued on Thursday by the Ministry of Environment and Climate Change indicated that the country will stop single-use plastics from June 30, 2024, providing a five-month grace period for importers and users to adjust.
“All businesspeople engaged in bag importation, manufacturers, retailers and commercial establishments within the country are hereby notified that as of June 30th, 2024, the importation and use of single-use bags shall be prohibited,” read a statement issued by the Ministry. Somalia said the grace period should also give firms involved in the production or importation of plastics time “to explore environmentally friendly alternatives to plastic bags” and that it will work with stakeholders to identify options.
Tanzania ranks second in EAC in latest graft survey (The Citizen)
Tanzania is ranked the second least corrupt country in the East African Community (EAC) region after Rwanda, according to the Corruption Perceptions Index (CPI). The 2023 edition of the CPI released by Transparency International (TI) recently ranks Tanzania as the second least corrupt country in the region with a score of 40 behind Rwanda, which scored 53. Tanzania has seen a slight improvement from 38 points in 2022 and is ranked position 87 out of the 180 countries and territories assessed.
The report puts Somalia and South Sudan at the bottom of the region, where they scored 11 and 13 respectively. However, Seychelles, Botswana, and Cape Verde continue to lead as shining examples of the least corrupt counties in Sub-Saharan Africa.
State increases cotton prices by 38pc to woo more farmers (Business Daily)
The government has announced a 38 percent price increase in the purchase of cotton as it moves to entice more farmers to return to the crop as part of a plan to double production to export to the US market. State Department of Industry Principal Secretary (PS) Juma Mukwana said last week the government had allocated Sh60 million to support local farmers to increase the acreage under production from 40,000 in 2023 to 103,000 ahead of long rains in the 24 cotton-growing counties. The PS said that the government has also acquired 60 metric tons from Togo for seed multiplication to address acute cotton seed shortages.
Namibia urged to push forward with Geingob’s green hydrogen dream (The Namibian)
Business mogul Sven Thieme says there is a need for the current administration, now led by president Nangolo Mbumba and other leaders, to drive former president Hage Geingob’s dream of creating a synthetic energy hub in Namibia. He says Geingob’s dream for a prosperous Namibia that benefits from its resources and is driven by locals is still achievable, bearing in mind the recent oil discoveries. Geingob, who died on Sunday at the age of 82, is the architect of the multibillion-dollar green hydrogen drive that has attracted several investors from Europe and other parts of the world.
Malawi’s Plan to Create a Stable and Sustainable Economy (IMF)
Stagnant growth, unsustainable debt, and the adverse effects of multiple shocks, including an outbreak of cholera and Cyclone Freddy last year, have compounded Malawi’s economic challenges. The IMF Executive Board recently approved a $175 million Extended Credit Facility (ECF) arrangement that aims to support the government’s commitment to economic reforms that are designed to jumpstart inclusive and sustainable growth.
Malawi has struggled to sustain growth and to reduce poverty and food insecurity for decades, despite large inflows of official development assistance. The past three years have been particularly difficult. Sizable external emergency financing—about $690 million in the past three years from the IMF and the World Bank alone—was extended.
The devaluation was a difficult policy decision and imposed short-term hardship on the population. For a long time, Malawi has been importing more than it exports by borrowing abroad. As borrowing became difficult, foreign exchange shortages emerged. The first step in easing this imbalance was to allow the exchange rate to be more in line with demand and supply. Going forward, it will be important to facilitate a market-clearing exchange rate on an ongoing basis. Sustainable levels of fiscal and current account deficits would help stabilize the exchange rate and prices.
Angola: Modernization of Income Taxation (IMF)
South Sudan: Strengthening Budget Execution (IMF)
UK reaffirms trade, investment, and economic commitments to Ghana (GOV.UK)
Minister for Development and Africa, Rt. Hon. Andrew Mitchell MP, said: “I am immensely proud of the UK-Ghana Business Council and what we have delivered together. Today we celebrate the success of a new partnership in the automotive sector, and a new Green Cities and Infrastructure programme, which will help mobilise climate finance and of course, exciting ambitions for our relationship on science, technology, and innovation.”
The Minister recognised the significance of the £5 million multi-country ODA funded bilateral technical partnership on animal health between the UK and countries in Africa, including Ghana. This was during a meeting with the Minister for Food and Agriculture, Dr Bryan Acheampong.
AfDB begins disbursement of $540 million Agro-Industrial Funds nationwide (Nairametrics)
African Development Bank (ADfB) has commenced the first phase of the disbursement of $540 million Agro-Industrial Funds for the development of Special Agro-Industrial Processing Zones (SAPZs) in the country. The Senior Special Adviser on Industrialization to the AfDB President, Prof. Banji Oyelaran-Oyeyinka disclosed this on Monday when a delegation of the bank and that of the United Nations Industrial Development Organization (UNIDO) presented their separate reports on the status of projects being executed in Nigeria to Vice President Kashim Shettima at the Presidential Villa. The fund Is part of the Nigerian government’s effort to ensure food security in the country.
Making AfDB’s presentation to the Vice President, Oyelaran-Oyeyinka said, “The Special Agro-Industrial Processing Zones (SAPZ) is an initiative of the African Development Bank that is aimed at turning the rural landscape into economic zones of prosperity and harnessing the power of commercial agriculture and food.”
Earlier, Nairametrics reported that the African Development Bank (AfDB), alongside the Islamic Development Bank (IDB) and the International Fund for Agricultural Development, said that they have voted $1 billion to further deliver special agro-industrial processing zones in 24 States of Nigeria. The $1 billion pledge is in addition to an initial $520 million voted by the development partners for the development of eight special agro-industrial processing zones in Nigeria.
Nigeria Renews Suspension Of Commercial Flights To Niger Republic Amid ECOWAS Sanctions (Sahara Reports)
The Nigerian government has renewed the ban of commercial flights from Niger Republic to Nigeria and from Nigeria to its northern bordering country in accordance with an Economic Community of West African States (ECOWAS) resolution. This was following an ECOWAS decision passed in response to the events in Niger Republic on July 26, 2023, when the democratically elected President, Mohamed Bazoum, was deposed in a coup and replaced by a military junta commanded by General Abdourrahamane Tchiani. The directive stated, “By ECOWAS resolutions, all commercial flights from Niger to Nigeria, or from Nigeria to Niger, or from Niger overflying Nigeria, or any state overflying Nigeria to Niger are suspended.”
CSOs Recommend Dialogue to Mitigate Disintegration of ECOWAS (Arise News)
A coalition of Civil Society Organisations, has recommended dialogue as a solution to curb the seeming disintegration of members of the Economic Community of West African States, and the restoration of democratic rule in Niger, Mali and Burkina Faso. They made this recommendation during a one-day media interactive session, on Monday in Lagos State, to discuss and proffer solutions to the disintegration currently going on among members of the ECOWAS.
“It is imperative for Niger, Mali and Burkina Faso, and indeed the rest of the member states of ECOWAS to have a deep reflection over the collective milestones of the regional integration collectively achieved, including peace missions to member states; free mobility of people, goods and services; trade enhancement through the removal of customs duties and tariffs on commodities; as well as collective infrastructural development efforts such as the West African power pool leading to the construction of Diama and Manatali dams in Senegal and Mali respectively.
“At a time when the region is advancing discussions of a single market to further boost trade and development, it is completely disheartening to see leaders shun the channel of diplomacy and dialogue and instead attempt to disintegrate the community.”
Explainer: Why Mali, Burkina and Niger are leaving Ecowas (The East African)
EALA assess policies on Genetically Modified Organisms among member States (New Vision)
The East African Legislative Assembly’s Committee on Agriculture, Tourism and Natural Resources has commenced a week-long mission for an assessment of policies and laws on Genetically Modified Organisms (GMOs) within the East Africa Community’s partner states. The exercise which kicked off on February 4, 2024, will end on 9. This ongoing assessment will cover the Republics of Uganda, Kenya, Burundi, Rwanda, South Sudan, and the United Republic of Tanzania. The Committee will consider undertaking a similar activity in DRC in the future.
The EAC Agriculture and Rural Development Policy (EAC ARDP) aims to attain food security through increased agricultural production, processing, storage, and marketing. This Policy recognizes the importance of eliminating hunger and ensuring sustainable food security within the region as a critical step to eradicating poverty and consequently a stimulus for rational agricultural development and realization of the aspirations of the Treaty establishing the EAC.
The main objective of these activities is therefore to assess the policies and laws of Partner States on Genetically Modified Organisms (GMO) and to make appropriate recommendations to the Council of Ministers on this matter.
Abebe Aemro Selassie Media Roundtable (IMF)
Q: How do you evaluate the growing competition between international players for influence in Africa and for African resources? Do you consider that there is a risk of fragmentation at the continental level, or is this competition somehow jeopardizing the integration effort? Because I think that you can see some results of that competition already.
Mr. Selassie: Thanks, I think, there often tends to be, outside of the region, a sense that Africa belongs to one side or another. When I speak with policymakers, they are much more pragmatic about things, what they are doing often is in the self-interest of their people, their country. Within the region, I think they see countries wanting to maintain as broad a set of trading and diplomatic relationships as possible, rather than wanting to be seen to be belonging in one camp or another. I hope that, in many cases, the region has gone beyond the kind of what used to happen in the 1980s, for example, where countries align themselves with one side or another or forced to, I should say. And I think now the region being an influential voice in international forum, I think there’s much more scope for countries to have a range of partners depending on, self-interest rather than beginning to view, belonging to one camp or another. It has indeed been the case that we have seen in some countries, changes, and alignments. But I think this is part of the course. But in the vast majority of countries, I see them maintaining a broad range of engagements with the international community.
‘Incognito’ fishing vessels deny Africa $11bn in annual revenues (The East African)
Illegal, unreported and unregulated fishing costs Africa up to $11.49 billion annually, with over 75 percent of the world’s industrial fishing vessels operating “incognito.” According to satellite images recorded in the past three years and published in the Nature Journal by researchers from Global Fishing Watch, the University of Wisconsin-Madison and Duke University, most vessels don’t broadcast their location and are not detected by monitoring systems. As a result, the world has no clear picture of who fishes what.
In a new study, researchers have used machine learning and satellite imagery to create a global map of large vessel traffic and offshore infrastructure. The survey articulates the challenges in managing natural resources in Africa such as protected marine areas, with many of the unmapped vessels said to engage in illegal fishing.
Rare earths prices seen rebounding in second half of 2024 (Mining Weekly)
Rare earth prices have likely bottomed out and are poised to rise later this year on demand from electric vehicles (EVs) and wind power and as dominant producer China is expected to pull back on expanding output quotas, analysts said. Rare earths are a group of 17 elements used in products from lasers and military equipment to magnets found in EVs and consumer electronics. Prices surged to their highest in a decade in 2022 only to plunge last year on increased production in China and slower-than-expected demand growth crippled by the country’s patchy post-pandemic economic recovery.
“We expect extra supply to be more or less cleared by end-2024, as demand catches up with supply through continually increasing electric vehicle sales and wind turbine production,” said analyst Willis Thomas at CRU Group.
Unlocking Africa’s Trade Potential: Harnessing the Power of AI (Techeconomy)
In recent years, the global community has witnessed significant advancements in artificial intelligence (AI) and its potential to revolutionize various industries. As the African continent endeavours to unleash its full economic potential, AI has emerged as a critical tool for empowering trade and fostering growth. By harnessing the power of AI, Africa can significantly enhance its trade capabilities, foster economic development, and propel itself to the forefront of global commerce. AI has the potential to revolutionize trade in Africa in various ways, unlocking its economic potential. Here are some examples and data to support this.
Promoting International Investment by Small and Medium-sized Enterprises (UNCTAD)
Small and medium-size enterprises (SMEs) are important contributors to economic development, representing a substantial portion of businesses globally. Global markets offer SMEs opportunities for growth, diversification and resilience. Access to international markets enables them to tap into new customer bases, gain exposure to diverse business practices and foster innovation through cross-cultural collaboration.
However, SMEs encounter significant challenges that hinder their investment overseas. SME investors, relative to large Multinational Enterprises (MNEs), face distinctive bottlenecks including financial and information constraints, difficulties in dealing with regulatory complexities and, importantly, an international investment environment in which facilitation and investment promotion institutions are often geared towards attracting large-scale investment projects. Foreign direct investment (FDI) by SMEs has been in decline in recent years: the number of outward greenfield investment projects in 2022 was only about a quarter of that in 2015.
Based on original empirical studies in different developing regions and selected developed economies, this report discusses how to reduce the common investment policy bias in home and host countries towards large MNEs, the role of SMEs in South–South and intraregional FDI, and ways and means to maximize the development impact of SME FDI. It introduces a new framework to assess the relevance and effectiveness of existing investment policies for the promotion of SME investment and presents policy options to facilitate overseas investment by SMEs and reduce the existing policy bias
Aid-for-Trade Global Review 2024 to look at mainstreaming trade into development strategies (WTO)
The biennial Global Review serves as a global platform to highlight areas where developing economies and least developed countries (LDCs) need support to overcome supply-side constraints limiting their participation in global trade. It helps galvanize support for tackling these issues so that these countries derive the maximum economic benefits from trade.
Zambia said that the development of standards to support industrial and trade growth and increase the participation of micro, small and medium-sized enterprises (MSMEs) in the economy are high on its agenda. Trade will play an essential role in supporting Zambia’s future graduation from LDC status as well as its efforts to mitigate the effects of climate change.
The Economic Community of West African States (ECOWAS) shared an overview of its “E-Commerce Strategy and Implementation Plan 2023-2027” launched in July 2023, under which measures related to e-commerce will be adopted at the regional level to create jobs and help diversify economies.
A Brazilian Approach at the G20: Building a Just World and a Sustainable Planet (Modern Diplomacy)
World’s Best Trade Finance Providers 2024 (Global Finance Magazine)
Driving in the FTA Lane: India is in talks with 50 nations, but how many pacts will it sign in 2024? (The Economic Times)
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Transnet says rail volumes recovered slightly in the last quarter of 2023 (Engineering News)
Transnet says it has witnessed signs of recovery on the North Corridor, which was able to improve RBCT export coal volume tonnages from below one-million tonnes weekly on average to 1.1-million tonnes by December 2023. Transnet is forecasting railing 49-million tonnes of export coal to RBCT against a declared capacity of 60-million tonnes for the financial year ending March 2024.
Capacity gaps slow competitiveness of South Africa’s ports (Africanews)
As container ships re-route their voyages away from the Red Sea, a windfall was anticipated for South Africa’s ports. Instead, capacity challenges mean there is not enough space for ships to dock, let alone refuel. South African container ports rank among the most inefficient according to the World Bank, owing to infrastructure gaps. Port operator Transnet saw its losses top $300 million in 2023, with port and rail failures estimated to be costing the economy up to $19 billion a year.
Energy community must scrutinise IRP 2023 (Engineering News)
The South African Wind Energy Association (SAWEA) is urging the energy community to critically analyse the revised draft Integrated Resource Plan 2023 (IRP 2023) to provide constructive inputs that will improve the country’s energy future. SAWEA says it appreciates the information sessions hosted by the Department of Mineral Resources and Energy (DMRE) to delve deeper into the plan and its underlying assumptions, which have provided much-needed context and additional information, ensuring a common understanding across various interpretations.
“South Africa needs to adopt a holistic approach to energy planning, integrating multiple technologies that make sense for the country’s energy needs. This requires the system operator to redefine business strategies to ensure an affordable, safe and reliable energy supply, not only for the present but for generations to come,” SAWEA CEO Niveshen Govender says.
Sugar price cap brews a storm in Tanzania (The East African)
Tanzanian sugar regulators are embroiled in a feud with producers as they seek to enforce price caps on the commodity, amid a nationwide shortage. Retail sugar prices have gone up twofold from an average of Tsh2,300 ($0.91) in November to between Tsh4,000 ($1.58) and Tsh6,000 ($2.37) per kilogramme, with fingers being pointed at factory owners, importers and traders for the artificial shortage.
Across the EAC, sugar prices average about $1.30 per kilo in Kenya, despite a government waiver on import duty from January last year; $1.35 in Uganda, $0.44 in Rwanda, $0.83 in Burundi, $1.92 in DR Congo, $2.36 in South Sudan and $3.14 in Somalia.
Kenya’s agricultural sector is underfunded, experts say (The Standard)
Kenya has lagged behind in achieving the Maputo Declaration to allocate at least 10 per cent of the national budget to agriculture. Agriculturists and lawmakers meeting in Mombasa on Friday said the country’s agricultural sector was underfunded, off track, and made no efforts to achieve the 2003 continental commitment.
The Parliamentary Committee on Agriculture and Livestock chairperson Dr John Mutunga said Kenya’s agriculture sector requires an annual budget of Sh360 billion to be sustainable and address food security. He said Kenya’s current annual budget of Sh60 billion to the sector was insufficient to ensure sustainable food and crop production. Mutunga spoke in Mombasa during a national parliamentary retreat in Mombasa hosted by AGRA that brought members of the Senate National Assembly Committees to deliberate on the Maputo and Malibu declaration.
Dr Mutungu, MP for Tigania West, said that Kenya’s agricultural sector needs a 10 per cent increase in funding to increase production of food commodities instead of importing. “Kenya has been off-track so far in the implementation of the Maputo declaration and has only been able to meet one of two targets every year. We have countries like Rwanda, Ethiopia, and Tanzania which have invested in agriculture, and their economies are growing by double digits,” said Dr Mutunga.
Kinshasa reviews mining deal with Chinese firms to seal loopholes (The East African)
The Congolese government says it has rectified a controversial mining deal it had signed with China, potentially upending what had looked like a source of bad relations between Kinshasa to Beijing. The new deal, officials said this week, is a result of open negotiations with Beijing. It came 16 years after the two sides signed what the Congolese authorities had called “the contract of the century.”
But since 2008, especially under the President Felix Tshisekedi administration, officials have often accused China’s of exploitation, arguing they mined critical metals from the DRC without being compelled to give back to local communities. On January 29, officials said the contract had been amended to provide specific obligations to Chinese mining firms, including improving local infrastructure for the Congolese.
Traders, truckers seek protection from attacks in South Sudan (The East African)
AfDB lends $40 mn to Mozambique for Maputo rail corridor (Africa Aviation News)
The African Development Bank (AfDB) approved a $40-million corporate loan to the state-owned enterprise Mozambique Rail and Port Authority (CFM), to enable CFM to finance the purchase of rolling stock (locomotives, wagons and tank containers) for its main corridor, the Ressano Garcia railway line, which generates more than 90% of rail traffic volume and comprises 70% of CFM’s overall rail transport volume. It will strengthen intra-African trade and regional integration by increasing capacity and the volume of goods transported from neighbouring countries by the most efficient route, with Mozambique serving its neighbouring countries of South Africa, Eswatini, Malawi, Zimbabwe, and Zambia, providing them with a port for exporting their products and importing goods.
Institutional Capacity Building Project for Private Sector Development, which was implemented in Angola between 2014 and 2023, delivered better-than-expected outcomes as shown in the recent Project Completion Report published in January 2024. The growth rate of Angola’s non-oil exports, a key project target, reached 5.9% in December 2022 and 4.9% in June 2023 against targets of 2.8% set in 2018 and 5% (revised) set in 2020.
Financed by a USD 24 million loan from the AfDB Group, the project was designed to assist private sector growth and diversification of the Angolan economy. Along with a rise in non-oil exports, the project also drove a remarkable surge of business start-ups in Angola, which rose from 2,700 in 2012 to 38,715 in 2022. During the same period, the number of cooperatives with access to services rose from 240 to 12,870. In addition, 23,776 farmers, including 3,148 women, worked in coffee production.
GRA pushes simplified tax regime for informal sector (The Business & Financial Times)
The Ghana Revenue Authority (GRA) is pushing a simplified tax regime for the informal sector. The objective is to streamline taxation for the sector, making it easier and more convenient for small businesses – especially those operating in rural and remote areas – to fulfil their tax obligation to the state, according to officials of the tax collection agency.
The matter came up at the Public Accounts Committee (PAC) hearing last week, when GRA appeared before the Committee to address infractions in the Auditor-General Report on the Public Accounts of MDAs for the year ended 31st December, 2022. Commissioner-Domestic Tax and Revenue Division, GRA, Edward Apenteng Gyamerah, told the Committee that the authority had difficulties in collecting tax and recovering tax debts in some instances.
“I think it is one of the reasons we are considering simplification of our tax laws, so as to deal with issues of these nature in the informal sector. Currently, as a country we have only one law dealing with all sectors – and it is an issue we are seeking to address. We need the support of us all to come up with simplified tax laws to deal with the informal sector,” Mr. Gyamerah told the Committee.
Ghana wants to make importing food like rice and tomatoes more costly: expert explains why it’s a bad idea (The Conversation)
Ghana, like many other developing nations, relies heavily on imports of food and consumer goods to feed its population. For instance, Ghana imports 55% of the rice that is consumed locally. The country’s import dependence is primarily a consequence of the production of low-value primary products without substantial value addition.
To forestall over-dependence on foreign goods, the government has proposed a trade restrictive policy via a legislative instrument on 22 major items. It has justified the policy on the grounds that it wants to reduce Ghana’s dependence on foreign goods by making locally produced goods more attractive from a price perspective. In turn, the idea is that this will drive up domestic production.
The list of items includes essential food products such as rice, offal, poultry, cooking oil, fruit juices, noodles and pasta, fish, sugar and canned tomatoes. All are commonly consumed in most Ghanaian households. But imposing constraints on these food items has the potential to escalate food prices, as set out in my recent paper, prompting concerns about potential threats to food security. Restricting imports without ensuring high-quality and competitive domestic products will not lead to consumer preference for locally made goods. What Ghana’s industries need are fewer production constraints and more incentives to compete domestically.
Nigeria’s latest devaluation may be ‘turning point’ in currency reform drive (ZAWYA)
Nigeria’s second currency devaluation in less than a year and new forex rules suggest the central bank is gearing up to let the naira float freely, but a huge backlog of orders for dollars and low liquidity may stall reform momentum, investors and analysts said. Foreign investors in particular will need more convincing that Africa’s biggest economy is finally ditching the controls that have for long distorted its currency market, making the country of 200 million people less attractive to foreign capital.
Nigeria is struggling with a record amount of government debt, high unemployment and power shortages that have contributed to years of anaemic economic growth. Oil output is shrinking, and rampant insecurity means swathes of the countryside are outside government control.
In his first days in office last year, President Bola Tinubu scrapped a costly fuel subsidy and lifted some forex controls. But the reform drive appeared to lose steam as the naira continued to weaken without central bank intervention.
Nigeria and Angola to strengthen trade ties (Voice of Nigeria)
As Africa continues to seek ways to boost intra-Africa trade, the need to address trade barriers and streamline visa processes has been emphasised to foster smoother trade ties between Nigeria and Angola. The President, Angola-Nigeria Business Council, Mrs Fifi Ejindu, stressed this at the Angola-Nigeria Diplomatic-Business Investment meeting in Lagos, South West Nigeria.
Mrs. Ejindu, emphasised that more active and creative economic and commercial relations between the two countries, reinforces the potential for progress for mutual benefits. Ejindu said that “the engagement of Nigerian investors and the anticipated business activations in Angola indicated growing interest and participation in the trade initiatives discussed.”
Can Romania-Tanzania alliance grow Dar’s trade in Europe? (The Exchange Africa)
A fresh alliance, Romania-Tanzania, is taking shape, with the European country betting on the East African nation to grow its presence and influence on the continent significantly as it forges “strategic approaches to Africa.” President Klaus Iohannis made the assertion during his recent visit to Tanzania. In a four-day state tour, he engaged with the government and investors in Tanzania’s mainland and the island of Zanzibar. During his visit, at least two Romania-Tanzania agreements were signed by President Iohannis and his counterpart, Dr. Samia Suluhu Hassan.
The European country has recently adopted a “National Strategy for Africa” policy, and this maiden visit by President Iohannis seeks to “intensify political and diplomatic dialogue and open up new prospects for cooperation,” he told the media.
Indaba to place spotlight on local mining industry (SAnews)
The 2024 Investing in African Mining Indaba will place the spotlight on the significant potential of the mining sector in fostering economic expansion and employment opportunities, said President Cyril Ramaphosa. “This week’s Mining Indaba in Cape Town will showcase the enormous potential of the mining industry to drive economic growth and job creation. The actions underway to improve the logistics system will help us to unlock this potential, given that mining companies depend on the rail network and ports to compete in global markets.
“From the work already underway, we have shown that it is possible to overcome the barriers to growth by working together in partnership. We are building momentum and have begun to see the results,” the President said in his weekly newsletter on Monday. He emphasised that “as more and more of our products leave the country’s shores, whether to the African continent or other parts of the world,” more companies will thrive, more investment will be made and more jobs will be created.
World Bank Urges Action for Gender Equality in Artisanal and Small-Scale Mining (World Bank)
Women account for about one-third of the artisanal and small-scale mining workforce, which supplies minerals essential to modern technologies and the global energy transition.
Launched today at the annual Mining Indaba Conference, the 2023 State of the Artisanal and Small-Scale Mining Sector report, a collaboration with the international development organization Pact, details gender inequalities in artisanal and small-scale mining (ASM) and highlights actions to improve gender equality and advance women’s participation. It reviews mining laws in 21 countries across Sub-Saharan Africa, East Asia and the Pacific, and Latin America, and draws on primary data from 1,900 participants, contributing unique insights about the deep-seated barriers women face in fully participating in ASM activities and opportunities toward gender equality.
The report advocates for gender-responsive legislation to safeguard women’s rights in mining and build a more sustainable sector. This includes improving mining codes—which often lack provisions to enhance women’s participation—and changing discriminatory property laws and land tenure agreements that hinder women’s ability to own land and access mineral resources for artisanal and small-scale mining.
Fixing logistics architecture key to successful AfCFTA: Ramaphosa (SABC News)
President Cyril Ramaphosa says in order for local companies to take full advantage of the African Continental Free Trade Area (AfCFTA) by exporting goods to the rest of the continent, more focus should be put on fixing the logistic architecture of South Africa. The President encouraged more South African companies to take advantage of the African Continental Free Trade Area and participate in exporting goods into the whole African continent.
