News
tralac Daily News
South Africa initiates second dispute complaint regarding EU citrus fruit measures (WTO)
South Africa is challenging the EU’s prohibition on the importation of South African citrus fruit affected by the fungus “citrus black spot” (Phyllotactic citricarpa). South Africa claims the EU measure appears to be inconsistent with various provisions of the WTO’s Agreement on Sanitary and Phytosanitary Measures. This is the second dispute case initiated by South Africa regarding the EU’s import measures on citrus fruit. In July 2022, South Africa initiated a case challenging EU phytosanitary requirements for the importation of oranges and other citrus products related to the pest Thaumatotibia leucotreta, known as false codling moth.
Creativity, innovation keep South Africa’s mining tech manufacturing industry competitive (Engineering News)
An admirable degree of creativity exists within the South African mining technology and equipment manufacturing sector, giving manufacturers the necessary flexibility to weather the significant challenges over the past few years, Mining Equipment Manufacturers of South Africa CEO Lehlohonolo Molloyi has said. He was speaking as part of a panel in a webinar hosted by Creamer Media and sponsored by ABB, AECI Mining, Astron Energy and Epiroc, on April 24.
“I think there is resilience among South African manufacturers, amid all the challenges that we have,” Molloyi said, pointing out how the industry has managed to survive through ongoing electricity shortages, national logistical constraints and poor commodity prices, particularly in coal and platinum group metals. “It’s been tough for a lot of manufacturers to be able to sustain their businesses. However, as an industry cluster, we haven’t lost one member during all this time where there’s been such challenges in the industry.
TotalEnergies Eyes South Africa Fuel Trade With Imports Surging (Oil & Gas Jobs and News)
French oil major TotalEnergies SE plans to expand fuel trade with South Africa after a wave of refinery shutdowns sent imports soaring. Africa’s most industrialized nation has long relied on fuel from abroad, but demand has grown in recent years as a string of refineries suspended output. The shortage “has become massive,” Thomas Waymel, the company’s senior vice president of trading and shipping, said in Cape Town on Tuesday. South Africa now meets 80% of its fuel requirements with imports, he said. Total is well-placed to boost its presence in the country, where it has storage depots and plans a tie-up with local firm Zambo Energy to supply products.
The gold trade in Uganda makes a huge comeback (Business Insider Africa)
Tax issues had hampered the Ugandan gold trade, an industry said to be raking in 44% of Uganda’s export income, at one point, according to the Bank of Uganda. Back in May 2023, it was reported by the Ugandan Parliamentary Committee on Finance, Planning, and Economic Development, that Uganda has lost out on Ush600 billion ($160.77 million) in uncollected tax from the export of gold goods since July 2021 because of a dispute with exporters and refiners over levies. However, a recent report seen in the Ugandan newspaper, The Monitor notes that the gold trade has rebounded dramatically, earning the country an average of $228.4 million per month, in the twelve months leading to February.
Fostering innovation and integrity: Kenya’s path to be a model for Africa’s online commodity trading (The East African)
In recent years, the commodity market has emerged as a critical trading avenue. While prospects for other trading options have never looked more uncertain, commodities have not only weathered the storm but enjoy a particularly sunny outlook. The worldwide commodities market is expected to reach a nominal value of more than $131 billion before the end of 2024. With a forecasted growth rate of 1.49 percent, the market value is expected to soar beyond $139 billion by 2028.
More than many other countries, Kenya looks set to benefit from this boom time for commodities, with the country’s favorable geography putting it in prime place for international trade. However, there’s far more to the soaring popularity of commodities trading than this. An evolving regulatory framework, considerable outside investment, and a younger demographic with an appetite for online trading are all driving the trend.
Business leaders chart course for Tanzania’s digital economy (The Citizen)
Tanzania’s plan to build a digital economy has gained traction as members of the business community renew impetus to boost investment in the digital economy sector. This comes as the government has been calling upon all stakeholders from the private sector to support the endeavour as it strives to make the environment conducive, including launching the Tanzania Data Protection Commission (TDPC) recently.
Speaking at the 11th edition of the Impact-Business Breakfast on April 24, 2024, business leaders highlighted specific areas to focus on to realise this ambition. The breakfast meeting, themed ‘Intersection between Technology and Human Capital for Business Growth’, brought together technology enthusiasts, business owners, and economists.
