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Freight Logistics Roadmap approved to be published (SAnews)
The Freight Logistics Roadmap – aimed at addressing the serious challenges in that industry – has been approved for publication by Cabinet. The roadmap also sets out to reform the logistics system in the long run.
Over the past few weeks, Transnet – South Africa’s government owned freight rail, ports and logistics company – has been hard at work to resolve severe truck congestion challenges at its Richard’s Bay port, including ramping up the number of locomotives available on its lines servicing the port.
Speaking during a post-Cabinet media briefing on Monday, Minister in the Presidency Khumbudzo Ntshavheni said the current challenges in the industry “pose a significant constraint” on the South African economy, its growth prospects and job creation. “The immediate priority is to stabilise and improve the operational performance of the freight rail network, which presents a severe constraint on exports.
“In addition, the roadmap outlines a path to implement the commitments made in the National Rail Policy and the National Commercial Ports Policy and plans for the reform of the freight logistics system,” she said.
Port backlog likely to impact product availability across SADC region: NCRF (Eyewitness News)
As South Africa continues to count the cost of the congested cargo at the Durban port, the National Clothing Retail Federation (NCRF) said the impact on supply chains is starting to be felt beyond South African borders.An estimated 70,000 containers, some heavily laden with festive season goods, have been stuck at the port.
The retail federation’s Michael Lawrence said some countries in the Southern African Development Community (SADC) region, which rely heavily on goods imported through local ports, may experience empty shelves this Christmas season due to logistical backlogs. “We recognise there’ll be an impact in terms of product availability across the board, the consumer confidence here and what happens here has a substantive impact on whole of SADC region.”
Kenya to drop visa requirements for all African nationals on December 12 (CGTN Africa)
Kenya will abolish visa restrictions for all African nationals on December 12, President William Ruto announced Saturday as he continued his push for a visa-free continent. Ruto stated in his address at the Youth Connekt Africa 2023 Summit in Nairobi that he has long held ambitions to abolish visa barriers among Africans, whom he views as ‘one people’.
Those ambitions will be realised on Jamhuri Day when Kenya commemorates its independence from British rule. It would make Kenya only the fourth African country to implement visa-free entry policy after Seychelles, Gambia and Benin. Seychelles, one of the world’s major tourist destinations, was the first to do so in 2016.
The African Development Bank Group’s Board of Directors has approved a $66 million loan to the government of Tanzania for additional equity in Tanzania Agricultural Development Bank (TADB). The financing will enable TADB to strengthen its capital and enhance the structure and effectiveness of financial and non-financial services it offers to entrepreneurs in the agriculture and related value chains.
The Tanzania Agricultural Development Bank Phase II project will also receive $950,000 in technical assistance from the Affirmative Finance Action for Women in Africa (AFAWA) initiative to boost access to finance and related support to women in identified agriculture value chains. Additional technical assistance of $250,000 will come from the Africa Adaptation Acceleration Program (AAAP), a joint initiative of the African Development Bank and the Global Centre on Adaptation (GCA).
AFDB, FED sign $20mln Trade Finance agreement to support SMEs in Nigeria (ZAWYA)
The African Development Bank (AfDB) has signed a $20 million Trade Finance Facility Agreement with FSDH Merchant Bank, to support small- and medium-sized businesses in Nigeria’s industrial and manufacturing sectors. The facility consists of a $15 million Trade Finance Line of Credit to support SMEs and indigenous corporates and a $5 million Transaction Guarantee to support the confirmation of FSDH’s trade finance transactions.
Similarly, Ecobank Transnational Incorporated (ETI) has also inked a deal that will avail $200 million in sustainability-linked loan to the lender, with a group of five European Development Institutions namely Proparco, Norfund, FMO, DEG and EFP. For the $20 million facility availed to FSDH, the African Development Bank will guarantee up to 100percent of non-payment risks from letters of credit and similar trade finance instruments issued by FSDH under the Transaction Guarantee for the benefit of local import and export businesses.
The Board of Directors of the African Development Bank on Friday approved a partial credit guarantee of EUR 400 million to Senegal to facilitate the mobilization of the country’s inaugural sustainable financing to be exclusively allocated to green and social investments, in line with Senegal’s Sustainable Financing Framework.