Importation of finished goods into Africa slows down AfCFTA takeoff (The East African)
African countries will only benefit from the African Continental Free Trade Area (AfCFTA) if the continent invests in value addition. South Africa’s President Cyril Ramaphosa wondered why Africa is still exporting raw products and importing finished goods that can be produced on the continent.
“Recently, I saw a neighbouring country that had imported bottled water from Switzerland. I said, there is still a long way to go to show that we really trade with ourselves,” President Ramaphosa said on January 31 while launching the AfCFTA Guided Trade Initiative (GTI) in Durban. “A continent that is so endowed with various sources of water, but we still rely on water that we import from elsewhere!” He said the task ahead for the African countries to benefit from Continental Free Trade Area (AfCFTA) is to export value-added products.
“This is the task that we have; the reason for this is clear. We are principal exporters of many other things that we should not be exporting. We export raw materials, and I often say we export dust, rocks and soil. And we sell this to the world and instead of harnessing our oil and minerals for industrialisation,” he said. “We should be saying that we will not be buying all these raw materials from you. You should now be insisting that the raw materials be turned into finished goods so that we buy finished goods from you.”
Tanzania’s Trade Minister Ashatu Kijaji called on countries to co-operate in completing key protocols and other important issues related to dispute resolution when doing business in Africa, when she chaired the two-day 13th meeting of AfCFTA Trade ministers held in Durban.
Measures to kick-start seamless trading under AfCFTA imminent (The Business & Financial Times)
Continental trade agreement to restore historic trade routes (IOL)
PwC outlines six ways to boost intra-Africa trade (Businessday Nigeria)
Olusegun Zacchaeus, partner, PwC Strategy and Practice, West Africa, has highlighted six key ways to transform intra-Africa trade. They are improving the continent’s infrastructure, which requires $130-170 billion annually, strengthening institutional frameworks, investing in upskilling and education at a large scale, promoting well-functioning markets and regional integration, rebuilding fiscal buffers and addressing non-tariff barriers. This was revealed at BusinessDay’s Africa Trade Summit and Investment Summit themed “Reimagining Economic Growth in Africa” on Thursday.
During his presentation, he said one critical factor to both enhance and get the benefit of trade in the continent, is enhancing the quality of infrastructure, especially transportation infrastructure, which requires $130-170 billion annually. “A very key imperative to transforming intra-Africa trade is enhancing the quality of infrastructure, especially transportation infrastructure. This will require $130-170 billion annually,” he said.
He identified other critical factors including strengthening institutional frameworks, investing in upskilling and education at a large scale, promoting well-functioning markets and regional integration, rebuilding fiscal buffers, and addressing non-tariff barriers. “Trade is a pathway to prosperity for Africa, but in the last 10 years, Africa has grown at an average of less than three percent.”
Julie LeBlanc’s Keynote Address at the Business Day Africa Trade and Investment Summit (U.S. Embassy and Consulate in Nigeria)
In 2023, the United States supported and finalized 547 new deals, amounting to an estimated $14.2 billion in two-way trade and investment with African countries. This marked a remarkable 60% increase in both the number and value of deals compared to 2022. These investments have led to tangible benefits for both American and African communities, creating inclusive growth, supply chain resilience, and quality jobs.
Beyond AGOA, the U.S. has initiated several programs to enhance trade and investment with African countries, such as the Strategic Trade and Investment Partnership with Kenya and the $15.7 billion in new investments announced at the U.S.-Africa Business Forum.
East Africa braces for further rise in food, fuel prices over Red Sea crisis (The East African)
East African countries are staring at a fresh rise in food and fuel prices due to the escalating conflict in the Middle East, which continues to disrupt the flow of goods through the Red Sea.
The on-going war between Israel and the Hamas-led Palestinian militant groups in Gaza have intensified insecurity in the Red sea, a seawater inlet of the Indian Ocean lying between Africa and Asia. This is forcing ships to seek alternative but longer and expensive routes away from the Suez Canal, a 193.30-kilometre water canal in Egypt that connects the Mediterranean to the Red Sea.
Last year, the Suez Canal Authority announced that it would raise the transit fees for ships passing the canal by five percent to 15 percent from January 15, 2024. According to the regional business lobby East African Business Council (EABC), the economic impact of the Middle East conflict to the region is going to be “substantial.”
South Sudan to issue East African Community e-passports (Radio Tamazuj)
South Sudan’s Inspector General of Police, General Atem Marol Biar, has directed Maj. Gen. Simon Majur Pabek, the newly appointed Director General for the Directorate of Nationality, Civil Registry, Passport, and Immigration, to initiate the printing of East African Community (EAC) e-passports within the country. Speaking at the reception ceremony for the Immigration chief on Thursday, IGP Gen. Marol stated that the passport samples are ready, urging the directorate to commence the issuance of the EAC digital passport.
“We have partnered with a company to print the East African passport, but it faced sabotage by some individuals. Now is the time to begin printing the passports. Our President is the chairman of the East African Community, and this should be our priority. The samples are available, and they need to be printed. You will receive instructions from the Minister of Interior in line with the President’s directive to commence printing the East African passport,” Marol emphasized.
A Boost To East Africa’s Grain Trade As Pioneering Aflatoxin Decontamination Plants Are Unveiled (Africa.com)
EAC upbeat on local production of antibiotics (The Citizen)
COMESA and IOC Renew Cooperation (COMESA)
World Bank, ECOWAS fund 2m broiler production; initiative to create 300,000 jobs (The Business & Financial Times)
The World Bank and ECOWAS will this year fund the production of two million broilers to reduce Ghana’s poultry imports – which are in excess of US$600million per annum. The programme is being implemented by the West Africa Food System Resilience Programme (FSRP), aimed to increase local poultry production while striving for self-sufficiency in the sector. The project implementer, FSRP, indicates it is currently finalising the review of submissions received under the auspices of ECOWAS, and successful poultry farmers will soon receive support to enhance production.
Approximately three hundred thousand Ghanaians are expected to directly benefit from the project, with over one million estimated as indirect beneficiaries of the US$150million ECOWAS project. The five-year project addresses common natural phenomena affecting food production in the sub-region, aiming to strengthen food system risk management in collaboration with ECOWAS and the Ministry of Food and Agriculture (MOFA). Ghana currently controls 15 percent of national poultry needs, with locals providing slightly in excess of 50,000 tonnes annually.
Burkina Faso, Niger, Mali to decide fate of Ghanaian traders following ECOWAS ‘exit’ (MyJoyOnline)
There’s a looming diplomatic row as Burkina Faso’s Military leader Ibrahim Traoré has disclosed that his country will consult Mali and Niger to take a final decision on whether to allow Ghanaian traders and other West African nationals to do business in their countries. He said a final determination would be made on the matter as consultation would first have to be made by leaders of Niger Mali and Burkina Faso.
The three nations officially announced last week that they were departing from the sub-regional ECOWAS trading bloc. This raised fears from the Ghana Union of Traders (GUTA) which said its members import vegetables and other livestock from Mali Burkina Faso and Niger would be affected. “This thing is going to affect us more than the other member states. We should bypass the ECOWAS to find an immediate solution,” Dr Joseph Obeng, President of the Union told Joy News.
He added “the cross border trading activities that goes on is going to be impacted negatively. Look at the cola nut that we ship to Niger, the onions that we bring from there and the tomatoes that we bring in. “Also consider the bulk of things that the Burkinabes come to buy from us [in Ghana] so definitely it’s going to have a negative impact”.
ECOWAS to lose almost 69 million euros annually due to withdrawal of three countries (Azernews.Az)
The Economic Community of West African Countries (ECOWAS) will lose over about 45 billion West African CFA francs (more than 68.6 million euros) each year due to the withdrawal of Burkina Faso, Mali and Niger from the union, Azernews reports, citing the Minister of Economy and Finance of Burkina Faso, Abubakar Nakanabo. “ECOWAS will also suffer because the transition from 15 to 12 countries [within the association] will inevitably lead to a loss of income,” the minister said in an interview with the AIB news agency.
Investment Policy Review of the West African Economic and Monetary Union (UNCTAD)
Dr Christian Sewordor Mensah: Assessing the African Union’s Achievement of Food Security Objectives (MyJoyOnline)
Food security has been an enduring challenge for many African countries due to a variety of factors such as climate change, limited access to modern agricultural technologies, inadequate infrastructure, and political instability. Recognizing the urgency of addressing this issue, the African Union (AU) has established food security objectives to promote sustainable, resilient, and inclusive agricultural systems. This essay aims to assess the progress made by the AU in achieving its food security objectives, examining the interventions implemented, successes achieved, and areas where further improvement is required.
Laying foundation for digital revolution in Africa’s food systems (Africa Renewal)
According to the 2023 Africa Agriculture Status Report, “Empowering Africa’s Food Systems for the Future,” digital technologies will be key in addressing the three persistent problems in Africa’s agricultural industry — inefficiency, exclusivity, and unsustainability. The report is by AGRA (Alliance for Green Revolution in Africa – an Africa-led organisation that seeks to catalyze agriculture transformation on the continent through innovation.
There is already evidence that Africa’s agriculture is on the way to becoming more efficient, inclusive and sustainable, the report observes. But, in spite of the technological gains, food insecurity is worsening in Africa as chronic undernourishment increases and numerous countries face acute food shortage triggered by a combination of factors, including the Ukraine crisis and climate change. The report itself aptly captures this situation. In 2022, for instance, the prevalence of under-nutrition in Africa was 19.7 per cent, a slight increase from 2021, the report shows.
Onafriq’s vision for a borderless financial world takes root (The Business & Financial Times)
In the ever-evolving landscape of financial technology, Onafriq is at the forefront, championing the vision of a borderless world for financial transactions. This ambitious goal aims to simplify cross-border payments, making them as effortless as local calls. In the heart of this revolution is Ghana, where Onafriq is implementing its mission to eliminate barriers to cross-border transactions.
Working hand in hand with partners, Onafriq is providing a comprehensive platform for clients with business interests spanning not only within Ghana, but also in East Africa. “Our goal is to break down the barriers that have traditionally limited cross-border transactions, allowing businesses and individuals to transact seamlessly across different geographical locations,” says Ike S. Anison, the Country Director of Onafriq, in an exclusive interview with the B&FT.
Claver Gatete, Executive Secretary of the Economic Commission for Africa (ECA) has called for a shift in perspective and a more “intentional and targeted use of foreign direct investments and official development assistance, if Africa’s partnership with Europe is to deliver on the promises of shared prosperity.”
Speaking at the 5th European Corporate Council on Africa and the Middle East (ECAM Council) Summit on the margins of the Italy-Africa Conference in Rome, Italy, Mr. Gatete said this shift should include de-risking investments in key sectors that can unlock the full potential of public private partnerships. The Summit was held on the theme: “Creating a better present to build a greater future for Africa: the role of healthcare and investments.”
“Up to 80 per cent of the initiated infrastructure projects across Africa fail at the feasibility and planning stages. African countries are also faced with unfair risk perceptions that deter investors. We need to reverse this trend,” he noted, adding that to address the current severe fiscal pressures that countries are confronted with, new and innovative financing sources that target investments better to get the most of each dollar or Euro invested are necessary.
A 2023 Report by UNCTAD shows that between 2011 and 2022, combined public-private partnerships resulted in lowering interest rates spread by up to 40 per cent in renewable energy projects in developing countries. However, Africa still only attracts 2 per cent of global renewable energy investments today because the business environment remains unfavorable. “De-risking investments in Africa will make the region a globally competitive investment destination with mutual benefits to Europe, Africa, and the rest of the world,” said Mr Gatete.
Africa carriers beat Americas, European peers in traffic growth (The East African)
African carriers’ traffic grew 38.7 percent in 2023, compared with the year before, ahead of Latin and North American and European airlines. According to the International Air Transport Association (Iata) data, the year was marked by a strong industry-wide recovery, with a rebound of domestic and international travel.
“Despite political and economic challenges, 2023 saw air cargo markets regain ground lost in 2022 after the extraordinary Covid peak in 2021. Although full-year demand was shy of pre-Covid levels by 3.6 percent, the significant strengthening in the past quarter is a sign that markets are stabilising towards more normal demand patterns,” said Mr Willie Walsh, Iata director-general. “That puts the industry on a very solid ground for success in 2024. But, with continued —and in some cases intensifying — instability in geopolitics and economic forces, little should be taken for granted in the months ahead.”
It’s time for African countries to shape the WTO, not just sit in it (African Business)
At the 50th anniversary celebration of the origins of the international trade system in 1998 in Geneva, Nelson Mandela in his speech said: “The developing countries must accept that we want to be fully part of the WTO, and that includes improving the management of the world trading system to ensagrure that our economies do develop.”
Currently, 44 African countries are members of the WTO, with nine further countries holding “observer status”; only two are not affiliated with the WTO at all. African countries currently account for 27% of full members. Notably, the vast majority of these countries joined the WTO before China, which became a member in 2001.
Despite this, not much has changed for Africa within the world trading system over the past 30 years. If anything, it has worsened. In 2023, the African continent accounted for 2.7% of world exports. Back in 1973, that share was 4.8%. Meanwhile, the continent’s share of world imports is higher than exports today at 2.9%, but in 1973 it was lower at 3.9%.
I will revive free-trade agreement among Commonwealth countries - Foreign Affairs Minister (Ghana News Agency)
Madam Shirley Ayorkor Botchwey, the Minister of Foreign Affairs and Regional Integration, has pledged to revive the Free-trade Agreement among Commonwealth countries if elected as the Secretary-General of the Commonwealth Secretariat. She said a successful free-trade agreement among member states would enhance integration and participation in global and regional supply chains and boost their participation in the multilateral trading system.
The initiative could also be a model for the World Trade Organisation (WTO) members for a synergic mix of regional and multilateral trade integration as the Organisation struggled to conclude agreements to ensure its revitalisation. Madam Botchwey said this in Accra at a lecture on the topic: “A Vision for a New Commonwealth in a Fast-Evolving World.”
African Union’s entry into G-20 led to debate on UN reforms, says Indian minister Jaishankar (The Straits Times)
India’s presidency of the G-20 grouping provided an opportunity for the developing world to unite at a global forum, said Indian External Affairs Minister S. Jaishankar. He noted that a key achievement at the Group of 20 leaders’ summit in New Delhi in 2023 was the admission of the African Union as a permanent member of the group, which focuses on global economic and finance governance.
Dr Jaishankar made the comments at the launch of a book, India And The Future Of G20: Shaping Policies For A Better World, by the Institute of South Asian Studies (Isas) at the National University of Singapore (NUS). “We are in a singular position of four developing countries having back-to-back presidency of the G-20. We hope to make the most of this,” said Dr Jaishankar at the book launch in New Delhi on Feb 2.
BRICS Driving Emerging New Global Architecture (Modern Diplomacy)
Chair introduces draft text for agriculture negotiations in run-up to MC13 (WTO)
At a meeting of the agriculture negotiating body on 30 January open to all delegations, the Chair, Ambassador Alparslan Acarsoy of Türkiye, introduced a draft negotiating text for members’ consideration. Trade officials present welcomed the draft, which they said could serve as a useful basis for the negotiations among WTO members ahead of the 13th Ministerial Conference (MC13), from 26 to 29 February.
In the area of improvements to market access, the text again suggests that members agree on “modalities” by MC14, with a view to maintaining balance across different negotiating topics. The Chair recalled the mandate to negotiate a “special safeguard mechanism” and noted that members continue to differ on whether progress in this area should be linked to improvements in market access for agricultural goods.
Energy transition: Charting a fair course for fishing fleets (UNCTAD)
Global fishing fleets, powered mainly by fossil fuels such as marine diesel, emit between 0.1% to 0.5% of global carbon emissions, or up to 159 million tons annually, according to the latest available data.
The fisheries sector, crucial for the livelihoods of more than 40 million people worldwide, faces escalating threats from climate change. These include rising sea levels and warming waters that jeopardize fishing ports and deplete fish stocks. The risks are particularly high for developing countries, where small-scale and artisanal fishing prevails. Yet the fishing industry lacks comprehensive global targets and guidelines for transitioning to cleaner energy, a new UNCTAD report highlights.
The report covers a range of motorized fishing operations, from pre-harvesting to landing, and the infrastructure involved. It assesses the opportunities and challenges of adopting alternative fuels, emphasizing the need to ensure a “just” energy transition that doesn’t disproportionately affect vulnerable countries or fishing communities.
“The energy transition of fishing fleets presents a critical and urgent global issue as nations, and particularly developing countries, commit to net-zero targets and climate action,” says David Vivas Eugui, chief of UNCTAD’s ocean and circular economy section.
Growth continuing at a modest pace through 2025, inflation declining to central bank targets (OECD)
Global growth is holding up, while the pace of growth remains uneven across countries and regions, and inflation is still above targets, according to the OECD’s latest Interim Economic Outlook. The Outlook projects global GDP growth of 2.9% in 2024 and a slight improvement to 3.0% in 2025, broadly in line with the previous OECD projections from November 2023. Asia is expected to continue to account for the bulk of global growth in 2024-25, as it did in 2023.
“The global economy has shown real resilience amid the high inflation of the past two years and the necessary monetary policy tightening. Growth has held up, and we expect inflation to be back to central bank targets by the end of 2025 in most G20 economies,” OECD Secretary-General Mathias Cormann said.
Unlocking new crisis response tools to build a more resilient future (World Bank Blog)
FAO Food Price Index down again in January led by lower wheat and maize prices (FAO)
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DMRE to remodel draft IRP 2023 in light of new information, curtailment plans (Engineering News)
Many of the submissions the Department of Mineral Resources and Energy (DMRE) has received from the first round of public engagements about the draft Integrated Resource Plan 2023 (IRP 2023) in January have revealed new sources of data to consider in the plan’s modelling, DMRE energy planning specialist Sonwabo Damba said on January 31.
He added that the modelling for the draft IRP 2023 did not take into account the implications of the 10% curtailment on the availability of grid connectivity in the Eastern Cape, the Northern Cape and the Western Cape.
Damba provided insight into where the department sources its data, and some of the assumptions that inform the modelling of the data. Importantly, the department considers unserved energy as a significant cost factor because peaking stations will have to run longer to make up for unmet demand, which is why its modelling had indicated that an energy system dominated by solar, wind and battery energy storage would be the highest cost system for the country to build, he said.
However, University of Cape Town senior scholar and National Planning Commission energy expert Professor Anton Eberhard pointed out that, when gas is included with a renewables- and battery-dominated energy mix, the outcome is a least-cost scenario. This scenario was used as the reference case by the department in the draft IRP modelling.
Itac creates temporary rebate provision for several products (Engineering News)
The International Trade Administration Commission of South Africa (Itac) has created a temporary rebate provision for the importation of certain cold-rolled steel and painted steel; a rebate facility for the importation of certain flat-rolled products of iron or non-alloy steel; and a temporary rebate facility for the importation of sheet piling of iron or steel. The commission has published details of these rebate facilities in three statements issued on February 1.
The commission found that the subject products are not manufactured locally. As such, the applicable customs duty has an unnecessary cost-raising effect on the domestic industry. Moreover, duty relief, through the creation of a rebate provision, should allow the applicant, together with the downstream manufacturing industry, to maintain, and potentially increase, profitability in both the medium and long term. Also, rebate provision will be made subject to an Itac permit issued in terms of applicable guidelines, rules and conditions.
There is no substitute for economic growth, Deloitte says ahead of 2024 budget (Engineering News)
A tight balance is expected for this year’s National Budget as South Africa’s woes continue; however, any significant, or fundamental, raising of taxes is not expected, but rather a tightening hold on revenue collections to bridge the budget gap.
South Africa’s 2024 budget is set in an environment that has an election year, companies in a “zombie zone” and treading water, a sluggish economy, a financially pressured tax base, increasing government dependents through social grants and global economic headwinds exposure, the latter of which requires a structural overhaul of the economy so as to not be as sensitive to external shocks.
While many factors will guide how the Budget will play out, infrastructure failures and no room to squeeze consumers leaves Finance Minister Enoch Godongwana in a tough position requiring careful balance. This emerged during a Deloitte pre-Budget roundtable on Wednesday, where a panel discussed their views on South Africa’s economy and what to expect from the upcoming Budget speech on February 21.
In his 2023 Medium-Term Budget Policy Statement (MTBPS), tabled in November 2023, Godongwana pointed to “significantly weaker” public finances, and owing to the increased fiscal consolidation that is required, National Treasury had said that tax measures will be proposed to raise additional revenue of R15-billion for 2024/25 in the 2024 Budget. Revenue collections were projected to be R56.8-billion below 2023 Budget estimates.
SA to advance the African agenda with focus on AfCFTA (SAnews)
South Africa places great importance on the African Union (AU) Summits, as the country forges ahead with its foreign policy of the advancement of the African agenda. This is according to International Relations and Cooperation Minister, Dr Naledi Pandor, who was briefing the media on Wednesday on developments in her department.
The summit, which will take place on 17 and 18 February in Addis Ababa in Ethiopia, will focus on education. Last year, the AU finalised a 10-year review of Agenda 2063.
A key recommendation, Pandor explained, is that the AU Member States must accelerate the implementation of the Agenda 2063 flagship projects that are aimed specifically at fast-tracking continental integration. The project particularly focuses on trade and market integration, free movement of people and infrastructure development. However, top of the agenda is the operationalisation of the African Continental Free Trade Agreement (AfCFTA), in which South Africa is playing a leading role.
She also announced that Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates have confirmed they are joining the BRICS (Brazil, Russia, India, China and South Africa) bloc after being invited to last year. “However, you’d be aware that Argentina has written to indicate that they will not act on this successful application by the previous administration to become full members of BRICS. And we accept their decision, particularly given that 30 countries have now written to Russia, expressing interest in becoming members.”
Key to AfCFTA’s success is improving SA ports, say officials (IOL)
South Africa’s government has admitted that improving the efficiency of the struggling national ports will be key to the success of the African Continental Free Trade Area (AfCFTA) agreement as the country has commenced preferential trade under. This comes as South Africa’s economy is being stifled by logistical bottlenecks as Transnet is struggling with weeks of backlogs caused by inadequate equipment at the ports and railway lines.
Since its inception in October 2022, the GTI has been instrumental in facilitating trade in “Made-in-Africa” goods among State Parties across various regional economic communities on the continent. Under the AfCFTA, South African-made vehicles could find new markets across Africa, benefiting from reduced tariffs and simplified trade regulations.
Freight forwarders note some progress in tackling logistics crisis, but call for intensification of collaborative efforts (Engineering News)
The CEO of the South African Association of Freight Forwarders (SAAFF) believes progress is being made in navigating the ‘perfect storm’ of South Africa’s current logistics crisis, which is strangling trade and investment. However, Dr Juanita Maree argues that there is still a pressing need to intensify the initiatives being pursued under the National Logistics Crisis Committee (NLCC), which was established in 2023 to arrest the precipitous decline in Transnet’s performance and to introduce reforms to enable greater private sector participation in the rail and ports systems.
Despite the strides made under the NLCC, SAAFF notes that the contribution of imports and exports to gross domestic product fell 8.7% year-on-year to 56.22% notwithstanding robust commodity markets. “The drop obliterated robust trade growth posted in 2022 – a recovery year after the impacts of the Covid-19 catastrophe,” she said. “[At] the worst of times recently, the inefficiencies in rail cost us R1-billion a day, while the inefficiencies at the ports amount to a loss of R200-million a day.”
Kenya and South Africa strengthen trade ties under AfCFTA framework (Capital News)
Kenya and South Africa on Thursday intensified their efforts to strengthen the African Continental Free Trade Agreement (AfCFTA) framework. The two nations that share cordial bilateral relations, marked a significant moment by initiating the first shipment of products under the AfCFTA framework across the African continent. South Africa led the way by sending a shipment containing refrigerators, paperboard, and steel products destined for the Kenyan market.
The launch occurred on the sidelines of the 13th AfCFTA Council of Ministers Meeting in Durban, with the President of the Republic of South Africa, Cyril Ramaphosa, presiding over the ceremony. Rebecca Miano, the Trade Cabinet Secretary in attendance, commended the initiative, highlighting the tremendous opportunity it presents for enhanced trade between the two nations.
Cabinet Secretary Miano emphasized that the consignment from South Africa serves as a genuine testament to the nation’s readiness for strengthened trade ties. Despite the relatively modest total trade figures of R9.7 billion between Kenya and South Africa in 2022, with South Africa holding a trade surplus, the implementation of the AfCFTA opens up avenues for substantial growth.
Kenya imports fridges from South Africa under AfCFTA (The East African)
Kenya is importing its first consignment of machinery, agricultural products and electronics, among them refrigerators, from South Africa under the African Continental Free Trade Area (AfCFTA). Going forward we shall expect imports from South Africa only of the products we do not manufacture in Kenya,” said Ms Miano.
Horticulture sector: Tanzania borrowing a leaf from Ethiopia (The Exchange Africa)
The fresh produce market is projected to reach US$40.24 billion by 2026 growing at an annual rate of 10.2 percent and Tanzania is angling for a pie of these billions from its horticulture sector. These statistics by Global Market Estimates (GME) show that the global horticulture market averages US$20.77 billion in 2021 and is growing rapidly. However, African countries such as Tanzania, which has enormous agricultural production potential still lag behind and only get to enjoy a small percentage of the over US$30 billion horticulture market.
“We believe, when we ensure access to information and knowledge including the adoption of appropriate technologies, market access, and advocating for business enabling environment, there is a potential of earning up to US$3 billion per annum through the Horticulture Industry,” comments Dr. Jacqueline Mkindi, the CEO, Tanzania Agricultural and Horticulture Association (TAHA). Mkindi adds that Tanzania is making considerable strides in developing the sector but has a long way to achieve its full potential.
“Massive achievements have been accrued so far, including increases in yields of fruits and vegetables by 200 – 300 per cent, increase in export earnings from US$64 million in 2004 to over US$779 million in 2019,” she notes.
Sugar shortages in Tanzania lead to a spike in prices (The Exchange Africa)
A biting sugar shortage in Tanzania is causing the price of the commodity to skyrocket over the last few months. On the one hand, the sugar shortage is blamed on heavy rains at the end of last year while on the other hand, there are allegations of hoarding and price setting by industry cartels.