Wheat farmers propose power tariff reduction (The Herald)
Wheat farmers have commended Government’s recent initiative to reduce water charges by 31 percent and called for a similar reduction in electricity tariffs to further encourage farmers into allocating more land to wheat cultivation. This comes after Government instituted a raft of measures aimed at motivating wheat production for self-sufficiency and export.
Zimbabwe Farmers Union (ZFU) secretary general Mr Paul Zakariya said in order to ensure profitability in the wheat sector, production costs must significantly decrease. “Reduction of water tariffs is one of the factors that will help turnaround the fortunes of our producers. The same should be extended to energy,” he said. Food Crop Contractors Association (FCCA) chairman, Mr Graeme Murdoch said any steps taken to reduce the high cost of production were appreciated and would assist in improving farmer viability.
Seychelles’ national IP strategy under development, says trade official (Seychelles News Agency)
A national strategy for intellectual property (IP) is currently being developed for Seychelles and once completed it is expected to guide all application of the law and policies regarding intellectual property going forward, said a top official on Monday. The principal secretary for trade, Francis Lebon, made the statement at the opening of a three-day workshop to get the feedback of different stakeholders done jointly with the Department of Trade and experts from the African Regional Intellectual Property Organisation (ARIPO).
“We want to ensure that Seychelles has an IP strategy in place that is strong and is developed with enough foresight to help the development of our economy,” he said. “Intellectual property is relatively new to Seychelles, there are a lot of frameworks that need to be set in place. It is something that cannot be put to the side. The protection of intellectual property is important for all aspects of economic development. We are ensuring that all bases are covered and are linked to each other properly.”
COMESA Supports Zambia Launch its Green Growth Strategy (COMESA)
The Government of Zambia, in collaboration with COMESA and various development partners, has launched the National Green Growth Strategy (GGS). This strategy aims to drive the country towards sustainable development, prioritizing environmental sustainability, economic growth, and social inclusiveness. Officially launched in Lusaka on Wednesday, April 24, 2024, by the Minister for Green Economy and Environment Hon. Eng. Collins Nzovu, the GGS is anchored on four pillars, namely resilient and climate compatible growth, enhanced resource efficiency, enhanced natural capital, and improved inclusivity.
Minister Nzovu said the Government has resolved to transition the country to a green economy, because the economic growth attained so far towards the vision of becoming a prosperous middle-income nation by the year 2030, has come at great cost to the environment, ecosystems and natural resources.
Gambia launches US$50M Digital Transformation for Africa (The Point)
The Ministry of Communication and Digital Economy of The Gambia has launched a staggering US$50 million Digital Transformation for Africa dubbed: Western Africa Regional Digital Integration Programme (DTFA/WARDIP) SOP-1, a regional digital programme. This is a groundbreaking regional initiative funded by the International Development Association (IDA), with active participation from esteemed organisations such as the African Union, Smart Africa, ECOWAS, and four key countries, including The Gambia, Guinea Conakry, Guinea-Bissau, and Mauritania. The above mentioned countries are beneficiaries to the digital programme.
In his launching statement, Ousman A. Bah, the minister of Communications and Digital Economy, said the initiative is designed to address critical challenges and unlock unprecedented opportunities in beneficiary countries’ digital landscape.
Nigeria, US to partner on AI, digital economy (CoinGeek)
Nigeria and the United States have pledged to collaborate in advancing the digital economy and emerging technology, including artificial intelligence (AI). Speaking after a four-day event focused on Nigeria’s AI strategy, Arthur Brown, the deputy chief of mission at the U.S. Embassy in Abuja, said: “We want to foster deeper partnerships and work together to create programmes and policies that will drive robust, resilient, and inclusive economic growth.” To deliver on the promise, the American government will co-host the U.S.-Nigeria Bi-National Commission within the next two weeks, Brown said. The event will bring together Nigeria’s leadership with high-level U.S. government officials, with AI at the top of the agenda.
Economic Report on Africa 2024 – Investing in a Just and Sustainable Transition in Africa (UNECA)
African countries face many economic, social, and environmental challenges. These global challenges render “business as usual” strategies unsustainable, and a new transformative approach is needed for a Just and Sustainable Transition (JST) in Africa, according to the Economic Report on Africa 2024.