The financing by the Republic of Senegal will be in the form of a sustainable loan or loans for an amount of up to EUR 500 million. The Bank’s guarantee enables financial establishments that are considering financing the operation to be protected against losses resulting from Senegal’s failure to pay principal and interest on this loan up to EUR 400 million. This guarantee is approved at a time when financing costs for African sovereigns have increased significantly, following the tightening of international monetary policy.
New intra Africa trade platform targets 3,000 Kenyan businesses (Citizen Digital)
The Business to Business (B2B) platform christened Zandaux.com will be officially launched on 13th December 2023 in Kenya, South Africa, Nigeria and Egypt consecutively, is set to reshape the landscape of African trade by providing a seamless One Stop trading platform for businesses to connect, collaborate, and thrive across the continent. Obambi-Ngatse has termed the platform as Trade Facilitator and Catalyst for Economic Progress by facilitating seamless connections, fostering collaboration, and driving economic growth across the continent.
In a groundbreaking development for regional trade, the East African Community (EAC) Secretariat today unveiled a new mobile application (App) dedicated to the elimination of Non-Tariff Barriers (NTBs) – the EAC NTBs App. This innovative App is set to revolutionise the region’s trading landscape by streamlining the reporting, monitoring, and resolution of impediments traders face as they conduct business across borders. The development of the EAC NTBs APP was funded by the Netherlands through TradeMark Africa (TMA).
23rd edition of the EAC MSMEs Trade Fair officially kicks off in Bujumbura (EAC)
The 23rd Edition of the EAC Micro, Small and Medium Enterprises (MSMEs) Trade Fair, popularly known as the Jua Kali/Nguvu Kazi Exhibition, was officially opened today by the Vice President of the Republic of Burundi, H.E. Prosper Bazombanza. Vice President Bazombanza said that the trade fair was a testament to the progressive success of economic and commercial integration among the EAC Partner States, emphasising its role in bridging technological gaps among artisans, micro-entrepreneurs and small and medium-sized enterprises in the region.
“This Trade Fair opens new market horizons for our artisans’ products and, at the same time, bridges the technological gaps that still exist among them through experience and knowledge sharing,” said the Vice President.
The 64th Ordinary Session Of Ecowas Authority Of Heads Of State And Gov-ernment Holds In Abuja (ECOWAS)
The 64th Ordinary Session of the ECOWAS Authority of Heads of State and Government opened on Sunday, December 10 at the Presidential Villa, Abuja, Nigeria. In his opening statement, H.E. Bola Ahmed Tinubu, the Chairman of the ECOWAS Authority of Heads of State and Government and President of the Federal Republic of Nigeria, urged West African leaders and Heads of Government to prioritize good governance for the people, as it serves as a catalyst for socio-economic transformation and development.
President of the ECOWAS Commission, H.E. Dr. Omar Alieu Touray reported that there had been violations of the sanctions imposed on the affected countries as there had been a massive movement of cash by individuals across borders and a high volume of transit goods through Burkina Faso to reach the territory of Niger and smuggling through porous borders and inland waterways.
The ECOWAS Commission President said the Commission had signed several financing agreements with development partners including seven agreements with the European Union covering areas of trade, migration, energy and agriculture amounting to 212 million Euros.
ECA’s Economic Report on Africa/ERA 2023: Building Africa’s Resilience to Global Economic Shocks (UNECA)
Climate-induced catastrophic events have led to severe humanitarian crises in Africa. Between 2000 and 2022, a total of 407.5 million people in Africa were affected by natural disasters. During this time, 4.2 million people became homeless, 53,610 people died and 52,205 were injured. This is according to the Economic Report on Africa 2023 (ERA2023) which will be launched on December 18, 2023, in Abuja, Nigeria.
Titled: “Building Africa’s Resilience to Global Economic Shocks”, the report shows that climate shocks generally are highly correlated with the cyclical component of GDP growth and not with the long-term trend in Africa, which suggests that part of the volatility observed in growth emanates from climate-induced shocks.
The report calls among other for a development strategy for countries that “leverage their natural resource endowments in a manner that stimulates economic growth while gradually reducing the intensity of carbonization associated with economic activity, especially production, transport and consumption”. This requires embracing green industrial policy at the core of the design and implementation of national development strategy.