With little to no evidence of the latter, the speculations remain just that, mere allegations. However, what is undisputed is sugar shortage and the attendant surge in prices for the sweetener. Sugar shortage in Tanzania has persisted for almost an entire year now. So profound is the problem that President Dr Samia Suluhu Hassan was forced to issue a public statement explaining the government’s plan to resolve the issue.
Kenyan, Ethiopian cut flowers to face more scrutiny in EU (Capital Business)
Cut rose flowers from Kenya and Ethiopia will be scrutinised more before accessing the European Union market. According to the Fresh Produce Exporters Association of Kenya, the flowers will be checked 25 percent more starting this May. The new measures follow the review of EU regulatory measures that sought to take precautionary measures over the false codling moth.
“FPEAK has been advised that the EU Member States representatives, meeting with the EU Commission in the EU Standing Committee SCOPAFF earlier this month have formally adopted the anticipated changes to the minimum percentage of plant health import inspections at EU borders of consignments of cut roses from Kenya and Ethiopia,” said FPEAK in a statement.
World Bank Report: Reducing Electricity and Telecommunications Costs in Djibouti Could Boost Growth and Add Jobs (World Bank)
Djibouti has achieved remarkable economic growth over the past two decades, driven by strategic infrastructure investments, its advantageous location, and political stability in a volatile region. With an average annual GDP growth of 4.4 percent between 2000 and 2021, the nation’s real GDP per capita has more than doubled, surpassing USD 3,200 in 2021.
While these gains have translated into solid progress in reducing poverty, from 22.3 percent in 2013 to 17 percent in 2019, more must be done to ensure that the benefits are shared by all segments of society, according to a new World Bank report released today.
The report, titled “Djibouti Beyond the Ports and Bases: A Path to Prosperity for All”, highlights the economic potential of the country. To achieve its potential, Djibouti faces multiple economic challenges, including a limited domestic market, high operating costs in the electricity and telecommunications sectors, limited economic diversification, and the growing challenge of climate change.
“Djibouti is uniquely placed, with assets that can be leveraged to expand its market and attract international private investors,” said Stephane Guimbert, World Bank Country Director for Djibouti, Egypt, and Yemen. “As Djibouti enters its next stage of development, it is essential that the private sector drives growth and that the benefits of growth be shared by all segments of society, particularly women and young people,” he added.
How Embracing Intellectual Property Rights Can Unlock SME Growth in Liberia (FrontPageAfrica)
IPR protection, if sought after by most of the country’s SMEs, would have strategically positioned them to capitalize on the EU-Africa trade agreements as well as the African Continental Free Trade Area (AfCFTA), which provides duty-free access to vast markets for growth. These trade agreements, however, had at their core the protection of IP rights as a key requirement for trade. Studies by the European Union Intellectual Property Office and the European Patent Office have revealed that IP protection is not just key to market competitiveness but also boosts the revenue of SMEs that have IP rights protected, compared to SMEs that do not.
The failure of Liberian struggling SMEs to, therefore, take full advantage of the benefits of IP rights has resulted in a significant number of them missing out on opportunities for growth and income generation.
This is why a healthy SME sector is critical to the overall prosperity of Liberia since half of the country’s employed population is found in the informal sector, largely controlled by SMEs, making IP protection and commercialization key. Each SME entering the Liberian market potentially harbors a unique product or invention capable of revolutionizing the country’s economic landscape. However, the limited utilization of IPR among them poses a significant barrier to this transformative potential.
How Africa states’ indebtedness, collapsing currencies could be fixed (The East African)
Highly indebted African countries are facing stark trade-offs between servicing expensive debt, supporting high and growing development needs, and stabilising domestic currencies. Government debt has risen in at least 40 African countries over the past decade. As a result, some are experiencing a bad combination of high debt, elevated development spending needs amid budget shortfalls, and unfavourable exchange rate pressures.
These issues have become more pressing since 2022, when persistently high inflation prompted major central banks around the world to embark on the most aggressive monetary tightening campaign in decades. Monetary policy tightens when central banks raise interest rates.
Steps can be taken to expand the policy space to tackle these challenges while easing difficult trade-offs. These steps include prioritising public spending measures that raise growth, fixing the revenue collection problem facing all African countries, and restructuring unsustainable government debt.
ECOWAS: Niger, Mali, Burkina Faso Exit Poses Security Threat (Leadership News)
Civil Society Organisations (CSOs) in Northern Nigeria have written to President Bola Ahmed Tinubu, stating that the withdrawal of Niger, Mali and Burkina Faso in the Economic Community of West African States (ECOWAS) poses a big security threat. In the letter they jointly signed, the CSOs said the withdrawal of Niger, Mali, and Burkina Faso poses a direct threat to the collaborative efforts required to combat regional security challenges.
“The withdrawal of Niger, Mali, and Burkina Faso poses a direct threat to the collaborative efforts required to combat regional security challenges. These countries, particularly Mali and Niger, are critical in the fight against terrorism and insurgency, given their geographic positioning and the nature of cross-border security threats.”
How Burkina Faso, Niger, Mali’s exit from ECOWAS will affect Nigeria (The ICIR)
Nigeria will likely face more security and economic challenges following the exit of Burkina Faso, Mali, and Niger as the country’s fight against insurgency and dwindling economy bite harder.
The exit of these countries at a point when Nigeria heads ECOWAS leadership, some diplomatic analysts said, was a result of “poor exploration of diplomatic channels,” professor of Political Science and International Relations and Director of Strategic Partnership at Al-Muhibbah University, Abuja, Muhktar Imam, said. “There is a need for foreign policy drive to re-strategise and think around the foreign policy. The grievance of some of the exited countries is that the management and leadership of ECOWAS are beginning to derail from the founding fathers’ vision,” Muhkar observed.
China-Africa trade hit US$282 billion in 2023 but Africa’s trade deficit widens (South China Morning Post)
“The 1.5 per cent growth was … a reflection of strong resilience of the China-Africa trade,” Jiang Wei, head of the commerce ministry’s West Asian and African affairs department, told reporters on Wednesday. Observers said the modest growth followed the pattern of China’s overall trade with other regions as it faced severe economic headwinds, including weak business and consumer confidence, tepid global demand, a property crisis and heavy local government debt that could constrain the ability to stimulate the economy.
Last year, the value of China’s total global trade slumped 5 per cent from the previous year to US$5.93 trillion. According to Chinese customs data, in 2023 China recorded a drop in trade with its top five trading partners in Africa – South Africa, Angola, Nigeria, the Democratic Republic of Congo (DRC) and Egypt – which are predominantly resource-rich nations.
China imports raw materials from the continent, including oil, copper and aluminium, whose prices dropped in the past year. “A fall in these and Africa’s trade earnings will fall, even if volumes stay the same – and sometimes even if they grow,” Johnston said. “To a large extent today, Africa’s trade balance depends on the price of oil.”
Euro-Africa Trade: New paradigm needed for increased investment (GBC Ghana)
The President, Nana Addo Dankwa Akufo-Addo, says a new paradigm hinged on structural transformation must be defined to allow African economies trade at the high end of the global value chain. In the search for a robust Euro-Africa trading system, in particular, a structural transformation to change course from raw material producing and exporting economies, to value-adding, industrialising economies, was a necessity, he stated.
“This will generate mutual prosperity for the peoples of the two continents,” the President said in an address at the Africa Day 2024 Summit, in Vienna, Austria. The continent, he noted, must shrug itself off the existing practice where it had been largely dependent on the production and export of raw materials, without any meaningful value-addition processes.
In 2021, 68 per cent of goods exported from the European Union (EU) to Africa were manufactured goods, while 65 per cent of goods imported to the EU from Africa were primary goods (food and drink, raw materials and energy), the World Trade Organisation has estimated.
Record IDA Replenishment Essential as Debt Crisis Looms (World Bank)
Low-income countries face a sweeping debt crisis, making it all the more urgent for the IDA21 replenishment to be the largest ever. Ballooning debt payments are pulling scarce resources from development priorities, the International Debt Report 2023 highlights. A robust International Development Association (IDA) – which provides zero to low-interest loans and grants to world’s poorest countries - will be fundamental for many poor countries to invest in their people and the environment and to prevent the loss of hard-won development gains.
“The poorest countries need help, and they need it now,” said Haishan Fu, Chief Statistician of the World Bank and Director of the World Bank’s Development Data Group.
The scale of the problem is stark. In just the past three years, there were 18 sovereign defaults in 10 low- and middle-income countries— more than over the previous two decades. Today, about 60 percent of low-income countries are at high risk of debt distress or already in it. The problem is compounded by the weak growth seen in many of the poorest countries over the past decade. From 2012 through 2022, IDA-eligible countries increased their external debt by 134%, far beyond the 53% increase in their Gross National Income.
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SA sends first shipment under AfCFTA agreement (SAnews)
The implementation of the preferential trading under the African Continental Free Trade Area (AfCFTA) has become a reality with South Africa sending its first shipment of products to other countries trading under the agreement. South Africa is the first among the Southern African Customs Union (SACU) member states, which consists of Botswana, Lesotho, Namibia, South Africa, and Swaziland, to practically realise the AfCFTA Agreement.
“For South Africa, as with many other African countries, the start of preferential trade will create great opportunities for growth and development. Not only will it benefit our country’s producers, but it will also see a huge increase in traffic through our ports, our airports and our land-based border posts.
“The products made in Gauteng, Limpopo, North West, Free State, Mpumalanga and the Northern Cape will flow through these ports to markets beyond our borders,” President Cyril Ramaphosa said on Wednesday in Durban.
“African countries trade with the rest of the world but we have limited trade among ourselves. The reason for this is clear: we are principally exporters of raw materials, selling rocks and black liquid to the world, instead of harnessing our oil and the minerals to industrialise our continent. We need to change this. “We have a unique opportunity to lift millions of people out of poverty by empowering women and young people to change the continent’s business environment. That is why, as the South African government, we are focused on implementing our Freight Logistics Roadmap to improve the efficiency and competitiveness of the country’s rail lines and ports,” the President said.
Ramaphosa launches SA’s first AfCFTA trade shipments in Durban (SABC News)
South Africa: Merchandise imports and exports dropped sharply at end of 2023 (The Citizen)
Merchandise imports and exports dropped sharply at the end of 2023 thanks to high oil prices, diminished commodity export receipts and increased congestion at South Africa’s ports. The country’s cumulative merchandise trade surplus for 2023 decreased to R61.0 billion from R192.0 billion in 2022.
According to Sars, the value of merchandise imports as well as exports fell sharply at the end of 2023. The latest trade statistics show that goods imports dropped by 9.0% in December compared to November to reach R149.9 billion, while exports slumped 11.5%. In the end, South Africa had a preliminary trade surplus of R14.1 billion at the end of 2023, compared to a downwardly revised merchandise trade surplus of R20.6 billion in November.
In terms of trade partners, South Africa logged a R28.7 billion merchandise trade surplus in relation to the African continent during December, while recording a R1.2 billion trade deficit with Europe. At the same time, South Africa registered a trade shortfall of R18.5 billion with Asia.
South Africa’s Gaza stance threatens trade ties with Israel (Semafor)
Israeli companies have canceled the importation of grapes from South Africa, according to three people with direct knowledge. It is prompting fears the African nation’s businesses may face a broader boycott due to Pretoria’s stance over the conflict in Gaza. South Africa took Israel to the UN’s International Court of Justice (ICJ) earlier this month over accusations that Israel is committing genocide against Palestinians. The court subsequently ordered Israel to do all it could to prevent acts of genocide in Gaza.
The Congress of South African Trade Unions (COSATU), South Africa’s biggest trade union group, called on the country’s government to protect its workforce from the impact of any trade dispute with Israel. “We need to ensure no South African worker loses their job,” said its spokesman, Matthew Parks, while also calling for the international community to impose sanctions on Israel. It was important that South Africa’s trade department and other official bodies “provide support and assistance” to any company which “faces a boycott from Israel,” he told Semafor Africa.
Namibia and Botswana should ease current restrictions on SA vegetables – Agbiz (IOL)
Agricultural Business Chamber’s (Agbiz) chief economist, Wandile Sihlobo, said yesterday that South Africa should send a firm message to neighbouring Namibia and Botswana about its interest in maintaining smooth trade within the Southern African Customs Union (Sacu) and that these countries should ease the current restrictions on vegetables.
“If there are attempts to revive their domestic vegetable industries, such should be communicated clearly to South Africa, as an affected partner, with clear time frames of these bans. Such information would be valuable in assisting the South African industry and government to plant appropriately for export markets to other regions when the ban is in place,” Sihlobo said.
Closing South Africa’s Sustainable Development Goals (SDGs) gap will require significant infrastructure and related spending, informed by the right objectives and relevant metrics, according to a joint study by the World Bank and the Development Bank of Southern Africa (DBSA), launched today. The report, entitled: Going Beyond the Infrastructure Funding Gap - A South African Perspective, quantifies the spending needed in education, transport, and water and sanitation to achieve the related SDGs.
According to the study, South Africa needs to spend between R4.8 trillion and R6.2 trillion ($254 billion to $329 billion) on transport, water and sanitation, basic education, and Technical and Vocational Education and Training (TVET) between the years 2022 and 2030, to close the SDGs gap in these sectors. The figures for the infrastructure spending are equivalent to spending between 8.7% and 11.2% of Gross Domestic Product (GDP) per year on average. The study asserts that the solution is not always to spend more, but to spend better on the right objectives, with the use of relevant metrics.
Concern as South Africa hits lowest corruption perception index score ever (IOL)
South Africa is losing the fight against corruption as it continues to slide downward among countries perceived to have serious challenges with public sector corruption, the 2023 Corruption Perceptions Index report shows. The report, which relies on the expert opinion of business people, experts, think tanks, risk companies, and global data sets, shows SA scored 41 out of 100, the lowest score since Corruption Watch started tracking the country’s public sector corruption index 12 years ago. The CPI was released on Tuesday by Transparency International, a global anti-corruption movement, in which South Africa scored 41, a two point drop from last year’s score of 43, which showed the country was moving in the wrong direction.
Egypt’s Accession to BRICS Group Leads to Activation of Preferential Trade Agreement with South Africa (asumetech)
Egyptian media reported that Egypt had reaped the first fruits of joining the BRICS group after South Africa announced the activation of preferential trade within the free trade agreement with Egypt. This matter adds a new chapter of economic cooperation and opens the door to enhancing the volume of trade between Egypt and South Africa, which witnesses great opportunities for cooperation, especially with Egypt’s accession to the BRICS countries this year.
Referring to the official figures, data from the Central Agency for Public Mobilization and Statistics monitored the development of the volume of trade exchange between Egypt and South Africa, reaching about 217.1 million dollars by the end of 2021, compared to 158.5 million dollars during the year 2020, an increase of 58.6 million dollars, with an increase rate of 37%. Distributed among Egyptian exports to South Africa worth $128.9 million during the year 2021 compared to $75.2 million during the year 2020, an increase amounting to $53.7 million, an increase of 71.5%, while the value of Egyptian imports from South Africa recorded about $88.2 million during the year 2021 compared to $83.3 million during the year 2020, an increase of about $4.9 million, an increase of 5.8%.
Goods, services imports fall (Tanzania Daily News)
The imports of goods and services decreased to 16,222.2 million US dollars in the year ending last November compared with 16,315.3 million US dollars in the corresponding period a year before ensuing from a fall in goods import bill largely white petroleum products.
The Bank of Tanzania (BoT) monthly economic review for December last year shows that imports of machinery, industrial transport equipment motor cars and food and beverages for industrial use increased, while that of refined white petroleum products fell by 14.5 per cent to 2,799.7 million US dollars on account of price effect.
Services payments slightly increased to 2,396.7 million US dollars from 2,385.4 million US dollars in the year to November 2022, due to a rise in transportation and travel services.
Safaricom triples M-Pesa users in Ethiopia to 3.1m (Business Daily)
The number of M-Pesa users enrolled by Safaricom’s Ethiopia unit has nearly tripled in four months to 3.1 million with Sh18.5 billion worth of transactions, offering hope for success in the populous country. The latest quarterly update showed that Safaricom Telecommunications Ethiopia closed in December 2023 with 3.1 million M-Pesa users. Safaricom’s Ethiopia subsidiary launched the mobile money service on August 15 last year.
“We are very pleased with the optimism that M-Pesa has evoked in the youthful population of Ethiopia, and we look forward with great excitement to the transformation M-Pesa will bring to financial inclusion in Ethiopia,” said Safaricom chief executive Peter Ndegwa.
At 3.1 million, Safaricom’s subsidiary in Ethiopia has nearly tripled its mobile money customer base given that it had 1.2 million users at the end of September. The increased usage has also seen the value of transactions rise over six times to Sh18.5 billion from Sh3 billion at the close of September.
Tax exemptions, incentives rob Kenya of growth in revenues (The East African)
According to an analysis of the tax policy and administrative changes in East African Community countries by the International Monetary Fund (IMF), Kenya’s tax-to-GDP ratio has been falling since peaking in 2014. The IMF analysis tracked tax policy and administrative changes between 1988 and 2022, revealing the bulk of changes undertaken in Kenya resulted in a reduction of taxes payable.
“While in all the EAC countries except Rwanda and Uganda, tax changes primarily consisted of base changes, in Kenya base-narrowing measures were announced more frequently than measures to strengthen administrative practices. Kenya was also the only country in the sample where the frequency of tax policy changes introducing a reduction in taxpayers’ liabilities exceeded 60 percent of total tax policy changes,” the IMF said.
“Kenya needs to strengthen tax collection consistent with the authorities’ objectives of sustained increase in tax revenues to meet their development agenda. In this regard, a key milestone is the timely adoption of Kenya’s first MTRS which aims to increase revenues by five percentage points of GDP by FY2026/27 through measures that broaden the tax base and strengthen tax compliance,” the IMF added.
AfDB wants Kenya, Tanzania electricity deals finalised (The East African)
The African Development Bank (AfDB) wants Kenya and Tanzania to speed up the signing of three key agreements to pave the way for the exchange of excess electricity between the two countries via a Ksh43 billion ($309.26 million) line. The three are a wheeling agreement between Tanzania Electric Supply Company (Tanesco) and Kenya Electricity Transmission Company Limited, a power exchange deal between Kenya Power and Tanesco and a tripartite deal for the maintenance of the interconnected grid.
AfDB— a major financier of the project— in its latest review said that the three deals are key to rolling out the regional power trade meant to boost electricity supply and cut reliance on the dirty and costly thermal power in the two countries.
The Memorandum of Understanding (MOU) signed between Ethiopia and Somaliland has far-reaching benefits for the region beyond the signatories and manifests Ethiopia’s continued commitment towards regional economic integration, Ethiopian Ambassadors to Canada, US, and China said.
Ethiopia’s Ambassador to Canada, Fitsum Arega said that “the MoU between Ethiopia and Somaliland is a continuation of efforts that we had started decades back to integrate with the region and mutually benefit. So, the MoU is historic and Ethiopia’s economy is growing and we would like to have more access sea ports.” Through bilateral and multilateral discussions, Ethiopia will pursue for what has already started, he emphasized.
“Ethiopia will continue to have more sea ports access like Djibouti port, Berbera port and even Lamu port in Kenya and other ports within the Red Sea. Ethiopia will continue to network through infrastructure as well as ports. So, it is for the benefit of the entire region to grow together,” Ambassador Fitsum underscored.
Ama Dokua advocates women empowerment at AfCFTA Durban meeting (Asaase Radio)
Ghana’s deputy minister of trade and industry Ama Dokua Asiamah-Adjei has stressed the significance of adopting protocols related to women and youth in trade, as well as digital trade, in the effort to generate employment opportunities in Africa. Speaking at the 13th AfCFTA Council of Ministers Meeting in Durban, South Africa, Asiamah-Adjei said, “Ghana believes that these protocols, when adopted, will empower women and youth entrepreneurs, create skillful and meaningful job opportunities, and enhance overall economic goals and development across Africa.”
Uganda Women can lead in the realisation of intra-Africa trade (UNDP)
The United Nations Development Programme (UNDP) hosted a Women Leaders’ Dialogue to explore how women and women-led enterprises can best utilize opportunities within the African Continental Free Trade Area (AfCFTA) and how women’s leadership can help to address development challenges in sectors of strategic interest to Uganda. UNDP Regional Bureau for Africa Strategy Advisor Dr. Joy Kategekwa led a discussion on the AfCFTA, encouraging reflections on the role of women in trade and strategies to elevate women’s participation and integration within the One African Market.
EAC lawmakers meet to resolve Kenya, Tanzania frequent trade disputes (People Daily)
Members of the East African Legislative Assembly (EALA) have set up camp at the Namanga One-Stop-Border Point (OSBP) in a concerted effort to address trade disputes between Kenya and Tanzania. The MPs are engaging with traders, cross-border business community and government officials to assess the current and emerging challenges affecting business at this bustling border point.
Kanini Kega, who represents Kenya at the EALA and is leading the 11-member special committee, emphasised their commitment to promote seamless trade, fostering unity among member states, and improving communication on new policies to prevent diplomatic conflicts.
“We have witnessed numerous diplomatic disputes at this border point. These conflicts have a detrimental impact on businesses, resulting in multimillion-dollar losses, especially for perishable goods,” Kega said. Agricultural produce, the EALA member said, is particularly affected due to its short shelf life. We are seeking to engage all relevant government stakeholders to ensure smooth trade moving forward. However, Kenyan traders have raised concerns about the challenges imposed by Tanzanian authorities, affecting business at the border point.
The Fund for Export Development in Africa (FEDA), the development impact-focused subsidiary of the African Export-Import Bank (Afreximbank), has announced that the Republic of Equatorial Guinea and the Republic of Ghana have recently signed the FEDA Establishment Agreement. This important milestone is the result of several months of cooperation between Afreximbank, FEDA and government officials in Equatorial Guinea and Ghana.
As Afreximbank member states, Equatorial Guinea and Ghana have taken another step towards closer collaborations with FEDA by signing the FEDA Establishment Agreement. This milestone marks the countries’ support for Afreximbank’s efforts to extend FEDA’s impact investing objectives across the continent. New memberships are crucial to broaden the scope of FEDA’s interventions and its mission of delivering long-term capital to African economies with a focus on industrialization, intra-African trade and value-added exports.
The decision by Burkina Faso, Mali, and Niger to withdraw from the Economic Community of West African States (ECOWAS) opens a new chapter in a relationship that their citizens have generally seen in a favourable light in the past.
Afrobarometer surveys conducted in 2019/2021 showed that citizens in the three countries held largely favourable views of ECOWAS, rating its economic and political influence more positively than that of the African Union. The perceived positive influence of ECOWAS was equally widespread across all age groups and rural/urban locations, and increased with citizens’ level of education and economic affluence. But the three West African nations announced this week that they were withdrawing from the regional economic community, complaining of a lack of support and “inhumane” sanctions in the wake of the countries’ military coups.
The surveys were conducted in 2019/2021, before mounting tensions in the region in the wake of recent coups d’état and the imposition of sanctions by ECOWAS and the West African Economic and Monetary Union (UEMOA). Afrobarometer’s 2022 survey in Mali found that while most citizens did not see themselves as the primary beneficiaries of ECOWAS/UEMOA sanctions, only a minority expected the sanctions to lead to the country’s withdrawal from ECOWAS.
Well-Developed Africa Mutually Beneficial To Europe, Rest Of The World (The Presidency, Republic of Ghana)
The President of the Republic, Nana Addo Dankwa Akufo-Addo, has called on world leaders to recognize that the increasing levels of inter-dependency amongst the comity of nations translates into shared destinies, whether good or bad, across the globe.
Speaking at the annual Africa Day event, on Tuesday, 30th January, 2024, Vienna, Austria, President Akufo-Addo told the gathering of global leaders that, he believes a well-developed and prosperous Africa would be good, not just for us Africa, but also for you, here in Austria and Europe.”
Citing antecedents of equitable balance of wealth, he alluded to the lessons of history that has shown that “a rich trading partner, operating within a fair, trading system, brings prosperity to both sides, far more than the exploitation of a poor partner,” he said.
Emphasising on the reasons for a fair and mutually beneficial trading system, he said, “the continent is in possession of thirty percent of the earth’s remaining mineral resources, and two-thirds of the earth’s arable land.” However, he bemoaned the age-long practice where Africa has been largely dependent on the production and export of raw materials, without any meaningful value-addition processes.
More Than A Goldmine: Trade Partners Must Prioritise Sustainability In The Global Race For Africa’s Rare Earth Metals (The Organization for World Peace)
With developed global economies pushing for ever more digitisation, technological innovation and energy sustainability, there is one commodity for which demand has increased exponentially: rare earth metals (REMs). These raw materials are an indispensable component in the production of high-tech and low-carbon products that are essential to the growth that the US, UK and EU countries in particular are aiming for.
But with the major producer and refiner of REMs, China, witnessing a rise in tensions and rivalry with its western buyers over the last few years, the global technology supply chain appears worryingly precarious. The answer, according to US and European leaders, seems to be a swivel to the global south and with Africa’s emerging rare earth metals market.
MTN reiterates its position to be a ‘force for good’ for Africa’s growth and prosperity (MTN)
MTN has reiterated its commitment to Africa’s progress at the Africa Prosperity Dialogues, recently held at Peduase, in Accra, Ghana. The program, organised by the Africa Prosperity Network, was designed to drive Africa’s growth through high-level dialogues between government and business leaders from Africa and beyond to deliberate and exchange ideas on key issues and solutions for building and harnessing Africa’s growth.
Ebenezer Asante, MTN Group Senior Vice President, Markets, encouraged industry players as well as government officials from across Africa to support cross-border trade by putting an end to what he called the “tyranny of sovereignty”. He applauded the government of Ghana’s decision to facilitate visa-free travel for Africans and bemoaned the challenges Africans face in making cross-border payments and transactions.
He said, “The tyranny of sovereignty must end to allow proper trade and ease of doing business across West Africa. Technology continues to transform the way we trade, and we must leverage the immense opportunities it presents to trade within our borders. The tyranny of sovereignty is an impediment to progress because with our borders closed to each other, we cannot foster seamless trade. African countries must open their borders to each other to allow intercontinental trade.”