The 2024 Economic Report on Africa themed “Investing in a Just and Sustainable Transition in Africa” was launched in Addis Ababa on 24th April 2024. The report analyses the opportunities and policies for Africa to build a just and sustainable economic system. For this to materialize, African countries need holistic development plans and strategies that fundamentally redirect their production, consumption, governance, technology, human capital, and financial systems.
Ms. Zuzana Schwidrowski, Director, Macroeconomics and Governance Division, UNECA, delivering the presentation on the report, highlighted that Africa has window of opportunity to undertake impactful JST guided by an African-informed narrative and needs. Factors such as youthful population, arable land, renewable resource endowments, huge deposits of strategic minerals, and latecomer advantages from emerging technologies position Africa to shape the sustainability transition at the global level.
Collaborate to reduce cost of trading under AFCFTA (GhanaWeb)
The West African Regional Director of CUTS International, Mr. Appiah Kusi Adomako, has urged Ghanaian SMEs to collaborate and build partnerships to reduce the cost of exporting and trading within the African Continental Free Trade Area. Mr. Adomako said Ghanaian SMEs face logistical challenges in trading. These challenges include the high cost of freight, unmotorable roads, and the non-existence of rail lines on the continent. This, according to him, makes it almost impossible for SMEs to trade under the AfCFTA. “SMEs that deal in the same goods should consider coming together so they can save on production and export costs under the AfCFTA,” he said. He further reiterated the importance of stakeholder collaboration to address the issue of trade logistics.
Greening the implementation of the African Continental Free Trade Area Agreement (UNECA)
African countries need to balance efforts to address these goals with the urgency of climate change. As of the 27th session of the Conference of Parties of the United Nations Framework Convention on Climate Change in 2022, most African countries had submitted their Nationally Determined Contributions (NDCs) to mitigate the impact of climate change. Establishing a carbon market is now on the policy agenda.
This analysis uses a dynamic general equilibrium model with different sources of energy (including renewable energy) and an in-depth presentation of greenhouse gas emissions to assess the economic and environmental impacts of implementing the AfCFTA Agreement and adopting various climate policies in Africa, including those NDCs and the International Monetary Fund’s proposal of carbon price floors. It shows that implementing the agreement and achieving Africa’s climate objectives are compatible. Continental coordination of emissions reduction among African countries proves most efficient for climate action.
Unlocking Africa’s $1trn food economy (WEF)
Global aid is crucial to realizing Africa’s $1 trillion food economy. It can help promote sustainable growth by targeting obstacles, enhancing resilience and unleashing the continent’s agricultural capabilities. Global aid is also vital for nurturing trade and economic integration, which are fundamental to Africa’s agricultural development agenda. The African Development Bank forecasts a potential surge in the food and agriculture market from $280 billion annually to $1 trillion by 2030. With a continuous demand and increase in Africa’s exports and imports regionally and internationally, there is a pressing need for global collaboration to prioritize food storage and transportation infrastructure in Africa to alleviate the food security crisis.
What Will It Take to Accelerate Access and Improve Lives? (World Bank)
Over half a billion people in Sub-Saharan Africa are at risk of being left behind without electricity access by 2030, with nearly 400 million of them living in countries subject to fragility, conflict, and violence. The World Bank Group has already begun efforts to deploy innovative financial and technical solutions that are essential for accelerating electrification rates that outpace population growth. Without access to reliable, affordable, and sustainable energy, the region will not reach its development aspirations or achieve an economic transformation that can lift millions out of poverty.
At this event, the World Bank Group, development partners, private sector representatives, and country ministers, discussed what it will take to scale up the solutions and investments that will help connect millions more Africans to electricity and transform African economies.
Ajay Banga, President of the World Bank Group, announced plans to ramp up electricity access for a quarter billion people in Sub-Saharan Africa, reaching nearly half the 600 million Africans currently without energy access by 2030. Akinwumi Adesina, President of the African Development Bank (AfDB), announced that AfDB will join this mission and help connect an additional 50 million people.