Africa seeks to accelerate the establishment of African Union Financial Institutions (AU)
The African Union is convening a consultative forum to assess the implementation of the African Union Financial Institutions (AUFIs). The meeting scheduled for 13- 15 December 2023 in Lusaka, Zambia will look into the economic and political challenges impeding the Member States ability to sign and ratify legal instruments establishing the financial institutions, constraints that restrain the continent to collectively pool their sovereignty in order to mutualise their efforts and resources for the establishment the AUFIs. The forum will also formulate a strategy to generate the much-needed consensus and enhanced political will on key issues, and galvanize the momentum towards the establishment of the AUFIs.
The progress made however remains insufficient to establish the AU Financial Institutions within the required timeframe. Member States are encouraged to take ownership and extend the political will to accelerate the implementation process. The establishment of African Union Financial Institutions can contribute significantly to the economic development, stability, and prosperity of the continent.
Decentralising PAPSS: Building a resilient Africa-owned cross-border payment system (MyJoyOnline)
Efficient operationalization of the African Continental Free Trade Area (AFCTA), was beset with lack of a robust financial transaction platform. PAPSS is a centralised payment and settlement system that was launched by Afreximbank with the support of the AfCFTA Secretariat. PAPSS is created to enable individuals, businesses and governments to make instant cross-border payments in over 40 different African currencies. It’s hoped that it’ll reduce the need for US dollars and other hard currencies and thereby simplify cross-border trade.
The Group Executive Director of AFCFTA Policy Network, Louis Yaw Afful, says he’s not surprised the traders have no idea how to transact on the platform. “I wouldn’t be surprised if it hasn’t gotten to them. AFCTA hardly does decentralized programmes and some of the players have not gotten the message well. He said, “If they’re not bankable traders, it’ll be very difficult for them to benefit from the PAPSS. If the traders have these banks, they don’t need to carry cross-border currency. All they need to do is to instruct their bankers and the recipients will receive in the resident currency,” he said.
President Ruto urges African Nations to address trade barriers hindering youth entrepreneurship (Capital News)
President Ruto asked the youth in Africa to take the lead in championing environmental protection through innovation. The President said by creating a conducive environment for entrepreneurship, Africa will expand opportunities for its youth, transforming their ideas into thriving cross-border businesses.
State commits to empower women in AfCFTA (Tanzania Daily News)
Zanzibar’s First Vice President, Othman Masoud Othman has said that African countries are committed to empower women economically through their participation in the African Continental Free Trade Area (AfCFTA). The VP made the remarks yesterday at the official closing of the Second Conference on Women in Trade in AfCFTA held in Dar es Salaam.
He said such platforms facilitate the collective economic wellbeing of women. He said the three- day conference discussed on how Africa needs to simplify investment and create conducive environment of empowering women in trade in order to generate more employments and attain sustainable development.
Representing AfCFTA Executive Secretary in the conference, Prudence Zebahizi said AfCFTA Secretariat has signed an agreement with United Bank of Africa (UBA) to secure 6 billion US dollars for empowering and strengthening African women’s capacity in trade.
AfCFTA Adjustment Fund: $1b mobilised, $10b targeted to support SMEs – Wamkele Mene (MyJoyOnline)
The Secretary General of the African Continental Free Trade Area (AfCFTA), Wamkele Mene has revealed that the AfCFTA Adjustment Fund has mobilised over $1 billion. The Adjustment Fund will support countries and private entities through financing, technical assistance, grants and compensation funding in their transition to the new trading regime. The fund will also help mitigate any negative impacts that may arise during this process. By providing targeted support, the Fund aims to ensure that no country is left behind and that the benefits of the AfCFTA are shared equitably and in a sustained manner across the continent.
Speaking at AfCFTA Conference on Women in Trade held in Dar es Salaam – Tanzania, Wamkele Mene disclosed that “we have mobilised over $1 billion with the support of Afreximbank and we intend to mobilise $10 billion to ensure that the AfCFTA Adjustment Fund reaches millions and millions of Africans, particularly SMEs that wish to trade under the rules of the AfCFTA”.
AfCFTA offers the biggest sign of hope for Africa despite slow progress (GhanaWeb)
The African Continental Free Trade Area (AfCFTA) is offering the biggest sign of hope for Africa to bring significant economic and social gains for the African people. As part of AfCFTA’s first phase, which took effect in January 2021, it would gradually eliminate tariffs on 90 per cent of goods and reduce barriers to trade in services, the Director of Trade in Goods and Competition at the AfCFTA Secretariat, Mohamed Ali told participants at a three-day ECOWAS regional multi-stakeholder forum on AfCFTA.