African Development Bank reports on Comoros, Democratic Republic of Congo, South Sudan, and Seychelles show advances in addressing gender discrimination – despite uneven rates of progress – and provide new data to help develop policies to accelerate gender equality. The African Development Bank Group’s Country Gender Profiles assess the state of gender equality in each country and provide concrete recommendations on actions.
“We can only improve what we know, and what we know is what we measure. The data we see through country gender profiles are a critical development tool to improve the design, implementation, and tracking of policy and actions based on evidence,” said Basil Jones, the Bank’s Lead Gender Program and Policy Coordinator.
Despite progress, the profiles show that poverty disproportionately affects women. The COVID-19 pandemic, coupled with the impact of global crises, particularly on food security, have worsened gender inequalities - especially gender-based violence.
Nairobi to host 2nd Canada-Africa Business Conference (The Exchange Africa)
Nairobi will host the second Canada-Africa Business Conference slated for February 2024, as the North American country looks to increase its grip on regional investments. The Canada-Africa Chamber of Business announced that the annual gathering slated for the 19th to 20th of February 2024 in Nairobi, will be inaugurated by Kenyan President William Ruto and will seek to foster bilateral trade relations and investment opportunities between Africa and Canada.
The conference will serve as a platform for government officials, business leaders, and entrepreneurs from both nations to engage in constructive dialogue, explore potential collaborations, and showcase innovations across various sectors. Program Chair for the event Deepak Dave said that the Canada-Africa Business Conference signifies an opportunity for stakeholders to explore avenues for investment, further solidifying the bonds between Canada and Africa.
Italy announces $6 billion plan to strengthen partnership with Africa at Italy-Africa Summit (AfDB)
The government of Italy unveiled a near US$6 billion plan to support African development at a one-day Italy-Africa summit in Rome on Monday. African Development Bank Group President Dr Akinwumi Adesina joined 25 African leaders and European Union officials at the summit. The summit—which took place as Italy assumes the Presidency of the G7 this month, and a few weeks ahead of the 37th Ordinary Assembly of the African Union in Addis Ababa—was one at which Italian Prime Minister Georgia Meloni called for a new Italian partnership with Africa.
The Italian leader announced various initiatives designed to bolster economic links and create an energy hub for Europe while curbing African emigration to Europe. They included an initial pledge of €5.5 billion (US$5.95 billion) including guarantees. African Union Commission Chairperson Moussa Faki welcomed the pledged support, while noting that prior consultation with the African continent would have been desirable, particularly when the Mattei Plan was being drafted. He said the plan, nonetheless, aligns with Africa’s priorities.
Op/ed: Europe And Africa Forging A New Relationship (Eurasia Review)
Roadmap for trade single windows: UNCTAD helps countries cut red tape, costs and emissions (UNCTAD)
Jamaica’s trade facilitation and paperless trade rating jumped from 50.5% in 2017 to 79.6% in 2023, after rolling out a national electronic single window with UNCTAD’s support. The strategic move in 2020 revolutionized the Caribbean island nation’s trade processes by simplifying, standardizing, automating and coordinating the exchange of regulatory information and documents between traders and government agencies.
The electronic single window trimmed the approval time for import and export permits from three days to just 24 hours, significantly cutting the costs related to storage and demurrage – when goods are not removed from the port or terminal within the allotted free time. It also improved the ease of doing business, helping to boost Jamaica’s imports by 29% and exports by 28% in 2022 compared to 2021.
“An electronic single window for trade is one of the most effective measures to enhance trade facilitation in a country,” says Shamika N. Sirimanne, UNCTAD’s technology and logistics director. “Its potential impact is underscored by its inclusion as an obligation in the WTO Trade Facilitation Agreement.” The system not only simplifies and speeds up trade but also ensures the transparent and uniform application of duties and taxes, generates additional government revenue, helps to combat corruption and ensures compliance with standards for public health and safety.
Gaza: Unprecedented destruction will take tens of billions of dollars and decades to reverse (UNCTAD)
UNCTAD released on 31 January a report on the social and economic deterioration in Gaza since the beginning of the military operation after 7 October 2023. The report quantifies GDP loss, recovery timelines and the enduring effects on poverty and household expenditure, painting a daunting picture of the development challenges ahead.
Utilizing innovative satellite imagery and official data, UNCTAD estimates that Gaza’s economy had already contracted by 4.5% in the first three quarters of 2023. However, the military operation greatly accelerated this decline, resulting in a 24% contraction of GDP and a 26.1% drop in GDP per capita for the entire year. If the current military operation were to end immediately with reconstruction starting right away and the 2007-2022 growth trends were to persist with an average growth rate of 0.4%, it would take Gaza until 2092 just to restore the GDP levels of 2022, with GDP per capita and socioeconomic conditions continuously declining. However, even with the most optimistic scenario that GDP could grow at 10% annually, it would still take Gaza’s GDP per capita until 2035 to return to its pre-blockade level of 2006.
The recovery of Gaza’s economy from the current military operation will demand a financial commitment several times more than the $3.9 billion that resulted from the 2014 military operation in Gaza and will require a concerted international effort to restore pre-conflict socioeconomic conditions.
WTO reform among Brazil’s priorities at G20 (Agência Brasil)
During its inaugural technical meeting this week, the G20 Trade and Investment Working Group unveiled the priority issues outlined for the sector under Brazil’s rotating presidency of the G20, a forum that encompasses the world’s 19 largest economies, alongside the African Union and the European Union.
The meeting with representatives of the G20 member countries was conducted via videoconference and concluded on Tuesday morning (Jan. 30). Brazil highlighted four priorities: developing trade policies related to sustainable development in environmental and social domains; mapping sustainable development clauses in investment agreements; enhancing women’s participation in international trade by identifying their main access barriers; and reforming the World Trade Organization (WTO).
Fish Fund Steering Committee holds inaugural meeting (WTO)
The Steering Committee of the WTO Fisheries Funding Mechanism held its first meeting on 31 January to get ready to provide assistance to developing members and least-developed country members (LDCs) to help them implement the Agreement on Fisheries Subsidies. Deputy Director-General Angela Ellard said it is crucial that the assistance is ready to be provided once the Agreement enters into force.
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Italy-Africa Summit
Italy unveils its plan for the development of Africa (Africanews)
Italian Premier Giorgia Meloni on Monday unveiled Italy’s big development plan for Africa at a summit of the continent’s leaders, aiming to stem the numbers of migrants, diversify sources of energy and forge a new, non-predatory relationship between Europe and Africa.
Meloni declared the summit a successful first step, and top European and United Nations officials said the Italian plan, with an initial endowment of 5.5 billion euros ($5.95 billion), would complement initiatives already under way focusing on climate adaptation and clean energy development in Africa.
Asked at a closing news conference about the lack of consultation with African leaders, Meloni acknowledged she may have “erred” in being too specific in describing pilot projects in her introductory speech. But she said the summit provided African leaders with a preliminary outline of Italy’s philosophy backed by concrete examples, that will be brought forward in a shared partnership. The plan involves pilot projects in areas such as education, health care, water, sanitation, agriculture and energy infrastructure.
President Meloni’s opening address at the Italia-Africa Summit (Italian Government)
In this room, we are acutely aware of the challenges the world faces, each complex, but also deeply interconnected. New and renewed conflicts are causing widespread human suffering and deepening divisions, precisely at a time when global collaboration and unity are of paramount importance. The high cost of living, fiscal strain, and migration are undermining international solidarity, while the severe and escalating impacts of climate change are affecting us all.
Energy is intricately connected to these global challenges, serving as both a source of difficulties and potential solutions. As we move forward from COP28, we are entering a new era of energy. Collectively, we recognized that transitioning away from fossil fuels and tripling renewables by 2030 is our best bet to stay on a climate-safe path.
The way Africa embraces this challenge will have significant regional and global ramifications. For Kenya and the African continent, the shift towards renewable energy represents a crucial opportunity for our people and economies to access modern energy services, propel industrialization, and transform into a green powerhouse contributing to global decarbonization.
In this era of transformation, the energy trajectories of Europe and Africa are becoming increasingly interwoven. The discussion on energy transition and security has evolved to include the diversification of value chains. The manufacturing of renewable energy technologies, the development of green hydrogen, and the extraction of critical materials are now at the forefront of the energy dialogue. Africa’s abundant renewable resources are key to decarbonizing and diversifying global supply chains. Additionally, the continent’s rich deposits of critical materials, essential for the development of modern technologies, present a unique opportunity for collaboration with Europe.
FAO Director-General outlines five pillars for effective impact in Africa at Italy-Africa Summit (FAO)
Transformation to more efficient, inclusive, resilient and sustainable agrifood systems in Africa can boost average agricultural productivity by two to three times and stimulate rural renovation and development, the Director-General of the Food and Agriculture Organization of the United Nations (FAO) QU Dongyu said today. To unleash Africa’s full potential, the Director-General outlined five key pillars that can provide game-changing solutions to efficient agrifood systems transformation, underpinned by strategic partnerships: 1) targeted investment; 2) creating jobs for youth and women empowerment; 3) collectively addressing the root causes of migration, bringing new hope and new solutions; 4) innovation and skills development, particularly for youth and women; and 5) improving market access and trade.
Speech by H.E. Moussa Faki Mahamat, Chairperson of the African Union Commission (African Union)
Speech by President von der Leyen: Italy-Africa Summit (European Commission)
Deputy Secretary-General Amina J. Mohammed’s Remarks on the Occasion of the Italy-Africa Summit [as prepared for delivery] (United Nations)
Speech by Dr. Akinwumi A. Adesina President, African Development Bank Group (AfDB)
Remarks by Axel van Trotsenburg, World Bank Senior Managing Director (World Bank)
Trade under the new preferences set out in the African Continental Free Trade Agreement (AfCFTA) will be launched by President Cyril Ramaphosa and the Minister of Trade, Industry and Competition of South Africa, Ebrahim Patel on Wednesday 31 January 2024 at Pier 1 in Durban. This follows the publication on Friday 26 January in the Government Gazette of the terms under which South Africa will participate in the new free trade agreement.
Twelve countries, including South Africa, have finalised their legal modalities to enable trade to commence in thousands of products lines, ranging from food and beverages to steel products and equipment, taxis, pharmaceutical and personal care products, chemical products and household goods such as fridges and televisions. The event on Wednesday will include a display of products due to be exported and the witnessing of the first container of goods loaded onto a ship destined for markets covered by the start of trade under the AfCFTA.
South Africa is simultaneously co-hosting a meeting of the Council of African Trade Ministers to consider further measures to strengthen the AfCFTA, on 30-31 January 2024 at the Durban ICC. Approximately 25 trade ministers and officials from about 40 countries are expected to attend.
IMF cuts South Africa’s 2024 growth forecast (Engineering News)
The International Monetary Fund (IMF) downgraded its economic-growth forecasts for South Africa, warning that logistical challenges are constraining activity and acting as a drag on the entire region. Africa’s most-industrialised economy will likely grow a meagre 1% this year, significantly slower than the IMF’s forecast in October, when it saw South Africa’s gross domestic product expanding by 1.8%, the Washington-based lender said Tuesday in an update to its World Economic Outlook.
That’s due chiefly to “all of the disruptions we’ve seen in the energy sector and also the logistics — in transportation, freight and ports in South Africa,” IMF Chief Economist Pierre-Olivier Gourinchas told Jennifer Zabasajja in an interview on Bloomberg Television in Johannesburg. “That needs to be addressed.”
New initiative set to create job opportunities for seafarers (SAnews)
Minister of Transport Sindisiwe Chikunga has announced a new initiative aimed at enhancing maritime employment opportunities for South African seafarers. “This program is not just about creating job opportunities; it is about nurturing a skilled workforce that will competently navigate the challenges and opportunities of the modern maritime world,” Chikunga said on Tuesday in Cape Town.
The Minister said the Seafarer Employment and Development Programme (SEDP) will be launched in the first quarter of the new financial year. It will provide training, mentorship, and job placement assistance to qualifying Seafarers and will serve as an international collaborative maritime research centre to address the ever-evolving needs of the maritime industry.
Food distributor welcomes chicken import rebates but warns of supply chain issues (Engineering News)
The International Trade Administration Commission of South Africa (Itac) confirmed on January 25 that it is lifting punitive tariffs on imported chicken in response to the impacts of the Highly Pathogenic Avian Influenza (HPAI), also known as bird flu, which has ”ravaged” global and local poultry supplies.
South African food distributor Hume International logistics and operations director Roy Thomas notes that Statistics South Africa’s latest inflation figures reveal that, in 2023, the price of eggs increased by 38%, chicken giblets by 18.3%, fresh chicken portions by 14.6%, whole chicken by 8.4% and individual quick frozen portions by 6.4% – all above average inflation for the year. “These price increases clearly reflect the ongoing impacts of bird flu both locally and abroad, in addition to the effect of new import tariffs implemented in August last year.
“The reality is that while local chicken producers remain hopeful of receiving government approval for a vaccine by the end of February, South Africa does not produce enough chicken to supply local demand. Imports, therefore, serve as an important complement and price regulator in the local market.” He adds that South Africa’s food supply chain is facing various issues, including loadshedding and water shortages, which may contribute to higher prices for consumers.
Saudi Arabia to Import Meat From New BRICS Partner South Africa (Bloomberg)
Saudi Arabia will start importing South African beef and lamb products as part of an investment push into the continent’s most developed economy. The kingdom’s Food and Drug Administration lifted a 20-year prohibition on South African meat imports in August, and final approvals to start shipments of halaal cuts to the Middle Eastern nation are now in place, said Matthew Karan, part-owner of Karan Beef.
Relief as first batch of sugar consignment arrives (Tanzania Daily News)
The first batch of sugar consignment entered into the country yesterday, to cushion the demand and lower the prices of the commodity that is hitting the ceil. The batch being offloaded at the Dar es Salaam Port on board mega JPO Aquarius ship, is part of the 100,000 tonnes that the government approved to sugar producers, to import following acute shortage of the commodity due to what has been described as heavy rains in November and December last year that curtailed local production.
Speaking to journalists while unloading the cargo at the port, the Sugar Board of Tanzania (SBT) Planning, Monitoring and Evaluation Manager, Mr George Gowele said the imported sugar will start flooding the market today after completing all port procedures.
Kenya, US to forge stronger ties in trade partnership (Capital News)
Kenya and the United States on Monday underscored their mutual dedication to strengthening bilateral trade and investment. The focus areas include agriculture, regulatory practices, and the rights and protections of workers. The commitment was highlighted in a meeting where negotiating teams from both countries in the Strategic Trade and Investment Partnership gathered to assess the advancement of ongoing talks.
Led by Cabinet Secretary for Investment, Trade, and Industry, Rebecca Miano, and United States Ambassador to Kenya, Meg Whitman, the teams, alongside Prime Cabinet Secretary Musalia Mudavadi, convened to provide updates on the progressing partnership. “Our goal is to foster economic prosperity, ensure security, protect human rights, and uphold democratic principles. The negotiations mark a crucial step towards a more comprehensive and mutually beneficial partnership between our two nations,” Miano said.
Kenya records new high in horticultural exports (Capital Business)
The volume of Kenya’s horticultural exports hit a new high in 2023, boosted by increased shipments of vegetables and fruits, the Central Bank of Kenya (CBK) said Monday. The bank noted in the data released in the Kenyan capital of Nairobi that the country exported 580,648 tonnes of horticultural produce in the first 10 months of 2023, an increase from 572,290 tonnes in the entire 2022.
The economic data indicated that the volume of flower exports has not grown as fast as that of fruits and vegetables as some key destination markets, including Europe and America, battled higher inflation during the period. With Kenya exporting about 12,000 tonnes of flowers every month, the total cut exports for 2023 are expected to stand at about 134,000 tonnes. Horticulture is one of Kenya’s top foreign exchange earners alongside tourism and tea.
Mombasa poultry farmers decry proposed levies on chicken products (Capital Business)
Poultry farmers have raised opposition to a proposal by Mombasa County to impose new levies on chicken products, arguing it will impact their business. Under a new proposal, the devolved unit is planning to slap 5 percent and 10 percent levies and charges on chicken meat, live chickens, and eggs. While the move is aimed at generating revenue for the county, the Poultry Breeders Association of Kenya (PBAK) argues that the taxes will deal a blow to the area’s poultry business.
In opposition, PBAK members stage a demo outside the county government offices. “The poultry industry is already facing challenges such as feed prices and diseases. The imposition of these new levies is a direct threat to our survival,” said Halima Abdala, a poultry farmer and member of the association. “If these charges are implemented, the entire industry will be on the brink of collapse, and people will suffer from a lack of access to affordable, nutritious poultry products.”
Dar, Delhi bilateral trade heads to exponential growth (Tanzania Daily News)
The bilateral trade between Tanzania and India is experiencing exponential growth, positioning Tanzania as India’s third-largest trade partner in Africa by 2023/24. The projected trade volume between these historically connected nations is expected to reach 6.5 US billion dollars (around 15tri/-) in 2023/24, up from 4.5 billion US dollars in 2022/2023.
The Indian High Commissioner to Tanzania, Mr Manoj Verma, emphasised this development during the celebration of India’s 75th anniversary of independence in Dar es Salaam, where he led the Indian Diasporas. He stated, “There have been significant achievements in the India-Tanzania bilateral relationship. Our bilateral relations were upgraded to a strategic partnership during President Dr Samia Suluhu Hassan’s state visit to India in October 2023.”
Ship-owners challenge FG over Cabotage, trade policy (Vanguard)
The Nigeria Ship-Owners Association, NISA, has challenged the Federal Government to stop granting waivers to foreign ship owners operating in the Cabotage area to demonstrate its seriousness with developing the local shipping industry. Speaking with Vanguard on the issue, president of NISA, Sola Adewumi, said stoppage of waivers for Cabotage will increase the number of local ships operating within the costal ways; which will in turn grow local capacity in terms of manpower and number of ships.
East Africa trade: Kenya, Tanzania and DRC drivers by 2035 (The Exchange Africa)
Kenya-DRC and Tanzania-DRC Corridors have been identified as the key links that will drive East Africa trade. Within the Southern Africa region, higher integration will drive its share of total intra-Africa exports to a third by 2035. The MENA Region and the Middle East-East Africa corridors will also be substantial.
EAC states: Borrow a leaf from Kenya carbon trading deals (Tanzania Daily News)
The EAC countries are now beginning to tap into carbon trading by calling investors to invest in this new lucrative business. Carbon credit markets enable industrialised nations and businesses to offset their carbon emissions by investing in ecofriendly projects elsewhere.
The compliance market for carbon credit in EAC is regulated by national and international authorities who determine a cap on the amount certain sectors can release into the environment to achieve their Nationally Determined Contributions (NDC) under Article 4 of the Paris Climate Agreement. “What EAC needs to do is to incentivise the private companies to continue interventions to offset emissions through Environmental, Social and Governance (ESG) mechanisms,” East Africa Business Council (EABC), Policy, Standards and NTBs Manager, Mr Frank Dafa said.
The Kenya Carbon Credit Trading and Benefit Sharing Bill 2023 set a regulatory framework for the trading of CC and sharing of them, establish a CC Trading Benefit Authority to register and regulate carbon trading businesses, and set up a tribunal to mediate disputes in the market. “Kenya is on the world map as a market leader in the carbon space due to its clarity on dealing with some dispute carbon project in and outside the country,” Mr Dafa said.
Junta-led Niger, Mali and Burkina Faso to withdraw from ECOWAS (JURIST)
The junta leaders of Niger, Mali and Burkina Faso released a joint statement Sunday on national television saying they were quitting the Economic Community of West African States (ECOWAS). The joint statement accused ECOWAS of betraying its founding principles, posing a threat to its member states and being influenced by foreign powers. Referring to the sanctions imposed by the ECOWAS on the three West African countries since their military takeovers as “illegal, illegitimate, inhumane and irresponsible,” the junta leaders announced the immediate withdrawal of Burkina Faso, Mali and Niger from ECOWAS.
ECOWAS responded on Sunday that it had not yet received any formal notification of the three countries’ withdrawal and that they remained “important members of the Community.” ECOWAS also stated it will “remain seized with the development” and “make further pronouncements as the situation evolves.”
West Africa’s ‘Brexit’ moment spells trouble for the region (Reuters)
A decision by Mali, Burkina Faso and Niger to quit West Africa’s economic and political bloc reverses decades of regional integration, leaving millions of people in limbo, and is likely to deepen the three junta-led countries’ ties with Russia. The move to withdraw from the 15-member Economic Community of West African States (ECOWAS) could yet take time to implement, opening a door for negotiations.
But, if carried through, it is set to disrupt the region’s trade and services flows, worth nearly $150 billion a year. It also raises questions over millions of nationals from the three poor and landlocked nations who settled in neighbouring states as the bloc allows visa-free travel and right to work.
Ecowas shrinks as coup triumvirate withdraws (Freight News)
Solar Energy Capacity in Africa (Arem Solar)
Solar energy capacity refers to the maximum amount of solar energy that can be generated by a specific system or in a particular location within a given period. This capacity can vary from small residential homes to large commercial industries that are spread throughout the country. In Africa from our findings the main reason residents adopt solar energy energy is due to the un-reliable grid power supply.
South Africa is the largest producer of solar power capacity in the continent at 6,326 MW. They generate 3.7x as much solar power than the Egypt at 1,724 MW. Nigeria is the 16th country in Africa that produces the most solar power.
2023 Ibrahim Index of African Governance (IIAG) report highlights the strong correlation between high-quality data and effective governance (Mo Ibrahim Foundation)
The Mo Ibrahim Foundation (MIF) today launched its IIAG Series 2023 Report, “The Power of Data for Governance: Closing data gaps to accelerate Africa’s transformation,” in Accra. Sound data is at the heart of Africa’s governance and development agendas, and the report underscores its role in driving progress, assessing government performance, setting policy priorities, and ensuring trust in governments. Drawing from the 2022 IIAG dataset, the report reveals a strong positive correlation between access to high-quality statistics and effective governance across African countries from 2012 to 2021.
Intellectual property: A potential game-changer for least developed countries (UNCTAD)
A new report by UNCTAD and the Commonwealth sheds light on a range of tools and options to help LDCs create an enabling environment for IP rights and use them strategically to unlock innovation, boost trade, attract investment and promote technological upgrading. “The essence of our journey is not merely about adopting IP rights, but about revolutionizing the way we perceive and utilize them,” UNCTAD Secretary-General Rebeca Grynspan said on 29 January at an event to launch the report, joined by the heads of the Commonwealth and the UN’s World Intellectual Property Organization (WIPO)
“Not all IP policies will work in all LDCs. But all LDCs can implement successful IP policies,” Ms. Grynspan added. “Innovation — supported by appropriately targeted IP protection — can be a powerful catalyst and enabler for strengthening the productive capacities of LDCs and diversifying their economies and exports,” said Commonwealth Secretary-General Patricia Scotland.
Plastics Pollution Dialogue finalizes text for MC13 Ministerial Statement (WTO)
At a meeting of the Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade on 26 January, the 76 co-sponsors of the talks celebrated the work completed over the past year and reached agreement on the ministerial statement to be issued at the 13th Ministerial Conference (MC13) at the end of February. Participants welcomed the text as “well balanced” and said it will help to achieve “concrete, pragmatic and effective” outcomes at MC13.
Tackling the Plastics Pollution Crisis by Channeling Private Capital to Projects that Reduce Plastic Waste (World Bank)
E-Commerce Takes Centre Stage at World Trade Organization in Run-up to MC13 (IISD)
Trade-related aspects of e-commerce have been discussed at the World Trade Organization (WTO) since 1998, as mandated by MC2’s Declaration on Global Electronic Commerce. The declaration called for a Work Program on Electronic Commerce and for a provisional moratorium on customs duties on electronic transmissions. This moratorium has been extended for around 2 years at every ministerial since then.
Work has indeed ramped up. Eight dedicated discussions were held between January and November 2023, covering a range of development-relevant thematic matters. These include consumer protection, the digital divide, improving the participation of developing economies and least developed countries (LDCs) in e-commerce, regulatory and legal frameworks, customs duties on electronic transmission, digital trade facilitation and electronic transactions, digital industrialization, upskilling, and technology transfer. Members are also engaging by submitting more proposals or communications that recommend future agenda items, facilitate knowledge sharing, and support the thematic discussions.
Global Economy Approaches Soft Landing, but Risks Remain (IMF Blog)
The clouds are beginning to part. The global economy begins the final descent toward a soft landing, with inflation declining steadily and growth holding up. But the pace of expansion remains slow, and turbulence may lie ahead. Global activity proved resilient in the second half of last year, as demand and supply factors supported major economies. On the demand side, stronger private and government spending sustained activity, despite tight monetary conditions. On the supply side, increased labor force participation, mended supply chains and cheaper energy and commodity prices helped, despite renewed geopolitical uncertainties.
This resilience will carry over. Global growth under our baseline forecast will steady at 3.1 percent this year, a 0.2 percentage point upgrade from our October projections, before edging up to 3.2 percent next year. Important divergences remain.
New commodity and supply disruptions could occur, following renewed geopolitical tensions, especially in the Middle East. Shipping costs between Asia and Europe have increased markedly, as Red Sea attacks reroute cargoes around Africa. While disruptions remain limited so far, the situation remains volatile.
Reforms that ease the most binding constraints to economic activity, such as governance, business regulation and external sector reform, can help unleash latent productivity gains, our research shows. Stronger growth could also come from limiting geoeconomic fragmentation by, for instance, removing the trade barriers that are impeding trade flows between different geopolitical blocs, including in low-carbon technology products that are crucially needed by emerging and developing countries.
World Economic Outlook Update, January 2024
Present UNSC does not reflect today’s reality: UNGA President (The Hindu)
U.N. General Assembly President Dennis Francis on January 24 said the existing composition of the U.N. Security Council does not reflect the contemporary geopolitical reality of the world and it needs reform. The Security Council has progressively been unable to take decisions in recent years to strengthen global peace and security, he said at a media briefing shortly after holding talks with External Affairs Minister S. Jaishankar.
The U.N. General Assembly president also hailed India for its role in making the African Union a full member of the G20. “There is no doubt in anyone’s mind that India’s outreach to Africa particularly with regard to its facilitating the membership of the African Union in the G20 demonstrates India’s leadership in the international arena,” Francis said.