Sub-Saharan Africa’s Growth Requires Quality Education for Growing Population (IMF)
Demographic transition may be the biggest single opportunity for the economies of sub-Saharan Africa, but countries will only be able to enjoy the dividends if they make sufficient investment in education. The region’s population is poised to double to 2 billion by 2050. That expansion will be led by growth in the working-age population of those ages 15 to 64 that will outpace other age groups and drive almost all the increase.
Sub-Saharan Africa has made notable progress in expanding access to schools in recent decades, but outcomes in the region still trail those in other emerging market and developing economies, as we explore in our latest Regional Economic Outlook.
Africa’s $824Bn debt, opaque loans slowing growth (The Exchange Africa)
Africa’s immense economic potential is being undermined by non-transparent resource-backed loans that complicate debt resolution and compromise countries’ future growth, African Development Bank (AfDB) President Dr Akinwumi Adesina has said. Adesina at the Semafor Africa Summit taking place on the sidelines of the International Monetary Fund and World Bank 2024 Spring Meetings, highlighted the challenges posed by Africa’s ballooning external debt, which reached $824 billion in 2021, with countries dedicating 65 per cent of their GDP to servicing these obligations.
He said the continent would pay $74 billion in debt service payments this year alone, a sharp increase from $17 billion in 2010. ”I think it’s time for us to have debt transparency accountability and make sure that this whole thing of these opaque natural resource-backed loans actually ends, because it complicates the debt issue and the debt resolution issue,” Adesina told journalist Yinka Adegoke.
The Central African Economic and Monetary Community (CEMAC) has been hit hard by two shocks, just a few years apart. The first shock in 2015-16 was triggered by a sharp decline in oil prices—CEMAC’s main export proceeds and revenue source—just when many of these countries were ramping up public investment programs. CEMAC countries responded by putting together a coordinated effort relying on large fiscal adjustments under IMF- and World Bank Group-supported programs.
A large demand and supply shock ensued, exacerbated by the social and economic cost of mitigation measures to contain the contagion. This second crisis hit the region before fiscal and external buffers had time to fully recover from the previous one and threatened to erase the hard-won gains made since the previous shock. CEMAC authorities had been trying to set in motion a process to address the root cause of the region’s vulnerability—a largely undiversified economic basis overly dependent on oil.
The CEMAC Commission had put in place a large-scale strategy of CEMAC Economic and Financial Reform (PREF). This plan defines a set of reforms, organized around five pillars, to create the basis for more diversified, inclusive, private sector-led growth and enhanced governance of the public sector.
Tony Elumelu Foundation, partners unveil 2nd WE4A initiative at Uganda Business Forum (The Independent Uganda)
The Tony Elumelu Foundation (TEF) has this week launched the second instalment of the Women Entrepreneurs for Africa (WE4A) initiative. This groundbreaking initiative aims to empower women entrepreneurs across the continent by providing them with the necessary tools, resources, and mentorship to succeed in a dynamic business landscape.
The official launch of the second instalment of the WE4A initiative took place at the prestigious Ugandan-EU Business Forum in Kampala, a platform dedicated to fostering entrepreneurship and economic growth in Uganda and beyond. Women who are running businesses or have business ideas in Sustainable Agriculture and Agricultural Processing, Blue economy and Aquaculture, Renewable energy, Circular economy and waste management including biomass, and Eco-tourism are candidates for the WE4A programme.
Aviation Stakeholders Call for Collaboration to Improve Intra-regional Connectivity, Trade in Africa (This Day Live)
Aviation stakeholders in Africa have called for partnerships and the elimination of diplomatic boundaries to enhance connectivity among African countries in order to boost trade and create more jobs for teeming youths on the continent. The stakeholders who met with other aviation experts, suppliers, aircraft manufacturers and others from different parts of the world, yesterday, stated that Africa cannot develop airlines that would dominate the region and beyond unless existing airlines and governments decide to work together, encourage liberalisation to increase market share of African carriers and boost air travel in the region.
The experts met at the on-going MRO 2024 Conference, organised by the African Aviation Services, taking place at the Ethiopian capital, Addis Ababa from April 23 to 25, 2024.
Placing Farmers at the Core of Development Efforts is important to Achieve Food Security (UNECA)
As Africa races against time to meet the Sustainable Development Goals (SDGs) by 2030 and the Malabo Commitments to end hunger by 2025, the continent faces formidable challenges aggravated by climate change, inflation, and regional conflicts. The urgency to reevaluate financing mechanisms is increasingly recognized, with a growing emphasis on mobilizing domestic resources and exploring innovative financing solutions to bolster agricultural development.