The Managing Director for Development Policy and Partnerships, World Bank, Mari Pangestu noted: “The AfCFTA comes at a critical time when regional cooperation is needed to navigate compounded risks and enhance the resilience of supply chains, to support green, resilient and inclusive growth in Africa”.
Economists are of the view that a significant integration beyond trade and trade facilitation measures, that harmonises policies on investment, competition, e-commerce, and intellectual property rights could boost market efficiency and competitiveness, reduce regulatory risks, and attract even more foreign direct investment.
COP28 updates
New COP28 draft text does not mention phase out of fossil fuels (Reuters)
The U.N.’s climate body on Monday published its latest draft text of the deal it hopes to reach at the COP28 summit in Dubai, which includes a range of actions countries could take to reduce emissions. The list did not refer directly to a phase out of fossil fuels. The relevant section of the text said that parties recognize “the need for deep, rapid and sustained reductions in GHG (greenhouse gases) emissions and calls upon Parties to take actions.
Stop ‘kicking the can down the road,’ UN chief urges COP28 deal on phaseout of fossil fuels (UN News)
As COP28 entered its final 48 hours, the UN chief delivered a clear message to government negotiators: “We must conclude the conference with an ambitious outcome that demonstrates decisive action and a credible plan to keep 1.5-degree goal alive, protecting those on the frontlines of the climate crisis.”
Negotiators are engaged in intense negotiations to hammer out a deal on key agenda items including the future of the use of fossil fuels, ramping up renewable energy, building resilience to climate change and ensuring financial support for vulnerable countries. And yet, with COP28 so close to the finish line, there is still a “gap that needs to be bridged, said the Secretary-General.
Against this backdrop, he noted that “now is the time for maximum ambition and maximum flexibility. Ministers and negotiators must move beyond arbitrary red lines, entrenched positions and blocking tactics,” he said.
COP28 and International Energy Agency reaffirm 1.5°C-aligned energy transition (COP28)
The COP28 Presidency and the International Energy Agency (IEA) High-Level Dialogues concluded with strong consensus on the key elements needed for the energy transition. The fifth and final Dialogue, held during COP28 in Dubai, was attended by over 40 high-level leaders, including Heads of State and Government, Heads of Delegation and business leaders. It marks a significant achievement for the co-Chairs, COP28 President Dr. Sultan Al Jaber and Dr. Fatih Birol, Executive Director of the IEA.
Global annual finance flows of $7 trillion fueling climate, biodiversity, and land degradation crises (UN Environment)
Investing in nature-based solutions provides a strategic and cost-effective avenue to address the interconnected challenges of climate change, biodiversity loss, and land degradation while at the same time making tangible headway towards the sustainable development goals,” said Jochen Flasbarth, State Secretary in the German Federal Ministry for Economic Cooperation and Development, which funded the report. Close to $7 trillion is invested globally each year in activities that have a direct negative impact on nature from both public and private sector sources - equivalent to roughly 7 per cent of global Gross Domestic Product (GDP) - according to the latest State of Finance for Nature report released today at COP28 by the UN Environment Programme (UNEP) and partners.
The amount of climate finance flowing to agrifood systems is strikingly low and continues to diminish compared to global climate finance flows, a new report by the Food and Agriculture Organization of the United Nations (FAO) warns. This is happening at a time when more financing is urgently needed to help reach the goals of the Paris Agreement and support the implementation of the United Arab Emirates Declaration on Sustainable Agriculture, Resilient Food Systems, and Climate Action signed by over 150 world leaders.
Between 2000 and 2021, climate-related development financial support for agrifood systems amounted to $183 billion, with more than half of the funding delivered after 2016. However, in 2021, contributions plummeted to $19 billion, a 12 percent decline compared to 2020.The most affected region was Asia, with a sharp drop of -44 percent compared to 2020. Africa and Europe experienced a mild increase of 4 percent, while Latin America and the Caribbean saw a modest increment of 6 percent.