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President to officiate launch of SA’s first shipment under AfCFTA (SAnews)
President Cyril Ramaphosa will on Wednesday officiate the launch of South Africa’s first shipment and preferential trading under the African Continental Free Trade Area (AfCFTA). The launch ceremony will take place at the Port of Durban and occurs on the margins of the 13th AfCFTA Council of Ministers meeting to be held at the Inkosi Albert Luthuli International Convention Centre from 30-31 January 2024. South Africa is the first among the four Southern African Customs Union (SACU) countries to practically realise the AfCFTA agreement.
The 37th African Union Ordinary Session of the Assembly of Heads of State and Government will, at its annual convention next month, take stock of the progress made thus far in the implementation of the AfCFTA. The Department of Trade, Industry and Competition said the launch ceremony will be a historic step and an instrumental tool in generating meaningful trade on the African continent through the shipment of made-in-South Africa products. “The main message being sent to Africa and the rest of the world through this event is to illustrate that companies can trade under the AfCFTA procedures to expand their markets within a legally binding framework,” the department said.
Collaboration essential for South African exporters to overcome EU carbon border tax (Engineering News)
As the European Union’s (EU’s) Carbon Border Adjustment Mechanism (CBAM) became effective from October 1 last year, South Africa remains highly vulnerable and will likely pay high amounts of carbon tax. The first CBAM report for the fourth quarter of 2023 will be published on January 31.
The transition period for CBAM has been set over two years ending in December 2025, following which South African exporters are expected to report accurate greenhouse-gas embedded emissions data to EU importers. Once the transition period ends, exporting firms will have to buy CBAM certificates by paying a carbon tax at the EU border. South Africa is highly dependent on the EU market, with the region accounting for 21% of all South Africa’s exports in 2022.
Import permits for key products scrapped (The Herald)
The Government has scrapped import permits and licenses for fertiliser and other key products, including confectioneries and construction materials. Statutory Instrument 6 of 2024, published in the Government Gazette, removed import permit requirements for several products, including data and network cables, floor polish, batteries, candles, tiles, adhesives and sealants, detergents, biscuits and fertilisers.
Import permits and licenses can often lead to higher prices for consumers. By removing these requirements, this could reduce prices for the listed products, analysts say. It was not immediately clear why the permits and licences had been removed.
“The agricultural, construction, and ICT sectors are all important drivers of economic growth. By making it easier for businesses to import the goods and services they need, the Government could help to boost these sectors and create jobs,” Carlos Tadya, a Harare-based economist told The Herald Finance & Business. While supportive of the overall initiative, some critics cautioned that the removal of permits and licenses could inadvertently increase competition from imported goods, given the existing presence of small businesses in certain product categories.
Kenya oil facilities face huge losses as Uganda shifts to Dar port (The East African)
Kenya has lost $200 million worth of exports to Uganda, its largest regional market, since October 2023, new data shows. And experts warn that it will lose more going forward, as the fight over petroleum products imports escalates, with major oil infrastructure at the risk of underuse.
Last week, Uganda announced that it was moving to Tanzania for oil imports after reaching a dead end in the quest to have its national oil marketer, Uganda National Oil company (Unoc), registered in Kenya to facilitate imports via the Mombasa port. Ugandan Energy Minister of Energy Ruth Nankabirwa told reporters in Kampala on Tuesday that Kenya’s continuous frustration of the Unoc deal is threatening Uganda’s fuel supply stability.
KCB signs deal to promote intra-Africa trade (New Vision)
Kenya Commercial Bank (KCB), which now operates in many African countries including Uganda, has signed an Africa-wide deal to facilitate settlements of cross-border monetary transactions, which will greatly boost trade between African countries. “The agreement brings on board payments and collecting expertise spanning more than 120 years,” said KCG Group CEO Paul Russo. “Rest assured to have speed, affordability, reliability and boost in Africa to Africa trade.”
The agreement was signed early this week with the Pan-African Payment and Settlement System (PAPSS) in Accra in Ghana during the Afrexim Bank Annual Meeting. This makes KCB the pioneer institution in East Africa to bring on board the financial market infrastructure that provides a secure and efficient channel for processing cross-border payments.
Uganda Airlines posts 62% growth in income (Monitor)
“The major cost drivers included aviation fuel, crew allowances, crew salaries and pilot training, and depreciation [of the company’s assets],” Auditor General John Muwanga wrote, listing Uganda Airline among 15 public entities with a declining operating margin from the previous year, which makes it difficult for such corporations to pay their operating and debt expenses. However, details contained in the Auditor General’s report for the period ended June 2023 indicated that the Shs230.4b was at least 46.8 percent lower than the Shs491.8b Uganda Airlines, which trades as Uganda National Airlines Company Limited, had planned to earn in the period.
AfDB introduces new model to help turn Ugandan economy (The Independent Uganda)
Uganda has been selected among five African countries to be supported by the African Development Bank to develop circular economy policies. A circular economy is an economic system based on the reuse and regeneration of products to continue production sustainably, minimizing waste, and increasing the life cycle of products. It differs from the prevailing linear economic model, in which products are manufactured, used up, and disposed of or discarded.
It has been found that when applied as an industrialization strategy, the circular economy has the potential to decouple resource use from economic development to help address key African challenges such as climate change, food security, water scarcity, and natural resources management.
Ghana: Transforming a Crisis into a Journey Toward Prosperity (IMF)
When Ghana requested an IMF-supported program in July 2022, the country was dealing with an economic and financial crisis that was the outcome of preexisting vulnerabilities and substantial external shocks. The authorities have since made compelling progress under the program that was approved by the IMF Board in May 2023.
Two years ago, elevated fiscal deficits and public debt levels, together with the combined effects of the COVID-19 pandemic, Russia’s war in Ukraine, and global monetary policy tightening, triggered a drop in international investor confidence in Ghana, resulting in a loss of international market access. This generated increasing pressures on domestic financing, with the government turning to monetary financing by the central bank, which fed into declining international reserves, currency depreciation, and accelerating inflation.
Now, the Ghanaian economy is showing signs of stabilization thanks to the authorities’ steadfast implementation of its IMF-supported economic program, which aims to restore macroeconomic stability, secure debt sustainability, and lay the foundations for higher and more inclusive growth.
Zambia Validates Blue Economy Strategy (COMESA)
The Government of Zambia has developed and validated the national blue economy strategy which is expected to help increase the prospects for achieving sustainable, environmentally friendly and socially inclusive economic growth. The strategy will guide the nation in advancing knowledge on biotechnology, environmental sustainability and ecosystem services. Other areas targeted include growth of inland water transport industry, management of fishing industry and better use of underwater mineral resources. This was revealed in Lusaka on 16 January 2024 during the validation meeting held at COMESA Secretariat.
Speaking at the opening of the meeting, Director of Agriculture and Industry at COMESA Secretariat Mrs Providence Mavubi commended the country for developing the strategy which she described is an important tool and mechanism for attaining sustainable economic growth. “The validation of the national blue economy strategy hastens the state of play of regional integration and will help development of ways and means of strengthening and deepening mutually beneficial cooperation in the area of blue economy for the benefit of Zambian citizens in particular and COMESA in general.”
UAE firm to develop $5 billion Uganda oil refinery (The Independent Uganda)
Africa Global Logistics deepens presence in Kenya with Naivasha SEZ (The Africa Logistics)
Ethiopia’s Quest for Access to Sea Very Essential to its Survival, Safeguarding Nat’l Interest: MPs (ENA)
Will developing countries benefit from the renewables boom? (UN News)
The technology already exists to bring clean energy to rural communities in developing countries that have previously never had access to any kind of electricity. However, as Moritz Brauchle, managing director of Africa GreenTec Madagascar, explains, these countries will continue to need support to turn their backs on fossil fuels.
Africa GreenTec is a social enterprise which provides sustainable energy solutions to some of the 600 million people in sub-Saharan Africa currently living without any access to electricity. With backing from the UN, the company installs minigrids – stand-alone networks run on renewable energy – to supply people in a small community or town with clean electricity.
China investors eye Africa’s Mauritius as it goes green, tries to sweeten deals (South China Morning Post)
“We want to really encourage investors who are in that particular [green energy] space on how they can come invest in those areas,” Seeruttun told the Post at last week’s Asian Financial Forum in Hong Kong. “Solar energy is one thing that we are promoting, and of course, we need to see – [for] promoters who are interested – how we can facilitate their entry into the market.” The government has said that goal will help it honour an international commitment to help reduce greenhouse gas emissions.
Meanwhile, investors from China are also looking at Mauritius as a gateway to the African market, Seeruttun added. “In the renewable-energy sector, China has gained both a technological edge and a cost advantage, which allow them to export products and technical expertise with little competition from other countries,” Xu said.
Cameroon National Development Strategy receives Afreximbank backing (African Review)
The African Export-Import bank (Afreximbank) has agreed a EU€200mn (approx. US$217mn) financing facility to help the Government of Cameroon implement its National Development Strategy The Government initiative represents a vision for 2030 to establish the country as an emerging country, democratic and united in its diversity. It targets carrying out structural transformation of the economy to promote endogenous, inclusive development while preserving opportunities for future generations.
The main objectives identified by the Government include establishing conditions favourable to economic growth; improving the living conditions of the population; strengthening climate change adaption; enhancing on governance to enhance policy performance towards achieving development goals.
Under the terms of the agreement with Afreximbank, the Government of Cameroon will deploy the facility to implement trade-enabling infrastructure projects that are approved in the country’s financing plan.
TradeMark Africa’s $2m grant to fight trade barriers (The East African)
The Eastern Africa Grain Council (EAGC) has received a $2 million grant from TradeMark Africa to eliminate trade barriers for exporters in three East African countries. The grant is part of a $75 million five-year partnership from the US Agency for International Development’s Economic Recovery and Reform Activity programme delivered by TradeMark Africa but funded by Feed the Future.
“This facility with EAGC will directly tackle these challenges, removing trade impediments and building grain exporters’ capacity in Kenya, Tanzania, and Uganda across export value chains such as maize, beans, millet, sorghum, and rice,” said TradeMark in a statement. The partnership seeks to tap into food grain production and export while creating jobs, especially for women and the youth.
Some of the challenges facing grain exporters are the ability to meet and comply with international standards, low production rates, poor harvest management and climatic factors. “These challenges contribute to the low competitiveness of these staples in regional markets, reduced cross-border trade, production deficits, and postharvest losses that threaten the region’s food security,” added TradeMark. EAGC plans to support over 80 small and medium-sized enterprises to successfully meet sanitary and phytosanitary measures - which regulate the health of animals and plants that are traded; and standards quality requirements that govern quality, health and safety systems, and environmental conservation. It also plans to establish an information hub that will act as a resource centre.
External shocks dim East Africa economic growth prospects (The East African)
The International Monetary Fund (IMF) projects that the East African economy will grow at 5.6 percent, but the region’s business lobby says external and domestic shocks could impact the positive outlook. The East African Business Council (EABC) cites the global economic slowdown, rising commodity prices, high inflation, liquidity, the war in Ukraine, international trade policies, tightening of global financial conditions, and exchange rate depreciation.
“Global dynamics do play a part in our economic growth. When you start seeing double-digit borrowing in Kenya, Tanzania and Uganda, a high cost of liquidity and slow intra-EAC trade, the economy is unlikely to grow as fast as predicted,” said Jas Bedi, EABC vice-chairperson and chairperson of the
The Southern African Development Community (SADC) Secretariat, through its Climate Services Centre (CSC) is convening the 28th Southern African Regional Climate Outlook Forum (SARCOF-28) in Maputo, Mozambique between 29-31 January 2024, to review the impacts of the October-November and December (OND) 2023 rainfall season’s predictions, issue the seasonal outlook for February-March-April (FMA) and March-April-May (MAM) 2024 together with advancing the establishment of Regional Sectoral User Interface Products (RSUIPs).
SARCOF-28 was to review and discuss the impacts of the season’s outlook for February-March-April (FMA) and March-April-May (MAM) 2024 on each sector based on the consensus outlook which will be generated during the pre-SARCOF event of Climate Experts held in Maputo, Mozambique from 22-28 January 2024.
The Climate Experts Meeting (CEM) which is aimed at building capacity of Climate Experts from National Meteorological and Hydrological Services (NMHSs) of the SADC Region would also discuss the status of global climate drivers and their likely impacts on the climate sensitive sectors within the SADC Region. The CEM will generate a Regional seasonal climate outlook for the overlapping three-monthly subseasons for the second half of the rainy season which will form the bedrock of deliberations during SARCOF-28.
ECOWAS Communique on Burkina Faso, Mali & Niger (ECOWAS)
The attention of the Commission of the Economic Community of West African States (ECOWAS Commission) has been drawn to a statement broadcast on the National Televisions of Mali and Niger announcing the decision of Burkina Faso, Mali and Niger to withdraw from ECOWAS. The ECOWAS Commission is yet to receive any direct formal notification from the three Member States about their intention to withdraw from the Community .
The ECOWAS Commission, as directed by the Authority of Heads of State and Government, has been working assiduously with these countries for the restoration of constitutional order. Burkina Faso, Niger, and Mali remain important members of the Community and the Authority remains committed to finding a negotiated solution to the political impasse. The ECOWAS Commission remains seized with the development and shall make further pronouncements as the situation evolves.
APD 2024: PAPSS to roll out African currency trading platform, says Oramah (Asaase Radio)
The Pan-African Payment and Settlement System (PAPSS) will in April this year roll out an African currency trading platform, Professor Benedict Okey Oramah, the president and chairman of the board of directors of the African Export-Import Bank (Afreximbank), has said. PAPSS, which was launched to make cross-border transactions seamless, has brought over 25 commercial banks on to its system since its launch by the African Union and Afreximbank in 2022.
Speaking at the just-ended Africa Prosperity Dialogues in Peduase on Saturday (27 January), Oramah said: “A continent with over 42 different currencies and payment systems cannot trade among itself. That’s why we have collaborated with the AfCFTA and the AU Commission to develop a common payment platform… in order to create a single payment rail for the continent.”
Governments, business leaders pledge value addition for AfCFTA’s success (Ghana News Agency)
African governments and business leaders have made a pledge with a sense of urgency to ensure value addition to raw materials and natural resources for successful intra-continental trade. This commitment was made at the end of the second edition of the Africa Prosperity Dialogues in Aburi in the Eastern Region of Ghana. The three-day summit was organised by the Africa Prosperity Network and the African Continental Free Trade Area (AfCFTA) Secretariat, under the auspices of the government of Ghana. The event ended with the adoption of thirteen strategic policy (Peduase Compact), to be presented by President Nana Addo Dankwa Akufo-Addo to the African Union (AU) for ratification and implementation for AfCFTA’s success.
“Trade between African regions is highly concentrated around primary minerals,” Mr Mohammed Irfaan Ali, Guyana, noted, all called for concerted effort to correct it. “The opportunities are there for a massive increase, but we have to fix the trade barriers, transport and logistics and the rules among ourselves that will stimulate trade among ourselves,” he said.
Ghana calls for adherence to African Mining Vision (Ghana News Agency)
Ghana has drawn the attention of African countries to their obligations under the African Mining Vision, urging renewed commitments to harness the continent’s mineral potential. The Vision enjoins countries on the continent to collaborate and use the exploitation of mineral resources to underpin broad-based sustainable growth and economic development.
“We cannot talk about Africa’s prosperity without talking about her natural resources, which for years have been the fulcrum around which most of our economies revolve,” Mr Samuel Jinapor, Minister of Lands and Natural Resources, noted. He was speaking at a discussion on the topic: “Extracting Greater Value from our Minerals – The Case of Gold and Lithium in Ghana,” at the Africa Prosperity Dialogues (APD) 2024, being held at the Peduase Presidential Lodge, Eastern Region.
Intra-Africa air connectivity up but headwinds remain (Southern & East African Tourism Update)
Intra-Africa air connectivity is making headway, with local aviation experts expressing cautious optimism about the growth prospects for the southern African region, noting that several barriers to improved air access still need to be addressed. This comes after the Centre for Aviation (CAPA) highlighted in its ‘Charting Trends’ report earlier this month that intra-Africa air connectivity had exceeded the two million weekly internal seats figure for the week commencing December 18. This is the sixth time that this landmark figure has been achieved. Previously, there was a consecutive five-week period between the weeks of December 9 and January 6, when a record of 2.04 million was achieved in the week commencing December 16, 2019 (pre-COVID).
“December is a peak travel month in the intra-Africa calendar, and capacity levels will decline over the remainder of Q1 2024, following historical trends. It may be premature to start looking ahead to the end of 2024, but there is potential for 2024 to break the record for intra-Africa connectivity,” the report stated.
The African Development Bank Group and the Consortium of International Agricultural Research Centres (CGIAR) committed on Thursday to strengthen their collaboration to increase food production and provide better nutrition for Africa’s growing population. With 65% of global uncultivated arable land, the African Development Bank believes that the continent can feed itself and the rest of the world.
CGIAR centres are located across African countries and focus on enhancing food and nutrition security, reducing poverty, and improving natural resources and ecosystem services. They are critical to achieving food security on the continent, just as their counterparts in Southeast Asia and Latin America were also key to accelerating agricultural growth and food self-sufficiency.
More trade, bilateral relations between Africa, Caribbean needed for sustainable future - Pres. Ali (News Room Guyana)
President Dr Irfaan Ali on Saturday encouraged more trade and bilateral relations between countries in the African continent and the Caribbean region as part of efforts to progressively develop a sustainable future. The Head-of-State delivered the keynote address at the Presidential Dialogues session, hours after he was bestowed with the Global Africa Leadership Award at the Africa Prosperity Champions Awards and Presidential Gala Dinner on Friday evening in Ghana.
President Dr Irfaan Ali receives the prestigious Global Africa Leadership Award in Accra, Ghana. President Ali was honored for his transformational leadership in Guyana”These are things that we need to fix, the opportunities are there for massive increases in a trade between Africa and the Caribbean…We have to fix the trade barriers, we have to fix the issues of transport and logistics. We have to fix the rules between ourselves that will help stimulate trade and advance trade between our countries,” President Ali said.
On the sidelines of last week’s Italy-Africa Summit, the European Commission (EC) and the African Development Bank Group have formalised a new Financial Framework Partnership Agreement to boost investments in infrastructure projects in Africa. The European Union’s contribution to co-finance operations with the African Development Bank has significantly increased over the last two years, now amounting to €972 million in blending operations and guarantees. This figure will further increase after the signing of the new Financial Framework Partnership Agreement.
This landmark agreement renews the partnership between the two organisations. It opens a wide range of opportunities for both organisations to deliver new joint financing for infrastructure projects. For the EU, this would be in keeping with the priorities of the Global Gateway, its strategy to deliver sustainable and trusted connections with partner countries. Between 2021 and 2027, through the Africa-EU Global Gateway Investment Package, the EU will support the African continent with €150 billion worth of investments.
G77 summit: UNCTAD chief highlights systemic inequalities hindering developing countries (UNCTAD)
UNCTAD Secretary-General Rebeca Grynspan underscored on 21 January at the Group of 77 and China’s Third South Summit the systemic inequalities that hinder developing countries’ efforts to achieve sustainable development. In her statement to the summit in Kampala, Uganda, Ms. Grynspan highlighted that despite now accounting for 86% of the world population, about 58% of global economic output, in terms of purchasing power parity, and almost half of world merchandise exports, these nations remain underrepresented in key international institutions.
The UNCTAD chief said systemic inequalities materialized in the uneven distribution of resources like vaccines and finance during the COVID-19 pandemic, which hindered developing countries’ responses to the crisis. Similarly, these nations are least responsible for climate change yet bear the heaviest costs.
Members make progress on trade and environmental sustainability outcomes for MC13 (WTO)
WTO members taking part in the Trade and Environmental Sustainability Structured Discussions (TESSD) on 25 January considered further refinements to the group’s package of outcomes to be launched at the 13th Ministerial Conference (MC13) next month. The package reflects the progress made since MC12 and charts the way forward towards identifying possible concrete actions for trade policy to support environmental sustainability. Members also welcomed Peru as the newest participant in TESSD, which now includes 76 WTO members as co-sponsors.
Members updated on progress in dispute settlement reform talks in run-up to MC13 (WTO)
WTO members were briefed on the latest developments in ongoing informal discussions on dispute settlement reform and work plans for talks in the coming weeks at a meeting of the Dispute Settlement Body (DSB) on 26 January. Members were mandated at the WTO’s 12th Ministerial Conference to conduct discussions, with the view to having a fully functioning dispute settlement system accessible to all members by 2024.
Cabo Verde formally accepts Agreement on Fisheries Subsidies (WTO)
Joint World Bank, EU, UN Report Assesses Damages Caused by Catastrophic Flooding in Libya (World Bank)
How Distrust of Government by Marginalized People Fuels Conflict in Africa (IMF)
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Whiskey dispute hits new EU-Kenya trade pact (EUobserver)
Kenya faces s dispute with the EU on whiskey imports just weeks after its tortuously agreed trade pact with Brussels came operationally into effect. Even though the trade pact has not officially been ratified by the EU, Kenya is already breaking its terms by applying higher tariffs on certain products in order not to breach the East African Community’s (EAC) Common External Tariff.
Ghana: 2023 Article IV Consultation (IMF)
Large external shocks in recent years exacerbated pre-existing fiscal and debt vulnerabilities, resulting in an acute crisis in 2022. In response, the authorities have adjusted macroeconomic policies, made significant progress on a comprehensive debt restructuring, and launched wide-ranging reforms. These efforts are bearing fruit, and signs of economic stabilization are emerging. Growth in 2023 has proven resilient, inflation has declined, and the fiscal and external positions have improved. Nonetheless, fully and durably restoring macroeconomic stability and debt sustainability and fostering a sustainable increase in economic growth and poverty reduction will require steadfast policy and reform implementation.
Ghana eyes auto assembly plant in Tanzania (The Citizen)
Ghana is considering establishing an automobile assembly plant in Tanzania in a move to strengthen trade with East Africa. The plans under the African Continental Free Trade Area (AfCFTA) agreement are to convince Kantanka Automobile Company Limited to set up the car assembly plant, Ghana’s Ministry of Trade and Industry chief commercial officer, Mr Kofi Addo, told The Citizen yesterday.
“The good thing is that Kantaka is a Ghanaian assembly plant that makes cars or vehicles based on the African environment. They understand the African interest, and that is why it is good for us to talk and engage them to be here in Tanzania,” said Mr Addo.
Mr Addo was speaking during the official opening of a five-day Ghana Expo 2024 themed “Acceleration of Implementation of the AfCFTA Enhancing Ghana-Tanzania Relations.”
Ghana to grant visa-free entry to all Africans by 2024, President Akufo-Addo announces (Yabiladi)
President Nana Addo Dankwa Akufo-Addo of Ghana unveiled plans to abolish visa requirements for all African visitors by the end of 2024. Unveiling the policy at the Africa Prosperity Dialogue 2024 in Ghana’s Eastern Region, Akufo-Addo linked the move to the goals of the African Continental Free Trade Area (AfCFTA).
“The Government of Ghana is committed to ensuring visa-free entry for all Africans traveling to our country,” declared Akufo-Addo. He emphasized the need for similar policies across the continent to facilitate the free movement of people, goods, and services, ultimately leveraging trade as a driver of economic transformation in Africa.
Beyond visa liberalization, Akufo-Addo also championed a more inclusive AfCFTA implementation, advocating for measures that benefit various social strata in Africa.
The Board of Directors of the African Development Bank Group (AfDB Group) met on 17 January 2024 in Abidjan and approved the 2023-2028 Country Strategy Paper (CSP) for the Democratic Republic of Congo (DRC). The CSP aims to reduce fragility through inclusive and sustainable structural transformation driven by industrialization and job creation for women and men.
To achieve these goals, the new CSP identifies two priorities. The first is the installation of sustainable infrastructure to support agricultural and industrial value chains, and the second is to improve the quality of human capital and the business climate to support social inclusion and private sector growth in the DRC.
EAC Health Ministers adopt a Regional Policy Framework for the supply and production of antibiotics (EAC)
EAC Ministers in charge of Health have endorsed a regional policy framework aimed at promoting antibiotics production and a collaborative mechanism for information exchange in the production and supply of antibiotics across the region.
The 44th EAC Ordinary Council of Ministers endorsed this framework following multistakeholder consultations at the national and regional level as well as sensitization meetings with senior officials including Permanent Secretaries of Ministries responsible for health and industry. The project engaged over 300 stakeholders from both public and private sectors across the region.
This significant development came to light during a closeout meeting of the EAC-UNCTAD project, “Investment Incentives for Local Production of Essential Antibiotics in East Africa,” held in Nairobi in December 2023. The meeting, attended by representatives from the EAC and its Partner States, UNCTAD, GIZ, and GFA Consulting Group, provided a platform to unveil the Council’s approval of these essential policy documents.
SADC launches the Regional Customs-Business Forum (SADC)
The Southern African Development Community (SADC) Secretariat officially launched the Regional Customs to Business Forum (RCBF) in Johannesburg, South Africa on 19th January 2024.The SADC Regional Customs to Business Forum is a significant vehicle of the SADC region that seeks to foster trade partnership based on mutual trust and inclusive participation of the private sector in policy formulation and application, implementation of innovative trade facilitation measures and harnessing of collective solutions to the ever-increasing challenges of managing the cross-border supply chain.
In his official address at the launch, Mr. Rakokoana Makoa, Commissioner Client Services of the Revenue Services Lesotho, emphasised the need for the Forum to provide conducive and constructive dialogue between the private sector and customs in furtherance of trade facilitation in the SADC region.
The key objective of the RCBF is to harness policy advocacy opportunities for Customs to Business (C2B) that expedite implementation of regional trade agreements and trade facilitation initiatives which support smooth movement of goods across borders within the SADC Region. The Forum is mandated to inform, advise, identify, discuss, and present options for addressing identified impediments to the flow of goods across borders in the SADC Region.
Delay on tariff offers to affect AfCFTA implementation (The Citizen)
Full implementation of the African Continental Free Trade Area (AfCFTA) could be delayed further due to the failure of some countries to act decisively on its key pillars. Several state parties to the agreement are yet to finalise matters about the tariff offers and rules of origin. Others have been reluctant to swiftly work on equally important dispute resolution issues, intellectual property rights and services.