In an event at the 10th African Regional Forum on Sustainable Development (ARFSD) held in Addis Ababa, a clarion call has been issued to policymakers to center their policies around the needs of farmers and enhance access to funding in the agricultural sector. The imperative to empower farmers and provide them with adequate financial resources is underscored as essential steps towards eradicating hunger, achieving food security, sustainable development, and realizing the broader objectives of the African Union Agenda 2063.
ECA urges African countries to adopt technological solutions to monitor their development strategies (UNECA)
To bolster national planning activities, policymakers have been urged to embrace digital tools to foster greater transparency, efficiency, and effectiveness. The call to action was made during the meeting on ”Leveraging Digital Technologies for Integrated Planning to Advance the SDGs and Agenda 2063 in Times of Multiple Crises”, which took place as a side event at the Tenth Session of the Africa Regional Forum on Sustainable Development (ARFSD-10).
Mr Antonio Pedro, Deputy Executive Secretary of the UN Economic Commission for Africa (ECA), stressed the importance of technology in supporting development planning systems. He said that while many countries do an excellent job of identifying their priorities through extensive stakeholders’ consultation, the number of identified priorities is often so numerous that implementation becomes a challenge.
See also: Development planning is a key transformative tool to strengthen resilience and sustainable development in Africa (UNECA)
“The problem of financing will remain unresolved so long as the rules and practices of global economic and financial governance obstruct access for our countries to sizeable resources on sustainable terms.” The above pronouncement by Senegalese President Macky Sall a year ago encapsulated the resounding plea echoing across Africa for a reshaping of the global financial architecture to better serve the continent’s developmental aspirations.
The current global financial architecture puts Africa at a significant disadvantage. Many African nations are burdened with debt and struggle to access concessional financing. The President of the African Development Bank Group, Dr Akinwumi A. Adesina, has been a vocal advocate, highlighting the mounting debt crisis and the hurdles in accessing concessional financing.
Lula argues that G20 priorities can contribute to Africa’s development (G20 Brasil 2024)
In a meeting with Akinwumi Adesina, president of the African Development Bank (AfDB), Lula reaffirms his commitment to strengthening Brasil-Africa relations. The Brazilian president wants to take advantage of the G20 to discuss debt redemption for African countries and boost development in the region. Reform of global, political, and financial governance institutions was also on the agenda. “We advocate that part of the debt owed by African countries to multilateral banks be transformed into investments in development,” said Brazilian President Luiz Inácio Lula da Silva during a meeting with Adesina on Tuesday, April 23rd, in Brasilia.
During the conversation, Lula highlighted the priorities of the Brazilian presidency of the G20 related to the development of the region and other countries of the Global South, such as the reform of international governance, and political and financial institutions. “We need to convince the world that if there isn’t some kind of development aid, the poorest countries will get poorer and the rich will get richer,” said the Brazilian president.
The side event at the G20 discusses how transitioning to ecologically sustainable practices can stimulate economic growth (G20 Brasil 2024)
Brazilian authorities unveiled the Ecological Transformation Plan, underscoring its alignment with G20 Brasil priorities. Concurrently, a forum side event delved into the synergy between ecological transformation and the economy, spotlighting their roles in fostering job creation, income generation, and enhancing living standards
During the event, Guilherme Mello, Secretary of Economic Policy at the Ministry of Finense, unveiled the Brazilian Ecological Transformation Plan, and elaborated on how this “ambitious plan” could serve as a significant asset in reshaping the economy while addressing the challenges of the climate crisis.
Women in international trade: B20 coordinates unprecedented G20 debate (G20 Brasil 2024)
In a workshop attended by 27 countries, the Business20 Engagement Group discussed the status and needs of women in the business world. According to data from the Brazilian Micro and Small Business Support Service (Sebrae) 45% of individual micro-enterprises in Brasil are run by women. When it comes to medium and large businesses, the percentage of women who own companies drops significantly. The International Trade Center (ITC) indicates that only 14% of exporting companies in the country are predominantly owned by women.