The report mentions that according to a recent analysis from the Climate Policy Initiative, only 4 percent of global climate finance went to agrifood systems between 2019 and 2020. To transform agrifood systems and achieve not only climate action but all the Sustainable Development Goals (SDGs), nations would need to mobilize about $680 billion a year until 2030.
COP28: FAO launches global roadmap process to eradicate hunger within 1.5°C limits (FAO)
The Food and Agriculture Organization (FAO) initiated the process for the development of a groundbreaking global roadmap aimed at eliminating hunger and all forms of malnutrition without exceeding the 1.5°C threshold set by the Paris Agreement.
Unveiled at the United Nations Climate Conference COP28, the Global Roadmap for Achieving Sustainable Development Goal 2 (SDG2) without Breaching the 1.5°C Threshold outlines a comprehensive strategy spanning the next three years that encompasses a diverse portfolio of solutions across ten distinct domains of action.
The roadmap identifies 120 actions and key milestones within ten domains, supported by evidence gathered by FAO over several years. These domains include clean energy, crops, fisheries and aquaculture, food loss and waste, forests and wetlands, healthy diets, livestock, soil and water, and data and inclusive policies — the latter two identified as overall systemic enablers.
IRENA-WTO report highlights role of trade in developing green hydrogen markets (WTO)
A joint report by the International Renewable Energy Agency (IRENA) and the WTO published on 9 December provides insights into global hydrogen trade and policies for scaling up production. Hydrogen produced exclusively from renewable power — known as green hydrogen — is widely recognised as a key pillar in replacing fossil fuels and decarbonizing sectors that cannot easily be electrified, such as some industrial processes, shipping and aviation.
Our voices and needs must be put first in climate talks, young people tell COP28 (UN News)
With negotiations on curbing global warming and the future of fossil fuels generating the most buzz as the latest UN climate conference heads towards the finish line – COP28 is scheduled to wrap up next Tuesday – young people and children grabbed the spotlight today.
In the lead-up to the conference, the UN released a string of dire reports confirming that our planet is at a tipping point. The latest survey from the UN weather agency, WMO, said that greenhouse gasses have “turbo-charged a dramatic acceleration in ice melt and sea level rise.”
The world is home to 1.8 billion young people between the ages of 10 to 24 – the largest youth generation in history. They are increasingly vocal and aware of the risks posed by the climate crisis, and they took the center stage today the Al-Waha theater in Dubai’s Expo City.
COP28: African Development Bank garners significant global support for climate action in Africa (AfDB)
The African Development Bank Group’s initiatives towards building a climate-resilient Africa drew significant support at the 2023 UN Climate Change Conference (COP28), garnering donor commitments and global partnerships. The Bank has launched several flagship initiatives to help African countries implement the Paris Agreement on Climate Change and achieve the Sustainable Development Goals. The programmes will also ensure that the continent’s growth builds prosperity along a decarbonized, climate-friendly, environmentally sustainable, and socially inclusive path.
In the first week of COP28, the Bank and its partners mobilized over $175 million for the Alliance for Green Infrastructure in Africa (AGIA) to help advance the programme toward its first close of $500 million of early-stage project preparation and development capital. The Alliance, launched at COP27, is a partnership of the African Union Commission, the African Development Bank, Africa50 and other global partners. It works to unlock up to $10 billion in private capital for green infrastructure projects and galvanise global action to accelerate Africa’s just and equitable transition to Net-Zero.
Cop28: Sustainable trade key for Africa growth plans (KBC)
Kenyan business leaders have called on their African counterparts to adopt policies that will ensure continental intra-trade is sustainable and enterprises turn profitable in the long term. This comes as trade within the continent is expected grow with the coming of the African Continental Free Trade Area (AfCFTA).
“Trade itself has a very huge carbon footprint because it is about movement and the consumer has also not been fully responsible for sustainability and essentially the wealth generated by trade has not evenly distributed as result we have jeopardized sustainability from a social perspective,” said Dr James Mwangi, Equity Group Chief Executive Officer during the COP28 Sustainable Trade for Africa event in Dubai, United Arab Emirates.
African Small Island Developing States press for adaptation finance to fight climate change (UNCEA)
African Small Island Developing States (SIDs) have pressed for adaptation finance to fight climate change impacts threatening livelihoods and their future survival. They made the call during a side event held by the African Island State Climate Commission (AISCC) on the theme, ‘Transitioning to a Climate Resilient Future.’