“To enable meaningful and real trade, tariffs need to be tackled between the partner states,” said Ms Elizabeth Thande, the chairperson of the East African Women-in-Business Platform (EAWiBP). She was speaking in Nairobi during a capacity-building workshop for women entrepreneurs from the East African Community (EAC) region. AfCFTA, which came into force in January 2021, she said, provides for reduced and/or elimination of trade barriers, both tariff and non-tariff.
African leaders gather in Durban to highlight AfCFTA benefits (Freight News)
The South African government and the African Continental Free Trade Agreement (AfCFTA) Secretariat will host the 13th AfCFTA Council of Ministers meeting in Durban next week. The opening ceremony of the AfCFTA Council of Ministers (COM) Responsible for Trade Meeting will take place on Tuesday, followed by South Africa’s launch to commence Preferential trade under the AfCFTA Guided Trade Initiative (GTI).
Participants will include secretary-general of African Continental Free Trade Area (AfCFTA) Secretariat, Wamkele Mene, Minister of Trade, Industry and Competition of South Africa, Ebrahim Patel, as well as ministers responsible for trade, the diplomatic corps, heads of businesses and media from across the continent. The launch ceremony will be a historic step and an instrumental tool in generating meaningful trade on the African continent through the shipment of South African products to AfCFTA states participating in the GTI such as Ghana, Egypt, Rwanda and Tunisia.
Unlocking opportunities: How female entrepreneurs can leverage on AfCFTA (The Business & Financial Times)
In Africa, it is estimated that small and medium-sized enterprises (MSMEs) make up approximately 90% of all businesses and contribute to over two-thirds of employment opportunities. These enterprises are also becoming hubs of innovation. This upward trajectory underscores the vast potential of MSMEs to drive Africa’s socio-economic growth and actualize the goals of the Africa Continental Free Trade Area (AfCFTA). Despite their significant contributions to the continent’s development, MSMEs, especially those led by women, still face challenges when it comes to accessing international markets and distribution channels.
It is imperative to unlock the transformative potential of women and youth-led MSMEs by linking them with the opportunities presented by the unified African Market, facilitated by the free flow of people, goods, services, and investments across borders. By empowering these enterprises with improved access to markets, financing, and technology, we can enable them to thrive and make substantial contributions to Africa’s transformation.
The Red Sea shipping crisis is having a ‘dramatic’ impact, warns logistics chief (UN News)
According to Jan Hoffmann, Chief of Trade Logistics at UNCTAD, the attacks are not only adding to geopolitical tensions but also raising costs and leading to increased greenhouse gases (GHG) emissions. “Maritime transport is really the lifeline of global trade,” he said, speaking to journalists at UN Headquarters in New York via video link from Geneva. “These disruptions underline their vulnerability to geopolitics, tensions, and climate changes.”
Amid conflict and climate risks, FAO highlights crucial role of AMIS in global food market stability (FAO)
In the face of escalating conflicts, economic slowdowns and downturns, and the growing climate crisis, the Agricultural Market Information System (AMIS) plays a crucial role in enhancing transparency and policy coordination in international food markets, Maximo Torero, Chief Economist of the Food and Agriculture Organization of the United Nations (FAO), has said.
Speaking at an expert panel at the Global Forum for Food and Agriculture (GFFA) 2024 in Berlin, he stressed how AMIS has helped to prevent unexpected price hikes and strengthen global food security.
AMIS was launched in 2011 by the G20 Ministers of Agriculture following the global food price hikes in 2007/08 and 2010. The information system, composed of G20 members plus Spain and eight additional major exporting and importing countries of agricultural commodities, assesses global food supplies (focusing on wheat, maize, rice and soybeans) and provides a platform to coordinate policy action in times of market uncertainty. Hosted by FAO, AMIS involves nine international organizations and aims to address the inherent risks and uncertainties within agrifood systems.
Harnessing Intellectual Property Rights for Innovation, Development and Economic Transformation in Least Developed Countries (The Commonwealth)
Innovative activity in Least Developed Countries (LDCs), as proxied by data on the protection of various forms of intellectual property rights (IPRs), is limited. While applications for intellectual property (IP) protection have generally increased in LDCs in recent years, they remain very low compared with in developed countries and the global average. Even applications for trademarks, the single most widely used form of IP protection in LDCs fall far below the annual averages globally.
To address these difficulties and deploy IPRs more effectively to stimulate innovation and economic transformation, LDCs need to strengthen their domestic IP strategies, frameworks and institutional structures in ways that align with their local needs and conditions and levels of development and economic structures.
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Sales of NEVs on the rise in South Africa (Engineering News)
Amid a global emphasis on green energy and the subsequent global energy transition, total sales of new energy vehicles (NEVs) in South Africa increased by 65% year-on-year in 2023, with hybrid vehicles making up most of these sales. Toyota South Africa Motors (TSAM) witnessed a 22% year-on-year increase in the sale of NEVs.
“If we keep going in this trajectory, it’s going to be interesting to see what the next five years will look like,” TSAM president and CEO Andrew Kirby said at this year’s State of the Motor Industry event held in Kyalami, Gauteng, on January 25. TSAM senior sales and marketing VP Leon Theron pointed out that 42% of the Lexus range consists of NEVs.
“We’ve done a lot in the last three years to really increase our footprint within the NEV space,” expressed Theron. Theron described last year as a “phenomenally successful year” for TSAM, noting that the company also achieved its highest market share of 26.8%.
Competitiveness concerns could scupper once-in-century potential for South Africa to reindustrialise (Engineering News)
The global and local renewable energy transition is presenting industries, and South Africa, with a once-in-a-century growth trajectory to provide products and components into the value chains of renewable energy and battery energy storage systems (BESSs). During the second quarter of 2023, more than $1.7-billion worth of solar panels, inverters and lithium-ion battery systems were imported into South Africa, and this number excludes other components and parts.
Further, the National Energy Regulator of South Africa registered 4.5 GW of private energy projects in 2023, economic research nonprofit Trade and Industrial Policy Strategies senior economist and South African Renewable Energy Masterplan facilitator Gaylor Montmasson-Clair pointed out during a media discussion on January 24.
The global energy transition, which is under way, presents a once-in-a-lifetime opportunity to reindustrialise and South Africa should take note of that, concurred manufacturing competitiveness consultancy BMA Analysts battery energy storage research and sector lead Mbongeni Ndlovu.
Dedicated freight lanes and restricted truck operating hours mooted in draft plan to shift cargo back to rail (Engineering News)
The Department of Transport (DoT) is canvasing a series of interventions aimed at attracting freight back to South Africa’s struggling rail system from road, which has emerged as the country’s freight backbone following Transnet Freight Rail’s (TFR’s) precipitous decline in recent years. Notwithstanding a long-standing road-to-rail policy, the DoT reports that 87% of freight is currently being moved by truck, with volumes moved by TFR having declined sharply from 226-million tons in 2017/18 to only 149.5-million tons in 2022/23.
This calamitous collapse led President Cyril Ramaphosa to form the National Logistics Crisis Committee in 2023, as well as to the development of a new Freight Logistics Roadmap, which was approved by Cabinet late last year. The roadmap places emphasis on the introduction of private sector participation in both the port container terminals and the freight rail network; moves that would be facilitated by a vertical separation of port and rail infrastructure management of terminal and rail operations respectively.
A subcomponent of the roadmap is the Freight Road to Rail Migration Plan, the draft contents of which were shared by acting chief director Mihlali Gqada during a colloquium, hosted ahead of the February 2 deadline for public comments. The plan describes the country’s current freight logistics trajectory as “unsustainable” and notes that South Africa’s high logistics costs are placing importers and exporters at a competitive disadvantage. With logistics costs estimated at 11.3% of gross domestic product (GDP), South African logistics costs are materially higher than the global average of 7% of GDP, while the transport component of these costs is also high at about 55%.
Duty-free car import regulations tightened (The Herald)
Updated regulations for duty-free vehicle imports by civil servants, public health workers, and junior and specialist doctors were gazetted at the end of last month to ensure that State workers in the applicable grades can benefit, without loopholes. The scheme has been operating for some time and a lot of civil servants have benefited, but there have been some abuses and the updating of the regulations should close most of these.
The regulations are contained in Statutory Instrument 247 of 2023 gazetted on December 29 last year by Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube.
“A rebate of duty shall be granted in respect of one motor vehicle imported or taken out of bond by a serving public servant of Zimbabwe who is employed in the Civil Service and Service Commissions and who is not a senior civil servant issued with a condition of service motor vehicle and is not under any disciplinary proceedings, “The money to buy the car has to be from either a loan availed under the Transport Purchase Fund managed through CMED (Private) Limited or the serving public servant’s own resources. The car is solely for the private and business use of the serving public servant and not for commercial or trade purposes,” reads part of SI 247.
Three SADC members keen to join Zim-Moza Beira Corridor route (The Herald)
The Democratic Republic of Congo, Malawi and Zambia are keen to join Mozambique and Zimbabwe who have signed a memorandum of understanding over the Beira Corridor route. Zimbabwe will soon write to the SADC secretariat to state that the DRC, Malawi and Zambia have expressed interest to come on board.
The development comes after Zimbabwe and Mozambique agreed to refurbish and extend the 10km railway line that stretches from Machipanda to Mutare, linking their two systems, within the next three months. The Transport Ministers of the two countries recently confirmed the development during a tour of the Forbes and Machipanda border posts. Last Wednesday, Mozambique’s Transport and Communications Minister Mr Mateus Magala arrived in Zimbabwe to hold bilateral meetings on co-operation in transport and transport infrastructure with Zimbabwean Transport and Infrastructural Development Minister Felix Mhona.
In an interview, Transport and Infrastructural Development Permanent Secretary Engineer Joy Makumbe confirmed the interest of the three SADC member states to come on board for the upgrading of the transport corridor. “Our discussion mostly was on the Beira Corridor where Mozambique and Zimbabwe are signatories to that MoU. But the discussion was that we also incorporate DRC, Malawi and Zambia who have also expressed interest to be beneficiaries of that agreement.
To enhance political will and strengthen the capacity of Member States to apply the AU Guidelines for the Development of Regional Agricultural Value Chains (RAVCs) in Africa, the ECA has initiated a project on Strengthening Member State capacity to develop Regional Agricultural Value Chains to promote Diversification and Intra-African Trade. In partnership with the COMESA Secretariat, the project will promote regional value chains of two strategic commodities, maize, and dairy, in Zambia and Zimbabwe with a view to foster agro-processing.
Following a review of the policy, regulatory and institutional frameworks in Zambia and Zimbabwe, this week, COMESA and ECA are holding a series of workshops with key stakeholders to validate the report’s recommendation on strengthening maize and dairy value chains. The workshops are also aimed at reviewing the industrialization and export strategy for maize and dairy products in the two countries. In addition, key stakeholders are undergoing training in maize and dairy value chains to increase their capacities in mainstreaming regional value chain development in agricultural policies and strategies.
The Utilization of Trade Preferences by COMESA Member States (COMESA)
Governments are increasingly negotiating Free Trade Agreements (FTAs) and mega-regionals to create and expand market access for their economies. The African Continental Free Trade Area (AfCFTA) is the latest attempt in the region. Only recently, Governments have realized the importance of using utilization rates to monitor the effective use of FTAs by their firms.
The utilization of trade preferences is an instrument to measure how firms effectively use an FTA. As such, it is an essential tool that assists policymakers and administrations in establishing the effectiveness of trade agreements; and firms to realize the extent of the missed trade opportunities.
This study stems from a long-standing relationship between the Common Market for Eastern and Southern Africa (COMESA) and the United Nations Conference on Trade and Development (UNCTAD) Secretariat in trade and trade facilitation. It aims at shedding light on one important aspect of regional integration, namely, the effective use of the trade preferences provided by free trade agreements (FTAs) such as the COMESA FTA and other preferential trade arrangements (PTAs) granted by QUAD Developed countries such as AGOA, EBA, and GSP preferences.
Three Years After AfCFTA Ratification: Should Africans Still Rely On It? (Modern Diplomacy)
The main objective of the AfCFTA was to bring all African countries to the common market by eliminating customs duties and taxes on goods, allowing free movement to stimulate trade between member countries, building a free market economy, stimulating competition in the production through industries as well as the establishment of a customs community.
The World Economic Forum (WEF) mentions Africa, as the community with the lowest contribution to world trade, contributing only 2% where at the moment the total income of the continent is USD 3.4 Trillion, so the implementation of the agreement was expected to increase the income by 7% every year. According to the recommendations from the Economic Commission for Africa (ECA), agricultural production could be the main catalyst in stimulating the industrial sector hence boosting the African economy.
The production is expected to boost trade between partner countries from 18% (currently) to 52.3% by 2025 after removing customs duties and reducing non-tariff barriers for more than 60,000 approved products. This move is expected to grow the African economy to USD 29 trillion by 2050 and the growth is expected to lift more than 30 million people out of extreme poverty.
Leveraging AfCFTA’s foundations to a create new forum for inter-African cooperation (MyJoyOnline)
Oxford Business Group (OBG) and the Africa Prosperity Network (APN) are joining forces to spearhead the APN initiative to identify and address bottlenecks in manufacturing, adding value, and trading within the African continent. This strategic partnership signifies a commitment to shedding light on Africa’s economic landscape, particularly in Ghana and the context of the African Continental Free Trade Area (AfCFTA) headquarters being established in Accra.
The Memorandum of Understanding (MOU) between OBG and APN extends over three years, reflecting a dedicated effort to ensure that crucial voices from all sectors become an integral part of the ongoing conversation surrounding Africa’s prosperity. The central focus of this collaboration is to create awareness among stakeholders ranging from heads of state to corporate leaders within the continent. This initiative is primarily designed to foster understanding at various levels, offering a platform for interconnected dialogue not only among governments but also between heads of governments and private sector representatives.
The pivotal “Delivering Prosperity in Africa” conference, scheduled to take place in Accra from January 25 to 27, will mark the official launch of this endeavour. The conference will serve as a platform to bring together leaders from government and the private sector, facilitating discussions on critical issues related to manufacturing, value addition, and trade within Africa.
Second Africa Prosperity Dialogues take off in Aburi (Ghana News Agency)
The second edition of the Africa Prosperity Dialogues – a platform for discussing issues, forming formidable partnerships and committing to achieving the “Africa Beyond Aid” agenda envisioned by the African Union (AU) kicks off today at Aburi in the Eastern Region. The three-day event, which would be attended by some African heads of States and top business, political, thought leaders and development partners is on the theme: “Delivering prosperity in Africa: produce, add value, trade.”
Thematic areas for the 2024 Africa Prosperity Dialogues include agriculture and food sovereignty, natural resources and value addition, manufacturing, infrastructure and ICT, finance and investment, and transport and logistics. Mr Gabby Otchere-Darko, Founder/Executive Chairman, African Prosperity Network, has explained that the summit was aimed at changing the narrative and focusing on the prosperity of the continent.
Mr Silver Ojakol, Chief of Staff of the AfCFTA Secretariat, called for improved connection between business and political leaders to engender actions that would increase productivity, value addition, and intra-continental trade.
AfCFTA Secretariat set to establish protocol on digital trade this month, says Wamkele Mene (Asaase Radio)
The secretary general of the African Continental Free Trade Area (AfCFTA) Secretariat, has said the secretariat is set to establish a protocol on digital trade this month. Mene said the protocol on digital trade is aimed at supporting the African youth to thrive in the continent’s digital space.
Speaking at the opening of the Africa Prosperity Dialogues at the Peduase Presidential Lodge, Mene said, “… we have established a protocol on investments to protect not primarily foreign investors but to protect African investors… so we will conclude a protocol on women and youth in trade and also conclude the protocol on digital trade this month.
He added, “The protocol on digital trade positions us to harness the benefits of Africa’s digital economy for the inclusion of young Africans who are at the cutting edge of digital innovation and who require the regulatory support for them to thrive in the Africa digital market. Mene said over the last three years, the AfCFTA has recorded tremendous success in ensuring that “the vision of the founding fathers does indeed become a reality”.
He said, “As we speak, we have developed the AfCFTA tariff book which enables the private sector to determine with certainty the tariffs that apply to the products they want to export.” “… we also have the rules of origin manual for the very first time. As an African continent, we are able to apply Rules of Origin that are harmonized to enable an exporter from Kenya to export to Malawi with a great deal of certainty of the market that they are exporting to…
PAPSS adoption to support African e-commerce boom (ITWeb Africa)
PAPSS is the brainchild of Afreximbank, the continent’s trade financing institution. The adoption of the Pan African Payment Settlement System (PAPSS) is expected to boost the continent’s current e-commerce growth.PAPSS, which will launch in 2022 as a digital platform for facilitating cross-border payments in native African currencies while removing intermediaries and conversion fees, arrives at an exciting time for e-commerce.This is despite issues such as internet connectivity, delivery logistics, and cyber security.
Morris Macharia Musyoka, a notable software engineer and techpreneur, stated that tackling these and other financial difficulties, such as limited access to multi-currency payment platforms and extended settlement periods that impair cash flow, is critical for long-term success. “The PAPSS emerges as a solution, facilitating payment transactions across Africa without reliance on correspondent banks outside the continent,” added the official.”With over 10 countries and commercial banks adopting PAPSS, the e-commerce sector is poised for substantial growth, potentially challenging, arguably, global giants like Amazon.”
Djibouti, The Gambia, Ghana, Guinea, Kenya, Liberia, Nigeria, Sierra Leone, Zambia, and Zimbabwe have all implemented PAPSS through their central banks.
Africa’s resources must power continent’s development – AfCFTA Chief of Staff (Ghana News Agency)
Mr Silver Ojakol, Chief of Staff, African Continental Free Trade Area (AfCFTA) Secretariat has challenged business and political leaders to be intentional in utilising the Continent’s vast natural resources for development. He stated that for the past years, Africa’s resources had powered global development to the detriment of the continent and its people, and asked business and political leaders to change the narrative through AfCFTA.
“There is an urgent need for us [Africa] to use our vast natural resources and the demographic advantage for industrialisation, improved infrastructure and energy solutions that will enhance and reduce production cost,” he said.
The AfCFTA Chief of Staff expressed worry about a comment by Mr Ruchir Sharma, Chair of Rockefeller International, who said: “The biggest problem for global growth is Africa, now home to 1.5 billion people.” Rather, Mr Ojakol said: “Industrialisation in the world is driven by the minerals that are leaving the continent – cocoa, coffee, gold, copper, timber, bauxite, iron and manganese… If we stop our raw materials from leaving our coast, the global economy would grind to a halt,” he noted.
Critical Minerals (UNEP)
The transition from fossil fuels to clean energy sources will depend on critical energy transition minerals. Minerals – such as copper, lithium, nickel, cobalt – are essential components in many of today’s rapidly growing clean energy technologies, from wind turbines and solar panels to electric vehicles. The consumption of these minerals could increase sixfold by 2050, according to the IEA, with their market value reaching US$400 billion, exceeding the value of all the coal extracted in 2020. To stay below 2°C by 2050, more than three billion tonnes of energy transition minerals and metals is needed to deploy wind, solar and energy storage.
However, critical energy transition minerals come with environmental, social, economic, geopolitical, trade, and partnership challenges and opportunities. While the growth of minerals supply plays a vital role in enabling a clean energy transition, if poorly managed, the production and processing of these minerals can lead to a myriad of negative consequences, including: Significant greenhouse gas emissions arising from energy-intensive mining and processing activities. Environmental impacts, including biodiversity loss and pollution. Social impacts including human rights abuses such as child labour and negative impacts on indigenous people’s rights. In addition, there is a supply challenge which could slow down the energy transition or make it more expensive and unequal.
To address the intricate balance between supply and demand, we must support a just energy transition through responsible mining and circularity. This means ensuring stability in supply while reducing demand through responsible sourcing and resource circulation. Rethinking mobility, housing, and industrial systems is essential as is emphasizing material efficiency, substitutes, and circularity. Additionally, responsible extraction practices must be implemented to achieve a socially just and environmentally sustainable outcome.
Steel exports: China turns to Africa to sell surplus metal (The Exchange Africa)
Non-Aligned Movement Reaffirms Multilateralism, Inclusive Trading System (SDG Knowledge Hub)
Member countries of the Non-Aligned Movement (NAM) – a bloc of 120 developing countries championing international peace and security and a steady global recovery from the COVID-19 pandemic – have agreed to make joint efforts to realize the 2030 Agenda for Sustainable Development and the Addis Ababa Action Agenda (AAAA) through development cooperation, acceleration of SDG investments, and reform of the international financial architecture, among other actions.
In the Kampala Declaration of the 19th Summit of Heads of State and Government of the Non-Aligned Movement, NAM members commit to achieving sustainable development “in an integrated and indivisible manner of its three dimensions” by: supporting sustained, inclusive, and sustainable growth; enhancing macroeconomic policy cooperation; exploring measures of progress on sustainable development that complement or go beyond gross domestic product (GDP); and implementing actions to accelerate sustainable development in developing countries with support from the international community, including financial resources, transfer of technology, technical cooperation, and targeted capacity building.
We are working towards a modern governance of public finances (New African Magazine)
Jean-Baptiste Ondaye, Minister for the Economy and Finance in the Republic of Congo, gives an overview of his country’s financial situation, and outlines the work underway in the CEMAC zone in terms of financial inclusion.
To what extent will your financial inclusion strategy, which is in line with CEMAC’s regional initiatives, stimulate greater economic integration in Central Africa? You are referring to CEMAC’s 2023-2027 regional financial inclusion strategy, which has just been adopted. It has been designed to remove the constraints to formal financial inclusion on the demand side as well as on the supply side, the legal and regulatory framework and the financial sector environment in CEMAC. The aim is therefore to promote financial inclusion in each member country and cross-border digital payments within the Community. The objective of the National Development Plan 2022-26 is to build a strong, diversified, and resilient economy, with a view to creating more wealth and jobs, particularly for young people and women.
How to Ease Rising External Debt-Service Pressures in Low-Income Countries (IMF BLog)
Financing pressures due to relatively high interest payments and the pace at which low-income countries need to repay debt are straining budgets. That prevents these countries from spending more on essential services or the critical investment needed to attract business, create jobs, improve prosperity, and build climate resilience.
One important metric is the share of revenues the government collects from its population through taxes and other fees that goes to pay its foreign creditors. While the scale of the burden differs greatly across countries, it’s generally about two and a half times higher than a decade earlier. This means for a typical low-income borrower the share has risen to about 14 percent, from about 6 percent, and as much as 25 percent, from about 9 percent in some economies. This is one of the key indicators used in the framework for assessing debt sustainability that signals a country might be at risk of needing financial support from the IMF or of missing a debt payment.
Low-income countries also have significant debt repayments falling due in the next two years. They need to refinance about $60 billion of external debt each year, about three times the average in the decade through 2020. But with many competing demands for financing, including from advanced and emerging market economies that are also trying to adapt to climate change, there’s a significant risk of a liquidity crunch—failure to raise sufficient financing at an affordable cost. That could in turn lead to a destabilizing debt crisis.
Africa: Sustainable debt management key to adequate education financing (Amnesty International)
Given the educational failings across Africa, especially in conflict-affected regions and following the disruptions to education caused by Covid-19, African governments must not just meet but go beyond the minimum budget thresholds established by the Dakar and Incheon Declarations if they are to ensure that the right to education is fully protected and promoted. The United Nations Conference on Trade and Development ( UNCTAD ) estimates that nearly 57% of Africans live in countries that spend more on debt repayments than education and health combined.
Rising markets in Latin America, Africa, and Asia are guiding the global surge in new consumers, with India leading the way, by adding 34 million people to the consumer class this year, almost one third of the 109 million worldwide. After Asia, Africa and Latin America are, respectively, the second and third regions to add more people, per the World Data Lab. This general consumer increase led by these three dynamic regions unfolds into the digital commerce realm as well: combined, LatAm’s and Africa’s digital commerce markets are expected to surpass US$1 trillion in total value by 2026, while India’s will be over US$275 billion, per Payments and Commerce Market Intelligence (PCMI) data in the new annual Beyond Borders, EBANX’s comprehensive study about the digital market and payments in rising economies, launched today.
As an early adopter of digital payments, and soon to be home to an adult population of 1 billion by 2030, Africa is also an important region for the outstanding digital growth of commerce and payments. After heavily embracing digital payments, which jumped from a 23% to a 46% penetration rate considering many of its countries in less than eight years, Africa is now on the verge of its next big leap: digital commerce, fueled by cellphone penetration rates and constant adaptability of local, alternative payment methods to the online world, like mobile money, which reached almost universal penetration in countries like Kenya.
The Group of 77 countries plus China is an important platform for developing countries to make their collective voices heard at a time when the world is facing multiple crises, said Claver Gatete, Executive Secretary of the Economic Commission for Africa (ECA). This, he said, is the key principle of ‘Leaving No One Behind’ that must guide our actions.
Mr Gatete was speaking on behalf of the five UN Regional Economic Commissions at the Third South Summit in Kampala, Uganda that took place on the theme: Leaving no one behind. The Summit was aimed at “bringing a new dynamic to the cooperation among its 134 member States of the Group of 77 (G-77) in a more competitive world.”
“As we prepare for the Summit of the Future, the unified voice of the G77 plus China will be a critical factor for success. The convening role of the regional commissions will also be essential,” said Mr Gatete adding that the principle of “leave no one behind” is more than the North-South divide. It is about the most basic and fundamental right and dignity of our people. “If there was ever a time when multilateralism demanded more from us, now is the time, and the leadership role of the G77 plus China will become even more critical.
He highlighted three key areas illustrating the regional commissions’ role in contributing to the principle of Leaving No one Behind and assessing the sources of vulnerabilities in developing countries. One is the deficit of industrialisation which prevents the creation of decent jobs to tackle poverty adequately. The second is the exposure to the negative effects of climate change. The third is the deficit in technological development that could lead to further global divide.
US and African Development Bank Forge Stronger Ties to Boost Food Production (AfDB)
United States Secretary of State Antony Blinken has praised the African Development Bank Group for the exceptional efforts it is undertaking to help Africa feed itself and the rest of the world.
“Extraordinary work is being done to get to a place where Africa feeds itself and a place where Africa feeds the world. I’m convinced that can happen,” Secretary of State Blinken said during a visit hosted by African Development Bank Group President, Dr. Akinwumi A. Adesina in Abidjan on Tuesday. The two met at the headquarters of AfricaRice—a pan-African centre of excellence for rice research, development, and capacity building that implements Bank agricultural programmes.