What can explain these figures and what is the role of States and the market in tackling this inequality? This was the guiding theme of the event “Women in Trade Initiative”, promoted by Business20 (B20) on Tuesday (23 April) in Brasília. “A greater participation of women in international trade has an impact in two ways: it generates an increase in innovation, productivity, improved economic benefits for companies and countries; and it brings greater economic empowerment to women themselves,” said Constanza Negri, chair of the B20.
Science and technology ministers have highlighted the need for governments to develop co-ordinated approaches to harness the opportunities of new and emerging technologies, while better managing future risks, at their ministerial-level meeting at the OECD.
Participants in the OECD Science and Technology Policy Ministerial 2024 – which drew high-level representatives from more than 50 countries – agreed on the need for policies to foster the development of and adaptation to technologies such as neurotechnology, synthetic biology and quantum technology.
In their final Declaration, Ministers called for transformative Science, Technology and Innovation (STI) policies to accelerate sustainability transitions and the embedding of shared values in international co-operation and technology governance, alongside policies to make STI more inclusive.
BRICS Expansion Will Change the Global Economy: Expert (Watcher Guru)
De-dollarization is the main agenda and topic of discussion in the upcoming BRICS 2024 summit in October this year. The 16th summit will be held in the Kazan region of Russia where new members the United Arab Emirates, Egypt, Iran, and Ethiopia will also be a part of the grouping. The summit will also plan on expansion making BRICS to become bigger and financially stronger. BRICS will discuss new ideas to put local currencies first for cross-border transactions and not the US dollar.
More than 40 developing countries have formally expressed their interest in joining the alliance. Therefore, the 10-member bloc will decide on BRICS expansion in the October summit in Russia. The expansion is based on consensus and all members will jointly decide on who is let in and which country needs rejection.
Related BRICS news:
Russian Deputy Foreign Minister Sergey Ryabkov: BRICS moves forward, creating important precedent (China Daily)
BRICS Would Provide Opportunity to CSOs for Having Critical Engagement (Walta)
The Integrated National Financing Framework (INFF) Facility launched its flagship report, ‘Making Finance Work for People and Planet: How Countries are Building their Sustainable Finance Ecosystem through Integrated National Financing Frameworks’ at an event on the sidelines of the ECOSOC Financing for Development Forum in UN HQ New York. The report underscores the crucial role of country-led, impact-oriented financing strategies in accelerating progress toward the Sustainable Development Goals (SDGs).
According to the report, INFFs are proving instrumental in building a more sustainable, inclusive financing ecosystem at the country level and can be seen as one of the key successes of the 2015 Addis Ababa Action Agenda where they were first introduced.
LDCs global trade in goods drops sharply in 2023 (The Financial Express)
The value of the global merchandise exports of the Least Developed Countries (LDCs) dropped by 4.60 per cent to US$ 256 billion last year from US$ 269 billion in 2022. The drop made the share of LDCs in world exports at 1.10 per cent last year which was almost similar in 2022.
Merchandise imports of LDCs also dropped to $316 billion from $355 billion during the period under review. Thus merchandise imports of the LDCs declined by 11.0 per cent. As a result, the share of LDCs in world imports dropped from 1.45 per cent in 2022 to 1.30 per cent in 2023. Global Trade Outlook and Statistics, released by the World Trade Organization (WTO) in the second week of this month, unveiled the statistics.
“The impact of the 2023 trade slump on LDCs is a matter of concern since these countries have limited resources to deal with global economic shocks,” said the WTO report. “The drop in merchandise exports of LDCs last year was in 19 line with the decline at the world level, but the contraction on the import side was larger, limiting consumption possibilities for LDCs,” it added.
Quick links
The US is one of the least trade-oriented countries in the world – despite laying the groundwork for today’s globalized system (The Conversation)
The WCO Smart Customs Project Launches Global Survey on Disruptive Technology Adoption in Customs (WCO)
The Bloc Effect: International Trade with Geopolitical Allies on the Rise (Visual Capitalist)
Global Commodity Prices Level Off, Hurting Prospects for Lower Inflation (World Bank)
Rapid expansion of batteries will be crucial to meet climate and energy security goals set at COP28 (IEA)
WTO workshop takes stock of incentives for technology transfer under TRIPS Agreement (WTO)
Members review anti-dumping actions and regulations at first biannual meeting of 2024 (WTO)