Seychelles Minister of Agriculture and the Environment, Flavian Joubert, stressed that African SIDS are particularly vulnerable to climate change shocks, making it imperative for immediate action to protect people, economies and the environment. Mr. Joubert, whose country is the chair of the African Islands States Commission, called on major emitters to develop more ambitious plans to keep the goal of limiting global warming to 1.5 Degree Celsius.
“We need to find common ground and expect outcomes from the negotiations on the global goal for adaptation and that should not lead to further delays in strengthening adaption action, particularly for African Island States.”
UNCTAD: Global trade projected to decline by 5% in 2023 (Trade Finance Global)
On Monday, the United Nations Conference on Trade and Development (UNCTAD) announced in its Global Trade Update a forecasted reduction in global trade by 5% this year compared to the previous year, expressing a generally negative outlook for 2024. The report estimates that this year’s global trade value will be around $30.7 trillion. It predicts a decrease in goods trade by about $2 trillion, or 8%, in 2023. However, trade in services is anticipated to grow by approximately $500 billion, an increase of 7%.
UNCTAD said, “Global trade has experienced a decline throughout 2023, primarily influenced by diminished demand in developed nations, underperformance in East Asia economies, and a decrease in commodity prices.” “These factors collectively contributed to a notable contraction in the trade of goods.”
UNCTAD said the forecast for global trade in 2024 remained “highly uncertain and generally pessimistic.” “While certain economic indicators hint at potential improvements, persistent geopolitical tensions, high levels of debt, and widespread economic fragility are anticipated to exert negative influences on global trade patterns,” it said.
UNCTAD eWeek charts a sustainable and inclusive path for the digital economy (UNCTAD)
UNCTAD eWeek 2023, held in Geneva and online from 4 to 8 December, united more than 3,500 participants from 159 countries to outline actions needed to turn digital opportunities into shared and sustainable progress. eWeek 2023 addressed critical issues such as governing digital platforms and artificial intelligence (AI), promoting eco-friendly digital practices, empowering women in the digital economy and enhancing developing countries’ digital readiness.
Participants echoed a clear call: Scale up global efforts to boost digital readiness and establish effective governance frameworks. Shaping a better digital future for all hinges on a collective commitment and inclusive, global collaboration.
Members call for further intensive work to deliver on fisheries subsidies by MC13 (WTO)
At the close of the final Fish Week of the year held on 4-8 December, WTO members affirmed their commitment to the fisheries subsidies negotiations and remained hopeful to successfully conclude the talks by the 13th Ministerial Conference in February despite not being in a position to do so by December. Director-General Ngozi Okonjo-Iweala and Ambassador Einar Gunnarsson of Iceland, the chair of the fisheries subsidies negotiations, lauded members’ constructive engagement on new disciplines on subsidies contributing to overcapacity and overfishing.
Global Migration in the 21st Century: Navigating the Impact of Climate Change, Conflict, and Demographic Shifts (World Bank)
Globally, approximately 184 million people, or 2.3% of the world population, live outside their country of citizenship. This highlights the growing complexity of human mobility, which will increasingly be driven by factors like climate change, conflict, divergent demographic trends, and income inequality. These forces are not only pushing more people to relocate for better opportunities but also presenting growing challenges and opportunities for migration policy across various levels of development in the decades to come.
While empirical studies show positive impacts of migration on labor markets, business performance, and health outcomes in host countries, public opinion often views immigration with apprehension and fear. While destination countries grapple with the trade-offs of hosting migrants, origin countries face challenges such as brain drain and education system costs. With migration expected to increase, effective policy-making is crucial in both origin and destination countries.
UN launches $46 billion appeal to respond to worsening crises in 2024 (UN News)
As conflicts, climate emergencies and collapsing economies continue to wreak havoc on communities worldwide, the UN on Monday issued an appeal for $46.4 billion for 2024 to help 181 million people facing catastrophic hunger, mass displacement and diseases worldwide.
Launching the Global Humanitarian Overview , Martin Griffiths, UN Emergency Relief Coordinator, praised the heroic efforts of humanitarians but emphasized that international support is falling far short of the escalating needs. “We thank all donors for their contributions, which amount to $20 billion so far this year – but that is just a third of what was needed,” he stated.