Dr. Adesina also thanked Secretary Blinken for a new grant of $9.5 million to support the Bank’s Technologies for African Agricultural Transformation initiative, or TAAT. The grant, which is a part of the larger US Government “Feed the Future” global hunger initiative, will be used for the second phase of the Bank programme called TAAT II, to help African countries increase food production, introduce climate-smart technologies, and expand extension services. To date TAAT has deployed climate-resilient agricultural technologies and fertilizers to 13 million African farmers in 40 African countries to help boost the continent’s food production and food security. The USAID grant will help expand the reach of TAAT II further.
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Aqora becomes Afrivolt, aims for battery cell manufacturing in Cape Town (Engineering News)
South African energy company Aqora has rebranded to become Afrivolt, says MD Deshan Naidoo. The firm’s goal, however, remains the same – opening a lithium-ion cell gigafactory in South Africa, able to produce anodes, cathodes and lithium-ion batteries for stationary storage applications and, in the medium term, for electric vehicles (EVs). Procuring and processing the minerals and metals needed for the factory within Africa has become more of a longer-term plan, adds Naidoo, with cell production moving to the front of the queue.
“It has been difficult to raise capital in this challenging economic environment, so we have been forced to change our strategy and reduce our investment requirements. “We view the immediate opportunity as cell manufacturing.” Naidoo says the lithium-ion battery cell plant is currently the subject of a due diligence process, with Afrivolt locked in talks with finance institutions to raise the required capital.
Uganda reaffirms commitment to clean energy sustainability (CGTN Africa)
Uganda’s energy minister Ruth Nankabirwa reaffirmed the East African country’s commitment to maximise its oil and gas reserves sustainably amid concerns that its current projects will fall victim to overexploitation. Uganda discovered oil deposits close to two decades ago, sparking hope that the nation could accelerate its development and gain revenue. However commercial oil production is yet to start due to delays caused by inadequate infrastructure.
Two major projects in the pipeline, the Kingfisher and Tilenga oil fields, are expected to produce tens of thousands of barrels of oil per day at their peaks. The country also has the East African Crude Oil Pipeline Project that will transport oil produced from Uganda’s Lake Albert oilfields to the port of Tanga in Tanzania where the oil will then be sold to global markets. But as Uganda plots on how to maximise its reserves, global leaders seek to reduce the use of fossil fuels. The issue places Uganda in a dilemma between economic development and fossil fuel phase-out.
Kenya strikes large deposits of mineral used in phones, laptops (The East African)
Kenya has announced that the precious coltan mineral, which is used in the manufacture of cell phones, laptops and other communication gadgets has been found in the country. Mining and Blue Economy Cabinet Secretary (CS) Salim Mvurya said on Wednesday that adequate deposits of coltan have been found in six counties. The rare metallic mineral, mostly found in the eastern part of the Democratic Republic of Congo (DRC), is mainly used for the production of electronic goods of mass consumption, such as mobile phones, laptops and videogame consoles, and its discovery in Kenya is set to raise the country’s profile as a mineral exporter.
The CS said the government is determined to make mining industry more vibrant for the benefits of the country. He said more workers will be employed to assist in exploration of the minerals which are spread across counties.
He lamented that illegal mining is rampant in the country and the vice must be eradicated. “Some have been carrying out mining of precious minerals without licences, we shall weed out all those investors who don’t follow the law, We want mining to be a business where investors comply with all aspects of the law,” he said. He said a special unit has been set up by the cabinet to enforce compliance.
Kenya exports to Uganda rise to $648m (The East African)
The value of Kenya’s exports to Uganda crossed the Ksh100 billion ($618 million) mark for the first time in November 2023, owing to a weak currency that had made the local goods cheaper in the neighbouring country. Official data shows that Kenya exported goods valued at Ksh105 billion ($648.95 million) to Uganda in the year to November last year, a period that saw the Kenyan shilling lose 17.45 percent of its value against the Ugandan shilling. Antony Mwangi, the managing director of the Kenya Association of Manufacturers (KAM), and whose members are the major exporters to Uganda, reckoned that the increase “may not be because of the increase of products that we are exporting, it may be because our currency now is weaker.”
Kenya in tight spot as EAC, Europe trade deals clash (The East African)
Kenya’s recently completed trade deals have run into stormy waters after Nairobi applied higher import duties on whiskies and wines from the United Kingdom and the European Union (EU) respectively, two jurisdictions with which it signed Economic Partnership Agreements (EPA).
While Kenya, in line with the East Africa Community (EAC) Customs Union, is applying a higher tariff of 35 percent on imported wines and whiskies to encourage local production, the two EPAs put the import duty at 25 percent. The deal with the EU is awaiting ratification in Brussels while the agreement with UK is operational.
The countries in the EU and UK, which produce Scotch Whiskey, Tequila, Champagne and Bourbon, are protected by a clause in the World Trade Organisation (WTO) agreement that forbids their manufacture in other countries. This has left Kenya in an awkward position as it is expected to implement a higher tariff of 35 percent in line with Common External Tariff (CET) under the EAC Customs Union.
Nigeria seeks to expand $11.8bln bilateral trade with India (ZAWYA)
The federal government is seeking to expand over $11.8 billion bilateral trading partnership with the Republic of India in a bid to boost growth in key sectors of the Nigerian economy. Speaking on Tuesday at the Nigeria-India Business Council (NIBC) held in Abuja, the Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite commended India for investing much in Nigeria. “India is among Nigeria’s top 10 trading partners, and Nigeria is India’s largest trading partner in Africa. The total bilateral trade between India and Nigeria as of 2022 stood at USD 14.95 billion, as against USD 8.81 billion during the year 2020 – 2021; this, unfortunately, dipped to USD 11.8 bn last year but remains a clear indication of the importance of trade relations between our two nations”.
DP World’s $2bn Mozambique port expansion gets approval (Engineering News)
Mozambique approved an extended deal for DP World, Grindrod and other operators of its biggest port, including a $2-billion expansion that will further draw cargoes away from neighboring South Africa’s creaking trade infrastructure. The group, which also includes Mozambique’s state-owned railway operator, won a 25-year extension to run the port in Maputo, the capital, ending in 2058. The Council of Ministers approved the deal on Tuesday, according to a statement. The agreement includes investments of nearly $1.1 billion by 2033 when the original concession was due to end.
Maputo’s port has grown rapidly in recent years, as it caters to demand from Mozambique’s growing economy and exports from neighboring South Africa. Miners of coal, chrome and magnetite, a type of iron ore, have been sending increased volumes by truck to Maputo as snarl-ups at South Africa’s state-owned rail and ports company Transnet’s have cost them billions of dollars in lost revenue.
Standard Chartered nears agreement on Miga-backed Senegal government loan (Global Trade Review)
The Multilateral Investment Guarantee Agency (Miga) is eyeing its second guarantee for a short-term trade-focused loan facility to an African government, following an application by Standard Chartered. The €190mn facility, which was outlined by Miga this week and is due for board approval by February 22, would be made available to Senegal’s Ministry of Finance and Budget to provide short-term loans for trade-related payments, mainly in the agriculture sector.
Miga says the project would help Senegal’s government “unlock trade finance liquidity support for the local agriculture sector, at a time when there are significant liquidity constraints in the trade finance market due to current economic conditions”.
Zambia ratifies tripartite corridor agreement (New Era)
The Zambian government successfully ratified the Walvis Bay-Ndola-Lubumbashi Development Corridor (WBNLDC) Tripartite Agreement on 12 January 2024, and deposited the instruments of ratification with the Southern African Development Community (SADC). The WBNLDC is a key corridor and trade route connecting the Port of Walvis Bay with Ndola in the Copperbelt of Zambia and Lubumbashi in the mineral-rich region of Katanga in the Democratic Republic of the Congo (DRC).
The WBNLDC is aimed at creating an alternative trade route to the mineral hubs of DRC and Zambia to international markets, the seamless movement of goods and people, as well as boost regional integration. The tripartite agreement was signed in March 2010 by the member states of DRC, Namibia and Zambia. The DRC was the first to ratify the agreement in 2015, followed by Namibia in 2021, and now Zambia.
Announcing their ratification, Zambia’s Minister of Transport and Logistics Museba Frank Tayali said it will boost economic development amongst the member countries and beyond. He further underscored that the ratification will yield benefits such as improved infrastructure, private sector participation, as well as contribute to the overall development of the region through promoting cross-border trade and investment.
Functional Private sector participation key to AfCFTA success – President Akufo-Addo (Ghanatodayonline)
For the African Continental Free Trade Area to succeed, the President of the Republic, Nana Addo Dankwa Akufo-Addo, has emphasized the need for effective private sector led participation. President Akufo-Addo stated that private participation is necessary for the AfCFTA to be as transformative as intended during his speech at the 2024 World Economic Forum event on “Driving Action Under the African Continental Free Trade Area and Launching the First AfCFTA Private Sector Action Plan” on Wednesday, January 17, 2024.
“Critically, active private sector participation will be key to the success of this transformational initiative. Excellencies, let’s not lose sight of the fact that the AfCFTA is not a “government initiative”, rather it represents the first step toward empowering our private sector to lead the economic emancipation and transformation of our continent” he indicated.
Improve tax laws to attract investors, EAC states told (People Daily)
Tanzanian authorities have called on East African Community (ECA) member states to improve tax collection methods to attract investors. The call was made by Permanent Secretary in the Ministry of Finance Natu Mwamba when she opened the 51st forum for Commissioners-General of East African revenue authorities in Tanzania’s commercial hub of Dar es Salaam.
Mwamba urged the EAC revenue authorities to improve tax laws and procedures to attract investors and encourage investment in the East African region. Alphayo Kidata, the commissioner general for the Tanzania Revenue Authority, urged revenue authorities in the EAC region to unite and work together to bring efficiency in revenue collection, expand the tax base, prevent tax evasion, and provide better services to taxpayers.
The appeal by the PS comes at a time when experts in Kenya have warned that increasing tax rates beyond certain point may reduce tax revenue because higher taxes can discourage economic activity and worsening the cashflow.
EAC diaspora remittances soar to a record $9.3 billion (The Citizen)
Remittances from the East African diaspora soared to a record $9.3 billion in 2022 despite the high cost of funds transfer. This is according to the World Bank which says remittances are now one of the largest sources of external financing for the region. The remittances to the East African Community (EAC) partner states stood at $ 5.4 billion in 2017, jumping to $9.3 billion in 2022.
Despite the rosy picture, the Bretton Woods institution wants the region to develop mechanisms that will ease the cost of transfer of the funds. Reduction of the cost, it says according to a dispatch from the EAC secretariat, would boost the partner states’ economies.
“The current information on remittances from the World Bank indicates that the partner states received a combined $9.3billion in 2022”, the EAC statement said. Kenya, the largest economy in the region, has been leading in the diaspora remittances compared to other states in the union.
Upcoming meeting: AU Roundtable to catalyse investments and partnerships (ESI-Africa)
The Africa Union (AU) “Scaling Up Green Investments to Address Climate Change” roundtable taking place at Africa’s Green Economy Summit in Cape Town next month offers AU member states and high-level stakeholders the opportunity to explore the potential of green investments and funding instruments to combat climate change on the continent.
The Summit, taking place from 21-23 February 2024 in Cape Town, is centred around connecting the global investment community with investment prospects in Africa’s green economy space. HE Josefa Leonel Correia Sacko, Commissioner for Agriculture, Rural Development, Blue Economy, and Sustainable Environment (ARBE), African Union Commission (AUC), Ethiopia, comments: “Africa’s Green Economy Summit is a vital link between global capital and sustainable projects in the continent. The Summit unites investors, project leaders, and policymakers, fostering connections and paving the way for an inclusive green economy and a sustainable future for all.”
U.S.-Africa Trade Council advises Lagos govt against styrofoam ban (Businessday Nigeria)
The U.S.-Africa Trade Council has warned the Lagos State government of a potential rise in unemployment arising from its ban on the use of Styrofoam, otherwise known as single-use plastic containers, in the state. On Sunday, the Lagos State government prohibited the use of Styrofoam, a common component used in the sale of cooked food, without prior warning or enough consultation with stakeholders in the state.
In a press statement, signed by Titus Olowokere, CEO/President of the U.S.-Africa Trade Council, and made available to BusinessDay on Tuesday, the non-governmental organisation focused on strengthening trade relations between the U.S. and Africa pointed out that “the ban, although well-intentioned, fails to evaluate the broader economic consequences it entails.”
In highlighting the negative impact of the ban, the organisation stressed the huge economic significance of this industry, pointing to the thousands of Nigerians employed across the state. It said, “The sudden halt in production and use of single-use plastic containers in Lagos will lead to significant job losses, further exacerbating the unemployment rate. This ban directly affects not only industry workers but also countless small-scale entrepreneurs who depend on the plastic sector for their livelihoods.”
Maersk and CMA CGM Help Nigeria Achieve Firsts in Growing Container Trade (The Maritime Executive)
The West African container trade is growing rapidly with Nigerian officials marking the arrival of the largest containership into their new Lekki Deep Sea Port and the scheduled arrival of the first LNG-fueled containership into West Africa. These milestones come as the Lekki port marks its first anniversary as the deepest seaport in the region.
The carriers are ushering in upgrades to the West Africa Express (WAX) service that includes calls in Nigeria as well as Ghana, Cote d’Ivoire, and Congo and connecting West Africa to China, Southeast Asia, and India. It is a weekly service that includes calls by vessels in the 13,000 to 15,000 TEU range. A total of 13 large containerships will be used to maintain the service.
Nigerian officials highlight that the arrival came as the Lekki port prepares to mark its first anniversary for commercial operations. The Freeport Terminal, which is managed and operated by the CMA CGM Group, is a multi-user facility that CMA CGM calls “a game-changing infrastructure for Nigeria and West Africa.” The first phase, which opened in February 2023, has a capacity of 1.2 million TEU with five ship-to-shore cranes. When completed, the port will have a total of over 3,900 feet of berth with a depth of over 52 feet and the capacity to handle 2.5 million TEU. CMA CGM highlights that the port serves as a mega transshipment hub, especially to Nigeria’s neighboring countries in the Gulf of Guinea, including Togo and Benin.
FPCCI backs Look Africa initiative, pushes for bilateral trade deals (The New International)
Pakistan’s top business body urged the government on Tuesday to sign free trade agreements (FTAs) with African nations, saying it would help increase the country’s exports to the continent and reduce its trade deficit.
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said it fully supported the Look Africa Policy Initiative of the Ministry of Commerce, which aims to enhance trade and economic cooperation with African countries. FPCCI acting President Saquib Fayyaz Magoon said Pakistan should pursue bilateral FTAs with the top seven economies of Africa - Egypt, Nigeria, South Africa, Algeria, Ethiopia, Morocco and Kenya - which account for about 78 percent of the total gross domestic product (GDP) of Africa. “There are significant economies in Africa with whom we can multiply our trade volumes within years - both bilaterally and exports to the region cumulatively,” Magoon said in a statement.
He said Pakistan’s exports to Africa, as a whole, showed stagnation at around $1.5 billion in 2022, while its imports from Africa rose from $3.18 billion in 2018 to $4.38 billion in 2022, resulting in a trade deficit of $2.88 billion.
Gambia calls for implementation of Doha Programme of Action for LDCs (The Point)
Speaking at the 19th Ministerial Meeting of Non-Aligned Movement Countries in Kampala, Uganda, Lang Yabou appealed for the need for member countries to further deepen cooperation through the pursuit of more win-win partnerships, solidarity and collaboration.
“Shared global affluence is a goal that can be achieved if we take up our global commitments more seriously by rebuilding the lost trust within the international community,” PS Yabou said. “Too many development blueprints, too many unfulfilled commitments, inadequate international solidarity, deep international mistrust and polarisation are all negatively impacting our cooperation mechanisms and multilateralism in general.”
He urged countries to reinvest in the revival of multilateralism and global partnership systems since no country can go it alone when it comes to dealing with climate change, underdevelopment migration, pandemic preparedness and response, cybersecurity, disarmament, terrorism and conflict resolution.
“We do not only need to cooperate more, but such cooperation must be on a global scale, and deepened at the global level for our collective prosperity. The Sustainable Development Goals (SDGs) were designed to deliver prosperity for all member states through strong institutions, cooperation, global solidarity and partnership. With renewed vigor, the international community, including the International Financial Institutions (IFIs) must accelerate the implementation of the goals with critical financing for development.”
Lauding India for the facilitation of membership of the African Union into the intergovernmental G20 forum, visiting President of the United Nations General Assembly Dennis Francis said that it depicts New Delhi’s leadership in the international arena. He said that it also demonstrates India’s long-standing commitment to assist and facilitate development in the Global South, adding that Africa is a region whose potential is yet to be fully realised.
“There is no doubt in anyone’s mind that India’s outreach to Africa, particularly in regard to its facilitation of the membership of the African Union in the G20, demonstrates India’s leadership in the international arena. But more than that demonstrates its long-standing commitment to assist and facilitate development in the third world, in the global south. Africa is a region whose potential is yet to be fully realised,” the UNGA President said in his press conference in the national capital today.
Africa and Europe must strengthen relations (Nation)
MC13 should address existing and emerging challenges to trade (The Financial Express)
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Sustaining growth for South Africa’s vibrant fintech industry (Daily Maverick)
Fintech enterprises frequently leverage cutting-edge technologies like artificial intelligence, blockchain, and big data to develop novel financial products and services that surpass traditional financial institutions in terms of efficiency, accessibility, and customer experience. The fintech market encompasses start-ups, well-established financial institutions, and other companies employing technology to revolutionise and innovate within and outside the financial services sector.
According to Research and Markets, South Africa’s financial services sector is internationally recognised as one of the most sophisticated. In the last decade, this has been complemented by a small but fast-growing fintech sector that is transforming financial services through digitisation, streamlining and/or disruption. Accounting for 40% of all fintech revenue in Africa, Research and Markets adds that South Africa has a relatively mature fintech market with a strong focus on development.
Investors in growth sectors to benefit from two strategically located purpose-build zones (Global Africa Network)
One of the competitive advantages of investing in the Eastern Cape lies in the two Special Economic Zones, one in East London and one at Coega, which hosts a deepwater port. Both SEZs are strategically situated on major transport and shipping routes and provide purpose-built infrastructure for investors wishing to produce and manufacture for the Southern African Development Community and world markets.
The Eastern Cape Development Corporation (ECDC) focuses on a number of specific growth sectors which are all aligned to the Provincial Economic Development Strategy and Provincial Development Plan. Agriculture and agro-processing; Sustainable energy, generation; and component manufacture; Oceans Economy; Automotive; Light manufacturing; Tourism, infrastructure and product; and Film.
Itac rebates for optic fibre cables, electrical apparatus imports (Engineering News)
The International Trade Administration Commission of South Africa (Itac) has created a rebate facility for the import of optic fibre cables and electrical apparatus used in international submarine optic fibre cable infrastructure. This followed Telkom subsidiary Openserve’s 2019 application for the products classified under tariff subheadings 8544.70 and 8536.90.90, respectively.
According to Itac’s ‘Report 614’, published on Tuesday, the optic fibre cables and electrical apparatus for making connection to and in the electrical circuits, both used in the maintenance of the international optic fibre cable system, are not manufactured locally.
The report outlined that optic fibre cables attract a general rate of customs duty of 15% ad valorem, while electrical apparatus attracts a general rate of customs duty of 5% ad valorem.
Burundi economy to grow by 4.3pc in 2024, IMF says (The East African)
Burundi’s economy is projected to expand 4.3 percent this year from 2.7 percent in 2023, helped by improved performance in the agriculture sector, the International Monetary Fund (IMF) said. With a population of 12 million, Burundi’s economy relies heavily on agriculture revenues, especially from tea and coffee.
“Growth is projected to accelerate ... supported by strong agricultural production, productive investment, and the ongoing reforms,” the fund said in a statement late on Monday. Fuel shortages had hampered economic activity in 2023, the fund said. Burundi’s economy is only starting to recover from years of conflict and political upheaval under former leader Pierre Nkurunziza that left key sectors blighted.
Somalia: We are ready to do business with East Africans (The East African)
From the start of his term in office, President Hassan Sheikh Mohamud’s agenda was to join the EAC. In his current tenure, he renewed determination to surmount the internal obstacles that stood in the way of their integration into the Community. “For President Mohamud, the EAC mission has become deeply personal. It represents a commitment to ensure that Somalia, despite its internal challenges, does not lag in the collective progress of the region,” Dr Omer said.
Somalia boasts the longest coastline in Africa, spanning 3,300 kilometres along the Gulf of Aden to the north and the Indian Ocean to the east and south. This geographical advantage presents strategic opportunities with immense potential for fishing. This has attracted the interest of Chinese, Spanish, and Iranian fishermen, both legally and illegally.
“The fisheries potential, and as Somalia improves its security situation, abundant livestock, and the vast arable land of eight million hectares further contributes to the nation’s potential for agricultural development, and food security for the region,” Dr Omer said. Dr Omer said the majority of Somalia legislators support the EAC integration, although a minority may express opposition, “which is expected in any democratic setting”.
Kenya’s solo trade deals irk EAC members, thaws ties with key states (The Star)
Uganda in talks with UAE investment firm over planned $4 billion oil refinery (The East African)
Uganda is negotiating with an investment company led by a member of Dubai’s royal family to develop a planned $4 billion refinery for some of its crude oil, its energy minister said on Tuesday. Uganda in July last year terminated negotiations with a consortium that included a unit of US firm Baker Hughes over its failure to mobilise financing in time. Uganda is counting on the 60,000 barrel-per-day refinery for its nascent hydrocarbons industry.
“Expressions of interest were received from several potential investors and they were evaluated ... following which a memorandum of understanding was signed on the 22 of December 2023,” Minister of Energy and Mineral Development Ruth Nankabirwa said at a news conference.
Uganda expects to start pumping crude commercially in 2025 from fields in the Albertine rift basin in the country’s west near the border with the Democratic Republic of Congo. President Yoweri Museveni’s government wants to process some of its crude domestically to boost employment and benefit from technology transfer.
The Gambia: Minister of Trade gives figures of unemployed youth in Africa (The Voice)
One-third of the 420 million youth aged 15-35 years has been stated to be unemployed and discouraged while another third are vulnerably employed, and only one in six is in wage employment. This was disclosed by the Minister of Trade, Industry, Regional and Employment on Saturday while presiding over the inauguration of the National Employment Technical Committee (NETC), a ceremony held at the Sir Dawda Kairaba International Conference Center, Bijilo on Saturday.
He said according to a recent report on Africa youth face roughly double the unemployment rate of adults with significant variations by country.
Minister Joof, explained that the current unemployment situation in Sub-Saharan Africa including The Gambia, prompted Professor Robert Kappel, to call for a rethink and the deployment of more unconventional measures by African governments and their international partners. He urged them to encourage greater participation of civil society in searching for solutions, particularly trade unions, and also better integration of small and medium-sized enterprises in the global economy.
“He argued that it is unlikely that Africa’s economic growth alone will create the necessary jobs for her population. The impending job crisis as he said can no longer be resolved with traditional methods which have failed to live up to expectations. With the pressing need for a new paradigm shift on the horizon, he recommends a new endogenous economic policy approach in Africa as he believes that employment opportunities must be improved through industrialization, urban-rural linkages, and by connecting foreign investment and local entrepreneurship,” the Minister added.
The resource curse theory: Unboxing the $3.4bn Afrexim deal (Businessday Nigeria)
#BizTrends2024: Africa’s growing role in global trade dynamics (Bizcommunity)
Assessing opportunities for SMEs and entrepreneurs under AfCFTA (GhanaWeb)
The African Continental Free Trade Area (AfCFTA) Agreement is regarded as the leading and most important flagship project under the African Union’s Agenda 2063 to transform the continent of Africa into a global powerhouse. Some opportunities for SMEs under AfCFTA.
Firstly, the AfCFTA initiative has created the opportunity for enhanced access to a larger market. In particular, governments across the continent are aiming to advance trade in value-added production across all service sectors of the African economy. In the process, a common market for the free movement of goods and services will be created leading to an increase in new market opportunities that meet the criteria under the Agreement.
Secondly, AfCFTA has created the opportunity for the free movement of goods and services. This is intended to create a visa-free zone within the AfCFTA countries to allow for easy movement of goods and services.
Thirdly, AfCFTA has created the opportunity for partnership and collaboration across the continent. This opportunity has the potential to create new partnerships in production, marketing, sales, distribution, and customer service among others.
Fourthly, AfCFTA has created the potential for increased access to funding and investment for SMEs. The introduction and adoption of the AfCFTA has opened the African market to a wide range of economic interests in various areas across the global economy.
Fifthly, there is the opportunity for healthy competition that leads to better, and quality products and services.
Business and Political Leaders gear up for 2024 edition of Africa Prosperity Dialogues (Africa Prosperity Network)
Heads of institutions with strong representation on the African continent, captains of industry, top government officials, and members of the diplomatic community have signaled their readiness to attend and contribute to the success of APD 2024, will be hosted by the President of the Republic of Ghana, Nana Addo Dankwa Akufo-Addo under the theme; “Delivering Prosperity in Africa: Produce, Add Value, Trade.” The Dialogues will be held at the Peduase Lodge, Aburi Hills in the Eastern Region of Ghana.
“We are not just going to have conversations, we will see deliverables from there [the APD] and whatever comes out of the dialogues, there will be a compact that will be presented to the AU for their consideration,” Gabby Otchere-Darko remarked.
Executive Chairman of the Africa Prosperity Network, Gabby Asare Otchere-Darko, Chief Staff at the Africa Continental Free Trade Area (AfCFTA) Secretariat, Silver Ojakol, on behalf of Wamkele Mene, the Secretary General of the AfCFTA, described the AfCFTA secretariat’s partnership with APD as a strategic development that will go a long way to influence the ability of the AfCFTA to deliver the much-needed prosperity the Africa continent so desperately needs.
“The pillars of regional value chain development, value addition, increased production on the continent in order that we can trade more with each other, and the pillar of trading, even trading across our borders. “The AfCFTA secretariat is very much committed to ensuring that this process (the Africa Prosperity Dialogues), moves forward and delivers prosperity for the continent,” Silver Ojakol said.
South African Finance Minister Enoch Godongwana pledged that South Africa would uphold the core principles of the African Continental Free Trade Area (AfCFTA) in the enlarged BRICS group of developing countries.
The African Continental Free Trade Area Secretariat has unveiled the first ever AfCFTA private sector action plan, with 12 industry giants committing to projects to transform the automotive, agriculture and agro-processing, pharmaceuticals, and logistics and transport sectors.
AfCFTA Secretary General Wamkele Mene admitted that these commitments totalling $130 billion signify a leap in realising the potential of intra-African trade. Godongwana said that the development of AfCFTA and the expansion of the BRICS bloc are the two important developments for the South African economy this year as they are happening simultaneously.
EAC Partner States approve Labour Migration Policy (EAC)
The Directors of Labour and Employment from the EAC Partner States have considered and approved the EAC Policy and Legal frameworks governing labour migration and the outcome of the national and regional consultations during the regional meeting of Experts in Bujumbura, Burundi. The overall aims of the policy are to advocate for the protection of migrant workers; strengthen labour migration governance and maximise the benefits accruing from labour migration
The Policy whose implementation Plan spans from 2025-2030, has ten (10) key Priority areas namely: Labour Migration Governance; Harmonisation of Labour Migration Policies; Protection and Empowerment of Migrant Workers; Access to Social Protection and Social Security Benefits; Mutual recognition of Academic and Professional Qualifications. Other priorities area are: Recognition of Skills Obtained through Informal Training; Promotion of Fair and Ethical Recruitment Practices; Remittances by Migrant Workers; Exchange of Young Workers; and Labour Market Information Systems.
The policy recognises that Partner States have also put in place robust efforts to recognize, certify, and qualify skills acquired through experiential learning. However, a notable gap remains at the EAC level where there is currently no specific mechanism for the recognition of such skills.
Kenya questions jurisdiction of East African court (The East African)
Kenya’s Attorney General Justin Muturi on Tuesday pleaded with the Supreme Court to hear his application seeking the top court’s opinion on the legal consequences and effects of decisions of the East African Court of Justice (EACJ) on the country’s sovereignty. Mr Muturi said whereas there is no express provision in the East African Community (EAC) Treaty conferring upon the EACJ the jurisdiction to interpret the constitutions of partner states, the regional court has in several decisions, interpreted its jurisdiction to include the review of decisions issued by apex courts of member countries.
The Attorney General said he was apprehensive that the exercise of appellate jurisdiction by the regional court over decisions by national courts may pose serious conflict to Kenya’s commitment to the rule of law, because of differing holdings by national courts on one hand and the EACJ on the other hand. He said the conflict exposes the government to a legal dilemma when it comes to compliance with contradictory yet binding decisions from two courts, stemming from differing interpretations based on the same set of facts. Mr Muturi wants the court to clarify which of the two different interpretations should be effected, to facilitate compliance.
Africa’s gas sector is benefiting from a global shift towards greater flexibility (Global Africa Network)
Africa may not possess the vast conventional gas resources of the Middle East or Russia and it may not be able to match the combined conventional and unconventional resources of North America. But it does have a sizeable amount of gas – at least 620-trillion cubic feet (tcf) or 17.56-trillion cubic meters (tcm) ‒ in proven reserves.
That’s more than enough to make Africa a key player in the global gas industry. In fact, it puts Africa in a position to influence the course of the industry, especially in light of long-term trends, including the shift to more flexible contract and delivery terms, along with more recent developments such as the Russia-Ukraine conflict.
The African Energy Chamber (AEC) has outlined our expectations for Africa’s gas sector in the “The State of African Energy Q1 2023 Report”, a new publication available for download on our website. The report covers our outlook on both upstream and downstream trends. Here, I’d like to offer some extra insight into our take on downstream developments – that is, on African liquefied natural gas (LNG) projects, including the countries currently dominating the industry and those preparing to make their presence known.
Will a prolonged rerouting of ships from Suez trigger a new supply chain crisis? (World Bank Blog)
In the near term, the global container shipping industry will likely absorb the shock to capacity caused by attacks on vessels in the Red Sea because demand is generally soft in January and February. However, should the attacks persist into March and April, when global trade experiences a seasonal rebound, capacity constraints could trigger a supply-chain crisis like the one that occurred in 2021-22.
The source of supply-chain stress is different today, but the outcome could be similar. Major freight carriers, including Maersk and Hapag-Lloyd, have suspended operations through the Suez Canal to avoid the Red Sea and are rerouting vessels around the Cape of Good Hope , adding 3,000 to 3,500 nautical miles (5,500 to 6,500 km) and seven to 10 days to a typical trip between Europe and Asia. The extra distance could absorb from 700,000 to 1.9 million standard containers (twenty-foot equivalent units, or TEUs) of shipping capacity, depending on the estimate.
Africa must raise its voice on resolving Red Sea crisis (Daily Maverick)
The Red Sea crisis is now a United Nations Security Council (UNSC) priority, with three meetings held this year already. Following several months of Houthi attacks on vessels in the Red Sea and Gulf of Aden, a coalition of concerned countries launched military operations on 11 January to degrade Houthi maritime capabilities in Yemen.
The attacks are causing many ships to be rerouted around the Cape of Good Hope, with disruptions to supply chains and higher costs. The immediate impact will be on Egypt’s economy, which relies heavily on Suez Canal revenues. A prolonged decrease in canal traffic and income could strain its economy and stability. Egypt hasn’t been outspoken on the issue — perhaps out of fear that its populace would interpret that as tacit support for Israel over Palestine. Africa is already facing difficult economic challenges. The effect on global supply chains will be higher costs and lower availability of goods across the board. Increased shipping costs due to longer routes or heightened insurance premiums can have a cascading effect on global trade and economies. This rise in expenditure trickles down to customers and imperils vital economic growth and recovery.
Third South Summit ends in Uganda with calls for deeper cooperation (Africanews)
The 3rd South Summit ended in Kampala on Monday (Jan. 22). It gathered high-level representatives from nearly 100 countries and heads of United Nations agencies. Uganda’s president called to keep promoting interests of the global south. “That the Group of 77 and China remains united in its pursuit of collective interests at the United Nations. In the inter-governmental processes of the United Nations, We must ensure that priorities of the Group are promoted and defended,” Yoweri Museveni said.
The South Summit is the supreme decision-making body of the Group of 77 (G77), which was established in June 1964. Since the 1990s, China has been coordinating and cooperating with the G77 through the “G77 and China” mechanism which is an important platform for developing countries to unite to strengthen themselves and coordinate to respond to challenges. Over the years, China has joined hands with other member countries to promote South-South cooperation to achieve new and greater progress.
Agriculture negotiations enter final straight as MC13 approaches (WTO)
At the first of this year’s agriculture negotiations meetings on 16-17 January, Ambassador Alparslan Acarsoy of Türkiye, the Chair of the talks, urged delegates to focus “more specifically and concretely” on potential outcomes at the upcoming 13th Ministerial Conference (MC13), which is due to be held in Abu Dhabi from 26 to 29 February. Participants also discussed new or revised submissions on export restrictions on food; agricultural production and trade in net food importing developing countries (NFIDCs) and least developed countries (LDCs); and domestic support to the agricultural sector.
DDG Hill stresses importance of IFD Agreement to foster sustainable development (WTO)
Deputy Director-General Johanna Hill on 22 January opened the webinar on the benefits of the Investment Facilitation for Development (IFD) Agreement, organized by the co-coordinators of the initiative, Ambassador Sofía Boza of Chile and Ambassador Jung Sung Park of the Republic of Korea. The event was the opportunity to hear from, and exchange with, renowned academics and representatives of leading international organizations who shared their experience and provided insights into the relevance and expected benefits of the IFD Agreement.
What the OECD’s latest data tells us about global aid in 2022 (Bond)
The Organisation for Economic Co-operation and Development’s Development Assistance Committee (DAC) recently published its final aid data for 2022, and it’s not good news for the world’s least-developed (LDCs) and low-income countries (LICs).
Their share of total Official Development Assistance (ODA) fell to its lowest level since 1996, while growing debt and increasing interest rates added to a challenging economic picture. Most attention will understandably be on unprecedented in-donor refugee costs, and support for Ukraine bringing headline ODA to new highs, but that’s not the whole story.
When aid spent in provider countries is removed, ODA disbursements to LDCs and other LICs (henceforth LDCs) were 3% lower in 2022 than in 2021. This is partly a result of support for COVID-19 control falling from its peak, but it also reflects a longer term trend. Excluding COVID support, cross-border aid to LDCs has been stagnant for around six years: in 2022, it was roughly $57 billion, broadly unchanged relative to 2017.
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South Africa must build renewable energy momentum, and then move on to other sectors (Engineering News)
The rapid pace at which South Africa is building renewable energy projects, driven by private sector investment, is viewed as positive in the global context, including at the recently held World Economic Forum’s (WEF’s) yearly Davos meeting, said business organisation Business Leadership South Africa CEO Busi Mavuso.
While there is an opportunity for South Africa amid a global context beset by risks, the momentum must continue, particularly the next steps to reform the electricity sector, including the establishment of an independent grid operator, she emphasised in her latest weekly newsletter, published on January 22.
South Africa must also demonstrate that electricity reform is not a one-off, with the logistics sector the next front for reforms to turn around the dismal performance of its ports and rail infrastructure, which are directly constraining economic output.
Mombasa, Dar cargo volumes keep rising with competition (The East African)
Cargo volumes at Mombasa and Dar es Salaam ports have grown amid intensified competition, with Mombasa touting its efficiency while Dar is offering what it describes as favorable terms. Tanzania this week announced the completion of the $420 million Dar es Salaam Maritime Gateway Project (DMGP) and plans to expand its maritime infrastructure as it opened storage for cargo destined to four East African Community (EAC) states. Kenya charges up to $1,200 more per 40-feet container passing through the port of Mombasa.
But the attractive package offered by the Dar port has seen it grapple with efficiency challenges, prompting the management to mull diverting cargo to the Bagamoyo Port.
Tanzania Ports Authority (TPA) Director-General Plasduce Mbossa said they planned the construction of six new berths in Dar and Bagamoyo through public-private partnership. Dar es Salaam Port’s current performance is low compared with Mombasa, Beira and Durban, forcing major shippers to skip it due to higher anchorage costs.
Influx of imports helps slash sugar prices to below Sh200 (Business Daily)
Sugar prices eased by about Sh5 per kilogramme to hit the lowest level in five months last November. The drop was driven by an influx of imports that helped offset a slowdown in local production.
Data from the Sugar Directorate shows prices eased to Sh213 per kilogramme on average during the month compared to Sh218 in October. The price of the sweetener has been on a steady decline from a peak of Sh224 per kilogramme in August, with the price currently below Sh200 in several supermarkets for some brands.
The price drop followed a significant jump in sugar imports, which increased by 51.3 percent to 90,759 tonnes in November, the highest since last March. As a result, the total quantity of sugar supply in the market including that produced locally hit 113,495 tonnes, also the highest since March and an increase of 37 percent from October.
Only eight counties enjoy quality services by the top telcos (Business Daily)
Only eight out of Kenya’s 47 counties on average enjoy the industry-set quality of services from local telcos Safaricom, Airtel and Telkom Kenya, pointing to the underlying gaps that exist in the country’s network coverage, at a time the penetration of mobile devices in the economy has grown to hit 127.8 percent or 64.7 million gadgets as of last September.
Latest data from the Communications Authority of Kenya (CA) shows that it is only in Nairobi, Mombasa, Kiambu, Nakuru, Lamu, Migori, Siaya and Nyamira counties that the three telco firms have attained a combined average of the required 80 percent score in Quality of Service (QoS) compliance levels.
Kenya Railways puts proposed Lapsset SGR cost at $16b; bulk on Isiolo-Nakodok line (The East African)
Kenya will need at least Ksh2.4 trillion ($16 billion) to construct a proposed Standard Gauge Railway (SGR) on the Lamu Port-South Sudan-Ethiopia-Transport (Lapsset) corridor, according to projections by the Kenya Railways Corporation.
According to the parastatal, it would cost Ksh523.05 billion ($3.49 billion) to build a 544.4 kilometre SGR link to connect Lamu and Isiolo and a further Ksh476.7 billion ($3.178 billion) to extend the line from Isiolo to Moyale over a distance of 475.9km.The largest spending would be on constructing the SGR line from Isiolo to Nakodok town on the border between Kenya and South Sudan over a distance of 753.2km at a cost of Ksh664.65 billion ($4.431 billion).
Kenya Railways has estimated that a further Ksh358.8 billion ($2.392 billion) will be required to link Isiolo and Nairobi via SGR over a distance of 278.6km and a further Ksh385.95 billion ($2.573 billion) for the 325.35km stretch between Lamu and Mariakani.
Uganda spending cuts, red tape add to contractors’ woes (The East African)
Spending cuts and delays in approving contractors’ claims pushed government arrears to more than Ush800 billion ($208 million) last year in a sign of tougher times faced by local engineering contractors. Domestic arrears accumulated by the Uganda National Roads Authority (UNRA) rose from Ush471.827 billion ($122 million) in financial year 2021/22 to Ush621.496 billion ($161 million) in financial year 2022/23.
Unpaid invoices held by UNRA, and the Ministry of Works and Transport have reportedly crippled local contractors’ operations amid severe cashflow constraints reflected in settlement of routine expenses such as employee wages, rent, bank loan repayment obligations, tax bills and construction material costs, The EastAfrican has learnt.
Recent budget cuts by various government ministries and departments are cited for the massive arrears incurred during the previous financial year in spite of huge budget allocations made to the works and transport sector.
Due to delayed government payments, some contractors have opted to undertake construction projects belonging to private organisations that offer a revenue margin of around 25 percent per project. Small construction projects financed by experienced individual investors in the housing sector usually offer a profit margin of five percent because of tight budgeting habits.
What you should know about Nigeria’s $3.3 billion crude oil loan from Afrexim Bank (Business Insider Africa)
Nigeria possesses over 35 billion barrels of untapped proven reserves, presenting an opportunity to generate necessary funding through methods such as forward sale financing. Lately, the $3.3 billion crude oil pre-payment loan has generated significant public and stakeholder interest recently, prompting NNPCL to address some related questions.
In forward sale financing for crude oil, an SPV agrees with NNPC Limited to sell future crude oil. The SPV secures funding from a bank based on the agreed sale value, often using future crude oil as collateral. NNPC Limited uses the sale proceeds for operational needs, while the SPV fulfils its financing obligations and returns any surplus to NNPC Limited.
Forward-sale contracts enable resource-producing companies like NNPC Limited to receive significant upfront funding for new projects before production and export. The funding can then be used for investments in existing and future resources, leading to increased oil and gas production and higher exports, resulting in more dollars and foreign currencies entering the country.
IMF reveals $400m exposure in Kenya fuel import deal (The East African)
The International Monetary Fund has estimated the taxpayers exposure to the fuel import scheme at around $400 million, which means the government-to-government (G-to-G) deal is not risk-free as touted. The IMF estimates the state’s contingent liabilities stemming from the letters of support issued to participants in the supply chain at 0.4 percent of GDP, said the IMF in the latest country report under the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) Arrangements. A contingent liability is a potential loss that may occur in the future depending on the outcome of a specific event.
In the case of the G2G mechanism launched in April 2023, the IMF says taxpayers are exposed to calls on the national budget in case prices at the pump are not adjusted to fully pass through any forex losses to the final consumers.
The African Development Bank and the United Kingdom have announced the selection of the Inclusive and Sustainable Development of the Cereal Sector Project in Tunisia, as a standard-setting project under the Room to Run Sovereign transaction (R2RS).
Approved in July 2023, this cereal sector project in Tunisia will strengthen the resilience of the cereals sector to external shocks and climate change. The project will benefit up to 250,000 cereal farmers in the country, boosting their food security and self-sufficiency. It is estimated that up to $35 million of the $87 million Bank financing corresponding to the climate adaptation component of the loan, has been unlocked by the UK Government guarantee, which increased the Bank’s overall lending capacity.
UN urges Ethiopia, Somalia to talk to solve dispute (Garowe Online)
United Nations Secretary-General Antonio Guterres on Sunday urged Addis Ababa and Mogadishu to open dialogue to settle their dispute over Ethiopia’s maritime deal with the breakaway region of Somaliland. ‘We are always guided by our principles and our principles are related to the unity, the sovereignty and territorial independence of countries, including Somalia,’ Guterres told a press conference at the G77 plus China summit in the Ugandan capital.
Nations urged to prioritize AfCFTA implementation (UNECA)
Africa renews its call to action as experts and government representatives gather to discuss the use of national and regional strategies for effective implementation of the African Continental Free Trade Agreement (AfCFTA). The conference, titled “AfCFTA Implementation Strategies: Towards an Implementation Peer Learning Community,” took place from January 15 to 17, 2024, and was organized by ECA in partnership with the AfCFTA Secretariat and UNDP.
Speaking at the conference in Nairobi, Kenya, Stephen Karingi, Director of Regional Integration and Trade at the Economic Commission for Africa (ECA), emphasized the transformative potential of AfCFTA for the continent.
he highlighted that the realization of this promise hinges on the effective implementation of the commitments undertaken by AfCFTA State Parties. Mr Karingi called on AfCFTA State Parties to adopt an urgent and expedited approach to implementing AfCFTA strategies, noting: “Implementation is primarily a national responsibility. Therefore, Governments must also be ready to finance the complementary policies and investments, especially from domestic resources, for its success.” This, he added, will foster the “much desired diversification of African economies, creating resilience to withstand economic, health and food security shocks.”
ECA Preparations for African Electric Mobility Regional Value Chains Kick-off in Rabat (UNECA)
The ECA office for North Africa launched on 16-19 January 2024 in Rabat (Morocco) a workshop on “Developing Regional Value Chains in E-Mobility for Zambia, Morocco, and the DRC.” This event was organised as part of an ECA project aimed at fostering the emergence of African electric mobility value chains by helping policy makers from the three countries acquire the technical know-how required to develop them.
“By fostering a collaborative ecosystem for the production, distribution, and maintenance of electric vehicles and their components, the Electric Mobility Regional Value Chain can create opportunities for employment creation, skills development and entrepreneurship, along with facilitating progress towards SDGs in Africa, said Zuzana Brixiova Schwidrowski, Director of the ECA office for North Africa at the meeting.
Beijing boosts use of Chinese yuan in Africa as nations move away from US dollar (South China Morning Post)
But it was in the southern nation of Zambia where BOC established its first African subsidiary, allowing customers to make deposits in and even withdraw Chinese yuan. Branches in both Lusaka and Kitwe, a mining town in the country’s northern Copperbelt region, serve the growing number of Chinese mining firms and immigrants. Recently, the lender also announced that its Zambian division would help to boost the use of the yuan for trade as part of China’s efforts to promote the Chinese currency in Africa.
“Actually, Bank of China is a local clearing bank and we will earnestly act upon our responsibility and leverage on our role in Zambia to support other African countries to provide holistic products and services related to the yuan and to promote the use of the yuan in bilateral trade and economic activities,” Lin said during his visit to Lusaka.
Africa in debt spiral as restructuring efforts drag on (The East African)
While the explosion of debt is throwing a shadow over global economic growth, experts warn that Sub-Saharan Africa, where several countries are already in default, is experiencing its worst-ever crisis. The rise in interest rates and over-indebtedness is already crimping the ability of countries to finance their development, as a number of African leaders emphasised at appearances at the World Economic Forum in Davos.
“Many developing countries in a desperate need for cash injection in their economies rushed to these low-cost loans, in markets with no rules or regulation,” said Kenyan economist Attiya Waris, who also serves as an independent expert for the United Nations.
Africa at Davos 2024: What the leaders and experts had to say (WEF)
Davos 2024 presented a timely opportunity to ring the alarm and delve into the policy and public-private partnerships that could rapidly scale the African economy. The meeting saw a keen focus on economic growth from African delegates and the launch of the Private Sector Action Plan, a first-of-its-kind initiative between the World Economic Forum and the African Continental Free Trade Area (AfCFTA) Secretariat. The initiative is comprised of 40 global companies.
Speaking at a session where panellists discussed the schism between the global North and South, Rwandan President Paul Kagame alluded to capacity building as one way to ensure that Africa remains up-to-speed with global developments, especially in times of crisis. We cannot address global inequality by mitigating crises as they happen. We need to involve developing countries from the beginning. There are tools available for Africa to deal with crises as well.
Enoch Godongwana, South Africa’s Minister of Finance, made a case for BRICS, the recently-expanded intergovernmental organization that comprises Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, the United Arab Emirates, Iran and Ethiopia. “The key issue is how do we mobilise savings in the south in order to ensure a better development agenda? That’s the most critical part. To do this there needs to be reform of the international, multilateral institutions,” he said.
According to a World Economic Forum’s Insight Report - AfCFTA: A New Era for Global Business and Investment in Africa - the free trade area, one of the world’s largest by number of people and economic size, is projected to host 1.7 billion people and oversee $6.7 trillion in consumer and business spending by 2030. Speaking at the African Economy of Scale session, Wamkele Mene, Secretary-General of AfCFTA, argued that the agreement has laid the ground for Africa’s potential to be unleashed.
Energy transition of fishing fleets Opportunities and challenges for developing countries (UNCTAD)
As more countries commit to net-zero emissions and include ocean-based climate action in their nationally determined contributions (NDCs), the energy transition of the fishing industry and its fleets is becoming a pressing issue. The fisheries sector is a contributor to greenhouse gas (GHG) emissions because of its heavy reliance on fossil fuels.
With agriculture and tourism, the fisheries sector is one of the three economic sectors most vulnerable to climate change. The main causes for concern are rising sea levels, warmer water temperatures and ocean acidification – and their impacts on fishing activities – particularly in least developed countries (LDCs) and small island developing States (SIDS).
While non-motorized fishing vessels are emissions free, artisanal fishers face fish stocks decline because of climate change. They need public support to adapt to climate change and improve their livelihood. On the other hand, motorized fishing vessels need support in shifting to renewable and clean energy resources. This applies especially to small-scale fishers. Policies to incentivize or mandate the energy transition of the fishing fleet cannot be designed without considering trade-offs and co-benefits.
WEF2024: What does the future hold for global trade? (Ventures Africa)
Trade makes the world go round. This sector is as old as time and has always been a core determinant of who gets a seat at the “World Powers” table. When global trade is troubled, the world is unsettled. That’s why it became worrisome when the World Trade Organisation halved its global goods trade forecast for 2023 to 0.8%. It’s a lot lower than the trend over the last two decades. COVID and the wars in Ukraine and the Red Sea have caused continuous supply shocks and made trade challenging. So, it’s no surprise that inflation, poverty and unemployment rates have risen in many countries.
At the World Economic Forum 2024, Dr Ngozi Okonjo-Iweala, Director-General of the World Trade Organization, said the world economy won’t experience recovery without trade and investment. The last time the global economy had high growth, trade was the engine behind it. Yet, she’s “less optimistic” about this year’s outlook for the sector. “…Going into this year, we were more optimistic, and we projected 3.3% [growth]. But the concerns about what is going on in the Red Sea and the Suez Canal and… climate change drought in the Panama Canal… make us slightly less optimistic,” she said during a panel held on Thursday, January 18th. “Nevertheless, it’s still better than last year.”
Red Sea shipping attacks pressure China’s exporters as delays, costs mount (Reuters)
The rupture of one of the world’s busiest shipping routes has exposed the vulnerability of China’s export-reliant economy to supply snarls and external demand shocks. In a speech at the World Economic Forum in Davos on Tuesday, Premier Li Qiang emphasised the need to keep global supply chains “stable and smooth”, without referring specifically to the Red Sea.
Some companies, such as U.S.-based BDI Furniture, have said they are relying more on factories in places such as Turkey and Vietnam to mitigate the impact of the disruptions, adding to recent moves by Western countries to reduce dependence on China amid geopolitical tensions.
At stake for China now is the danger that other firms will follow suit and reassess their de-risking strategy, opting potentially to shift production closer to home, an approach known as “near-shoring”. “If it’s permanent, and it could be permanent, then the whole mechanism will be readjusted,” said Marco Castelli, founder of IC Trade, which exports Chinese-made mechanical components to Europe. “Some (companies) may also consider moving more production to India, which is one week closer to Europe. Companies need to reevaluate everything.”
Mike Sagan, the Shenzhen-based vice president for supply chains and operations at KidKraft, said that “A lot of suppliers, they’re screaming about money today.” A worry for larger manufacturers, he said, is the snowball effect on smaller suppliers with tight margins, as they would be among the last to receive payments but are critical to the supply chain.
Europe, Africa crude market tightens on Red Sea disruptions, China demand (Engineering News)
Surge in wheat shipments bypassing Suez Canal, WTO Wheat Dashboard finds (WTO)
An increasing number of shipping vessels has been rerouted in the past two weeks to avoid the Suez Canal amid heightened security risks, causing a nearly 40% year-on-year drop in shipments of wheat through the Canal, to around 0.5 million metric tonnes, according to the WTO Wheat Dashboard.
It is estimated that around 76 million metric tonnes of grains, oilseeds and oilseed products are shipped annually from the European Union, the Russian Federation and Ukraine to Asia and Eastern Africa, representing 17% of global trade in those commodities.
Guterres urges G-77 and China to drive momentum for global governance reform (UN News)
More than 130 countries are members of the bloc - the largest grouping of the global South, representing 80 percent of the planet’s population – and their solidarity and partnership are essential to building a sustainable, peaceful, and just world for all, he said. “Let us face it: those that benefit most from the present global governance system are unlikely to lead its reform. So, momentum for change must come from you,” he told leaders. “I urge you to keep driving these efforts forward.”
He outlined many of the challenges facing the world today, including achieving the Sustainable Development Goals (SDGs) by the 2030 deadline as well as ensuring economic recovery from the COVID-19 pandemic, respect for human rights, and climate action.
“While South-South cooperation is strong and deepening, it does not replace the need for the respect of the commitments of the global North – for sustained engagement to reduce poverty and inequality, support growth, and build resilience in developing countries,” he said.
Ranked: The Most and Least Developed Countries in the World, 2024 (CEOWORLD magazine)